For a lot of businesses, especially the ones witnessing a huge number of sales and revenue, it is vital to keep track of three tasks – capturing, tracking, and fulfilling. This helps them manage the entry business in a more efficient and sophisticated manner. To succeed in these tasks, an online Order Management System can be used. If you are not aware of what it is, here’s all you need to know.
What is an Order Management System?
Regarding what is order management system, it is the technology that helps manage and organize the different orders of any business, from initial acceptance all the way to shipment of a finished product. It streamlines and successfully records the entire process of order fulfillment. That is the main objective for which such a system is used, but there are a lot of other reasons for its use also.
OMS or Order Management System is generally a single system unit that takes care of all the different aspects of a business. It helps to carry out tasks that include – order processing, call center management, forecasting & purchasing, inventory management, warehouse management, customer service/CRM, and many more. With the use of a fully integrated and high-quality OMS, a business can actually improve its performance.
A good OMS is an all-rounder in terms of managing and organizing different aspects of a business, allowing it to run smoothly and more efficiently. There are many online order management systems available for those in the eCommerce business. They can purchase order software and also have the option of customizing as per their needs.
What does the Order Management System do?
As we have already mentioned, an order management system can be used for many tasks. A business can benefit in various ways by equipping themselves with a good OMS. Here are the most common and essential tasks that an Order Management System regularly does –
- Automation Efficiency – an OMS is completely automated and that is why it can reach much higher levels of efficiency on a daily basis. It helps to save costs, reduce human involvement in a process, results in much fewer errors, etc. Hence, it can help the business to focus on growth and the aspects related to it.
- 24/7 Access – a great thing that OMS does is to keep the businesses running and updated 24×7 at all times. You can easily access the OMS from anywhere. It offers remote access to business data. That is why a business is able to offer better customer service, better order processing, etc.
- Tie up with Inventory Management – regardless of what a business is dealing with, keeping the inventory updated and packed at all times is essential. An OMS helps to do the exact same thing. It has ways that enable inventory management features like tracking of items available, sold, arriving, etc. So businesses can function every day without any disruption of the inventory.
- A Centralized View – OMS provides a more centralized view of the entire business. It can be very useful in the e-commerce ecosystem in order to report and audit business errors, dissatisfaction among customers, etc.
Step by Step Guide of Order Management System for Ecommerce
Here is a step-by-step guide on how an Order Management System works for any business –
- The customer does shopping – the very first step is that of the customer making a purchase of a product. The OMS works by not only making the final transaction but also by showing the customer with a proper cart and making sure that the inventory is always updated.
- The order is processed – as soon the order is placed, the item requirement details and inventory are updated by the OMS. It starts the tracking process of finding the product that the customer is looking for. Then it updates and clears the projected sales details.
- The customer pays for the order – after selecting all the items, the customer pays for it. The OMS instantly updates the accounting system and after that, gives out an invoice as a receipt. OMS verifies the payment received.
- The shipping process begins – if the purchase has been made online, then the OMS process the shipping of the products to the customer’s home or any other destination address they have provided with. The entire tracking process is automated and updated by the OMS, till the final delivery is made.
The Order Management System has turned out to be a necessity for almost all kinds of businesses in today’s world. Everyone is looking for high-end automation, efficient, and excellent management systems. The system should be easy to track. All of these contribute to the growth and success of any business in the long run. OMS does exactly that and is the reason why it is so much popular. The increase in the demand for digital and e-commerce platforms are also making OMS more vital a system than ever before in 2020.
As a result, purchasing of optimal and efficient Order management systems by vendors who provide the end product via different channels like online stores and marketplaces has become indispensable.