Timely order fulfillment leads to happy customers — but when your customer is another business, they need to receive shipments on time to keep their operations on track.
Managing these business-to-business (B2B) transactions is more complex than the average sale, whether due to a custom pricing agreement or the volume of product you’re moving, which is all the more reason to make sure they’re managed effectively.
Here are 10 strategies to improve your B2B order management and know business is running smoothly and that your customers — and their customers — are happy.
B2B order management: An overview
B2B transactions involve any sale made to another business. In business-to-consumer (B2C) transactions, businesses sell directly to individual consumers, like a retail store selling electronic products to shoppers. But retailers would acquire that inventory through a B2B transaction, ordering directly from a supplier to stock their shelves. B2B orders are typically more complicated because they’re larger shipments with more moving parts.
A seller with a robust B2B order management system can fill and ship orders faster. This accelerated order processing and shipping means purchasers receive their products and supplies more rapidly, improving the receiving company’s operational efficiency and productivity. If a manufacturing firm receives raw materials faster, it maintains steady production lines, meets its order commitments on time, and potentially reduces inventory holding costs.
Both parties having efficient fulfillment creates a ripple effect of productivity across businesses.
B2B versus B2C order example
Consider a consumer buying wood to make one piece of furniture. In a B2C transaction, this customer could go to a hardware store to buy a few boards to build a table.
But a large-scale manufacturer would need huge orders of lumber to meet production needs, which it couldn’t buy at the average store. It would need to go right to a supplier, like a lumber mill, to buy so much product. Because of this, the manufacturer might pay less per unit, even though it’s buying large amounts of the materials.
Key components of B2B order management
Here’s a breakdown of some factors separating B2B ordering from standard fulfillment.
Complex approval processes
B2B transactions are more complex because multiple stakeholders are involved in decisions. Purchases often need approval from various departments, like procurement, finance, and management. This detailed process creates more opportunities for slowdowns and makes efficient workflow management essential to prevent delays.
Managing large amounts of inventory
Businesses often buy raw materials or supplies in bulk, meaning they need much more than a single consumer would. Bulk orders typically save the purchaser money through volume discounts and ensure there’s enough inventory or supplies to meet production needs and serve customers.
Specialized pricing negotiations
Unlike the fixed prices in B2C, where everyone pays the same amount for a product or service, pricing and payment arrangements vary widely in B2B transactions. Because of their size, businesses usually have leverage to negotiate how much an order costs, whether that’s based on order frequency, contract terms, or agreements to long-term partnerships. These negotiations increase order complexity.
Detailed invoicing
The larger price tags of B2B transactions often include different payment terms, like net 30 or net 60 days, which means the buyer has 30 or 60 days from the invoice date to pay the full amount.
These extended payment terms give the buyer extra time to manage their cash flow, allowing them to receive revenue from their own credit sales or services sold before making payment. The added tracking and different payment timelines complicate orders, unlike the immediate payments of most B2C transactions.
How B2B order management helps with eCommerce
Implementing robust B2B eCommerce order management systems can benefit your business and drive growth by streamlining B2B operations and improving customer service.
eCommerce allows businesses to place orders online via platforms like Shopify, Magento, or custom-developed websites instead of over the phone or in person. These platforms handle the complexities of B2B orders, such as bulk pricing discounts, customized orders, and credit terms, limiting the strain on your customer service and sales departments.
Here’s more about the key advantages:
- Improved efficiency: Opting for an automated eCommerce management system reduces manual data entry, minimizing human error and speeding up B2B order fulfillment. Automating these tasks saves time and resources and even sends notifications directly to warehouse teams for faster picking, packing, and shipping.
- Enhanced accuracy: Automated data entry and order tracking systems streamline the fulfillment process, reducing errors and delays. Real-time monitoring allows businesses to process orders quickly and accurately while gaining valuable insights for continuous improvement.
- Better inventory management: Great inventory management software integrates with point-of-sale (POS) systems, online stores, and warehouses, instantly updating inventory counts as sales occur and new shipments arrive. The platform can even signal when stock is low to prompt reordering, avoiding stockouts.
- Increased customer satisfaction: In B2B transactions, delivering orders accurately and on time builds trust and reliability with your clients, leading to repeat business, renewed contracts, and referrals. This reliability can also attract strategic partnerships and support long-term growth.
- Cost savings: Software that automates tasks allows employees to focus on essential activities and cut unnecessary labor expenses. Plus, you can reinvest savings in other areas for growth and innovation.
How to improve B2B order management
Here are 10 strategies to enhance your B2B order management:
1. Automate order processing
Processing B2B orders, from checkout to delivery, requires careful monitoring and the flow of information between teams. Using automated systems to transmit this information reduces manual errors, speeds up order fulfillment, and boosts efficiency across departments.
When a customer places an order online, the right platform notifies the warehouse team to start picking the order immediately and generates shipping labels, lightening workloads.
2. Implement inventory tracking software
Having inventory software that can track inventory levels helps avoid stockouts and backorders by continuously monitoring inventory and alerting you when items run low. Real-time tracking also helps optimize the amount of inventory you hold, helping you minimize carrying costs.
3. Integrate systems
Connecting your business solutions — including Electronic Data Interchange (EDI), Customer Relationship Management (CRM), and order management systems — ensures data is accurate and updated across all platforms. These integrations break down silos and make information like customer details or inventory levels easy for all authorized teams to see. As a result, businesses can work more productively and reduce errors.
4. Streamline communication channels
Unified communication platforms combine methods like email, instant messaging, video conferencing, and file sharing into one interface. Everyone has access to the same information, reducing misunderstandings and delays for employees, managers, and clients.
5. Optimize warehouse management
An advanced warehouse management system (WMS) automates the picking, packing, and shipping processes, helping team members quickly and accurately prepare and send orders. This leads to faster order fulfillment and improved efficiency.
6. Monitor key metrics
Tracking key performance indicators (KPIs) like order accuracy, fulfillment time, and customer satisfaction lets you evaluate and improve order management while identifying areas for improvement.
7. Enhance data analytics
Using integrated software provides access to more information. Businesses can use this data to better predict demand, manage inventory levels efficiently, and identify areas for improvement.
8. Offer self-service portals
Self-service portals improve the customer experience by allowing them to track orders, manage returns, and access support independently. This reduces the need for direct contact with customer service, decreasing your support team’s workload and making the process more efficient for both parties.
For example, integrating Fishbowl and SalesIn allows for automated data exchange, ensuring real-time accuracy of any order updates. As a result, businesses can offer clients a smoother experience, letting them view order status, submit requests, and manage accounts on their own.
9. Standardize order processes
Set clear and straightforward guidelines for order entry, processing, and fulfillment to maintain consistency and quality in all operations. Periodically review and update these procedures to keep them effective and in line with changes, like new safety regulations you need to follow or more efficient tech that workers can use.
10. Train staff regularly
Regular training sessions update staff on the latest order management practices and technologies. Hold workshops and meetings that allow workers to ask questions and learn about new protocols to foster a culture of ongoing learning and growth within the organization.
Streamline your B2B order management with Fishbowl
Experience the benefits of automated order processing, advanced pricing rules, seamless offline order placement, and more with Fishbowl and its powerful integrations.