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How Old Fax & Phone Ordering Systems Cost You Money and Cause Friction

Posted on October 29, 2019 by Chris Adams

Fax and Phone Ordering System Friction

If you work in wholesale ordering, you’re probably well aware of the fact that other people find it very strange that you’re still doing business over fax machines and the phone. However, you might not be aware of how much it’s really costing you.

A lot of retailers are hesitant to switch to a new system because this is “the way it’s always been done.” Your employees are all trained and well-versed in these systems and they appear to work OK. However, they only appear to work.

If you take a closer look, phones, faxes and paper-based systems cause friction in the ordering process and create some very costly problems.

Here are a few of the most common.

Mistakes Due to Missing Information

Suppliers may come to you once a year. Let’s say that’s in the fall. But you had a good winter. Now in April or May, you need to place an order.

Now, you’ve got to go find that order form. But you can't find it because it's been six months. Then, you've got to find the fax number or email for the order desk because your information is all over the place and not current.

With nothing to go on from your end, you try the quickest way you know how to find the answers. You pick up the phone and call the sales rep, then place your order based on what they tell you.

The problem with that is sometimes the sales rep writes down the wrong product number or enters it into their system incorrectly. So, you get the wrong product showing up, which may cost you hundreds or thousands of dollars, and the time it takes to get that solved. 

The most dangerous part is you don't know a mistake is made until it's actually delivered. You may have had customers waiting on you to stock up your inventory. Now, they’re frustrated and they go to your competitors.

Losses From Outdated Prices

Another major issue is that you don't know truly what your current price is. Sometimes the pricing has changed since your last pricing sheet.

I can tell you from personal experience that I've seen major hardware chains pull out a pricing sheet that was dated 2016 and they don't have the 2019.

What happens when you put a retail price on that product based on what the last cost was before the increase? You don’t find out there’s a problem until the invoice arrives. Now, your margin is too low on the products that are still on the shelf, and you may have already sold the product at a lower price.

How Ordering SHOULD Happen

When I place an order, I should be able to go to a place where I can see the current inventory is available and the current price. Now, I place that order with the most accurate information.

That proper product comes in it's properly priced. Now, as a retailer, I'm more efficient and my margins are stronger.

Want to Take Control of Your Margins and Your Inventory?

When you connect your point-of-sale system to a platform like OrderEase, you can keep all of your suppliers' products and costs up-to-date.

There's no manual entry for setup. Costs are always kept up-to-date. You can create the purchase order in the system, while knowing that that accurate purchase order is electronically delivered down to the supplier.

Want to see how it works? Click here to try it out!


Why just keep up when you can be out front?

OrderEase can show you how easy it is to embrace technology to make your order management process more efficient with online ordering. Schedule a personal tour of OrderEase.

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