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Advantages of standardized order processing
Order Management
Order management or order processing is a core process in companies. The order processing process includes all detailed steps from order receipt to delivery to the customer. Without standardized order processing with clear specifications for the majority of orders, a smooth process is virtually impossible. We help you to structure order management in such a way that on-time delivery and consideration of all relevant costs to the customer are ensured.
We support the optimization of the following topics
Order process - from order receipt to delivery
Congestion management
Optimization of sales units
Analysis of minimum order quantities (MOQ) & minimum quantity surcharges
Segmentation of the product portfolio (e.g. through contribution margin accounting)
Optimization of the shipping process (e.g. customs clearance)
Challenges in order management
Various challenges can arise in the area of order management that can significantly impair the smooth processing of orders. Are you also facing the following challenges? Then let us advise you on how to optimize your order processing.
Customer requirements can vary greatly, which is why it is usually difficult to clearly prioritize the most relevant requirements. Without a well-founded analysis, there is a risk that standardized rules such as minimum order quantities (MOQ) or delivery times (lead times) will be used ineffectively. This results in complex and inefficient order management processes.
Another common challenge is a lack of coordination between the individual business units. For the most part, departments act in isolation from one another, prioritizing their own goals without considering the potential impact on the broader supply chain. This form of ‘silo thinking’ means that relevant information is not shared in a timely manner, which can delay processes and incur avoidable costs.
In most cases, there is a low level of automation. This means that most process steps, such as order entry, order confirmation or invoicing, are carried out manually. This significantly increases the susceptibility to errors and ties up relevant resources that are needed elsewhere. As a result, significant delays can occur in the ordering process and therefore have a negative impact on customer satisfaction.
Another challenge is the lack of transparent cost overviews, which impairs targeted margin optimization. Without clear cost control, companies run the risk of doing unprofitable business, which significantly jeopardizes profitability.
Advantages of optimizing order processing
Shorten delivery times
Optimizing order management leads to shorter delivery times in line with market requirements. Combined with improved adherence to delivery dates , this leads to greater customer satisfaction. In the medium to long term, this will give your company a real competitive advantage.
Profit increase
By improving minimum order quantities or minimum quantity surcharges, for example, small orders that cause disproportionately high processing costs can be avoided. This directly increases the company’s profit. It goes without saying that this should be carried out with a sense of proportion and with the involvement of the sales department.
Security
The holistic view of order management ensures that the order process is optimized and that the right decisions are made operationally based on clear guidelines.
How do we approach optimizing order processing?
We typically proceed in three steps:
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1
Analysis of throughput times
Only a detailed recording of the throughput times for each process step in order processing creates the necessary transparency for targeted optimization. A comparison is then made between the current lead time and the customer’s desired delivery time. Particular attention must be paid to the requirements of different customer groups/distribution channels or supply chains.
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2
Concept development
In the second project phase, processes and procedures are redesigned and the necessary measures (e.g. target ranges) are developed. We work closely with your employees and jointly develop the concept. This creates initial acceptance within the company. In addition, a detailed implementation plan is drawn up for the design of new procedures/processes.
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3
Implementation
Process-related and IT-related changes often have to be carried out during implementation. We support you with the necessary change management. Only a clean implementation guarantees the long-term success of such projects.
Your contact persons
Dennis Goetjes
Partner
valantic
- Supply Chain Management
- Sales & Operations Planning
- Supply Chain Configuration
- SCM-Organisations
Gereon Küpper
Partner
valantic
- Supply chain optimization
- Chemical industry
- Digitalization
- Software selection