The order management system is a system designed to streamline, manage and track orders throughout the fulfillment process. The order management system also provides real-time information on the status of the order, from the point of sale to the last-mile delivery.
The omnichannel order management market was valued at USD 2 billion in 2020, at a CAGR of 10% during the forecast period (2021-2026).
Therefore, it is essential to have an order management system in place to help you process, manage, automate and track orders. Without a system, you’ll be spending time verifying order details and hoping you have enough stock to avoid back orders, split shipments, and inventory due to inaccurate data.
Fortunately, optimizing your order management process is easier (and more affordable) than you think. As inventory levels and customer orders interact, an order management system simplifies real-time inventory and order management and provides full visibility into the retail fulfilment process by aggregating data and information in one place. Implementing an order management system is a smart investment for e-commerce businesses, especially when dealing with a high-volume order fulfillment process. Here’s an overview.
An order management system can help you and your team track orders and shipments at every stage, from processing to delivery.
Order tracking is not just for internal business purposes; today’s online shoppers expect real-time order tracking to be shared with them. The order management system automatically updates order status so you can share order tracking information with your customers, including status and shipment information.
Providing real-time order tracking not only helps build trust but also helps reduce the number of customer service inquiries related to order and shipment status, freeing up time for the team to focus on other more important issues.
A sound order management system will record and collect historical order data that you can use to better manage your inventory. With this type of data, you can easily pull trend and seasonality reports so you can forecast demand more accurately.
Once you analyze this data, you can make informed decisions about how much you should reorder each SKU based on past demand and expected sales.
You can take this a step further and decide which SKUs generate the most demand by location, and decide where to store inventory if you choose to use more than one warehouse.
Excess inventory can lead to higher shipping costs and dead stock, while insufficient inventory can increase the risk of stock-outs and reduce customer satisfaction. An order management system can help you optimize your inventory so you can consistently meet demand while keeping costs low.
An order management system can also help fulfil orders faster while improving accuracy. Most systems offer two-way synchronization that ensures order information is passed between your order management system and your e-commerce platform (and/or fulfilment software) while giving you visibility into the entire process.
Orders do not always guarantee a sale. Some returns are often unavoidable, so it’s just as important to track orders that are sent back as orders that have been placed.
Some order management systems offer features that can help you better track returns and gather information about what’s causing them. An order management system can track your e-commerce return rate and quality feedback so you can improve your process and increase customer satisfaction while reducing costs.
Finding a way to make the return process more manageable is crucial to customer satisfaction and the overall process.