Order Management: What It is, Process and Importance
The journey begins when a customer clicks on the “Buy” button. Your eCommerce platform will place new orders. The person who stores your inventory must choose, package and ship the correct products to the right location.
This may seem easy if you are just starting a business. Every day you get a few orders that you can fulfill quickly and cheaply. No worries. You don’t have to worry about potential problems. As your sales grow, your channels expand, your product range grows, and your customer base increases, so do your chances of encountering obstacles.
An order management system is a tool that can help you remove bottlenecks as your eCommerce shop expands. Here’s how.
What is Order Management?
Order management is the process of capturing and tracking customer orders. Order management begins with placing an order and ends when the customer receives their package.
Order management software (OMS), is a computer program that allows order entry and processing across a range of industries. A perfect order is one that meets the customer’s specifications and delivers the goods promised at the time of sale.
Order management is the process of receiving, tracking, and fulfilling consumer orders. The order management process starts with placing an order and ends when the customer receives their package. It is crucial to automate and streamline the order management process when scaling up your business. Otherwise, you will be overwhelmed by the sheer volume of orders.
Order management starts when a customer places an online order and ends when the package is delivered. It allows a company manages the fulfillment process from order collection to inventory visibility and delivery visibility as well as service availability.
The process involved may vary depending on the company’s needs, but the typical order management process involves three steps.
- Placement: The customer places the order using an automated form. The customer submits the information to the sales team who confirms it.
- Fulfillment: An employee at the warehouse confirms shipping information and generates an invoice. The order is then completed — pick, pack and ship.
- Inventory Control: As inventory levels fluctuate according to business demand, they are closely monitored.
Order Management Process
The order management process begins when a customer places an order and pays for it. The order is sent to the store’s inventory, where warehouse workers do the packing, shipping, and picking.
Most order management processes can be broken down into three steps: receiving the customer’s order and fulfilling it. The final step is to handle after-sales. The store will check in with the customer to ensure that they are happy with their purchase. These steps are part of an order management process.
Acceptance of the customer’s order
The first step in the order management process starts when a customer places an online order. Receiving entails receiving payment and accepting the customer’s order. The purchase details are then forwarded to your warehouse so that your staff can start preparing the products for shipment.
Originally published on The Tech Trend