Customer order management – How process flow & cycle work functionally.

Customer order management

Customer order management is systematic procedure for organize customer orders, processing and setup priority of customer requirements. This system focus on timely delivery and materials quality for enhance customer satisfaction.

Introduction to customer order management

Customer order management develops for introduce highly focus key system on customer order and its technical requirements. The purpose of the system development is:

  • Understanding and effectively use technical requirements in production.
  • Timely delivery to each customer.
  • Deliver best quality product to customer.
  • To establish customer requirement based system.
  • Understand customer’s end application requirements.

As you can see above points are basic needs of customer order management. The system includes every customer order’s technical, specific, and special characteristics requirements.

How to implement customer order management?

It is extremely important that, effectively implementation of customer order management needs to involvement of each department and are people actively participate is necessary. Implementation of customer order management needs to take step by step guideline.  Every department must understand its responsibility for the system. Generally, marketing and planning are preparing foundation and conduct initial stage of order management.

Marketing role

Marketing department receive customer requirements and forward details to planning department. The marketing & planning department should be actively participating in each order tracking, planning and schedule, dispatch and communicate with customers for pending orders and quantity still not received by customers.

Planning role

The planning department is receiving all the requirements are registered, plan and implementation. Planning department verify pending order for production lines as deployed system.

The planning team manage the order balance, to verify further requirements. Each customer order is managing in the order balance sheet to insert the pending order for production. The materials are conduct as per machinery and equipment availability in production lines. The detailed information is filled by team in standard format. See example:

Order balance sheet template, Customer order management
Order balance sheet format


The document format should describe and mentioned requirements of effective manage records about pending customer orders are:

  • Customer order number and date;
  • Customer identification numbers / customer name;
  • Parts numbers and part name with short description;
  • Product / part specifications as per technical sheet provided by customers along with order;
  • Product / part dimensions / sizes and its required tolerances, acceptance and approvals;
  • Customer expected delivery / or as per provided schedule of order confirmation;
  • Actual product / parts delivers to customer’s date & quantity delivered;
  • Balance quantity as per customer order;

Customer order balance sheet is also calls pending order list. Where all the customer order is organized in it. This pending order list may describes the details of order, which is under manufacturing process in production lines. That mean customer orders are already plan for manufacturing, but not taken in production line, or it is in under process. This format is used for monitoring, tracking and rescheduling each pending order. Through this format easy to effectively controls over the processes to timely deliver the materials to customers. Each delivered materials are records and balance quantity is mentioned in order balance sheet. So it is helpful sheet that used in production planning department and regular update required.


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Order balance sheet



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