Over-the-counter sales are not the only mode of buying these days. Consumers prefer placing by telephone, WhatsApp, an online ordering app, or through marketplace aggregators that they can then pick up at the store. The pandemic played a major role in this surge in sales orders. This surge has also given businesses the advantage of eliminating location dependency and unleashed possibilities like dark stores, cloud kitchens, drop shipping, and the like.
Each business spends quite a heavy effort in acquiring customers or generating demand through various ordering channels. However, all those investments go in vain if these orders are not served within the right time, with the right quality, and with the right experience. After discussing order management challenges with hundreds of aspirational retailers like you, the top 8 popular mistakes made while managing orders, as well as their solutions, have been gathered for this blog post.
What is an order management system?
An order management system helps companies manage and track their sales orders from start to finish. Think of it as a central hub that handles everything related to orders, from order placement and inventory management to order processing, shipping, and even customer service. It ensures smooth operations, reduces errors, and keeps customers happy by ensuring orders are fulfilled accurately and on time.
8 online order management mistakes that kill your brand
1. Poor order-picking process
As a consumer, have you received the wrong package or experienced delayed orders? Behind the scenes, disorganized warehouses and procedures often lead to mix-ups, causing delays and disappointing customers. The core of order fulfillment problems relies on efficient picking processes. Disorderly warehouses, a lack of picking procedures, and insufficient staff training result in wrong shipments, delays, and unhappy customers. Inconsistent methods across channels make it even tougher—nearly 4 in 10* businesses struggle with these order management issues.
2. Handling common inventory
Imagine having a store but no clue what’s in it. Mixing inventory across sales channels is like working blindfolded; you end up with too much or too little of everything. Around 46%* of businesses struggle with order management challenges due to scattered systems. This chaos leads to overselling and underselling, impacting both customer satisfaction and profits. Without a clear strategy, managing inventory across diverse channels leads to order fulfillment problems like stock discrepancies, shortages, or excess stockpiles.
3. Disconnected sales channels
Have you ever spotted different prices online and in-store? Sales channels can sometimes seem from different worlds, leaving customers puzzled. This lack of integration creates confusion in product details, pricing, and orders. Approximately 42%* of consumers encounter inconsistent information due to order management challenges of disconnected channels. The separate operation of in-store POS systems, online platforms, and aggregators causes disjointed experiences and inefficiencies.
4. Delivery routing issues
Ever wonder why your package took the scenic route? Efficient delivery means choosing routes wisely, but without it, delays and rising costs become routine. Nearly 67%* of businesses face increased transportation costs due to order fulfillment problems caused by inefficient routing. Optimal route planning is crucial for timely and cost-effective fulfillment. However, poor planning leads to delays, missed windows, and unsatisfactory customer experiences.
5. Lack of choices for customers
Customers crave variety and options, especially in order fulfillment. A lack of choices in products, payment methods, or delivery preferences might drive customers to competitors offering a broader selection of order fulfillment options. Failing to meet diverse needs in how customers receive their purchases may lead to lost sales and decreased customer loyalty. Offering various options like in-store purchases, home delivery, online purchase with in-store pickup, or online payment in-store can significantly impact customer satisfaction and retention.
6. Disconnected systems
When departments work in isolation, information gets lost and updates lag, leaving customers in a loop of confusion. Siloed systems hinder seamless operations, causing delays in updating order statuses, inventory levels, and customer information. This results in inefficiencies and errors, impacting a consistent and reliable customer experience.
7. Communication gaps in order status
Customers expect constant updates and real-time information about their orders. When brands fail to keep customers informed about their order status, it creates a disconnect. It’s akin to being left in the dark without any idea of what’s happening with something important to you. This lack of communication leads to frustration and a sense of being neglected. Consequently, customers may feel compelled to switch to brands that prioritize effective and consistent communication, leaving the brands that fall short with order management challenges and order fulfillment problems behind.
8. Review management
Ignoring customer reviews, good or bad, can push customers away. Managing customer feedback and reviews is crucial in shaping a brand’s reputation. Neglecting to address or mishandling customer reviews can significantly impact brand perception. Failing to respond promptly or appropriately to feedback, whether positive or negative, can undermine efforts to build trust and credibility.
*Data source:https://www.vml.com/insight/the-future-100-2023
What are the solutions for order management issues?
Gofrugal presents a comprehensive suite of solutions tailored to tackle the intricate order management challenges of online order management head-on.
Optimized order picking and inventory management
GoSure ensures precision in order fulfillment by streamlining inventory management. Bid farewell to wrong shipments and delays caused by disorganized warehouses. It empowers businesses with real-time inventory insights, reducing discrepancies, and ensuring accurate order picking across various sales channels. By preventing overselling or underselling, you can ensure stock consistency across platforms, enhancing customer satisfaction and profitability.
Seamless integration with POS
Gofrugal POS software eliminates confusion caused by inconsistent information across sales channels. Gofrugal integrates in-store POS systems, online platforms, and aggregators, providing a seamless customer experience. You can say farewell to disjointed operations and inefficiencies that stem from disconnected sales channels that lead to order management issues.
Efficient delivery routing via mobile-based delivery management
GoDeliver optimizes delivery routes, slashing transportation costs and ensuring timely deliveries. No more scenic routes—GoDeliver’s route planning minimizes delays and enhances overall customer satisfaction, addressing potential order fulfillment problems.
Expanded customer choices
Gofrugal offers customers a diverse array of choices in products, payment methods, and delivery preferences. With Gofrugal’s broad spectrum of integrations, you can prevent customer attrition due to limited choices, bolster sales, and foster customer loyalty, therefore, addressing potential order management challenges.
Unified systems and seamless operations
Gofrugal breaks down siloed systems, ensuring seamless information flow across departments. No more delays or confusion—Gofrugal’s unified approach eradicates information gaps, ensuring accurate order updates and inventory management.
Ready to level up?
Gofrugal simplifies online order management effortlessly. It optimizes stock handling, streamlines systems, and ensures smooth deliveries. With Gofrugal, manage orders efficiently, expand market reach, and boost sales with minimal staff and resources. It’s the smart choice for businesses aiming to excel in online operations. Start streamlining your order management today for enhanced business growth.
