Order-processing system

An overview of the order procedures

As soon as a customer places an order with a company, numerous processes are set in motion to fill it. For example, the completeness of the order must be checked, and the creditworthiness of the customer must be examined. It must also be determined whether the ordered product is in stock or must be produced. The following graphic shows the paperwork and transmission processes associated with order processing at a company.

Paperwork and transmission processes in order processing

Key indicators of efficient order processing

The duration of order processing is included in the delivery time for a good. Quick, accurate processing has a favorable effect on the entire flow of goods. As a result, a company should always pay special attention to efficient processing. The capability and efficiency of order processing must be evaluated regularly using indicators that track the reliability and flexibility of order handling.

The crucial factors of efficient order processing

Key indicators in order processing

The efficiency of the order-processing subsystem is shown through a comparison of performance and cost contained in a system of key indicators. Efficiency is considered to be the number of orders processed in a handling period, a cycle that can vary by company. The connection to the order-processing costs is made with the productivity indicator called “average processing cost per order”.

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