Exception Handling Workflow for Order Fulfillment
30% of orders required manual exception handling, creating bottlenecks in fulfillment process
Context
E-commerce fulfillment center processing 5,000 orders daily. Standard order fulfillment workflow: order received → inventory allocated → pick list generated → items picked → packed → shipped. However, 30% of orders had exceptions: wrong addresses, payment issues, custom packing requirements, split shipments, inventory discrepancies. Exception handling was ad-hoc: staff noticed problem, stopped order processing, manually resolved issue via phone/email, then resumed processing. No tracking of exception types or resolution times. Exception orders took 3-5 days to fulfill vs. 1 day for standard orders. Staff spent 40% of time on exception handling rather than standard fulfillment.
The Real Problem
Exception handling had no structure—each staff member resolved exceptions differently, no consistent process. No visibility into exception volume or types—couldn't identify patterns or root causes. Exception resolution required context-switching: staff stopped fulfillment work, investigated issue, contacted customer/supplier, then returned to fulfillment. Time-consuming: exception investigation required checking multiple systems (order system, payment system, inventory system, shipping system). Some exceptions were preventable—wrong addresses could be validated at order entry, payment issues could be caught before fulfillment starts. Off-the-shelf fulfillment systems handled standard workflows well but had limited exception handling capabilities. No prioritization—urgent exceptions treated same as routine exceptions. Exception resolution wasn't documented—same exceptions recurred without process improvements.