5 Reasons Why You Need an Order Management System
An order management system can shape the way you run your business, increasing your productivity and morale amongst your employees — and so much more. Here’s more on why you should consider making the investment and the benefits of order management systems.
What Is Order Management?
Order management is the process of integrating orders from multiple channels through the use of databases, data collection, processing orders and order fulfillment. The order’s entire lifecycle is carefully analyzed in real time to ensure it’s not lost, delayed or corrupted before it makes it to the customer’s hands. This gives you better insights into and control over how the flow of orders is functioning after a customer puts one in.
If you want your business to continue growing, it’s important to implement order management. It’s easy to become overwhelmed, especially when your business experiences a fast and drastic increase in growth and you have a small staff.
To break it down more specifically, see four specific areas order management systems monitor:
- Order tracking: Missing an order or failing to fulfill it would be a significant setback for your business. Having an order management system gives you peace of mind in knowing all of your orders are being tracked. Especially if you’re selling your product or service through various mediums or channels, having a system that can compile them into one database is incredibly helpful.
- Inventory management: Ensuring your inventory is appropriately stocked is essential in managing your budget. Too much inventory will cost you money on the extra product you bought but can’t sell. Not enough inventory can hurt your reputation in the eyes of your customers, as you’ll constantly be out of stock. Having a clear picture of your supply chain and how many of your customers are converting will help you have enough inventory.
- Order fulfillment: With online shopping, your customers have numerous options as to how and when their product is delivered to them. Having this information stored clearly will limit — and hopefully eliminate — the number of late shipments your customers receive. This is helpful for your warehouse and increases your productivity.
- Reverse logistics: You can’t get away with never receiving a return — they’re inevitable. An online management system can help you incorporate reverse logistics into your workflow seamlessly.
5 Reasons Why Order Management Systems Are Essential
Making the investment in an order management system should be a no-brainer. If you’re not yet convinced, here are five reasons you should be:
Synergy is a cooperative effort that occurs when individuals or groups from diverse backgrounds and motivations work toward a common goal together.
For your business to have synergy, something needs to unite it, like having an order management system that combines everyone’s area of expertise in one program. This makes your entire workflow more efficient and decreases miscommunication and other errors.
With less confusion and areas of miscommunication, your employees will feel more comfortable in their roles, increasing morale and overall productivity further.
2. Flexible Growth
No two order management systems are alike. You have the flexibility to make a program that fits your business needs. As your business grows, that flexibility will grow with it. Creating a growing business comes back to consistently analyzing your processes and determining what’s working and what’s not.
The services integrated into an order management system are rooted in the cloud, so each one can independently grow and mold to the needs of your business at any given time.
3. Customer Experience
For your business to be successful, you need happy customers. Your customers’ experience will improve greatly if you utilize an order management system. The most tangible way their experience will be impacted is their ability to track their order. From the minute they put in their order, they can watch its status, leading to more predictability as to when it’ll arrive.
This also benefits you in the event that there’s an issue with a customer’s order. Whether it’s at the point when they’re placing the order or in the production or shipping process, customers will be able to get in quick contact with customer service agents because of the order management system.
4. Error Reduction
Order management systems are automated, which significantly reduces the amount of human error. Especially when it comes to the organization of the orders your business is receiving, trusting the entire process to humans alone will lead to stress, burnout and mistakes, all of which will negatively impact your productivity.
The simple tasks that often get overlooked by human employees can be given to the automated system. This frees up your employees to devote their time and energy to more valuable tasks that will enhance the quality of your business.
Obtaining accurate data is one of the most valuable things you can do for your business. This is where automation is again an advantage. Humans are unable to collect data as accurately or quickly as an order management system.
This data is only helpful, of course, if you act on it. Analyze the data and determine what it’s saying about your business, then use it to make your workflow better. This is how your company will grow.
The Key Benefits of Order Management Systems
There are several specific benefits of implementing an order management system:
- Improved sales visibility: Being able to clearly see your sales pipeline will help you make decisions regarding what’s working and what isn’t, improving the overall quality and productivity of your business.
- Improved customer relations: The ability your customers have to communicate with you throughout the buying process because of your order management system will improve your relationship with them. This will go beyond their initial purchase and increase the chances they’ll return.
- Fewer delays or backorders: Again, the transparency and automation you’ll have through your order management system will make it far less likely that you’ll encounter delays or backorders.
How Finale Inventory Can Help
At Finale Inventory, we’re prepared to help your business thrive with our comprehensive order management system. With personal customer service, low commitment and no setup or startup costs, you can trust in us to help you enjoy all of the above benefits and take your business to the next level.