What is an Order Management System (OMS)?

Business nowadays is complicated. No matter how large or small your organization is, there is much to consider about the buying and selling process. If you’re anything bigger than the smallest of businesses, or if you’re recording your orders and inventory on pen and paper, you will likely need help in the form of an order management system. 

This article details what an order management system is, how it works, and how it can help your business.

What Is an OMS?

Recording inventory, sales, and delivery processes by hand takes a lot of time and effort and can be costly for the business if there are any errors. Despite this, 55% of businesses still use pen and paper processes1, leading to order inaccuracies and confusion.

An order management system is key to solving this problem and can help any business, big or small. So, what is an OMS? 

An OMS is a software system used for the order fulfillment process. It is a digital way to simplify the order tracking and fulfillment process, rather than recording everything manually. It is very efficient and cost-effective, as employees don’t need to physically count inventory and process orders. 

Order management systems track all information and processes, including order entry, inventory management, order fulfillment, and after-sales support. This system offers visibility to both the business and the buyer. Customers are involved in the order and fulfillment process, as they receive email updates and can track shipping in real-time. 

In a nutshell, order management systems make life easier for a business and its customers. It’s a “pick”-”pack”-”ship” dream journey.

How Does It Work?

The typical OMS process has three steps: 

  1. Placement - The customer places an order through an online form or website. The sales team member/employee checks the order details and confirms the order.
  2. Fulfillment - The employee checks shipping details, and proceeds to a “pick”-”pack”-”ship” fulfillment journey. 
  3. Returns and refunds - They can also be processed through the OMS.

Why Is an Order Management System Important?

Many businesses have multiple partners at various stages of the supply chain, so it can be easy to lose visibility and control of an order. An OMS can automate manual processes, reduce errors, and help control costs. 

As customers are involved in the order and fulfillment process, this is your opportunity to provide great customer service. If all goes well, there is a high likelihood they will return to buy from you again.

Conclusion

Now that you know how an OMS works and how it can help your brand, it’s time to implement one. There are so many options, so it can be tricky to choose the right one. Determine which tasks can be automated in your business, and choose an OMS that can accomplish your goals. 
Take a look at this case study for an example of how Cyper can help implement an OMS in your business.

References: “Survey finds manual processes still dominate e-commerce logistics” https://www.freightwaves.com/news/technology/ecommerce-logistics-remains-a-manual-process

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