Introduction
Order management realities
In studies conducted by IT industry analyst IDC, nancial directors have estimated that the annual cost of processing
order management documents represents between 5 and 15 percent of sales
. Automated sales order processing offers
cost savings and operational efciencies that make companies better equipped to be competitive and protable in a
challenging business environment.
In the age of e-commerce, most companies have instituted some measure of automation within customer order
management. Many even consider their processes to be completely electronic. The reality is, nearly all businesses still have
manual touch points in sales order processing. EDI, XML and Web technologies may automate at least parts of the process
in the majority of customer order transactions, but what about the rest?
The ability to treat every customer as an “e-customer” can close a costly gap in overall business performance. Even
orders that are received electronically often end up as paper on someone’s desk. Although paper is familiar and many
companies have become experts at working with it in their customer order processes, continued reliance on paper has
no value and will only limit an organization’s ability to improve performance. At every manual touch point in processing,
companies lose the transparency that provides a view of daily activities for effective order management.
When companies examine ways to cut costs and improve protability, optimizing customer order processing within the
order-to-cash cycle often holds the highest potential for gains. High performance in order management is probably the
one characteristic that distinguishes top-performing companies more than any other. Automation enables companies to
quit paper, gain efciencies and achieve peak performance.
According to research by IT industry analyst IDC, businesses clearly recognize the benets of document process automation
for sales order management.
Improved productivity of individual employees and the company as a whole
Increased competitiveness for the business
Improved cost management and cash ow as a result of reducing customer order processing and storage costs
Reduction in the number of errors and returns causing order-to-cash delays
Increased customer satisfaction from on-time delivery, order tracking ability and responsiveness to customer requests
But another reality of order management is the expense and complexity of implementing software for comprehensive,
enterprise-wide automation can be an obstacle to putting a solution in place. This has made the Software as a Service
(SaaS) model an increasingly attractive option. With the advancement of SaaS technologies, on-demand solutions have
become more prevalent. Gartner Group estimated the SaaS market at $6.4 billion in 2008 and projected a likely doubling
of the market by 2012.1
SaaS delivers the benets
Today all the benets of automated sales order processing are available through the SaaS model. Essentially, all you
need is an Internet connection to deploy a powerful solution across the entire enterprise. SaaS offers the opportunity to
integrate end-to-end automation with existing processes, spanning the document lifecycle from receipt and capture to
workow, archiving and retrieval. In working with a diverse range of businesses to automate sales order processing, Esker
has found that companies typically cut operational and administration costs by 40 to 60 percent with Esker on Demand
SaaS solutions.
As a resource to assist CEOs, CFOs, CIOs, managers and administrators in evaluating SaaS for sales order management,
this paper presents a solution that leverages comprehensive document process automation to deliver the advantages of
paperless order processing as an on-demand service. It highlights the opportunity to shift ROI from the project level to the
document level (capital versus operational expense) and realize automation benets immediately.
1
Guseva, Irina. “Gartner: SaaS is Hot, Revenue Will Keep Rising.” CMSWire, October 28, 2008.
3
ESKER ON DEMAND WHITE PAPER