Definition of order processing in intralogistics
Order processing includes all formal processes such as order transmission, data processing and order control; measured from the time the order is placed (order) to receipt of the so-called shipment documents (invoice). The physical receipt of the goods is not necessarily part of this order processing.
In principle, order processing begins with the transmission of the order. This can be done by letter, fax, telephone, via the Internet or by personal contact (sales representative). This is followed by order processing, order compilation, production if necessary, dispatch and invoicing (billing) including the payment transaction. Each process that takes place in the warehouse has a formal section; a sub-function:
Example:
- Order transmission – order form
- Order processing – order and customer information are linked, followed by the order confirmation
- Order fulfillment – production, stock, external order placement
- Packing and shipping – creating shipping documents
- Transport logistics – acknowledgement and transportation of the goods to be shipped
- Order processing – invoicing, transaction
Order processing in practice
In practice, several work steps are necessary, especially at the beginning, in order to complete the correspondence and to resolve any obstacles for the subsequent processes. For example, each order must be supplemented with previously missing information. This can include queries about delivery modalities, the customer’s creditworthiness, but also details about the stock and customer file (customer information). If, for example, items are not available, the delivery service can be used to initiate production or commission a partner to deliver – in rare cases, the order is canceled.
Inventory planning is therefore an important key point in order processing: it ensures the required delivery capability through optimal inventory management, thus guaranteeing the fulfillment of the customer order in the end.
You can find more information on this topic under Order lead time.
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