Why Digital Order Management is Key for Wholesale Fashion

The term digital order management refers to an electronic way for both brands and retailers to manage the lifecycle of an order, from presenting a collection through to purchase.

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Traditionally, this process consists of many different elements, including travelling to trade shows in person to find new products, manually inputting order data into spreadsheets and then chasing up via phone and email, but technology has allowed these steps to be streamlined into one cohesive and often automated experience. 

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A report by McKinsey & Co. revealed fashion companies are expected to double their investment in technology by 2030. Order management software is highly likely to be one of the major investments, with a study by Dimension Market Research revealing that the global order management market is projected to reach a value of USD 3.8 billion by the end of 2024 and is anticipated to grow to USD 10.6 billion by 2033.

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How Digital Order Management Benefits Wholesale Business

This guide will examine the areas of fashion wholesale business that are enhanced when using a digital order management system. It will detail the main benefits of adopting order software: efficiency, streamlined processes, scalability, personalization, financial security and improved business insights.

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Improved Efficiency

Digital order management saves both brands and retailers a substantial amount of time that had in the past needed to be spent chasing orders on the phone or following up on restocks via email.

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With the process now completely digital, it’s possible to log onto the software and instantly get an update on the status of an order and see if anything is due to be delayed. This not only increases business efficiency but also heavily reduces the chances of errors. Digital ordering also makes it much simpler for retailers to reorder product instantly, maximizing opportunities for brands to increase revenue. 

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Reduced Expenditure  

Digitizing the wholesale order process can also lead to exponential savings. Access to improved demand forecasting tools can help brands with resource allocation, creating opportunities for cost savings in areas like fabric.

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A recent case study revealed that British heritage brand Belstaff achieved an 80% reduction in operational costs when it began using JOOR’s digital order management tools, proving just how much money can be saved when taking a digital-first approach.

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Scalability 

Digital ordering also helps to increase revenue by exposing brands to a larger volume of buyers, broadening your orders beyond those able to meet in person. With a B2B offering online, they can reach buyers globally without leaving their office, which makes it much easier to enter new markets and demographics.

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Some ordering software is even equipped with translation tools, currency conversion and multiple language options, making it incredibly simple for buyers to reach out to small brands even if they are on the other side of the globe. Australian fashion brand Arms of Eve adopted JOOR’s order management system to try and capture new business in America and has since found 129 new retail partners from around the world.

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Access to Data Insights 

The vast amount of data captured from digital ordering allows both brands and retailers to gain unparalleled insights into their wholesale fashion business. Order and sales reporting functionalities can help to identify top-selling styles, regions, and customers, which can in turn help to inform future business decisions.

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Growth opportunities are much easier to spot when data is digitalized in real time, and inconsistencies can also be addressed with swifter urgency. Ready-to-wear brand Zulu and Zephyr used JOOR’s data insights to spot a surge in its dress sales, allowing them to add more dress options to its linesheets fast enough to achieve a 38% increase in SKU depth from the previous year.

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Streamlined Processes

Digitizing the wholesale order management process also makes it easier to integrate different areas of a fashion business together. Choosing software with ERP and API integration capabilities will ensure smooth data flow across design, production, inventory management, order processing, and shipment, eliminating silos and facilitating a cohesive digital ecosystem.

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Streamlining these avenues improves communication and productivity for brands and retailers, which in turn can help drive revenue and growth. For example, 100% of Shopbop users reported enhanced productivity after using JOOR’s order management tools.

Ability to Personalize the Order Experience

One of the most interesting benefits of digital order management software is its personalization capabilities. Ordering software allows brands to tailor their product assortment and pricing to match each retailer they are working with. This gives them the chance to negotiate and be flexible with MOQs to best suit both their business goals and the retailer's needs. This makes it even easier for retailers to be rewarded for their loyalty and receive exclusive discounts.

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Increased Financial Security

Both brands and retailers benefit from order management systems that process payments. Doing business in a B2B platform makes it possible to work in multiple currencies, helping brands to broaden their client base and assisting them with efficiently collecting payments in order to improve cash flow.

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A streamlined payment process makes ordering easier for retailers, and involving a third party can also help to offer an increased level of security for bigger transactions.

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JOOR’s Digital Order Management Offering

JOOR is the premier choice for leading fashion businesses looking to adopt digital wholesale ordering. Our centralized b2b ecommerce platform offers secure integrated payment processing via JOOR Pay, unparalleled synchronization between brands and buyers, expansive personalization features, and more ERP and custom pre-built API integrations than any other fashion B2B platform. 

Request a demo to explore our full capabilities for yourself and find out how we can help your wholesale fashion business today.

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