Order Management Cycle can be best described as an ‘ecosystem’ that includes all types of business processes pertaining to taking and filling orders. It involves keeping track of all sales orders and their payments. Order management can also help organizations to find out about their customer behavior. What has been their past order history? Do they pay on time? How frequently do they order? How much volume do they order in general? These questions can all be answered by integrated order management.
In today’s digital age, there are multiple channels of selling and distribution. As the channels grow, managing orders has become more complicated for companies. An integrated order management cycle incorporates all the orders received across different sales channels in a centralized platform. Thanks to the centralized data, order management can also track your inventory list to check if you can fulfill the orders, manage data around the vendors who are going to help you keep the inventory on hand to do that, getting the order to the customer, and so on.
Once the order is fulfilled, getting the payment is also a critical step in order management. This is known as the ‘Order to Cash’ cycle. It refers to a series of steps that involve receiving and processing customer sales orders for goods and services and their payment. The Order to Cash cycle can be divided into four major processes:
- Order entry
- Order fulfillment
Depending on the type of business and the industry, the number of steps can vary. In some cases, invoicing and payment is done before the delivery. Some companies generate the invoice before the payment, whereas a few companies provide the invoice after payment has been done.
EasyReports BI tool helps organizations with the reporting to track the sales orders, track cash flow projection, create creditors list and debtors list, track payment, track budget vs actual analysis and more.
Let’s take an example to understand this better. You have a company named XYZ which routinely takes in tenders from other companies for various projects. So within a financial year, XYZ ends up working with several companies at different budgets. For seamless workflow in the organization, XYZ must maintain multiple orders to overlook each project. Their main objective is to monitor the budget, look after the investment and expenses incurred in a project, track the payments, calculate profits for each project, etc.
XYZ wanted a BI solution which would allow them the following:
- To manage the complete budget before and after taking a project, it is necessary to analyze the budget vs actual expense of a project.
- To track the completion or status of any project, it is necessary to maintain the supply and progress of a project.
- Timeline is also important as increase in timeline will result in an increase of budget.
EasyReports BI tool came to the aid of XYZ with the following reporting solutions:
- Sales order acceptance
- Pending project, Complete project, Running project
- Cash flow projection
- Budget vs Actual analysis
- SOA wise, Division wise, Monthly basis
- Cost Centre wise breakup/ledger tagging
- Actual expense details report, Business development etc.
- Repair and Maintenance
- Division wise profitability
- Payment tracking
- Creditors list
- Debtors list
Therefore, if you are looking for optimizing the cash flow of your organization EasyReports BI offers complete flexible and affordable accounting and reporting solutions with its integrated order management cycle reporting for small and medium sized companies. To know more, log on to www.easyreports.in