What is Order Management?
Order Management employees are responsible for collecting, validating and submitting all of the information (often entering such information into an ERP system) required to accurately fulfill customer orders. The Order Management function is a bridge between the Sales, Production and Distribution functions of a company. A successful customer order requires coordination between marketing, sales, pricing and quotation, inventory tracking, production, packaging and shipping groups. Many of these activities can be performed through third-party vendors or in-house (whether in part, or completely). While order management is important primarily in the retail industry, it is also extensively used in the telecommunications, health care, pharmaceutical, financial and securities industries. Product returns are also typically processed by the Order Management function.
Supply Chain Benchmarking ReportBenchmarking Report Bundle
Order Shipment Cycle TimeBenchmarking Report
Order Management KPI EncyclopediaKPI Encyclopedia
Order Management Best Practices GuideBest Practices Guide
Order Management Organization Chart TemplateOrg Chart Template
Returns ProcessingWorkflow Template
Order Shipment Cycle Time
The number of hours required to process a customer order, from the time when the order is placed until the time the order is shipped by the supplier.
KPI Type : Service
Formula : Sum of Time to Ship Customer Orders / Total Number of Customer Orders Shipped
KPI Benchmark Range : 3.6-52.1
A typical order management function is composed of several common sub-functions, or teams, that work together to collect, validate and submit all of the information required to accurately fulfill customer orders. Order management employees are also responsible for ensuring that order returns are processed accurately and efficiently. Browse our Order Management organization chart page to learn about the roles and responsibilities of each major function. Then, download our org chart template (PDF, Visio, PPT) to further understand order management organizational structure, and support improvement efforts within order management operations.
Check out our order management best practices page to view selected descriptions of work methods that have been proven to produce better results (as compared to other, similar methods). Want more? Download our Order Management best practices guide, which provides a healthy selection of valuable best practices that can be incorporated to improve order management operations. There might not be only one "best" way to perform every task. However, there is always a "better" way.