Order Management System: How It Works and Why You Need It

Imagine running an e-commerce site like a well-oiled machine, where every order flows smoothly from the customer’s end to their doorstep. That is the work of an order management system (OMS). Did you know that the Order Management System (OMS) serves as your invisible hero, managing inventory tracking, sales channels, and automating fulfillment? 

Picture This: A customer buys any product from your site. Instantly, the OMS checks your stock, notifies the warehouse, and arranges shipping, all while updating the customers with real-time tracking. There are no missed orders, no manual errors, just seamless efficiency. It’s the smarter way to sell online and keeps your customers coming back. 

This is why, in seeking the best order management system today, it is essential to have a comprehensive solution that considers each stage of the ordering, monitoring, and fulfillment process.

In this article, we will explore an order management system, how it works, and why you need to know this for modern businesses like yours. 

What Is an Order Management System?

An order management system (OMS) is a software platform or tool used to manage the entire lifecycle of an order, from the moment the customer places an order until they receive it! It facilitates tracking and manages orders, communication, inventories, invoices, shipping, and returns. 

Without this, e-commerce sites would be in pure chaos; there would be many problems like misplaced orders and packages and no customer satisfaction. 

However, OMS is not just about logistics; it’s about making businesses, agents, and customer’s lives easier. For business, it’s like having a super-organized friend who never forgets a thing—helping agents manage sales, stocks, and real-time updates. For customers, a seamless shopping experience from ordering to delivery to support. 

So next time your business needs proper order management, don’t forget to chase the best order management software.

Challenges Without Order Management System

For many businesses like yours, the act of processing, tracking, and fulfilling orders can be tedious, expensive, and time-consuming. 

Additionally, the process from ordering to shipping presents challenges, inducing how to: 

  • Bring together lead data from multiple platforms: Due to a lack of software, lead data are often scattered across different platforms, which is why it makes analysis and decision-making difficult. 
  • Bind up fragmented CRM chaos: Utilization of multiple CRMs for order management across various functions, which expedited communication.
  • Allocate leads automatically without manual lead distribution: Manual lead distribution leads to delay, error, and miscommunication, which slows down the entire order fulfillment process. 
  • Track success using reports and analytics: A manual process can be a “BIG NO” for your industries. It is hard to generate accurate reports, track performance, and identify areas for improvement. 
  • Stop unrestricted access: No control over system access, given the absence of IP restrictions allowing users to log in from any device & location, thus posing significant risks. 
  • Improve Customer Experience: Delays in order fulfillment, track issues, and miscommunication are the biggest drawbacks that can impact customer satisfaction and retention. 
  • Gain Visibility into Inventory: Lack of real-time inventory tracking can increase the problem of overstocking or stockouts. It may lead to lost sales or excessive storage costs. 
  • Manage Manual Ordering Processes: The manual approach can be time-consuming, prone to errors, and vulnerable to inconsistencies, resulting in delays in order processing and an increased risk of mistakes.

These are eight main challenges; however, there can be more if you do not have order management. If you are implementing this and don’t want unhappy customers, you are probably gaining your position with some top companies worldwide. 

How Does an Order Management System Work?

Are you looking for hassle-free shipping, returns, tracking, and deliveries? Yes, we all desire that!

For this reason, our primary goal in delivering a blog on Order Management Systems (OMS) is to streamline and simplify the ordering process, ensuring transparency throughout the entire order lifecycle.

An order management system typically includes computer software, online tools, and team processes that eliminate obstacles in the overall ordering process.

An OMS is designed to:

  • Effortlessly accept orders and payments
  • Automate invoicing and streamline payment processing
  • Help track orders seamlessly from ordering to delivery
  • Empower businesses with insightful order analytics
  • Optimize fulfilment by routing orders to the nearest center
  • Provide a cost-efficient solution by unifying CRMs into one cohesive system.
  • Manage stock levels to prevent out-of-stock situations
  • Offer customers real-time order tracking for peace of mind

It’s important to note that some order management software functions differently based on customer requirements. The overall objective is to ensure a smooth experience for both customers and agents.

We have highlighted several key points that can enhance the entire process. Order Management encompasses various dimensions that oversee every component of the online selling process, including:

  • Customer experience
  • Sales channels
  • Invoicing and payment
  • Order shipping
  • Reports and analysis
  • Inventory management
  • Packaging and processing
  • Shipping
  • Security and privacy
  • Fulfillment and suppliers

By implementing an effective OMS, you can easily monitor everything from the moment your customer places an order. It streamlines the process, allowing customers to expect a fast, affordable, friendly, and efficient buying experience.

Why Do You Need It?

Are you trying to create a “WoW” experience with an order management system that cuts out hands-on hassles in overall order management while delivering smooth & quality service? If your current setup feels “at a snail’s pace,” then it’s time to streamline! An OMS ensures businesses and customers that everything can happen in minutes—no more screen-hopping or anything. Just smooth, smart, and satisfying for everyone. 

The Benefits of Order Management System:

  • Enable self-service, allowing customers to place, track, or cancel their orders independently. 
  • Align orders across multiple sales channels. 
  • Efficiently match orders to inventory. 
  • Implement number masking to secure customer data. 
  • Utilize IP-based access control. 
  • Accommodate complex shipping schedules. 
  • Access analytics and reports from a single location. 
  • Connect commerce with customer service. 
  • Make ordering and order tracking accessible on any device.

Every step of the ordering process may result in delays or bottlenecks. To avoid cancellations, missing orders, and dissatisfied consumers, you’ll need an OMS that makes ordering as simple as possible.

Setting Up An Order Management System

SaaS vendors like SAN Softwares offer vast platforms that help businesses drive improvement and innovation in their systems. We give businesses access to a range of beneficial partnerships and tools to help create a unified experience for customers. 

SanORDO is an order management system that streamlines order processing for businesses. SanORDO provides constantly updated inventory information, a database of vendors, a database of customers, return & refunds, billing & payment information, all records, information, and many more… 

Want to know more?

Book your free session with us today!

Frequently Asked Questions

Order processing, inventory control, and fulfilment are the main areas of concentration for an OMS. It oversees the supply chain's logistical operations and keeps track of orders from placement to delivery. A CRM system, on the other hand, is made to handle interactions and relationships with customers.

Yes, an order management system helps in smoothening the order fulfilment process and helps in processing orders faster. 

It can be used in all sized industries like, retailers, wholesalers, manufacturers, third-party logistics providers, brokers and dealers. 

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