What Exactly is an Order Management System?
The core of every goods-based B2C or B2B organization is its order-to-cash sales process, known as the ‘order management system.’ Client orders can be entered and processed using this order management system (OMS).
A client order is simply the entire process of receiving, processing, and fulfilling a customer’s request. Many different departments are involved in order management, including the customer support team, warehouse workers, accounting department, and delivery partners. Maintaining client happiness and safeguarding a company’s reputation are two of the many benefits that one can gain from efficiently mastering order management.
Order Management System: A Complicated System
An e-commerce order management system consists of several interrelated touchpoints and stakeholders that work together to ensure clients get the right items at the right price at the right time. Businesses can use order fulfillment systems (also known as order management systems) to construct customer data and keep track of stock levels and sales records, in addition to ensuring order-to-cash (O2C) operations function smoothly.
The Order Management System Challenges
It is impossible to successfully handle an order with as many touchpoints and parties involved as there are. A few of the problems organizations face are human flaws and system backlogs, stock awareness issues, transit mistakes, and lack of communication. They may all have a detrimental influence on customer happiness and loyalty.
An E-commerce Order Management Solution is the Key
Both B2C and B2B firms use an integrated and responsive order management system to create a quick-paced, economical, and accurate OMS. A company’s ERP system may be integrated directly with the OMS, allowing for the most efficient and lucrative order management cycle.
Advantages of Using an E-commerce Order Management System
An OMS provides numerous significant advantages for businesses: visibility at every stage of the selling process, time efficiency, lower risk for mistakes made by humans, as well as increased accuracy. The following are the e-commerce OMS top advantages:
1. Efficiency of Automation
By automating the order processing process, an e-commerce order management solution can save the firms’ money on labor, reduce human error, and devote more time to development and customer satisfaction by reducing the chance of human mistakes. Data security is improved since there is less manual involvement.
2. 24*7*365 Accessibility
Due to the e-commerce order management solution of 24/7 access, orders may be processed remotely and anytime since businesses have internet access to their OMS. Because of this, one can better serve their customers and process their orders more quickly.
3. Concentrate On Growth
Several benefits come from automating the ordering and receiving process, such as freeing up time to collect and analyze data for further growth and addressing any difficulties.
4. Management Of Inventories
Using an order management system to provide real-time data on things sold, returned, or swapped aids inventory management. Once again, this protects client pleasure by preventing corporations from over-selling their products.
5. A Centralized Perspective
One unified system for managing orders offers organizations an overview of the complex fulfillment environment for online sales and guards against order mistakes, customer unhappiness, or lost income due to frequent malfunctions such as inadequate inventory, wrong invoicing, or unexpected shipping issues.
6. Constantly Updated Data
A real-time data presentation of an order management system makes it possible for enterprises, rather than risking consumer discontent with errors or delays, to respond quickly to any challenges that may develop. By maintaining up-to-date product and payment data, businesses may better assess the current health of their operations.
7. Capabilities For Multiple Channels
Expand your e-commerce business’s potential and increase sales volume by utilizing a multi-channel e-commerce management system in which items are offered for sale in many online locations. All of the venues where your firm sells its products, including marketplaces, hosted web storefronts, and brick-and-mortar locations, are channels.
A Sound Order Management System is Critical for Several Reasons
The development of e-commerce and consumer expectations in today’s always-on culture has resulted in high volumes, high speed, and great hopes. Consumers have come to anticipate that they may order whatever they want, whenever they want, and from whichever platform suits them because of the widespread use of digital and electronic commerce.
E-commerce fulfillment is in high demand, as observed in a 2018-19 Digital Transformation Report: “the percentage of firms employing electronic commerce to assist their digital transformation has increased from 73% to 87%.” Customers expect a simple, one-click transaction, and businesses must meet this expectation if they hope to maintain customer loyalty and generate repeat business.
There’s little doubt that the order management system will impact customer satisfaction. Some firms consider the impact on backend logistics when purchasing an OMS, not the effect on frontend customer service. When a consumer uses Buy Online, Pickup In-store (BOPIS), or a curbside pickup for the first time, it’s critical to assess how they feel about the whole shopping experience.
Remember that a well-functioning OMS improves customer service and returns on investment.
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