Knowledge Center

An order, which originates from a quotation, mainly contains the agreed terms that have been negotiated between you and your customer. An order, which requires confirmation from you to the customer, can be legally binding. Once you receive the order confirmation, you can add the order value in the company’s income projections.

An order can also be generated without being preceded by a quotation. This may be because the order is small, or the customer has a preexisting agreement of terms to be applied to all orders, such as purchases from a web shop. These agreements may be written or verbal, containing the agreed terms such as delivery time and price. This solution reduces the delivery time and the time overheads of administration.

In addition to the several other tasks in the ordering process, you should also follow up the committed, but as yet undelivered, orders. This is the customer backlog. Within this task you can follow up the customer backlog based on requests or your internal routines. For example, get committed dates from suppliers and/or production, making sure that the orders are delivered according to committed schedules or attempt to expedite purchase orders/production if the customer’s requested date is not met.

Follow up the customer backlog periodically to reduce delivery slippage. On-time deliveries can be increased by closely following up the backlog.

An order can be cancelled if necessary.