Order management

Digitize and integrate procure-to-pay and order-to-cash business processes with an order management solution for 360-degree supply chain visibility

Obtaining visibility into end-to-end procure-to-pay and order-to-cash processes, including order and invoice management, can be challenging. Digitizing these transactions offers greater visibility into the stages of the purchase order lifecycle, streamlining supply chain processes and improving cashflow.

OpenText Active Orders is a cloud-based solution that provides buying organizations with the technology and services to optimize transaction management. It offers 360-degree supply chain visibility with all suppliers, including those not digitally enabled with their own order management software solution.

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What is an order management solution?

Order management refers to the order and invoice management cycle that supports two key business processes: procure-to-pay and order-to-cash. Procure-to-pay supports the buy side of business operations for the purchase of goods from trading partner communities, while order-to-cash supports the sell side of business operations for the sale of goods to customers or downstream resellers and distributors.

On average, a purchase order with end-to-end processing requirements across the extended enterprise can cost $80 to process manually. A digital order management solution can significantly reduce this cost.

Integrating and optimizing this manual process enables a three-way match between the Order, Shipment and Invoice, comparing the quantities, price per unit, terms and other information across the three documents. In other words, does the vendor’s invoice detail match the organization’s purchase order and the received goods on the receiving report? The vendor’s invoice will only be entered as a valid invoice if the details on the three documents match.

OpenText Active Orders overview

Active Orders is an order management solution that digitizes the procure-to-pay process for companies interacting with a diverse supplier community. The solution makes it easy to quickly and collaboratively answer questions, such as order acceptance, order shipping times and invoice status. Buying organizations get a cost-effective, powerful, unified view into data from their various ERP instances and can securely extend this view to their supplier communities.

Active Orders supports traditional order management, including order execution, logistics and invoicing and payment processes for all transactions. A simple, intuitive web portal provides access for non-digital suppliers, enabling digitized transactions for the entire trading partner community. A mobile application allows suppliers to receive new order notifications, search, view status and accept or reject orders directly from the app.

Purchase-to-Pay transaction lifecycle diagram

Typical complexity of a purchase-to-pay transaction lifecycle

OpenText Active Orders features

OpenText Active Orders provides key capabilities to optimize end-to-end procure-to-pay and order-to-cash business processes.

Order lifecycle visibility

Get visibility into the progression of purchase orders through each step in the order lifecycle.

Shipping and receiving/logistics

Significantly improve supply chain efficiency by automating warehouse receiving and digitizing documentation flows.

Invoicing and payments

Allow non-digital suppliers to generate accurate invoices and view the payment status of previously issued invoices.

Analytics and KPIs

Monitor supplier performance with advanced analytics against performance indicators, such as order acceptance, invoice accuracy, delivery punctuality.

Support specialized business processes

Optimize best practice supply chain processes, including:

Direct Store Delivery (DSD)

Meet consumer demand by delivering directly to the store, bypassing the distribution center and shortening delivery times.

Vendor Managed Inventory (VMI)

Further increase supply chain efficiency with visibility into the buyer’s product inventory so suppliers can manage the product inventory at the buyer’s location.

Evaluated Receipt Settlement (ERS)

ERS, also called self-billing, is a business process in which goods are purchased and paid for without exchanging an invoice, allowing for a greatly streamlined procure-to-pay process.

Cross-docking

Warehouse space can be more effectively utilized by cross-docking shipments when informed by a complete advance shipment notice (ASN) and barcode.

How OpenText Business Network supports Siemens Electronic Supplier Integration program (ESI+)

With Active Orders, companies have achieved up to

25%

Improvement in purchase order issuance by automating the acknowledgement process

75%

Reduction in warehouse receiving time with ASNs and barcode labels

15%

Safety stock optimization with better visibility into inbound shipment

80%

Error reduction through automatic identification technology, such as web-based barcode labeling

OpenText Active Orders benefits

Trade electronically with non-digital suppliers

Enable supplier access to retrieve orders and respond electronically through an intuitive portal.

Increase visibility of transactions and logistics

Access transaction and logistics status for both the buying organization and suppliers to enable collaboration and fast resolution of issues.

Drive continuous improvement with suppliers and carriers

Improve delivery and invoice processes, negotiate terms for new contracts and alleviate risks created by poor performance using dashboards that offer a visual summary of supplier performance against key indicators.

View transactions anywhere

Get alerts for new orders and order status changes on mobile devices and access a mobile dashboard to locate transactions that may require attention and take action directly within the mobile app.

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