The question that everyone is looking for, what to look for in order management? If you run an ecommerce or other retail firm, you depend on the ability to fulfil consumer orders in a timely manner across several sales channels. Your company’s growth depends on reliable order information. Ideally, stock levels can be viewed in real time by both customers and the business.
Even though order management software is essential for large and high-volume companies, it is also critical for small and medium-sized enterprises (SMEs).
What is an order management system?
Customer orders can be tracked and fulfilled through the use of an order management system, which is a software tool or e-commerce platform that facilitates the administration of inventory and fulfilment. For example, order management software collects credit card payments or handles other invoicing solutions at the point of sale, organises the order fulfilment process, and integrates with shippers.
Customer order status, history, and tracking may all be viewed by customers using order management software. Customers can be directed to the main company website via numerous sales channels like Shopify, Lazada, and Shopee, which simplifies the process of managing the retailer’s supply chain.
An effective digitalisation can make a supply chain nobler and more streamline.Bernard Hor, CEO of Hatio
Order management solutions provide business intelligence in the form of analytics to comprehend real-time inventory visibility and inventory levels, which is beneficial to ecommerce businesses as well. Catalogue administration can be simplified by using a centralised platform. As a result, backorders are reduced, which improves supply chain efficiency and customer satisfaction.
Considering how your growth and business procedures may be affected if your small business is utilising Excel or an outdated system not suited for omnichannel sales orders.
How to choose an order management system
First and foremost, business stakeholders should establish their priorities before implementing an order management system. Find out what you need and learn what different order management systems can do for you. All of them aren’t exactly the same. Consider both “good to have” and “essential” characteristics when making a purchase. A few of the features offered by order management system are as follows:
- Tracking volume and shipment numbers across many sales channels, such as Lazada, Shopify, and Shopee, is made possible through multichannel integration.
- Product information
- SKU tracking and inventory level updates across systems and distribution networks
- Possibilities for customer orders (positive customer experience for ordering, tracking numbers, processing returns and refunds)
- Tracking order processing and purchase orders
- For order fulfilment, shipping information and customer location are used to route orders to warehouse management or third-party logistics providers.
- Supplier integrations for purchasing and receiving
An order management system can offer a lot of features. This business operations software can help you connect the many nodes in your supply chain by taking a comprehensive look at it. Customer satisfaction and growth can be increased by automating several of these internal operations. As a result, the risk of human error is reduced.
The benefits of using OMS
Meet customers’ expectations
Shipping is clearly a sensitive matter for today’s consumers. Your order fulfilment procedure isn’t just important to customers because of the speed at which it’s completed. Nearly nine out of ten customers expect to know where their item is and when it will arrive, according to a recent survey.
Merchants are better able to meet customer expectations when they use an OMS. To keep clients updated on their order (or return), most systems offer built-in tracking sites.
Pick, pack and ship faster
Delivery costs are still important to modern consumers, but so is the time it takes from the time an item is bought until it is delivered. Consumers expect next-day delivery when they shop online, and firms must deliver on that promise if they want to keep their customers coming back.
For Tanner Arnold, owner and CEO of the company Revelation Machinery, “time is money,” he adds. Once an order has been placed and assigned to a facility, the delivery time will increase.
In order to speed up the process of picking and packing, an OMS checks stock in multiple warehouses. It identifies the closest fulfilment centre with available inventory to the customer. For the product to be picked, packed, and dispatched quickly, it sends order information to that location immediately.
Improve order accuracy
Order fulfilment without an OMS is fraught with peril. Manual order processing with spreadsheets leaves you vulnerable to human mistake. Manual process management errors are the root cause of inventory and fulfilment problems for majority of merchants at this time.
This is not only bad for the client experience, but it also generates logistical difficulties for the company. Your return processing costs will soar, as will the money you spend on correcting errors in orders.