What does the term 'order fulfillment' refer to in logistics?

The term 'order fulfillment' refers to the complete process from order placement to delivery, making it essential to the logistics and supply chain management fields. When a customer places an order, order fulfillment encompasses all the necessary steps to ensure that the product is processed, picked from inventory, packed, and shipped to the customer. This process includes various activities such as inventory management, order processing, and the coordination of logistics to ensure timely delivery.

Understanding order fulfillment is crucial for maintaining customer satisfaction and operational efficiency. Successfully managing this process involves not just getting the product to the customer but also ensuring that the correct product in good condition is delivered on time. This concept is central to effective supply chain management, highlighting its importance in both practical logistics operations and strategic planning.

The other options address different aspects of logistics management but do not capture the comprehensive nature of order fulfillment. For instance, storage of excess inventory pertains to inventory management, while customer service handling involves post-order aspects, and inventory valuation focuses on how the value of inventory is measured rather than the process of fulfilling orders.