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 web- store or it can be a back-end Enterprise system where the customer order gets downloaded.
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.
Step3 – Order Picking: The operations/fulfilment team then start processing the order in the warehouse. First a picklist is generated against that order (usually its 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 picklist and bring it back to the picking station (a stage location)
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.
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.
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.