While consumers were initially apprehensive about online retail, reports today show that 2.14 billion people currently shop online. That makes up 27.6% of the 7.74 billion people in the world, which is a dramatic increase in recent years.

1. Order Management Systems 101: A Useful Guide to Selecting the Best for
your Business
Introduction
While consumers were initially apprehensive about online retail, reports today
show that 2.14 billion people currently shop online. That makes up 27.6% of the
7.74 billion people in the world, which is a dramatic increase in recent years. As
more people grow comfortable shopping online, it becomes a preferred means
of retail, and their expectations develop considerably, surging eCommerce
growth within and across borders. But, even though this is every retailer's dream
come true, coping with the level of demand across different eCommerce
platforms and markets is easier said than done.
In addition to the demand for product availability, the desire for a faster,
seamless experience is the need of the hour. When consumers have an
enjoyable experience purchasing products from actors, they naturally feel they
are committed to lifetime value and relationships with them. In fact, 50% of

2. customers say they will switch to a brand’s competitor after a bad experience,
according to a Zendesk Trends Report. But, it’s already apparent how important
customer experience is. The challenge lies in reaching out to all potential
customers and assuring them that they can enjoy the same level of experience
across different retail channels.
To counter the strain and struggles posed by online selling, brands and retailers
need a digital framework to support their efforts and ensure they coordinate with
customer expectations. Analysts believe that order management systems
(OMS) are a key element of this digital infrastructure. According to their
research, retailers seeing more than 10% growth are 208% more likely to have
an OMS working behind the scenes. But, what is an OMS and how does it
contribute to systematic large-scale retail? Keep reading to learn all about the
concept and potential of different order management systems.
What is an Order Management System?
An order management system or OMS is a centralized system that helps
manage orders and inventory across different selling platforms. The system is
designed to integrate with various primary platforms and players within the
online and offline retail ecosystem. This includes eCommerce platforms
like Lazada, Amazon, AliExpress, various webstores, offline retail stores, delivery
partners, warehousing partners, and authorized distributors. When an OMS is
connected with these platforms and players, it offers the brands using them
sales visibility.
Many order management systems also help create structured solutions to tackle
the challenges of increased purchase volumes. For example, delayed order
dispatch, inventory miscalculations, and incorrect deliveries can all be averted
with the right OMS platform. This translates to improved inventory distribution,
smoother sales, and happy customers.
An OMS also helps set up quick fulfillment operations within and beyond
borders. With the technical infrastructure of an Order Management System,
brands and enterprises can roll out their primary omnichannel and multichannel
strategies across regions in their country and abroad. They can tap into markets
they’ve been waiting to explore, test out marketing campaigns, and even collect
accurate customer behavior data.
Capabilities to Look for in an Order Management System

3. On a broad scale, an OMS is designed to make it quick and easy for brands to
sell through various channels. But upon deeper examination, it is evident that
different OMS platforms offer unique features for smoother business. For this
reason, before choosing an OMS, it is vital for actors to look at their own
business requirements and strategies in the pipeline. Accordingly, they can
check to see if a potential OMS platform has the capabilities to meet their needs.
To see how an OMS can support various business strategies while streamlining
operations, here are a few key features to look out for:

4. A. Order Processing
Centralized Order Processing: For smooth workflows when selling through
diverse channels, an OMS should offer centralized order processing to avoid
delays or missing orders completely. All orders received across different web
stores, marketplaces, and other sales platforms should be compiled into one
dashboard. Every time customers place orders, a record must be made, and
the relevant team alerted for the next step.
Automated Order Management: Once orders are received, the system should
automatically process them. That is, the order information should be collected
and sent to the relevant departments and partners to complete the order. The
system must track and manage orders (even returns) in this way to ensure the
appropriate distributors are updated in real-time to work quickly and prevent
out-of-stock situations.
Real-Time Order Tracking: Through real-time order tracking, company
strategists can view and track sales from every retail channel and stay updated
about its progress throughout the order’s lifecycle. Should a delay occur, the
OMS must display where the problem lies and how to remedy it immediately.
Accurate Order Reports: The real-time data recorded by an Order Management
System should also offer accurate reports about purchases, returns, and sales
for future reference. Assessing accurate data makes it easy to identify order
trends and make informed decisions to outperform the competition.
Shipping Label and Invoice Generation: The moment orders come in,
stakeholders at every level should be updated so they can spring into action
and initiate the desired tasks. To make their lives easier, the OMS system used
must prepare and generate shipping labels and invoices as well with precise
details for all products. Then retailers, distributors, or warehouse teams simply
need to affix these to the right package to establish error-free delivery.
Peak Season Order Processing: Processing thousands of orders during the
peak season can be intense and complicated due to the sheer volume of orders.
But the appropriate OMS can subdue the stress for brands and distributors
experiencing peak season pressure. The system should be able to track all the
orders to identify the channels drawing the most sales. It should also offer the
opportunity to implement process plans that help control order flow and
completion.
Partial Stock Order Management: This feature is meant to enable partial order
processing. Systems that offer it will ensure orders are fulfilled based on
inventory availability. Once stocks are replenished the remaining half of the
order will be fulfilled.
B. Inventory Management

5. Centralized Auto Sync Inventory: With all inventory marked and recorded by an
OMS, live inventory data should be available for review in one place, at any
time. Even better, the system should update every platform selling the brand’s
products. With centralized auto-sync inventory, all online listings will be updated
based on inventory levels at the brand’s warehouses, and even their retail
stores in nearby areas. According to the real-time inventory levels recorded,
shoppers must be alerted when stock is available or not at any outlet or online
retail platform they visit (thereby avoiding order cancellations and poor
experiences).
Inbound Stock Planning: A reliable OMS must also aid with inbound stock
planning by tracking the quantities of stock allocated to distributors and retail
partners then comparing the sales they make. Based on the analytical results,
future inventory disbursement can be modified proportionately. The OMS
system used should allow for inbound stock planning based on regular sales,
seasonal sales, promotion trends, and more.
Sophisticated Inventory Reports: Similarly, with sophisticated inventory reports,
brands can determine which platforms, distributors, or retail chains are doing
well and which aren’t. With these details available, they can even uncover
critical issues. These problems may pertain to
inventory flow from manufacturers to the point of sale or from warehouses to
the customer’s home.
Multi-Warehousing Management: An Order Management System that can
manage inventory at multiple warehouses across different geographies offers
great scope for expansion. It will display stock quantities across product lines in
all warehouses and procure details of daily dispatches. It may even send out
inventory replenishment alerts automatically.

6. Batch and Expiry Management: To help stay on top of product expiries and the
newest items in stock, an OMS should maintain records of all product details.
With the help of this information, brands can verify which warehouses have
sufficient stocks of the latest products and quantify expired goods (or those no
longer tending), so they are taken out of rotation.
Buffer Stock: Some OMS platforms can even maintain buffer stocks. This can
be preset in the system, so the relevant teams are alerted when a warehouse
in a specific district is running low and needs inventory replenishment.
Kits and Bundles: To clear out stock or stimulate big purchases, an OMS should
be able to design product kits and bundles. A kit could include a set of similar
products like different components of fitness attire or a party pack of different
crisps and snacks. All of the items sold in kits can also be sold on their own,
and the OMS should be capable of tracking how individual products are
purchased and accordingly calculate inventory levels. Similarly, if the plan is to
bundle different items for promotion, the same principle must apply, and the
system should allow marketing teams to design and price their product bundles
and kits as per their promotion plan.
C. Integrations

7. The main purpose of an order management system is to help simplify
operations and control all the company’s digital selling platforms centrally. But,
an OMS that syncs with other technological programs, systems, or setups can
be really helpful. For example, it could integrate with different marketplaces and
web stores for centralized order and inventory management. If a brand has
offline retail stores, suppliers, and distributors, their OMS needs to integrate
with the POS (Point Of Sale) they use.
To track the progress of the fulfillment process, the Order Management System
should have the ability to integrate with fulfillment partners and last-mile
carriers. Integrations with ERPs, WMS, accounting and financing tools, etc., will also
aid in other areas of business. For example, if a company integrates its QuickBooks
with an OMS that supports this integration, financial records will be updated
automatically in an organization’s QuickBooks account every time a sale or
return is made. To facilitate system integrations, a strong library of integrations
and a robust API are vital. This will facilitate smooth data transfer from
distributors or the point of sale to the teams that require this data like accounts,
sales, marketing, etc. The appropriate system integrations with an OMS will also
support smooth order management.
D. Analytics and reports
Single Source Of Truth: An OMS should be able to provide accurate real-time
data about sales, orders, and inventory. With a single source of truth providing
precise data, the relevant teams can make quick, error-free analyses and
implement smart decisions.

8. Regional and Global eCommerce Sales Data: The analytics and reports
generated through an OMS should span beyond regional eCommerce sales
data. If brands have global extensions for retail, this feature can prove useful
for performance assessments and other reports.
Customizable Reports: All reports acquired through an OMS should allow
customization as per the actor’s requirement. This will help to make business
predictions for each quarter, season, new product launches, promotions, and
more. By making calculated decisions, organizations can minimize risks and
maximize financial returns.
Sellout Data Collection: After transferring inventory to distributors across the
country and beyond, a retailer loses visibility of its products. This makes it
difficult to determine which channels sell more of their products. Similarly, the
brand will not know the challenges customers face when purchasing their goods
through various distribution channels. With an OMS connecting the brand to its
distributors’ operations, they should be able to track their products at every
stage of the sales process, receive insights about returns, exchanges, etc.
E. Omnichannel
Click and Collect: An OMS that supports a click and collect retail strategy will
allow shoppers to choose items they’d like to buy and pick up themselves from
a warehouse or store nearest to them. This feature allows for convenient
shopping and faster order fulfilment.

9. Store Pickup: This form of omnichannel retail can also be supported by an OMS.
If a brand has a single store carrying their goods in a customer’s location, the
Order Management System should alert the shopper of the same. They can
then choose whatever they like online and then pick it up from the store at their
convenience.
In-Store Pick, Pack, Dispatch: A smart OMS that supports an in-store pick,
pack, and dispatch strategy, can also aid in a better customer experience.
Under this strategy, customers can shop online and have a brand’s nearest
offline retailer deliver the purchases to the customer. This will ensure SLAs are
met, and customer expectations are exceeded.
POS Promotion Integration: In case of offline purchases, an OMS with POS
promotion integrations can track these transactions. All purchases made at a
company’s brick and mortar outlets via POS will be recorded by the OMS, and
inventory details will be adjusted accordingly in that location and centrally.
Multi-Store Fulfillment: Some proficient OMS can also handle multi-store
fulfillment with ease, provided their payment systems are integrated with the
order management system. In addition to this and accurate data collection, the
Order Management System will guarantee visibility across the brand’s offline
channels.
Automatic Order Routing: Certain OMS platforms with newer advancements
save all the locations of a brand’s warehouses and retail outlets, then map them
out. As a result, every time a customer places an order, the system will match
the delivery location with a distribution center closest to it. Once matched, the
relevant distribution center will receive the order, and dispatch will begin.
Through automatic order routing, brands save money on shipping and reduce
delivery time, which can lower prices and speed up order processing.
Top Benefits Of Using An OMS
A powerful OMS with top-notch features can transform retail operations with
smoother processes, more visibility, and better control. Implementing an Order
Management System can also help examine supply chain bottlenecks and
make improvements where necessary. To help you see what this platform can
really do for your business, here are some of the solutions it provides to various
retail challenges.

10. 1. Better Order Processing
One of the primary benefits of an OMS is control over listings and orders across
global sales channels through a single dashboard. That way, companies can
have a centralized view of their sales across channels. They will be alerted of
order quantities in real-time, with relevant details in one place, no matter where
the orders are generated. With the order information collected by the system, it
can trigger the fulfillment process quickly, correctly, and as per SLAs.
2. No Mistakes
Besides centralizing order-related information, an OMS eliminates human
errors. As it automates order and inventory management across several retail
channels, the exact order details are then conveyed to fulfillment teams to pick,
pack, and ship the desired item within a matter of seconds. Similarly, the system
ensures that inventory is uniform across all selling channels, so shoppers don’t
order out-of-stock items.
3. Lower Cancellations and Returns
With automated order processing, brands can remove the possibility of incorrect
shipments. Every order placed will be correctly conveyed to the appropriate

11. fulfillment centers for quick and accurate deliveries and reduced returns.
Moreover, as inventory will be managed centrally, the system will prevent
shoppers from placing orders for items that are out of stock, which otherwise
may cause unnecessary cancellations. Also, given that product listings across
different sales channels will be uniform, clients will feel confident in the brand’s
offerings. They will be less likely to change their minds about orders placed or
received through a specific retail channel.
4. Scalability
Another advantage of an OMS is that it evolves with requirements. An Order
Management System can cater to any volume of orders as the software is
designed to offer flexibility locally or globally. With the ability to automate several
functions like sales, payment, and order processing, all a retail brand needs is
an engaging strategy, and the system will provide the tools to execute it.
5. Lower Costs
An OMS automates repetitive functions that consume a lot of time when done
manually. For example, listing products across several platforms. This can be
a real headache that burns through time and resources. The same goes for
inventory updates, price revisions, and other data-related changes that must be
made from time to time for different retail platforms and warehouses in different
locations. With an Order Management System, irrespective of the size of the
product line or number of listings online or in-store, a brand can keep them
updated at the click of a button. And this can be handled by a small in-house
team thus reducing human resource expenses, time wastage in training, and
even errors.
6. Improved Sales
The peak seasons of eCommerce can bring in all kinds of mayhem with higher
than normal order volumes. This can cause order management and fulfillment
processes to cave quickly. But, a well formulated OMS can bring about a
fortified structure to cope with the surge in demand. For starters, it centrally
manages inventory keeping brands aware of their sales and stocks, and clients
about product availability across different platforms. Some systems can also go
a step further and provide sales records of previous season’s data for past
performance assessment and future progress plans. With past data reports for
inventory and sales, it’s easy to pinpoint where the numbers dip and determine
what actions to take. The reports can determine which items to put on sale
based on present and past responses. The data that the Order Management
System collects may even help budget mass promotional offers and maintain
sufficient stocks.
7. Better Resource Management
By replacing manual processes with a suitable order management system,
organizations free up resources for more important tasks that technology cannot

12. handle on its own, like customer satisfaction. Additionally, based on the real-
time reports generated by an OMS, they can analyze the numbers to see how
target audiences behave and accordingly create new processes to push sales
in new or non-performing regions.
8. Seamless Integrations
In addition to its compatibility with different marketplaces, order management
systems also have the means to integrate with company infrastructures like
accounting software, customer service setups, marketing tech, and more. In
some cases, an OMS may have an open API to establish third-party
connections with the systems the company uses. That way, they can enjoy
seamless operations throughout their business.
Conclusion
If you’re looking for ways to enhance your business operations to cope with the
acceleration in eCommerce demand, an order management system certainly
has a lot to offer. It is a convenient and productive system that makes business
goals of varying sizes attainable. Besides an OMS, investing in other forms of
technology can also help a business stay ahead. However, it is vital to choose
tech solutions based on their ability to help the business progress. Technology
should be at the forefront of business strategies as more people embrace the
digital world and an amalgamation of online and offline setups. It should pave
the way to new markets and support quick, error-free strategies. That way, the
business can stay on top of its game no matter what competitors do or how the
market changes.
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