Order processing: 5 tips to improve your workflow

When a customer places an order, they want a click-it-and-forget-it kind of transaction, which requires a robust order processing system. With such a system, companies can ensure their customers get what they need, when they need it, without any friction. E-commerce is built on this principle — a quick, convenient, automated shopping experience designed to make the customer’s life that much easier.

But there’s a dark side to processing orders when things don’t go right. A few faulty orders can be enough to drive many customers away for good, even if they’re familiar with your brand. One report found that 86 percent of consumers will leave a preferred brand after they’ve had two bad experiences with it.

That’s why so many companies prioritize their workflows for processing orders to ensure everything runs as smoothly as possible. And it’s not just a single sale at stake. The accuracy and speed at which your company processes orders can make or break customer loyalty and, in turn, affect the potential for repeat business.

An overview of order processing

Order processing entails managing and fulfilling customer orders. This process starts when a customer places an order and ends once the order has been delivered. 

Order processing is an essential part of any retail business, and it can be a make-or-break point in terms of operational efficiency, customer satisfaction, and overall success. It’s possible to complete parts or all of this process manually, but many businesses employ automation technology to save on costs and reduce human error.

The basics of order processing

Processing orders entails a customer first placing an order and then receiving their purchase via their preferred shipping method. Depending on the business, this process can require just a few simple steps or many complicated steps to ensure a successful delivery.

Mom-and-pop shops might process orders in a back room, or multiple retailers might use a large distribution center. In both situations — and everywhere in between — the workers picking, sorting, and packing ordered products are vital to ensuring the speed and accuracy of order processing, so it’s important for companies to train their teams to follow an established system.

The steps to successfully processing orders

An order processing workflow usually contains the following eight steps.

1. Placing an order

The workflow begins when a customer places an order. This step is where your company gathers all the necessary information to collect payment and complete delivery, including payment card information, delivery address, and the customer’s relevant personal details. At this stage, it’s important for a business to be clear about what they have in stock and when a customer can expect shipment and delivery.

2. Preparing the product

Here, the company designates a worker or automated system to select the customer’s desired product and prepare it for shipment. This process must be thorough and efficient to ensure the company delivers the proper item in the customer’s preferred time frame.

3. Sorting products

Often, a product is part of a larger order. Workers must then sort out which items belong to which orders and where to ship each order. This step is especially important for order accuracy, so it’s crucial to structure it so customers will receive the item(s) they purchased, guaranteed.

4. Packing the product

Proper packaging is invaluable to the customer experience. You can get everything right before the packing stage and still lose business due to improperly protected or packaged products. It’s also important to match each product directly with the correct shipping information to ensure the right customer gets the right product.

5. Shipping the product

Finally, the company must ship the product through a trusted carrier that will deliver it to its final destination. Shipment tracking comes into play here, and customers should have easy access to their shipment tracking information to follow their order’s progress.

6. Collecting feedback

Once an order has been delivered, taking the time to send a survey to customers allows you to gain valuable insight into what you’re doing right and what you can improve on. This follow-up also shows a commitment to your customer’s satisfaction, helping to build brand loyalty.

7. Updating inventory

As customers place orders and you begin processing them, your team needs to be sure inventory numbers are up to date. This is especially important in e-commerce. If inventory isn’t properly updated, it can lead to orders for out-of-stock items, angry customers, and profit losses. Stay ahead of reordering inventory to ensure your most popular items are always available.

8. Processing returns

Even when you’re selling a great product, there’s always a possibility that a customer may need to make a return. If this is the case, you’ll need to work with customers to help them through the return process and ensure a smooth delivery.

Tips and tricks to improve your workflow

Here are some tips for revamping your order processing workflow to make it more efficient, less prone to mistakes, and more profitable for your business.

1. Use demand forecasting

Knowing when your busy and slow seasons are — and how to allocate resources accordingly — can help improve the overall efficiency of your workflow. Demand forecasting can give you the extra insight you need to hire additional seasonal workers and budget for an increase in orders to meet your customers’ needs.

2. Automate as much as you can

You don’t need an expensive processing system to automate your workflow. Try using easy drag-and-drop workflow creation solutions like Jotform Workflows. This user-friendly, no-code workflow tool allows you to create a custom, automated workflow that can help you save time and resources — all while optimizing your order processing.

Jotform Workflows offers powerful features:

• Conditional logic
• Payment processing
• The ability to include multiple forms in a workflow
• Software integrations with third-party tools
• Real-time tracking
• Prebuilt templates

Services like Jotform also provide customizable order forms you can plug into an automated purchase order approval workflow with Jotform Workflows. With Jotform Tables, an online database, you can auto-populate your form data into tables and keep track of your orders as they come in.

3. Closely monitor inventory

It’s essential to have a solid understanding of your inventory levels to manage stock effectively. Using customizable inventory document templates or inventory table templates can help you get started. By keeping inventory trackers updated, you can check your inventory levels at any time in a centralized location.

4. Know your customer

Conduct regular surveys to analyze how your customers feel about their ordering experience. You can do this easily with Jotform’s customizable feedback form templates, and you can compile the data into a customer feedback log.

5. Continuously update your order-processing workflow

Updating your workflow could mean purchasing high-tech ordering software. It could mean hiring more employees or updating your distribution center. Or it could be as simple as creating a more refined process, even if you have just a single worker who fulfills that process. No matter what the circumstances, order processing is the cornerstone of e-commerce, so you have to continuously refine it to suit the needs of your customers.

Learning from your mistakes and refining your order processing workflow is necessary to create the e-commerce business of your dreams. These steps can help you better serve your customers and continue building brand loyalty.

FAQs

What is order processing software?

Order processing software is designed to assist in the management and execution of your order processing procedures. These tools assist your team by storing data in a single location, automating tasks, connecting to other systems, and sending out both internal and external notifications during key points in the order process. Businesses often elect to implement order processing software to save time and resources, reduce errors, and improve both the customer and employee experience.

How can you improve order processing?

You can improve your order processing in a variety of ways. The adjustments you’ll need to make to your order process will depend on your unique needs, but there are a few tips you can try:

• Use order processing software to streamline your procedures.
• Employ automated workflow solutions like Jotform Workflows to keep orders on track from start to finish.
• Integrate your order processing software with the rest of your business systems to improve efficiency and data visibility.
• Remain flexible and prioritize scalability when establishing your processes.
• Research emerging trends and customer needs, including inventory and e-commerce solutions.