When a customer makes an order in your online store, whoever is in charge of your inventory needs to select the right products and ship them to a high place. This is an easy process, and it’s also easy to keep track of the orders, especially for when your business is starting, and you only receive a few orders a day.
However, this process will become challenging, and you may encounter some issues when your business will start to grow. It means more products will be added in your inventory, your supply chain will expand, and the number of customers you cater to will increase.
These issues can be addressed when you use an order management system. It helps you remove obstacles as your eCommerce starts to grow.
What is order management?
Order management is the process of receiving, tracking and delivering orders to your customers. It begins when an order is made, and it ends when the custom receives what they order.
Having this process automated with an order management systems can help you make the process more efficient. Otherwise, you will be overwhelmed and find it difficult to handle, especially if orders are kept on coming.
Here are some reasons why order management is good for your business.
Avoid overstocking and understocking.
When you overstock, you have products in your warehouse collecting dust before they hopefully are ordered someday. On the other hand, when you understock, you may face the risk of having your customers wait for long or lose the entire sale due to cancellation.
With an order management system, you will have an enhanced oversight on your inventory. You will see how orders are coming and how they filled and shipped correctly. You can also see whether you need to prepare for an increase or decrease in sales.
Minimise mistakes in fulfilling orders
Imagine having to fulfil orders from different channels while you also have to cater to lots of customer’s inquiries and questions and follow-ups. When dealing with a high volume of orders, chances are you are going to make mistakes. You may ship worn items to your customers or ship their orders on the wrong address.
When there is order management, you are ensured that your processes are in place. It can be more automated and synchronised, which can result in a few errors. Mistakes are inevitable, but with order management, your mistakes may not result in damaging your business’s reputation.
Real-time status for orders
Notional does an order management system to provide real-time status on your inventory, but it can also provide real-time status of all the current orders made by customers. You can have the most updated information of the order and have this forwarded to your customers. Instead of customers waiting for the package to arrive, they can check their orders on your system, or they will receive notifications about the status of their orders and when to expect the shipment.
Less wasted time
Doing almost everything when you are just starting out is okay and understandable. However, it won’t make sense doing all the processes when your business begins to grow. Instead of having to attend to your customer’s order, tracking and fulfilment, your time can be more useful if you spend it growing your business and making strategic activities like developing a product or marketing your brand.
Having an order management system can save you lots of time. You and your employees can spend more time selling your products and growing your business rather than attending to your customer’s every order.
In any business, especially for those who are looking for consistent growth, every penny counts. Coming with cost-effective techniques without compromising quality can be a useful tool in making your business a success.
Undoubtedly, order management is an area in your business where you can save a large amount of money. With this system, your order accuracy will increase; thus, there will be a reduction in cost associated with the wrong shipments, late orders, refunds and cancellations. The cost-effectiveness can also extend to your inventory and labour expenses.
An order management system can give your business lots of benefits. However, keeping up with the growth and increasing demand can be challenging. This is why you need a reliable order management system that best fits your needs based on your business goals.