Streamlining order processing: tackling inefficiencies with your ERP

When a customer places an order, you’ll need to process it quickly and accurately, so you can meet delivery deadlines and increase customer satisfaction. Research shows 81% of consumers value next-day delivery, so for businesses supplying parts and components for these products, there’s pressure to meet consumer expectations and establish an efficient supply chain.

But a sudden influx of orders can quickly lead to bottlenecks and delays. It’s even worse if you’re experiencing labour shortages or relying on manual methods, which not only slows fulfillment but can also lead to errors and costly recalls. Whatever sector you serve, the quicker an order lands in your customers hands, the more confident they’ll feel in your ability to deliver on time and in full (OTIF).

Recap: Order processing steps

1. Accept the order: Check the item is in stock and enter the order into your system
2. Produce: If you’re a make-to-order manufacturer, start producing the item
3. Picking: Once accepted, the items are located and picked from the warehouse
4. Sorted: The items are sorted and checked for defects
5. Packing: Orders are packed and labelled ready for the customer
6. Shipping: The order is sent to the customer

How can an ERP streamline order processing?

By making the processes outlined above more efficient, you can take on more orders, reduce costs, win repeat orders, improve your reputation, and grow your business. Often it’s the small everyday improvements that, over time, significantly improve business performance. Key to achieving this is a trusted cloud-based ERP, which allows you to streamline every process, including order processing.

• Fulfill customer orders on time
• Cut costs
• Reducing mistakes or refunds/cancellations
• Offering faster delivery options
• Improving inventory management
• Meeting demand

So how exactly can your ERP help?

Automate orders

Manually entering orders into a spreadsheet or working with an older system is time consuming to say the least. But it can also lead to errors like accepting an order without the item in stock or entering the wrong product or quantities leading to returns, and even recalls and reputational damage. In contrast, swift and accurate delivery is more likely to lead to repeat purchase/renewed contracts, and recommendations to industry peers. Instead, ERP software can automate the process for you, enabling your team to work efficiently and manage customer expectations. For example, Ridder iQ will automatically check if the item is available before accepting the order, giving you peace of mind that you’ll be able to fulfil it.

Streamline inventory management

Teams need to be able to quickly locate products or materials during the production or picking to avoid delays. Good ERP systems have location tracking to reduce time lost trying to find something. By integrating inventory management software into an ERP, you’ll have complete visibility of what stock you have and where it is. You’ll see what item/material is available, where it’s located and quantities. Ridder iQ PDA Logistics – a module designed to optimise inventory management – can also be used to add stock into inventory quickly and efficiently, with live data keeping you informed of quantities.

You can also create a custom workflow, so you’re notified if an item is critically low to reduce the risk of a stockout and lost sales. Orders can also be automatically generated to save you time when managing receipts and invoices.

Line up production scheduling

While production and purchasing typically take place before order processing, many manufacturers offer engineer- or configure-to-order products, especially in the electronics or automotive sector. That means purchasing and production needs to be efficient in order to process the order quickly. A modern ERP should include a planning module to help you streamline production scheduling. This way, you’ll be able to manage resources and demand more effectively.

With visibility across departments, teams can check the status of an order and identify bottlenecks. It helps you plan better and mitigate any issues before they escalate. Ridder iQ provides up-to-date insights about available capacity, so you can flexibly accept orders while being able to guarantee timely delivery.

Order-driven purchasing

Using their ERP, manufacturers can set a minimum stock level, so that materials or components are automatically reordered once they have reached it. Once an order has been placed, the system automatically orders materials to save time.

Live data

Live data, presented as actionable insights, allows your team to focus on making efficiencies across the business that drive up performance. With Ridder iQ, you’ll get access to real-time data, so you can keep a close eye on orders and identify any delays. It also connects teams such as customer service and finance, to production and warehousing, enabling them to collaborate and deliver the highest level of service. Ridder iQ is an industry-specific ERP for discrete manufacturers, built by experts in your sector to help you achieve your operational and commercial goals.

Find out how you can improve your order processing to reduce inefficiencies and drive business success.