Order management is a crucial business operation process involving receiving, tracking, and fulfilling customer orders. It starts when an order is placed and continues until the customer gets the package. Businesses often rely on an order processing management system to efficiently handle this process. This system is a centralized hub where all customer orders can be viewed and managed in one place.
It allows businesses to track the entire journey of a customer order, from the initial purchase to the final delivery, and even handles returns if necessary. An order management system automates and organizes all the required steps to ensure customers receive their orders on time and in excellent condition. By implementing effective order processing management practices, businesses can provide a seamless and satisfactory customer experience.
Six Essential Steps of Order Management
1. Placing an Order
Step one begins when a customer places an order. Orders can come from various locations and channels, making it necessary to streamline the process on the backend. Businesses often utilize a multi-channel order processing management or omnichannel fulfillment tool to achieve this. This tool automatically transfers relevant information from the e-commerce store to the order processing management system.
2. Fulfillment Center Receives the Order
Once you place an order, it transfers the relevant information to the fulfillment center. It is where the processing of the order begins. The fulfillment center becomes responsible for managing the order and ensuring its timely fulfillment.
3. Picking the Order
Picking refers to the order processing management step of following a picking list or order details to locate and retrieve the products from the available inventory. Delivery personnel then deliver these products to a designated packing station. Many fulfillment centers employ dedicated warehouse picking teams or individuals, known as pickers, who specialize in efficiently picking and gathering the required items for each order.
4. Packaging the Order
The order goes through the packaging process. Once the order reaches the packaging area, packaging personnel carefully package the order to minimize the dimensional weight while still providing adequate protection to the products. Packaging is crucial in ensuring the items arrive in good condition and reduces the risk of damage during transportation.
5. Packaging the Order
The packaged order is ready for shipment. After adequately packaging the items, shipping personnel ships them to the customer. Carriers typically pick up the orders directly from the warehouse of the third-party logistics (3PL) provider. Each order is assigned a unique tracking number. Once the customer receives the tracking number, they can track the order. This tracking number allows customers to monitor the status of their orders at every stage of the delivery process, providing them with visibility and peace of mind.
6. Delivery to the Customer
Delivery to the end customer is the last step. The final stage of the order processing management cycle is when the customer receives the ordered items. However, it's essential to assess whether the customer received delivery of the correct items within the promised timeframe.
If the order processing management has been well-executed and efficient throughout the entire cycle, the likelihood of accurate and timely deliveries significantly increases. Ensuring that the correct items are delivered promptly contributes to customer satisfaction and helps to build trust and loyalty.
Benefits of Order Processing Management
Increases Customer Satisfaction
Staying in constant contact with loyal customers is crucial as it allows businesses to understand why customers keep returning to their online stores. This communication helps identify factors that contribute to customer loyalty and enables enterprises to enhance the overall lifetime value of each customer.
Additionally, measuring and analyzing the order management process is vital. It provides a holistic view of the e-commerce logistics process by tracking key performance indicators (KPIs). By monitoring these strategic KPIs, businesses can identify areas for improvement, increase customer satisfaction, and reduce costs, all while scaling their operations.
Avoid Overstocking and Understocking
Attempting to fulfill every single order as your business grows can be overwhelming and may lead to falling behind. Accurate order processing management addresses this challenge by solving problems such as overstocking and understocking. Overstocking ties up cash and incurs storage costs while understocking may result in customer wait times, lost sales or customers turning to competitors.
An order management system ensures businesses maintain optimal inventory levels, preventing stockouts and excess inventory. It keeps the business profitable and customers satisfied.
Reduces Human Error with Large Volumes
Accurate order management helps minimize mistakes in fulfilling orders. As an e-commerce business expands, the volume of orders received increases, potentially leading to human errors. Implementing a streamlined order management system reduces human error through automation and synchronization.
Simplifies Order Analytics
It provides reliable information for data-driven decision-making, essential when dealing with large volumes of data scattered across multiple platforms. Order processing management systems consolidate sales order data in one place, simplifying analysis and facilitating informed decision-making.
Reduces Wastage of Time
By optimizing order processing management, businesses can minimize wasted time and focus on more strategic activities like product development and brand-building. A well-implemented order management system streamlines processes, reduces errors, and improves efficiency. It ensures reliable and timely order fulfillment, enhancing customer satisfaction and driving business success.
Outsourcing Order Processing Management
You can streamline your order management process by outsourcing fulfillment to a reliable eCommerce solution like WOW. You can connect your store, import product information, and sync inventory seamlessly. Every order is automatically assigned to the most strategic fulfillment center based on inventory and location, while you can track progress and provide customers with order tracking numbers. Discover how a partnership with an efficient order management system can help grow your business.
Conclusion
Order processing management is critical to receiving, tracking, and fulfilling customer orders. By utilizing an order management system, businesses can streamline operations, automate processes, and enhance the customer experience. The six steps of the order management cycle, from order placement to item delivery, play a crucial role in achieving this.
If you seek reliable and efficient order maintenance services, your search ends with WOW. With their expertise in order management, WOW offers top-notch solutions to streamline your operations and ensure a seamless customer experience. Trust WOW to handle your order maintenance needs and enjoy the benefits of their exceptional services.
This blog is inspired by the video, ‘Order Management Explained’ by ‘ShipBob.’
