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. Order processing is a key element of order fulfillment. Order processing operations or facilities are commonly called "distribution centers".

Order processing is a sequential process involving:

Piece picking, also known as broken case picking or pick/pack operations, describes systems where individual items are picked. Operations using piece picking typically have a large , or SKU, base in the thousands or tens of thousands of items, small quantities per pick, and short cycle times. Examples of piece pick operations include mail order catalog companies and repair parts distributors.

Operations that use case picking tend to have less diversity in product characteristics than operations that use piece picking. There are typically fewer SKUs and higher picks per SKU.

Full-pallet picking, or unit-load picking, uses much simpler systematic methods than piece picking or case picking. However, there are many choices in storage equipment, storage configurations and types of lift trucks.

Sorting machines in distribution

The specific "order fulfillment process" or the operational procedures of distribution centers are determined by many factors. Each distribution center has its own unique requirements or priorities. There is no "one size fits all" process that universally provides the most efficient operation. Some of the factors that determine the specific process flow of a distribution center are:

This list is only a small sample of factors that can influence the choice of a distribution centers operational procedures. Because each factor has varying importance in each organization the net effect is that each organization has unique processing requirements.

The effect of Globalization has immense impacts on much of the order fulfillment but its impact is felt mostly in transportation and distribution.

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