In this blog post we shall discuss about workflow of a typical ecommerce company. The company may sell on individual store or on other platforms like eBay, Amazon, bestbuy, etc.
Step1 -Order Download in OMS: Order is placed by the customer from the front-end (web store) which is then downloaded into an order management system (OMS). This OMS can be a part of your web-store or it can be a back-end Enterprise system where the customer order gets downloaded. Cloud ERP works seamlessly with Magneto, Drupal, eBay and Amazon to manage all you back end needs.
Step2 -Inventory Allocation: As soon as the order flows into an OMS, the inventory from the Warehouse gets allocated to the order quantity. Thus the free quantity of that particular SKU (product) is decreased by the order quantity. Cloud ERP has a robust inventory management module which connects with online store, warehouse, accounts and sales modules to reflect the effect on all.
Step3 -Order Picking: The operations/fulfillment team then starts processing the order in the warehouse. First a pick list is generated against that order (usually it’s for multiple orders at one go and using wave management) and is handed over to a picker in the warehouse to pick that SKU from the bin/rack (in a zone). The picker picks that SKU from the location mentioned in the pick list and bring it back to the picking station (a stage location). Our cloud offering has integrated with major logistic players like FedEx, UPS and USPS to facilitate drop ship for sellers.
Step4 -Order packing and generation of labels: After the picking is done, the next stage is packing. At the time of packing required documents are printed that needs to be send along with the shipment package to the customer. The order is then packed in a packing box and reports like Invoice, Shipping label are printed and kept along with the shipment. Cloud ERP has the feature to create labels required during shipping. It also has the functionality of bar code scanning to manage bulk products.
Step5 -Order shipment: After the order is packed, it needs to be shipped out to the customer. The order gets assigned with the courier as per the shipping location (usually either at the time of order placement or at the time of packing) and a manifest is generated. Then the shipment is handed over to the courier guy who comes to the warehouse to pick up the shipment. Once the shipment is out of the warehouse the inventory gets reduced in the system. As soon as the inventory is reduced it shows in the system its immediate effect in warehouse, accounting and sales.
Step6-Shipment Delivered: The shipment then gets delivered to the respected customer and the courier company updates the delivery details back to the company whose consignment it was shipping. There can also be the case of customer return or return to origin due to customer unavailability which I am not discussing here.
The below flowchart gives the above ecommerce workflow in Cloud ERP in brief:
The scenario discussed above is an ideal scenario where the inventory is stocked in the Warehouse. There can be other 2-3 possibilities where the inventory is not stocked in the warehouse, such as:
1. Back to back order fulfillment: In this case the operations download the orders and ask its runner to go to the vendor immediately and pick up the required SKUs from the vendor and bring it back to the fulfillment center to fulfill the order.
2. Drop shipment: In this case the orders are downloaded and handed over to the vendor directly to fulfill the orders and ship it to the customers. The warehouse doesn’t have any control over this fulfillment.
3. Made to order: In this case, the orders are first taken from the customer and then the purchase order is raised to procure the SKUs of that order from the vendor. Once the SKUs are in the warehouse, the normal fulfillment cycle (as described above in detail) is followed to process the order.
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