Sales order exception handling is the process of finding and fixing problems in customer orders that stop them from being processed normally. An exception is anything that means the order cannot be entered exactly as received, such as an out-of-stock item, a price that does not match or a product the rep cannot identify.
On most order desks, exceptions take up far more time than clean orders. A clean order takes minutes. An order with an exception can stay open for hours or days while the rep waits for the customer to reply.
Common types of order exceptions
| Exception | Example | Usual fix |
|---|---|---|
| Out of stock | Customer orders 12 units of an item with none available | Offer a substitute or backorder |
| Short stock | Customer wants 50, only 30 available | Partial ship or substitute the rest |
| Price mismatch | PO price differs from the customer’s contract price | Confirm the correct price with the customer |
| Unknown item | Customer uses a name or code not in the catalog | Match to the right SKU or ask |
| Unit of measure | Unclear whether “10” means cases or eaches | Check history or confirm with the customer |
| Discontinued product | Item is no longer sold | Suggest a replacement |
| Missing information | No delivery date or address | Ask the customer |
| Minimum order not met | Order below the MOQ | Suggest adding items |
| Credit hold | Account over its credit limit | Route to finance |
The exception handling process
- Detect. Validation checks find the problem, ideally before the order is saved.
- Decide. Choose the right fix, such as a substitute, a partial shipment or a price correction.
- Contact the customer. Explain the issue and propose the fix through email, phone or text.
- Get approval. Wait for the customer to agree.
- Update and close. Change the order, enter it in the ERP and confirm back.
Steps three and four cause most of the delay, especially when the rep is juggling other orders or the customer replies after hours.
Why exceptions are costly
- Orders stall while waiting for replies
- Reps lose time switching between orders and chasing customers
- Customers get frustrated when they hear about problems late or not at all
- Sales are lost when a stockout is not offered a substitute
- Errors slip through when reps are rushed
Best practices
Catch exceptions early. Validate orders as they arrive, not at the end of the day. This guide to automated order validation in wholesale covers the checks to run.
Agree substitution rules. Know each customer’s preferred substitutes in advance.
Use the customer’s preferred channel. Some buyers answer texts in minutes but ignore emails for hours.
Set clear escalation rules. Decide which exceptions a person must approve, such as large credits.
Track exception types. Recurring problems often point to catalog, pricing or stock issues you can fix at the source.
How Ordana helps
Ordana resolves exceptions without waiting for a rep. The Ordana Desk Agent validates every order as it arrives and identifies out-of-stocks, pricing issues, EDI flags and unclear items. It then contacts the retailer through their preferred channel, proposes a fix, such as a comparable substitute, and closes the order once they approve.
When a phone call is the fastest route, the Desk Agent hands the exception to the Ordana Voice Agent, which calls the retailer and then passes the order back to be closed. Exceptions that need human judgement are escalated with full context, so your team only sees the cases that really need them.
Schedule a demo to see Ordana resolve your common exception types.
Frequently asked questions
What is an order exception?
Any problem that stops an order from being entered exactly as received, such as a stockout, price mismatch or unclear item.
How do you reduce order exceptions?
Keep catalog and pricing data current, map customer item codes and agree substitution rules in advance.
Can EDI orders have exceptions?
Yes. EDI orders can still contain out-of-stock items, wrong prices or discontinued products.
Can AI handle order exceptions?
Yes. AI agents can detect exceptions, contact the customer, agree a fix and close the order.
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