Every business needs to sell to be successful. But what happens after the sale can mean the difference between sustained earnings and lost opportunities. Managing sales orders effectively is crucial because it directly impacts customer satisfaction and this boosts profitability. Automating order management not only increases efficiency and accuracy, it’s also a big contributor to long-term business growth.
How do you do it? You can gain these benefits by using sales order management software to automate the sales order lifecycle. In this article, we’ll explore what sales order management software is, why it’s important, and how businesses are leveraging this technology to improve both processes and profits.
Table of Contents
- Understanding sales order management software
- Key Features of effective sales order management software
- Choosing the right solution for your business
- Case study: AquaPhoenix Scientific
- Conclusion
INTRODUCING
Intelligent Document Processing
AI-Driven Data Extraction through advanced OCR & HTR
Understanding sales order management software
What is sales order management software?
Sales order management software is a digital tool that automates and streamlines the order management process. This includes order entry, tracking and inventory management, invoicing and shipping. These solutions reduce manual intervention and thereby minimize errors and accelerate the speed of order processing.
The result? Companies find that they can reduce the time spent on incoming orders and improve operational efficiency across the board.
Importance of sales order automation
If you are not using sales order management software, you may be lagging behind your competitors. You may also be missing out if you're using outdated software that doesn’t integrate with your enterprise resource management (ERP) or customer relationship management (CRM) systems. Without an efficient system in place, you risk delays, errors and missed opportunities that could impact your bottom line.
Your company can:
Boost sales
It’s one thing to make a sale. But the true success of a business lies in how effectively it manages the processes that follow the sale. Efficient order management not only supports smooth operations but also plays a critical role in fostering long-term profitability and growth. Indeed, businesses that implement automated order management systems experience a 15% increase in sales.
Enhance efficiency
Automation can significantly speed up order processing times. For example, Amazon’s use of over 200,000 robots in its fulfillment centers has enabled the company to reduce order processing times by 30%. This is just one example of how automation not only enhances customer satisfaction but also allows businesses to scale operations without a proportional increase in labor costs.
Reduce errors
Automated systems substantially decrease errors in order fulfillment by as much as 67% compared to manual methods. By minimizing mistakes, businesses can lower return rates, improve customer satisfaction, and enhance overall operational efficiency. Fewer errors mean less time spent on corrections, fewer lost sales, and a more reliable order fulfillment process.
Improve customer satisfaction
Faster and more accurate order processing enhances customer satisfaction. As a result, 54% of top executives in the U.S. are adopting new or enhanced fulfillment processes to improve order processing speed, aiming to boost customer satisfaction. This shift highlights the growing recognition that seamless and efficient order fulfillment is a key driver of customer loyalty and repeat business.
Key features of effective sales order management software
1. Order processing automation
Order management software automates several aspects of the order processing cycle, which helps to reduce manual labor and minimize errors. With features like AI-powered document processing, you can capture of order information digitally and enter data into the system without human intervention.
In addition, digital workflows can, for example, route orders for approval of special conditions, send order confirmations and transfer data from a completed order to your ERP or accounting software for invoicing.
2. Centralized documentation
Related documents, including quotes, orders, contracts, emails and and accounts receivable invoices, are linked together by a unique identifitier like an order number. Authorized users across departments have access to all the information they need to resolve descrepencies or answer customer questions. Your staff won't need to consult multiple systems to monitor order status. The information is also conveniently at hand for audits and to prove regulatory compliance.
3. Integration capabilities
It is important to adopt sales order management software that will integrate with other key business systems, such as ERP, CRM and accounting software. Integrating with your ERP, for example, helps synchronize inventory levels, financial records, and customer data in real time, and this connectivity will help you maintain consistency and accuracy across all platforms.
4. Real-time inventory management
Effective systems provide real-time visibility into inventory levels, which helps prevent stockouts or overstocking. By knowing exactly how much stock is available at any given moment, you will ensure that orders are fulfilled on time and avoid running out of critical products. Real-time tracking can result in a 20% reduction in excess inventory costs and improve stock accuracy by up to 35%.
5. Security and compliance
Data security is vital today, particularly when dealing with sensitive customer information. Order management ensures that you are in compliance with data protection regulations and use security features like encryption, secure access controls, and audit logs to protect both customer and business data.
Choosing the right solution for your business
How to improve sales order management efficiency
First, identify your business needs. Consider factors such as order volume, industry requirements and the level of integration needed with your existing systems. It is important to also evaluate scalability — will the software grow with your business as you expand?
Engaging relevant stakeholders, such as IT, sales, and warehouse teams in the decision-making process will help make sure that whatever solution you adopt will align with your business objectives and eliminate the barriers caused by paper-based processes or outdated software.
Evaluate and compare options
Evaluating and comparing different sales order management software options is crucial. Key considerations include:
- Ease of use: A user-friendly interface ensures that your team can quickly adapt to the new system, minimizing training time and reducing the likelihood of errors.
- Support for multi-channel sales: The software should seamlessly integrate with various sales channels, such as online platforms, physical stores, and mobile applications, to provide a unified view of orders and inventory.
- Real-time tracking: Real-time tracking capabilities allow for immediate updates on order status and inventory levels, enhancing decision-making and customer satisfaction.
- Customer support: Reliable customer support is essential for addressing issues promptly and ensuring the smooth operation of the software.
Choosing the right solution not only streamlines operations but also enhances scalability, reduces costs, and positions your business for long-term success in a competitive marketplace.
Case study: AquaPhoenix Scientific
Discover how AquaPhoenix Scientific improved sales order processing, exceeded ROI, and boosted productivity
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AquaPhoenix Scientific is a leading manufacturer of chemical test kits and reagents that faced the challenge of dealing with highly customized orders and extensive documentation. By implementing DocuWare Intelligent Indexing, they automated order categorization, eliminating manual data entry and reducing errors. This led to a 40% improvement in order turnaround time and a reduction in order errors from 15% to 2%. Archiving business-critical documents in DocuWare enables authorized users to pull up every document associated with each order, this has streamlined the processes for the sales, manufacturing and accounting departments. Document searches that used to take 30-60 minutes now take just seconds.
With DocuWare’s integration, AquaPhoenix optimized workflows, reduced operational costs, and improved productivity. Automated document management and ERP system integration enabled faster, more accurate order processing, enhancing overall efficiency.
Conclusion
A powerful sales order management solution will enable your business to restructure and optimize order processing. Features like AI-based capture and categorization, centralized and accessible documentation, and seamless integration with your existing business software are just a few of the software's valuable attributes. The results are more sales, improved customer satisfaction, and much greater efficiency. These capabilities will support your business growth today and will give you a competitive edge in the future.
To find out more schedule a free demo to see how DocuWare can revolutionize your sales order management.
