Order management is defined as the administration of business processes related to purchase requests or orders for a company's goods.
It also involves tracking whether you have the inventory to fulfill orders, managing data around vendors who are going to supply that inventory, delivering the order to the customer, managing payments and returns.
To simplify, order management process can involve following people and functions:
The customer who places the order.
The sales and/or customer service agent who discuss the order with the customer and enter the order into the system to be filled.
The warehouse that stocks the inventory to fulfill the order.
Vendors that can supply parts or stock when inventory is low.
Courier company that delivers the order to the customer.
Back office functions such as accounts receivable, accounts payable and general ledger that generate invoices and accept payments.
It also keeps a record of customer returns and refunds.
Order management is important primarily in the retail industry because a well-implemented system can help in improved sales visibility, improved customer relations, and efficient order processing with a minimum number of delays and customer returns.
How to videos: