An order management system or OMS is software that helps businesses manage order processing and fulfilment efficiently. It is a central hub for handling customer orders, inventory and related information from placement to delivery.
The order management process has various departments, including customer support, warehouse workers, accounting and delivery partners. Mastering order management ensures client satisfaction and protects the company’s reputation.
So, let’s see the functions and selection criteria for OMS for an e-commerce business.
OMS Core Functions
Here is a detailed breakdown of the core functions of an OMS:
- Order Entry and Processing
With the OMS you have a centralised platform for entering and processing orders. You can do this from various channels, ensuring accuracy in capturing order details and customer information.
- Inventory Management
OMS must monitor stock levels in various locations in real-time/ in this way they can send alerts when the companies are low on stock. This allows businesses to forecast demand and manage their inventory efficiently.
- Warehouse Management
When it comes to the broader fulfilment process, some order management system examples like Veeqo, Freestyle Solutions, Sterling Commerce and more offer insights into the efficient ways to pick and pack orders.
- Shipping and Logistics
An OMS tracks the orders throughout the delivery process. It usually uses shipping carriers and logistics services to ensure real-time tracking information for both the business and customers.
- Customer Service
An OMS enhances customer service by presenting a comprehensive overview of order status, history, and potential issues. This empowers support representatives to provide informed assistance and effective solutions to customers.
- Returns and Exchanges Management
Your order management system should also handle the reverse logistics process. It needs to do it as it would update inventory levels ensuring customer refunds or replacements are processed efficiently.
- Cross-Channel Integrations
An order management system solution integrates with multiple channels, including eCommerce platforms, and brick-and-mortar operations, providing a seamless shopping experience for customers and a complete for the business.
- Analytics and Reporting
An OMS should offer analytics and reporting techniques that give insights into sales trends, order volume, customer behaviour and operational efficiency.
5 Advantages of Order Management System
As you have learned previously, OMS can optimise your order processing and fulfilment. But if you’re still sure if you should use OMS or not, then these few benefits might convince you to say yes:
- Maximise Convenience
If you are busy with manual processes or administration throughout the day, there’s a slim chance you’ll be motivated by something that occurs later. With an OMS, an e-commerce platform makes it easier by cutting the employee’s route to process orders in half. They have internal resources to handle the rest of the work making the company more productive.
- Lower Human Error
Order management involves handling vast amounts of data, and when this data is scattered across multiple channels, the challenge intensifies. Human error can lead to mistakes and eCommerce security issues, which if left unchecked, can propagate through inventory or supply chain.
The worst-case scenario occurs when customers discover these mistakes, such as receiving incorrect orders or being charged the wrong amount. This is where order management solutions for eCommerce platforms prove invaluable, as they minimise human error.
- Orders Processed Fast
Customers want quick responses. They are usually impatient and will go to your competitor if the response time is too long. With an order management system, you can reduce delivery costs and improve order routing. This expedited the method of receiving your customer’s order and also reduced delivery time.
- Faster Development
When the order status is in one location, you have a bird’s eye perspective on the situation. This accelerates your development faster and you can focus on providing the best possible features in the shortest possible time instead of tedious data entry.
- Simplify Cross-Channel Commerce
Online retailing is not just about e-commerce websites for people to buy things online. People also sell and advertise their items using multichannel or other social media. This includes YouTube and Pinterest, as well as other marketplaces.
With so many e-commerce platforms, it’s hard to keep track of all the Key Performance Indicators (KPs.) with no errors when you get orders from multiple channels.
How?
With an OMS solution, you make cross-channel or omnichannel commerce of order management system process flow significantly easier with a centralised hub with information on warehousing, logistics, stock levels and goods.
Choosing the Right OMS for Your Needs
Selecting the right OMS for your organisation involves a detailed evaluation of your business needs, growth plans and technical requirements.
Here are the factors you should look into for selecting the right OMS:
- Assess Your Business Needs
Order volume and difficulty: Consider the order volumes you get, and how complex are your order management needs This includes multi-channel sales, international orders and custom configurations.
Customer experience goals: Figure out the aspects of the customer experience you need to improve. This could be delivery times order accuracy or return processes.
- Evaluate System Capabilities
Integration with Existing Systems: Choose an OMS that can easily integrate with an existing platform or ERP, CRM or PIM systems. This will ensure seamless data flow minimising disruptions.
Automation Features: Assess the automation capabilities that can streamline order processing, reducing manual errors and operational costs and fulfilment and returns.
- Assess Technical Aspects
Cloud-Based vs. On-Premise: Choose between a cloud-based OMS, offering flexibility and lower initial costs, or an on-premise solution, providing greater control and customization, based on your business needs.
User Interface and Ease of Use: The system should be intuitive and user-friendly, requiring minimal training. A well-designed interface enhances efficiency and minimises errors.
Security and Compliance: Ensure the OMS adheres to industry standards for data security and privacy, particularly if you handle sensitive customer information.
- Check Your Vendor
Support and Training: Assess the level of training and support given by the vendor. This includes resource availability and response times for support and ongoing training.
Reputation of Vendor: Research the reputation of the vendor you hire. Look for reviews and testimonials from previous hires.
Cost: Consider the initial and the total cost of ownership, including any ongoing fees and additional features.
- Future Plan
Flexibility and Customisable Features: Give preference to an OMS that has flexibility and custom features so it can adapt according to your future business needs.
Innovation and Updates: Consider if the vendor regularly updates the software with new features and stays alert about the industry trends to support your business’s growth over time.
ECommerce Order Management System
The process of selecting the right OMS system requires careful consideration of the operations of the system and your company’s current citation and future goals. It’s better to request a free demo or a trial use to see if the OMS is compatible with your company’s workflow.
It will help you to find the best eCommerce order management system that aligns with your organisation’s objective and enhances operational efficiency. With an ever-evolving digital marketplace, the integration of OMS is crucial to streamline operations enhance customer experience and scale in a competitive world.
FAQs: Role of Order Management System in ECommerce Business
Does OMS improve the e-commerce experience?
OMS is a logistic superhero. Modern order management streamlines operations, tracks inventory, and fulfils orders, working together with your eCommerce platform for a seamless customer journey and boost sales.
Why do I need an OMS?
An OMS integrates with your eCommerce platform to provide a smooth customer experience. It helps you avoid stockouts, fulfil orders faster, and meet customer expectations, ultimately boosting sales and customer satisfaction.
How does an OMS benefit my inventory?
An OMS offers a real-time view of your inventory across all sales channels. This eliminates overselling and ensures accurate stock levels. It also helps optimise order fulfilment by suggesting the closest location with available stock, minimising delays and shipping costs.
Conclusion
Mastering order management systems is crucial for eCommerce success. An OMS tackles everything from order processing to inventory, ensuring happy customers and thriving sales. Qodenext provides expert supply chain solutions, including powerful OMS tools. Contact us today and let’s unlock your ecommerce potential!
