ERP Systems and their Role in Sales Order Management
Sales order management, also known as sales order processing, allows your ERP system to track each sale from beginning to end. Although each type of ERP can do this, there are some advantages to choosing one over the other. For example, N41’s ERP inventory management system sets them apart from the competition by virtue of its many benefits, including:
- Designed by industry experts.
- Scalable and versatile.
- Innovative features (integrated UPS API, built-in order approval request form, etc.).
- All-in-one system.
- Superior service.
- Modular design with single source code.
- Rapid implementation.
- Highest customer retention rate.
Let’s take a closer look at what exactly sales order management means, along with what an ERP (enterprise resource planning) can do for your company.
What is a sales order?
To put it as simply as possible, a sales order is confirmation that a customer has ordered your product(s). Despite being called a sales order, it’s usually a binding contract between your company and your customer. In fact, a sales order typically comes after you’ve given the customer a quote and they’ve accepted it.
ERP Basics and Their Relation to Sales Order Management Explained
To understand how sales order management ERP works, let’s step back for a moment to determine what an ERP system does. You’ve already seen the perks of one ERP, but we didn’t explain the nuts and bolts behind the system. Essentially, an ERP allows you to manage your daily business activities, including procurement, accounting, risk management and compliance, project management, and supply chain operations.
When it comes to sales order management, an ERP can streamline everything. For instance, once a sales order is entered into the system, an ERP will track the process and create an invoice. Before this, though, the goal of an ERP is to follow the entire flow: quoting, transaction, order picking, and any logistical challenges. This entire process becomes easier to track and more efficient with an ERP system.
ERP systems vs stand-alone sales order management software: Which is better for your business?
Standalone sales order management software may be initially more attractive, but it’s going to cost you in the long run. That’s because they have limited functionality, plus they’re isolated from any other applications you may have. If you were to sell only one product, this would work. However, once you get into the pros and cons of using standalone software, you’ll find out that an ERP is better for you in almost every single case.
If you choose an ERP, you’ll benefit from:
- Flexibility.
- Ease of integration.
- Ease of communication.
- Cost-effectiveness.
Other perks of selecting an ERP include:
- Streamlined processes.
- Reduces mistakes made during data entry.
- Everyone will work from the same data.
- Scaling upward is easy with an ERP.
- Real-time data is always available.
- You can see the entire picture at once.
Meanwhile, if you opt to use a standalone system, it’s going to have some significant cons:
- Scaling challenges.
- Limited access.
- Monitoring difficulties.
- Higher costs.
These cons definitely outweigh the pros of using a standalone system, which includes simplicity, convenience, and resource allocation. When it comes down to it, choosing an ERP system just makes good sense for almost every business type.
Manage Your Orders Effectively with an ERP System
To get the most out of your ERP system, you’ll want to ensure it offers a mobile sales order management app. That way, you can place orders from anywhere! Other tips for more effective ERP sales order management include:
Automate Order Processing
Eliminating the need to use manual data entry will improve your productivity and efficiency.
Centralize Order Data
With real-time access to customer data and product information, you’ll be able to make faster, more accurate decisions.
Efficient Inventory Management
Automated triggers to ensure you replenish stock will improve customer satisfaction. Additionally, effective inventory analysis and reporting make it a breeze to decide what to keep stocking versus what to retire.
Improved Demand Planning
Historical data will provide accurate demand forecasting. Furthermore, this helps you with resource allocation and the reduction of lead times.
Real-Time Order Tracking
Improve your customers’ experience by providing visibility into their order status. Transparency ensures that each customer knows exactly where their order is, along with when they should receive it.
Enhanced Customer Relationship Management
Make personalized marketing campaigns by using your customers’ preferences. You’ll also be able to communicate with your customers more proactively and resolve any issues that arise.
Efficient Order Fulfilment
Using an efficient fulfillment process means you’ll have timely processing on all your orders. There will also be more efficient picking, packing, and shipping, which will reduce your turnaround time.
These are just a few of the many reasons that an ERP system is the best choice for your business!
Ask for Your Free ERP Demo
At N41, we offer a robust Sales Order Management system that’s integral to our ERP solution. This system efficiently manages the entire order process, from sales orders to invoices, ensuring flexibility and ease of use. Our Sales Order Manager streamlines approval, allocation, pre-authorization, and picking on a single interface.
We invite you to explore the full potential of our ERP system by requesting a free demo. With an unprecedented 99% customer retention rate, we’re confident that our Apparel ERP solution will immediately spark your interest!
