29 December 2023

WMS and OMS: How the Two Systems Interact

29 December 2023

The change in consumer behavior in recent years is no longer a novelty. With new market strategies, particularly omnichannel, gaining importance and greater adherence among companies and customers, gaining a competitive advantage has become one of the biggest challenges for different business models.

Offering multiple sales channels, ensuring excellent service and accurate inventory management, in addition to integrating all information, has become an arduous task, requiring competence and strategic efficiency.

In the face of this ever-evolving scenario, it is crucial that companies have specialized solutions by their side, capable of building integrated service networks that perfectly meet market expectations. In this case, it is essential to consider the role of technology in optimizing supply chains.

Order Management Systems (OMS) and Warehouse Management Systems (WMS) are essential software for those looking to overcome the challenges of the new retail era, integrating all business operations to ensure quality and agility in task execution, crucial requirements for brands that want to keep pace with market growth, compete, increase profitability, and business visibility.

In this article, we will share information about WMS and OMS systems, explaining how both tools can help with omnichannel logistics performance.

WMS and OMS Systems: What Do They Do?

Perhaps you have already heard of or even encountered one of these systems out there. But do you really know how WMS and OMS systems operate in your warehouse and what competitive advantages they bring to your business?

In summary, the Warehouse Management System (WMS) is a tool capable of providing information on any product present in the inventory at different moments of the workflow. In other words, it is possible to track the path of a product from its arrival at the dock (item control), through stock organization (considering the best positions, addresses, validity, and product demand), picking, and shipping. Therefore, we can say that a WMS is designed to oversee procedures and optimize activities, ensuring the safety and integrity of products, as well as providing immediate recognition of errors that delay the operation as a whole.

Additionally, the WMS provides managers with various information on stock, product requests, sales seasonality, and the best channels, facilitating, for example, strategic decision-making during product replacement, promotions, and service format definition.

The Order Management System (OMS) has the main goal of tracking and processing an order from the moment it is created, that is, when a customer completes a purchase on one of the sales channels, up to delivery and post-sale.

The OMS is capable of simplifying processes and removing challenges found especially in the omnichannel universe. This happens because the software integrates all actors of digital commerce, centralizing control in one place. With technology, you optimize access to product and inventory information, simplify financial processes and the issuance of bureaucratic documents, apply more speed to picking, as well as exchanges and returns, in addition to integrating stocks and mitigating manual errors.

How Do WMS and OMS Systems Transform Your Business?

Let’s imagine a practical situation: your company sells wines on multiple marketplaces. Due to a delivery error, some batches arrived damaged, and your employees verified the issue while they were still in the warehouse. Therefore, the product stocks in digital stores should be automatically modified due to the lack of merchandise, preventing buyers from placing an order for a non-existent product.

Based on the above example, imagine how long it would take if the entire process were performed manually? How many customers would have a terrible shopping experience, exposing the company’s vulnerability? This is where WMS and OMS systems come in as two important allies. Working together, they can quickly identify faults, modify inventories, and ensure the reliability of all information across all channels.

The WMS ensures that all products entering the warehouse are strictly controlled. Similarly, the system monitors all internal movements and departures, continuously updating stocks and transmitting data to the OMS. The OMS, in turn, shares information with all integrated e-commerce platforms, marketplaces, and apps. This optimizes customer service.

Another situation that shows the importance of having both systems is the immediate modification of pricing policies or payment conditions. For example, a company selling shoes online might decide to have a special sale to clear out certain models. Without an integrated WMS and OMS, it would be difficult to track warehouse stock and real-time price changes across all sales channels.

Conclusions

Omnichannel logistics has made business operations more complex and increased customer expectations. To maintain competitiveness, it is essential that companies invest in technologies like WMS and OMS systems, which optimize operations and ensure a seamless shopping experience.

With the integration of these solutions, companies can reach a new level of efficiency and customer satisfaction, creating a competitive advantage that can make a difference in the increasingly competitive and complex market.


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