Traditional sales order process pains
Traditionally, purchase orders arrived in a number of ways: in an envelope, through fax, email, or phone, and more recently, as an XML file transfer. To get them into the SAP system, each required its own preparation and transfer process. The one thing they had in common was obscurity – there was no way to have a clear overview of the total order stock, to prioritize, or to filter out customers who had exceeded their credit limits. Furthermore, manual entry of order data took too much time and was subject to errors.
Once the information has been entered into SAP, it should be simple to convert the customer’s purchase order into a company sales order. However, many times it was not. Orders often required extensive personal handling because:
- Customer determination could be complex in the case of distributed customer organizations (complex ship-to, sold-to and bill-to parties)
- The material ordered was unknown due to incorrect part numbers
- The material ordered was known but unavailable
- The pricing did not match
Entered data was validated against stock available, agreed prices etc., and processed into a sales order, triggering production and/or sales and shipment processes.
- Difficult to track order process
- Data validation and check processes are slow
- Exception handling is difficult
Moving to an efficient and effective process
Without cleaning up the process first, companies make the same mistakes again and again. In a recent study, the Aberdeen Group has determined the validity of the Best-in-Class PACE model, where PACE stands for Pressures, Actions, Capabilities, and Enablers:
“Delivering on the promise of an efficient and effective order-to-cash cycle requires a combination of strategic actions, organizational capabilities, and enabling technologies that can be summarized as follows:
- Standardization of processes and systems to remove manual work, drives faster and more accurate results, and improves visibility
- Ongoing communications with colleagues, business partners and customers to guarantee that the necessary information is available to all parties in a transaction
- Continuous monitoring of performance and use of root-cause analysis to identify, document, and remedy deficiencies”
Reap the Benefits of Automated Order Processing
There are multiple benefits to be achieved by automating your orders with dealers, distributors, customers, and suppliers.
- Speed up and simplifies your processes
- Reduces costs
- Increases visibility
- Shortens time sales are outstanding
- Removes errors caused with phone, fax, and email orders
- Improves cash flow
- Improves customer satisfaction
Netfira’s order processing solutions automate business-to-business e-commerce transactions between enterprises and SMBs and SMEs of all sizes, integrating seamlessly with the existing ERP or EDI systems, resulting in a streamlined, electronic buying and selling process. Netfira is SAP certified, cloud enabled and offers both an enterprise license model or a SaaS model.