The order-to-delivery process converts a confirmed customer requirement into a physical, traceable delivery. It sits inside the wider order-to-cash cycle, but focuses on the operational flow from order entry through fulfilment, transport and proof of delivery.
Order-to-Delivery Process
- Order entry and validation: verify customer, item, quantity, price, requested date, ship-to location and commercial blocks.
- Availability check and allocation: confirm stock or planned supply and reserve inventory where the system/process requires it.
- Warehouse release: create the picking requirement, wave or delivery document.
- Picking: retrieve the correct item, batch/serial and quantity from the correct location.
- Packing and verification: pack, label, weigh and confirm the shipment.
- Transport planning: select route, carrier, vehicle, service level and required documentation.
- Dispatch / goods issue: load the vehicle and record the shipment leaving custody.
- Delivery and POD: deliver to the agreed location and capture proof of delivery or an exception.
- Exception / return handling: resolve shortages, damages, refusals, failed deliveries and returns.
Key Controls at Each Stage
| Stage | Control | Typical failure |
|---|---|---|
| Order entry | Master data, pricing and ship-to validation | Wrong item/address/date |
| Allocation | ATP/availability and priority rules | Over-allocation or unfulfilled order |
| Picking | Barcode/scan verification, batch/serial rules | Wrong SKU or quantity |
| Packing | Pack verification and label control | Damage or misrouting |
| Dispatch | Vehicle/load confirmation and documents | Missed shipment or documentation error |
| Delivery | POD and exception code | Unverified delivery or unresolved shortage |
Core KPIs
- Order cycle time
- OTIF / on-time delivery
- Order fill rate
- Pick accuracy
- Perfect order rate
- Delivery exception rate
- Return rate
- Cost per order / cost per delivery
Example
A customer orders 100 cartons for delivery on Friday. The ERP confirms 100 are available and creates a delivery. The WMS allocates two pallets, the warehouse scans and picks them, packing confirms the load, and the TMS assigns a Friday route. The driver captures POD at the customer site. If only 98 cartons are accepted, the exception must flow back into inventory, billing and customer-service processes rather than remaining as an informal delivery note.
Relationship to Order-to-Cash
Order-to-delivery ends operationally at successful delivery/exception closure. Order-to-cash (O2C) is broader and includes invoicing, receivables and cash collection. See P2P vs S2P vs O2C vs Q2C for the broader process comparison.
Interview Question
Question: What is the difference between OTIF and order fill rate?
Answer: Fill rate measures how much demand is fulfilled from available supply, while OTIF evaluates whether the order was delivered both on time and in the agreed quantity. A business can have a high fill rate but poor OTIF if deliveries are late.
Comments 1