1.1 Meaning of Customer Orders
A customer order is a formal request from a customer to a supplier for specified goods or services, stating what is wanted, in what quantity, at what price and when and where it is to be delivered. Once the supplier accepts it, the order becomes the starting point of the whole distribution process: it triggers picking from the store, packing, invoicing and dispatch. In stores and distribution work the order is also a document of record, so it must be received accurately, checked and kept.
Example: a hardware distributor in Eldoret receives a written order from a contractor for 200 bags of cement and 50 lengths of iron bars, to be delivered to a site in Iten within three days.
Contents of a Customer Order
- Customer details: Name, address, contact person, telephone and customer account number.
- Order number and date: A unique reference used to track the order from receipt to delivery.
- Item description: Name, code, specification, size or grade of each item ordered.
- Quantity and unit of measure: How many units, cartons, kilograms or litres are required.
- Price and terms: Unit price, total value, discounts, taxes and payment terms.
- Delivery instructions: Delivery address, required date, mode of delivery and any special handling.
- Authorisation: Signature or approval of the person entitled to place the order on the customer's behalf.
Types of Customer Orders
- Standard order: A one-off order for specific items and quantities at an agreed price.
- Repeat order: An order for the same items as before, often placed at regular intervals.
- Blanket (standing) order: An agreement to supply items over a period, with deliveries called off as needed.
- Urgent (rush) order: An order needing faster than normal processing and delivery, sometimes at extra cost.
- Back order: The part of an order that cannot be supplied from current stock and is delivered later.
- Internal requisition: A request from a department of the same organisation to its own store.
Importance of Accurate Order Receipt
- Correct supply: The right items, quantities and specifications reach the customer.
- Customer satisfaction: Accurate, prompt handling builds trust and repeat business.
- Stock control: Orders feed demand information into stock records and replenishment.
- Revenue and records: Orders support invoicing, payment follow-up and audit trails.
- Reduced returns: Fewer errors mean fewer returns, credit notes and wasted transport.
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Create a free account 🔒1.2 Methods of Receiving Customer Orders
Methods of receiving customer orders are the channels through which customers pass their requests to the supplier's sales or stores office. The method affects how fast the order is processed, how accurate it is and what records are kept. Most organisations use…
🔒1.3 Factors to consider when choosing methods of receiving customer orders
No single method of receiving orders suits every organisation. The choice depends on who the customers are, what is being sold, how much it costs to run the method and how fast and accurately orders must be processed. A well-chosen mix of methods makes orderin…
🔒1.4 Distribution
Once customer orders have been received, the goods must be moved from the store to the customer. Distribution covers all the activities that make goods available to customers at the right place, at the right time, in the right quantity and condition, and at an…
🔒1.5 Steps in Distribution Plan Preparation
Preparing a distribution plan means turning the orders received into a practical programme of deliveries that uses vehicles, staff and stock efficiently. The steps run from understanding demand to monitoring the plan once deliveries begin. Following them in or…
🔒1.6 Factors to Consider in Distribution Planning
Distribution planning must balance good customer service against the cost of storing and moving goods. Many factors affect which channels, routes, vehicles and schedules are chosen. A planner who ignores them risks late deliveries, damaged goods or costs that…
