order processing

business

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The Information Architects of Encyclopaedia Britannica

Last updated

July 1, 2026

Quick Summary

Order processing is a crucial part of business logistics that begins when a customer places an order. This can happen through a salesperson, phone call, mail, or increasingly, electronically between businesses. The initial steps involve verifying the order's accuracy and the customer's creditworthiness. Once confirmed, instructions are sent to a warehouse to pick, pack, and label the items for shipment. Transportation documents are prepared, and a carrier is notified. Finally, an invoice is sent to the buyer, and inventory and financial records are updated. The entire process, from receiving to shipping an order, is known as the "order cycle".1

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logistics
Order processing
Order processing starts with the receipt of an order from a customer. It may be obtained by a salesperson, be telephoned in, or arrive by mail. Regular buyers and sellers are often linked electronically. As the buyer’s inventories become low, an electronic purchase…
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Order processing starts with the receipt of an order from a customer. It may be obtained by a salesperson, be telephoned in, or arrive by mail. Regular buyers and sellers are often linked electronically. As the buyer’s inventories become low, an electronic purchase…
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marketing
Channel functions and flows
…(negotiation), intentions to buy (ordering), acquisition and allocation of funds (financing), assumption of risks (risk taking), storage and movement of product (physical possession), buyers paying sellers (payment), and transfer of ownership (title).
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…(negotiation), intentions to buy (ordering), acquisition and allocation of funds (financing), assumption of risks (risk taking), storage and movement of product (physical possession), buyers paying sellers (payment), and transfer of ownership (title).
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