Order Processing - Examples

Order Processing is one of the most powerful features of the Mail Order Manager software. It is powerful because it completely manages and tracks every order in your system from order entry until it "goes out the door" on the truck of your shipper. The way that each company does order processing varies greatly.

Order Processing Design

M.O.M. accommodates every variation and provides the options to do so in two important system functions.

1. Maintain Global Parameters - Order Processing Design: This function lets you select where you want to run the various stages of order processing. There are two choices - the Batch Order Processing function or the Packer's Workstation.

2. Maintain Global Parameters - Forms: This function lets you select what forms you want to print for each order as it passes through the stages of order processing.

You should be familiar with these two functions before continuing with the examples because settings from these screens are referenced as suggestions.

Order Processing Tools

You should also be familiar with the following system functions as they are used to process orders.

1. Order Status Report

2. Batch Credit Card Processing

3. Batch Order Processing

4. Packer's Workstation

5. Warehouse Manager's Station

Examples:

Use the following four examples as starting points for your own order processing design.

Example 1 - B-to-C Company Processing Orders in a Single Batch

Conditions:

• Payment - most orders are prepaid either by credit card or check. Credit cards are processed in batch.

• Order Contents - small number of items, no scan and pack required.

• Packing Slips and Invoices - all orders are prepaid and the packing slips are combined with invoices and packed in the boxes except for those orders with a third party shipping address.

• Fulfillment - orders are picked from the shelves using the packing slip/invoices.

• Shipping Charges - are not based on actual shipping charges.

• Boxing - most orders ship in a single box.

• Shipping - done in batches based on the order processing batches, no shipment confirmation required.

This is the simplest scenario. After orders are entered in Order Entry, any credit card orders requiring approval would first be approved/transacted through Credit Card Processing. After approval, the Batch Order Processing function would be run including all stages.

With few exceptions or discrepancies anticipated between invoicing, and shipping, order processing can be run in one complete cycle using the Batch Order Processing function. The orders are picked using the packing slips (which are also the invoices). The shipping labels are also printed using the Batch Order Processing function. And the orders are also shipped at the same time in the same complete run .

In this case, only one step is required - the complete run of the Batch Order Processing function produces all paperwork and ships the orders too.

Suggested Settings:

Maintain Global Parameters - Order Processing Design

1. All stages are set to Batch Order Processing function processes this stage.

2. No Processing Checkpoints are established.

Maintain Global Parameters - Forms

1. Pick List/Tickets are "turned off."

2. All other forms are "turned on."

3. In the Invoices section of the screen, "Combine Invoices with Packing Slips in Stage 2" is set to: Simple Orders, so that the packing slips serve as the invoices to be packed in the box except for those orders that are shipped to a third party or drop shipped.

Order Processing Functions Used:

1. Order Status Report - to check on orders pending processing.

2. Batch Credit Card Processing - to process cards prior to processing.

3. Batch Order Processing - to print all paperwork and ship orders.

Example 2 - A B-to-C Company Processing Orders in Multiple Batches

Conditions:

• Payment - most orders are prepaid either by credit card or check. Credit cards are processed in batch after orders are picked.

• Order Contents - 10-20 items per order, scan and pack required.

• Packing Slips and Invoices - all orders are prepaid and the packing slips are combined with invoices and are packed in the boxes except for those for orders with a third party shipping address.

• Fulfillment - orders are picked from the shelves using a pick ticket to pre-assemble the order for the packer. Some orders are drop-shipped directly to customers by suppliers.

• Shipping Charges - are not based on actual shipping cost.

• Boxing - orders ship in 1-3 boxes based on packaging.

• Shipping - done at the end of the day based on whatever packages are ready on the loading dock.

This company is a little more complicated. Orders are picked by one person, packed by another, and shipped by a third. Throughout the day, pick tickets are processed using the Batch Order Processing function. As each order is assembled, it is passed to the packer. He uses the bar code printed on the pick ticket to quickly access each order at the Packer's Workstation. The packer uses the Packer's Workstation to "scan and pack" the contents of each order reading the barcode label on items when available. After scanning and packing, the packer prints the invoice for the order and packs it in any one of the boxes. As required, he creates additional boxes and shipping labels using the Packer's Workstation, and weighs each one to get the correct shipping weight for the carrier. Shipping charges are pre-calculated for the customer however, so no change in shipping cost occurs regardless of how many boxes an order requires.

At the end of the day, the shipper uses the Batch Order Processing function to run the Shipping Stage. The Shipping Confirmation screen enables him to quickly barcode scan each package as "Ready for Shipment." As each package is scanned, it is automatically entered in the UPS OnLine system. When the UPS driver arrives, he already has all packages entered and confirmed for shipment.

Suggested Settings:

Maintain Global Parameters - Order Processing Design

1. Only Pick Lists/Tickets is set to "Batch Order Processing function processes this stage." All other stages are set to "Packer's Workstation manually processes this stage."

2. "An order must be picked before the credit card can process" is selected as a Processing Checkpoint.

3. "An order must have its contents bar-code scanned as it is packed" is selected as a Processing Checkpoint.

4. "A box must be confirmed for shipment" is selected as a Processing Checkpoint.

Maintain Global Parameters - Forms

1. All forms are "turned on."

2. In the Invoices section of the screen, "Combine Invoices with Packing Slips in Stage 2" is set to: Simple Orders, so that the packing slips serve as the invoices to be packed in the box except for those orders that are shipped to a third party or are drop shipped.

Order Processing Functions Used:

1. Order Status Report - to check on orders pending processing.

2. Batch Credit Card Processing - to process cards prior to processing.

3. Batch Order Processing - to print pick tickets.

4. Packer's Workstation - to scan and pack and print packing slip/invoices.

5. Batch Order Processing - to ship boxes and print any third-party shipping address invoices.

Example #3 - A B-to-B Company Processing Orders in Multiple Batches and Charging Customers Actual Shipping Cost

Conditions:

• Payment - most orders are invoiced to the customer, although some are prepaid by credit card. Credit cards are processed when the order is packed to assure that final shipping charges are passed to the customer based on packaging.

• Order Contents - lots of small "part" items, scan and pack required, as is weighing of boxes for final weights and shipping costs.

• Packing Slips and Invoices - a packing slip is enclosed in the box and an invoice is mailed to the customer for every order.

• Fulfillment - orders are picked from the shelves using pick tickets.

• Shipping Charges - are based on actual shipping charges.

• Boxing - most orders ship in a single box.

• Shipping - done in batches throughout the day and shipment confirmation is required.

This situation is typical for business-to-business companies. Orders are taken throughout the day. In this case, the pick tickets are continually printing automatically at the Packer's Workstation. The packer takes the pick tickets, picks the orders, and comes back to the Packer's Workstation to scan & pack and box the order. After boxing is complete, the packer weighs the box(es) and approves the credit card (when required) at the Packer's Workstation. Using the Packer's Workstation, he then prints the packing slip and box labels for the order. Periodically, batches of orders are "shipped" using the Batch Order Processing function to access the Shipment Confirmation screen to scan each box for shipment. As boxes are "shipped," they are moved to the loading dock for pickup by UPS and FedEx.

Suggested Settings:

Maintain Global Parameters - Order Processing Design

1. Pick Lists/Tickets is set to "Packer's Workstation automatically processes this stage." All other stages are set to "Packer's Workstation manually processes this stage."

2. "An order must be picked before the credit card can process" is selected as a Processing Checkpoint.

3. "An order must have its contents bar-code scanned as it is packed" is also selected as a Processing Checkpoint.

4. "A box must be weighed as it is packed" is selected as a Processing Checkpoint.

5. "A box must be confirmed for shipment" is selected as a Processing Checkpoint.

Maintain Global Parameters - Forms

1. All forms are "turned on."

2. In the Invoices section of the screen, "Combine Invoices with Packing Slips in Stage 2" is set to: No Orders, so that separate packing slips and separate invoices are printed for each and every order.

Order Processing Functions Used:

1. Order Status Report - to check on orders pending processing.

2. Packer's Workstation - to run pick tickets (automatically), to scan and pack, weigh boxes, charge credit cards and print packing slips and box labels.

3. Batch Order Processing - to ship boxes and print all invoices for mailing to the customers.

Example #4 - A B-to-B or B-to-C Company Processing Orders at Multiple Workstations Simultaneously

For this example the Advanced Warehouse Module must be installed.

Conditions:

• Payment - for the B-to-B, most orders are invoiced to the customer, For the B-to-C, most are prepaid by credit card. For the B-to-C, credit cards are processed at order entry by the order entry operators.

• Order Contents - both companies have lots of small "part" items, scan and pack required, as is weighing of boxes for final weights and shipping costs.

• Packing Slips and Invoices - for the B-to-B, a packing slip is enclosed in the box and an invoice is mailed to the customer for every order. For the B-to-C, a packing slip/invoice combination is packed in the box.

• Fulfillment - both pick orders from the shelves using pick tickets.

• Shipping Charges - for the B-to-B, actual shipping charges are charged to the customer. For the B-to-C, a shipping cost table based on order total is used.

• Boxing - most orders ship in a single box.

• Shipping - done in batches throughout the day for all warehouses by the order processing manager.

In both companies, orders are taken throughout the day. In this case, the order processing manager uses the Warehouse Manager's Station to create batches of orders and assigns those batches to any one of 20 different packers, each of whom is using the Packer's Workstation.

As batches are assigned, the pick tickets are continually printing automatically at one of the 20 different Packer's Workstations. The packers take the pick tickets, picks the orders, and comes back to the Packer's Workstation to scan & pack and box the order. After boxing is complete, the packer weighs the box(es) using the Packer's Workstation. Using the Packer's Workstation, he then prints the packing slip (B-to-B) or packing slip/invoice (B-to-C) and box labels for the order.

As the order processing manager watches the progress of each packer using the Warehouse Manager's Station, he periodically takes completed batches of orders and ships them using the Warehouse Manager's Station to access the Shipment Confirmation screen to ship entire batches at each warehouse location. As boxes are "shipped," they are moved to the loading docks in each warehouse for pickup by UPS.

Suggested Settings:

Maintain Global Parameters - Order Processing Design

1. Pick Lists/Tickets is set to "Packer's Workstation automatically processes this stage." All other stages are set to "Packer's Workstation manually processes this stage."

2. Shipping is set to "Warehouse Manager's Station processes this stage."

3. "An order must have its contents bar-code scanned as it is packed" is also selected as a Processing Checkpoint.

4. "An box must be weighed as it is packed" is selected as a Processing Checkpoint.

5. "A box must be confirmed for shipment" is selected as a Processing Checkpoint.

Maintain Global Parameters - Forms

1. All forms are "turned on."

2. For the B-to-B, in the Invoices section of the screen, "Combine Invoices with Packing Slips in Stage 2" is set to: No Orders, so that separate packing slips are separate invoices are printed for each and every order. For the B-to-C, this setting is Simple Orders, so that packing slips and invoices are combined for all orders that do not have a separate shipping address, are not drop shipped, etc. The combined packing slip/invoice is packed in the box. For the other orders (not simple), a separate invoice is printed for mailing and a separate packing slip is printed for packing.

Order Processing Functions Used:

1. Order Status Report - to check on orders pending processing.

2. Warehouse Manager's Station - to create and assign batches to packers.

3. Packer's Workstation - to run pick tickets (automatically), to scan and pack, weigh boxes, and print packing slips and box labels.

4. Warehouse Manager's Station - to ship completed batches.