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Are you barely treading water in an ocean of sales order paperwork? Have you ever had a sudden stock shortage? Have you ever delivered a package to the incorrect address? A lack of automation and integration in your sales order processing is most likely to blame for these business blunders.
In the past, traditional sales order processing involved multiple parties and was fraught with human error, not to mention mountains of paperwork. Fortunately, modern sales order processing software means businesses can now fully automate and integrate their sales and inventory data. As a result, finding the best solution for your organisation can make your sales order processing a breeze, as well as boost productivity and efficiency.
So what is sales order processing? And why is important?
What is sales order processing?
Also known as order management, sales order processing is the necessary flow of steps taken from the time a customer makes a purchase to when that purchase is delivered. Sales order processing describes each phase of this timeline, or the order fulfilment process, and includes any financial transactions, order picking and logistics.
Sale order processing is often portrayed using a flow chart. By ensuring each phase is running as smoothly and as efficiently as possible, a business can boost customer satisfaction through a lower risk of errors or mistakes, faster delivery times and a decrease in overhead costs.
The steps of sales order processing usually entail:
- Receiving the order – The customer makes an order through your website, e-commerce store or at a brick-and-mortar location.
- Generate a sales order – A sales order is generated which is then passed on to the appropriate members of your team
- Invoicing – The customer is notified of their order and sent an invoice with an expected delivery timeframe.
- Picking, sorting and packing – Your warehouse staff receive notice of the order, and proceed to pick, sort and pack the product/s for delivery.
- Shipping – The order is shipped to your customer and delivered.
The benefits of optimising your sales ordering processes
Optimising your sales ordering processes can result in a number of benefits for large and small businesses alike.
Benefits include…
Fewer human errors
Automating sales ordering processes is especially useful for reducing the likelihood of human error, in practices such as data entry where a typo or misplaced decimal point could occur. It also reduces the possibility of the wrong items being put in the incorrect shipment or even missed entirely.
More efficient order fulfilment
Implementing automated sales ordering processes can also create a digital environment where more efficient order fulfilment can take place. Essentially, this means businesses are able to pick, pack and ship orders more quickly, which can cut costs as well as improve customer satisfaction.
Lower overhead costs
As previously mentioned, automated sales order processing means more efficient order fulfilment. With less chance of human error, sales order processing can result in fewer returns and reshipments. Perhaps most pertinent, finding the right solution for your business can turn one-time visitors into return customers and boost your reputation.
Complexity is easier to manage
With more streamlined, automated order processing, particularly processes that are digital, complex orders such as partial shipments. This is due to the fact that invoicing, data entry and order administration tasks can be carried out on behalf of you and your team, which reduces the risk of human error and boosts productivity within your day-to-day operations. This could include document processing automation, purchase order automation and other innovative software assets that can make your life easier. Essentially, automating your sales order processing means your staff can get on with their own tasks, while your sales order processing software can handle other, more tricky jobs.
Why is sales order processing important?
Perhaps most pertinent, sales order processing is important in maintaining the reputation of your business. This is because when a customer makes a purchase or places an order through your e-commerce or brick-and-mortar store, your business is obligated to fulfil that order as efficiently as possible. Without the proper practices in place, your business runs the risk of extended processing time or human error which can result in late delivery or your customer receiving the incorrect product, which can cause undue harm to the reputation of your organisation and impact your overall profits.
Sales order processing also plays an important role in the inventory of a business. Sales order processing software allows your purchasing department to keep a track of what’s in stock, what isn’t and what’s on backorder. It also allows them to make informed forecasts about your inventory and make appropriate purchases from your wholesale distributors.
Similarly, processes within automated sales order software such as document processing automation, purchase order automation and sales order automation can also play a crucial role for personnel working within your billing and accounts department. Sales order processing software can automate the creation and distribution of invoices, which can boost efficiency and productivity as well as reduce human error.
Final thoughts
So why is sales order processing important?
If your business is struggling to stay afloat in a sea of sales order paperwork, experiencing unexpected stock shortages or ever shipped a product to the wrong address, you’re most likely suffering from a lack of automation and integration in your sales order processing.
Previously, traditional sales order processing involved numerous hands and were rife with human error – not to mention it required copious amounts of paperwork. Fortunately, businesses can now fully automate and integrate their sales and inventory data as a result of modern sales order processing software.
Sales order processing, also referred to as order management, is the series of actions that must be completed from the moment a customer makes a purchase until it is delivered. Each stage of this timeline contributes to the order fulfilment process and includes any financial transactions and order picking as well as logistics and delivery.
Finding the best solution for your business can simplify the ordering process, increase productivity within your own team and ultimately boost customer satisfaction. As a result, sales order processing is a hugely important component of maintaining your organisation’s reputation.
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