Sales Order Management:

What is a Sales Order?

 A Sales Order is an order that is generated via sales, i.e., when a business sells products
or services to a customer, it is termed as “Sales Order”.

What is a Sales Order Management (SOM)?

 Sales Order Management is, thus, nothing but an order management system which is
governed by customer relationship management as well as managing business’s
internal set of activities basically comprising of order entry, processing & finance and
accounting.

Complete Lifecycle of Sales Order Management:

Order Quotation & Processing

What is Order Quotation?

 It is an expression of any buyer
through listing of items for the
purpose of buying any product or
services.

Benefits
 Accelerate cash flow with an
integrated quote-to-order-to-cash
process across sales and finance.
 Drive sales by taking control of the
quote and order process with
integrated approvals, discounting
policies, pricing and more.
 Monitor orders and reduce days
sales outstanding (DSO) with real
time dashboards and detail reports.
Improve customer satisfaction by providing self-service access to order and delivery
information as well as payments.
 Reduce effort with automated creation of invoices based on payment terms and
automation of complex billing processes such as recurring, time and project-based
billing.

Standard Order processing Workflow:

Inventory Management:
 Inventory management is responsible, for planning & handling inventory from raw
material stage till the finished product reaches the customer.
 Inventories are materials and supplies that a business carries either for sale or to
provide inputs or supplies to the production process.

Roles of Inventory in SOM:

Objective of Inventory Management:
 Reduction of slow-moving goods
 Maximize customer service
 Low-cost plant operations
 Minimum inventory investment
 To provide the required level of customer services
 To reduce cost of all processes involved

Order quantities:
 Order quantity plays an important role to balance the two objectives

To achieve the proper balance, a planner or an inventory management person should know:
  How much should be ordered at one time?
 When should an order be placed?

Order Fulfillment is a method of managing inventory according to the order or demand so as

to provide right quantity, at the right time, at the right place.

Steps for maximizing order fulfillment:

 Integration: ERP - Integration of customer side orders with supplier side automation.
 Digitization: Online system of order cycling system to save manual labor
 Automation: Automation of several manual process like administrative labor of
tracking orders etc.

Logistics - “It is the movement and storage of finished goods from the end of production to the
customer”.

Logistic co-ordination:

Material Return & Customer complaints:

 Keep customer informed about the product info & return policy
 Investigate, probe & diagnose - ask customer enough questions politely to get to the
bottom of the issue
 Never argue with the customer and be positive
 Expedite on the complaint and co-ordinate between internal departments
 Never promise to customer
 Information passing - note down the exact problem and communicate clearly to the
corresponding department