What is Sales Order Management?

Sales order management is a series of actions performed to manage sales transactions from the moment an order is placed until the product is delivered to the customer. Focused specifically on processing sales orders, it is a subset of the broader order management system (OMS) term. Effective sales order management with a comprehensive software as a service (SaaS) program ensures a seamless purchasing experience, minimizes errors, improves customer satisfaction, and optimizes operational efficiency for businesses.

Steps of Sales Order Management

Sales order management makes it easier to manage orders and inventory across multiple sales channels without errors and delays. This can involve other processes that work together to make sure that orders are processed efficiently and inventory is accurately managed. This thorough system reduces the risk of errors or miscommunication so customers receive their products on time.

• Inventory Management System: Before an order is placed, businesses must have a clear understanding of their inventory. Utilizing cross-channel inventory visibility, which allows both sellers and customers to view inventory status in real time, retailers can improve customer experience, avoid lost sales to backorders, and reduce overstock costs.
• Order Entry and Capture: Once a customer places an order, the system must accurately capture the details and customer information for processing. These captures can include validating the customer’s information, payment details, and shipping address and generating a unique sales order number for tracking purposes.
• Confirm inventory: To confirm that the ordered item is in stock, the system can cross-check the available inventory count and identify when an item needs to be restocked or sourced elsewhere.
• Process, Pick, and Pack Order: During the fulfillment stage, the order is processed, the ordered product is selected, and the full order is packed. Using an automated system speeds up the picking and packing process.
• Ship, Track, and Deliver Order: By integrating with shipping providers, a sales order management system can provide real-time order status tracking updates to the customer and focus on a timely delivery.

Benefits of Sales Order Management

Having the infrastructure of a sales order management system in place can completely overhaul the way a business processes its sales. Automated tasks and efficiency-driven workflows allow businesses to establish an approval process that optimizes order accuracy, reduces manual errors, and ensures smooth transactions, no matter what type of business they are.

• Improved Inventory Management: Through features like inventory visibility and inventory reservation, businesses can make data-driven decisions that prevent financial losses and ensure orders are fulfilled efficiently.
• Streamlined Order Processes: Implementing an automated system creates a centralized workflow that speeds up the entire sales order cycle, resulting in faster order fulfillment, routing, and processing.
• Reduced Operational Costs: Through sales order management, businesses can reduce costs associated with human error, such as manual order processing, inventory mismanagement, and shipping inefficiencies. Additionally, sales order software allows for order documents to be safely and accurately stored.

Sales Order Management Strategy in B2B and B2C

Sales order management can be used for both Business-to-Business (B2B) and Business-to-Consumer (B2C) transactions. While these two types of commerce can have several key differences in their sales process, customer interactions, and pricing cycles, both can benefit from the versatile features that an efficient, accurate order management system provides.

B2B Commerce

• Larger Order Sizes: B2B transactions often include bulk purchases, requiring precise inventory tracking, order processing, and shipment coordination.
• Multiple Decision-Makers per Purchase: Several people within a business are often involved in a B2B purchase, which makes order tracking and efficient communication crucial.
• Longer Sales Cycle: The B2B purchasing process is more complex and strategic, often involving quotations, negotiations, and contract agreements before a customer order is finalized.
• Customized Pricing: B2B pricing structures are often negotiated, meaning a sales order management system must support dynamic pricing models, volume discounts, and contract-based pricing.
• Business-Specific Outreach: B2B companies focus on targeting businesses, so B2B sales order management software must track customer-specific orders and histories for effective long-term partnerships.

B2C Commerce

• Smaller Orders: Customers typically purchase B2C items in small quantities, requiring an efficient automated sales order processing system that supports quick fulfillment and real-time inventory updates.
• Individual Customers: B2C buyers make independent purchasing decisions, and customer service interactions are typically limited to returns, inquiries, or support requests.
• Shorter Sales Cycle: B2C utilizes instant transactions like automated payment processing and same-day or next-day shipping that require minimal interactions between the buyer and the seller.
• Standardized Pricing: In B2C transactions, customers pay fixed prices. Sales order management systems must ensure pricing accuracy across multiple sales channels.
• Broad Advertising and Outreach: Since B2C commerce targets a wide range of customers, sales order management software must integrate with marketing and e-commerce tools.

Sales Order Management for E-commerce

For e-commerce businesses focused on online products, the ability to manage high volumes of online orders efficiently is crucial to staying competitive in a fast-paced market. A sales order management system allows businesses focused on online orders to keep up with demand without compromising quality, speed, or accuracy. For an e-commerce platform, the most impactful benefits from this service can include:

• Same-Day or Next-Day Shipping Capabilities: Features like smart order routing and real-time inventory updates offer customers the quick and reliable delivery dates that they have come to expect as e-commerce has grown.
• Minimized Delays: These automated systems can ensure that customer expectations are met or exceeded, even during peak sales periods like holidays and seasonal events.
• Accurate, Efficient Fulfillment: Eliminating errors throughout the sales order process increases customer satisfaction, reducing the likelihood of returns.

How Deck Commerce Transforms Your Sales Order Management

Deck Commerce was established in 2015 as the market’s first cloud-based OMS platform focused on post-order-placement and direct-to-consumer shopping experiences. The innovative Deck Commerce Order Management System allows brands to optimize an order’s entire life cycle, from storefront to front door.

With Deck Commerce, businesses gain a scalable, cloud-based solution that adapts to the fast-paced demands of e-commerce, helping brands meet customer expectations for faster delivery, accurate order fulfillment, and seamless post-purchase experiences.