Order management is a process counting several stages, that always occur in a similar order. Customers requiring a product place a physical or automatic order electronically. The goods are conveyed via all useful means, and the customer receives them. This last stage is the final one in the process. Obviously, order management is closely linked to stock management (produced and/or purchased upstream). Without sufficient stock levels to satisfy customer needs, regardless of the quantity ordered, the order cannot be managed properly. Without sufficient production, order management is impossible.
For producers, the following order management stages are standard:
Inventory is the main focus point when aiming for efficient order management. Order management is the process whereby orders are placed either directly or via a storage platform. An inventory of usable or sellable goods, available in storage and in-store, allows for proper stock management.
Stock management operations unfold as follows:
Order management has an impact on how the entire supply chain operates. There are two different examples to be taken when talking about order management: for finished product manufacturers and distributors.
Ordering software is configured based on theoretical stock levels, which must come as close as possible to actual stock levels. Upon purchase, every time a mistake or oversight occurs, it creates an error in the actual stock numbers. To resolve the issue of order management, unwavering command of your stock levels is necessary on the computer, and accurate sales must be foreseen.
For producers and distributors alike, sales forecasts take company history, seasonality and any changes in standards or laws into account. This being said, each product has its own appeal, date of obsolescence and expiry, and meets seasonal marketing incentives (Christmas, New Year, Easter, summer, winter, etc.). Sometimes, a simple change in a standard or law can cause a rise in sales. Statistical anticipation is a favourite amongst buyers in the industrial and distribution field.
For professional and private end customers, order management implies virtual or physical exchanges with the logistician when the goods are on their way. Each step is an opportunity to lose or gain the customer’s trust. To the detriment or for the benefit of the logistician’s and retailer’s or producer’s income.
 Source of the figures: https://www.lsa-conso.fr/decouvrez-la-veritable-facture-du-vol-en-magasins,322496