16 February 2024 The increase in online purchases, economic recovery, growth in retail movements, and new consumption combinations (online and offline) mark the post-pandemic period for companies of various sizes and market niches. Despite democratization and new opportunities, some brands struggle to keep up logistically with all the incoming demands. Changes in the market and consumer preferences have brought a series of challenges to logistics managers. Among these, we can mention the ability to manage complex processes, such as the growing volume of orders and requests from different channels, integration among all these channels, inventory control and visibility, employee and operations management, and the pressure for agility, flexibility, and service quality. Fortunately, technological progress has enabled the development of increasingly intelligent and efficient solutions. When discussing the complexities of the new retail and its implications for logistics, the OMS system (Order Management System) emerges as a great ally. The software can integrate all order-related processes, from purchase to the final delivery of the product to the customer. In this article, we cover the fundamentals of order management, its major challenges, and the main benefits an OMS system can bring to the development and growth of your company. Take a look below: Order Management Challenges The way orders are managed in a company is directly linked to the efficiency and quality of a service. If poorly planned, it can become one of the major bottlenecks for business growth, compromising the entire logistics strategy and even the brand’s reputation. That’s why this area deserves special attention, starting with identifying its main challenges, among which we highlight: Increase in order volume: demand and the number of orders can vary significantly at different times of the year, thus unexpected sales peaks can occur, especially if these sales happen across multiple channels. In this case, it is essential to understand the company’s order history and be prepared to handle such fluctuations, ensuring that all orders are fulfilled within the established deadline. Inventory management: understanding how to efficiently manage inventory is one of the major logistical challenges for companies, especially when the inventory includes a high variety of products. It is necessary for the stock to always be updated and for there to be enough products available to meet demand. Order processing: it is common to find companies that still process orders manually, which can lead to a lengthy and error-prone process. One of the challenges encountered is ensuring that orders are processed accurately and quickly to meet customer expectations and desired delivery times. Order tracking: customers expect to be able to track their orders in real-time, from pickup to final delivery. Therefore, offering an accurate and reliable tracking system promotes a good relationship and trust in the brand. Returns management: this process can be quite complex and time-consuming, so it is important to have an efficient system for managing exchanges and returns to ensure that customers are refunded or have their products exchanged quickly and efficiently. 8 Problems the OMS Software Solves in Order Management We have previously seen that order management involves a series of logistical challenges that directly interfere with the efficiency and reputation of the brand, but with a good OMS system, many of these challenges can be overcome. It is important to highlight that the OMS software is specifically designed to handle order management, covering all the variables that made logistics more complex. In practice, this means that it doesn’t matter if your company sells in channel A, B, C, or D or if it has N units of stock. Additionally, it doesn’t matter if the customer goes through these channels. The basis of the OMS’s operation is the complete integration among all the links. In other words, the system allows for management in one place, centralizing data and increasing visibility and control. Below we present some problems the software solves and how it does so: 1- Lack of Stock Control The warehouse is undoubtedly the backbone of a company and deserves exclusive attention for its management. However, the lack of monitoring and organization of stock is still a reality for some companies, directly interfering with the availability of products to meet customer demands, causing losses or damage to items in the warehouse, as well as delaying deliveries and increasing consumer dissatisfaction. With the OMS software, it is possible to obtain 360° visibility of all stock, integrating with sales channels and exchanging information on orders placed, entries, and exits. The main goal is to share real-time data on the availability of a product, and this information is transmitted to all channels. If your company sells on a marketplace, for example, stock data will be automatically updated. This way, one of the main problems is avoided, such as selling products not available in stock. 2- Difficulty Tracking Orders Customers appreciate transparency and the ability to monitor their purchases from payment to final delivery. Companies that meet this requirement provide greater trust in the relationship with consumers and ensure their loyalty. However, for some of them, sharing real-time information still represents a challenge. Monitoring every stage of the delivery process, from the moment the order is placed until the product arrives in the buyer’s hands, is one of the main advantages of the OMS system. The software not only integrates with different sales channels but also connects with carriers, allowing companies to fully monitor order processing, up to the last mile, and share this information with customers. It is worth adding that this is an advantage not only for buyers but also for sellers, who now have full control over the service, being able to make agile and assertive decisions to maintain a high standard of service. 3- Fragmented Information The lack of integrated communication is one of the main problems for companies that have different sales channels. Imagine the following situation: a shoe company has an online store and a physical store, but both stocks are not integrated. At a certain point, there is a high demand for a sneaker on the website, but this product is not available in the stock that serves online sales. In the physical store, there is a sufficient quantity of items. However, since the channels are not connected, the merchandise will remain in the store’s inventory and will no longer be sold online due to a lack of integration. With the OMS software, this situation and others like it no longer occur because the software integrates, collects, stores, and shares data from all points of contact, meaning that employees from physical or digital stores can easily access other sales channels to efficiently serve a customer. We call this 360° visibility, where any employee can access data across all channels. 4- Difficulty Processing Orders Across Different Sales Channels The omnichannel trend is already a reality for many companies seeking to integrate their physical and digital spaces in one place. However, it is necessary to consider the use of technologies for greater logistical efficiency, ensuring a positive experience for customers. One of the main features of the OMS software is the acquisition and processing of orders across multiple channels, including those initiated in one channel and completed in another. In other words, if a customer wants to purchase a certain product in a physical store and receive the product at home, the system can process the orders placed in the store and send the process order to the warehouse closest to the customer, completing the order process with delivery. 5- Errors in Online Orders and In-Store Pickup As seen in point 4, new consumption options have emerged based on customer demand, the most common being the ability to make an online purchase and pick it up in a physical store. Even though it may seem simple, for it to work, it is essential that there are real-time updates on stock levels, ensuring product availability in the store, as well as accurate communication of the order flow from the digital commerce system to retail partners, ensuring that the order is ready when the customer arrives to pick it up. The OMS system makes this function possible, as it processes orders placed in other channels, ensuring the availability of the product at the pickup location chosen by the customer and providing the necessary information for store employees to prepare the order for pickup. 6- Delivery Delays It is no news that consumers are increasingly concerned about the delivery times of their products, and this drives companies to invest in systems that increase process agility to meet market expectations. In this scenario, delivery delays can have a significant impact on a company’s reputation. In addition to delivery speed, some companies offer the possibility of scheduling and customizing deliveries. This process is generally managed after the order is placed and often requires manual processes prone to errors, resulting in an unsatisfactory customer experience. With the OMS software, companies can monitor the entire delivery process in real-time, allowing immediate intervention to correct any issues that may arise and ensuring deliveries are made within the established deadline. 7- Human Errors Communication errors, manual processes, and human errors can eventually occur in a company’s logistics and order management processes. This happens for many reasons, whether it’s workload overload, fatigue, high volume of information, notes on spreadsheets, notebooks, and handwritten notes that can be lost, among other cases. The truth is that manual errors occur for a variety of reasons, and any deviation from information can affect productivity and work efficiency. With the OMS system, employees do not have to manually enter data related to orders and stock, in addition to other information that increases the risk of errors. By integrating the software with systems like ERP and WMS, as well as with sales platforms, all these processes become automated, reducing the risk of human errors and increasing data accuracy. This can lead to more reliable and high-quality service, increasing customer satisfaction. 8- Failures in Reverse Logistics Mastering reverse logistics management is an important skill for order management. Developing simple, transparent, and agile exchange and return processes is essential for the customer experience and to ensure resource savings. In an integrated channel environment, that is, in the omnichannel universe, reverse logistics management becomes even more complex and necessary, as in this model, there are also different return options for multiple stock locations. But this becomes much simpler with the use of the OMS system. The solution can efficiently track items throughout the entire return process and automate the return of items to inventory. The visibility of the complete transaction history and analytical tools are one of the main functions of OMS, in addition to providing data on the return rate per customer and product. This allows for more informed decisions regarding intralogistics processes, the quality of service provided, and other customer-related issues. How to Choose the Most Suitable OMS Software for Your Company? So far, you have understood how the OMS system can work to solve problems in order processing and how these advantages can increase the productivity and profitability of your company. But a question may arise: “How to choose an OMS system suitable for your business?” Choosing the OMS software that meets market expectations and the current specifics of your business can be a challenging task, as there are many options available on the market. However, it is necessary to exercise discretion to make the right choice. When evaluating providers, it is important to consider some characteristics such as: Integration: ensure that the OMS system can integrate with existing systems in your workflow. Scalability: choose a solution that allows your business to grow, that is, check the scalability and flexibility of the software, and ensure that the tool allows you to expand or reduce order management capacity when necessary. Ease of use: look for a practical and intuitive solution to use. Think about your employees, after all, they perform tasks daily and need speed and efficiency. Choose an interface that is easy to navigate, allowing your employees to be trained quickly. Customization capability: check if there is the possibility to customize the OMS system to meet the specific needs of your company. Availability of technical support: having a partner company that responds technically when necessary is crucial in choosing an OMS solution. Ensure that the provider company offers quick technical support, providing various means of contact, such as chat, email, and phone. Price: evaluate the cost-benefit ratio that the OMS software can offer your company. Make a comparison between the available options and choose the solution that best fits your needs, ensuring that the cost is justified by the benefits you will obtain. Always remember that choosing the OMS software is an important decision that will directly influence your business logistics, so take the necessary time to carefully evaluate the available options and choose the solution that best fits your needs and business goals. Conclusions Order management is one of the most critical activities for companies, as it directly affects service quality and customer satisfaction. With the advent of new technologies and the increasing complexity of the market, it has become essential to adopt intelligent and integrated solutions to ensure a smooth and efficient process. The OMS system emerges as a response to many of the challenges faced in order management, offering a complete and integrated solution that covers the entire process, from order receipt to final delivery to the customer. With advanced features such as real-time order tracking, integration with different sales channels, and automated inventory management, the OMS software can help companies optimize their operations, improve service quality, and increase customer satisfaction. If you are looking to improve order management in your company, consider implementing an OMS system and take advantage of its numerous benefits to grow your business and stay competitive in today’s market. OMS System: What Problems Does the Software Solve? Deagor WMS per ecommerce può aiutarti!