Business Process Outsourcing for Order Entry Management in Retail: Why It Makes Sense

“The world is now a global village,” This is not a quote anymore but a reality. Retail stores have taken over the internet. They’ve become highly tech-oriented giants like Amazon, Alibaba, and more. Retail is no longer a heavy operations business. With the entry of OMS (Order Management Software), businesses have managed to cut costs. They are growing at a tremendous pace while keeping up with one of the vast markets of the Internet. One way that is gaining popularity is business process outsourcing.   

To be at par with today’s fast-paced retail environment, businesses must focus on their core competencies. They must also ensure that their order entry management process is seamless and efficient. Outsourcing order entry management to third-party providers helps businesses in many ways. One of the prime examples of such outsourcing is third-party provider Shopify. It is reported to have helped over 6 million stores have a global presence.

This article will explore order entry management from different angles. You will also learn why it makes sense for retailers to outsource their order entry management.

Order Entry Management is receiving and processing orders from products to services for customers. In retail businesses, it involves managing the end-to-end process of many aspects. These include receiving customer orders, checking product availability, validating payment, processing the order, and fulfilling the order.

Retail is a consumer-oriented business. Order entry management in retail is one of the key factors to its success. As we know, this is the process through which a business acquires a customer’s orders and fulfills them efficiently. The journey involves capturing orders. These orders can come through various channels, such as via phone, email, or online websites. The next step is to verify and process the details of each order.

Order entry management is not just limited to order fulfillment. It also includes some operational tasks. These are inventory management, shipping, and tracking customer orders until they reach the end consumer. Such tasks may seem insignificant to the profitability of a retail business. But, in reality, they are the backbone of any retail business.  

An efficient entry process ensures that consumer orders are fulfilled accurately and quickly. It leads to increased customer satisfaction and retention rate. Order entry management directly affects customer satisfaction. So, it is one of the most critical aspects of retail businesses. Therefore, order management ensures your current business goals are met. This results in increased customer loyalty, which in turn gives return business.

We have already touched on why Order entry management is crucial for any retail business to succeed. But let us discuss in-depth some key value it adds to retail or any business:

1. Improve Customer Satisfaction

As the saying goes in any retail business, “consumer is the king.” And what experience your consumer gets is crucial. From placing to receiving their order, it is sometimes more important than the product itself. The way order entry management works is important. It provides a consumer with end-to-end support. This helps them get their order quicker and more accurately. As a result, it leads to greater customer satisfaction.  

2. Increase Efficiency

Any streamlined process helps businesses reduce errors. It also minimizes manual intervention and saves time. Thus, it increases efficiency. Such is the case with order entry management as well. It is efficient and can lead to cost savings. Ultimately, it can increase profitability for any business.

3. Manage Inventory

Any successful retail business requires a rich inventory. It ensures order fulfillment. Keeping a rich inventory is only one of many challenges. Order entry management can help businesses overcome other challenges. It is done by keeping track of their inventory and monitoring stock levels. It also ensures that businesses have the necessary stock to fulfill customer orders. All these can reduce waste and minimize stock-outs. This results in business costs and time savings.

4. Enhance Profitability

A well-managed order entry process also aids in achieving a reduced need for manual intervention. It minimizes errors and improves the efficiency of the order fulfillment process. The combination of all ultimately paves the path to profitability for any business.

Outsourcing order entry lets businesses focus on core competencies. This competence could be manufacturing the product. Also, there are other benefits of outsourcing services. These are:

1. Cost Savings

Performing any task in-house requires hiring, managing, and training staff. This is hectic and takes time and focus away from other core tasks. Business process outsourcing solutions can help businesses save costs. BPO companies reduce the need to hire and train in-house staff. There is no need to invest in technology and infrastructure. Also, businesses don’t need to manage the associated overhead costs. Thus, outsourcing companies help cut costs. This is very important for any growing or even established business.

2. Scalability

Outsourcing order entry management allows businesses much-needed flexibility. They can scale upwards or downwards based on their business needs. They don’t need to worry about managing the associated overhead costs. Thus, businesses can be more responsive to changes in demand. BPO services companies make this possible without significant costs.

3. Expertise

Outsourcing to a specialized service provider can provide businesses with the needed in-field expertise. It enables them to benefit from the best BPO practices. These include BPO automation, cutting-edge technology, and the latest tools and techniques. Thus, outsourcing enhances the efficiency and accuracy of order fulfillment.

4. Reduced Risk

One of the major benefits of business process outsourcing is reduced risk. Outsourcing order entry management also helps businesses to mitigate risks. The best BPO companies always comply with regulatory requirements and industry standards. Therefore, outsourcing provides disaster recovery and business continuity planning. It also helps reduce risks of disruptions to the order fulfillment process. Thus, outsourcing can impact on customer satisfaction and loyalty.

5. Focus on Core Competencies

Order entry is not a core competency for most retailers. Most have other expertise, such as product development. They also focus on marketing and sales. Outsourcing the order entry management lets them have add-on competence without shifting their focus from what they are good at, leaving the operational details to the outsourcing service provider. It enables businesses to improve their competitiveness and focus on their strategic objectives.

The US retail market size as of 2021 was 4.55 trillion. It was growing continuously at a CAGR of over 3%. Though the market size is humongous but is cluttered. It also has cut-throat competition. So, retailers in the US face several unique challenges. It is especially when it comes to Order entry management which includes:

1. High Labor Costs

One of the highest labor costs in the world could be seen in the US. This high cost presents a challenge. It affects retailers’ ability to maintain profitability. Managing their order entry process in-house becomes difficult. As when the competition is as cut-throat as in the US, the profit margins are as slim as it gets. Therefore, it makes more sense to outsource.

2. Complex Regulatory Environment

A range of federal, state, and local regulations are in place. This can make it challenging to manage the order fulfillment process for standard retailers. It could be easier for a specialized outsourcing company instead.

3. Technological Advances

As a leader in technological advances, US retailers must stay current. They need to adopt the latest tools and techniques to remain competitive. Small or medium-sized businesses have inadequate resources. So, it is not easy for them to invest in the latest technology. So, it makes sense to get hold of the best BPO provider for this.

4. Increasing Customer Expectations

With rising competition in supply, customer expectations are increasing. They demand faster and more accurate services. They also seek more personalized services. So, it can be challenging for retailers to deliver in-house. It is especially true during peak demand periods. Thus, an outsourced order management system gives an edge to a retailer. It enables them to keep the product quality.

Thus, US retailers can use BPO for efficient business growth. An outsourcing company can help them with cost-effective, scalable, and customized solutions. By outsourcing order entry, retailers can concentrate on their key strengths. It is, therefore, a standard practice. Over 60% of businesses are seeing outsourcing in one or another kind.
 

ARDEM provides a comprehensive suite of Retail Business Process Outsourcing (BPO) Services. It is to optimize the efficiency and accuracy of retail operations. These services encompass everything from sales order management and data entry to accounting services. This also includes accounts payable, receivable, and invoice processing.

1. Efficient Sales Order Processing

ARDEM streamlines the sales order process. A dedicated team ensures the order management system is up-to-date. It maintains agile and efficient operations. Our team accurately captures data from purchase orders or e-commerce transactions. This meticulous attention to detail not speeds up the processing time. It also enhances the accuracy of each transaction.

2. Data Enrichment Services

ARDEM’s data enrichment services help retailers enhance their databases and e-commerce platforms. This makes them more insightful. Updating product descriptions and conducting competitive analyses help retailers. They can make data-driven decisions easily. It improves customer experiences and increases competitiveness.

3. Sweepstakes and Rebate Data Entry

The processing of sweepstakes and rebate forms is crucial. It is needed for product promotion and customer retention. ARDEM efficiently manages these processes. We ensure that data from these campaigns is accurately captured. This data is then utilized to foster customer loyalty and satisfaction.

4. Streamlined Order Fulfillment

Outsourcing order fulfillment with ARDEM involves meticulous management of back-office tasks. These are data entry, label creation, and invoicing. This approach ensures timely and accurate delivery. It also allows scalability. This accommodates growth without sacrificing service quality.

5. Loyalty Program Data Management

Managing data for customer loyalty programs is crucial. It helps understand consumer preferences. It also helps enhance marketing strategies. ARDEM’s data entry services collect and analyze customer information. We provide valuable insights. These insights help tailor marketing efforts to better meet consumer needs.

6. Effective SKU Management

ARDEM assists retailers in managing and optimizing their SKU inventory systems. This service improves product visibility. It also helps retailers monitor sales performance more effectively. Thus, we enable better inventory decisions.

By partnering with ARDEM, retailers can use these business process outsourcing benefits. They can focus more on their core business areas. It will help them enhance operational efficiencies. This strategic approach simplifies internal processes. It improves customer satisfaction with personalized, efficient service.

As seen, managing order entry is a crucial process for retail companies as it affects their key components, customer satisfaction, and loyalty. By outsourcing this process, companies can achieve cost savings, scalability, access to expertise, and the ability to focus on their core strengths, which reduces risk.

US retailers encounter distinctive obstacles in order entry management, such as high labor expenses, complex regulations, technological advancements, and rising customer expectations. By outsourcing this function, US retailers can tackle these difficulties and maintain competitiveness in the rapidly changing retail industry.

ARDEM is a leading provider of retail industry outsourcing solutions, serving a wide range of clients across the country. The retail industry faces various challenges, and one of the most significant ones is maintaining an efficient process to deliver quality work within a strict deadline.

This is where ARDEM’s outsourcing solutions can help. We provide a range of services, including order entry, invoice processing, conversion costs, document management, and other tasks that can help reduce workload pressure, allowing you to focus more on improving customer service. With our expertise in manufacturing industry outsourcing solutions, you can streamline your processes, improve efficiency, and enhance the overall quality of your work. 

ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs.  For more information please reach out to us  at pricing@ardem.com or call us at 908-359-2600.