6 November 2021

What is an OMS (Order Management System) and why is it essential for e-commerce?

6 November 2021

The purchasing market is no longer the same. Buying habits have changed, as have customer expectations. With the advent of omnichannel, consumers have a range of options to make a purchase. But they don’t just want the flexibility to move between different sales channels. They want the same standard of service across all of them, meaning they want a positive and unified shopping experience.

This requires a new attitude from companies. It is no longer possible to maintain decentralized order management, opening loopholes and losing information during the purchasing process. If a customer has purchased online and wants to pick it up in-store, the right product must be in the right place at the exact time the pickup will occur. If they want to make an exchange or return, it should happen without any hindrance. And for all these processes to occur efficiently, the company must have complete control over all orders, especially if it involves ecommerce, which needs an OMS (Order Management System).

Order Management: A Challenge

Order management is a process that handles the entire cycle of an order, from the moment the customer makes the purchase, through its processing within logistics warehouses, to the arrival of the product(s) at the final recipient. Essentially, it involves almost all departments of a company, such as: sales/customer service, warehouse staff, accounting/finance, and even delivery partners.

When this management is carried out desirably, a company’s workflow is optimized, establishing efficient processes that ensure customer satisfaction and protect the company’s reputation, as well as the best use of its resources.

However, managing the entire order cycle is not a simple task. After all, having a complete view of demand, stock, and supply is a significant challenge for any company. There must be multiple contact points and subjects working in a fully interconnected manner, ensuring that the entire customer purchasing process proceeds without obstacles or failures.

The fact is that customer demand for a unified shopping experience has introduced new complexity into the supply chain that is practically impossible to manage manually. Therefore, there is a growing demand from companies for specific software to help them in this challenge, a role played by the OMS (Order Management System).

What is an Order Management System (OMS)?

The Order Management System, or OMS, is software that tracks all information and processes related to orders, including order entry, inventory management, order fulfillment, and after-sales service. Through the system, both the company and the buyer have visibility into the data that interests them most. For example, organizations now have an almost real-time view of their inventory, while the customer can better monitor the status of their order.

The OMS operates in interconnection with the WMS (Warehouse Management System) and the ERP, exchanging information that allows real-time updating of stock and order data. We can say that the integrated work of OMS, WMS, and ERP is the key to unified commerce.

The significant difference with OMS is that it provides a centralized place to manage orders from all sales channels. This is crucial for providing a high-level customer experience, providing information about your order, ensuring deliveries are made on time, and meeting customer expectations for purchase, delivery, and exchange/return when necessary.

Moreover, OMS greatly benefits the workflow within companies, as it gathers information in one place, allowing interconnection between various links, such as Sales, Finance, Logistics (support), and the customer themselves. For the manager, it functions as a tool that allows end-to-end visibility, significantly assisting in decision-making.

Main Advantages of OMS

The Order Management System (OMS) offers a range of benefits for companies, including complete visibility over all processes involved in order fulfillment, faster processing and delivery of demand, reduction of human error, and increased accuracy. Discover some of the main benefits generated:

Efficient Automation of Order Processing

The automation of order processing offered by OMS allows for greater efficiency as it reduces manual work and minimizes human errors. With the system, you won’t need to dedicate hours of your day to problem-solving; you can focus on developing strategies to grow and strengthen your business in the market.

End-to-End Order Management, Regardless of the Channel

With OMS perfectly integrated with WMS and ERP, you have a complete view of all aspects related to an order, from the customer’s request to warehouse picking and the last mile. This visibility, offered across all sales channels, allows for more efficient management, bringing countless gains to the company.

Centralized View

OMS not only provides a complete view of the order cycle but also centralizes all data (purchase, stock, delivery, and returns) on a single platform. The ease of a centralized system protects against order errors, customer dissatisfaction, or missed earnings due to common failures such as insufficient stock, incorrect billing, or shipping errors.

Security

In addition to centralizing information, OMS increases data security as there is less need for manual intervention.

Real-Time Information

By providing real-time data, OMS allows managers to react quickly to any issues that may arise, avoiding customer dissatisfaction due to errors or delays. It also ensures that product and payment data are always updated, offering you greater insight into the current state of the business.

Additionally, OMS can be accessed on smartphones or tablets, meaning companies can fulfill orders remotely and at any time. This translates into greater data control, better customer service, and more efficient order processing.

Cost Reduction

OMS allows for significant cost reduction by reducing fulfillment expenses, stock, and immobilizations. The automation of order processing also saves on costs related to manual labor and human errors.

Customer Satisfaction

There is no doubt that order management has a direct impact on how a customer perceives a company or brand. In an omnichannel environment, the customer expects to have a seamless experience, regardless of the channel. They can place orders online and pick them up in-store or make exchanges and returns in the physical sales space. And they want excellent service in all these procedures. In this case, relying on OMS, which unifies all order data, enabling end-to-end management, makes a difference.

Every point of the journey represents an opportunity to provide a great customer experience and increase loyalty and revenue. And that’s what OMS provides.

What Should You Prioritize When Choosing an OMS?

When defining the best option for your company, the one that will accompany your growth, check if the solution:
• Allows eliminating manual processes through automation
• Enables managing sales across multiple channels
• Supports multiple warehouses located in different regions
• Provides reports and indicators that allow better identification of issues, planning, and anticipating changes
• Supports inactive and third-party integrations in the supply chain ecosystem (e.g., warehouse management, accounting, services, 3PL, etc.)

All these points are essential to have a solid solution that gives you the conditions to keep your business strong over the years.

Why is Investing in an OMS a Wise Decision?

High demand, high speed, high expectation: these are the three main consequences of the growth of e-commerce and high customer expectations. To address them, it is necessary to invest in logistics and technology. Having an OMS integrated with a WMS and an ERP, your company will be able to offer the service the customer desires, and might even surprise them. In other words, we can say that you will have the right tools to create a strong and fully optimized business, adapted to new consumption realities.

If you want to stand out in the market, this is the right time. E-commerce and omnichannel are on an upward curve, and it’s time to stand out to maintain relevance with your audience. The shopping experience is the point of differentiation. The more positive and personalized it is, the more chances the company has to win the customer and conquer new markets.


What is an OMS (Order Management System) and why is it essential for e-commerce? Deagor WMS per ecommerce può aiutarti!


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