Order management in the supply chain begins the moment a customer places an order and ends when the product is delivered correctly and on time. It involves several steps such as order processing, shipment, inventory management, and customer service.
One of the most critical elements of successful supply chain management is, without a doubt, effective order management. Therefore, it is essential for suppliers and procurement teams to use a reliable order management software to monitor order activities efficiently.
What Is the Main Goal of a Supply Chain?
The primary goal of a supply chain is to create an order that meets customer needs, fulfill expectations completely, and ensure a high level of customer satisfaction.
To achieve this, order processes must be completed within the planned delivery time, in the requested quantity, and according to the required quality standards. Moreover, real-time and transparent information sharing with the customer throughout the process—from order receipt to final delivery—is of utmost importance.
How Does an Order Management System Work? What Are Its Stages?
Order management is a holistic process that starts from the receipt of a customer order and continues through order processing, invoicing, shipment, delivery, and payment.
Businesses must manage this process efficiently to maintain smooth commercial operations. Order management systems are developed to ensure this process is run efficiently, effectively, and systematically. By digitizing traditional steps, they reduce errors and enhance operational efficiency. A typical order management system includes the following stages:
1. Defining New Product Information and Updates
In supply chain processes, it’s vital that all data related to product movement remain up-to-date and accessible within ERP and warehouse management systems.
Key product details—such as product code and name, barcode number, conversion ratios, shelf life, unit weight, and volume—must be shared in real time with supply chain partners through system integration to maintain operational harmony and data consistency.
2. Determining Order Frequency and Lead Times
Accurate planning of order frequency and delivery times plays a key role in managing warehouse and distribution center operations, optimizing resource use, and minimizing logistics costs.
Systematic analysis of these parameters directly impacts the overall operational performance of the supply chain.
3. Order Receipt and Confirmation
Companies in the supply chain should use a shared digital platform to exchange order information instantly and without interruption.
Delays in transmitting orders can extend delivery times and negatively affect safety stock levels.
Thus, once a customer or procurement order is created and approved in the ERP system, it should be shared immediately through a platform that both parties can monitor. This enables order processes to flow more transparently, quickly, and seamlessly.
4. Material Preparation and Picking
The picking phase in order management ensures that products are collected from the warehouse on time and without error.
It is crucial that the correct products are selected in the right quantity to meet customer demand.
This is one of the most critical stages of the process, as any losses during material handling can only be avoided through careful supervision by experienced staff.
5. Packaging and Quality Control
Proper packaging is important not only for aesthetics but also to ensure that the product arrives intact.
Products that are fragile, require cold chain handling, or need special labeling must be included in this process.
6. Shipment and Delivery Information
The goal of product traceability in the supply chain is to reduce uncertainty in delivery.
Knowing where a product is and when it will arrive eliminates the need for excess stock.
Modern warehouse and delivery systems record shipment data in real time, allowing customers to track their orders live.
7. After-Sales Support and Return Process
Delivery is not the end of the story.
To maintain customer satisfaction, return, exchange, and service requests can also be tracked via the order management system.
The system can generate reports—such as which customers return products most often—and notify you accordingly.
Why Do You Need Order Management in Supply Chain Processes?
1. Real-Time Stock and Order Tracking
Order and inventory data are integrated. For example, if an order is placed for 150 units and there are only 120 in stock, the remaining 30 units will be marked as backorder.
2. Order Prioritization
Not all orders have the same priority.
Orders for critical customers, time-sensitive items, or contract-based deliveries can be processed based on urgency.
3. Error Reduction
The system automatically prevents issues like typos, incorrect addresses, and wrong product codes, minimizing human error.
4. Full Process Reporting
Managers can easily access detailed reports of all orders, analyze delayed deliveries, and monitor performance with just a few clicks.
5. Seamless Integration
Modern order management systems can integrate with ERP, CRM, and logistics solutions.
For example, they can exchange data bidirectionally with SAP Business One or similar systems.
End-to-End Order Management with SAP Integration: JetSRM Module
To strengthen your order management processes within the supply chain, we have a solution for you: JetSRM.
JetSRM is a supplier portal solution that digitizes all supply chain processes from order to payment.
With JetSRM’s order management module, you can manage all processes end-to-end and efficiently:
- Order Visibility: Access all order details, revision requests, notes, invoice data, and order statuses from a single platform. Suppliers can update order progress and share shipment data via the portal.
- Transparent Tracking: Suppliers can view all past and active orders in bulk, improving operational efficiency for both sides.
- Automatic Status Updates: Once an order is completed, its status automatically switches to “completed orders,” eliminating the need for manual tracking.
Want to strengthen your supply chain backbone and digitize your processes?
JetSRM works seamlessly with your SAP infrastructure to support you in your digital transformation journey.
For more information, feel free to contact us.
