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12 Examples of Order Management

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Order management is the process of accepting and fulfilling an order. This is typically a core operational process that is managed, automated and optimized using technologies such as ERP, workflow and/or specialized order management systems. The following are common steps in an order management process.

Entry & Validation

Entry of the order and validation of user input.

Order Processing

Processing including data integration that publishes the order to subscribing systems. For example, an order might be published by an ecommerce platform and consumed by an inventory management, billing and supply chain management systems.

Credit Verification

Often the customer has been qualified before an order is placed. However, if the customer exceeds current limits on their account this may require verifications and approvals.

Billing & Invoicing

Setting the customer and order up in billing systems and generating an invoice.

Payment Processing

Processing payments.

Inventory & Sourcing

Checking stock levels and potentially ordering new stock from suppliers.


In some cases, an order is custom manufactured for the customer.

Customer Service

Keeping the customer informed and handling inquiries and requests.

Returns & Refunds

Order cancellations, returns and refunds.

Service Provisioning

If the order is for a service, the service is set up and the customer is provided access.

Order Preparation

Order preparation steps such as picking and packing.


Shipping the order and tracking the shipment.
Overview: Order Management
The process of accepting, processing and fulfilling an order.
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