Definition: Order Management System
The Order Management System helps to increase the efficiency of logistics, optimise order fulfilment and also improve the customer experience.
In recent years, consumers have adopted new behaviours and consumption habits. This is why it is now essential for retailers to rethink their digital strategy in order to grow their business.
More and more businesses are implementing what is known as an omnichannel strategy. This strategy is a continuation of the multi-channel strategy and consists of optimising the customer experience by using different sales channels that interact with each other. This allows the company to offer its customers a personalised journey and a unique experience.
But omnichannelity now goes further. Indeed, we see the need to implement a unified commerce strategy, meaning that the various sales channels of a retailer must be perfectly coordinated to offer consumers an increasingly unique and fluid experience.
To meet this objective of unified commerce, tools are put in place to facilitate the coordination of the different channels. The Order Management System (OMS) is one of the most effective tools for ensuring interaction between the various sales channels (website, application, physical shop, etc.) and thus meeting the expectations of today’s customers.
Why adopt an omnichannel strategy?
Today, with digitalization, we notice that consumers tend to start their purchases online by looking for information and comparing different brands. They then come to the shop knowing exactly what they are looking for and wanting to be able to test and try the product to finalise the purchase.
Above all, customers are looking for a unique experience and an optimised customer service through the shops. Whether online or in-store, they need to be able to find the same information, the same journey and the same services.
With the coordination of sales channels, the challenge for retailers is to be able to manage their stocks. Indeed, whether the customer buys online or in-store, or reserves online and comes to collect in-store, this requires the ability to manage the various stock flows and their origin.
This is where the Order Management System comes into play. It is an order management system that speeds up purchasing by unifying stock management. Thus, regardless of the source of demand, it will be possible to monitor stock levels, anticipate consumer expectations and offer them the right product on the sales channel most suited to their buying habits.
What is an order management system?
An Order Management System (OMS) is an intelligent tool for optimising stock and order management across all sales channels. Its goal? To provide the smoothest possible customer experience.
It interconnects with other supply chain solutions (CRM, PIM, ERP, e-commerce site), exchanging data in real time to offer 360° visibility of omnichannel retail activity.
It is thus possible to see at a glance:
stock availability,
delivery times,
logistics costs,
order processing,
order tracking, etc.
Equipped with a system for synchronising data flows and cross-analysis between company constraints and customer needs, it enables the best supply solutions to be proposed (click & collect, rapid delivery, etc.).
How does an Order Management System work?
An Order Management System acts as the orchestra conductor of your orders, and does everything possible to serve customers better and close more sales.
Here are the main features that an order management system can offer:
proposing different delivery options to the customer,
Intelligent selection of the best stock to pick for each order,
recording and centralising orders
sending order details to warehouses or external service providers
automatic updating of stock inventories,
order tracking for the customer and customer service,
alerting on stock levels to avoid shortages, etc.