In business, there are challenges and then there are CHALLENGES. Order management is one of those challenges that can make or break a business. So, what ARE the challenges of a B2B order management system? Let's take a look.
More online orders mean more orders to fill, which might place a burden on your procedures if your company isn't fast enough. Inventory inconsistencies can often be found here, especially if your systems and processes don't allow for real-time inventory updates across all your channels, regardless of how much you buy and sell.
You'll also need "two-speed order fulfillment" if you're running hybrid retail and B2B operation. You will be processing fewer (but larger) orders simultaneously as smaller but more frequent ones, and you'll have to balance longer lead times for B2B clients and shorter lead times for B2C customers.
Related: 5 Ways To Boost Your B2b eCommerce Order Management
Because your B2B clients are more likely to place more significant and more valued orders with you, as well as seek a long-term supplier with whom they can do repeat business, they will have higher expectations than your B2C customers. Millennial B2B shoppers are seeking a similar experience to those of B2C buyers, such as easy navigation, quick checkout, quick shipping, and excellent customer support.
Most buyers value one-on-one sales encounters, enticing pricing, customized attention, and simple ordering processes Your company must be able to meet these high expectations. You risk chargebacks and terminated contracts from your most crucial B2B clients if you don't. And this is where efficient order management systems and eCommerce platforms with good support for your unique business type are critical.
Your B2B customers have various demands and expectations regarding your business and its procedures, just as they do when it comes to your company and its processes.
You should be able to meet any of the following conditions in any combination:
It's difficult enough to process orders on just one channel. You manage orders through many channels, whether eCommerce, online marketplaces, phone, EDI, or in person, which adds an entirely new level of complexity. There is additional potential for delays, human error, and bottlenecks with several touchpoints, and you risk losing control of your firm. You'll need a consolidated view of orders, real-time inventory updates across all channels, and the ability to report on which channels perform better than others. When a company processes more than 100 orders per day, it's time to deploy a B2B online ordering system.
You'll inevitably get behind on the volume of orders you have to complete if you do not have an effective online order management system in place, especially as your firm grows. Inventory will not be assigned and reserved to orders promptly, it will not update inventory levels across all the sales channels, and you will almost certainly oversell the inventory you do have. Overselling difficulties are still one of the main reasons companies look into B2B management software. Still, it's also one of the most straightforward problems to solve once the program is in place.
Many firms rely on various systems to assist them in managing their orders at first. This is usually a mix of their B2B eCommerce platform, separate order management software, and accounting or bookkeeping software. However, data is highly segmented with this technology stack in place. To execute activities, your employees will need to check-in too many systems regularly, and real-time insights will be challenging to come by.
As a result, there will be inefficiencies in the company and outdated financial and sales records.
Customer expectations are rising, which means your B2B clients want to know where their orders are in the process, get answers to their queries and concerns immediately, and have confidence that products will be delivered on time. However, if getting this information is complex, cumbersome, and time-consuming for your clients, you risk them becoming progressively unsatisfied and more willing to do business elsewhere next time.
Instead, by putting convenience efficiency at the center of everything you do, you'll increase client lifetime value and loyalty, as well as win repeat business and attract new consumers.
Order management is a critical part of any business, but it can be especially challenging for B2B companies. By understanding the challenges and implementing some of the tips we've outlined in this blog post, you can make your order management process more efficient and streamlined. Need help getting started? Contact our team at Simpl and we'll be happy to assist you!
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