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Why are supply chain leaders investing in order management solutions?

November 17, 2022 - Team EdgeVerve


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Conventional order management heavily relies on deploying multiple systems to fulfill the demand and supply needs of the customers. As a result, this creates a potentially chaotic situation for the stakeholders to collaborate seamlessly. This state is further burdened by the ongoing and ever-evolving requirement of dynamic inventory practices, wherein consumers can expect live orders to be fulfilled quickly and systematically.

Also, limited visibility and predictability, along with supply chain silos, are just some of the other challenges encountered with the existing systems. Also, automating processes, controlling stock, boosting customer satisfaction, and driving resource efficiency to mitigate wastage further hinder the flawless running of the supply chains. Moreover, inferior team collaboration, subsequent mismanagement, and ill decision-making lead to poor execution of order fulfillment leading to sluggish deliveries. This is why supply chain leaders are prioritize implementing order management solutions in their businesses.

Why are supply chain leaders moving towards order management solutions?

By promoting reporting accountability, supply chains can benefit from more agile, apt, and intuitive solutions. . Such innovative supporting tools operate on the underlying concepts of demand sensing, which helps firms to forecast trends and solutions to challenges. Hence, supply chain leaders desiring to take more ownership of their businesses can now improve the order protocol by tweaking the buffer stock volumes. Also, live data feeds will provide the much-needed intelligence to drive informed product cycles.

Additionally, if the leaders strategize and apply an efficient order management system whereby the pain areas are identified and prioritized, and then further recurrences are prevented, companies will surely reap benefits. Hence, greater transparency, accessibility of data, traceability, information continuity, and updated workflows curb redundant maintenance costs. Thus, such solutions can offer a universal approach where specific details are instantly available upon request.

Order management system and its significance for supply chain leaders

Order management systems, which digitally map the product life cycles, are solutions that operate on the principle of predictive analytics, efficiently categorizing order processing. As a result, the solution saves resources (namely time and money) and promotes better awareness within the entire supply chain. Thus, by automation, companies will benefit from faster processing with greater accuracy and look out for all actions, thus creating a robust audit path for future evaluation.

Order management is all about placing an order, fulfilling it, and then managing the entire procurement through to the supply process. Costs can be reduced by powering these vital processes and automating them to generate essential revenue for growth and reinvestment. In addition, this continual development enables further promotion of products and services through cross and up-selling practices. Also, customer experience improves along the way, with faster payment and fulfillment avenues and greater accuracy rates.

The impact of scalability and adaptability on business outcomes necessitates order management solutions in commercial industry settings. Thus, every process becomes uniformly automated and streamlined by deploying powerful technological tools, including AI (Artificial Intelligence) and ML (Machine Learning). Consequently, data is processed at speed and with improved accuracy. Such productivity ensures that all outputs are relevant when applying statistical extrapolation. Now all information flows can be seamless yet remain accountable.

Order management solutions offer various benefits, ranging from automated process flows to quicker processing. Additionally, order management solutions ensure that the entire customer journey is tracked with checkpoints. Hence, this eases the whole supply chain management process, including  e-commerce.

Let us explore just some of these advantages in further detail, beginning with why order management solutions are the right choice for many supply chain leaders to execute them.

Benefits of an order management solution

Capturing data efficiently and omnichannel collaboration: Order management solution efficiently captures the relevant data and reduces transportation costs with efficient route planning. It also systemizes omnichannel alliances from single centralized contact points for excellent service coverage.

Enhances inventory management: It ensures better organization of warehouse stock, coordinated shifting activity, and tracking. Besides these, it updates the inventory automatically, bypassing unnecessary cluttering paperwork. Thus, it maintains the ideal stock levels, thus reducing the supply shortage issue. This definitely gives a clear understanding client invoicing process. Furthermore, applying AI-enabled supply-chain management drives early birds to reduce logistics costs by 15%, and improve inventory volumes by 35% and service levels by 65%, instead of sluggish competitors.

Improved decision making: Order management solution helps companies make better market data-based decisions for sustainable outcomes by applying advanced logic rule-based order systems to simplify the entire process.

Improves organization of customer data: Order management solutions augment the structuring of customer data, thus organizing it as per the requirement, leading to accurate inventory volume monitoring. It provides continual accessibility and drives efficient automation, commercial growth, inventory management, and centralization of operations and data, which is continuously updated. Multichannel capabilities also drive business potential by creating new expansion avenues for the betterment of supply chain industries. Thus, it ensures that every stakeholder can always benefit from an accessible process flow.

Different stages of applying an order management system

All stages of the supply chain process should be sufficiently documented to ensure comprehensive coverage of every movement. Hence, by categorizing their needs, supply chains can benefit from knowing what has happened so far, is happening currently, and could occur in the future. In addition, this provides an updated progress report for everyone to reflect over and improve wherever necessary.

Additionally, extensive testing through real-life scenario recreations will ensure that customers are always protected against system bugs and flaws to help mitigate potential losses, enhance productivity, and minimize errors. Consequently, a seamless yet accurate product flow can follow. This ‘test mode’ will also safeguard customers from unexpected and unwelcome surprises. Following this, training employees to navigate new systems and making them familiar with innovative interfaces is another vital factor to consider during the implementation of order management solutions.

Ideally, a phased transition from one system to another should be followed, as it allows owners to back up their data thoroughly before executing any modification. Additional to this integrity feature, sifting out the differences by comparing an existing legacy system with a new one is also ideal. Thus, a quick implementation of the new system, along with the previous order management system, will surely serve as a safety feature in case of any untoward event, which can be a good approach going forward. Hence, running both technologies correspondingly also enables comparative studies just like deep learning mechanisms do as part of a strategic futureproofing of such systems.

How do order management solutions work?

By unifying all customer and purchase data, along with sales forecasts, information can be accessed from a centralized system which drives efficiency and performance. Consolidating all orders and sales channels within a single unit also ensures that any data captured is efficiently funneled through to processing streams. With this in place, it becomes easier to hone all processes and reproduce successful outcomes by following a tried and tested practice methodology.

So, capturing the order details, processing payments, and integrating these two vital steps to select the correct item and pack it appropriately leads to shipping the order. Order fulfillment relies on proper payment processing too. To promote efficiency, item selection can be zonal, single, wave, or batch-wise. Next, the actual order needs to be validated (to check that it is correct); its size and consequent packaging are all to provide a genuinely fulfilling customer experience and journey. Labeling for shipping and delivery or receiving a return to be checked before being returned to stock for refunds also depends on such systems.


Considering the multiple advantages order management solutions can offer, supply chain companies are trying to find new ways to fulfill and achieve evolving customer expectations. With the technologies updated frequently, customers have also begun to expect quicker and better delivery services.

Hence, due to the ever-shifting customers’ preferences, an efficient order management solution is the best way to provide customers with a fast, personalized, and error-free order fulfillment experience going forward.

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