Order Processing plays a central role in the operations of a business – especially in FMCG, retail, distribution, and commerce. Building an efficient order processing process brings many benefits in terms of costs, accuracy, customer experience, and revenue growth.
This article by Bizzi will provide detailed information related to setting up an order processing process in general and an online order management process in particular.
The Importance of Order Processing
Order processing is not just a business step, but the core foundation of the entire supply chain - operations - finance. The more professional a business is in order processing, the less risk it has - the more competitive it is in the market.
What is order processing?
- Order processing is the entire process of managing and fulfilling customer orders, turning their expectations into reality. It includes receiving, validating information, preparing, packing and delivering to customers, ending when payment is completed.
- This is a core business activity, including inventory management, supply chain management, quality control and customer support.
- The order processing process is not just a transaction but also shows the business's care and commitment to customers, building trust and long-term relationships.
What is the Online Order Management Process?
Online Order Management is a series of steps from when a customer places an order on an online channel (website, app, e-commerce platform, etc.) until they receive the product, and the business completes related steps such as delivery, payment, and after-sales service. This is an extremely important part of e-commerce and the fast-moving consumer goods (FMCG) industry.
The role of order processing when optimized
- Make sure to close the sale, because “without sales there is no business. Without orders there are no sales.”
- Reduce order cancellation and return rates, contributing to building and maintaining sustainable relationships with customers.
- Cost optimization operations – reducing manual errors
- Improve customer experience (delivery on time - fast - transparent)
- Optimize cash flow, control COD well
- Have data for sales analysis and forecasting
- Create a solid foundation for every business.
- Help businesses stand firm against competitors, promote revenue growth.
What are the 7 steps in the order processing process?
The Order Fulfillment Process, or more specifically the Online Order Management Process, is a series of steps that businesses take to ensure that customers receive the correct, complete, and on-time products. Below are the 7 basic steps in the order fulfillment process:
- Order acceptance: The first moment of the journey where a customer's wishes become reality, whether through an online store, email or call.
- Verify and check orders: Make sure all information is correct before completing an order, including confirming customer information, payment method, and checking inventory to avoid out-of-stocks.
- Product allocation, picking and packaging: After confirming that there are enough goods, the products are taken from the warehouse and carefully packaged according to specifications to ensure quality and avoid damage during transportation. This shows the concern and professionalism of the business.
- Delivery and shipping: Products are dispatched through shipping units, with close monitoring of the entire process to ensure that goods reach customers quickly and intact.
- Invoice and complete payment: After successful delivery, an invoice is generated and the customer makes payment. This is the final but important link in the process.
- Post-order processing and customer care: The process doesn’t end after delivery. Businesses need to listen to feedback, manage returns, and resolve any issues to ensure continued customer satisfaction and maintain a strong relationship.
- Continuous Evaluation and Improvement: Collect data and feedback from departments and customers to analyze process performance, identify strengths and weaknesses, and drive innovation, ensuring processes always meet market needs.
Challenges in processing orders during peak season
During peak seasons (Tet, Festivals, Black Friday, Back to School, etc.), businesses' order processing processes – especially in the industry FMCG, retail, e-commerce – often face serious challenges that, if not properly prepared, can lead to lost customers, returns, financial and reputational damage.
Here are some common challenges:
- Management during peak periods (peak season)
- Peak season brings with it great pressure not only from the sudden increase in orders but also from special requests and high expectations from customers.
- Meeting a service level agreement (SLA) is a promise that must be kept, even if order volume triples, quadruples, or quintuples.
- Warehouse employees face pressure to maintain high performance, as customer trust depends on timely and accurate order fulfillment.
- Customers expect to receive their orders quickly, even faster than usual.
- Common operational barriers
- Lack of a standardized online order management process can lead to errors in packaging and delivery, affecting business results.
- Manual processing can slow down order processing times, cause confusion, missed orders, and lost goods, negatively impacting business reputation.
Benefits of an optimized order processing process
An optimized online order management process not only helps businesses operate efficiently, but also creates a competitive advantage, especially in the FMCG, retail or e-commerce industries. Here are the outstanding benefits:
- Save time and money: Automate and streamline repetitive steps to reduce processing time and labor costs.
- Efficient inventory management: Easily track actual stock status, prevent out-of-stock situations and ensure timely import to meet customer needs.
- Reduce errors and increase accuracy: Reduce errors such as wrong addresses, missed orders, lost goods, improve customer experience and reduce complaints.
- Optimize shipping and delivery processes: Closely monitor the entire shipping process, helping to quickly detect and handle problems such as lost orders and damaged products.
- Building a data-driven business strategy: Tracking and classifying orders properly helps evaluate the business performance of each product type and determine customer needs, thereby developing the most effective and long-term business strategy.
- Strengthen customer relationships: Completing orders accurately and promptly builds trust, loyalty, and encourages customers to return to shop.
Leverage technology to optimize order processing
Technology is an indispensable partner in modern logistics, optimizing processes and improving efficiency through solutions such as automated picking systems and robotic automation. Embracing new technology is a decisive factor in maintaining competitiveness and coping with future challenges.
Bizzi: Comprehensive cost control and automation solution
Bizzi provides a comprehensive cost control system for businesses, acting as an AI assistant for the finance and accounting department in automating the revenue and expenditure process.
Integrating more than 30 features to help businesses streamline and automate cost management, debt collection and B2B payment processes, Bizzi's outstanding solutions include:
- IPA + 3way (Processing, reconciling and managing input invoices):
- Automatic processing of input invoices: Use Bizzi Bot with RPA and AI technology to upload, check and reconcile invoices, especially important for verifying financial documents related to order processing.
- Automatic invoice reconciliation – PO – GR: Reconcile invoice details with purchase orders (POs) and warehouse receipts (GRs) in real-time to detect discrepancies, ensuring financial accuracy during order fulfillment.
- Verify valid supplier: Check the Tax Identification Number (MST) and operating status of the supplier on the tax system, enhancing the verification layer for input goods related to the order.
- Automatically record and store invoices & risk warnings: Automatically store input invoices for 10 years and alert on invoices from suppliers that show signs of risk, protecting businesses from financial errors related to orders.
- API Integration with ERP & Accounting Systems: Synchronize data with existing accounting software and enterprise resource planning (ERP) systems, providing a unified view of order-related financial data.
- B-invoice (Electronic invoice):
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- Create electronic invoices according to prescribed standards: Generate electronic invoices that meet tax authority requirements (XML/PDF format), ensuring legal compliance for the “Invoicing and Payment” step.
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- Custom Invoice Templates & Bulk Export: Allows businesses to design custom invoice templates and issue multiple invoices at the same time according to orders and customers, improving efficiency in closing order transactions.
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- Authentication code from tax authority & archives: Direct connection to tax authority systems to authenticate invoices and store for a minimum of 10 years, ensuring solid financial records for every order.
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- Look up & manage invoice status easily: Provides the ability to search, download, print and track invoice status (issued, sent, paid, canceled or adjusted), optimizing post-delivery financial processes.
- ARM (Accounts and Asset Management):
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- Automatic debt reminder: Creating automated debt reminder scripts via email and text messages is crucial to collect payments promptly after orders are delivered.
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- Comprehensive debt management: Track and reconcile accounts receivable and payable, monitor key metrics like DSO (Days Sales Outstanding), and generate aging reports, ensuring healthy cash flow from completed orders.
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- Debt due warning: Provides alerts when debts are close to payment deadlines or show signs of being overdue, helping businesses proactively manage finances related to order completion.
This ensures that operational costs associated with order processing (e.g. packaging material purchase costs, internal shipping costs) are tightly managed and policy compliant.
Conclusion: The Future of Efficient Order Processing
Overall, an optimized order fulfillment process, driven by strategic planning and advanced technology, not only helps fulfill orders but also delivers a superior customer experience and drives sustainable business growth.
With the powerful support from Bizzi's superior utilities, businesses can automate important financial and operational aspects of the order processing process, bringing significant benefits in terms of time, cost, minimizing errors and improving efficiency across the entire order fulfillment journey.
By applying integrated technology solutions, businesses can turn challenges into opportunities, building a strong and sustainable future based on customer trust and operational excellence. To receive a consultation and experience Bizzi's solutions, register here:
- Link to register for a trial of Bizzi products: https://bizzi.vn/dang-ky-dung-thu/
- Schedule a demo: https://bizzi.vn/dat-lich-demo/