Keeping track of orders from the inventory through shipping to order fulfillment and monitoring people, processes, and data linked to the order as it goes through the lifecycle is essential for every business.
Order management software can help you to track the stock in real-time and fulfill orders timely across your omnichannel order strategy. Order management begins when a consumer places an order, and the process ends when the customer receives the product or service. It enables a business to oversee the fulfillment process from order collection and provides delivery visibility and service availability. The workflow can be different depending on the company’s requirements. Still, a typical order management process can include three steps: placement of an order by the customer through automation, fulfillment of the order by a warehouse employee, and inventory management in which the stock level is monitored as the demand fluctuates.
Importance of Order Management
Order management involves almost every process and system in the supply chain. Most companies work with multiple partners such as component suppliers, packaging services, and distribution centers, due to which it becomes challenging to keep track, and companies often lose visibility and control over the order. It requires expensive manual processes to complete and fulfill orders without errors. Order management software can assist in cost control and create revenue through automation of manual processes, which can help to minimize errors.
Order management influences the perception of a customer about a brand or company. In an omnichannel business, consumers expect timely order fulfillment, and a customer may complete their online order after resolving their queries over a phone call. The customer expects the shipping updates through notifications, and they might wish to return it through a store. Businesses get a scope to improve the customer experience and enhance retention and revenue at every step. The omnichannel journey presents the scope for generating up-sell and cross-sell recommendations for increasing revenue.
What is an Order Management Software?
Order management software assists in organizing your sales procedures to satisfy your customer expectations. The software streamlines multi-channel orders into a central and organized system. You can efficiently run the eCommerce operations starting from when the orders are placed to when the orders have been fulfilled. Order management software monitors the inventory, payment processing, and incoming orders. It also provides real-time insights depending on the customer’s physical location and helps to deliver the orders quickly. Companies can effectively manage orders and keep their customers and employees in the loop.
Benefits of Order Management Software For Businesses
- Point-of-Sale Payment Entry
Traditional payment methods involve a lot of errors and are unsecure, time-consuming and inconvenient for the customers. With order management software, businesses can process customer payments efficiently through point-of-sale payment entry. You can save time, keep your customers’ sensitive data secure and reduce the scope for errors with fully integrated payment processing.
- Tax Compliance Automation
Tax calculations are complex, but order management software can do complicated calculations, and you can conveniently collect sales tax without making it a burden. You can also identify your customer’s exact tax rates and can conveniently file your taxes later.
- Product Options and Alternates
Order processing software may provide advice on product options and alternatives, an efficient and robust tool for your sales. The need for similar products arises when a product goes out of stock. Still, with order management software, companies could suggest similar items that may satisfy the customers’ demands. It also offers excellent scope for selling additional products that your customers might not be familiar with.
The software places the product alternatives and options before the team during the sale, and you would not have to make a customer wait for a long period to restock products. Whether it is a replacement or an additional product, the capability to quickly display additional products to your customers is something that a team would not be able to achieve manually. Still, the software can yield the results in seconds.
- eCommerce Integration
The incorporation of an order management system can be beneficial for your company. You can join with platforms such as Shopify, Magneto, WooCommerce, and Amazon to automate your whole order. This improves online ordering and ensures that your sales process is organized regardless of where customers place the order or where they find you.
- Automating Accounting
When the invoices and purchase order records are auto-generated, you remove most of the accounting-related data entry. It assists your accounting team in saving time, and you can avoid data-entry-related delays and mistakes. As an additional advantage, you can also liberate your accounting team to concentrate on cash management and planning for your business.
- Credit Management
With full accounting integration with the order management software, the sales team can get real-time information on the customer’s existing A/R balance. It ensures that the customers stay updated on the invoices and would not permit them to place orders if the software finds that the credit limit has been exceeded. It can assist you in enhancing relations with the customers if they receive the notification about a payment issue they were unaware of and does not let you work with customers with poor credit.
Integrating your business with order processing software can be immensely beneficial if your business has multiple sales distribution channels and makes order fulfillment easy and convenient. The order management software ensures that you do not lose out on sales, and you can handle order volumes, avoid bottlenecks, enhance vendor relationships and consumer satisfaction and increase sales.