Top 10 benefits of Order Management System
Order Management Systems are not a new technology by any means, and have been utilised in a variety of sectors for many years. However, the need for a complete, powerful Order Management System (OMS) has never been greater for the ordinary online company. This is due to the fact that the way people shop has evolved dramatically–from in-store to phone, catalogue, Web, and mobile–consumers are increasingly using a diverse range of channels to purchase items. In this blog, we will know the top 10 benefits of order management system.
- What order management can do for your organization?
- The Need for order management solutions
- Benefits of Order Management System
- What to look for in an Order Management System
What order management can do for your organization?
Managing orders has become a difficult chore in recent years due to the proliferation of new sales channels and fulfilment choices, but the correct Order Management System may go a long way towards assisting firms in ironing out many of the problems. An OMS is designed with extremely specialised business rules to decide the most efficient and cost-effective approach to handle, route, and fulfil orders to consumers.
An Omnichannel Order Management System gives merchants a centralised view of all orders from all sales channels, as well as real-time inventory visibility across all fulfilment sites. An OMS can manage all sorts of orders in a fluid and streamlined manner, regardless of whether shops serve a consumer-facing audience (B2C) or resale to other retailers (B2B), or both.
The Need for order management solutions
One of the most significant issues that retailers confront is that their technology is falling behind the times. The rise of internet businesses and the omnichannel experience that customers want has only made the market more competitive. Among these difficulties are:
• Reducing the amount of time and resources required to fulfil and process orders.
• Providing service to the consumer when and how they want it.
• Assisting with emerging multichannel purchasing habits and customer expectations.
However, very few Order Management Systems were created with such foresight in mind.
Most of these solutions are vintage, developed to fulfil the demands of a single-channel business. This can be a significant issue for merchants that are still utilising outdated, divergent, or siloed systems, which are frequently not changed owing to the perceived high upfront cost of upgrading and the probable downtime during installation.
Benefits of Order Management System
One of the benefits of Order Management System is that it helps you to provide trustworthy information to your consumers by synchronising your items, orders, and future supplies. As a consequence, the OMS enhances your business connection while also making it more agile and customised. Your storage expenses are also lowered since the supply chain adapts seamlessly to omnichannel orders and demands, eliminating the need to immobilise goods.
You can build up special orchestration rules for non-working hours and/or days using an Order Management System. It is one of the benefits of Order Management System. Online orders may then be automatically assigned to warehouses, payments processed, labels produced, and confirmation emails sent. Order processing times are greatly accelerated, and stock inventories are updated in real-time.
Because of increased rivalry in the retail sector, you must select tools that can continually adapt to your company’s development. One of the benefits of Order Management System is that it is a dynamic and adaptable solution that will help you expand – and it isn’t just for huge enterprises. Small and medium-sized businesses may also profit from this solution since it optimises existing channels, creates more income, and provides new omnichannel services to meet customers’ ever-increasing needs. It also saves money on logistics.
In stock options
You have a company-wide, real-time picture of your stock thanks to an OMS. Inventory is instantaneously taken across all of your platforms. As a result, the consumer may be confident that the product of their choice is in stock and that their purchase will be processed much more quickly, especially if requested in-store.
The impact of a terrible customer experience is unparalleled in the age of social media and online reviews. In such a competitive market, attracting and engaging clients is critical. The purchasing process must be carefully planned and developed since your clients are as concerned with the quality of the items ordered as they are with the purchasing process itself.
By using an Order Management System, you can provide your clients with a consistent purchasing experience both online and in-store. Providing various sales channels is now a critical area of growth in order to contact and reach your clients wherever they are. Many merchants, in practice, have websites and are active on social networks and marketplaces. All of these are ways for companies to market their products.
Streamlined Inventory Management
Keeping track of inventory may be a difficult process, and if not done correctly, it can result in disgruntled customers, agitated workers, and a dip in revenues. An integrated OMS will manage your stock levels by integrating with your e-commerce channels, ensuring that each of your sales channels is constantly up to date, removing the need for manual intervention.
Having total visibility over your company information from a single centralised platform simplifies understanding where and what you’re selling and provides deeper insights for forecasting and demand planning, ensuring you always have enough stock levels. A contemporary OMS adds significant value not just to the store, but also to the consumer.
Enhanced Customer Experience
One of the benefits of Order Management System is that assists retailers in improving customer service, expediting delivery, and providing more purchase, delivery, and return options to customers, thereby increasing customer satisfaction, improving the shopping experience, and allowing brands to gain a competitive edge over other sellers in their niche.
Internally, an OMS is critical in interacting with other systems in order to decrease manual activities and prevent fulfilment mistakes.
What to look for in an Order Management System
When Forrester Research analyst Peter Sheldon compared trying to sell items to clients without an Order Management System to go into combat with a wooden stick, he made a powerful analogy. These technologies make the entire process more efficient and cost-effective, from receiving the original order to delivering it to the consumer. Not having the correct system in place, one that is capable of handling every order fulfilment scenario in an efficient manner, might be a significant disadvantage.
So, what should a retailer look for in an Order Management System capable of supporting their omnichannel initiatives? We have identified nine critical components that merchants should consider while researching Order Management Systems.
Integration with POS, eCommerce platforms, and online marketplaces is also necessary for an Order Management System to be able to automatically pull and aggregate orders into one area, making it easier for merchants to handle orders as they proceed through the order flow process.
Distributed Order Management
Distributed Order Management (DOM) gives a centralised view of all orders and available inventory throughout the whole distribution network, including fulfilment centres, retail outlets, suppliers, and even shipments en route. This enables merchants to handle all orders from all channels from a single, centralised platform using a single set of order orchestration rules and processes. In essence, the OMS serves as the hub for all channels and distribution hubs, providing sellers with real-time information on the status of all orders and allowing merchants to fulfil purchases in the most effective manner possible.
Intelligent Order Sourcing
With consumers making purchases through a variety of channels and merchants utilising a variety of sources to service these orders, retailers must be able to source orders in the most efficient manner feasible. Using a close retail shop to complete an online order instead of a regional distribution centre may not only be more cost-effective in terms of shipping, but it may also allow you to get the order to customers faster while getting rid of surplus inventory that may not be sold in-store.
Order management may also be a useful tool in assisting merchants with inventory management. Inventory may be managed by different solutions in siloed retail operations, where each channel and distribution centre is considered a separate entity, such as a Warehouse Management System for distribution centres, an ERP for large organisations, or a POS system for brick-and-mortar retailers. A cross-channel Order Management System may successfully serve as the single source of all of this aggregated data, offering merchants greater control over their various channels.
Order Management Systems are not a new technology by any means, and have been utilised in a variety of sectors for many years. One of the benefits of Order Management System is that it helps you to provide trustworthy information to your consumers by synchronising your items, orders, and future supplies. You can build up special orchestration rules for non-working hours and/or days using an Order Management System. It is one of the benefits of Order Management System.