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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 and is a key element of order fulfillment. Order processing operations or facilities are commonly called “distribution centers” or “DC 's”. There are wide variances in the level of automation associating to the “pick-pack-and-ship” process, ranging from completely manual and paper-driven to highly automated and completely mechanized; computer systems overseeing this process are generally referred to as Warehouse Management Systems or “WMS”. 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. Order picking or order preparation is one of a logistic warehouse's processes. It consists in taking and collecting articles in a specified quantity before shipment to fulfil customer orders. It is a basic warehousing process and has an important influence on logistic processes. It is one of the warehouse management system functions. There are several strategies for order picking, including: Piece picking or picker to part method: the order picker(s) move(s) to collect the products necessary for one order. This is commonly seen in distribution centers for retail chains, whereby a shop will require a great many replenishment goods. A picker may pick all or part of the replenishment for one shop. Zone picking method: each order picker is assigned to one specific zone and will only realize order picking within this zone. For instance, in an electrical retail environment, both small and large items may be required and a picker on an electric vehicle such as a powered pallet truck (PPT) or an order picker vehicle may pick large and heavy items whereas a foot picker may pick small and light ones from another part of the warehouse.

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Related concepts (5)
Distribution center
A distribution center for a set of products is a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products (goods) to be redistributed to retailers, to wholesalers, or directly to consumers. A distribution center is a principal part, the order processing element, of the entire order fulfillment process. Distribution centers are usually thought of as being demand driven. A distribution center can also be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a bulk break center, and a package handling center.
Warehouse management system
A warehouse management system (WMS) is a set of policies and processes intended to organise the work of a warehouse or distribution centre, and ensure that such a facility can operate efficiently and meet its objectives. In the 20th century the term 'warehouse management information system' was often used to distinguish software that fulfils this function from theoretical systems. Some smaller facilities may use spreadsheets or physical media like pen and paper to document their processes and activities, and this too can be considered a WMS.
Document automation
Document automation (also known as document assembly or document management) is the design of systems and workflows that assist in the creation of electronic documents. These include logic-based systems that use segments of pre-existing text and/or data to assemble a new document. This process is increasingly used within certain industries to assemble legal documents, contracts and letters. Document automation systems can also be used to automate all conditional text, variable text, and data contained within a set of documents.
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