Sales order automation has grown at the fastest speed in the recent few years. The automated sales order processing containing advanced functions of ERP systems and AI (Artificial Intelligence) has revolutionized sales. These advanced technologies are helping the goods-selling companies that have adopted automation for lead generation and customer services grow.
Let’s understand how automating your sales order process can improve manufacturing efficiency. In this blog post, we will discuss the meaning of the sales order process, the importance of sales order management in the manufacturing business, and the challenges faced in traditional processes.
Understanding Sales Order Processing?
Sales order processing, also known as sales order management, is the method of fulfilling customers' orders. It lies between the processes of purchase fulfillment and order fulfillment, which include providing quotations, accepting orders, financial transactions, and logistics.
The ideal sales order process includes a strategic plan to make sure customer satisfaction, seamless supply chain management, and reduced errors.
Challenges Faced In Manual Sales Order Processing?
Many SMEs follow manual processes for order fulfillment, which may be complex and vary from business to business. Here are some of the common challenges that are often faced by manufacturers in managing the sales order.
- Manual sales order processing is a time-consuming process as manufacturers go through manual label printing, invoice creation, and more work.
- In the manual process, the operational team takes too much time in researching order information and requirements.
- Customers often receive incorrect or defective items, which shows inaccuracy in the supply chain.
- Manual sales order processing results in delays in billing invoices.
- Delays in the delivery cycle cause issues in cash flow management and visibility.
- Companies often fail to forecast customer demand due to not managing effective sales order format.
- The manual sales support process can cause human errors and typos during data entry.
- It also brings issues of overcharges or duplicate invoice creation, vendor billing, and payment.
The Rise Of Automation In Sales Order Processing
The automation of sales order management has helped Indian SMEs streamline the sales and procurement process. The sales order automation process allows you to deliver your product faster.
Using an inventory management system that allows automation, you can generate e-invoices, create types of BOM (Bill Of Materials), and forecast the market demand effectively. Through sales automation, your workers can focus more on productivity instead of fixing errors.
What Is Automated Order Processing?
Automated sales order processing is the way to effectively manage orders and deliveries through technology. The automation process helps to remove manual work and achieve on time and error-free results. It also speeds up the data entry process, promotes effective CRM (Customer Relationship Management), and acquires new customers.
Sales order processing automation helps reduce errors and miscommunication between manufacturers and buyers. The business adopted a digital sales process to achieve better growth through data-driven insights.
What Is An Automated Order Processing System?
Automated order processing systems are cost-effective digital solutions that help manufacturing businesses improve accuracy and increase productivity. By choosing the right order processing system, you can speed up the process for order validation, inventory allocation, shipping, payment, and more without human interference.
An automated order processing software allows you to improve communication within various departments. You can easily generate e-way billing or e-invoicing and share them through email or WhatsApp. The system also helps to manage returns and refunds and quickly access reports of sales and purchase orders.
What Is Sales Order Automation?
Sales order automation is the process of automating repetitive tasks like receiving purchase orders, checking inventory levels, and speeding up the order fulfillment process. The process involves raising sales order if inventory is confirmed and sending BOM to the supplier if a new stack is required. The picking request is sent to the appropriate warehouse manager and automatically raises invoices for the customers.
Sales order processing automation is also used to update stock levels based on the items removed from the warehouse. It further helps organize pickups, estimate shipping costs, and keep stock counts and supplier requests. Such a system also keeps in touch with customers throughout the order management process.
How Does Sales Order Automation Work?
The automated sales order is managed with software to streamline the sales process. Sales order automation is linked to CRM, ERP, and supply chain systems in the manufacturing business. When a customer places an order, the software automatically notifies your warehouse team to start the order fulfillment process by identifying available inventory, production requirements, delivery process, invoice creation, and much more.
Benefits Of Automated Sales Order Processing Software
From inventory tracking to timely order fulfillment, the automated sales order system provides numerous benefits. Here are some of the many ways in which automated sales order processing software helps a manufacturing company:
- It helps to minimize mistakes in data entry, which can result in financial losses or damage to brand reputation.
- The automated sales order processing system removes the repeated work and allows your team to focus on bringing in new customers.
- Automating the sales process allows your employees to access the data stored in a centralized system, which reduces errors and helps you make informed decisions.
- The automated order entry system speeds up the order fulfillment process by assigning tasks to the dedicated team, which improves CRM (Customer Relationship Management).
- As fast as you fulfill your customer's orders, you can rapidly manage the next orders. This way, the volume of the purchase order can be scaled.
- The sales order automation software helps to identify the errors that can be fixed without allocating a large workforce.
Implementing Automated Order Management System
Implementing the new automated order management system impacts your entire inventory management and supply chain management. You can follow the below tips before installing the sales order processing system within your organization to promote seamless workflow.
- Select your sales order processing system based on your business needs, including volume control and workflow.
- Look for integration compatibility with your existing ERP system and CRM automation.
- Choose the system that can adapt to increased order volume and business expansion plans.
- Prefer the sales order automation software with a user-friendly interface for easy staff training and daily usage.
- Look for software that offers customization options to match your business needs.
- Research the vendor who has a good reputation and customer feedback on their previous work.
- Calculate the cost and ROI before investing in automated order processing software.
- Consider the implementation time to avoid downtime in your business.
- Conduct a trial for testing before fully implementing the system in your organization.
Automated Order Entry Systems
An automated order entry system helps you integrate your captured leads with the sales funnel to complete the product or service delivery by collaborating with your team. Here is a list of the most popular and reliable software that can help you automate sales order entries.
1. Oracle NetSuite ERP
Oracle NetSuite is a cloud ERP software that automates order management by receiving orders in real-time and assigning order fulfillment work. You can easily generate invoices without errors and strengthen revenue recognition.
2. TranZact
TranZact is the one-stop, cost-effective solution for Indian SMEs in the manufacturing industry. Its sales order processing system contains easy inquiry management, monitors the transaction timeline, makes easy e-way billing or e-invoicing, and promotes effective team collaboration.
3. Tally Prime
Tally Prime is an accounting software that automates your accounting process. It is mainly used by big enterprises that need to handle bulk orders and monitor the entire supply chain.
4. Odoo
Odoo is an open-source ERP and CRM software used for business management. You can easily manage your sales order, customer services, and ecommerce shop at a place with Odoo.
5. SAP
SAP is an Indian business management solution that contains enterprise resource planning for your sales order automation. You can use it for human resource management, supply chain management, and many more.
How TranZact Automate Sales Order Processing?
Automating sales order management requires multiple steps, from receiving the order to dispatching the products on time. TranZact is the easiest software that is made for Indian SMEs to help them automate their sales order processing. With TranZact, you can track your inventory to identify the required product for order fulfillment and send requests to suppliers. TranZact allows you to automate your e-invoice generation and send it instantly to customers via email or WhatsApp.
Introduce TranZact to your manufacturing business now to reduce human interference and automate sales order processing, which will help you grow.
FAQs
1. What is order processing automation?
Order processing automation is the method of using technology and software to reduce human errors, improve operations, and speed up fulfillment.
2. What is sales order processing?
Sales order processing is the series of tasks executed to fulfill the customer’s requirement. Starting from receiving the order to inventory tracking and successfully delivering it to the customer is part of sales order processing.
3. What is an automated order entry system?
The automated order entry system is a centralized system that is managed through software and tools to improve business operations. It contains sales channels to streamline order processing and track order fulfillment in real-time.
4. What are the benefits of automated ordering?
The benefits of automated ordering are:
- Increased ROI (Return on Investment)
- Reduced human errors
- Minimized costly mistakes
- Increased productivity
- Improved customer experience.
5. What is sales order management software?
Sales order management software is a digital tool that helps manufacturing businesses to effectively process buyer’s orders by collaborating with workers. It also helps with timely order delivery and improved business efficiency.
6. What is a sales order management system?
A sales order management system is a digital way to manage an order's lifecycle, which includes automated order entry, inventory management, and order fulfillment.
7. What are the 3 steps of order processing?
The 3 steps of order processing are:
- Order placement by the customer.
- Order picking, packing, and shipping.
- Generating invoices for the customers.
8. What is an example of order processing?
Receiving an order from a customer and then sharing it with the employees to fulfill it is an example of order processing. Other examples of order processing are packaging, scheduling delivery, invoice creation, receiving payment, and providing post-purchase service.
