How to Retool Your Order Management Process for Maximum Savings
What is Order Management?
Order management is the process of maintaining the supply chain of a business, and expediting its orders for timely delivery. It involves the end-to-end management of an orderfrom picking, packing to shipping, and feedback. Good order management is meant to increase business efficiency, while reducing costs.
Order management software is an automation tool that takes care of the customer's order fulfilment process. It helps businesses retain loyal customers by providing them with better customer satisfaction. System oms can identify best-selling items in a particular category and spot slow-movers. When you know your customer's preferences, you can make appropriate changes in your inventory.
Restaurant order management is a cloud-based software. When integrated with a Point of Sale (POS), it can generate evolved reports of orders and invoices in real time from multiple touch-points. These include on-premise, third party aggregators, and the restaurant's own mobile app and website.
Drawbacks of Old School Order Management Systems
Are your customers dissatisfied with your product quality and the delays that occur in shipping? Are you disappointed that you're unable to meet your business expectations and set profit margins for 2022?
Here are some of the pain points companies face when they lack the necessary infrastructure or are not equipped with new-age management processes-
1. Pricing fluctuation with vendors- When there's no surveillance or tracking system in place, you will never know when your vendor increases the price of everyday essentials.
2. Poor communication- Companies that deal in the packing shipping order process often find that they're incapable of tracking inventory when it's in transit. There is poor communication between third party logistics providers and internal inventory managers, leading to human error.
3. Order delays- The chances of order delays and displacement are common when you have no order tracking software in place. The order placed by a customer could take longer than expected to be delivered and the excitement of receiving their order changes into a nightmare, turning the customer experience into a customer quarrel. This way businesses lose loyal customers and don't grow.
4. Refunds take longer than usual- Cancelling orders can be a tricky and time-consuming process, leaving= customers frustrated. Return pickups take longer as the escalation process leads to a blame-game between in-house managers and third party delivery supervisors.
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Benefits of Automated Order Management
Order management systems help enterprises closely examine their supply chain and enable them to find snags between the inventory management and actual time taken for order fulfilment.
These are the additional benefits of order management software-
1. Organized, leaner inventory- Order management gives you more visibility into sales through customer tracking. It gives you an idea of what sells and what doesn't, leading companies to optimize their inventory levels accordingly. Data provided by OMS on customer insights help identify product popularity, trends in the market, products that do not generate sales and have become sitting inventory, and so on. This leads to wiser ordering with vendors, resulting in a leaner inventory with reduced overstocking, and gradual business growth.
2. Unified data across channels- The sales and fulfilment process gets expedited as the same information can be accessed by different teams through an app on multiple mobile devices and laptops. This way every department can update their finished tasks. This boosts better communication and less data entry work by the employees. This in turns means fewer errors. It also builds trust with third party delivery suppliers that handle product delivery.
3. Automate vendor ordering- You can place an order by selecting a vendor and filling the virtual cart with what's needed. The Restaurant Management will automatically send an email to the vendor alerting him or her about the order. Price trackers can view your order history and make sure you don't spend one cent extra on your orders.
4. Streamlines orders with order schedule- You are frustrated creating the same order inventory week after week for the food item that sells the most. With the order scheduling tool, you can put those items in an order guide and make timely alerts that intuitively re-order your required inventory without any hassle.
5. Better business forecasting- Through order processing software and inventory management systems, a business gains detailed insights into every action related to customers that can help improve purchase management. You can make decisions that maximize profits without compromising on quality.
Historical data keeps pricing in check, so you can spot price hikes. Negotiations can then be initiated with different suppliers for lower prices. This way consumers get the best quality product, and your brand value and reputation become solid.
5 Features of Great Order Management Software
5 features of the order management process that can help manage the supply chain of your business seamlessly across channels-
1. Gathers information across sales channels- The order management system accumulates information from all points of sale, including stores, online sales, third party delivery apps, and call centers. It also includes global order management, where orders are taken from multiple regions in multiple currencies.
2. Upkeep of order sales- With order processing software, employees can access information about a product's availability in real time.
3. Collecting customer data- Managing customer order history helps service reps identify high-value customers. This data also helps create customized ads for digital marketing in order to target loyal customers.
4. Delivering orders with inventory management- Besides providing information on inventory levels, the order management system uses an inventory management algorithm to spot the closest warehouse for shipping products. This helps with cost-cutting, fulfilling order requirements, and achieving on-time delivery of goods.
5. Integration with accounting systems- Order entry flows directly into your accounting software, providing information of received payments of customers and accounts payable to different suppliers and vendors. This eliminates the need to re-enter data into a separate system again and again.
5 Ways Automated Order Management Can Grow a Business
The order management process is a comprehensive function that takes care of orders across channels, business inventory, cost control, and customer satisfaction.
Steps that can streamline a Small Business and scale up its growth include-
1. Giving employees the right training- Any software automation is pointless if your employee does not know how to use the system properly. From providing training to sales reps, inventory handlers, customer care executives, and shipping supervisors, everyone should be well versed with the order management software. This will enable timely data entry across channels.
2. Replenish your inventory- If a customer's wishlist item repeatedly shows 'out of stock', the chances of losing that customer to your competitor run high. Your system should be robust enough to scan through the inventory in seconds and facilitate the purchase with the vendor. Restaurant Management makes just the right quantity of stocks available, without overstocking or understocking a product.
3. Create a user-friendly app/website- A well-designed, easy to navigate website/app allows its user a comfortable shopping experience, where after pressing a few buttons a customer places their order. The product demand directly goes to the sales rep, who initiates procuring, packaging, and shipping of that product from the restaurant or warehouse to the customer's doorstep. A user-friendly interface, combined with automation, offers customers a superior shopping experience.
4. Prevents over- and under-stocking- The system should manage orders in a way that allows inventory to enjoy a high turnover ratio. This means, the inventory is not idle but rotates, avoiding overstocking or under-stocking, and preventing losses.
5. Faster execution of processes- Automation expedites the delivery of goods, which happens on account of the software's ability to improve communication, bring transparency, do away with extra manpower, and fulfil orders speedily.
Food Deliveries Grow at 9%: People today prefer to order food through apps. They choose comfort over in-dining luxury. According to experts, food apps are growing at 9% annually. It's more imperative than ever for restaurants to switch to order management system.
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5 Best Order Management Software Systems of 2022
1. ZipOrdering- This software rules out guesswork and generates accurate reports. ZipOrdering software is free for a single location, after which subscription fees apply. Cloud-based, it can be accessed on mobile devices and laptops via the ZipOrdering app.
2. Quickbooks Commerce- It is an affordable option for small businesses looking to upgrade their ordering process. It updates inventory levels automatically and streamlines with accounting tools. Pricing starts at $20 a month for the first 12 months.
3. xtraCHEF by Toast- An easy-to-use tool that comes with a unique rebate feature. It allows the system to check orders against the manufacturer's rebate on the Buyer's Edge platform. This enable the customer to get the best deal. xtraChef offers a free baseline subscription and any upgrade is custom-quoted.
4. Upserve by Lightspeed- Its advanced technology automates every aspect related to POS and inventory management. Apt for small- to mid-size businesses, its pricing begins at $59 per terminal, and goes up to $360 per terminal.
5. Revel Systems- A pioneer in restaurant technology, Revel is known for its multi-functional inventory software. The terminal pricing starts at $99, while its one-time installation fee is around $674. Revel Systems enters into a minimum 3-year contract with companies and does not provide free subscription plan.
Order Management FAQs
1. Once the order management system (OMS) goes live, how can you measure its performance?
Whether an OMS system is providing you with enough ROI or not can be gauged through some key indicators-
- Is it running smoothly and supporting payment methods within omnichannel?
- Has it been able to improve customer experience by reducing lead time?
- Does it optimize inventory allocation throughout the network?
- It must make sure returns and refunds are easy for customers and payment methods are transparent.
2. What should be the criteria for choosing the right order management process?
Before you go out hunting for the best order management solution out there, you must be clear about the system you want, as there are thousands of order management software solutions available in the market. To choose the right one for your business you must seek software that can gather data on a centralized system to make quicker deliveries and enable better decision making. Real time information keeps you close to your customers and gives you timely alerts to amend mistakes that may have occurred during the packing process or while fulfilling an order.
3. How does the order management process improve customer experience by improving the supply chain?
One of the vital qualities of the order management process is that it reduces error. It provides support to multiple channels so that the same data can be accessed by different departments, leaving no scope for miscommunication. With accurate data, the procuring, packing, fulfilling and shipping process is faster and products reach customers on time. Your OMS system must strive for better customer relations and improved customer experience by monitoring the buying behavior of customers and offering them the best service possible.