About the Order Fulfillment Process Template
What is an Order Fulfillment Process?
The order fulfillment process is a crucial cycle for many businesses. This cycle involves different steps from receiving the order to assembling it and finally shipping it to the customer.
8 Steps of an Order Fulfillment Process
Generally, the order fulfillment process involves the following 8 steps:
- Receiving the Inventory
The required product may arrive from a different department of the company or an entirely different company. On receiving the inventory, it is inspected to ensure that the right product has been received in the right amount.
- Storing the Inventory
The products, goods, or articles are either immediately disbursed to the customer on receiving in inventory or they are stored for a short to medium term. The storage is meant to help organize the order in a better way.
- Processing the Order
Order processing involves picking and packing the item. This process dictates how an article will be picked up from the inventory and packed properly.
Picking is either done manually with the help of a picking team or automated robots. It involves selecting the product according to the instruction slip from the specified location in the distribution center.
It is a highly calculated step as it involves packing the order into practically the lightest and most durable packaging to ensure low shipment costs.
The order is shipped to the customer through a credible transportation channel, takes less time to deliver the order, and is cost-effective as well.
Delivery of the orders runs efficiently if the transport channels can reach the remote areas, even if it involves changing more than one carrier on the route.
- Return Processing
If an order is returned, it is either restocked or sent to the primary manufacturer to get a distributor refund. However, if it is defective, it cannot be restocked.
4 Models of Order Fulfillment
Following are the four models of order fulfillment:
- In-house Model
In this model, all the steps involved in the process of order fulfillment are internally executed.
- Drop-Shipping Model
In this model, the manufacturer produces and ships the order.
- Third-party Model
It entails outsourcing the order fulfillment process to a third party.
- Hybrid Model
A combination of two or more of the above-mentioned models constitutes a hybrid model.