#Product Management

Order Fulfillment Process Template

It is quite evident that in the present age of a highly competitive business market, a successful order fulfillment process forms the backbone of any successful business venture.

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More Order Fulfillment Process Templates

Order Fulfillment Timeline Template

Order Fulfillment Flowchart Template

Common Order Fulfillment Process Template

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
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.
Packing
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.
Shipment
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
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.

Order Fulfillment Process Templates

1. Order Fulfillment Timeline Template

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Here is a template created with the help of EdrawMind, which depicts the various steps involved in the process of order fulfillment following their respective timelines. This breakdown of the whole process into several steps corresponding to the time required in the execution and fulfillment of each step enables business owners to make business strategies, find ways to optimize the system and keep track of the process at all steps. For example, if a person, with the help of this template, finds out that the number of days required for the delivery of a product is reduced by using a particular transportation channel, he can utilize the same channel for future deliveries. Using mind mapping and breaking down the process into smaller tasks, business owners can complete the process more efficiently and keep track of the order in small steps. EdrawMind gives you several options, tools, and templates to organize your data, brainstorm your ideas, and impressively present your thoughts.

2. Order Fulfillment Flowchart Template

View, edit, and download this template in EdrawMind >>

Another process template shown below elaborates the order fulfillment process. The process starts with the receiving of the order. In case of confirmation, the order is subjected to further processing which involves picking the desired goods from inventory, packing it, and shipping it to the customer through a suitable transportation channel. However, if the order is not confirmed for some reason, it will be canceled without processing any further. The same steps will be repeated for each order. Creating a step-by-step flowchart like this can bring discipline and better management to your organization. This flowchart is one simple example of endless possibilities that you can create with EdrawMind.

3. Common Order Fulfillment Process Template

View, edit, and download this template in EdrawMind >>

Here is another comprehensive process template made by using EdrawMind that logically and comprehensively describes the various steps of the order fulfillment process. Order fulfillment begins upon receiving a fulfillment request and continues with backorder acknowledgment and order status updates. This process continues until settlement with different steps is involved. Please note that the shapes in this flow chart are different. Two distinct shapes are used: oval and rectangle. These various shapes essentially reflect distinct functions in the flowcharting process; the oval shape denotes the start and completion of a process, while the rectangle shape signifies a process. Another important and most commonly used shape is the "diamond" which represents the decision-making step.

How to Improve the Order Fulfillment Process?

It is important to optimize the order fulfillment process to ensure that the customer gets the right product in the desired time with no damages or malfunction. This process can be improved by working on the following points:

Choose the Right Shipping Company
With the increase in the number of shipping companies and transportation channels, it is essential to find the one best suited to your business needs. However, there are a few benchmarks of a credible and reputable shipping channel: A shipping company should have access to remote areas, and it should be cost-effective, time-saver, and responsible.
Keep Lines of Communication Open with Your customers
You need to keep your customers updated about the status of their order and the timeline of its delivery process. This keeps customers engaged with you and gives them a message that you care for them.
Make Sure Your Internal Order System Works Effectively
The flawless working of your internal order system is integral to the receiving of orders, processing, and disbursing them in time. If you observe an unusual lag in the time of placement of an order and the time you receive it in your system, it means that there is something wrong with the system which needs to be rectified immediately.
Make Finding Inventory Simple for your Warehouse Employees
To keep the order fulfillment process simple and save time in picking the desired product from the inventory, you need to have a proper designated place for everything. Otherwise, it will become difficult for your employees to retrieve the required order.
Take Orders in Multiple Ways
These days, more people tend to place orders online. It has become important for businesses to open different ways or channels to communicate with their customers considering their convenience and allow them to reach out to you through different media they are using online.

Conclusion

The order fulfillment process is undoubtedly one of the most important factors determining the success of a business. If all the steps involved in this process are optimized, there is a fair possibility of its booming at a much higher rate. This process not only establishes your trust among the customers but also gives your business a much-desired organizational discipline and professional outlook. It might seem difficult to start working on the order fulfillment process for your business, as it involves extensive mind-map making. However, this process has been made easy by EdrawMind, which enables you to brainstorm your idea by providing you with several tools such as clip art and chart templates. EdrawMind makes your thoughts a reality.

Product Management