by Sophia Riley | Aug 8, 2023 | Sales Order Processing, AP Automation
Businesses handle many types of documents in their sales and order processing. However, the accounts payable team finds it more challenging to work with purchase orders than invoices and money transfer records.
It is the sequence of activities from the moment a consumer orders up to delivery, including each step of the shopping and shipping process—also order selection, financial transactions, and logistics.
Sales Orders
Purchase and sales orders are similar, but they move in different ways. A seller offers the latter, which shows, there has been a sale, and lists the products, quantity, payment options, shipping details, and other details.
The purchase order is the opposite and originates with the buyer and describes the goods they want to buy. For instance, an enterprise may provide suppliers with a detailed document stating everything they need. After agreeing on the costs, the vendor offers a sales order responding to the customer’s requests.
The last part is the billing process, where a company generates a sales invoice for products and services. Businesses can create them after issuing the sales order or later describing the accepted payment conditions depending on the agreement. Both parties decide when this occurs before or after receiving the products.
On the other hand, the finance departments from each side will evaluate the documents to ensure the information are accurate. The orders mentioned above for sales may be for special one-of-a-kind things and require extensive legal work to set up the terms.
Looking from a distance, this continuum’s processing shows variations in order volume and payment demands. The purchase order involves capturing data for several recurring clients, while the sales order is complex.
The sorts of requests businesses process depend on the industry they operate in and their company’s structure. Sometimes the buyer does not care about a sales agreement’s repercussions as they are just interested in the order processing.
Businesses must comply with the terms in the sales order forms because not adhering to the agreement has legal implications.
The Role of Automation in Sales Order Processing
Previously buyers would expect a human being to handle their requests, but technology minimizes their involvement in order processing. Still, companies are utilizing end-to-end systems that enable them to collect orders electronically and will not need to convert documents into digital formats first.
Throughout computer and internet existence, Excel spreadsheets and emails have been a part of corporate processes. However, both of these tools frequently take up staff time which they could spend on more beneficial tasks.
Digital tools integration is necessary to streamline operations, simplify complex tasks and eliminate laborious work. Still, it is essential for creating the best customer experiences. Sales automation software assists businesses in managing sales operations better, from lead creation to sending automatic notifications by email. It also allows you to set aside time for activities that generate income.
Companies must view financial document processing as a process with the documents having many similarities and little yet significant variances. Executives must strategize how to streamline the procedure to get the best out of sales order management.
Similar to other business operations, manual work offers the biggest roadblocks in productivity and performance. Investing in digital solutions should be at the forefront of every business’s digital transformation.
Although technology has advanced significantly, it can still not mimic the type of human conduct that creates and maintains confidence in a business. Automation offers sales representatives more time and opportunities to tap into their unique abilities, which improves their working conditions. After that, they may engage with clients to form a long-lasting connection.
Importance of Standardized Sales Processing
Since order processing is a series of procedures that the sales staff take, a structured process gives structure. It creates responsibility in sales initiatives while increasing productivity and shortening lead times. Sales representatives will know what to do at each step of the business transaction.
The sales team encounters numerous bottlenecks, and companies might only get the best out of their sales initiatives with well-defined procedures. Key performance indicators will assist the executives in evaluating the company’s achievements and ensure the team is on track with the core objectives.
A systematic sales process helps salespeople close transactions with greater consistency. Knowing the success rate, it becomes easy to predict with greater reliability the probable sales you can achieve from a certain number of leads and aids the leadership team in setting reasonable goals.
Teams will handle sales better and provide the right support by utilizing the same processes and terminologies standardized sales process. It improves communication and decreases confusion across departments.
A deal may fail and the rapport with a customer may suffer if a sales representative pushes a prospect into something they needed to prepare for. A regulated sales procedure guarantees that vendors will only take the deal forward after the buyer is prepared to do so.
Standardization lays the groundwork for an enjoyable client experience by adapting a sales method that matches a potential client for B2B sales. The objective is to establish trust and give value beforehand.
Tips for Navigating through a Complex Sales Order Management
- Make measurable objectives: It entails developing a comprehensive knowledge of your present sales order process utilizing accurate sales metrics, number of orders, data input error rates, and processing time for each stage.
- Specify how you collect data and how you get information: It includes the kind of format, data collection techniques, storage, and retrieval.
- Reporting and analysis: sales order automation is an effective way of monitoring business operations. The team can use software for data analysis and reporting.
- Frequent consumer communications: Spend time validating information, confirming orders, and making sure the correct goods are prepped for shipment. Automation gives businesses an edge over competitors as it will improve the capacity to meet the needs of clients.
- Use metrics: KPIs measure the efficiency of the business processes and technology regularly. By doing so, enterprises can grow and improve profitability through cost reduction and establish fresh ideas for future workflow improvement.
- Consider problems as opportunities to constantly enhance and improve your IT infrastructure. To be successful, you must have a continuous action plan.
by Sophia Riley | Aug 3, 2023 | AP Automation, Sales Order Processing
Companies, entrepreneurs, and managers are venturing into e-commerce for business growth. The strategy opens up opportunities for income generation and offers access to an extensive market.
Sales order automation is critical to achieving success through increased profits and should be at the forefront of an organization’s digital transformation.
An Overview of Sales Order Automation
It is the entire process of taking care of a customer’s order from order placement up to delivery, including taking requests, packaging, shipping, order tracking, and after-sales services like product returns.
We can simply say that it is the procedure of making sales and getting the items into the client’s hands or requested delivery point. Investing in sales order automation software will improve e-commerce by streamlining the processes and it is available for businesses across many industries.
Merchants will manage online orders more effectively and can use them on-premise to streamline sales while ensuring customer satisfaction.
E-commerce Sales Order Management
Automating sales orders for e-commerce is handling and completing online orders. It covers every aspect of the process, from customer ordering, order routing, packaging, labeling, shipping, and refunds.
Sales order automation aims to make the ordering process smooth and provide a product to a client promptly. It aids in tracking a customer’s item when purchasing online, from when shoppers add each item to the cart to when it reaches the customer, as well as any subsequent returns. Previously enterprises would rely on Excel sheets and enterprise resource planning applications, which could have been more effective.
Thanks to technology and innovation, businesses can invest in a flexible, scalable, and adaptive digital solution to be responsive to demand or market changes. Here is how an e-commerce sales order system should work;
- Placing an order
The order management lifecycle starts with the customer placing an order using an eCommerce platform. You will get the order details when someone purchases an item from your online shop. The personnel at the warehouse will need access to the information, which would help integrate the system with your warehouse management software.
- Item Picking
Sending order details to the warehouse should be automatic, particularly if your business processes many online orders as it will streamline and speed up order fulfillment.
Working with an established sales order automation service provider is critical for the project’s success. They can assist in identifying digital tools to integrate into the sales order management system depending on the business needs.
- Ordering
Packaging operations happen at the warehouse. With an integrated sales order automation solution, workers can quickly gather details about items from several orders and move them for packaging, where another team preps the item for shipping.
The stage includes labeling orders for shipping according to customer requests and preferences. An integrated system makes information easily accessible to all involved in prepping orders before delivery.
- Order delivery
Shipping is the final step in order processing which involves sending out the ordered products using a reliable courier service. Depending on the customer’s delivery address, online merchants can partner with shipping companies and identify suitable service providers.
Sales order automation will provide digital tools for order shipping management but you’ll need to work with the courier services to ensure that they arrive on time to pick up.
- Order tracking and Customer Updates
Online merchants must inform clients about their order status: A sales order automation system helps update shipments and the dates the items will likely reach customers. Some businesses have a shipping company communicate to customers about their shipment, passing up a chance to engage and impress the client.
- After-sale Service and Problem Resolution
Businesses seek to make an impression on customers through packaging but must provide after-sales service to guarantee customer satisfaction.
Clients should easily find return information in case of an error or if they don’t like what they bought. An integrated system enables buyers to get assistance from the customer service department with speedy resolutions to problems with their orders.
How automated is your process?
Many businesses find out later that their sales order management systems are not adequate to handle increased demand and changing consumer needs. Enterprises can determine inefficiencies in sales order management if several manually executed steps can be laborious, waste time, and increase expenses.
You probably have automated many business processes, but ensuring that it supports your e-commerce strategies is important.
Here are some things that can help you identify if you have a fully automated system for e-commerce:
Inadequate Functionality
Sales order automation software might not fulfill all requirements in your e-commerce business, requiring additional features if missing a crucial function. The inadequacy makes transitioning to a new system difficult later.
It is advisable to integrate digital tools that improve your business management system. Still, avoiding having numerous features might make the sales order processing platform hard to use. Only select the tools you need and specific to your industry.
Slow or erratic Syncs
Inaccurate inventory and shipping information can arise from human errors or challenges in data synchronization. Also, users may find it challenging to send data from different applications without continuous synchronization, meaning there will be no accurate records at all times.
The existing System does not Support Multiple Packages
If your sales order platform does not support multiple order processing, upgrading is necessary. You do not want to send items clients had in the same cart during order placement in separate packages. The system may occasionally mistake multiple requests as a single order, taking more time to process client requests necessitating upgrading,
Scalability
Firms serving clients from different territories or are likely to expand in the future require a scalable digital solution to suit their needs.
Users cannot View Data in the system
After entering data and configuring digital tools integrations, you cannot view the information, generate reports or access the dashboard, your sales order management system is inadequate.
by Sophia Riley | Jul 20, 2023 | Sales Order Processing
Prioritizing sales order processing is critical for companies to ensure customer satisfaction. This process can also help with inventory management as well as revenue generation. But what many people need to be made aware of is that sales order processing can be equally stressful and overwhelming. That’s because you have to deal with demanding customers, crazy deadlines, high orders, complicated procedures, and so much more.
The process can take a toll on the sales order processing team if not handled properly. That’s why organizations should put in place measures to help sales order processing teams cope with the stress and pressure of sales order processing.
If you don’t have measures in place in your organization to cope with stress and pressure in sales order processing, worry not, as we have got you covered. This article discusses various ways to cope with the stress and pressure associated with sales order processing. Let’s delve into them.
- Plan and prioritize
If you want to cope with stress and pressure in sales order processing, one of the best things you can do is to set goals and prioritize your tasks. Review your orders, deadlines, and objectives first thing in the morning, then make a realistic calendar that will let you prioritize the most urgent and crucial work first. Use calendars, reminders, and checklists to keep track of your work and ensure you don’t forget any important information or deadlines. Additionally, be responsive to changing circumstances and consumer needs and modify your plan as necessary.
- Avoid multitasking
Research has repeatedly shown that humans are not excellent multitaskers, even though we multitask daily. According to Bryan College, multitasking causes productivity losses, costing businesses nearly $450 million annually. Sales order processing teams may be more pressured to close the gap when businesses suffer from severe productivity losses.
Multitasking may negatively impact IQ and cognitive function on an individual basis. Long periods of task switching may cause your routine chores to feel harder in the future, which doesn’t do much to lessen feelings of stress. One task at a time concentration can increase productivity and quality of work, which is beneficial for you.
- Communicate clearly and collaborate.
Working collaboratively with coworkers, bosses, and customers is another technique to manage the pressure and stress of completing sales orders. Provide your clients with accurate and timely information about their orders, statuses, and problems clearly and respectfully. Respond to their comments, inquiries, and worries, then address them professionally and empathetically. Work together with your coworkers to share workload, concepts, and solutions. Ask your top management for assistance when you run into issues or challenges. You should also report any mistakes or delays as soon as you can.
- Never stop learning and strive to improve.
Utilizing your experiences to improve allows you to deal with pressure and stress in the sales order processing process. Make the most of any chance to pick up new skills, information, and best practices to enable you to carry out your duties more successfully and efficiently. Utilize the opinions of your bosses, coworkers, and clients to determine your strengths and places for development. Celebrate your wins and accomplishments while taking responsibility for your blunders and failings. Use them as learning opportunities to improve and advance as a sales order processor.
- Learn how to resolve conflicts effectively.
You may occasionally encounter circumstances when you must settle disputes with your clients, suppliers, or coworkers. For instance, you could have to handle client grievances, order cancellations, delivery holdups, or inventory shortages. You need to be skilled at negotiating and resolving conflicts if you want to handle the pressure and stress of processing sales orders. To develop a solution that satisfies your and their needs, try to comprehend the other party’s viewpoint, interests, and needs. Focus on establishing common ground and developing rapport and trust rather than transferring blame, disputing, or intensifying the issue.
- Automate as much as you can
You need to free up staff time for more important activities. Automation involves giving repetitive and boring tasks to computers so they may complete them more quickly and precisely. In addition to that, this will reduce the pressure and stress that comes with handling boring and annoying tasks.
- You might consider automating the following processes while processing sales orders:
- Receiving order confirmations and monitoring inventory levels
- Increasing sales orders after confirming inventory
- Whenever fresh stock is necessary, suppliers are sent purchase orders.
- Raising a sales invoice for the consumer to be printed or emailed
- Contacting the relevant warehouse manager with picking requests
- Updating stock levels based on the products that are scanned and removed from shelves
- Setting up pick-ups and calculating shipping expenses
- Contacting the client when there is a delay or at crucial stages of the process
Taking these tasks off the team’s plate will help ease stress and pressure in sales order processing.
- Take time to relax and recharge.
Finally, taking time to unwind and refuel your body and mind is one of the most crucial things you can do to deal with the pressure and stress of processing sales orders. You must learn good coping mechanisms for stress because it can harm your performance, health, and well-being. To relieve stress and clear your mind, take regular daily breaks to stretch, breathe, or practice meditation. After work, participate in activities like your hobbies, favorite sports, or socializing. You keep your health and vigor, get enough sleep, eat well, and exercise frequently.
Wrapping it up
When you reflect on the pressure sales order processors face due to the complex procedure, it is no mystery where the stress and pressure come from. A stressed sales order processing team isn’t good for business. Ease the stress and pressure on sales order processing employees by implementing the above measures. The result will be happy employees and satisfied customers.
by Sophia Riley | Jul 18, 2023 | Sales Order Processing
No matter how much you try to offer the best customer service, you will always encounter dissatisfied customers. You will also deal with returns as they are inevitable too.
But the unfortunate part is that these complaints and returns can be detrimental to your business, especially in this digital era where people can share anything on social media. It can damage the solid reputation you have struggled to build over the years you have been in operation.
You need to find ways to handle and reduce the risk of returns and customer complaints. Sales order processing [SOP] can help you reduce and deal with them effectively.
This article discusses SOP, why it matters, and how to use it to reduce returns and risks. So, without wasting more time, let’s get started.
What is sales order processing?
Sales order processing is the procedure for managing customer orders from the point of order placement till the customer receives the goods or service. Several phases are included in the SOP, including order entry, confirmation, invoicing, delivery, and payment. SOP is significant since it impacts client retention, loyalty, and satisfaction. Your reputation can be improved, repeat business increased, and good word-of-mouth generated with a seamless and accurate SOP. On the other hand, a subpar SOP can cause issues, delays, customer unhappiness, and legal issues.
How to use SOP to reduce returns and complaints
Now that you understand what SOP is all about, let’s see how to use it to reduce complaints and returns.
An effective, dependable, and consistent SOP is crucial to preventing returns and complaints. Use a clear and thorough order form that includes all pertinent information, such as product specs, quantities, prices, delivery dates, and contact information, to improve your SOP.
Send the customer a confirmation message or email with the order details and tracking information as soon as possible to confirm the order. Continually update the consumer on the progress of their order and follow up with them.
Set up a quality control system to inspect goods before shipment and pack them safely to prevent damage during travel. Provide invoices that are accurate, unambiguous, and consistent with the terms of payment for the order. Finally, deliver the goods promptly and in good condition and ask the consumer for delivery confirmation.
How to deal with returns and complaints when they arise
As already stated, no matter how much you try to offer the best customer service, you may still have to deal with returns and complaints from clients. Responding promptly and courteously to the client’s issue and apologizing for any difficulty or dissatisfaction caused are crucial for ensuring a successful sales performance and maintaining customer loyalty. Additionally, it’s critical to pay attention to consumer input, comprehend their viewpoint, provide a just and reasonable answer that suits their demands, and then contact them again to confirm the solution. To further help prevent similar problems from happening in the future, take the time to reflect on the experience and pinpoint the source of the problem.
How to gauge how returns and complaints affect sales performance
It is no secret that returns and complaints can greatly impact your sales performance. That’s why you need to reduce them as much as possible. How can you measure the impact of returns and complaints? The best approach would be to use key performance indicators [KPIs]. These KPIs can monitor the frequency, cost, and impact of returns and complaints. Here are the most important KPIs you can use:
- The return rate (the percentage of goods returned by customers)
- Complaint rate (the percentage of orders causing complaints from customers).
- Resolution rate (the percentage of returns and complaints that your SOP team has resolved effectively).
- Resolution time (the average amount of time it takes your SOP team to resolve a return or complaint).
- Customer satisfaction (customers who express satisfaction after a return or complaint is resolved).
- Customer retention (the percentage of customers who make a purchase even after a complaint or return).
You can evaluate the success of your SOP and identify areas for improvement by keeping an eye on these KPIs.
How SOP can boost your reputation and customer loyalty
Sales Order Processing may improve your reputation and client loyalty, preventing and managing returns and complaints. Making SOP more distinctive by including the customer’s name, preferences, and background will strengthen their sense of loyalty to your company. You can increase their satisfaction by exceeding their expectations and providing value through free samples or vouchers. They may feel more engaged if you solicit their opinions and suggestions after each order, and they may feel more valued if you give them rewards like loyalty programs or discounts. Their confidence in your brand may increase if you display encouraging comments and testimonies from satisfied clients. These are all powerful approaches to implementing SOP to improve your reputation and client loyalty.
Final thoughts
How you handle compaints determines whether you’ll retain customers. Other than implementing Sales processing orders, you can handle these issues in other ways. For instance, you can solicit customer feedback, upgrade your product’s quality, etc.
Regarding customer complaints, you need to understand the root cause and see how you can handle it without making the customer feel undervalued. This way, you can reduce returns and complaints and end up with satisfied and loyal customers who can help you grow your company because customers are the backbone of any company!
by Sophia Riley | Jul 11, 2023 | Sales Order Processing
Sales order processing systems are valuable resources for businesses handling customer orders. Your business may benefit from implementing an order processing system to make it more effective and profitable. To assess your business’s benefits, we’ll review what an order processing system is, its features and functions, and why your business can benefit.
What is a sales order processing system?
The sequence of events from customer ordering to product delivery is called sales order processing. The sales order processing impacts each step of the purchasing and order fulfillment, including quotes, monetary transactions, order picking, and logistics.
Any business selling goods or services to clients must execute sales orders. It entails gathering, verifying, and completing orders received through various methods, including online, by phone, or by email. A modern sales order processing system is a tool that streamlines and automates this procedure, cutting down on errors, expenses, and delays. In this article, we’ll examine some of the essential features and capabilities of a cutting-edge sales order processing system and how they might help your company. Let’s get started!
- Order management
From order entry to delivery and invoicing, a modern sales order processing system should be able to control the whole order lifecycle. Order verification, approval, distribution, selecting, packing, shipping, tracking, and billing are just a few of the processes it can automate. The system can also handle complex situations like backorders, incomplete shipments, returns, refunds, exchanges, and cancellations. Each order’s status and progress may be tracked and managed, and you can also receive notifications for any problems or anomalies.
- Integration with multiple sales channels
You should be able to integrate your multiple sales channels, including your website, e-commerce platforms, social media, and third-party marketplaces, with a modern sales order processing system. By doing so, you may gather and combine orders from various sources, reduce duplication, and synchronize inventory and pricing amongst channels. In addition, you may offer a consistent and smooth client experience, irrespective of how customers place their orders.
- Inventory management
To maximize your stock levels and availability, a modern sales order processing system should function as your inventory management system or integrate with it. Your inventory can be tracked and updated across sites, warehouses, or suppliers. Additionally, cycle counts, transfers, modifications, and replenishment can all be automated. You can increase your inventory accuracy and visibility while avoiding stockouts, overstocking, and obsolescence.
- Integration and customization
A modern sales order processing system should integrate seamlessly with the accounting, CRM, ERP, and WMS systems and other apps you use in your company. Utilizing the capabilities and benefits of each system and streamlining workflows, data, and processes within your organization can be done in this way. Your sales order processing system can also be customized to fit your unique business requirements and preferences, such as your industry, product category, customer base, or sales strategy.
- Return processing
An order processing system may integrate return management features to increase the effectiveness of return processing. This can help the employees overseeing any client returns about the return and inform them of any actions necessary to carry out the return for the customer. This can reduce the amount of time that staff spends on returns processing while also benefiting customers. A company may be able to analyze and pinpoint areas for improvement by using data on returns provided by an order processing system.
- Invoice processing
For billing consumers, invoices are a crucial document, and an order processing system might produce one for each order. The system’s organization makes it simpler for the business to locate an order and issue an invoice, or it can do it automatically for every purchase. Ensuring the company receives money from each customer might help organize the accounts and billing data for the company.
- Customer service
A modern sales order processing system can improve your ability to serve and satisfy customers. You can offer convenient and adaptable delivery alternatives in addition to quick and accurate order fulfillment. Additionally, you can contact your customers via chat, SMS, or email during the ordering process. They can receive order confirmations, shipping updates, tracking data, invoices, and requests for customer feedback. Additionally, you can give customers self-service alternatives like order status checking, order alterations, and return initiating.
- Security and scalability
A cutting-edge sales order processing system must meet your company’s needs even as it expands while remaining secure. It can manage high order, customer, product, and transaction volumes without sacrificing effectiveness or quality. It can also adjust to changing market trends, client requests, or legislative requirements by incorporating new features, services, or integrations. Additionally, it can use encryption, authentication, backup, and recovery techniques to safeguard your data and transactions from unauthorized access, theft, or loss.
- Report generation
By creating and analyzing reports on organizational performance, productivity can be significantly increased. Order processing systems that keep track of them at every stage can speed up the production of more thorough reports. Many order processing systems may generate reports and charts based on parameters entered by the user, such as the average processing time or the total number of orders sorted by day. These systems employ data already present from each order processed to generate an accurate report.
Final thoughts
The sales order process is crucial in businesses, especially those that sell goods. If you get it right, you will be able to reduce costs and make your customers satisfied. But if you get it wrong, you will not only increase your expenses, but you will end up with unsatisfied customers. This is where a sales processing order comes in. If equipped with the above features, it will help you streamline the ordering process, save you significant money in the long run, and help you retain your customers.
