In organizations, order-to-cash process management is continually being pressured to improve margins, reduce errors and supply meaningful information for better decision making. This is further into the ever growing regulatory environment. These pressures will spark off more enterprise organizations to search for better order management solutions to become efficient, effective and intelligent. Some of the key challenges of not having proper order management solutions are: Inventory Loss Wrong orders being delivered High cost of inventory Lack of mapping between orders and payments 1. Inventory Loss – Poor tracking Even though the stock is available in the warehouse, due to the fact that it is not tracked properly, the provision of the inventory is not acknowledged and what you do is, then you will reorder it. You will omit out inventories while untracked inventories are present so you incur a loss.This would further add to improper solutions to enterprise order management. 2. Wrong orders being delivered – No synchronization between teams For the order request that has been raised by a customer, if orders are not overseen well in the backend, there are chances of wrong products being shipped, a product with wrong attributes is shipped, wrong quantity of order could be conveyed on the grounds that the total request is processed around the manual procedure which leads to customer dissatisfaction. If the incoming orders are not noted accurately, then the primary stage of the cycle itself would be in peril, and this isn’t an unusual event when the orders are taken manually. At the factor while the incorrect product is made or the wrong specifications are used, the purchase returns motive losses for the organization. Inventory management is one of the major aspect of managing orders: 3. High cost of inventory Purchase and the production value of stock plays a top notch position in figuring out gross income. Keeping stocks that are obsolete and have a low turnover slows down sales. Inventory levels should consider demand levels to avoid overstocking and understocking. Proper inventory management for organization is vital to maximizing operational efficiency and profitability. 4. Lack of mapping between orders and payments Many companies use accounting software to manage account receivables in silo. This leads to a lack of traceability of payments to orders and deliveries. In a few scenarios, the non-traceability may result in cash mismanagement. In case of invoices, most of the customers, no matter whether they’re inside the B2B or B2C segment, request for invoices that might have info consisting of their buy order number, invoice number, etc, so that they may cross-verify the order information and the charge terms. Such invoices, if created manually, are time consuming, and are vulnerable to human errors. This in return could bring about additional work for the account screw. So proper inventory management and order management for any enterprise is vital for a smooth flow of business insights.
Sustainable profitability is the ultimate objective of organizations. The entire value chain you create to deliver to your target market involves a comprehensive procedure for an enterprise order management system. Each step you take towards developing your final product, either provides a solution to the pain points of customers or adds negative encounters of customers with your enterprise brand. It’s a cycle of steps altogether strapped with an order management system for an enterprise. Microsoft conducted a research study with 1000 U.S consumers and concluded that 65 % of customers sever ties with brands over just one negative experience. To ensure repeat sales and continuous inflow of customers, you need a holistic approach. A robust order management process ensures a smooth cycle of the value chain of your organization and makes sure you don’t get stuck in the trap of negative customer engagements caused due to process bottlenecks. The best go-to solutions for an error-free value chain is offered by automated business processes. In this post, we will give you valuable take away inputs of the general enterprise order management process so that you can choose what’s best for you! What is Order Management? Order management is the science of aligning the various steps involved in keeping track of orders in-flowing into the business and handling the operations or logistics required to accomplish them. This order management process is a holistic approach to achieving a sustainable value chain delivery system. It is an exhaustive combination of activities from the starting point of receiving an order, delivery, payment integrations, operations, logistics, and extending up to after-sales experience including exchange/return management administration. Order management is an aspect of business process automation. Since inventory and supply are a few of the most nettle & tricky activities for stakeholders, so it’s inevitable to use a well-implemented Order management system. Dealing with orders effectively and in a productive manner is the core of the supply chain process and is certain for profitability. It’s extremely important to collaborate with all departments with customer expectations. Improved financial progress can be achieved only through long term customer satisfaction and retention. Investing in an OMS to improve your competitive advantage is a very smart decision. The enterprises today are undertaking fractured supply chain processes and ending up with high costs of production, matchless customer pressure, etc. An order management system is in demand today because of: National, local and global expansions: The next-Gen market is characterized by a shift towards growth orientation. Enterprises are hunting for quick alignment and wider local/global expansions. Hence the need of the hour is a solution which can be implemented easily and is flexible enough to enable business process integrations throughout globalization to compete with bigger market players. A high number of orders and multiple delivery channels: Customers prefer wide choices and hence providers need to handle multiple channels and logistics. Attaining visibility across the front end of the supply chain is unavoidable for brand experience. It’s important to stay updated with other market players in every aspect so that you don’t get left out of the competition. Complexities of global supply chains are the new pain-point: The global market provides enormous opportunities and every organization wants a share of the pie. The supply chains have become more comprehensive and composite with shorter product life cycles. To coordinate with all the pieces becomes a struggle for multinationals due to their economies of scale. What becomes more challenging for providers is keeping supply chain costs at bay. If mid-sized organizations miss on this component and local integration, they lose out on the benefits of large scale production. Extremely high customer expectations: The cost of missing a single step in customer service is really high for enterprises in a competitive industry. Globally, enterprises and providers are concerned with new product introductions, products to service quality, delivery, warranty, etc. “Quality” is the key to success. It starts from product or service quality and continues until after-sales service delivery. This makes the supply chain more demanding and failure highly fatal! The benefits of adopting an Enterprise Order Management System: An efficient order management system (OMS) for an enterprise mechanizes and streamlines the operations, shipping, and order processing ability centrally for mid-sized organizations. It’s a very smart way of business process automation, which adds ease and efficiency in daily operations. It’s an electronic system developed to execute orders in a planned and cost-effective manner. It increases the productivity of resources involved across maximum levels. Medium Sized organizations adhering to stringent regulations enjoy the advantage of real-time monitoring positions and preventing regulatory violations round the clock. An OMS plays a key role in keeping the stakeholders updated with information. It’s a one-stop platform for key insights related to customer returns, shipping, refunds, customer database, vendor database, order processing records, billing and payment information, etc. An OMS also contributes to error-free order processing, operations, tracking, and with an assurance of minimum delays or backorders. With smart reporting, analytics, and evaluation, enterprises successfully can conduct a deep analysis of the workflow. How does OMS work for an enterprise? The basic objective of an Order Management System (OMS) is to organize and make the work process easier for organizations. It consolidates orders from all sales channels into a single platform and is smart enough to give you the benefits of analytics. For enterprises, the Order Management System (OMS) is unavoidable if they wish to streamline workflow operations and introduce new products in the marketplace. An OMS becomes a mandate if you want to easily ramp up production in the lowest time possible. An Order Management System covers six pillars: Orders: Pooling in customer orders from multiple channels, both internally and externally. Inventory: Undertaking accurate forecasting and syncing activities in real-time across all channels to avoid stock-outs. Fulfillment: The focus is on a well-organized warehousing process involving picking, packaging, and integration with targeted shipping carriers. Quality fulfillment techniques are futuristic. Returns: An OMS serves as a single platform for the organization to […]