How to Streamline B2B Order Management for Efficiency

Nowadays, more than ever, time is money. In the constantly evolving world of B2B and B2B eCommerce, saving time when managing daily operations is crucial to improving customer satisfaction, increasing profit and revenue, and fueling business growth.

Efficient order management is the golden key for any B2B business striving to achieve these goals. How exactly? Imagine your wholesale business seamlessly processes orders with lightning speed, maintains inventory levels just right (perfectly balancing overstock and understock), and keeps customers happy and satisfied with real-time updates on their order status and delivery timelines.

Ultimately, streamlining order management can transform your business. In this article, we’ll explore how wholesale businesses can elevate B2B order management and achieve peak efficiency.

What is order management?

B2B order management entails overseeing all processes related to an order life cycle, that is, everything that happens after customers place an order. Specifically, order management includes:

• Accepting and processing orders
• Managing inventory and picklists
• Packing and shipping products
• Handling payments and generating invoices
• Providing customer support, including updating customers about the order status
• Processing return authorizations and refunds
• Reviewing order-related data

Considering the intricate nature of B2B orders and the numerous stakeholders involved (customers, sales reps, suppliers, warehouse staff), streamlining these processes is pivotal for a business’s success. Efficient order management ensures timely deliveries, satisfied customers, fewer errors, and lower costs.

4 ways to efficiently manage B2B orders

Optimizing your order management processes offers indisputable advantages to any wholesale business. Below, we explore four ways to reap these benefits.

1. Automate order processing

Efficiency and automation go hand in hand. Automating order processing allows you to complete what once took hours in just a few seconds, reducing the risk of manual errors because all necessary information is sourced directly from customer orders. A report from Zapier reveals that 88% of SMBs state that automation enables them to compete with big companies, allowing them to move faster, spend less time on busy work, reduce errors, and offer better customer service.

Smart software, like a B2B eCommerce platform or an order management system, handles essential yet repetitive tasks. This way, you can forget about capturing orders, sending order confirmations or status updates to customers, updating inventory levels, or generating invoices.

2. Create a B2B customer portal

Reports indicate that 70% of B2B customers expect a company’s website to include a self-service application that allows them to handle orders and transactions independently. A B2B customer portal is an online self-service platform accessible via the web or mobile.  It enables buyers to:

• Manage their accounts
• Review their orders and order history and re-order quickly
• Select preferred payment methods
• Track order statuses and shipments without having to interact with your or your sales reps
• Message you about their orders

Additionally, a self-service portal increases customer satisfaction and efficiency in handling customer queries by up to 80%. Simultaneously, wholesalers benefit from a single outlet to collect and process orders, significantly enhancing operational efficiency.

3. Connect with essential business systems

Integrating your B2B eCommerce platform or ordering system with tools like accounting, Enterprise Resource Planning (ERP), or inventory systems facilitates smooth data flow, reduces errors, and unifies operations. Having all essential information in one place allows you to easily handle order data and finely tune team coordination among your sales, finance, and warehouse teams.

4. Enhance inventory management

Having the right products available at the right time is central to effective order management. Automating inventory management means avoiding overstocks and stockouts, keeping track of stock levels, and optimizing stock control. Here are some strategies to help you strike the perfect balance:

• ABC analysis: Categorize inventory based on value and turnover rate and prioritize inventory management for higher-value products. A food distribution company may categorize items nearing expiration as “A” and more preserved products as “B” items. This way, it can push “A” items to sell faster while ensuring they’re readily available.
• Just-in-Time (JIT) inventory: Get goods when they’re necessary for production to reduce relevant holding costs. For instance, a cabinetry manufacturer may receive specific components just in time for assembly, cutting down on storage costs.
• Regular inventory audits: Maintain inventory level accuracy through systematic audits and cycle counts. A clothing supplier might conduct daily audits for summer beach dresses and weekly audits for the same items in the winter to keep precise records of current stock levels.
• Forecasting: Use historical data and market trends to predict future demand and plan your inventory. For instance, a holiday ornament company might analyze sales data from previous holiday seasons to forecast demand for upcoming holidays and ensure that popular items are available.

B2B eCommerce platforms can enhance inventory optimization. These platforms enable real-time inventory monitoring and updates, present buyers with product quantity, allow backorders, or integrate with your inventory management systems. Also, they offer analytics features to review historical data, predict trends, or create discounts for underperforming items.

What else to consider?

Apart from the strategies presented above, there are additional ways to streamline your B2B order management for efficiency. These may include the following:

1. Measure your B2B order management efficiency: Regularly consult the relevant data and analytics tools to identify and track Key Performance Indicators (KPIs), identify areas for improvement, and measure your success. Relevant KPIs may involve the average order processing time, order accuracy, fulfillment time, and inventory turnover rate.
2. Look for innovative opportunities to improve customer experience and order management: Use your B2B eCommerce or order management system to develop creative ways to employ its functionalities beyond processing orders and monitoring inventory levels. For example, our customer Tradewinds guarantees buyers a quick turnaround time by employing status labels to note that specific items are available or low in stock. The company incentivizes customers to switch to similar products (e.g., opt for another color) if they see an item low in stock or want a quick turnaround time without compromising its excellent customer experience. At the same time, it avoids stockouts that would hinder order fulfillment.
3. Build strong supplier relationships: Ensure a smooth management process by collaborating closely with your suppliers. Some B2B eCommerce solutions offer supplier modules that allow them to add products and review orders for items they offer. Better supplier collaboration means more transparent communication, timely deliveries, better inventory management, and more reliable demand forecasting. Also, you can monitor their performance, share feedback, and stay on top of extraordinary supply chain disruptions.
4. Use a platform or an app for sales reps to submit customer orders: Streamline B2B order management by monitoring sales rep performance and their closed deals by having all order information in one place. This approach lets you enhance efficiency and, also, access data to improve customer experience and improve operations.
5. Offer direct-to-consumer (D2C) shipping: Reduce delivery times and enhance order management without relying on traditional distribution channels. This way, you can gain better control of your supply chain and inventory control and streamline order fulfillment. Also, providing D2C shipping, you can get a significant advantage over competitors who only offer shipping to their direct customers.

Final words

Streamlining B2B order management is critical to improving daily operations and customer satisfaction and driving growth and efficiency for your wholesale business. It involves a multifaceted approach, from creating a dedicated B2B customer portal to automating order management-related processes. Investing in a B2B ordering or eCommerce platform can help you optimize your operations and set your business on the right path for long-term success.

Request a demo today and explore how our powerful B2B eCommerce platform can make order management easier and more effective for your business.