Business commerce is on the rise. There has been an important shift in the way various companies are managing their sales and order fulfillment processes. All this, with a focus on inventory control measures, speed, and deadlines effectiveness. Hence, it is important to have a reliable B2B order management system
With the growing e-Commerce vibes, the companies need to process orders efficiently and quickly in bulk. It is one of the primary concerns of B2B managers to complete the orders effectively and on time.
Indeed, a study from Lead Forensics has proved that over 73% of B2B sales transactions are now involving millennial decision-makers. To become the largest aged disciplined individuals, a sleek B2B order management system is very important.
In terms of its principles, the OMS has changed over the period from the perspective of the customers, and the selling method. It has overall affected almost every field of business function.
B2B Order Management System
What is the term B2B Order Management refers to?
In simple words, b2b order management system refers to tracking orders placed by various business customers. Thereby managing the individuals, processes, and partnerships which are required to fill them.
It involves keeping track of every specific order and managing appropriate data on account of your customer. The main question is:
- What is their past order history?
- Do they make a payment on time?
- Are they one of the high-volume customers?
It also includes tracking whether you have the inventory with you to fill orders. Also, managing sides of the particular dealers who are with you in a plan to cope up with you in keeping the stock in hand to carry out that, capturing the order to the customer, and it goes on.
Therefore, the perfect way to think about b2b order management system is in the form of an ecosystem that circles up everything which involves taking and filling orders.
Critical B2B management presentation
- The sales representative receives an order from the customer. Above the order tracking system let it orders management software, ERP or the manual spreadsheets.
- If it is a B2B eCommerce business, then the first step is to get an overwritten by the customers to place their orders online. For this, they can go through a dedicated B2B eCommerce platform or custom online portal.
- Then the order confirmation is sent to the potential customer, and products are then reserved and placed for the allocation of the orders, either manually or automated.
- In the next stage, products go to the warehouse for packing, picking, and shipment. On the safe side, a backorder is sent, for any product that is out stock.
- At last, a confirmation is given to the customer for the order being dispatched
At the event, you may also want to track and manage the returns, exchange processes, and refunds, which are all considered to be a good part of the b2b order management system process.
The top 5 common challenges of B2B order management system
1. Complexity and growth of global supply chains
Starting from the third party suppliers to the different dropshipping companies, with the traditional in-house methods of the supply chain, there exist ways to fulfill the orders and complete the shipment, worldwide.
When you are working with this system of supplying, you will have to send a regular shipment of stocks to your inventory management software. As they handle all order shipping processes, specific customer returns, freight forwarding and charges, and even the order processing.
It all depends on the service package based on which the agreement has been made between parties.
The dropshipping process of fulfillment includes the forwarding of orders and shipment on the request of a vendor or manufacturer. Then they are responsible for delivering the items to the consumers on, usually in collaboration with branding.
2. Visibility of stocks
At the time of fulfillment of the order, the capability to see a whole variety of inventory stock at once is the key to the success of B2B order management. Also, to notice which inventory can deliver on time based on several deliveries and the customer’s location can give an advantage. Non-visibility will throw the loss of orders or on-time delivery of ordered carts.
It will directly result in chargebacks and various penalties. But that’s not all it’s just a part of the story.
The most effective and capable businesses can see the ‘on-hand’ stock from all the locations as well as ‘inbound in-transit’ inventory also. It gives a great pool of inventory to get allocated to each order.
3. High standards of purchase
As your potential is about to purchase the products in bulk and therefore places more valuable orders with you and searches for a long term supplier to carry the repeated business. Thus they will carry a much bigger standard as compared to your B2C customers.
The point of concern for majority buyers to place an order, and carry the efficient ordering process, are one-to-one sales meetings, attractive discounts, personalized service options, and efficient ordering processes.
The business needs to compete with major high demand powers. In case of failure, you will have to face the high chargeback, and increased abandoned carts, from valuable B2B customers.
It is the stage where efficient b2b order management system and eCommerce platforms with deep-rooted support for individual business type, are the main steps.
4. Manifold order configuration and pricing
Complexity has the following different forms:
- A product may be arranged, with only assertive configurations which are being validated or
- The customers may carry special price according to their budget or
- The customer might be qualified for the pricing based on volumes.
There has to be an automatic price adjustment system, which is based on market demands. It is the main point that you have not considered before for your business to resolve this complexity.
The incentives such as, if there is one customer or a distributor, ordering at a particular time get variation in price. It may convince the customer to place an order at the low volume times of a day. It directly helps them to manage their work smoothly.
5. The difference in business and consumer needs
Similar to B2B customers perceiving different expectations, every business, and its working pattern, has different needs. Thus, your business must be capable of supporting any merger of the following requirements:
- Face meetings and order carried out on the roads
- Discounts on bulk purchases with the best price along with pricing bargain
- Back, forth and pre-orders option
- Variety in payment options and flexibility in terms such as proforma invoices, deposits, splitting into payments and payments made on the account.
- Types of delivery options such as partial fulfillment, dropshipping method, and continuous ordering.
- Online processing of orders and self-service for better order management of inventory.
- Frequent communication and personalization with customers to get updates.
To run the B2B Order Management smoothly, the business
- Should be able to accept the orders and make the payment crude of channel origin or currency.
- Route the orders from warehouses based on proximity to destination
- Your business should update the inventory levels over the systems and sales channels
- Furnish the order details to warehouses for fulfillment and track the orders for both customers as well as for customer service teams
- Makes the surface and forecast it to all the stock levels to avoid the problem of making the items out of stock.
- Get combined with back-office functions such as accounts receivable, accounts payable, and the ledgers to create invoices and therefore accepts payments.
In what way to choose the right OMS?
1. Elaborating the system objectives and priorities
By carrying it out and discussing it with internal stakeholders, you will be able to clearly understand various features. One with absolute requirements as compared to the ones that are only nice to have. But slipping on the factor in scalability and future thinking part is not advisable.
2. Outlining the request for proposal
This step leads the team to get organized and understanding the technical requirements by both the buyer and the vendor(s), besides system limitations, which may come handy in to use.
Never avoid involving the order volumes, the current landscape of the vendor, the existing software, hardware, and networks. There should be a timeline for the system acquisition process with the details for training and enablement.
3. Researching the system options
It is unlikely to find an ideal option for your business with the first contact but won’t it be amazing it will be to list a small number of vendors to analyze and reach them to carry out the demos or trials.
4. Reviewing the trade-offs
It is not similar to finding a vendor that is 100% fit and thus the final selection is based on the trading field. Only features and functions are not the only selection key since there is a mindset to take into account the whole of the business relationship we are getting in.
What are the benefits of B2B Order Management?
One misplaced item or the delayed package delivery creates or breaks the overall shopper’s experience. The manager must make sure that the orders are filled and delivered accurately on an urgent basis. Thus, including these aspects, a b2b order management system makes the entire difference.
So let’s have a look at some of the merits provided by the b2b order management system commerce:
1. Enhances the oversight of inventory
The top benefit offered by B2B order management system for increased inventory oversight is provided. With the help of this software in place, supervisors get an assurance that orders are compiled up accurately and shipped within the predetermined and perfect time frame.
2. Order accuracy provides cost reduction
Encouraged order accuracy can also result in noticeable cost savings. Renowned TechTarget contributor, David Essex has noticed that these cost reductions can be extended to both inventory and labor expenditures.
The savings generated can lead to an effective b2b order management system making the payment for itself within the first few months its usage, particularly when there is a word of reduction in costs that comes linked with many of the incorrect as well as late orders.
3. Ensured order tracking for customer satisfaction
On tracking the orders effectively, the business is now in a better position to keep customers happy. It is not important whether they seek for an update on the exact positioning of the products of their potential orders placed, or want to create the reformation to a previous order or the invoice, the system will be able to update them in record time. It is not a piece of the matter who the customers are contacting the company.
In conclusion, it would be better to say!
B2B business sector represents a huge and massive opportunity in the market for your potential business.
Nevertheless, approving these customers and their enhancing standards come with challenges. If B2B remains a vital part of the business, the next step is to identify which type of B2B order management system solution will work and in which best way.
For the smaller businesses processing for less than 100 orders per day, b2b order management system software is the ideal management plan for your business.
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