Order entry definition

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What is Order Entry?

Order entry is the actions needed to record a customer's order into a company's order handling system. Once this information has been entered, it is typically reclassified internally as a sales order. The information in the sales order is then used to schedule all of the activities needed to fulfill the customer's order, which may include materials procurement, production, warehousing, picking, shipment, and invoicing.

Who is Responsible for Order Entry?

The order entry function is usually the responsibility of the sales and marketing function, because this function can be used to upsell customers to more expensive goods and services. It may also be used to convince them to purchase add-on products. The end result of this focus should be more sales and profits.

The Order Entry Process

The order entry process typically involves capturing, verifying, and processing customer orders in a systematic way. Here’s a detailed step-by-step example of how this process might work in a business setting:

  • Step 1: Order initiation. The customer places an order through a channel (e.g., website, phone, email, in-store, or mobile app). A standard order form or system interface is used to capture the customer's request.

  • Step 2: Order verification. Ensure that the customer’s contact details are accurate, and verify the customer's account (e.g., membership or credit standing), if applicable. Also check the product availability, and confirm pricing.

  • Step 3: Order entry. Input the order data into the company’s Order Management System (OMS). Then create an order confirmation receipt for the customer.

  • Step 4: Fulfillment. Generate a picking list for the warehouse or inventory team, pick the items from stock, pack them for shipping, prepare shipping documentation, and ship the order.

  • Step 5: Order tracking. Provide the customer with tracking details for shipped items, and send notifications about shipment status. Handle any inquiries about delays or changes to the order.

  • Step 6: Post-delivery activities. Check that the customer has received their order as scheduled, resolve any issues such as damaged items or incorrect shipments, and ask the customer for a review or feedback on their purchase experience.

  • Step 7: Reporting and analysis. Generate reports on order trends, fulfillment rates, and customer satisfaction. In addition, analyze the data to identify bottlenecks or areas for improving the order entry process.

This structured process ensures accuracy, efficiency, and customer satisfaction throughout the order lifecycle.