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BlogWhat does an order management system do?

What does an order management system do?

Order management is a critical part of running any business. Unfortunately, manual order processing has some significant challenges that affect efficiency and overall business performance. For instance, the traditional way of processing orders consumes a lot of time and is prone to errors. Additionally, it makes it challenging to track and manage inventory levels in real-time. That is why automation through order management systems has become an invaluable tool for modern businesses looking to scale up sales.

What is an order management system?

An order management system (OMS) is a platform that helps businesses organise and automate critical parts of the buying process. Think of it as a smart assistant for your business, tasked with tracking every order received and ensuring the product reaches the customer on time.

Its primary purpose is to ensure that when a customer places an order, the item is in stock and that the purchasing process starts as soon as possible.

Order management systems create a single, centralised system for managing customer orders. By doing so, it simplifies the purchase process for both the customer and the business, increasing efficiency and customer satisfaction.

There are different types of order management systems available in the market today. The choice of the right type will often depend on various factors, such as the size of the business, the complexity of operations and specific needs related to order management. Some examples of common OMSs include the bundled OMS, supply chain OMS and enterprise OMS.

If you run a small business, a bundle OMS will work best for you because it offers a more comprehensive solution by ‘bundling’ all the functionalities into a single cohesive platform. Larger businesses, on the other hand, will do well with an enterprise order management system. This type of OMS is best for larger enterprises because it allows you to integrate order management with other business functions, ensuring a comprehensive solution for large and growing businesses.

Why is an order management system important?

Increased efficiency

One of the main benefits of implementing an order management system is increased efficiency. These systems enhance operational efficiency in various ways, including automating manual tasks, streamlining workflows and providing real-time order tracking.

It all comes down to leveraging technology to reduce errors (common with manual order management) and optimising processes.

Enhanced inventory management

Besides increasing efficiency, order management systems also enhance inventory management. They offer real-time inventory visibility, allowing you to accurately track product availability for better decision-making with regard to restocking your shelves.

It also creates a centralised system for inventory control, which proves helpful for businesses with multiple sales channels. That minimises discrepancies, leading to efficient operations and improved ability to meet customer demands.

Improved customer experience

Last but not least, implementing an order management system can help enhance the customer experience. The system does this in various ways, including providing the customer with a clear update/status of their placed orders. With such a system in place, the customer will know details such as estimated time of arrival, which helps instill confidence in the shipment and delivery process.

Helen Greaney
Helen Greaney
I'm a journalist with more than 18 years' experience on local, regional and national newspapers, as well as PR and digital marketing. Crime and the courts is my specialist area but I'm also keen to hear your stories concerning Manchester and the greater North West region.
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