Is Order Processing Part of Logistics: Exploring the Logistics Workflow

04 December 2023 - E-Commerce

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Is Order Processing Part of Logistics: Exploring the Logistics Workflow

Order processing is indeed a part of logistics. It is the first step in logistics operations as it manages the entire workflow that determines the orders are prepared and delivered to the customers¹ ² ³. It is a vital part of fulfilling customer requirements, so it consists of major activities such as picking, packaging, and delivering the goods¹ ² ³.

Order Processing in Logistics

Order processing in logistics refers to the series of actions that occur once a customer places an order online¹ ². It begins with the receipt of the order and includes steps such as verifying the order details, checking the availability of the ordered items, and preparing the items for shipment¹ ².

Order Fulfillment in Logistics

Order fulfillment, on the other hand, is the process that takes place from when a customer places an order until it arrives at their doorstep¹. This includes pulling and packing orders, then shipping them out for delivery¹. While many companies handle this process on their own, fulfillment services can do all the legwork, allowing businesses to focus on growing¹.

SaaS Products for Logistics Operations

Several SaaS products can help businesses streamline their logistics operations. Here are a few examples:

NetSuite: Offers a comprehensive suite of order management solutions, including order entry automation, inventory management, order fulfillment, and customer communication⁴.
Zoho Inventory: Provides powerful inventory management features, including real-time inventory tracking, automated reordering, and multi-channel selling⁵.
ShipStation: Offers robust shipping and order fulfillment features, including automated shipping label generation, rate comparison, and order tracking⁶.
QuickBooks Commerce: Provides a range of order management features, including automated order entry, real-time inventory management, and multi-channel order fulfillment².
TradeGecko: Offers a powerful order management platform, including automated order entry, inventory management, order fulfillment, and customer communication⁷.

Conclusion

Understanding the role of order processing in logistics is crucial for the operational significance of any business. By leveraging technology and the right SaaS products, businesses can automate various steps involved in order processing, thereby reducing processing time, enhancing customer satisfaction, and ultimately improving their logistics management.