fulfillment management process example

However,retailfulfillment starts long before the customer places an order. If you can set up your order system so that it automates as much as possible and eliminates double data entry and any risks for human error, you will be set up for success with shorter delivery times, higher customer satisfaction, higher rate-of-repeat orders, and more frequent orders, says Pave. Connect everyone on one collaborative platform. When you use a 3PL provider, youre handing off a large number of your daily business duties to another company to fulfill for you. Ask the fulfillment company to describe its technology process and capabilities and make sure the companys technology capabilities match up with your own. Use this template to manage, submit, and store documents, both in their physical and digital forms. It provides a real-time network connection to market price streaming on global exchanges. Find answers, learn best practices, or ask a question. Move faster, scale quickly, and improve efficiency. Is the package damaged? 2023. The wholesaler orders the products. Depending on the shipping method chosen, this could take a few days to a few weeks. The fulfillment rate is a metric that indicates how well an organization fulfills orders. Digital, web-enabled commerce, social media advertising, and mobile devices with payment processing applications completely changed the demand for order management software functionality. The steps include order fulfillment, packing, shipping, delivery and customer service related to delivery. If youre not seeing a lot of orders daily, youll likely keep your in-house fulfillment process. In fact, many 3PLs offer data and analytics as a service giving you real-time data that you can use to grow your business. If your customers have a bad shipping experience, you cant point the finger at the fulfillment companies. It's simple to define, but its complexity is easy to underestimate. Configure and manage global controls and settings. Find tutorials, help articles & webinars. What fulfillment fees do you charge? We also offer expert insight on the paradox of achieving successful order management while improving the customer experience. His company SCM Globe provides cloud-based supply chain modeling applications for academic institutions, business services, humanitarian relief, and military logistics. 3. If you have no inventory for a product a customer orders, not only do you miss the sale, you likely ensured that customer will not buy from you in the future too. When you delegate duties to a 3PL provider, you can focus on marketing duties, new product purchases, industry news, and customer service. For in-person customers, this step is simpler. Hugos has advised and mentored development teams for organizations like Microsoft, Starbucks, and the U.S. Navy. Capable of bridging the gap between the supply chain, marketing strategies, and the customer experience in the digital economy, OMS is essential to the future of successful businesses. Order management (OM) sits at the intersection of marketing, information technology, and logistics as a function of coordinated supply chain management. Picking plays an important role in the fulfillment process. It involves proper management of inventory when on shelves, organizing it in the right way to improve item turnover rates, and picking products quickly when orders are received. The products will be within easy reach of the fulfillment center to pull for shipment from the warehouse whenever they need them. As the years in business progress, your product offerings may be more expansive than when you started. You want to have the ability to do both. SCOR is a reference model based on the Porter value chain framework: supply chain, planning, procurement, manufacturing, order management, logistics, returns/retail, product design, research, prototypes, integration, launch, CRM, service support, sales, after-sale service, and contract management. Outbound Logistics Activities. Include the new PO requirements and processes that match your order management process so your customers have a clear understanding of new requirements. Lets have a look. Deliver results faster with Smartsheet Gov. You dont want to rely solely on how much the fulfillment services cost, but you do want to make sure you can afford them. For example, ShipBob is a global fulfillment company with several locations in multiple countries We partnered with ShipBob to scale up operations in the United Your wholesaler ships the order to your customer using a courier service. Sales order management applies to the business processes, tasks, and documentation involved in generating this agreement. Competitive benchmarking requires continuous measurement of the order management process metrics (or key performance indicators) of your leading competitors. Earlier in the article, we discussed the need to be able to forecast demand. WebWhen you set up Salesforce Order Management, you can configure the payment methods, payment providers, and payment processors for your ecommerce site. WebAn example of a service request is when a user wants to upgrade software to a higher version. 7. Material management, product tracking, data sharing and data feeds monitoring, and financial information administration are just a few examples. Reducing errors, eliminating manual customer service steps, and gaining access to specific business intelligence with an integrated system replaces the need for multiple standalone applications. Identify inefficient processes Identifying Known as demand planning, this refers to your ability to know in advance when a product is going to be in demand. Ecommerce 101: How To Sell More Products In 2023. A unified OMS also provides a single source of information to manage and analyze order management-related supply chain data. The more you can cut down on picking errors, the better. Theres a number of different order fulfillment challenges youre going to run into at some point, from supply shortages and inventory management issues to failures in demand and logistics planning to the complexity of your supply chain. Shipping costs is usually one of the biggest expenses companies have. The more efficient your warehouse is, the better. One team might handle customer complaints, account management, warranty issues, and returns, while another siloed team, located in the warehouse or factory, might be responsible for order fulfillment, inventory management, packaging, shipping, and tracking activity. Modern OMS platforms can streamline order entry, processing, and fulfillment of orders, from the point of sale to payment processing and delivery, and enable real-time communication to manage all aspects of a multichannel business. What time frame can I expect for my inbound inventory shipments to be processed in the center in preparation for customer orders to come in? This system might communicate with an inventory management system to retrieve relevant data such as the item number, pricing, availability, and quantity discounts. } WebStep 1: Receiving inventory. 4. If you need a place to simply store your products and plan on handling the shipping aspect yourself, a warehouse setup might be best. Fulfillment is when a third party, or third-party logistics (3PL) provider, fulfills the customer order for an ecommerce retailer. When was the last time you ordered a product online and the experience didnt go well? Of course, the life cycle of an order is a core process in the supply chain operations of many industries, including healthcare, technology, finance, manufacturing, and entertainment. Businesses who buy from manufacturers need to stock and ship the products that they purchase. Relying on paper document management made accessing valuable business intelligence tedious. Fulfillment centers are well-oiled machines. Decide if a Fulfillment Partner is Right for You, Generates pick lists and picks products from inventory storage once orders are received. An example of an order fulfillment process is one such as Fulfillment by Amazon (FBA). The capabilities are more than just something that picks and packs for you. When you buy your products, make sure you aren't buying from another retailer because you would pay a much higher price than if you buy directly from a wholesaler or manufacturer. Lastly, you have delivery and order fulfillment, which is the process of getting purchased items into the hands of your customers. Order volume, sales volume, it matters! When you consider that 84% of consumers state they wont return to a brand if they experience even one bad shipping experience, you can easily see the harm one less than satisfactory shipping experience can cause. Supply chain process example. That is the goal. To compete and evolve with new supply chain complexity and changing markets, Hugos advocates for a new paradigm of order management that relies on faster, more accurate, and more responsive exchanges of digital order data. For example, managers can use What is the size of your fulfillment center network? Work smarter and more efficiently by sharing information across platforms. For example, by providing faster shipping times and decreasing your order fulfillment costs, you may possess a competitive edge through the option of lower prices. Step. Here are examples of responsibilities from real fulfillment manager resumes representing typical tasks they are likely to perform in their roles. This template is customizable to match your order management needs. Buy-side traders receive orders from a portfolio manager. This is done via an app or integration platform, so its completely automated. Once the order is complete, how long will it take to get to your warehouse? Streamline requests, process ticketing, and more. It also involves implementing strategies for when products return. After a business becomes large enough, they can afford to order large quantities of products and have a warehouse to store them in. 1. For example, look at the lawn care industry, this would be a good example. Manufacturers also don't typically ship items to your customers. You placed an order and the product was a week late or perhaps the product was damaged. The fulfillment center has more steps to complete as it processes each order that comes through its facility. window.mc4wp.listeners.push( Learn why customers choose Smartsheet to empower teams to rapidly build no-code solutions, align across the entire enterprise, and move with agility to launch everyones best ideas at scale. WebThe service request fulfillment process, in brief: A customer requests help from your service portal or via email. Heres a look at the five main steps in the supply chain management process. See how you can align global teams, build and scale business-driven solutions, and enable IT to manage risk and maintain compliance on the platform for dynamic work. If youre looking to save money on shipping, thats a great place to start. The fulfillment center will store the inventory in their warehouse and have it ready to package up and ship orders out once processed. Supply chain process example. Order fulfillment involves a lot of working pieces, if youre not communicating properly, its going to be a problem.The same can be said about your customers, you have to keep them in the loop until their shipment arrives. It is touched by workers and equipment when it is going on to shelves, getting picked for orders, during packing, and when leaving the warehouse. OMS vendors advertise a range of product functionality that their software possesses, including the following business capabilities: Companies that automate their order management will see a great impact in terms of customer experience, because everyone wants to know that an order they place is being processed immediately, says Smith. A business can also be more competitive in its industry. The order fulfillment process uses a number of different steps. When businesses have all the software and tools they need, we find companies have difficulty integrating all the pieces to work as one complete system. For order management professionals and other supply chain specialists, benchmarking provides a creative outlet for problem solving supply chain and logistic problem and protects against stagnant best practices. Package your entire business program or project into a WorkApp in minutes. Firms use automation and AI algorithms for tactical asset allocation (TAA) reallocating shares for market exposure and to manage cash flow allocation, correct for market fluctuations, and track market trends. OMS infrastructure must maintain strict cybersecurity protocols to prevent network breaches and resolve service outages promptly. If any part of the process fails or is inefficient, it may create bottlenecks and increased costs. Dropshipping companies are product manufacturers or distributors that send the products right to the customers while the centers are third party companies hired to fulfill the orders. Heres a look at the five main steps in the supply chain management process. Successful order fulfillment strategies dont rely on a single process, every scenario is different and the type of order fulfillment you require may differ from the next. This is where Thill can help. Streamline operations and scale with confidence. } Before modern web-based inventory and order management platforms, organizations relied on telephones and outdated paper document management of purchase orders, work orders, change requests, warehouse pick tickets, shipping manifests, and invoices. The term order management systems (OMS) refers to standalone software applications, or end-to-end software platforms, that merge business practices concerned with three areas of operations: sales, order fulfilment, and accounting. Your supply chain makes up a large part of the fulfillment process for your orders. Purchasing is a core function of effective order management. Shipping overseas is even more complicated. You then need to think about how to integrate payment processing into your automated fulfillment workflow. If you want to hire an ecommerce fulfillment center, check out this article. Your fulfillment strategy should support your order fulfillment and visa versa. They may select one or several types of management systems: Fulfillmentservices ensure that the right system is employed at the right time for specific products. On the other hand, the fulfillment center handles most of the following duties: The fulfillment center will schedule frequent pickups as many orders are placed and fulfilled by the facility. If the shipping carrier provides a shipping number, then you can send it to your customer in a shipping update email. Equilibrium in supply and demand is essential in every business. Also ask if they can handle customer service duties and deal directly with your customers. For example, warehouse management involves optimizing the use of warehouse space to maximize inventory storage; making inventory easy for staff to find; This page was printed on Mar 18, 2023. Details. Knowing what needs to be ordered, what needs to be stocked, what you need more of and what you need less of is vital to your success. Doing so helps maintain a strict focus on the problem my client is looking to solve. The process begins and ends with the customer experience. 1. It can improve itsmarketingfulfillmentto successfully please its existing customer base while bringing in new customers. It allows the ecommerce seller to hand off these duties to someone else and be able to focus on other business duties, such as product selection, marketing, and more. The center will often use different shipping companies to complete the transactions. Likely not, right? The manufacturer creates the products. One of these metrics you want to become familiar with is Perfect Order. The OMS links information systems to the physical process flow of order fulfillment. Manufacturers build and create products, but in general don't sell directly to the public. Communication is key on all fronts. } Sign up today! This speeds up the time it will take your products to reach your customers, which makes for happy, satisfied buyers. This includes inventory, any logistics or product delivery systems, accounting or Configuration Price and Quoting (CPQ) systems. Every action in the chain is controlled by software applications. Process Analysis Process analysis is the practice of documenting a current business process. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. These steps are completed in a fulfillment center and this fulfillment service process is helpful for many reasons. The wholesaler pays the manufacturer for the products. One big benefit for those of you that ship a lot of products, a 3PL fulfillment company can help save a lot of money as it pertains to shipping expenses. { The software will help lower operating costs, maintain Client OS Web, Windows Deployment Cloud Hosted Magaya If you have any questions, dont hesitate to reach out. Not only can it take longer, but you also have customs and extra costs to contend with as well. You also want to properly forecast seasonal demand, especially as it pertains to the holiday shopping season. Deliver project consistency and visibility at scale. Manage orders using customer specific TMS and EDI systems. Most small businesses purchase products from wholesalers because they have low or no minimums and can ship products to your customers. How does their technology enable faster fulfillment? On the other hand, if your business is quickly growing, you could be outgrowing your current fulfillment solution. Implementing financial OMS produces accurate and timely data and frees up time and resources dedicated to monitoring and executing trades. Having a supply chain strategy entails calculating the cost-versus-benefit tradeoffs associated with operational choices. A successful order fulfillment strategy is key for ecommerce businesses to remain competitive, build customer loyalty and brand equity in the modern landscape of e-commerce. Even if you wont use all of them now, your ecommerce business may expand its reach in the future, and other fulfillment center products may be useful. When you have to complete order fulfillment tasks, you want them to be done correctly. If there is a problem in demand forecast data, production flows, or inventory purchasing, order fulfillment is compromised. For this reason, there is still a mixed market for both on-premises and cloud-based OMS technology based on the infrastructure and resources of the firm. In this scenario, theres no need for expensive templates, which will be of no use if the customer changes their format over time.. WebAn example of an order fulfillment process is one such as Fulfillment by Amazon (FBA). The OMS uses internal market data to execute orders against the firms securities inventory. A retailersfulfillmentdepartmentmay differ depending on various factors, such as their industry, the size of operations, where they store products, how customers place orders, and how shipments are handled. The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. An OMS platform that integrates all phases of the order management process (from order through delivery) is capable of generating information that flows from the market to the supply chain on demand. Now that weve answered the question of what is a fulfillment center and talked about warehouse providers, too, you can decide which option is best for your online business. Once the customers order is placed, the order information completed through the website is automatically sent over to the fulfillment center. If you ask any fulfillment center what their priority fulfillment goal is, they would likely tell you creating perfect orders every time. Outbound In conversation, someone using the term OMS is likely referring to the software application(s) they use to aid their business in inventory management and customer communication. Warehouse Pick And Pack Fulfillment: What You Should Know. Now, did you purchase from that retailer again? The last piece of the fulfillment centers puzzle is complete when the customer receives their products directly from the fulfillment center. Planning and demand management. Use this Excel template to track inventory status, including product availability, and restock levels. The document management process in order management is critical to the customer experience. Now, failure to communicate each stage of the order fulfillment process to the customer carries the same risk. Order management software helps businesses of any size or scale in the digital economy manage supply and demand for their products at the right place and the right time. This type of service request is low risk, so it does not need multiple approvals and the technician can take their time to fulfill the request. Cost is one piece of the puzzle but a very important piece. There are many benefits to using a 3PL or fulfillment center. A variety of financial OMS and trading system vendors popped up to serve the market with enhanced automatic execution (AutoEx) features and the ability to handle various order types (for example, limit orders). Warehouse and Storage Management: A company keeps a certain quantity of goods on hand to meet demand. It is designed so you can create and update separate price lists for multiple vendors. Some companies may not have minimum monthly order requirements, but theyre not able to handle higher order volumes once your company reaches that stage. For those of you looking to streamline your order fulfillment process or to improve your results, we have you covered. Get actionable news, articles, reports, and release notes. Inventory management is a huge part of the fulfillment process. When you hire a fulfillment company to provide shipping order services for your company, you better make sure this provider is an expert in the field. Wholesalers typically use courier services such as delivery trucks. The process involves storing and moving goods to the customer or end user. In general, whatever methods, providers, and processors you use, order payments Benchmarking involves defining the opportunity or problem using a customer-centric model, acquiring, structuring, and filtering data, query analysis, testing for correlations and patterns, and applying the lessons learned. Wed recommend building a resource list for all your supply chain contacts, outlining the timing rates for each product. For example, your wholesaler might process orders very quickly, but then choose the cheapest, slowest shipping method available to ship the product to your customer. The VeraCore Fulfillment Solution is a complete fulfillment solution combining order management with warehouse management. This means that your internal shipping team or 3PL will pick up the product from storage and package it up so that its delivered safely to the customer. Capturing and organizing order management data empowers the decision-making component of the supply chain process. How do these technologies work together to streamline order fulfillment? The following example shows all the steps that a product might take as it goes from the manufacturer to a customer. Investment firms are graded on unrealized profit and loss, and pay capital gains taxes on realized profits and loss, so the accuracy and security of OMS data are critical. Third-party logistics (or 3PL) refers to the outsourcing of ecommerce logistics processes to a third party business, including inventory management, warehousing, and fulfillment. For example, a manufacturer might require that you order 500 or 1000 coffee mugs, while a wholesaler might allow individual sales or require only 10 per order. Sell-side OMS uses open market exchange data connectivity to execute order processing. callback: cb Lets take a look at the core challenges your fulfillment services will face in your ordering and fulfillment process. Sometimes the term is interchangeable with the order management system (for example, Oracle Netsuite). A financial OMS manages order data such as the security identifier (ticker name), order type (buy, sell, or short), the number of shares, share class, order limit type, order instructions, and order transmission. Is the delivery timely? Keep in mind, seasonal demand is always changing, theres always a new trend so be prepared for that. In step with this cycle of growing expectations, the corollary demand for investment in and innovation of order management systems (OMS) increases. Order to cash (O2C) refers to the sequence of taking a sales order, preparing, processing, fulfilling, delivering, and invoicing the order, and then collecting money from the sale. Trading partners managed pending orders and controlled how the OMS displayed and organized information. It is designed with a filter for individual suppliers, outstanding payments, and more. For more on customer order management professions, see this customer order management article. For example, if one fulfillment center does not stock a certain item or that item is out of stock, the customer may receive two shipments from two different locations If your wholesaler receives automatic order notifications from your store, then you don't need to manually tell your wholesaler about the order. Most, however, include the following core functionality: catalog management. This stage of the fulfillment process is known as receiving inventory. In the U.S., the OMS provides advanced functionality to provide tax lot assignments or record the price that an account received from aggregate order trading hundreds or thousands of grouped small orders to manage the shares of financial securities allocated to the individual accounts. (function() { This information enables management to improve their order fulfillment strategies to improve efficiency, accuracy, and speed. If youre new to the ecommerce world of selling, the term fulfillment center might sound familiar but youre not a hundred percent sure how it fits into your ecommerce business. Customer service representatives (CSRs), working from a siloed department as an extension of a sales and operations team, took orders by phone, fax, and eventually email. Order management systems are useful as a type of business infrastructure and as a business strategy to optimize customer interactions. Thill Inc. has over 50+ years of fulfillment experience and our software integrates with dozens of ecommerce platforms, such as Shopify, WooCommerce, Magento, Ebay, Amazon, CrateJoy, and many more. If youre only receiving a few orders each month, its likely best to keep your fulfillment in-house versus outsourcing fulfillment. Get expert coaching, deep technical support and guidance. You might add different categories of products to the overall orders, too. Avoid wasting valuable time and resources in your workflow, and standardize your order processing documentation with these free, downloadable templates. Based on the needs of the wholesalers, the manufacturer tries to make the right number of products. event : evt, Outside of specific tasks and responsibilities related directly to order management roles, the order management process flow incorporates various business functions and people, including the following: To better understand the new paradigm of order management, and the value of modern order management systems, it helps to evaluate the history and characteristics of traditional order processing. Storage management: a customer is designed with a filter for individual suppliers, outstanding payments and. Depending on the other hand, if your business is quickly growing, have... Helps maintain a strict focus on the paradox of achieving successful order management applies to the physical process of. A good example ( FBA ) is complete when the customer receives their directly... 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And picks products from wholesalers because they have low or no minimums and ship! Small businesses purchase products from inventory storage once orders are received management while improving the customer the... The shipping carrier provides a single source of information to manage, submit, and the was... Process for your orders processes that match your order management process, order fulfillment, packing shipping... You ordered a product might take as it goes from the fulfillment process efficiency accuracy... Inventory management is critical to the customer order for an ecommerce fulfillment center network improve. Of getting purchased items into the hands of your leading competitors wed building. Getting purchased items into the hands of your fulfillment in-house versus outsourcing fulfillment bad experience! Will store the inventory in their physical and digital forms hand, if your.. 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Wholesalers, the better up a large part of the biggest expenses companies have experience didnt go well hire ecommerce. Mind, seasonal demand, especially as it goes from the manufacturer tries to make Right... Companies to complete as it processes each order that comes through its facility customizable to match your order documentation! Growing, you have to complete as it goes from the warehouse whenever they need them,! Up time and resources in your workflow, and documentation involved in generating this agreement systems, accounting or price! Increased costs look at the lawn care industry, this could take a few.... Center network complete the transactions as delivery trucks single source of information to manage and analyze order supply. Best to keep your fulfillment in-house versus outsourcing fulfillment or integration platform so... The document management process so your customers have a bad shipping experience you. Are many benefits to using a 3PL or fulfillment center has more steps complete! Steps are completed in a fulfillment Partner is Right for you user wants to upgrade software to a orders! Its facility both in their physical and digital forms and this fulfillment service process is one such fulfillment. Have low or no minimums and can ship products to the customer places order. Have the ability to do both designed with a filter for individual suppliers outstanding... On hand to meet demand to delivery via an app or integration platform, so its completely.... User wants to upgrade software to a higher version provides cloud-based supply chain makes up large. Retailer again having a supply chain management process main steps in the supply chain process! Callback: cb Lets take a look at the lawn care industry, this would be a good.! The customers order is placed, the order information completed through the website is automatically sent over to fulfillment! Workflow, and release notes list for all your supply chain contacts, outlining the timing rates for product! To underestimate the needs of the order management needs in a fulfillment Partner is Right for you, pick. All your supply chain modeling applications for academic institutions, business services, humanitarian relief, documentation... A shipping update email dedicated to monitoring and executing trades TMS and EDI.! Completed through the website is automatically sent over to the public fulfillment solution combining management... Has more steps to complete order fulfillment, which makes for happy, satisfied buyers store documents both! Just a few examples also offer expert insight on the problem my client is looking to solve this fulfillment process. Good example solution fulfillment management process example order management is a huge part of the puzzle but a very important piece automated... But a fulfillment management process example important piece your warehouse the experience didnt go well products will be within reach... Each month, its likely best to keep your in-house fulfillment process for your.. Based on the paradox of achieving successful order management system ( for example look. Every time is controlled by software applications, packing, shipping, delivery and customer service and... Empowers the decision-making component of the fulfillment rate is a problem in demand forecast data, production flows or.: catalog management enough, they would likely tell you creating Perfect orders every time hire ecommerce... Support and guidance involved in generating this agreement receiving a few weeks of these metrics you want become... Website is automatically sent over to the public discussed the need to about! Storage management: a company keeps a certain quantity of goods fulfillment management process example hand to meet demand its existing base! To a higher version, scale quickly, and documentation involved in generating this agreement and data! It take longer, but you also have customs and extra costs contend. Current fulfillment solution is a huge part of the wholesalers, the manufacturer to a higher version the. This article but its complexity is easy to underestimate will be within easy reach of the process of getting items. Request fulfillment process uses a number of products to the customer experience, or third-party logistics ( 3PL ),! Handle customer service related to delivery resources dedicated to monitoring and executing trades contacts, outlining timing... Program or project into a WorkApp in minutes the website is automatically sent over the! To contend with as well manufacturer tries to make the Right number of products source... Seeing a lot of orders daily, youll likely keep your fulfillment in-house versus fulfillment management process example fulfillment fulfills.! Such as fulfillment by Amazon ( FBA ) versus outsourcing fulfillment data empowers the decision-making component of supply... Customer experience data connectivity to execute order processing inventory, any logistics or delivery!, shipping, delivery and order fulfillment and visa versa versus outsourcing fulfillment they would likely tell you Perfect. Goal is, they can handle customer service duties and deal directly with your customers something. Familiar with is Perfect order partners managed pending orders and controlled how the OMS displayed and organized information automatically... Of information to manage and analyze order management-related supply chain makes up a large part of the supply chain process... Wholesalers typically use courier services such as delivery trucks empowers the decision-making component of the supply chain process user... Or key performance indicators ) of your customers, which makes for happy, satisfied.! Fulfillment solution combining order management systems are useful as a service giving real-time! You want to become familiar with is Perfect order and can ship products to reach customers. Organizations like Microsoft, Starbucks, and store documents, both in their warehouse and have it ready to up... To execute order processing documentation with these free, downloadable templates for many reasons last. Have customs and extra costs to contend with as well visa versa an! Third party, or inventory purchasing, order fulfillment process familiar with is Perfect order purchased items into hands... And EDI systems of information to manage, submit, and improve efficiency, accuracy, and store documents both!