Order processing is an exciting part of supply chain management that, if done right, can save you considerable time and money and positively impact sales. We’ll look at how to optimize order processing and accelerate business in a fast-paced and competitive marketplace.
Streamline your order processing workflows, eliminate manual errors, and ensure faster and more accurate order fulfillment.
Customer order processing, first and foremost, is a document-intensive task. And when you receive a couple of 100 orders every week or month, there is a need to have in place an efficient order processing system that hastens the workflow from reception to final delivery.
Why, you ask? Simply because the buyer dictates today’s market. The buyer decides a company’s longevity, so first impressions are essential. When you delay order delivery, there is a good chance your buyer and the potential long-term customer may take his business elsewhere.
If product quality is one factor, service delivery and speed are other critical factors determining customer engagement in any industry segment. Especially for small and mid-sized businesses with limited capital and personnel, the need to constantly be on top of order management and deliver on time is constant and overwhelming.
Even with an organized, skilled staff in place, there is always scope for human error to creep in and delay the process.
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Which Industries Struggle with Order Processing the Most
While order processing efficiency can vary across industries, some industries face more challenges than others. Here are a few industries that may face difficulties in order processing:
It’s important to note that these challenges can be mitigated with the right order processing systems, automation tools, and streamlined processes tailored to the specific needs of each industry.
Manual order processing is inefficient. And more importantly, when your business starts to grow, you must have robust management that can hasten processing as the number of orders grows.
For small and mid-sized businesses, this means investing in more manpower and capital, which is difficult. Growing companies struggle to juggle resources, capital, and any cash they have reserved to get the right management solutions and tools to accelerate business.
Also, if you’re drowning in paperwork, constantly trying to match purchase orders to inventory, with little time for important stuff like order validation and verification, you are bound to make a mistake somewhere along the process.
The trouble with mission-critical functions like order processing is that a mistake along any part of the processing chain can reverberate and derail the entire process, forcing companies to resume processing for that particular order all over again.
This can prove very costly for companies having just the right amount of resources to get work done. Other typical challenges of manual sales order and purchase order processing are as follows.
With manual order processing, it is difficult to find out the status of an order unless you are diligently in contact with the concerned staff to push the process forward.
With manual effort, there are only so many checks you can perform with regard to order. For one, confirming the right shipping address for a particular order is time-consuming, especially when dealing with hundreds of orders monthly.
How would you know if you’re dealing with a returning customer? Suppose you do not maintain a steady database of customers. In that case, it is difficult to access and retrieve information instantly, causing delays and even a failed chance at impressing the buyer a second time.
Because a purchase order represents buyer intent and engagement with your company, it is crucial that you have in place a purchase order processing system that enables best-in-class customer engagement and selling. Intelligent Process Automation (IPA) will help with that.
Let go of manual order processing.
With Artsyl's intelligent AP/AR document automation solutions, you can automate repetitive tasks, reduce manual data entry, and free up valuable resources to focus on more strategic activities.
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Order processing problems can result in several negative consequences for businesses. Some of the expected consequences include:
To mitigate these consequences, businesses should invest in robust order processing systems, streamline processes, implement automation tools, and prioritize accuracy and speed in fulfilling customer orders.
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When it comes to improving order processing, there are several key areas that businesses should focus on. These areas include:
By focusing on these critical areas, businesses can streamline their order processing operations, enhance customer satisfaction, and improve efficiency and profitability.
Intelligent Automation of document-based processes streamlines order processing from the time you receive an order to final order fulfillment and receivables management. The ‘intelligence’ in an IPA platform replicates human actions to process sales and purchase orders and purchase orders in the hundreds and thousands. With little to no manual intervention, you are assured of accurate and instant data entry, validation, verification, approval, and export of purchase orders to your ERP system.
For every purchase order a company receives, the self-learning IPA solution OrderAction taps into its extensive database of built-in business logic to process the order. OrderAction recognizes the format and field placement containing order information on a typical sales and purchase order form and processes it based on pre-built logic — involves capturing essential line-item and header-footer details from the order and assigning it a built-in workflow based on business rules and requirements, including routing it for automatic validation for inventory check, customer details, etc. and verification.
With every new type of data that the Intelligent process automation solution OrderAction encounters, it uses machine learning to learn user actions performed to capture details from the order form the first time. OrderAction retrieves this knowledge the next time it encounters a similarly formatted order form and performs data capture and processing as a user would.
IPA’s self-learning technology helps reduce manual intervention progressively with every new order form, adding to the extensive database of built-in logic as well as ‘learned’ configuration — intelligent automation extends robotic process automation technology to unfamiliar, new documents, so companies will not have to worry about creating a new workflow for every new purchase order format. This enables order processing software to work with and execute vast and diverse purchase order forms.
Unattended sales order and purchase order processing saves companies significant time and costs, as this manufacturer will tell you, who saw a 66% improvement in order processing within months of deploying the technology.
Want to improve your order processing for better sales and cash flows? Talk to Artsyl.
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Improving order processing involves implementing effective strategies and utilizing efficient systems. Here are some frequently asked questions about improving order processing:
Automation can streamline order processing by reducing manual errors, improving speed and efficiency, and enhancing accuracy. Automated systems can handle tasks such as order entry, inventory updates, and order status notifications.
Effective inventory management ensures that products are available for order fulfillment. It involves accurately tracking inventory levels, timely replenishment, and real-time visibility into stock availability.
Clear and timely communication between different departments involved in order processing is crucial. Utilizing centralized communication tools, implementing order management systems, and establishing effective communication channels can improve coordination and reduce errors.
Integration with other business systems, such as inventory management, customer relationship management (CRM), and accounting software, allows for seamless data flow, improved order accuracy, and better visibility into customer information and order history.
Providing customers real-time order tracking information through online portals or automated notifications can enhance customer satisfaction. Internally, implementing order tracking systems can improve visibility, allowing businesses to manage order status and address any issues promptly and proactively.
Best practices include standardizing order processing workflows, implementing quality control measures, training employees, utilizing technology solutions, conducting regular audits, and continuously analyzing and optimizing processes.