DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENTVNSGU, Surat

SUBJECT:

SSCM

Topic:

Order Processing Class:MBA (Sem- 4, Div. - B)

Submitted By:Patel Parth

SUBMITED TO:Dr. V.B. Patel

Order processing

Order processing is the process or work-flow associated with the picking, packing and delivery of the packed items to a shipping carrier. Order processing is a key element of order fulfillment. Order processing operations or facilities are commonly called "distribution centers".

Order processing is a key element of Order fulfilment. Order processing operations or facilities are commonly called "distribution centers". "Order processing" is the term generally used to describe the process or the work flow associated with the packing and delivery of the packed item(s) to a shipping carrier. The specific "order fulfilment process" or the operational procedures of distribution centers are determined by many factors. Each distribution center has its own unique requirements or priorities. Order Processing involves various procedures like pick up, packaging, and delivery of packed items to the shipping carrier. Order Processing software, which help you to take your business orders effectively and encourages interest from your customers towards repeating their business. Sales orderThe Sales order, sometimes abbreviated as SO, is an order issued by a business to a customer. A sales order may be for products and/or services. Given the wide variety of businesses, this means that the orders can be fulfilled in several ways. Broadly, the fulfillment modes, based on the relationship between the order receipt and production, are as follows: Digital copy - Where prices are digital and inventory is maintained with a single digital master. Copies are made on demand in real time and instantly delivered to customers. Build to stock - Where products are built and stocked in anticipation of demand. Most products for the consumer would fall into this category Build to order - Where products are built based on orders received. This is most prevalent for custom parts where the designs are known beforehand. Configure-to-order - Where products are configured or assembled to meet unique customer requirements e.g. Computers Engineer to order - Where some amount of product design work is done after receiving the orderProcess of order processing

Process:Order processing is a sequential process involving; Picking: consists in taking and collecting articles in a specified quantity before shipment to satisfy customers' orders. Sorting: process that separates items according to destination. Pre-consolidation or package formation: includes weighting, labeling and packing. Consolidation: gathering packages into loading units for transportation, control and bill of lading.

Customer Order Cycle

Factors affecting order processing:The specific "order fulfillment process" or the operational procedures of distribution centers are determined by many factors. Each distribution center has its own unique requirements or priorities. There is no "one size fits all" process that universally provides the most efficient operation. Some of the factors that determine the specific process flow of a distribution center are: The nature of the shipped product - shipping eggs and shipping shirts can require differing fulfillment processes The nature of the orders - the number of differing items and quantities of each item in orders The nature of the shipping packaging - cases, totes, envelopes, pallets can create process variations Shipping costs - consolidation of orders, shipping pre-sort can change processing operations Availability and cost and productivity of workforce - can create trade-off decisions in automation and manual processing operations Timeliness of shipment windows - when shipments need to be completed based on carriers can create processing variations Availability of capital expenditure dollars - influence on manual verses automated process decisions and longer term benefits Value of product shipped - the ratio of the value of the shipped product and the order fulfillment cost Seasonality variations in outbound volume - amount and duration of seasonal peaks and valleys of outbound volume Predictability of future volume, product and order profiles Predictability of distribution network - whether or not the network itself is going to change Presence of small volume distribution Minimization of shipping costs