Mastering E-Commerce with Advanced Order Management Systems

February 13, 2024

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The Order Management System (OMS) is a software that enables businesses to manage their order processing and fulfilment.

It creates a central hub for handling, organising, and shipping customer orders. This eliminates errors and enhances operational efficiency in retail.

The Role of OMS in Modern E-Commerce

Speed, accuracy and low costs are essential components of any e-commerce business. Customers need to get their products fast, in the condition and specifications they ordered, and at a reasonable price. OMS fits into these goals by streamlining the entire order fulfilment process and removing bottlenecks in the order handling process.

OMS has several interrelated touch points that function together to ensure that customers get the right goods within the promised timelines and at the right price. Your business can use OMS features to construct customer data and keep every part of the order processing running smoothly. Click here to learn more about its role in your e-commerce business.

Essential Components of a Robust OMS

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Various features enable the OMS to meet the order fulfilment needs of the business. Here are the three most essential components that you should check before onboarding.

1. Real-Time Inventory Tracking

OMS unified stock Management suite enables your business to have real-time visibility of their inventory across multiple locations. You can have accurate stock levels, which minimises the risk of overselling. It also enables you to set restocking levels more accurately to prevent stockouts.

2. Efficient Order Processing

E-commerce OMS streamlines the entire order lifecycle from placement to fulfilment with advanced order processing capabilities. It uses automated workflow and intelligent routing algorithms to optimise order processing. This streamlined process removes the need to have many people handle the process and eliminates errors that may slow the order fulfilment process. This way, you reduce order fulfilment times and ensure efficient order management.

3. Streamlined Shipping and Fulfilment

OMS enables your e-commerce to integrate with shipping carriers. This helps automate the generation of shipping labels and track shipments in real time. With OMS, you can make accurate delivery date calculations and provide real-time updates on customer deliveries. Speedy deliveries help enhance the customer experience in e-commerce.

Benefits of Integrating OMS in E-Commerce

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OMS has benefits for both your business and customers. For the business, OMS ensures accurate stock levels, which eliminates both overstocking and stockouts. It also combines order processing with shipping logistics and inventory management to reduce the occurrence of manual errors.

The system also increases order accuracy and minimises costly returns by eliminating order fulfilment errors. It also enables efficient e-commerce returns management so that clients get replacements or cash on time.

For the clients, OMS ensures that they get their orders on time according to the specifications they provide. They are also able to track their orders more accurately at any time. Should they need to return the products, the e-commerce returns management system ensures that they get their cash or replacements quickly.

Challenges in Implementing an OMS and How to Overcome Them

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Here are a few challenges you may face when implementing an OMS and how to overcome them.

1. System Integration Problems

You may need to integrate different systems, which often leads to compatibility problems. The best way to overcome this is by conducting a comprehensive analysis of existing systems and processes to identify integration requirements for the new system before onboarding.

2. Data Migration Issues

Transferring large volumes of data from legacy systems to the new OMS can be complex and time-consuming. However, you can deal with the challenge by choosing an OMS solution that offers seamless integration capabilities and robust support for data migration and system compatibility.

3. Resistance to Change

Employees may resist adopting new processes and technologies for fear of job loss. Your business should invest in thorough training programmes to familiarise employees with the new OMS and its benefits. You should also address concerns to promote buy-in from all stakeholders.

Case Studies: Successful OMS Implementations in Retail

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TB Retailers, a designer clothing retailer in London, has been continually exploring new ways to enhance its customers’ shopping experiences. One challenge the retailer was having was developing a cohesive omnichannel retail strategy that could deliver a unified experience. It sold on social media, websites, and online marketplaces but lacked a unified order-processing framework.

When they implemented an OMS solution, they noticed a drop in returns as there were fewer errors in packaging. The retailer also experienced a 20% surge in e-commerce sales year-on-year and could deliver to all clients at the same delivery times. It was also able to keep stock levels within a specific parameter, as it could tell how much apparel was left in the warehouse.

Future Trends in Order Management Technology

There is an exciting future in order management technology. The rapid development of blockchain technology and AI will bring many benefits to both businesses and customers. AI and machine learning will help with predictive analytics for demand forecasting. It will also enable the hyper-personalization of shopping experiences for each customer.

On the other hand, IoT order tracking will provide precise location data for the order at any time. Finally, blockchain technology will enhance supply chain transparency by providing immutable and transparent records.

Advanced OMS is an essential part of any e-commerce business. It combines all the functions and touchpoints involved in handling and processing customer orders so that the process is streamlined and efficient. Every business involved in e-commerce should consider having an OMS for their order management.

Author Profile

Manuela WillboldOnline Media & PR Strategist

Senior Online Media & PR Strategist at ClickDo Ltd. | Editor in Chief at LBN | Summer Course Student at the London School of Journalism and passionate Digitalist.