Maximizing Visibility in the Order Lifecycle: Why It Matters for Distributors

A customer places an order for a critical machine part. Everything seems fine, until it’s not. The item is actually out of stock, so the distributor orders a replacement. But the supplier’s delivery timeline is uncertain. The customer calls for an update, but customer service can’t give a clear answer. The customer’s frustration builds, and trust in the distributor falls. One missing link—visibility into the status of an order—has created a domino effect. Visibility into the full order lifecycle is critical to ensure efficiency, accuracy, and customer satisfaction. Without it, distributors will experience blind spots. 

Let’s look at the obstacles obscuring distributors’ view. 

The Order Lifecycle: From Order to Return 

Distributors need a clear view from the time an order is entered into the system to when that order is fulfilled. They even need to able to efficiently manage returns if the order isn’t right. Here are the key touch points in the order lifecycle:  

• Order entry and validation, ensuring that the order was captured accurately, and that inventory is available to fulfill it. 
• Order processing and fulfillment, which includes managing the warehouse operations and shipping logistics required for that order. This includes providing updates to the customer. 
• Delivery, with real-time tracking. That real-time tracking is less common in B2B than in B2C but valued by customers who need that to plan their own operations. 
• Returns and reverse logistics, which involves efficiently handling returns while maintaining customer trust. 

At each of these stages, distributors have an opportunity to reduce errors, increase speed, and improve the overall customer experience. 

The Cost of Blind Spots 

Consider a safety products distributor who tells a manufacturing plant their shipment will arrive in three days. Due to an unanticipated warehouse delay, the shipment instead takes six days. The plant, relying on that delivery to keep operations running, escalates the issue, demanding compensation and switching suppliers for future orders. 

Visibility gaps like these can lead to inefficiency, frustrated employees and customers, and lost revenue for customers that depend on distributors to keep operations running.  

Here are the costs: 

Wasted Time 

When your team is spending too much time tracking down order status, whether internally or with vendors, they are not spending time strengthening customer relationships. 

Damaged Credibility 

When customers get the wrong information from your CSRs or sales reps, they’re likely to lose trust in your business. For example, if a sales rep promises next-day delivery but they’re using outdated inventory data to do that, the fulfillment team may process other orders first. As a result, the customer’s order may be delayed, and they will take their business elsewhere. 

Lost Sales Opportunities 

Without real-time visibility into stock levels, distributors may oversell products that aren’t available or underestimate demand, leading to stockouts. That results in selling less to existing customers or pushing them to a competitor to fulfill an urgent need. 

Higher Inventory Costs 

Distributors may hold safety stock to compensate for fuzzy visibility, tying up working capital. 

Reduced Customer Loyalty 

Business buyers increasingly want transparency into their orders. If delivery dates are unreliable or unclear, customers lose confidence in their distributors. That can cost them money and may result in less repeat business.  

What’s Causing Order Visibility Gaps? 

Disconnected Systems 

When your ERP, Warehouse Management System and CRM don’t communicate with each other, teams lack a unified source of truth. 

Lack of Real-Time Updates 

Delays in synching order, inventory and shipping data can lead to an increase in errors and delays in processing and fulfillment. Add limited order-tracking capabilities to that, and teams and buyers are often left hoping for the best. 

Limited Supplier-Distributor Data Sharing 

Distributors and their vendors need to share real-time updates to ensure the end-user – the distributor’s customer – is well-served. This will ensure accurate order promising and a more reliable supply chain. Read more about the challenges distributors and their suppliers face in communicating clearly. 

The Technology Distributors Need to Improve Order Lifecycle Visibility 

Distributors need an integrated system, portals for greater visibility on both the customer and vendor sides, and they need to leverage the latest technology including AI and automation to better anticipate demand and prevent stock-outs. Data needs to be consistent across the board, including order updates, inventory levels, and vendor communications. And distributors need to be able to continuously improve processes with greater visibility into areas for improvement. 

Microsoft Dynamics 365 Supply Chain Management can help in all these areas. Key features that enhance order-lifecycle visibility include: 

• Order Promising: Order promising helps you promise delivery dates to your customers and gives you flexibility so that you can meet those dates. 
• Demand Forecasting: Dynamics 365 uses AI to improve demand forecasting, which allows you to optimize inventory levels and reduce stock-outs or overstocks. Vendor Portals: Vendor communication and performance management are essential to fostering and maintaining mutually beneficial relationships between vendors, distributors and their customers. Read more about Vendor Portals. 
• Automated Inventory and Fulfillment Updates: Automation within Dynamics 365 Supply Chain Management ensures that inventory and fulfillment data are updated in real-time. This minimizes discrepancies and enhances efficiency. 
• Advanced Analytics and Reporting: Dynamics 365 Supply Chain Management drives data-driven decision-making in the order lifecycle. 

How Sikich Can Help 

If you’re looking for greater operational efficiency, improved customer satisfaction, and stronger collaboration with your vendors—all while lowering costs and improving sales—Sikich can help. While Microsoft Dynamics 365 Supply Chain Management offers powerful tools to improve the order lifecycle, success depends on implementing best practices, optimizing workflows, and leveraging data effectively. Learn more about our distribution and supply chain technology solutions.