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Order Management: What is it and Why is it Important?

Order management may seem like a simple term, but what does it really mean? And why is it so important? Many business owners are unsure of what order management includes, so let’s take a closer look and get a better understanding.

What is Order Management?

To put it simply, order management is the process of keeping track of orders, the processes and people needed to fill those orders, and managing the customer data for the order. Order management handles everything from receiving the order to delivery and post-delivery customer service relations. Without order management, a business can easily become overwhelmed by orders or struggle to fill them correctly.

The first step to proper order management involves keeping track of inventory on hand versus orders taken in to make sure you don’t take on more orders than you can fulfill. After orders are received by customer service representatives, they must be filled and shipped out. This means that order management requires communication between the warehouse, shipping department, order intake representatives, management, and more. Notes should be kept for each client that places an order and detail if the client is large or small if they pay on time, and how they pay. The accounting department is involved in all of these processes, so that’s yet another department to keep track of.

With all of the different moving pieces at hand, it’s easy to understand why many businesses find order management to be stressful and time-consuming.

Why is Proper Order Management So Important?

As you can tell from the extensive list of departments involved in proper order management, there’s plenty of room for error. If one thing falls between the cracks or isn’t properly documented, it could be a disaster for your order fulfillment rates and customer satisfaction. The inability to fulfill orders, getting orders shipped or delivered later than expected, and not properly receiving pay are all possibilities with poor order management systems. An estimated 65% of customers don’t use a business again after just one negative encounter.

Ultimately, maintaining good order management practices means maintaining your customer base that drives your business. Successful order management will keep your customers, finances, and overall business model working as smoothly as possible.

How Can You Make Order Management Better for Your Business?

Now that you know more about what order management is and why it matters, you’re probably wondering what you can do to make it work for your business. The answer is simple – use a professional. Companies like BioProcure are experts at order management systems and processes. Using a professional company or service to handle your order management will ensure there are no errors made and take the pressure off of you! You’ll quickly notice the difference in the efficiency and reliability of your order management systems when you make the change to a company that is experienced in handling all of your order management needs. Order management can be stressful, but it doesn’t have to be. Contact us today at to find out more about how we can start improving your order management today!

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