The B2B sector continues to digitize, bringing with it new buyer expectations of service and pace. Discover how effective B2B order management can help your business keep up by optimizing key parts of your logistics.
What is B2B order management?
B2B order management is the end-to-end process of receiving, processing, tracking, and fulfilling orders between businesses. It ensures that products or services move smoothly from suppliers to buyers while managing inventory, logistics, pricing, and payments efficiently.
As the B2B sector continues to digitize – something we explored in The Ultimate Guide to B2B E-commerce – an effective order management system can help businesses process bulk purchases, customized pricing, contract-based agreements, and complex fulfillment processes quickly and efficiently.
Think of it as a tool to coordinate all the key processes of your logistics. As you scale your B2B e-commerce business, order management’s importance to helping you run a smooth operation – and ensure your goods are shipped to customers on time – will become integral.
Pain points of traditional B2B ordering processes
An effective B2B order management system can help businesses overcome challenges including:
Manual data entry
Traditional B2B transactions often require manual input of things like orders, invoices, and inventory records. This approach increases the likelihood of human errors, delays processing times, and risks costly mistakes such as incorrect shipments or billing discrepancies.
Lack of visibility
Without real-time tracking and data insights, businesses can struggle to monitor their inventory levels and the status of their orders. This can lead to stockouts, overstocking, and delays – all of which have a negative effect on customers.
Inefficient communication
Traditional B2B methods such as phone calls, emails, and spreadsheets make it difficult to track order changes and updates in real time. Poor communication between suppliers, buyers, and internal teams can lead to misinterpretations, missed orders, and delays.
Best practices for optimizing B2B order management
To address these challenges, B2B businesses should focus on:
1. Inventory management
Implementing automated inventory tracking and forecasting tools can help businesses manage demand fluctuations whilst ensuring optimal stock levels.
2. Order consolidation
Consolidating multiple orders into a single shipment reduces logistics costs for businesses. They can leverage order management systems (OMS) to bundle shipments strategically and optimize delivery schedules – such as choosing the best routes and sequence for deliveries.
3. Efficient supplier and customer communication
Adopting digital platforms that facilitate real-time communication between suppliers and customers ensures smooth order processing. Using electronic data interchange (EDI) and cloud-based order management systems can eliminate misunderstandings and improve collaboration.
Benefits of a B2B order management system
Businesses that implement advanced B2B ordering solutions, such as those offered by DHL (which we’ll explore further on), can unlock benefits including:
Increased operational efficiency
Automating order management processes helps to reduce manual work and accelerate order fulfilment. For B2B businesses in the scaling-up phase, the resources it saves them is invaluable.
Cost reductions
By streamlining ordering processes, businesses can lower administrative costs, reduce waste, and optimize their shipping and storage expenses.
Improved customer satisfaction
Faster order processing, real-time tracking, and seamless communication enhance the customer experience, fostering the long-term partnerships that have always been so central to the B2B sector.
Enhanced competitiveness
Businesses that leverage digital B2B ordering solutions gain a competitive edge by responding more quickly to market demands, adapting to supply chain disruptions, and offering superior service to clients.
Choosing a B2B e-commerce fulfillment partner
Once you have laid the foundations for your B2B e-commerce venture – your website, purchasing, marketing, putting a CRM in place – you will need to optimize your supply chain across all areas including warehousing and last-mile delivery.
Some key considerations for your business when choosing a fulfillment partner:
- Order and item volume: Compared with B2C e-commerce, B2B often means fewer orders but for larger quantities of items. Does your fulfillment provider offer services to suit both?
- Picking and packing methods: B2B orders often involve carton picks, and shipping in larger cartons and pallets. What does your fulfillment provider offer?
- Shipping methods: Does your logistics provider work with the right sort of carriers for your B2B orders? These can differ from those you need for B2C orders.
- Delivery speed: B2C orders often have quick turnarounds, whereas B2B orders are more likely to be large orders, planned and agreed for delivery perhaps on a specific day. Does your provider partner with carriers who are reliable?
- Returns: What flow have you designed for B2B returns and can your fulfillment provider support you on these?
DHL Express’s network supports both B2C and B2B e-commerce businesses in the storage, commissioning and delivery of their products. Their flexible, scalable service integrates seamlessly with all major webshops.
For fast, international B2B shipping, open a DHL Express Business Account.
