What is order management software ?
Order management software is a computer program that can help business owners manage their orders. Business owners create an order by entering their desired product information, quantities, and price. The order can then be sent to sales representatives and customers via email. These programs also include reports of the most popular products so business owners know which products to prioritize and which ones are selling well. By using order management software, business owners can keep track of all transactions, including inventory levels and sales performance. Order management software is a beneficial tool for any business owner who needs to maintain accurate records and make better decisions with their data.
5 Best Order Management Software That Lower Costs and Raise Profits
What is an Order Management System?
Inventory management is an important part of running a successful restaurant. One part of the process is order management. The order management process can be described as taking stock of inventory levels, deciding what needs to be ordered, placing orders with vendors (purchase order) and finally, tracking order fulfilment.
An order management software can be defined as an automated management system that will manage the entire ordering processfrom placing an order for inventory, to its delivery. An automated, cloud based order management system will help you improve productivity, place orders faster and more efficiently.
Drawbacks of Manual Order Management Systems
There are many restaurants that are still using manual methods for placing their inventory orders with vendors. But placing orders manually is a tedious and time consuming process. We have listed some drawbacks of using manual order management systems below -
Repetitive and time consuming-
You have to repeat tasks, like preparing a purchase order, approving procurement documents, and making phone calls with vendors every time you have to place an order. Going over the same process multiple times whenever you need to order inventory consumes a lot of time.
Delay in ordering-
If you need to place an urgent order, it is not possible to use the manual order management process due to the time required to complete the purchase order process.
Cost and reporting difficulties-
The manual order management process is costly as it require multiple resources every time you have to place an order. As multiple resources work to process an order, they also produce reports of all processes, making it a huge challenge to collate all the data created for the order and keeping track of all the reports being generated.
Improper communication and errors-
Multiple processes and different employees working simultaneously on an order management process can end up with miscommunicated responsibilities and confused order tracking. Any error in the process will end up with employees having to start all over again as it is difficult to pinpoint mistakes when they occur.
Traditional order management systems don't allow for seamless integration of new technologies.
This article lines up 5 of the best order management software available that work seamlessly with new restaurant tech to reduce costs and raise profits.
5 Benefits of an Automated Order Management Solution
The best way forward is to opt for an automated order management solution. We list here the benefits you can expect if you move from a manual management system to an automated management solution.
Real time view of money spent
Once you enter the inventory order in the order management system, it will show you the real time cost of your stocks in order to help you manage budgets in real time and ensure that cash flow is properly controlled. Since the orders are directly entered into the order management software, it makes it easy to track orders from anywhere.
Management software requires an employee to simply enter the inventory order into the system. It's a breeze to manage orders for inventory this way, especially since employees don't have to be trained on how to use the order management system. The system walks the employee through the software order management process, enabling them to input orders effortlessly.
The automated order management system ensures that all purchase orders are in one place, but can be accessed from anywhere. The centralized process makes it easy to track and fulfill orders.
Saves time and lessens errors
Any automated system will save time as most of the process is completed by the management system. Management software also reduces mistakes caused by human error, like incorrectly ordered items or inaccurate inventory recorded.
A management software process will issue alerts when inventory levels reach a preset mark and thus offer accurate inventory visibility. This ensures that the order processing is carried out in an error-free and efficient manner.
How Does an Order Management System Work?
Inventory control is essential to ensure that a restaurant works smoothly and efficiently. Automating inventory order management will ensure that you can place purchase orders and carry out order processing smoothly in a time bound manner. An automated Inventory Management and order management system ensures that there is little room for error. In an automated management process the information about vendor, price, time, reason for spending is digital by default and done at one place, so it can be accessed anytime from anywhere.
Here is how a process for automated order management works-
1. A staff member or restaurant manager takes stock and orders inventory by creating a digital purchase order.
2. They identify a vendor who can fulfil orders they need and fill in details. If it is a repeat order, the vendor details are already in the system.
3. The system then notifies the manager for approval. This can be given from anywhere.
4. The system sends the purchase order to the vendor.
5. The vendor will deliver the goods as requested and forward the invoice for the delivery to the ordering system.
6. The system matches the invoice and purchase order and ensures everything has been delivered as expected.
7. After approval, payment is scheduled automatically and the invoice and purchase order are filed in the system to be processed via the accounting tools.
How Can Order Management Software Reduce Costs?
After discussing benefits of investing in an automated order management system, let's now look at how a restaurant can save costs by opting for an order management software.
Supplier contracts and discounts
A good order management software stores details of previous vendor contracts and discounts offered by each of them. You can easily renegotiate contract terms with vendors to procure better discounts for bulk buying or early payment. You can also combine deliveries to reduce delivery costs.
Controlling purchases and spends
An order management software lets you access historical data where you can check inventory usage. Thus you can see how stocks are moving and cut down on excess orders. It also helps curb unnecessary spends, such as buying from unapproved vendors or purchasing expensive raw material.
An automated order management system helps you identify vendors who can deliver quality goods at optimum prices. You can review your purchase orders to make sure you're buying your needs, not your wants. It helps you identify and set parameters for future purchases.
A good order management software can help you identify which vendor suits your requirements so you can put the best order process in place. You can also evaluate your supply chain management process and review vendors' performance. You can thus build relations with vendors and save money by rejecting non-performing vendors. You can also save time and money by allowing vendors to manage their own accounts.
Optimize warehouse management
By placing inventory orders only when required, you can also improve your warehouse management, as you will identify the amount of stock required for each product and also where each product is placed.
Order management process helps a restaurant collect data. This can help improve the forecast for the procurement of fresh inventory, thereby curbing unnecessary spends, while also improving your understanding of customer experience and ensuring customer satisfaction.
Managing orders can be a pain. It's hard to track multiple orders from multiple vendors and keep costs low at the same time.
It’s time to automate your ordering. This article brings you the best order management software around to help you save time and money.
5 Best Order Management Software for 2022
After discussing the benefits and cost-saving features of an order management system, let us now check out some of the top products in the market.
The Zip Ordering order management app allows you to order products and supplies directly from vendors. It connects you with suppliers and imports their product catalogs and reduces error by creating custom order guides. It also provides product totals and cost analytics for your orders.
xtraCHEF is a cloud based solution that automates tasks such as invoice resolution, cost analysis, data entry, purchase orders and vendor statement reconciliation. It can be integrated with other restaurant management or accounting systems like the Quickbooks online system and others. It can give you real time data about cost trends, price fluctuations, budgets and more.
APICBASE Food Management is a cloud platform that manages back-of-house operations. It allows you to record stock counts and automatically creates order suggestions based on your stock. It also helps you get automated order lists based on your recipes or bills of material, and send orders directly to your suppliers.
BlueCart is an order management platform that helps you streamline the procurement process. It can be used to manage orders, analyze purchasing trends and secure new buyers. You can use the inventory tracking tool to determine which items need to be replenished and order it accordingly.
LINGA is cloud based solution that covers order management, inventory management, and payment processing. This system can also work in the offline mode and offers optional tools that can automatically adjust item prices.
How to Select the Right Order Management Software for a Restaurant
It's time now to select an order management system that will suit your needs and give you the order management solution you need to leverage your business. Consider these points before you put your money down on an order management system.
1. What do you require?
Before investing in an order management system, make a checklist of what you require and the challenges you have faced while placing inventory orders in the past.
2. How much are you willing to pay?
The price of a management system will depend on what you require. Check your budget and see if you have the funds to invest in a top-of-the-line software, a mid-range one, or a starter kit. The features you receive will vary accordingly.
3. Customization and integration
If you have specific needs that are not covered in the order management software solutions available in the market, ask the vendor if the software can be customized and integrated with other systems you already have.
4. Complexity of software and flexibility
While opting for a software order solution ensure that it is easy to operate. If it takes your staff hours to learn how to manage the software, then it's not the software for you. Look for a system that offers easy management solutions. Also check if the management software can be accessed on multiple devices and whether it's cloud based or on site.
5. Tech support
Make sure that the order management system you opt for comes with tech support from the vendorfrom staff training to future assistance and warranties.
Ordering is a big part of running a restaurant and a big part of operational costs.
Save time, money, and resources with the best order management software of 2022. This article lines them up.