Order Fulfilment Process

Posted in Operations and Supply Chain Terms, Total Reads: 249
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Definition: Order Fulfilment Process

Order fulfilment process is one the most vital processes in the management of supply chain. It essentially involves efficient and effective fulfilment of customer orders to provide a superior customer experience. Attaining this involves designing network and processes which are capable of satisfying customers’ needs along with maximising the profitability.


In most general sense, it is the process starting from the sales inquiry to the delivery of product to the customer.


The order fulfilment process is defined by P: D ratio, where

P: Production Lead time

D: Demand Lead time


D time may be viewed as:

• Lead time quoted to the customer by the firm

• Expected lead time by the customer

• Competitive lead time

 

Based on this P: D value, a firm may have several basic order fulfilment options:

 

• Engineer-to-Order (ETO)

• Build-to-Order (BTO)

• Assemble-to-Order (ATO)

• Make-to-Stock (MTS)

• Digital Copy


The processes involved in this order fulfilment process are:

• Product Inquiry

• Sales Quote

• Order Configuration

• Order Booking

• Order Acknowledgment / Confirmation

• Invoicing / Billing

• Order Sourcing / Planning

• Order Changes

• Order Processing

• Shipment

• Delivery

• Settlement

• Returns

 

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