SKUs are used to track inventory and sales, ensuring accurate record-keeping and product identification.

A unique identifier for each distinct product

What does the term "stock keeping unit (SKU)" refer to?

 Fulfillment is the process of receiving, processing, and delivering orders to customers.

What does the term "fulfillment" refer to in order management?

Backorders occur when a product is temporarily out of stock, and the order is fulfilled once the item becomes available again.

An order placed on hold until inventory is replenished

What is a "backorder"?

The order lifecycle encompasses all the stages an order goes through—from placement, processing, and shipping, to delivery and post-delivery activities

The time from order placement to delivery

The marketing strategy to attract customers

In order management, what does the "order lifecycle" refer to?

Drop shipping allows retailers to sell products without physically stocking them, reducing inventory costs and logistical challenges.

Shipping products by dropping them from a height

Direct shipment from supplier to customer w/o retailer handling inventory 

What does "drop shipping" refer to?

Inventory allocation involves managing the distribution of available stock to meet customer orders efficiently.

The process of deciding which items to discount

The process of producing goods based on orders

The process of assigning available stock to customer orders

What is "inventory allocation"?

Lead time is critical in planning inventory replenishment and ensuring timely order fulfillment.

The time it takes to deliver a product after shipment

The time between ordering inventory and it becoming available for sale

The time it takes for a customer to place an order

What is "lead time" in order management?

SLAs establish clear metrics and timelines for order processing, shipping, and delivery, helping ensure reliability and accountability in service delivery.

They standardize the color and design of packaging materials

Defines expected performance/delivery standards between all parties

How do Service Level Agreements (SLAs) influence order management processes?

A sales order records the details of a customer's order and serves as the basis for processing and fulfillment.

A document capturing a customer's purchase request

What is a "sales order"?

An OMS centralizes and manages the order process, improving efficiency and accuracy from order placement to delivery.

To automate and streamline order processing and fulfillment