The food industry is a highly competitive market, driven by changing consumer demands and preferences. To stay ahead of the competition, businesses must continuously adapt and innovate, invest in efficient supply chain capabilities, and prioritize exceptional customer service. Unfortunately, many food businesses fail due to a lack of resources or fail to utilize available resources effectively. 80% of food businesses shut down within their first five years and 60% within the first year of operation, due to inadequate cost management. To avoid misaligned planning and fulfillment, food businesses must have better order management to ensure order visibility, order intake to fulfillment, customer support and cash reconciliation process.
The Power of Demand in Complex Consumer Markets: Unlocking Order Management Success
In today’s market, consumer demand is driven by various factors, such as technology, convenience, customization, sustainability practices, social media, and more. To remain competitive, food businesses must have a responsive and effective supply chain that can capitalize on these demand-driven centres. This includes omnichannel presence, quick delivery services, customizable menu options & variety of SKUs, eco-friendly packaging, ethically sourced ingredients, and creating unique & engaging experiences. By understanding and capitalizing on these demand drivers, food businesses can build a loyal customer base and ensure business continuity with efficient management of demand and fulfilment. This is where order management plays a crucial role as it has direct impact on order processing accuracy, increased data visibility, improved line fill rate and more.
The Cost of Inefficiency: How Poor Order Management Can Pose Business Risks
The cost of inefficiency due to poor order management can pose serious business risks for any organization.
- Inefficient order management processes can lead to inaccuracies in order processing and allocation, poor synchronization of order fulfillment processes, and a dip in on-time-in-full (OTIF) performance.
- Absence of a centralized digital system for order management can lead to errors and low order visibility, exacerbating the risk.
- Lack of a dedicated order management team and inefficient utilization of resources can lead to poor co-ordination among internal teams, further increasing the risk.
- The challenge of inventory visibility across the order lifecycle can result in inaccuracies of order fill rates, loss of sales, product unavailability, and stock-outs, causing blockages of working capital.
- High order response and execution times lead to delays in order fulfillment, temperature non-adherence, and product unavailability, posing significant business risks.
- Absence of details across the order to cash cycle and inadequate reports and analytics for planning and decision support can result in inaccurate decision-making and poor governance.
Therefore, businesses should prioritize and invest in effective order management systems and processes to mitigate these risks and ensure better order to cash lifecycle.
Order Management to mitigate these risks and ensure business success
Proper order management is essential to ensure business success and mitigate risks. By standardizing and streamlining order management processes, organizations can significantly reduce order errors and increase the efficiency of order lifecycle management process.
An efficient order management system typically comprises a web-based single window tool, central command & contact center, and clear & concise order management processes.
The impact of effective order management is far-reaching;
- Clear visibility of inventory across the supply chain helps organizations optimize their inventory management practices, minimizing the risk of stock-outs and loss of sales.
- Near-real-time updates of order fulfillment status enables organizations to proactively identify and resolve issues, ensuring that orders are delivered on time and in full.
- Effective customer support can help food businesses to be more responsive and effective at resolving their consumers’ queries and issues.
- Reporting, dashboards, and analytics provide valuable insights for planning and decision support, enabling organizations to make informed decisions that positively impact cash management.
By implementing efficient order management processes, organizations can achieve these benefits and ensure long-term business success through better order to cash lifecycle management.
Do you wish to leverage the power of an efficient and effective order management to give your business the competitive advantage? Partner with us and get access to our team with right experience and know-hows capable of orchestrating people, process and technology to help you smoothly transform your order management capabilities.
Contact us to learn how you can achieve greater visibility and control across entire order-to-cash lifecycle.
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