In today’s dynamic retail landscape, businesses must remain agile to meet ever-changing customer demands while efficiently managing operations across diverse channels. An Order Management System (OMS) automates the entire order lifecycle, providing businesses with complete visibility from inventory availability to tracking and shipping notifications. It streamlines operations across retail channels, simplifying the buying process for customers and centralizing management of orders, inventory, fulfillment, and product returns. OMS ensures agility, responsiveness, and meeting customer demands.
What is omnichannel fulfillment?
Omnichannel is a centralized strategy that streamlines and speeds up fulfillment of orders placed through various channels, allowing logistics providers to remain agile and optimize workflows. Supply chain disruptions have caused a surplus of inventory, leading to overstocks, high holding costs, and potential markdowns. An Order Management System (OMS) can help organizations maintain an edge in the market.
What does an order management system do?
From browsing and purchasing to unpacking and beyond, an OMS manages all of the essential components of an order:
- Centralized visibility and control of inventory (one view)
- Order orchestration optimization and sophisticated routing logic
- Enhancement of omnichannel fulfillment
- Customer support portal featuring the customer’s 360-degree view
Who needs an order management system?
For manufacturers, wholesalers, retailers, and third-party logistics companies operating in the eCommerce space, order management systems have become essential. With the help of reporting and insights provided by advanced OMS platforms, companies may monitor key performance indicators (KPIs) and spot inefficiencies. Retailers who receive orders from many channels or those who only take orders online frequently utilize OMS software because they make order acceptance and management simpler.
Centralized inventory management: Central inventory management for the entire business is one advantage of a contemporary OMS. Therefore, if the organization has several inventory sources (stores, warehouses, drop shipping), they may access all of their inventory in one file and utilize that file to figure out where to fulfill orders.
Beyond basic visibility, more sophisticated capabilities like dynamic inventory allocation (DIA) allow you to theoretically divide up your stock according to past data and projections for the future, then modify stock levels appropriately.
Increased revenue with omnichannel fulfillment: Omnichannel consumers are known to spend more on customer lifetime value (CLV) and cart size (average order value). Finding ways to interact with customers across a variety of channels thereby helps both the vendor and the customer in terms of convenience and income.
Various fulfillment methods, such as curbside pickup, ship from store, purchase online pick up in store (BOPIS), micro fulfillment centres, and dark stores, are powered by an order management system. This allows customers to choose the delivery mode and channel that best suits their needs.
Lower cost to fulfill via order orchestration and Distributed Order Management (DOM): Organizations are focusing on cost-saving strategies amid economic downturns and potential consumer pullbacks. An OMS’s order orchestration engine can help determine optimal fulfillment locations, providing a competitive advantage and market agility. Adjusting routing rules to respond to rising costs can protect margins without compromising customer experience.
For instance, you can turn off that node and divert orders to the next-best site if a Florida warehouse closes because of an impending hurricane. Perhaps you should enhance the store’s capacity and staff in accordance with your analytics if they show that customers in a particular area are more inclined to use pickup orders.
An OMS gives you the technology you need to react quickly to the market, your business, and consumers.
Supply chain complexity simplification: An OMS typically adds more value to supply chain operations that are more complicated. Order management gives businesses more flexibility over how they wish to operate their business, even though it is still far from being “simple.” This is in contrast to the problem of limited capabilities in systems that are not designed with this in consideration.
In summary, order management (OMS) offers a competitive advantage in commerce by streamlining operations, reducing errors, and enhancing customer satisfaction. It improves inventory visibility, decision-making, and scalability, fostering long-term success in a competitive market.
Please reach out to marketing@tychons.com if you need help with identifying the best Order Management System.
