In simple terms order management means to process the tracking and fulfilling sales orders. The people, processes, and suppliers included in the chain of efficient tracking and delivery of orders are also part of order management. The order management process begins at the time of the placement of an order or service and continues until the order is fulfilled and recorded. However, the operations process might be simple to explain, it is not as easy to carry out. There are several departments involved in the process – sales, delivery, customer management, and so on.
Key Steps Involved in Order Management
Order placement: The first entity in the process is the customer placing the order, making the payment and receiving the product or service. The order placement can be in person, over the phone or online. Sometimes, there is also customer service department involved if the customer needs assistance in placement of the order. Customer experience is also a part of the process because it starts right from the moment of order placement.
Payment and order fulfillment: Once the payment is cleared and processed, the second step of the order management is to deliver the product or service in concern. The order form is filled out and sent to the warehouse where the inventory is monitored and then processed for delivery. This is where the departments of purchase processing, warehouse management, and supply chain also come into play.
Entry of order delivery: This is the final step of the process or order management where the delivery is recorded so the inventory can be replenished and other relevant entries be made in financial statements and record books.
What to watch out for in order management?
As the business grows, the number of orders grow and along with it the complexities in the order management process. Once in a while it may be forgivable to make mistakes in delivery times, or mixed up addresses or instructions from the customers, but if continued these very mistakes, however small, can lead to loss of the business reputation, consumer confidence, and the brand image of your company altogether. Furthermore, continued mistakes in order management can also lead to higher cost of sales, more financial reparations for damages to the customers, as well as potential legal fines and penalties if the product or service in concern is significant enough.
Therefore, there are a few things you should be on the lookout for, starting with recordings of orders and deliveries, so the redundancy, repetition and confusion in deliveries can be avoided. Secondly there is always a chance of human error in receiving orders, recording entries in the supply and inventory books and so on. A better option here is to automate the processes, since invariably the expenditure you will be incurring on technology will be far less than the damages that erroneous order management might bring your way. Thirdly, and finally you also need to bring your other manual processes up to speed with the changing business environments. Having your existing employees take on additional tasks that seem no-brainers instead of hiring qualified professionals might also end up costing you a lot more than you hope to save. These areas include – but are not limited to – purchase orders processing, accounts management, financial services, and even marketing research and analysis.
How outsourcing can help you improve your order management?
Taking on an external partner on board will not only help you with the loopholes mentioned in the previous section but can also streamline additional processes for your order management to become more efficient and productive. Outsourcing companies have better technology and qualified professionals on board which if you were to employ independently might cost you an arm and a leg but with a BPO company, it will only be at a fraction of the cost for you.
Moreover, since outsourcing companies are operating specifically in the targeted area of order management, for them it is one of their core business activities as opposed to an auxiliary function for your business. This means that their operational efficiency, market knowledge, and familiarity with the market and business conditions are much better than yours. They also operate with multiple industries and players within those industries offering them a key advantage in terms of industry analytics, which they can apply into making operational strategies for your company’s order management.
Why Intersoft BPO is your best bet?
Intersoft BPO not only has the required skill level in personnel but also state of the art software that can make order management breezy for your business. In addition to the benefits of outsourcing mentioned above, you will also get the full catalogue of our services that span several areas and departments of your company involved in the process of order management. They include the following:
- Electronic cataloging of your sales and orders and customer support by trained team of professionals
- Content management and data entry through relevant software eliminating the chance of mistakes
- Preparation, maintenance, and reporting of supplier and customer content
- Building, cleansing, and interpretation of data regarding market, orders, and sales
- Regular updating of data, enhanced description, specification coding and other real-time support functions