What is order management? Effective management, increased revenue

Order management has long become an extremely important job in businesses. Order management directly impacts the customer shopping experience and the entire store management system. So what is order management? How to manage orders to increase revenue? Let's find out with 1C Vietnam through the article below.

1. What is order management?

Order management is the management of all business processes related to an order for a product or service to complete that order, including tasks such as receiving information, picking goods, packaging , shipping and after-sales handling.

2. Order management process in businesses

Depending on the scale and business items, each business will have a different order management process. However, usually a standard order management process will be divided into 3 main stages as follows:

2.1 Receive information about orders

The order management process starts from receiving information about the order that the customer has placed. Receiving information will include accepting an order from a customer and collecting payment for that order. Once completed, the purchase transaction information is forwarded to the warehouse so that staff can prepare the products for shipping.

2.2 Complete customer orders

In the second phase of the order management process, employees will need to perform 3 steps including warehouse picking, packaging, and shipping. The detailed content of each step has been presented specifically below:

2.1.1 Pick up goods

After receiving information about the order, the next thing to do is to get the correct product as requested. In warehouses, products are often arranged and stored on shelves. Warehouse workers then need to be able to pick the right items that have been ordered quickly and accurately. They will then be sent to the packaging station.

2.1.2 Packaging

At this stage, employees will be responsible for using appropriate packaging materials for each product to ensure they reach customers intact and in the best condition. For example, fragile items such as glassware should be packed with bubble wrap or air pillows and placed in appropriately sized boxes to avoid wasting packaging materials.

2.1.3 Transportation

Once you have selected and packed the correct order, the next step is shipping. Warehouse staff will perform 3 main tasks:

• Attach the shipping label and applicable invoice to the order.
• Mark orders as shipped in all sales channels.
• Send shipping confirmation and order tracking emails to customers.

2.3 Handling orders with problems

Problems that may arise after sales such as returning goods, refunds, handling damage or resolving complaints from customers, etc. At that time, businesses need to always be ready to help resolve problems. Problems arise quickly and efficiently.

Businesses can proactively contact customers to collect feedback on product/service delivery, receipt, and packaging. This will help ensure that the customer is satisfied with the quality of the product/service. If there is any negative feedback, businesses should proactively resolve it to keep the relationship with customers better.

3. Benefits of using order management software

Order management can now be performed on supporting software applications. At this time, businesses will manage tasks more easily and effectively thanks to automated, accurate systems. When using this software, businesses will achieve the following main benefits:

3.1 Save time and costs

Order management software will help save time for making orders and checking inventory for each sales channel. In addition, order management software also integrates and synchronizes necessary information, making management easy as well as significantly reducing hiring and personnel management costs. Using order management software not only helps save operating costs but also minimizes possible losses during the business process.

3.2 Synchronize processes

The software will help businesses synchronize the entire management process of products being sold at the store, inventory or goods in process of transaction. Managers will easily determine the remaining products in stock and avoid out-of-stock situations during the order creation process.

3.3 Easily manage the transportation process

Many order management software today have integrated with shipping and fast delivery partners nationwide. This helps business owners save a lot of time and effort when searching for or hiring outside shipping services, thereby minimizing risks that may occur during the shipping process.

In the above article, 1C Vietnam has helped you learn about what order management is as well as how to effectively manage orders for businesses. If you want more information about effective order management solutions, please contact 1C Vietnam today for support and advice!