How To Streamline Order Fulfillment?

The term order fulfilment refers to the entire process from sales inquiry to product delivery to the customer

. In other words, it is the way in which suppliers react to customer orders. A number of strategies are available for businesses to streamline order fulfilment, the first of which is the Engineer-to-Order strategy. In this strategy, the time duration for which a customer can wait for the completion of an order is much longer than the time required for manufacturing a product. In this strategy, the product is designed and built according to customer specifications.

Another order fulfilment strategy is that of Built-to-Order. Here the time duration for which a customer can wait for the completion of an order is slightly longer than the time needed for manufacturing a product. In this strategy, the product follows a standard design but the final product is built according to customer specifications.

Another strategy for streamlining order fulfilment is Assemble-to-Order strategy. Here the customer needs a product in less time than is required for manufacturing a product. In this strategy, existing components are used by the Suppliers to build the product, according to customer specifications.

Yet another strategy for streamlining order fulfilment is Make-to-Stock strategy. Here the customer needs the product as soon as the order is placed. In this strategy, the customer is provided by the supplier with a product from the stock of finished goods, as happens in the wholesale, distribution and retail sectors.

A number of steps are involved in the process of order fulfilment, the knowledge of which is essential for order fulfilment. The first step is that of product inquiry whereby the customer makes initial inquiry about the product or visits the website or requests a catalogue. This is followed by sales quote and order configuration, which is further followed by order booking. Next follows the step of order acknowledgement. In this step, it is confirmed that the order is received.

Order acknowledgement is followed by the step of invoicing in which the commercial bill is presented to the customer. In the next step called order sourcing, the source of items to be shipped is determined. Next step is that of order processing in which the distribution-centre is going to fill the order. Next steps are those of shipment and delivery of products to the customer. In the settlement step, charges are paid by the customer. In the final step of returns, the goods are returned if unacceptable.

by: William

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