With the supply chain becoming increasingly complicated with each passing day, it is now crucial for enterprises to craft perfect sourcing and effective order management strategies in every stage of a product’s delivery lifecycle.
Hence, it will be apt to acknowledge that laying down an active blueprint in lifecycle management design and decision-making offers an opportunity for an organization’s marketing, operational and financial performance. Also, adequately affiliated supplier selection and order cycle time management assists in addressing and managing the risks involved in the supply chain. This is where an efficient Order Management System (OMS) turns out to be the perfect solution for a disparaged supply chain.
The most significant KPI for e-commerce or supply-chain management operation is the total order fulfillment cycle time. But why is it vital, and how can a business operation minimize its total cycle time to make the overall business more profitable and competitive?
Whenever a customer places an order in an online portal or a mortar and brick store, there are many processes functioning in the back-office settings until the consumer collects the wished product. This complete process is referred to as order management, primarily keeping track of the orders and managing all the stages involved, thus accomplishing them. Hence, the method comprises various steps starting from accepting the orders, picking, packing, and shipping the items mentioned in the order; and finally tracking them until they get delivered.
In simple terms, order management is the sequential activities aligned with the business processes, orders, and staff required to meet those orders, followed by handling the order’s consumer data.
As order management software is synchronized with several distinct networks for effective communication, it assists a firm in tracking orders so that the orders can be supplied quickly and efficiently.
Additionally, order lifecycle management can help the involved parties forecast the demand level, as predicting the demand helps avoid understocking and overstocking. Hence, this will keep the companies delivering the products swiftly without any mistakes. Moreover, accurate forecasting through OMS aids processes to an already decided budget and structures the inventory, thus conserving money and time.
Avoid under-stocking and over-stocking issues: Over-stocking and understocking are the two major concerns in the traditional supply chain. Over-stocking leads to surplus inventory that becomes outdated after some time, besides occupying the storehouse space, thus incurring additional costs. On the other hand, understocking leads to the loss of prospective sales or backorders in which the consumers have to wait for their wished products. Therefore, by implementing an end-to-end order management system such as TradeEdge, businesses can obtain the necessary sales metrics and determine inventory levels.
Reducing order fulfillment errors: If a business is undergoing high order volumes coming from multiple sales channels, there is every chance that the staff can choose the wrong product or place an incorrect address on the shipping label. However, companies can guarantee that suitable goods are correctly sent out to the customers by applying some of the best order management software.
Reliable data metrics: An efficient order management system will allow the supply chain networks to have consistent data that they can utilize to generate informed decisions, whenever essential, quickly.
Boost productivity and maintain time limits: With an accurate order management system, businesses will consume lesser time finding solutions to the problems of the order fulfillment process, thus enhancing productivity and saving time.
Boosting supplier cooperation and management: Due to several sourcing points in an order lifecycle, timely deliveries become a challenging task. As a result, companies must integrate the sourcing, inventory, and transportation decisions to track the shipping from the supplier and team up with partners for cost-effective solutions. In line with this, an order management system provides a centralized view of the effects on orders due to disruptions.
Organizing the demand levels: Demand management tactics facilitate companies to maximize profits for products with short lifecycles. In addition, these strategies, along with OMS, allow coordination of activities within the supply chain, improving the visibility and helping the companies to supply ample products in the right place at the right time.
Strengthening order and product margins: Appropriate supervision and disposition of product returns through intelligent order management can substantially boost product margins. Thus, the users will be able to see the detailed specifics of returned products, thus augmenting the value of the reusable stock with minimal wastage.
Considering the benefits of an efficient order management system, it is now apparent that by using OMS, supply chain management companies easily identify loopholes in every stage of product delivery. It enhances visibility and, consequently, helps companies to track the accurate position of product delivery. Furthermore, implementing a solution such as TradeEdge Order Management is time-efficient and cost-effective for the company.