Order management refers to the method of receiving, tracking, and fulfilling client orders. The Order management process flow chart begins once an order is placed, and ends when the customer receives their package.
Once scaling your business, it’s necessary to automatise and contour this process otherwise. You’ll eventually be overcome by the sheer range of orders returning in.
Order process is the process or advancement from order placement to delivery. This can be a key component of retail order fulfilment, wherever dependability and accuracy cause customer satisfaction.
Steps such as processing embody picking, sorting, chase and shipping. Order processes can vary from manual processes (handwritten on an order log sheet) to extremely technological and data-driven processes (through on-line orders order processing software) betting on the operation.
What is an order management system?
AN order management system provides you a one-stop-shop to look at and manage all client orders in one place.
Some systems supply a two-way synchronisation that creates order info that is passed between your order management system and your ecommerce platform, providing you with visibility into the whole process. This may facilitate the flow of sales order info to each piece of the retail offer chain.
Meaning you’ll be able to track the whole journey of a client order, from the “Buy” button to delivery and even returns.
In short, an order management system organizes and automates everything that must happen to induce customers what they ordered on time and in smart condition.
What is order processing?
Order processing is that the process or progress from order placement to delivery. This is often a key component of retail order fulfillment, wherever dependableness and accuracy result in client satisfaction.
Steps such as processing embody picking, sorting, following and shipping. Order processing can vary from manual processes (handwritten on an order log sheet) to extremely technological and data-driven processes (through on-line orders and automatic order processing software) counting on the operation.
Why your business wants correct order management
Taking the time to implement order management processes and systems can look like further bureaucratic procedure once you’re bootstrapping business processes with a little team.
However as you grow your business, you will fall behind making an attempt to meet each single order on your own. Here are simply a couple of of the issues solved by correct order management.
1. Keep from overstocking and under-stocking:
A high inventory turnover quantitative relation is a decent issue as long as you’re not over or under-stocking.
Buy in and you’re sinking money you can’t afford on unused merchandise grouping mud before they hopefully sell one day.
Under-stock and you risk creating customers’ wait, rending shipments. Losing simple sales entirely from customers who were able to purchase currently. However, will most likely find yourself giving that money to your challenger instead.
ShipBob’s order and inventory management software package permits merchants to obviously see seasonal trends in inventory levels in order that they grasp whether or not to organize for a decline or a rise in sales.
Online attire company FLEO Shorts, for instance, can send new inventory to ShipBob weekly:
“It’s very easy to make new SKUs and stock existing ones using Ship Bob’s technology, which is particularly necessary with high inventory turnover”, confirms co-founder Carl Protsch.
This helps make sure that businesses like FLEO don’t run out of products, keeping the business profitable and customers happy.
2. Fewer mistakes on fulfilling orders:
It’s simple to avoid fulfilment mistakes once you’re solely shipping a couple of orders a day. You just choose the proper product, package it well, print the shipping label, and send it off.
currently imagine that your business takes off. Orders are returning 24/7 from everywhere the globe through multiple channels. Meanwhile, customers are bombarding you with messages inquiring concerning their order status, querulous about delivery times, and soliciting for refunds.
It’s only human to start out creating mistakes once you are managing this high volume of orders and level of complexity. Wrong products, wrong addresses, delayed shipments. These will hurt the name of a growing ecommerce business.
That’s why it’s therefore necessary to have an efficient order management system in place. A lot of automation and synchrony suggests that less human error. Things should still fail once during a while, that’s inevitable however you’ll be ready to scale your business while not turning into overwhelmed.
3. Reliable info that helps you create data-driven choices
It’s arduous to create a sense of knowledge once it’s scattered across multiple platforms. Order management systems permit you to visualize all sales order information in one place, creating it easier to research the offered info and create data-driven decisions.
For example, ShipBob’s order management process flow chart system shows you ways your customers’ orders are distributed geographically. You’ll be able to use that information to separate your inventory across the fulfillment centers nearest to the bulk of your customers. Storing your inventory nearer to wherever your customers live could be a good way to cut back shipping prices and increase delivery speed.
This might make it easier for sales order information to flow to each link in the retail supply chain. Order management systems additionally make it easier to spot period issues as a result you will see the full method from a birds’ eye read rather than as separate fragments.
The power to create data-driven choices can prevent cash within the long run. Once order volume is high, fixing even the tiniest unskillfulness can offer chain optimizations and have a major impact on your bottom line.
4. Less wasted time
If you run an ecommerce business, likelihood is that you’re a creator, entrepreneur or visionary. Typically all three.
However, you recognize what most likely doesn’t seem thereon list? Ecommerce fulfilment expert and truly so.
believe it: Is managing inventory, packaging products, shipping orders, and handling refunds really the best use of your time? It’s okay to try and do everything yourself once you’re simply beginning out. However, there comes some extent when it merely doesn’t be anymore.