Order Management Software: What If Managing the Entire Order Lifecycle Was a Breeze

If we were to ask you to describe a competitive eCommerce business, what characteristics would you use? Smooth and efficient order processing, real-time delivery updates, accurate inventory management, scalability… These are among the crucial traits that have become inseparable parts of modern retail and eCommerce solutions. 

And that is not only because businesses in this niche want to stay competitive and elevate their services, but also because consumers have become much more demanding. They seek a smooth shopping experience and expect to get their products delivered straight to their doorstep as soon as possible and as safely as possible. Nothing handles these expectations better than an order management system (OMS).

You can simply think of an OMS as a digital platform to organize the entire order lifecycle, from preparation to payment and final delivery. The main goal of OMS is to maintain accurate inventory management and efficient shipment.

Given that the demand for online order management software doesn’t seem to cool down and is expected to reach $11 billion by 2032, more and more businesses are starting to realize its importance. No more beating around the bush, let’s dive in to explore why OMS is so valuable.

Operating Without OMS: Possible, But Not Scalable

Before going in-depth on the details about OMS, let’s first sort out whether you can go on without the one by your side, or if it’s a no-brainer.

Consider having a small local home goods store that typically offers delivery throughout the city. You handle orders directly at the counter or over the phone, then the courier ships the product, and the client pays upon pickup. In such a scenario, you can organize the process manually or use simple Excel sheets to keep order records.

Then your business grows. Now you have new stores in different locations, and your order volumes have increased as well. Handling deliveries manually and coordinating couriers is no longer working. This is the right time to implement order management tools.

Specifically, because an OMS will encompass pretty much everything, from order processing and inventory management to delivery coordination and real-time updates across multiple warehouses. As you see, while a small business can go on without order management software, for enterprises and those scaling up, it’s non-optional.

When Your Operations Shine: Key Outcomes of an Order Management System

Now we’re probably on the same page that an OMS is the bread and butter for a growing eCommerce business. Overall, there are plenty of benefits to reap from a robust enterprise order management system. But we’ve decided to focus on the core five that might be of the most interest to you.

With a robust OMS in place, it’s possible to gain real-time inventory tracking, which will give you a clear picture of the stock levels across multiple locations. This notable improves inventory management, ensuring in-demand products always stay available.

For example, a customer may order goods through the app but choose to pick them up at the nearest store. And there is no need to switch between platforms to get to the point. Instead, the advanced system automatically handles the transition between platforms, thus simplifying the process.

This is just one example of how robust order processing software enhances customer experience. It’s a broad topic and deserves separate attention, so let’s discuss it in more detail in the upcoming section.

The process doesn’t end once the shipment is completed. OMS typically includes live chats, offers a platform for customers to rate the goods and services, and gives guidelines for product returns. Let’s admit that such opportunities will hardly go unnoticed by your clients.

By the way, we have an in-depth article on key types of data analytics to boost decision-making. You can save it for later reading. But, for now, let’s continue exploring more interesting ground about OMS.

Looking Under the Hood: Key Features Making OMS Valuable

Just touching the surface of the OMS core benefits is probably enough to understand the potential it offers. But these advantages don’t just appear out of thin air. The secret lies in the right functionalities. Depending on your enterprise needs, there are different functionalities, from basic to advanced, that your order management system should have.

Whatever your goal is, based on our experience in delivering OMS solutions for different clients, we truly believe that your platform should at least include these basic features.

• Real-time inventory management: Up-to-date inventory management is at the heart of an OMS. It is the only proven way to ensure accuracy in stock levels across warehouses.
• End-to-end order tracking: This is beneficial for both your staff and customers, as it allows them to track the current location of deliveries, ensuring goods won’t get lost and will be delivered on time.
• Communication and support: Whether having issues with payment processing, shipment updates, product quality, or other related concerns, consumers should have the opportunity to communicate them smoothly. Hence, offer support channels such as live chats, in-app support, and FAQ pages.
• Return management: Since reverse logistics is an inseparable part of eCommerce, it’s one of the key OMS features that is worth keeping an eye on. It will help your system handle returns, manage refunds, track reverse logistics, and update inventory accordingly.
• Analytics and reporting: Your order management software collects valuable data on sales trends, customer behavior, order patterns, and inventory performance. And the only way to make these variables actionable is by employing analytics and reporting tools.
• Integration capabilities: It’s pretty safe to say that without integrations, your OMS is doomed to fail. That’s because it won’t be able to connect with other systems like eCommerce platforms, payment gateways, and warehouses, so you will end up with data silos and inaccurate operations.

Working in Sync: Strategic Integrations for OMS

Depending on your specific business needs, there are different tools and platforms to integrate into your OMS. Whatever your project is, there are some essential integrations that we strongly believe you shouldn’t overlook. Let’s get ted more specific about them.

Warehouse Management Systems

Real-time stock availability checking, storage location management, and order fulfillment accuracy… These critical tasks cannot be achieved without a warehouse management system (WMS). That’s why it leads our list of must-have OMS integrations.

Let’s see how it works in practice. A customer places an order, and your system automatically checks which warehouse has it in stock. Then the system chooses the nearest one and sends all the order details to that WMS. Warehouse staff receive the order and can smoothly organize shipping.

Even better, modern warehouses are powered with IoT solutions and robotics, which take order management processes to a new height. Specifically, IoT provides real-time updates on inventory levels, while robotics takes over tasks like picking, packing, and preparing products for shipment. This automation not only speeds up processes but also ensures safe handling of heavy items. Thus, creating a safer working environment for your staff.

CRM Systems

To provide exceptional service and boost sales, you need a solid overview of your clients’ order-related information and overall shopping habits. Nothing supports this better than integrating a CRM into your OMS, as it brings valuable customer data and insights into your order management system. By having all this information in one place, your team can significantly enhance customer support and gain full visibility into the entire process, from sale to delivery.

So, when a client contacts for assistance, your team can immediately access all the required information without switching between systems. Moreover, many modern CRMs are integrated with intelligent contact center platforms, which help support teams provide better assistance.

CRM capabilities don’t end there. Typically, these platforms collect valuable data such as purchase history, shopping habits, and individual preferences, enabling more personalized offerings. Additionally, after a purchase, CRM systems automatically send follow-up emails to assess the effectiveness of your services and gather feedback for further improvement.

Payment Gateway

Before a product is shipped, the customer needs to pay for it first, right? That is to say, payment gateway (PG) integration is no longer optional. PG syncs transaction data with order information and ensures secure and real-time money transfer.

PG also plays a critical role in handling refunds by automatically transferring money back to the payment method used for the purchase. This significantly reduces the possible errors during transactions.

And probably the cherry on top of PGs is their ability to seamlessly integrate with crypto wallets, allowing businesses to offer customers a more flexible shopping experience.

eCommerce Platforms and Marketplaces

You probably remember we talked about the omnichannel environment as one of the core benefits of an OMS. But to make it possible, your system needs to be integrated with eCommerce platforms and marketplaces.

This is especially critical for large retail businesses, which generate sales through various channels such as websites, marketplaces, and mobile apps. Managing orders separately can become a real headache due to a lack of visibility, fragmented workflow, and inconsistent data.

Meanwhile, integrating eCommerce platforms and marketplaces into your OMS creates a single source of truth for operations across all sales points. The system automates order processing in real time and synchronizes data, leading to more accurate order fulfillment.

Build vs. Buy vs. Composable: Key Points to Ponder

Yes, having an OMS is a no-brainer for your enterprise’s eCommerce growth. Yet some questions may still remain unclear. Do you need a custom product, an off-the-shelf solution, or perhaps a composable one? Let’s take a look at a comparison of each order management software type, so you can weigh all the nuances before implementation.

Hitting the Sweet Spot: Steps to Build a Robust eCommerce OMS

With all the intricacies we’ve explored about order management systems, you might feel your urge to get the ball rolling. But first, let’s take some time to skim through the core steps that guarantee a robust implementation.

• Define core features: Sounds trivial, right? Of course, you know why you need an OMS, yet you may overlook this step. However, it’s crucial to clearly define the core functionalities your system should have. Otherwise, your team may spend time developing non-essential features, which may later require time-consuming and costly adjustments.
• Choose the right tech stack: The programming languages, tools, and frameworks your developers utilize can make or break your solution. So, before the start, it’s worth assessing the relevance of the tech stack. We know that it’s not that straightforward, so we’re sharing our article where you can get familiar with the basics of choosing the right tech stack.
• Start with MVP: If you want a faster time to market, then MVP development is a perfect option. By focusing only on the top features of your system, you can test it in a real environment, measure its effectiveness, and make adjustments before building a full-scale product. This will help you allocate resources more efficiently and deliver a truly reliable solution.
• Design user-friendly interfaces: Without a solid UI/UX, even a product with advanced features is going nowhere. Hence, make sure your system is user-friendly, allowing your teams and clients to interact with it effortlessly.
• Integrate with other systems: Having a well-designed OMS is not enough to cover complex eCommerce operations. As we mentioned, you need to integrate it with other systems like CRM, marketplaces, and WMS to ensure smooth workflows, accurate data, and efficient operations.
• Test and optimize: Lastly, before final deployment, your team should test the software. This will help identify bugs early on and optimize your product’s performance.

Almost There… But Something Is Still Missing!

Our topic would be incomplete if we didn’t discuss the role of artificial intelligence in modern order management software. Although we are still at the cusp of realizing the full potential of AI, one thing is for sure: this technology has significantly redefined the way retail businesses operate.

Overall, there are plenty of opportunities that AI tool implementation can bring to your OMS. Take automation, for example. We have already discussed its crucial role in improving the accuracy of the entire shipment and reverse logistics workflow. AI not only makes plenty of business operations hands-free, but also learns from historical data, thus improving operations over time.

Additionally, when it comes to inventory management and demand forecasting, ML algorithms are irreplaceable. They are capable of analyzing huge datasets within seconds to provide accurate insights for decision-making.

Another area where AI algorithms can make a difference is speeding up delivery. AI optimizes transportation by selecting the most efficient routes. These are just names of a few pros AI brings to OMS, showcasing how crucial this technology is for your endeavor.

Ready to Redefine Your Order Management Operations? Let’s Collaborate

Now you might think it’s the right time to elevate your order management process. And most likely, you realize that whether you’re improving your existing product or building one from scratch, it isn’t for the faint of heart. Finding an experienced team in this niche can also be challenging.

Fortunately, Velvetech has long specialized in developing scalable enterprise eCommerce and retail products for different levels of complexity. So, regardless of your project’s pain points, we will give it our all and undoubtedly bring it to fruition.

Don’t hesitate to request a quote.