How can you optimize your order processing?

What exactly is order processing? ?

Order processing means the process including all the necessary steps from the sale of a product to its delivery to the end customer.

Also known as fulfillment, it plays an important role in customer satisfaction. An optimized order fulfillment process is an effective way of building customer loyalty.

The 5 stages of order processing

Order processing steps may differ from one company to another.

In general terms, here's 5 steps in a typical ordering process:

Receipt of order

When customers arrive at your online store, they browse the product catalog to discover the products they need. He then validates his basket and confirms his order .

The process of order processing begins when this order is received by the back-office team.

Validation and verification of information

Once the order has reached the back office team, they process the customer's orders. The back checks order details and acknowledges receipt to the customer t. This validates receipt of the order. We then move on to the next step.

Order preparation

Once the order has been validated, it is transferred to the team responsible for picking the products. The first thing to do is to check the availability of products ordered in stock.

When the company has an automated inventory tool, this stage is much simpler: if the products ordered are available, we carry out the following steps product picking. In other words, orders are retrieved from the store's warehouse.

The products are then labeled, then double-checked. The order picker must ensure that nothing is missing from the order list.

The actual preparation of the order involves pack ordered items . The order picker must ensure that orders are packaged in such a way as to guarantee safe transport.

Shipping and delivery

Once packed, the parcel is picked up by the carrier and delivered to the address provided by the customer. This stage is called last-mile delivery .

This is a very important step, because we need to address two concerns:

• Deliver the package on time to the right address

• Do not damage the package

Managing returns and exchanges

Sometimes, once delivered, the parcel does not fully meet the customer's requirements. This may be due to the product itself or to the delivery method.

It may also happen that the customer decides to use its right of withdrawal or apply a legal or commercial warranty.

Managing returns and exchanges also plays an important role in customer satisfaction.

This stage includes two actions:

• Exchange the product in the event of default or reimburse the customer

• Update stock following product return

Tools for optimizing order processing

We've seen that order processing is a crucial function for an e-commerce business. That's why it needs to be optimized.

Here are some tools that can help you optimize order processing in your company:

Order management software (OMS)

Order management software is used to take charge of an order from customer confirmation to final delivery. It takes into account all aspects of the process, including third-party logistics.

OMS (Order Management System) software enables you to track orders throughout their journey and to have real-time visibility This type of software enables you to quickly implement alternative solutions to your supply chain problems. avoid setbacks with customers. This makes the order management process smoother.

The use of this type of software also makes it possible to offer a better customer experience because they can check the status of their order at any time.

Order management software is usually closely linked to inventory management software. In this way, the company's inventory records are automatically updated after each product sold.

Here are the main features of order management software:

• Order entry

• Order tracking throughout the supply chain, while providing customers with all the information they need on the status of their orders

• Digital catalog creation and management the products available in the store, specifying the prices and characteristics of each one

• Tracking and managing available stock

• Centralized order information

Before choosing your order management software, you should consider the following criteria:

• Features and functions

• Software usage costs

• Compatibility with existing systems

• Customer data protection guarantees

• A solution tailored to company size

Warehouse management systems (WMS)

A warehouse management system is software that provides visibility on a company's product inventory. It also makes it possible to manage and monitor supply chain operations, from the warehouse to the store shelves.

The WMS (Warehouse Management System) software also makes it possible to optimize order management with features such as :

• Inventory management. WMS software enables real-time monitoring of stocks available within the company

• Optimization of storage space. It rationalizes the use of storage space.

• Operations planning

• Order tracking. It tracks every step of the order processing process

Integration of payment and shipping solutions

As you can see, combining different software solutions allows you to optimize your order management process. The software you need includes payment solutions.

Using this type of solution allows you to :

• Save time . These solutions automate payment collection and customer reminders in the event of late payment.

• Easy billing . Payment solutions automatically process and archive customer invoices.

To compare such solutions, you need to consider :

• The various costs associated with using the service

• Payment security guarantees and data retention

• Features and functions

• Ease of implementation and use

• Compatible bank cards.

Shipping solutions also offer real advantages for optimizing your order processing:

• Automate repetitive shipping tasks

• An optimized customer experience.

Strategies for improving order processing

As we mentioned earlier: order processing plays an important role in customer satisfaction. So it's in your interest to optimize your process to ensure complete customer satisfaction.

Here are some ways to achieve this:

Automate processes

Automating the process both saves time and avoids human error. After all, any error can have serious consequences, leading to a poor customer experience.

Here are our tips for automating the order management process:

• Using order management software and entrust the processing of an order and its routing to the nearest preparation center

• Enable customers to find out where they are located of his order and the estimated delivery time by sending an order tracking link.

• Using a barcode scanner to locate stock in a busy warehouse

Optimize customer communication

Regardless of the measures put in place to optimize order processing, a company cannot be completely free from hiccups. Delays in delivery can also occur for reasons beyond the company's control. limit the unpleasant consequences, notably through transparent communication with customers.

Even with a late delivery, the customer can be forgiving if he is clearly informed in advance of the cause of the delay, by SMS or email.

Monitor and analyze performance

Regularly monitoring the performance of your order processing enables you to identify potential faults and make any necessary adjustments.

To do this, you must select relevant KPIs to your objectives and the characteristics of your business. These indicators enable you to evaluate the strengths and weaknesses of your order processing.

Here are some examples of KPIs you can track:

• Inventory turnover rate . This KPI refers to the percentage of goods purchased by the company and converted into orders over a given period of time.

• Out-of-stock rate. This indicator shows the percentage of orders that cannot be processed due to stock shortages.

• Backorder rate . This is the percentage of backorders in relation to the total number of orders received. This situation is generally due to a stock shortage.

• Cost per order. This is the financial cost of order processing operations, from receipt of the order to delivery to the customer.

• On-time delivery rate. This is the ratio of orders delivered within the timeframe agreed with the customer.

Common mistakes to avoid in order processing

Here are the most common mistakes made by companies that can affect the smooth running of the order processing process:

Poor inventory management

Poor inventory management can have several consequences:

• An overstock situation . The company's warehouse holds a large number of products of various types. This situation is problematic, as it increases storage costs. At the same time, over-stocking jeopardizes the organization of storage space, which can also lead to delivery delays.

• Out of stock . This is the opposite of overstocking, as it involves the temporary absence of a product or brand.

In addition to costing the company money, each of these situations can upset your order management process. Non-optimized storage can lead to delivery delays.

Errors in order information

Incorrect entry of customer information or a typing error The delivery address entered may be incorrect, for example. In this case, delivery is made to the wrong address, which not only results in an unnecessary trip, with all the additional costs that this entails. It also leads to late delivery .

But the quality of the customer experience depends on precise order processing.

One way to avoid such errors is to use order management software. The automation function of this type of software minimizes the risk of human error.

Shipping delays

Delivery delays may be due to a number of causes, including :

• Causes internal to the shipping company . Errors in the processing of delivery data, for example, can be the cause of delays. It may also be due to non-optimized storage or inappropriate loading of products.

• Causes linked to external factors . Traffic and other obstacles in the last mile are also a factor. Weather changes can also cause delivery delays.

Apart from risks of customer dissatisfaction delivery delays can also lead to financial costs for the company . This is particularly the case when the customer requests compensation or reimbursement of a certain percentage of the delivery charge.

On the other hand, a delay in delivery can have a domino effect on the company's logistics operations.

How does Hero improve your order processing?

Hero is a payment solution dedicated to B2B SMEs.

For your cash flow, we allow you to collect your customers on D+1 and pay your suppliers on D+60.

We also give you access to a free bank card with payment facilities. This can be a tool for smooth order management.