Order Management Systems – Features, Types, and Top Brands

An order transaction has many elements that one needs to look after during the process. Back in the day, these elements were handled manually, making the entire process tedious to manage. An order management system or OMS has become an essential aspect of the business as it helps track the lifecycle of an order, including order entry, inventory management, and after-sales service. Let us get a detailed insight into this revolutionary system. How does an OMS function? No matter the nature, size, and complexity of the business, an order management system is responsible for the following four variables: Manage inventory Placement of orders and their fulfillment can impact business growth. Hence, it is crucial to focus on inventory management to avoid overselling, overstocking, and inaccurate forecasting. An OMS simplifies the inventory tracking process by updating inventory levels in real-time regardless of the channel of purchase. Order tracking It is the most fundamental aspect of any business, especially when it begins to expand for growth. An OMS makes it easier for both business and customer as it tracks and records orders made through the business’ website and other online marketplaces, including orders placed over phones and in-store. It centralizes and unifies sales to improve efficiency and productivity. Order fulfillment An OMS is not only responsible for order tracking and managing its inventory but also for delivering the products to the customers. Hence, the best systems will also streamline the logistic process, including routing the orders to the designated warehouse and printing shipping labels before the delivery. Overlooking reverse logistics Order cancelations and returns are an inevitable part of the business. A statistic suggests that nearly 30% of products bought from an online store are returned, which is 20% more when compared with in-store returns. A top-class order management software system will help with hassle-free return logistics. Types of Order Management System Every business has a basic framework with different functions. So to meet the requirements of these functions, there are five different types of systems that are: Retail fulfillment suite Retail Fulfillment Suite is typically a supply chain OMS that is best for a big-box retailer, wholesale brand stores, or simply a business that receives orders from other companies in their warehouse to store, label, and deliver. Enterprise Retail Platform Enterprise Retail Platform or ERM is a type of OMSs that are suitable for firms with standalone solutions. This system overlooks inventory management, warehousing and logistics, CRM (customer relationship management), and even HR and payroll. Digital Operations Platforms This type is the most versatile order management system; it is tailored for retail operations. It takes care of the functions of e-commerce channels and the order-to-cash process. Additionally, the operation platforms handle multichannel order management, inventory management, warehousing and logistics, CRM, accounting, business reporting, shipping and fulfillment, and even forecasting & inventory planning. BYOS Build your own system, or BYOS is a tailormade OMS to meet specific business requirements. However, this system requires an upfront investment, continual maintenance, and refinement as the business grows. The management has control over the back-end and front-end functions, but it comes with a cost.  Benefits of an OMS Now that you are aware of the functions and types of an order management system, let us look at its benefits that help make the business processes easily manageable: Lesser human errors Even the most diligent employees can make errors that can cause significant financial losses. Consider scenarios like mistyping an order into a system or a warehouse employee sending a wrong shipment due to incorrect labeling. However, with an OMS, there is less probability of such errors. Automation Time management is crucial for a successful business. It can also help increase customer retention. With the evolution of e-commerce, consumers have a variety of options to choose from. Thus, it only makes sense to automate the order process, right from order placement and fulfillment to delivery and after-sales. With back-office processes like inventory management and tracking being tedious and time-consuming, using an OMS automates the entire process, giving the staff more time to focus on business expansion. Better customer experience Several surveys suggest that at least 85% of customers will pay extra for a better customer experience. An OMS allows customer service agents to work more efficiently on customer queries regarding order status, accurate delivery and shipping information, and after-sales issues. Real-time reporting No matter how accurate the staff is regarding the order process, updating systems can be time-consuming. And when a business has an additional module like manufacturing inventory control software, real-time reporting becomes more crucial to avoid unforeseen delays. An OMS will ensure accurate and real-time reporting to move the business ahead with order management. Apart from this, it also tracks consumer behavior by following their pattern and purchasing trends. Top brands Based on the benefits and usability, the following are examples of some of the best OMSs for better business scalability: Brightpearl It is one of the best online order management system software with automation features for repeated orders, partial fulfillment, drop shipping, and other complex challenges. QuickBooks QuickBooks by Intuit is an efficient OMS with features like access to multiple channels, inventory tracking and fulfillment, and business intelligence, among others. The software is available for a free thirty-day trial. Veeqo It is best for securing the business from overselling and missing orders. Some of its features include order synchronization across multiple channels, tracking invoices, and warehouse management. You can use the software for free for thirty days.