In this digital age, an efficient order management system is key to ensuring operational excellence. Businesses spend lots of money on order management systems so that customer’s demands are met accordingly.
However, several challenges may disrupt these ordering channels and processes, leading to increased operational costs, customer dissatisfaction, and low productivity.
Here, we take a look at six such common order management challenges and how these can be tackled by businesses.
The Challenges
Weak Order Collection Process
If the start of the journey is flawed, the whole process suffers. Poor order-picking creates unwanted and costly delays in order fulfillment. This not only dissatisfies the customers but also frustrates everyone along the channel.
Poor order collection guidelines and unskilled personnel are two reasons for this challenge.
For instance, if a Sales Representative is unable to collect accurate orders from retailers, the placement of an order would be incorrect. This will lead to dissatisfaction of the retailer and redoing the whole ordering process, increasing costs.
Disorganized Sales Channels
Many times, disconnected sales channels and routes create severe inconsistencies in inventory levels, pricing, and receiver experience. This kills time and causes directionless sales channel moves from the sales reps.
The lack of synced functioning of in-store POS systems, online platforms, and third-party aggregators triggers this major problem.
Disordered Warehouse Management
Managing common inventory effectively is crucial to prevent stockouts and excess stock. due to a lack of supervision and coordination, inventory management at warehouses faces disorderly issues. Scattered inventory management systems can lead to more or less sales than needed as well as excess or short stockpiles.
These warehouse issues eventually hit profit, as customer dissatisfaction rises.
Problems with Delivery Routes
Inefficient delivery routing can force businesses to lose money over transportation costs. This problem further leads to postponed or delayed deliveries.
Lack of proper route planning and real-time reporting leads to these delays, unsatisfactory customer experiences, and operational costs.
For instance, if there is heavy traffic on the delivery routes but warehouse personnel don’t know about it, they will send the order on the pre-planned route instead of an alternate route. This will obviously create unwanted delays.
Constant Communication Gaps
Lack of real-time updates and communication creates issues for everyone along the order process channel. Whether you are at the warehouse or point of sale or you are the customer, lack of communication leads to frustration and a sense of being neglected.
The number of errors and service calls increases when there is a communication gap in the order management system. For instance, if the sales rep does not know where the order is on its route, they will keep on reaching out to the vehicle driver carrying the ordered items.
Lack of Real-time, Accurate Data
There are instances when sales supervisors face challenges in manually monitoring inventory, such as high communication costs, poor market visibility, and the risk of sudden SR turnover. Also, managers and top management face difficulties making timely decisions due to high administrative costs and central reporting requirements.
These challenges occur primarily due to a lack of strong real-time reporting and data.
For example, when an order is on its way in the planned route unless there is real-time tracking of the delivery status or movement, you cannot 100% trust the ‘intent’ of the transporter. Someone with malicious intentions can easily change the route or even the quality of delivery, increasing unwanted costs.
The Solutions
The aforementioned challenges are difficult to solve instantly. However, with the help of smart, advanced Distribution Management Software (DMS) like Sokrio DMS, you can solve your retail and distribution channel problem. Sokrio DMS offers advanced, digital order management system features that ensure orders reach their target customers, free of error, from placement to delivery.
Next, we look at the features of an advanced order management system, driven by a DMS, that work as solutions for tackling the above challenges.
Live Management Dashboard
A DMS can efficiently track order statuses, inventory allocation, and delivery routes and present them to a real-time management dashboard. The visualized movement of the order and possible route forecasts help managers make informed, insightful, and data-driven decisions.
This aspect will also help in the generation of impactful reports on sales, inventory, and distribution efficiency.
Route Planning, Activity & Attendance Monitoring
By organizing sales team movements and optimal route planning, you not only save time from unwanted lost time during order movements but also increase productivity and visits to outlets.
You can also:
monitor sales team activities in real-time,
gain insights into customer visits,
check inventory statuses at warehouses, and
Assess order placements
Additionally, DMS helps to keep track of sales team attendance, ensuring accountability and reducing disorganization of sales channels.
Improving Stocks And Inventory Management
Gaining real-time visibility into stock levels, locations, and movement enables accurate demand forecasting and minimizes errors in order placements. You will know how much stock you have when an order is placed.
This optimizes inventory levels, reduces carrying costs, and enhances order fulfillment accuracy. Thus, the customer or retailer receiving the order will be satisfied.
Providing Real-time Sales Order Tracking
A DMS helps with live order status monitoring, which simplifies the whole process. Also, you can capture and analyze sales data automatically, enabling better strategies for customer engagement and streamlined communication across the channel.
This aspect also reduces the number of errors and complaints, enhancing transparency and improving customer satisfaction.
Customized, Data-Driven Reports
A key to solving order management issues is to generate reports that are specific to your business needs. The relevant data and insights that a DMS like Sokrio DMS provides ensure you can make informed decisions about your total order management system.
You can also transform complex data into easily understandable visualized presentations for top management to reduce costs, improve efficiency, and make better decisions more quickly.
The in-depth data analysis provided by a DMS enables you to identify trends that are crucial for streamlining order management.
24/7 Customer Services
An all-important element of a strong order management system is the customer service. A smooth, updated, responsive, 24/7 customer service support reduces communication gaps across the delivery channel and ensures the order status is aligned with the routes.
In case routing plans need changing, customer service support can help by informing the issue to the management.
Final Words
To sum up, there are challenges in implementing a proper order management system. However, there are solutions, too can be effectively addressed and solved by features of an advanced and smart Distribution Management Software (DMS) like Sokrio DMS.
With real-time data, automated systems, and data-driven reports, businesses can overcome these challenges, better their operational efficiency, and increase customer & retailer satisfaction. These in turn will help them achieve strong business growth.
