What role has technology had in order processing? What are some of the key technology elements that you see in your daily shopping? What do you think will be the next big technology development in order processing?
Advances in technology have allowed most firms to computerize many aspects of their order processing systems. Order forms can be designed so that the use of computers by both the customer and the vendor is greatly facilitated. Similarly, the billing of customers is increasingly done through computerized and electronic networks. Technology can be used to reduce the order cycle time by removing some of the steps involved in order checking. Companies can adopt technology which can have important implications on order cycle effectiveness and efficiency as well as on customer satisfaction. Incomplete or inaccurate orders can negatively affect customer satisfaction and increase costs. However, checking all orders for completeness and accuracy adds costs and time to the order cycle. EDI orders are allowed to bypass checking for completeness and accuracy Companies can use the information technology to expedite order checking process. Order picking and assembly has been greatly affected by advances in technology such as handheld scanners, radio-frequency identification (RFID), and voice-based order picking. Another order picking technique that has grown in popularity in recent years is pick-to-light technology, in which orders to be picked are identified by lights placed on shelves or racks. Advances in picking technology, such as pick to light, generally result in higher pick rates and fewer picking errors, along with reduced training time and reduced levels of employee turnover.
Murphy, R. & Wood, F. (2008). Contemporary Logistics (9th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.