Nov
16

Part 2: Sales Order Automation the Design Strategy

Posted on November 16th, 2018 Blog

INTRODUCTION  

In Part 1 of this blog I looked at the motivation for implementing an enterprise level Sales Order Automation solution. I broke it down into a series of questions and answers that hopefully provided the insight necessary to determine if Sales Order Automation could be a viable solution for your organization. 

In this blog I will expand on those topics and present two design strategies that can be considered for such a solution. I will outline the pros and cons of both design strategies with the goal of helping decide which might be the best approach for your organization. 

SALES ORDER DESIGN STRATEGIES  

For those of you considering Sales Order Automation there are a few things to consider which may guide you towards a specific Design Strategy and those are: 

  • Time 
  • Budget 
  • Resources 
  • A Corporate Automation Mandate 

The two design strategies that can be implemented for a successful Sales Order Automation outcome are 

  • A design that is Wide & Shallow or 
  • A design that is Narrow & Deep  

Based on time, budget, resources and the corporate automation mandate your organization could be forced to follow one design strategy over another. Regardless of the corporate pressures, both design strategies are solid approaches and work very well. So let’s dive in. 

Wide & Shallow: The wide & shallow design strategy is one where the Sales Order Automation solution must cover a wide range of functionality. Its goal is to be able to process a variety of customer sales orders, however it cannot focus on STP (Straight Through Processing). One can expect that in this solution that many sales orders will be sent to the Verify Task for manual review. 

The primary reason for implementing the wide & shallow design strategy is usually to address a corporate desire to bring the order entry process in house. Bringing the process in house means that Datacap needs to be able to deal with all sales order that currently are processed in the outsourcer’s solution. The focus here is not straight through processing, it’s the ability to handle many sales orders and process them in a timely fashion. 

This strategy will likely result in the size of the sales processing team growing larger in size before it gets smaller. There will be an impact on change and therefore the topic of change management is a real concern and must be taken seriously. 

Narrow & Deep: The narrow & deep design strategy is focused primarily on STP (Straight Through Processing) results. Organizations that wish to implement this strategy are looking at onboarding a limited number of customers and focus on ensuring that these sales orders being processed by Datacap go directly to the ERP and require no manual review whatsoever.  

Organizations desire this approach if the top two or three customer’s account for 70 – 80 % of the overall sales order volume being processed daily. 

If the narrow & deep design strategy is chosen, there is usually a desire to address a resource allocation concern. Surprisingly enough, this does not mean a reduction in staff, rather it is a way for organizations to deal with a smaller workforce due to things like retirement.  

SUMMARY 

If you would like to learn more about Sales Order Automation or want to see if Sales Order Automation can help your organization Click Here to request MagicLamp’s Sales Order Automation questionnaire.

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