Using multiple levers for transforming Order management is critical for organizations today. This article discusses the potential of automation in order management, key use cases of automation in order management and the multiple levers for transforming order management.
Customer Experience (CX) is at the forefront of enterprise transformation and Order management, processing & fulfilment form the key pillars of higher CX. Imagine an organization has about 20,000 + corporate customers and assuming around 20 templates for each customer to do order entry, there may be 400,000 unique sales order templates that employees implement using a data capture solution. If each template takes let us say around six hours, total effort spent on order entry will be over two and half million hours, and if we multiply average $/hour salary of these associates, you get the total $ /hour salary spent, and assuming a 50% time savings via automation, the potential is immense.
As per a recent APQC survey , automation saves businesses from $5 to $15 per sales order, and reduces sales order cycle times by > 46 percent. Business leaders realize the need for this transformation as around 30% of supply chain leaders highlighted the need to respond to customer mandates for faster fulfillment as a top business priority and around 36% identify opportunity to optimize their inventory to balance supply and demand via analytics.
A typical order management cycle comprises of steps such as order enquiry, order entry, requesting for quotation, creating a purchase order, processing of the order also known as order fulfilment followed by invoicing the customer, managing returns (if any) and mapping the customer experience.
Let us see how a complete order management cycle looks like, i.e. Figure 1: Typical order management cycle where we try to map the business value chain, as well as attempt to apply digital levers, such as RPA, Cognitive/ Artificial Intelligence and Machine learning to solve parts of the puzzle.