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How is Order Fulfillment Defined?

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Order fulfillment is the process of receiving an order, no matter if it is received from the Internet, the telephone, fax, mail, or any other means. Once the order is received, the order is entered into a database where it can be handled and processed. Once all financial aspects of the order is completed, the order request is transferred to the shipping department where the product will be pulled from the shelf, scanned into a computer so inventory can be updated, packaged, and shipped to the customer.

Most calls are taken over the phone, unless the business has a website. If this is the case, 50% of the orders will be by phone while 40% will be by means of a form included on a web page. The only problem with order fulfillment is it has extended needs and requirements that not all businesses can handle, unless of course the business is a multi-billion dollar corporation. Otherwise, most businesses will outsource order fulfillment so they can focus on other necessary parts of the business.

If the company does outsource their order fulfillment, they usually have a contract with a fulfillment company that will have a call center to take all orders and process these orders. The call center will even have a department that will take orders online. They will forward the payments to the company under contract with them, by means of electronic transfer or by releasing a check to them on a weekly or monthly basis. If the fulfillment center is large enough, they may even provide space to house the goods so they can ship the goods from their own warehouse.

Next Page: What's involved in order Fulfillment and is it Cost Effective?

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