Ever wondered what happens after a customer places an order online? The order management cycle is the behind-the-scenes process that ensures purchases get from a store’s inventory to the customer’s doorstep.
It’s essentially the journey the purchase takes from clicking “buy” to ending up in your buyer’s hands.
Let’s break down the key stages and some tips for businesses to optimize their order management system.
Why is order management important?
An efficient order management system keeps things running smoothly for your business and makes happy customers. The top benefits include:
- Avoiding or minimizing the chance of mistakes, like wrong items being shipped or delays.
- Boosting customer satisfaction through clear communication and fast delivery.
- Ensuring accurate stock levels that prevent overselling and stockouts.
- Creating streamlined workflows can save time and money.
The order management journey
Here’s a breakdown of what order management involves:
- Order placement. The customer makes their selection and places the order. This can happen through various channels like a website, mobile app, or even in-store.
- Order processing. The order is verified for accuracy, payment is authorized, and inventory availability is confirmed.
- Fulfillment. The order is picked, packed, and prepared for shipment. This involves warehouse staff or automated systems. Learn more about the order fulfillment process.
- Shipping. The order is shipped using a chosen carrier and a tracking number is provided.
- Delivery. The order arrives at the customer’s designated location.
- Returns (optional). If necessary, the customer initiates a return, and the business processes the return and refund.
Order management headaches to watch out for
Even the best order management cycle can run into roadblocks. The way to manage and beat them is first, identifying the signs and causes. Here are some common pain points businesses face:
Multiple sales channels
Managing orders from multiple platforms (website, app, marketplaces, social media) can be messy without a centralized system. Also, tracking order status across different stages can be difficult without proper integration.
Inventory invisibility
It refers to the lack of awareness or accurate data on the actual amount and location of your stock. It’s essentially having “blind spots” in your inventory management system.
Picking and packing errors
Picking and packing errors occur during the fulfillment process, specifically in the stages where items are selected (picking) and placed in the order package (packing). These errors can lead to a frustrating experience for customers and can negatively impact your business.
Shipping woes
Choosing the right delivery partner, negotiating the right rates, and handling long-distance or interisland shipping can become complex as your business grows.
Returns chaos
Inefficient return processing refers to a situation where a business’s system for handling returned items is slow, burdensome or lacks clear communication, leading to frustration for both the customer and the company.
Identifying these pain points will help you implement solutions like order management systems (OMS), or finding a fulfillment provider to outsource your inventory management and order fulfillment. Outsourcing will give you savings and more time to focus on your business competencies.
Ninja Fulfillment: Experience smooth order management cycle
Outsource your warehousing, inventory management and order fulfillment to Ninja Fulfillment and let our expert team take away the complex logistics processes off your hands.
Managing a business is hard enough. Focus more on growing your enterprise and scale up faster without increasing your costs, as Ninja Fulfillment provides:
- Pay only for the space you use and orders you want us to process
- Live view of your inventory
- Live update of your order’s status
- Connecting seamlessly to your ecommerce, Lazada, Shopify stores
- Same-day handover to the courier
- Free returns to fulfillment warehouse
Our automated inventory system allows you to maintain accurate stock levels to avoid stockouts and order fulfillment delays.
More importantly, you’ll have a Dedicated Account Manager who will assist you with all your fulfillment and shipping needs.
Want to learn more about Ninja Fulfillment?
Visit our website for more information
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