Order streaming is a dynamic order management approach. Unlike traditional processing of orders in batches, which can get delayed, order streaming allows you to provide continuous information throughout the process without interruption, thus eliminating bottlenecks and enhancing operational accuracy. We’ll explore these differences here so you can make an informed decision for your business.
In today’s fast-paced, dynamic market, efficient order management can make or break your ability to meet customer expectations. With the evolution of technology, the traditional batch type of order processing is being replaced by a more flexible and real-time solution called order streaming. The typical methods of group order processing often cause delays and inefficiencies, while order streaming provides a continuous flow of information, thus enabling immediate action. This shift allows you to reduce bottlenecks, improve accuracy, and speed up fulfillment times.
Knowing the differences between these two methods is crucial if you want to be a leader in today’s high-speed and accuracy era. Whether dealing with high-volume eCommerce activities or fine-tuning your supply chain and logistics operations, you need to know how order streaming can change your order management game and improve customer satisfaction.
Let’s dive deeper into these order processing methods and reveal how these approaches affect your business operations.
Order Streaming: A Game-changer in Modern Warehousing
Order streaming is a warehouse management and picking strategy specifically made to address the demands of eCommerce and omnichannel supply chains. Instead of releasing orders in large batches, streaming provides workers with a steady “stream” of tasks throughout the day, minimizing downtime and enhancing efficiency.
This system considers the warehouse’s capacity constraints and then distributes work as required to maintain a smooth and continuous flow and optimum utilization of available resources. The best part is that it is an automated process that works smoothly without human intervention.
This approach reduces operational costs and improves scalability, thus empowering you to handle peak-season demand surges efficiently and seamlessly. Moreover, order streaming also enables resilience against challenges such as equipment failures and labor shortages to maintain seamless operations at all times.
Key Benefits of Order Streaming
Order streaming helps you organize your warehouse operations by effectively managing the warehouse resources. This strategy of order-processing innovation utilizes automation to help you eliminate bottlenecks, thus reducing the time between order capturing and fulfillment.
There are two crucial benefits of order streaming – saving time and better asset utilization. Let’s take a closer look at how these translate to improved efficiency in warehouse
Save time – The following are the ways how this processing approach helps you save time:
- The WMS system constantly analyzes and prioritizes the order pool, automatically forwarding them through the process without human involvement.
- Your WMS ensures that forward locations are filled in advance to avoid wasted trips to bins for out-of-stock items or insufficient inventory.
- Priority orders are processed first to ensure timely fulfillment and stellar customer experiences.
Enhanced asset utilization – Here are the ways how order streaming improves asset utilization in your warehouse:
- Your WMS can intelligently avoid creating and assigning tasks until the required labor and/or equipment is available, thus eliminating bottlenecks.
- Order streaming leverages pull-based processing. Hence, your WMS monitors the capacity and limitations in real time and dynamically adapts processes instead of making an unchangeable plan built on predicted capacities.
Now that we have explored order streaming let’s understand traditional order processing in more detail.
Uncovering Traditional Order Processing
Traditional order processing involves manually managing customer orders using paper sheets. Individuals or small teams complete regular tasks, such as recording orders, managing inventory, and packaging.
This method usually depends on manual log entries, where orders are written on paper and prepared for dispatch. It requires all order and stock information to be handled without automation. Individuals or teams are responsible for monitoring all order and inventory data.
Benefits of Traditional Order Processing
The Traditional order processing method can be time-consuming and more prone to human errors, especially in the case of large volume orders, as individuals handle it manually using paper sheets. However, some of the benefits of the traditional order workflows include the following:
- Inventory control – This order processing method is controlled by a small team of individuals, who enable closer monitoring of stock levels, thus preventing the understocking or overselling of items.
- Customer communication – This approach facilitates direct interaction regarding product availability and delivery timelines and allows customers to place special requests.
- Cost-effective for smaller businesses – The traditional order processing method can be cost-efficient for smaller businesses with lower order volumes.
- Quality control – Handling smaller volumes of orders enables closer quality checks of items before shipment for delivery.
Now, let’s explore the differences between these order processing approaches.
Essential Differences Between Streaming and Traditional Processing
Streaming and traditional order processing have unique diversities and variances like any method, approach, or strategy. Here are some of the major differences between these order processing methodologies:
| Differentiation Points | Order Streaming | Traditional Order Processing |
|---|---|---|
| Processing method | Works in real-time, continuously monitoring and prioritizing individual orders. | Processes in batches. Groups order together before releasing for picking. |
| Speed and efficiency | Steady workflow reduces bottlenecks and ensures faster, more efficient order fulfillment. | Batch-based workflow slows fulfillment and can create bottlenecks, especially during peak seasons. |
| Scalability | Highly scalable with the ability to adapt to demand surges with minimum disruption. | Limited scalability, as batch processing takes time to adapt to demand spikes. |
| Order prioritization | Prioritizes urgent orders automatically, leading to faster fulfillment. | It is likely to delay high-priority orders as all orders in a batch are treated equally. |
| Flexibility | Flexible to adjust quickly to changing inventory levels, equipment issues, or labor shortages. | It is less adaptable, as batch processes are static and difficult to adjust after initiating them. |
Conclusion:
The choice between order streaming and traditional order processing significantly impacts your business’s efficiency and ability to meet the shifting customer demands. While traditional order processing is a reliable approach for smaller operations, it often struggles to match the high-velocity and high-volume demands of the current e-commerce and omnichannel supply chain. In contrast, order streaming enables you to boost customer satisfaction, cut operational costs, and embrace a smart production line by focusing on speed, accuracy, and flexibility. However, the right processing method should be based on your operational needs and business objectives.
So, as consumer expectations continue to shift, leveraging the benefits of order streaming can position your business for long-term success in an increasingly competitive landscape.
Contact with XPDEL if you need professional help deciding an order processing method to deliver amazing customer experiences and grow your business.
About XPDEL:
XPDEL is not another 3PL supply chain and logistics provider. We help eCommerce brands accelerate their growth, empowering them with multi-channel fulfillment, whether shipping directly to consumers, delivering to businesses, or selling through retail stores. Powered by advanced technology and led by industry experts, we thrive on data and insights for making smart business decisions.
