Gaps within any business process are like bad omens will leave a negative impact on your bottom line. And, if these loopholes exist in your sales order workflow, they will eat up your profits. This usually happens due to a badly implemented workflow that will eventually lead to depleted or dead stock, exhausted cash flow and even result in conflicts between you and your clients.
Here’s three most commonly observed gaps in any sales order management that will lead to lost sales and clients.
Human-Generated Costly Errors
Manual data entry and management can lead to costly mistakes. Your sales order information should be accurate without any typing error and verbal miscommunication between your staff and clients. These errors may include the entry of wrong product codes and quantities, inaccurate prices and billing details or wrong shipping address, etc., in the sales order.
Stock counting with the help of spreadsheets or papers on clipboards will not only slow down the process, but also increases the risk of human errors in your collected data. Another dimension where you may have a maximum rate of human error is when you have to make adjustments in your pricing under particular conditions. Depending on the product category or season, the pricing variations can push your staff to make mistakes – especially, if you are applying advanced price strategies in terms of sales volume and frequency, premium version of the same product, sales events or end of season clearance.
The best solution to reduce human errors in your sales order processing and management is automation through best ERP software. It helps prevent Inventory miscounts, pricing errors, depleted stock, inaccurate SKUs, undelivered orders and everything related to sales order management.
Lack of Data Automation
Monotonous tasks are the most time consuming since staff keeps on repeating the same processes; for instance, manual input of sales order details and inventory information. Unfortunately, several SMEs are still wasting their time and effort in creating and managing sales orders manually. For creating just one order, their staff needs to enter the same information (about product, client and billing, etc.) over and again. And, this is also for different phases – from price estimation to creating sales order, shipping order and then finally generating the invoice.
This is all because of lack of automation that will not only lead to incorrect entry of information, but can also create confusion that will result in losing sales. You cannot afford running your business in the dark and without being sure about the stock to fulfill any given order. To avoid this, you need real-time and automated inventory and sales order records.
Sales order management and fulfilment has become more challenging than ever because you need to manage multiple distribution channels that makes the whole process more prone to human error. It will impede your Order to Cash process that will negatively impact your profit margins. So, you simply cannot afford wasting your time and energy on repetitive tasks. Thereby, you need to automate your business processes for maximized productivity and profitability.
Not Going Paperless
Relying on basic spreadsheets, paper clipboards and word processors for your sales order workflow leads to false economy. This gap will add up to your business investment besides risking the data security during a theft or fire event – when you put your sales and inventory records on spreadsheets on computers. Moreover, sales order workflow isn’t something you can afford to be cutting corners because it brings you increased profits when done quickly and accurately.
Therefore, businesses should go paperless and get rid of old-fashioned sales order and inventory management models through automation. The smartest and cost-effective amongst all solutions is to streamline your sales order workflow with a cloud-based ERP system.
With a fully-featured and scalable ERP solution, you can simplify all complex business processes like sales order using real-time data. Streamline and speed up your order to cash process by switching from spreadsheets to easy-to-use, innovative and affordable software that will help you integrate and automate your sales order workflow for maximized profitability.
Final Thought: Whatever ERP you choose, it must grow with your business needs. MIE Trak Pro is a highly scalable software solution for discrete manufacturers.