Order Management Flashcards

What is a 'backorder' and how should it be communicated to the customer?

Answer: An order for an out-of-stock item that will be fulfilled when stock is replenished, with estimated availability communicated upfront

Backorders accept the customer's commitment to purchase while being transparent about delayed fulfillment.

What is the 'perfect order rate' metric and what does it measure?

Answer: The percentage of orders with no errors from placement through delivery

Perfect order rate measures the percentage of orders delivered complete, on time, undamaged, and with accurate documentation.

A customer calls to report they received the wrong item in their order. What is the standard resolution process?

Answer: Apologize, ship the correct item immediately, and provide a return label for the wrong item or let the customer keep it depending on value

Sending the correct item immediately prioritizes customer satisfaction, while handling the wrong item based on practical return economics.

What is 'wave planning' in warehouse order management?

Answer: Grouping orders into batches released at intervals to optimize picking efficiency and labor utilization

Wave planning batches orders to optimize picker routes, reduce travel time, and balance workload across the fulfillment center.

A large order requires items from both the store floor and the backroom. How should the picking process be organized?

Answer: Pick floor items first, then backroom, and combine at staging

Separating picking by location and combining at staging is the most efficient approach for split-location orders.

What is 'last mile delivery' and why is it the most expensive part of order fulfillment?

Answer: The final leg of delivery from the local fulfillment point to the customer's door, expensive due to individual stops and low density

Last mile delivery involves individual deliveries to dispersed addresses, making it the most labor-intensive and costly segment.