November 2nd, 2020
3 Ways Order Management Software will Improve your Business
The future belongs to those in the eCommerce industry who have the least order fulfilment lead time. Almost all online retailers know this to be the truth, and in fact, many have already progressed to providing next day delivery through the help of an order management system for eCommerce that can be automated to suit the needs of its consumers.
According to research done by Voxware, if a purchase is not delivered within 2 days of the date promised, 69% of consumers are unlikely to buy from the retailer in the future
- You might find yourself asking…..
“But how can I speed up my order fulfilment process?”
Well actually, there is no simple one-line answer. The order fulfilment process can be likened to that of a factory processing line, each working part (from accepting the order, checking and packaging the order, to delivery of the order), must work together flawlessly to be ultra-efficient and should ideally consume as little energy and time as possible.
- Any order fulfilment process is largely dependent on how you manage your orders.
But now, with the rise of multi-channel or omni-channel eCommerce industries, efficiency of order handling and shipping has risen alongside. The tediousness of this process though should not outweigh its importance.
- What is the right move? How should you be managing your orders efficiently?
Well, the answer is so simple. You can handle your orders, irrespective of quantity, by using an Order Management Software for eCommerce (OMS). The software is designed to automate the process by constantly updating inventory, storing vendor information, customer information, managing returns, and keeping a database of bills, payments, order processing records and general information.
Order Management System Hacks You Won’t Want To Forget
Order management software is the central part of the order fulfilment process. The software can easily be integrated alongside other software to create an order fulfilment cycle which is flawless and efficient in its operation. BUT, there is always the option to buy one software, like Ricemill, which amalgamates all the softwares needed to effectively manage your business.
The order management software, allows you to manage orders from different channels because it is linked to all other online outlets. The software is designed to immediately notify you when there is a new order and also creates segregation, so that you can easily see which orders need confirmation (payment pending) and which orders have been automatically confirmed and are ready for the shipment process.
What is an Order Management System For eCommerce?
An order management system, or OMS, is a computer software system used in a number of industries for order entry and processing. It allows you to manage the orders from different channels.
Let’t have a look into Ricemill order management system so that we can take a closer look at the process.
At the order management systems, it allows you to take the actions as below:
- Manage all your orders in one central place
- Automatic status updates on orders
- Full visibility on the status of all your orders
- Bulk processing
- Process offline orders
- Edit orders anytime
- Send tax invoices
- Address validation
- Sales reports
To sort your products on the basis of categories so that you can check and fully manage the orders. This allows you to prioritize orders by batch within certain online channels as well.
2 Order Management Software Tricks to Try!
The benefits of having an order management system for eCommerce are endless but here I have detailed just a few of the important ones.
- Decreased the order fulfilment costs and increase the bottom line
“Did you know that according to a survey, the average cost to fulfil an order is 70% of the average order value?”
This is a major cost for a business and any means of decreasing that cost is going to increase the bottom line – isn’t that why we are looking for ways to cut down expenses!
The use of an order management system will not only handle and organise the orders but it cuts out human error through the use of a smooth and flawless system. Fewer errors means less possibility of returns and losses due to damage or other related issues.
- Real – Time Processing of Order
Customers are more attracted to buying from an eCommerce company which promises immediate delivery. The order management system for eCommerce allows you to manage orders and keep every stakeholder informed and aware of the current situation.
Key KPIs the order management system for eCommerce can assist you with
A key benefit of an order processing system for eCommerce is its assistance in recognising the KPIs of order processing! These are crucial to the investment, marketing and sales strategy you will adopt moving forward. The following are the KPIs that the system can assist with:
Payday Order Rate
- Total number of orders received in a day
Per Day Shipping Rate
- Total number of orders shipped per day ( the higher the shipping rate the happier the customers!)
Per Day SLA Breach Rate
- Service level Agreement is the service promised by the business to the customer and related to the order fulfilment time duration (the failure to provide services promised is a huge down turn)
Inventory Turnover Ratio
- Determines that the flow of products is smooth and that the inventory is not overstuffed (this ratio should always be high)
Demand Forecast Accuracy
- Review of how accurate the demand forecasts were by the sales team by comparing the orders received with the forecast done
Per Day Risky Orders Rate
- To ensure that the per day risky order rates are at their lowest
COD Orders Per Day
- Keeps track of pending payments and helps to plan strategies to motivate customers to pay online at the time of order placement
In Transit Cancelations
- Knowing the amount and reason for in transit cancellations will allow for improvement of problematic shipping processes
- Warehouse cancellations can be decreased when order processing and delivery times are increased to reduce the risk of customer dissatisfaction
Customer Cancellations on Arrival
- Allows for a decrease in cancellations because shipping for order processing can be refined
- A ratio of the number of orders that are filled in accordance with customer requirements, in comparison to the total number of orders shipped (the fill rate should always be higher to ensure customer satisfaction)
Carrier Success Ratio
- A ratio of the total number of orders successfully delivered to the total number of orders shipped by a particular shipment partner
Order completed per day
- Provides valuable insight into the efficiency of the order fulfilment process
Perfect Order Percentage
- A perfect order is when you ship the correct, in the specified time duration, without any damage and with accurate documentation
Orders Returned Rate Per Day
- Found by dividing the total number of orders returned everyday by the total number of orders shipped
- Reasons for returns allows you to identify issues which are repeating themselves and which require attention
All of the above KPIs are essential to ensuring the order processing system for eCommerce is working flawlessly and aiming to achieve maximum consumer satisfaction. The software also prepares reports and analytics so that you can learn which products are performing at their best.
How to use the order management system for multi channel or omni channel eCommerce?
The centralized automated order management system collects data and orders from all the channels, be it online or offline brick and mortar stores and displays them in one very simple, proactive and easy to use portal shown above in the picture of the Automated order management system for eCommerce of Ricemill. This spares you from shuffling through different softwares or excel spreadsheets and finding each and every order.
You may ask – How will we know which order has come from which platform or marketplace?
Here, you will see the true benefit to an automated order management system come to light.
You are able to select store names , country names, tags, transaction status(paid-not paid-partially paid), date and etc, from the drop down bars and select the orders specifically from your desired store, country, date and transaction status. Furthermore, the automated system for order management will help you prepare shipping labels, generate invoices and centralized inventory information.
In Ricemill, the order management system for eCommerce is linked with shipment software, inventory management software, returns management tool, purchase software, listing software and many other softwares that allow you to manage your entire retail business with the help of automation by just logging in to one portal.
If this sounds like something your business needs then now is the time to act. Check out the live demo below and experience what a positive change you could bring to your business with an automated order management software.
Ricemill inventory management software is the must have software
To recap, the Automated Order Management System for eCommerce is the software your business needs to be a leader in today’s market. This software is no longer the future, it is the here and now.
What else could you want at this pinnacle time?
A system which not only helps you decrease order fulfilment time and hassles but which also lets you increase consumer satisfaction. The Aussie Retailer experience has never been so achievable. Why haven’t you tried it yet? Get started today and bring the future of Aussie retail to the now.
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