PERSPECTIVE

The New Order in Order Management

Abstract
As in life, the old adage “change is the only constant” is true for supply chain too. Today, supply chain is experiencing rapid
changes. Consequently, the whole supply chain ecosystem is in a dynamic state, with developments in technology and
customers’ usage of technology bringing a sea change in the way business is done. This has led to a paradigm shift in the
way businesses are carried out, emphasizing the need for service providers to innovate and re-skill to keep abreast with
change. Automation and process re-engineering have emerged as the key levers in driving convenience to customers in
delivering products / services at their doorsteps – with real-time visibility, accuracy and real-time status through each stage of
the supply chain.
Clearly, with changes in supply chain processes, the order management process has also undergone significant changes.
Technological changes such as web enablement, the rise of the social media, and accessibility through mobile devices are the
underlying factors causing changes in the way customers are placing orders.
 Introduction
In this paper, we examine the impact
of changes in supply chain on order
management in today’s environment
and evangelize how the future order
management process will be carried out
– the new order in order management.
These changes are dynamic, both service
providers and supply chain organizations
have to take necessary measures to address
all potential impacts to their business.
We have outlined traditional order
management processes, some of the key
challenges that most service providers
and organizations are facing today, and an
approach that would help address these
challenges. Technology plays a vital role
in current environment in
empowering customers by providing
access to information anytime. In
addition, the
expectations from the service providers in
helping supply chain organizations to meet
customer needs are also increasing. We
examine the steps that service providers
must take to address customer needs in
this rapidly changing environment.

Components of typical customer order cycle

The customer order cycle includes all of the elapsed time from the customer’s placement of the order to the receipt of the production
an acceptable condition and its placement in the customer’s inventory. The typical order cycle consists of five main steps. Those
components of the order processing which is explained below can be seen in Figure 1.

Figure 1 Typical elements of order processing (see online version for colors)

Step 1 Order preparation and transmission: ‘order preparation’ consists of these activities; determining products
and services information, filling out an order form, determining stock availability, communicating order
information ‘Order transmission’ is the series of events that occur between the times.
 A customer places or sends an order and the time the seller receives the order.
Order transmission can be done in two ways.
a Manual transmission: Mailing of orders or physical carrying by the sales staff
to the order entry point. This option is slow but inexpensive.
b Electronic transmission: Using telephone, EDI, satellite communication.
This method is fast, reliable and accurate, but it allows trade-off analysis.
Step 2
c Order processing (order receipt and order entry): Order processing refers to
the time from when the seller receives an order until an appropriate
location (i.e. warehouse) is authorized to fill the order .First, orders for
completeness and accuracy must be checked. Once the order enters into
the order processing system, various checks are made to determine if
d the customer’s credit is satisfactory to accept the order
e the desired product is available in inventory in the quantities ordered, and
the product is scheduled for production if not currently in inventory.
f Order form data are utilised for sales records, such as credit status reports,
billing schedules, and manufacturing/purchasing schedules. These have to
be routed to all departments. The sequence must be so determined that
the flow of information is expedited and it is ensured that documentation
takes place in all relevant departments. Customers place orders with a
customer service representative. After checking credit status, preparing
back order or order cancelling documentation must be done (Ballou, 2004).
If these activities are performed manually, a great amount of time may be
required, which can slowdown (i.e., lengthen) the order cycle. Also
customer in placing an order would need an acknowledgement and
expected date of delivery. This can be traced by ‘status reporting’ .
Step 3 Order filling (order picking and packing): Generally, this step includes dispatch of
goods, invoicing, shipping and, documentation). After checking credit, prices and
etc, the order must to be transmitted to warehouse for execution. The longer is
the delay in executing the order, the larger is the possibility that customer will
cancel\amend the order. Explicit dispatch instructions to be issued to warehouse
and customer should be informed about the status of the order (Lambert et al.,
1998).
After receipt of order, the warehouse manager have to order for transport,
simultaneously preparing the documents for dispatch for the purpose of accountant
of stocks, billing and advice to the customer, billing of transportation and
intimation to all concerned including marketing, production, finance, purchase etc.
to fulfil the requirements of an integrated system. An expeditious order processing
is required. Often represents the best opportunity to improve the effectiveness and
efficiency of an order cycle).
Step 4 Order delivery (shipment): Order delivery is the time from when a carrier
picks up the shipment until it is received by the customer.
As just-in-time delivery has become increasingly commonplace and
customer demands continue to tighten, the importance of fast, reliable delivery
performance cannot be overstated. This is particularly true for organizations

competing internationally, where the complexity of the supply chain must be

managed within a global network (Milgate, 2001). The delivery performance is a
key indicator for the level of performance a company is able to provide correct and
in-time deliveries to its customers. It is a quantitative measure to benchmark an
organization against, when it comes to translate customer-relationship related External Document © 2015 Infosys
thinking into operational context within logistics and supply-chain related thinking. Limited
Depending on business requirements several companies (à industry dependence)
need to calculate and monitor the quantity which is delivered
in-time at different dates (SAP, online).
Step 5 Order status reporting: This step mainly considers tracing and tracking the order
throughout the entire order cycle. This step consists of communication with the
customer as to where the order may be in the order cycle and when it may be
delivered (Lambert et al., 1998).
Traditional order management process from a business process perspective
Fig.1 explains the traditional order
The entire process was time the customer service helpdesk
management process with
taking and impacted the overall (via email or phone) to get
multiple hand- offs and
turnaround time making it status updates. These
numerous stakeholders involved
significantly high for fulfillment processes were also siloed
in addressing the order entry and
of orders. Customers had less and showed lack of integration
other related activities for
visibility between underlying systems.
managing the order.
on their orders and had to
depend on

Ordering Order Data Agent Order booking Cross functional

channels acknowledgement teams contacted through the
sent to customer system for issue resolution
through tool

Customer Voice Agent Cross functionalManufacturing Logistics Finance team

contactplanner planner

1 2 3 4 5 6 7
The three key characteristics of
the traditional process were:
The paradigm shift: The marketplace of tomorrow
1. Separate voice and data team to handle
customer issues
Enhanced growth in
2. Individual teams to handle Technology Technology and
customer queries for each activities direct Customer
accessibility
3. Limited tool integrations

The way traditional order management

process was done gave rise to five major Emergence of ecommerce
New players
and growth of the markets
challenges:

• Multiple handoffs: Multiple teams

involved and therefore disposed
to duplication
Market focus Movement from
• Legacy systems: Systems did B2B to a B2C market
not interact with each other Customer centric approach

• Lack of visibility into downstream Organization movement

activities: Limited visibility on orders Towards digital
Exponential Opportunities Digital
and dependence on customer service, With growth in
manufacturing , and logistics teams for technology & customer
order status accessibility

• Higher cost of operations: Multiple

Supply
processes and resources involved to
chain Supply chain
perform the activities, adding to cost complexities
• Higher dependencies on cross
functional partners: Multiple partners
involved in the delivery with limited
system integration Enhanced growth in technology leading to direct customer accessibility

These challenges were mainly addressed

Technology has been evolving ERP / CRM systems to cloud enabled
through outsourcing, the primary
dramatically over the last few decades, systems that are dynamic and
objective of which was cost arbitrage.
from an era provide information to relevant
Service providers were able to deliver value
of no internet to anything you can stakeholders
and rise up to the challenges posed
imagine on the net. Internet has grown real-time, facilitating the process. Services
through time tested methods such as
30% (Internetworldstats.com June 30 provided to customers have scaled up
process centralization, standardization,
2014 statistics) over the last decade. from traditional email / phone channels to
tool integration, and process re-
This is driving better access to chat and virtual assistance with the ability
engineering.
technology for customers - “on the go” of real-time information tracking.
services are growing with customers Automation and robotics are also helping
expecting deliver customized services to the
real-time data and information on their customer
products / services. Organizations have round-the-clock.
moved from legacy systems to centralized

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Emergence of ecommerce / marketplace Movement from B2B to B2C: Going digital:
services:
The growth in technology and Customer needs are changing based on
Technology advancements are driving
customers accessibility has forced what they are able to do and how they
a shift in business models, giving rise
organizations to change their market are able to communicate and do
to new services, and facilitating ease in
strategies and re- look at strategies to business.
the fulfillment process. Customers today
move closer to their customers. It is important for organizations to
are in a position to utilize the growing
Organizations are looking at ways to shift continuously innovate to provide
e-c ommerce markets and use the digital
from the B2B market to B2C markets and customer delight, and engage with them
medium to buy products / services. These
engage with the customers more often. relentlessly.
new markets have effectively brought
Though organizations would practically To create brand loyalty, organizations
organizations closer to their customers
not be able to shift markets completely need to focus on the digital medium to
and are enabling a quick fulfillment
given the nature of business, proactive get
process.
efforts are underway to get closer to end closer to their customers and engage
The “door’’ is wide open for
customers to enhance customer them consistently. Today’s markets are
customers, enabling them to
experience. driven by customers; digital existence is the
compare products / services to buy
need of the hour for them to be in business.
at the best price.

Five key demands of the current landscape

Technology
Data Intelligence
1. Seamless process with minimum
1. Data collation with the ability to predict
intervention, ability to resolve issues
customers demand.
for the customer, effective returns
and payment process. 2. Data forecasting to plan and execute
order management processes with
2. Enhance technology augmentation
Technology shorter delivery times.
to improve efficiency in the process
and lesser manual interventions. Personalization

Visibility 1. Dedicated team to manage customers,

to be able to resolve customer queries
1. Visibility to upstream activities and
efficiently, understanding the end-to-
ability to track information on a
end process and client ordering
real- time basis “on the go”.
Visibility history for proactive approach on
2. Investments in technology to customer issues.
enable real-time status tracking and
“on the go” information system.

Data Intelligence
Personalization

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Getting future-ready: Order management of tomorrow
Though the future looks challenging, it also provides opportunities for both organizations and their service providers. While there is an ocean
of opportunities, leveraging them would need additional competence in resources, therefor up skilling of the resources becomes imperative.
Advancements in technology have empowered customers and have raised their bar of expectation.

Login to portal
Customer and place order
Ordering channels Super agent skill sets

1 2
3 Super agent Quality
experience
Customer Language
oriented skills

8
4 7 High order
Domain skills
commitment

Expert team to 5
Automations Technically Voice, Chat
Update rules and Platforms proficient and email
data for virtual
assistance, update ERP
of self help 1 2 3
portals…etc Work effectively to deliver smooth
customer experience
All tools integrated Manual
Tool 1 Tool 2 Tool 3
to help customer intervention Across adjacent process systems to
book orders without Manufacturing manage end to end value stream work
any hindrances. planner Logistics planner Finance team
Focus on customers to manage all end to
6 end queries

Characteristics of order management of processes.

Data excellence:
tomorrow:
The ability to capture customer data one time and
• Additional channels to place leverage technology to data excellence. Invest in
orders and resolve order issues technology, skilled resources to handle big data
• Single agent handling end-to-end and maintain high data standards.
activities for customer
Complex order fulfillment:
• Automations to enhance process and
Emergence of e-commerce market and multiple
integration with all tools for quick order
players involved in the delivery of the products
resolution
to end customers have
• Transformation and expert team to made delivery processes complex. Logistics
enhance technology companies have revived due to complex process
• High skilled super agents to and expectation from customers for quick
i
handle complex customer queries h
turnaround
sr times.
e at
nt c
ar pa
One-touch order processing: P ut
er
Seamless order processing with a single t
Co en
mp llm
touch from the customers. No intervention l e x o r d er fulf
i
to process customer orders and
technology to facilitate one-touch
Partnership and alliances:

Last mile delivery and

outsourcing of outbound
logistics have paved way for
partnerships. Organizations
today are in persistent need
of niche technology
partners and third-party players
to ensure outstanding customer
experiences.

d
ch o r er pro
e to u ces
On sin
g
es
nc
illa O
a n
e
d ti
n m
p e

a
d
a
Order management

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 Conclusion
Technology advancements and revolutions are driving a sea change in the way order management business is carried out. In the
yesteryears, processes were siloed with limited communication ability that led to inefficiency at multiple touch points. Any errors or
omissions in the order would require a series of communications that led to considerable delay in processing the orders.

Today’s customers are smarter and technologically savvy. Service providers will be successful only if they are able to leverage
technology and deliver on customer expectations through a combination of super agents and technology. Super agents will need
to fulfil requirement not only in the core order management space but also in adjacent areas. Additionally, they would need skills to
enable them to leverage new ways of communication through chat and social media in real-time, with an underlying backbone of
smart systems to deliver all the necessary information to the customers. This change would enable organizations to achieve better
customer service at a lower cost, through quicker and error-free execution of orders.

About the Authors

Shashi Bhojwani
Head, Center of Excellence, Sales and Fulfillment Practice – Infosys BPO

Shashi Bhojwani has 22 years of experience and heads the Centre of Excellence (COE) for the Sales & Fulfillment Practice
and is responsible for thought leadership at Infosys BPO. He has rich experience in the area of Sales & Fulfillment, having
worked in this space in the core manufacturing, IT and BPO industries. In his current role Shashi drives the development
of new service like, envisioning and evangelizing future requirements of the practice, as well as talent development for
the practice. He holds a B.E.(Mech) and a Masters in Business Administration.

Mothi Raj
Consultant, Solution Design, Sales & Fulfillment Practice – Infosys BPO

Mothi Raj has over 12 years of experience spanning customer service, operations management, training, center of excellence
and solution design. In his current role as a solution design consultant, he is responsible for designing and customizing
sales & fulfillment solutions. He holds a bachelor’s degree in business management and a post graduate diploma in
business administration.
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