Let $\alpha$ be an ordinal.
Let $S$ be the set of finite subsets of $\alpha$. Consider the following direct system:
- For each $x\in S$, there is an object $a_x=|x|$.
- For $x,y\in S$ with $x\subset y$, there is the corresponding morphism $f_{x,y}\colon a_x\to a_y$. That is if $x=\{x_0,\ldots,x_n\}$ and $y=\{y_0,\ldots,y_m\}$ (both in ascending order), then $f_{x,y}(i)=j$ iff $x_i=y_j$.
Matching this direct system, we have the morhisms $\phi_x\colon a_x\to \alpha$ given by $i\mapsto x_i$ (again assuming $x=\{x_0,\ldots,x_n\}$ in ascending order).
The required property $\phi_x=\phi_y\circ f_{x,y}$ is clear.
I claim that $\alpha$ (together with the $\phi_x$) is a direct limit of the direct system specified above.
Let $\beta$ be an ordinal together with morphisms $\psi_x\colon a_x\to b$ such that $\psi_x=\psi_y\circ f_{x,y}$ whenever $x\subset y$.
Then we can define a morphism $h\colon \alpha\to \beta$ as follows:
For $\gamma\in \alpha$, let $x\in S$ be a finite subset of $\alpha$ with $\gamma\in x$. Then $\gamma = \phi_x(i)$ for some $i\in a_x$. Let $h(\gamma)=\psi_x(i)$.
This is well-defined for if also $\gamma \in y$, $\gamma=\phi_y(j)$ with $j\in a_y$, then also $\gamma \in x\cap y$ and via $f_{x\cap y,x}$ and $f_{x\cap y,y}$ we verify that $\psi_x(i)=\psi_y(j)$.
Also, it is clear that we are forced to define $h$ like this, thus establishing the universal property of direct limit.
With hindsight, we could have done with the smaller set $$S=\alpha\cup \bigl\{\{\alpha_1,\alpha_2\}\mid \alpha_1<\alpha_2<\alpha\bigr\}. $$