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Supercharge Your Sales Order System with a Mobile Sales App


What is Sales Order Processing?

What is Sales Order Processing

Sales order processing refers to a company’s actions to fulfil a customer’s order. It involves departments, from sales and customer support or admin to logistics partners and warehouses. This process commences when a salesperson assists the retail chain customer in taking an order on a product or service through a mobile sales app, resulting in a purchase order transmitted to the seller ordering system. While the specifications of steps and technologies employed in sales and purchase order processing may differ, the sales order entry process follows standard procedures of individual businesses. These steps encompass sales order placement, approval process, inventory movement & management, customer billings, customer collections, delivery & transportation.

What is a Sales Order?

This occurs when a document is initiated by a customer requesting products or services from a seller. It acts as a formalisation of the customer’s intent to purchase, where it outlines the specific details of the order. The details may include prices, item quantities, delivery dates, and other instructions. The customer request comes from the buyer, marking the start of the seller’s sales process. Once received, the seller acknowledges the request and meets the buyer’s needs. In short, it is a crucial reference point for scheduling production, completing orders, managing inventory, and ensuring seamless processing and delivery of goods and services to the buyer. This is a common process in every industry, but there are some differences in certain industry practices. 

Some businesses may require an approval process after the salesperson has taken the sales orders from customers. While this procedure will take longer to process the customer order, if the business process follows the conventional method (Manual Process), the process would be time-consuming, as the salesperson would need to submit handwritten orders to the office for approval. Therefore, many businesses are digitising this troublesome process using mobile sales app solutions such as DATANORY SFA. The solution helps sellers and their sales teams speed up and organise the sales order process, ensuring that all sales orders are well-tracked in the system, even if the customer/seller loses the hard copy of the order. Additionally, the DATANORY SFA solution gives sellers the flexibility to customise their sales order workflows in the system based on their business needs and processes, unlike other SFA solutions that are rigid in their features and unable to cater to seller-specific processes.

What is a Sales Order

What is a Purchase Order?

A purchase order is a document created by the purchaser or client to formalize the procurement of goods or services from their supplier. It details the products or services being bought, such as quantities, prices, item descriptions, payment terms, and delivery instructions. The order confirmation acts as a legally binding contract between the buyer and the seller, establishing the terms and conditions of the transaction. Upon receiving the order confirmation, the seller has to commit to fulfilling the buyer’s requirements within the agreed timeframe.

What is a Purchase Order

This document helps both parties promote effective communication and clarifies purchase terms, minimising potential conflicts or misunderstandings. In the distribution and retail chain industry, for modern trade retail customers, purchase orders are always issued to sellers due to larger and more structured retail business models. For general trade, this is less practical due to traditional processes and the smaller scale of the business. These important documents can be stored in the Sales Order System, making it easier for administrators to refer to them.

 

Difference between a Sales Order and a Purchase Order


Direction of Transaction

Sales Order

The sale process is initiated from the seller’s perspective, indicating their dedication to providing goods or services to the customer.

sales order and purchase Direction of Transaction

Purchase Order

The buying process is initiated from the buyer’s perspective, showing the buyer’s intention to purchase goods or services from the seller.

Content

Sales Order

Typically provides information about the products or services customers request, including product name, SKU number, quantities, delivery date prices, discounts, and any other special instructions.

sales order and purchase Content

Purchase Order

Typically specifies the details of the seller’s products or services, including quantities, brief descriptions, shipping instructions, and payment conditions.

Purpose

Sales Order

Functions as a written document that verifies the customer’s desire for products or services, streamlining the delivery process.

sales order and purchase Purpose

Purchase Order

Serves as a contractual agreement between the purchaser and seller, detailing the terms and conditions of the transaction and serving as a reference for both parties.

Responsibility

Sales Order

The seller is responsible for managing and handling the sales order. They are obligated to fulfil the requested items and deliver them to the customer within the terms that have been agreed upon. Many big players in the distribution sector will closely monitor their sales order system so that sales can follow up on payments with customers and prevent any late delivery.

sales order and purchase Responsibility

Purchase Order

Buyer or customer is responsible for handling and keeping track of the purchase order. The buyer expects the seller to fulfil the order as per the specified terms and conditions.

What is a Sales Order System?

A Sales Order System is a comprehensive software solution that effectively manages a company’s entire sales order processing workflow via a mobile sales app. It simplifies entering orders, accessing product pricing and inventory information, tracking customers’ orders and payment collection, and monitoring order status and delivery, enabling stakeholders to address any issues quickly. This system seamlessly integrates with other business systems, such as CRM and ERP, ensuring operational efficiency and data consistency. However, not all sales order systems on the market are flexible and open to system integration. This limitation will have little impact on small businesses. However, large distribution business models should look for a flexible or more comprehensive sales order system to prevent overloaded paperwork and data discrepancy nightmares. There are many sales ordering systems in the market, but DATANORY SFA is the top choice of Sales Order systems for distribution and retail trade business in the Malaysia market. It comprises comprehensive features that can fulfil all the local business process requirements and demands. DATANORY SFA also integrates with the most commonly used accounting systems like SQL, Autocount, Fav365, etc.

Additionally, DATANORY SFA consists of AI features to help the salesperson maximise their KPI and sales target when placing customer orders. It also helps the salesperson explore more new potential markets. In addition to this, our DATANORY SFA Sales Ordering system enables business owners to easily generate valuable reports and analytics on sales performance, inventory levels, and customer behaviour, equipping decision-makers with the necessary information. It also reduces labour costs by automating repetitive tasks, such as order routing and approvals, eliminating the need for manual effort.

What is a Sales Order System

Five Reasons Why You Need a Sales Order System

Monitoring and Order Tracking

Monitoring and Order Tracking

It offers an extensive order tracking and monitoring solution using a mobile sales app, enabling businesses to monitor orders’ progress at every stage of the fulfilment process. This promotes transparency and empowers businesses to manage customer expectations proactively.

Overall Efficiency

Businesses can make more informed choices by utilising a system that provides comprehensive reports and analysis on sales performance, order trends, and customer behaviour. The system’s insights enable businesses to spot growth opportunities, refine pricing strategies, and improve sales effectiveness.

sales order and purchase Overall Efficiency
Streamlined Communication System

Streamlined Communication System

This system enables smooth and seamless interaction between various departments engaged in the sales order process. These departments mainly involve accounting, sales, and inventory management. This system aids in minimising communication gaps, simplifying workflows, and promoting collaboration throughout the entire organisation.

Enhanced Decision-Making

Businesses can make more informed choices by utilising a system that provides comprehensive reports and analysis on sales performance, order trends, and customer behaviour. The system’s insights enable businesses to spot growth opportunities, refine pricing strategies, and improve sales effectiveness.

Enhanced Decision-Making
Compliance and Audibility

Compliance and Audibility

Finally, a sales order system provides a traceable record of every transaction, ensuring compliance with external and internal policies. This helps businesses preserve precise documentation, minimise potential risks, and showcase responsibility in the face of audits or conflicts.

Benefits of Optimizing Sales Order Process Flow

Better Resource Utilization

Better Resource Utilization

Streamlining the sales order flow allows companies to utilise their resources more efficiently. Organisations can redirect their staff, technology, and equipment towards more strategic endeavours by recognising and eliminating inefficiencies in the sales order process. This assures that resources are used in a way that maximises their value. Moreover, optimised processes help reduce expenses linked to reword, excess inventory, surplus inventory, and human errors, resulting in overall profitability and sustainability.

Increased Efficiency and Productivity

By streamlining the sales order flow, companies can reduce obstacles, remove unnecessary steps, and automate manual duties. This results in enhanced effectiveness and productivity throughout the organisation as sales representatives devote less time to administrative tasks and more time to finding potential clients and finalising deals. Orders can be handled and completed quickly with optimised procedures, increasing customer loyalty and satisfaction. 

Increased Efficiency and Productivity
Improved Customer Experience 2

Improved Customer Experience

Optimising sales order flow allows businesses to provide a smooth and effortless customer experience. Making the order process more efficient reduces wait times and offers accurate tracking. Businesses can meet customers’ expectations for dependable service and prompt delivery. Sales people are more capable of keeping customers updated, and enhancing order accuracy and response times also boost customer loyalty and satisfaction. Ultimately, a positive customer experience leads to greater brand loyalty, long-term business growth and positive recommendations.

Conclusion

To summarise, sales order processing manages customer orders, whereas purchase orders indicate buyer requests. An adequate system simplifies this procedure and brings advantages such as enhanced communication, improved efficiency, and better decision-making. Businesses must invest in such a system to meet customer needs and remain competitive. When companies optimise sales order processes, they can increase efficiency and ensure customer satisfaction while using resources better. By incorporating efficient methods and advanced systems, businesses can streamline their operations and drive growth in the current market. Experience the future of business now! Download a useful mobile sales app to maximise your sales and simplify order tracking. 

We also have other solutions that you might be interested in such as warehouse inventory management software, artificial intelligence business solutions, merchandising management system, sales force system and lots more!

LinkedIn : MC Crenergy | Datanory | IT Solution Provider

Updated On : 18th Mar 2022

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