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Inventory Manufacturing Software for Order Management

Order management gets too complex to be done manually when a manufacturing company reaches a certain stage. This is another area where digital technologies can help the manufacturer.


Enterprise Resource Planning solutions began to evolve as the power of agile, modular, and cloud-based software matured alongside enhanced data collection. Traditional key operations such as production, inventory management, and purchasing are included in today's ERP systems. However, several have incorporated Human Resources, enhanced procurement, Business Intelligence, and Customer Relationship Management capabilities (CRM).


Companies can create a centralized place for order management from all sales channels by including order management features into an ERP platform. This means businesses can get a more comprehensive and accurate picture of demand, supply, manufacturing, inventory, and distribution across the board. Companies can use data to optimize manufacturing, resulting in increased productivity and cost savings while increasing consumer trust.


Software functionality must contain crucial capabilities that allow a manufacturing company to track orders through their complete cycle from quoting to shipping for optimum order management within an ERP system. These features include:


Creating Quotes

Salespeople can build realistic quotes with predictable delivery dates by tying quote creation to existing inventory and manufacturing schedules. As a result, there are fewer risks of shipments being delayed and a better customer experience. Many ERPs can determine whether the completed goods will be made from inventory or acquired stock. The ERP automates the links between inventory and purchasing. Should the quotation convert into a solid order, inventory remains accurate and not over-promised, and purchasing automation means tighter control and efficiency of the supply chain.


Price Lists

Price lists can be created using today's manufacturing inventory software systems. Price lists, which have traditionally been a subjective verbal or "back of napkin" role in many businesses, allow optimal production planning and inventory monitoring. Most even allow for tiered pricing, in which different rates are assigned depending on the number of orders placed. This takes advantage of the capacity of mass manufacturing to reduce setups and changeovers while also ensuring that the business sticks to a profit target for smaller, more expensive runs. Pricing within the ERP aids in estimating, production planning, and purchasing accuracy.


Comprehensive Documentation

The conventional shuffling of paper documents is removed by integrating a full suite of order management documentation and attaching it to the overall ERP functionality. This translates to speedier, more accurate documentation that traces an order's full lifetime. Furthermore, the history of the entire process is linked, removing overestimating, underestimating, and losing order components. The following are examples of important documents that can be found in order management document creation:


  • Quotation: Issued in response to a customer's request for pricing information.

  • Pro-Forma Invoicing: A formal offer of products and services for a set fee (usually with an expiry date).

  • Prepayment Invoicing: Before beginning manufacturing, many companies want a partial or "down" payment.

  • Order Confirmation: A confirmation that the order has been received, accepted, and processed.

  • Invoice: a request for payment for products and services sent to the customer.


End-to-End Visibility

Orders can be traced from quotation through delivery thanks to the improved capability and interoperability of today's ERP software. Most ERPs do this by giving the order status, and many of these statuses can be automated. Automated statuses are usually triggered when production begins or ends. Then, customers, salespeople, executives, and others can see the stage to check if it's on track or make decisions and alert customers if it isn't.


Cash Flow Analysis

Cash flow is one of the most important aspects of any business. Unfortunately, this can become a guessing game with siloed systems and software, causing working capital to dry up and bottlenecks with suppliers and delivery to customers. Decision-makers have the flexibility to accurately review an analysis of each order's influence on cash flow since order management is included from quote to delivery.


This can be accomplished using a flexible custom period for both short- and long-term cash flow management. In addition, decision-makers can assess the impact of firm orders and quoted orders because it is linked to the ERP system, allowing them to decide the optimum production strategy. This will enable them to make better-informed judgments on overtime, additional capacity, faster material distribution, and other factors that will result in optimal cash flow and delivery performance.


Booking an Order

Order booking was a laborious process for many years. Orders from sales were either manually recorded after receipt or transferred from an OMS sales system via data input. This resulted in several issues. It was first and mainly time-consuming, resulting in a lag between the point of sale and production. The second flaw was that it was prone to human mistakes. Third, it disengaged critical data that companies could have used to optimize the entire business.


Planners can automatically check current stock and book orders using order management within the ERP system, prompting any purchasing for stock materials or replenishment. The system can also relieve supply via FIFO or other inventory management methodologies to maintain inventory accuracy and costs.


Invoicing

An ERP can incorporate the final and most important invoicing stage into a software that integrates order management with traditional ERP features. This ensures that the ERP's financial functions are accurate in real-time and that transactions are automated and error-free. Functionality could include sending created invoices directly from the software to an email client, eliminating the need to switch screens. In addition, for consistency and best practices, invoices can be customized with business letterhead and logos.


Manufacturing inventory software solutions today are flexible. Companies can reduce costs and uncover areas for process improvement by bringing these together and linking them across the company. They can also use real-time data to make smarter decisions and guarantee that orders are linked to the same data that drives manufacturing to provide the greatest possible customer experience and boost brand loyalty.


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