How to Improve Inventory Control: A Detailed Guide
Inventory control isn’t a glamorous topic. But it’s the silent engine powering countless successful companies.…
Read More >>Order management is important yet complex for wholesale businesses.
Without it, orders often fall through the cracks or end up delayed due to disorganized systems and a lack of standardized procedures. This can damage customer relationships and hurt your business’s reputation.
A well-designed wholesale order management system (WOMS) can help bring visibility, consistency, and control to your business operations. By automating manual tasks and centralizing order data, you can prevent errors, save staff time, and keep customers happy.
Curious how your business can implement a wholesale order management system? Read on to learn how it can streamline your order process from beginning to end.
What Are Wholesale Order Management Systems (WOMS)?
Wholesale order management systems are specifically designed to automate and streamline the complex processes associated with handling wholesale orders.
With this sort of system in place, you can:
- Improve operational efficiency
- Cut down on costs
- Achieve better customer satisfaction
Key Features of Wholesale Order Management Systems
When evaluating such systems, it is important to consider a few key features, which include the following:
Order Processing and Automation
One of the major benefits of using wholesale order management systems is the elimination of manual data entry, thanks to automation. This not only saves time but also reduces the risk of errors. Real-time validation feature allows instant error checking for pricing and customer information, further enhancing efficiency.
With automated order confirmation, customers can expect instant confirmation emails or SMS alerts after placing an order, ensuring peace of mind and transparency. Additionally, invoices are generated automatically and sent upon order fulfillment, eliminating the need for manual data entry and reducing the risk of errors.
Inventory Management
Achieve peace of mind and streamline your inventory management with the real-time visibility feature. Easily monitor stock levels across multiple warehouses and locations, eliminating the risk of overselling or understocking. This powerful tool allows you to plan replenishment efficiently.
Additionally, gain the trust of your customers and avoid frustration by keeping them informed with automated status updates and expected delivery updates. Benefit from the system’s ability to create backorders for out-of-stock items, and rest assured that as soon as inventory becomes available, fulfillment will be automated without the need for manual intervention.
Customer Relationship Management (CRM)
With POS CRM software, you can conveniently access all your customers’ information in one place. This includes their orders, contracts, and more. Additionally, you can gain valuable insights into their purchasing behaviors and preferences by reviewing their complete order history.
You can also offer personalized product recommendations to customers based on their previous purchases and browsing behavior.
Moreover, it allows for the implementation and management of loyalty programs to reward loyal, repeat customers.
Wholesale Order Management: Steps to Follow
Whether fulfilling orders for your own chain of stores or supplying loyal wholesale accounts, smooth execution is key. And generally, your order processing system is the engine that keeps everything humming.
But how do you ensure every box reaches its destination seamlessly? These are the six key steps of wholesale order processing:
- Order CaptureOrders can arrive through various channels: online portals, EDI transmissions, even good old-fashioned phone calls. A robust order management system (OMS) acts as your central nervous system, capturing orders from all sources and centralizing them in one convenient hub.
- Inventory VerificationBefore packing boxes, your OMS performs a crucial first step: inventory verification. It checks stock levels against orders, ensuring you can fulfill each request without a hitch. This real-time visibility prevents backorders and keeps both you and your customers happy.
- Pick & PackWith orders verified, the physical dance begins. The OMS sends instructions to your warehouse management system (WMS), directing pickers to the right locations and ensuring they gather the correct items. Packing follows, guided by optimized workflows and clear labeling generated by the OMS.
- Simple ShippingYour OMS integrates with shipping carriers, comparing rates and selecting the most efficient and cost-effective options for each destination. Labels are printed automatically, streamlining the process and saving precious time.
- DocumentationYour OMS ensures all the paperwork is generated flawlessly and attached electronically to each shipment. No more frantic stampeding for missing documents – everything is ready to go with the delivery driver.
- Automated CommunicationThroughout the process, your OMS keeps everyone informed. Customers receive order confirmations and tracking updates, while internal teams have real-time visibility into order progress. This transparency builds trust and keeps everyone on the same page, from the warehouse floor to the store manager’s desk.
Tips for Boosting Your Wholesale Order Management Solution
Implementing a robust system has the potential to change the course of your business. However, to ensure success, it is important to follow these tips:
Create Discounts for Large Orders
Businesses often purchase items in bulk because they need a large quantity to support their operations. This allows them to take advantage of price breaks that are offered for ordering in large quantities.
Thankfully, many ecommerce platforms come equipped with tools that efficiently implement bulk discount pricing, considering the quantity of orders placed.
With this capability, your business can create various discount levels tailored to different customer demographics. You can also offer discounted bulk pricing to specific customer groups.
Verify Inventory Levels with Distributors and Manufacturers
Any company should ensure they have the right amount of inventory on hand. However, ecommerce businesses that allow bulk ordering should pay attention.
It is important to ensure a consistent and reliable supply to meet large orders. This requires regular monitoring of stock levels and effective communication with your supplier.
Assuring that you have the necessary stock is the first step in reliably fulfilling large orders. This entails maintaining a line of communication with your vendors.
When your supply changes, it’s critical to update your ecommerce store as soon as possible with the new quantity. Try to make a note on the product page when an item is scarce or in small supply.
Request an Upfront Payment
Bulk fulfillment order carries some risk. You are stuck with unsold merchandise if someone makes a larger purchase and cancels it.
Developing a reputation that permits this could significantly harm your company.
It is crucial to request money upfront because of this. You might want to implement a Buy Now, Pay Later option or request security deposits if you can’t reasonably expect that of your customers.
As you develop a connection with these regular customers and companies, there should be an air of confidence and trust that makes you feel more at ease when conducting business.
Construct a Wholesale/Bulk Order Landing Page
Having an easily accessible landing page for your bulk order system on your website will help you build customer confidence and convey crucial information to both prospective and current customers.
This includes information about bulk delivery, minimum and maximum purchase requirements, and links to your product sites.
Provide Regular Customers Password-Protected Logins
Most first-time customers would choose the faster guest checkout option rather than register an account on your website.
However, frequent customers will prefer and require specific features that are only accessible with a personal account. This includes storing orders, shipping addresses, payment options, and customized choices.
Your customers can create accounts with you if you remove barriers to account creation by making the login procedure quick and simple. This includes just requiring your user to enter their password once, letting them “uncover” it, and automatically filling up areas like “State” depending on their zip code.
Allowing your customer to check in with their email address or phone number rather than a specific username will streamline the registration process once they have already registered.
Monitor Your Inventory Closely
Thanks to real-time visibility, you have complete clarity on your inventory. This empowers you to confidently fulfill orders with accuracy and prevent any unpleasant surprises of items being out of stock. Accurate inventory data ensures seamless order processing, reducing returns, and streamlining administrative processes.
Manage Shipping with Efficiency
You can enhance efficiency and organization with streamlined automation of label printing, shipping quote comparison, and shipment notifications.
Investing in a robust warehouse management system is crucial for effective inventory tracking and optimized packing.
You can create more space and efficiency by implementing standardized packing protocols tailored to different product types and quantities.
Include a Tracking Number
To ensure customer satisfaction, it is essential to provide a unique tracking number for each order. This tracking number can be conveniently shared with customers through email or text. Additionally, it is important to actively communicate updates on order shipments, including the tracking number and expected delivery date.
Factors to Consider When Selecting a Wholesale Order Management System
To guarantee long-term success for your business, it is important to consider several key factors when selecting a system.
Scalability and Customization
It is important to find a system that can handle your current order volume and data size. It should be able to scale seamlessly to accommodate any future growth your business might experience.
Also, check to see if it will allow you to customize the system to automate order processing workflows specific to your needs. It should also be able to allow you to customize reports and dashboards to track key metrics and gain insights that are relevant to your business.
Integration Capabilities with Existing Systems
To ensure your business experiences smooth operations, it is important to find a system that can integrate with existing systems.
Take note of all the systems you currently use. Determine how data flows between these systems and your current order management process. When searching for wholesale order management systems, find out if they offer open APIs or pre-built connectors for your existing systems.
Vendor Support and System Updates
When you are searching for the right WOMS, you must do your homework on vendors. After all, you want to find one you can rely on to ensure the growth of your business.
This includes getting these questions asked:
- Do they offer 24/7 support?
- How long does it take on average for them to get back to their clients?
- How knowledgeable are they about the system they are offering?
- Do the updates sufficiently address security vulnerabilities and include new features?
- Is the vendor transparent in communicating the schedule for these updates?
Conclusion
Effective inventory and warehouse management is important for any business looking to thrive in a competitive market. By considering the tips mentioned today, you will not only streamline your order process but also improve customer satisfaction and ultimately increase profit margins.
Be sure to always prioritize communication, proper inventory management, and accurate data analysis to ensure a successful order fulfillment process. With the right tools and strategies in place, you can take your wholesale business to new heights.
To learn more about FTx Warehouse, be sure to touch base with us to set up a consultation and demo!
FAQs
Having a system in place does offer a great deal of benefits, but there are some potential drawbacks.
Seamless integration with existing systems is crucial to avoid data discrepancies and errors, preventing potential operational issues and customer dissatisfaction.
The setup and maintenance of integrations can be technically complex, particularly for complex systems. Therefore, it is essential to have sufficient technical expertise or support readily available.
Generally, this depends on the complexity of your business’s inventory and orders. A smaller business may be able to use a spreadsheet to manage inventory and keep track of orders. However, as the business grows, inventory and order management software will be necessary. A full-scale order management platform helps you:
· Track orders: See all your orders in one place, from quotes to fulfillment.
· Automation: Send invoices, confirmations, and shipping updates automatically.
· Manage inventory: Keep track of stock levels and avoid overselling.
· Streamline shipping: Integrate with shipping carriers for easy label printing and tracking.
· Generate reports: Get insights into your sales, performance, and customer trends.
Landing a big wholesale order is exciting, but before popping champagne, strategize! The process is different for inbound and outbound orders.
Inbound:
· Verify: Double-check specs, delivery expectations, and pricing.
· Prepare: Ensure inventory and production capacity can handle the volume.
· Communicate: Share your plan, highlight potential hiccups with solutions, and keep them updated throughout.
Outbound:
· Prioritize: Schedule production with minimal impact on existing orders.
· Package: Secure proper packaging and documentation for efficient shipping.
· Dispatch: Track shipments, update your client, and address any issues promptly.
Processing large orders quickly starts with planning. First, forecast demand and access your capacity. Next, use order management software to automate and refine tracking, fulfillment and communication. Break down large orders into manageable steps and be sure you communicate with clients and internal teams.
Large-scale transactions demand an agile inventory system. First, a good system allows for automation, helping you to integrate with sales channels and forecasting tools for real-time demand visibility. You can also optimize your system to focus resources on high-value, fast-moving items. Look into warehouse management systems for better forecasting and order fulfillment. Remember, your system should adapt to your business, not the other way around.
