An order management system (OMS) is a digital solution utilised in e-commerce for monitoring sales, orders, stock levels, and order fulfilment. Learn more here!
For many growing businesses, managing orders across multiple sales channels and fulfilment centres can be tough. They need a solution that can handle these challenges by combining order details, simplifying shipping processes across multiple locations, and managing returns smoothly. From placing an order to delivery, businesses face numerous hurdles.
In this article, you will learn about order management systems, including their benefits, key features, and how to choose the right one for your business.
What Is an Order Management System? An order management system (OMS) is a digital solution utilised in e-commerce for monitoring sales, orders, stock levels, and order fulfilment. It optimises the order processing workflow, starting from order reception to delivery, guaranteeing precision and productivity. An OMS plays a vital role in supporting customer contentment and operational proficiency.
Effective order management requires a comprehensive system that impacts various aspects of your business operations, including:
Customer Sale channels Product information Inventory levels and location Customer service Order routing Order fulfilment: Picking, packing, and processing Shipping Order tracking Refunds, returns, and exchange printing, picking, packing, processing, and shipping Benefits of Order Management Systems Implementing an order management system can bring a range of benefits to your retail business, including:
1. Improved Inventory Management Order management systems can help you keep track of your inventory levels in real-time, ensuring you always have the right products in stock. This can help you prevent stockouts and overstocking, which can be costly for your business.
2. Streamlined Order Processing Order management systems can automate many tasks in order fulfilment , such as order processing, picking, packing, and shipping. This can help you save time and reduce errors, allowing you to process orders more quickly and efficiently.
3. Enhanced Customer Satisfaction Order management systems can give your customers real-time updates on their orders, including shipping and delivery information. This can help you improve customer satisfaction by keeping them informed and reducing the likelihood of delays or errors.
4. Increased Efficiency and Productivity Order management systems can help you increase efficiency and productivity by automating many tasks in order fulfilment. This can allow you to process more orders in less time, freeing up your staff to focus on other tasks.
5. Growth Your order management system automates the processes related to your orders, brings together all your sales channels into a unified platform. This seamless automation operates in the background, freeing up your time to gather and analyse data. This newfound time is invaluable as it enables you to strategically pinpoint areas for improvement and strategies for future expansion.
6. Real-time Information Having access to real-time insights into your business performance through an order management system is essential for fostering growth. Being equipped with live updates regarding inventory and sales enables prompt responses to any issues using automated order management, preventing problems from escalating and ensuring customer satisfaction. Furthermore, real-time synchronisation of inventory, orders, and payment data ensures accuracy and coherence across all aspects of your operations.
Key Features of Order Management Systems Order management systems typically include various features to help you manage your orders and inventory. Some of the key features to look for include:
1. Inventory Tracking and Management Inventory tracking and management are fundamental features of an order management system. It allows businesses to keep a real-time record of their stock levels, ensuring adequate inventory to fulfil customer orders. This feature helps prevent overstocking or understocking of products, minimising associated costs, and ensuring efficient order fulfilment.
2. Order Processing and Fulfilment Order processing and fulfilment features streamline the entire order journey, from when a customer orders to its successful delivery. This includes order verification, picking, packing, and shipping. Automating these processes reduces errors, accelerates order turnover, and enhances overall customer satisfaction.
3. Shipping and Delivery Management Shipping and delivery management features enable businesses to manage the shipping process efficiently. They provide tools for selecting carriers, generating shipping labels, tracking shipments in real-time, and managing returns. This ensures that orders reach customers promptly and enables transparent communication on delivery statuses.
4. Customer Management and Communication Effective customer management and communication features enable businesses to maintain comprehensive customer profiles , including order history and preferences. Additionally, these tools facilitate communication through order updates, shipment notifications, and customer support inquiries. This helps businesses build strong customer relationships and provide a superior buying experience.
5. Analytics and Reporting Analytics and reporting features provide valuable insights into order and inventory data. Businesses can track sales trends, monitor inventory turnover rates, assess order fulfilment efficiency, and identify areas for improvement. These insights empower data-driven decision-making, enabling businesses to optimise operations and meet customer demands better.
Choosing the Right Order Management System for Your Business It's essential to embark on a systematic evaluation process to make a suitable OMS. Here, we outline the key steps to help you select an OMS that aligns with your business needs and goals.
1. Assessing Your Business Needs and Goals The journey to a suitable OMS begins with a deep understanding of your business. Assess your specific needs and objectives. Are you looking to streamline order processing, optimise inventory management, or enhance customer service? Identifying your goals will guide you in selecting an OMS with the features and capabilities that address your unique requirements.
2. Evaluating Different Order Management Systems With your business needs and goals in mind, research and evaluate different OMS options in the market. Consider factors such as the system's functionality, ease of use, and compatibility with your existing infrastructure. Use user reviews and case studies to understand how each OMS performs in real-world scenarios.
3. Considering Factors Such as Cost, Scalability, and Integration with Other Systems Cost is a crucial consideration but should be one of many factors. Evaluate the total cost of ownership, including setup, licencing, and ongoing maintenance fees. Additionally, assess the scalability of the OMS to ensure it can accommodate your business's growth. Compatibility and integration with other systems like e-commerce platforms, CRM software, and accounting tools are also essential for seamless operations.
4. Making a Final Decision Once you've gathered comprehensive information and weighed the pros and cons of each OMS, it's time to make your final decision. Ensure the selected OMS aligns with your business goals, budget constraints, and long-term vision. Be prepared to invest time in training your team to use the system effectively, and consider seeking input from key stakeholders to ensure a well-rounded decision.
Best Practices of Order Management What are the steps you can take to optimise your order management processes? Here are some recommended strategies for efficient order management to set you on the road to success:
1. Streamline Order Processing One of the key strategies for successful order management is enhancing the efficiency of the order-processing workflow. This may include automating different tasks within order management, such as order acquisition, processing, and completion. By streamlining these procedures, companies can mitigate the likelihood of errors and facilitate a quicker, more effective order fulfilment process.
2. Centralise Order Information This objective can be accomplished by implementing an order management system, which serves as a centralised platform for all order-related data, encompassing order specifics, shipping details, and customer particulars. Through this consolidation of information, businesses can enhance their ability to oversee orders, minimise inaccuracies, and enhance the pace of order fulfilment.
3. Maintain Accurate Inventory Efficient order management necessitates the maintenance of precise inventory levels, which entails conducting routine inventory checks, cycle counting, and updating inventory in real-time. By ensuring accuracy in inventory levels, businesses can expedite and enhance the accuracy of order fulfilment, thereby enhancing customer satisfaction.
4. Prioritise Order Fulfilment Another recommended approach is to give precedence to order fulfilment according to factors such as order volume, shipping specifications, and other relevant considerations. Through prioritising orders, businesses can guarantee prompt and efficient order fulfilment, minimising the likelihood of order cancellations or discontented customers.
5. Monitor Order Performance The ultimate recommended approach for efficient order management involves consistently monitoring order performance. This encompasses monitoring order fulfilment durations, shipping durations, and order precision. By consistently assessing order performance, businesses can pinpoint areas for enhancement and refine their order management procedures to enhance order fulfilment speed, precision, and overall customer contentment.
How to Implement an Order Management System The decision to implement an Order Management System (OMS) is a significant milestone for any business, as it promises enhanced operational efficiency and improved customer service . However, successfully integrating an OMS into your business processes requires careful planning and execution. Let's follow these essential steps and best practices for a seamless OMS implementation.
1. Steps to Take Before Implementation Before diving into OMS implementation, laying a strong foundation is crucial. Start by conducting a comprehensive audit of your existing processes, identifying pain points, and establishing clear goals for the new system. Define key performance indicators (KPIs) to help you measure the system's success. Engage key stakeholders to ensure alignment and secure the necessary resources for a successful implementation.
2. Best Practices for a Smooth Transition To ensure a smooth transition, follow best practices such as developing a detailed implementation plan, setting realistic timelines, and designating a project team responsible for overseeing the process. Choose a well-defined testing strategy to identify and address issues before going live. Consider implementing the new system in phases or in parallel with the existing one to minimise disruptions to daily operations.
3. Training Employees on the New System Adequate training is paramount to ensuring that employees can effectively use the new OMS. Develop a training programme tailored to different user roles within your organisation. Offer both initial training sessions and ongoing support to address questions and challenges that may arise. Encourage employees to provide feedback and make necessary adjustments to the training programme based on their input.
4. Ongoing Maintenance and Updates OMS implementation is not a one-time event but an ongoing process. Establish a system for regular maintenance and updates to ensure that your OMS remains current and continues to meet your evolving business needs. Monitor system performance, gather user feedback, and proactively address any issues. Stay informed about software updates and enhancements the OMS vendor provides and implement them as needed to keep your system secure and efficient.
Common Challenges with Order Management Systems and How to Overcome Them While order management systems can bring many benefits to your business, there are also some common challenges to be aware of, including:
1. Integration issues with other systems Order management systems may only sometimes integrate seamlessly with other methods, such as your CRM system. To overcome this challenge, work with your vendor to ensure the systems are compatible.
2. Technical difficulties and glitches Like any system, order management systems can experience technical difficulties and glitches. To overcome this challenge, work with your vendor to ensure that you have adequate support and troubleshooting resources.
3. Human error and mistakes Human error and mistakes can also be challenging when using order management systems. To overcome this challenge, provide comprehensive training and support to your staff and implement processes to catch errors before they become significant issues.
Gain Maximum Efficiency from Your eCommerce with Order Management System from ADA Asia In conclusion, order management systems offer many advantages that can elevate your retail business. The benefits are substantial, from optimising inventory management to streamlining order processing and boosting customer satisfaction. Selecting and implementing the correct system is paramount to fully harnessing these advantages.
If you're ready to enhance your retail operations and achieve unparalleled success, consider partnering with ADA Asia for Order Management & Fulfilment solutions. Take the next step for your company's growth and efficiency – explore our end-to-end digital commerce services with ADA Asia today.
