Order Cycle Stages

The order cycle consists of four components or stages:

1. Order transmittal. Refers to the time from when a customer places an order

until the seller receives the order in general (in person, by mail, by telephone,

by fax machine...).

- The time interval between the customers placing an order to the seller

receiving the order. It does not matter the type of method used for

sending the item, what really matters is reliability and accuracy of the

request data that is being sent.

2. Order processing. Refers to the time when the seller receives the order until an

appropriate location is authorized to fill the order.

- The accuracy of the information transmitted from one stage to another

in the flow is crucial because there is a need to ensure that everything

is going as expected.

3. Order picking and assembly. Includes all the activities from when an

appropriate location is authorized to fill the order until goods are loaded

aboard on an outbound carrier.

- Activities of which several goods are extracted from a warehousing

system. The main purpose of this stage is to satisfy customer orders.

4. Order delivery. The final phase of the order cycle is order delivery, which

refers to the time from when a transportation carrier picks up the shipment

until it is received by the customer.

- It is a document giving several instructions from a person selling goods

that they should be given or taken to the buyer. In this stage, the lead

time is critical to the client as it impacts on customer satisfaction.