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4 major Order Management challenges by SME’s – How to overcome?

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:


order management analysis


  •  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:


Inventory management 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.








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