What is Order Management Software? A complete guide to OMS.

April 26, 2021
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In the present e-commerce world, the importance of an order management system cannot be undermined. Particularly when you are handling orders from customers across the globe. You need an order management system that will ensure efficient customer service, minimize error and keep your business safe. An order management system (OMS) always helps you automate your back-office processes and make them more efficient.

Businesses nowadays are integrating their order management process to save time, money, and workforce while keeping efficiency and customer satisfaction at an all-time high.

What is Order Management?

It is the core of any goods-based, B2C, or B2B organization to manage the order-to-cash sales process. Simply put, it is the entire cycle of receiving a customer order, processing it, and then fulfilling it. Organizational ordering is not an island endeavor. It requires cooperation from nearly every department within the company: from the customer service department to the warehouse workers, the accounting department throughout delivery services. A flawless order management process enables a business to accomplish within the budget it sets. It will also fulfill client expectations and improve the professional reputation of a company.

An Intricate System

It enables customers to receive the right product at the right price and on time by communicating with several stakeholders who work together to provide the right services at the right price. Furthermore, the order fulfillment system enables companies to manage and track sales and inventory and create customer profiles.

Step-by-Step Order Management

An order-to-cash flow is the process of synced steps, continuous communication, and fluid processes. When the system runs smoothly and efficiently, the company can process more orders and eventually grow your business.

The following is a breakdown of order fulfillment in an end-to-end model:

Step One:

The order is the first step in the process, including placing an order online, in-store, or over the phone with a customer services representative. Detailed information of a customer is collected and stored, such as order history, the volume of orders, and payment preferences. Finally, the warehouse receives the customer’s order.

Step Two:

An inventory control manager checks the warehouse inventory and ensures continuous supplies made from vendors. When the item runs out due to a large order, the purchasing department places a purchase order.

Step Three:

After receiving an order through our sales department, it is then sent to our accounting department, which records it as either cash sales or accounts receivable. An invoice gets generated and sent to the client, followed by the recording of the payment.

Step Four:

Afterward, the goods will be delivered to the consumer by a third-party shipping company or the company LTL.

Order Management Challenges

In order management, more touchpoints and stakeholders will lead to more obstacles in achieving success. Human error, process backlog, inventory visibility, transportation error, and poor communication may adversely influence customer loyalty and ultimately impact customer satisfaction. These are the challenges faced by businesses. So, how does a business decrease the likelihood of customer dissatisfaction and loyalty?

The Solution: A System That Keeps Track of Orders

Businesses of all sizes are opting for an order management system instead of a traditional order processing method to achieve a quick, accurate, and cost-effective order management cycle. To attain the most productive and profitable order management cycle possible, we can use the OMS directly with an ERP system and with the aid of a human workforce.

Benefits of Order Management System

A good order management system will improve the visibility of sales across a sales cycle, efficiency, reduced error rates, and accuracy. That is what an OMS can do for you:

Automated Efficiency

An efficient order management system (OMS) automates numerous processes so that organizations can focus more time and resources on what matters most to them. It reduces the need for manual intervention and increases data security.

Accessible 24/7

Online order management gives companies access to their system from anywhere, making it possible to process orders practically any time. It leads to improved customer service, enhanced order processing, and improved data control.

Growing Your Business

A business intelligence platform integrated with the order-to-cash system is an economical and efficient means for a company to decrease business costs and gain a competitive advantage.

Stock Management

Order management systems contribute to inventory management by disseminating information regarding items sold, returned, and exchanged. It increases customer satisfaction by ensuring that companies do not over-sell inventory.

A Unified View

An order management system with centralized controls ensures the integrity of the e-commerce fulfillment process. It prevents order errors, customer complaints, loss of revenue due to delays, inadequate inventory levels, inaccuracies in billing, leading to error in transportation.

Access to Real-Time Information

By displaying data in real-time, companies can respond more quickly to customer’s problems, rather than risking their dissatisfaction by making errors or delays. Additionally, it enables businesses to keep tabs on their product and payment data, giving them a clearer picture of the business.

How Important is an Order Management System?

Today’s ‘always on’ society results in three key outcomes: high volume, high velocity, and high expectations. Since digital and e-commerce are so popular, people expect to order whenever, wherever, on whichever platform they choose. Customers expect one-click transactions, and companies need to deliver on that expectation to encourage repeat purchases and encourage customer loyalty.

Want to grow your business?

Your staircase to
growth is here!

Quick tricks for growth:

  • Reconciliation of overcharges
  • Single inventory dashboard
  • Reduced order processing time
  • Standard and accurate data

Want to know how to do this? Don’t worry!



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