According to a recent survey, 69% of customers are unlikely to return to a business if they experience a delayed or incorrect delivery. This highlights the importance of having the right order management system in place. Businesses must streamline the entire process and avoid costly errors.
With so many order management systems available in the market, selecting the right one can give you a headache. From on-premises systems to cloud-based and hybrid systems, businesses have a wide range of options to choose from.
In this article, we will guide you through the process of selecting the right order management system for your business. We’ll start with understanding your business needs. Then we’ll help you evaluate the top systems in the market.
What Is an Order Management System?
An Order Management System (OMS) is a software application. It helps businesses manage their order processing and fulfillment operations.
It allows businesses to automate and streamline their order management processes. This is from receiving and processing orders to managing inventory and shipping.
An OMS can include features such as:
- order capture
- order processing
- inventory management
- shipping and tracking
- reporting and analytics
It enables businesses to consolidate orders from multiple channels. These may include e-commerce websites, brick-and-mortar stores, and marketplaces.
These consolidate into a single system. One that provides a holistic view of their orders and inventory.
Order capture refers to the process of receiving and processing orders. An OMS enables businesses to capture orders from multiple channels. It processes them based on predefined rules.
For example, businesses can set rules to route orders to specific warehouses. It can also prioritize orders based on their value or shipping location.
Inventory management is a critical component of an OMS. It enables businesses to track and manage inventory levels. This is happening across different locations and channels in real-time.
This helps businesses:
- optimize their inventory levels
- reduce stockouts
- avoid overstocking
This can lead to better customer satisfaction and increased profits.
Shipping and tracking features in an OMS enable businesses to manage their shipping operations. Businesses can:
- generate shipping labels
- track shipments
- manage returns and exchanges
All this is from a single system. This provides a seamless customer experience.
Reporting and analytics features enable businesses to gain insights into their order management processes. You can learn
- order volume
- order value
- shipping costs
- inventory levels
This data can help businesses make informed decisions. They can better optimize operations to improve efficiency and profitability.
Overall, an Order Management System is a powerful tool that helps businesses automate and streamline their order management processes. By implementing an OMS, businesses can improve their operational efficiency. It helps reduce errors and delivers a better customer experience.
Understanding Your Business Needs
Before you start evaluating different order management systems, it is important to have a clear understanding of your business needs. This will help you identify the key features and functionalities required in an order management system. Then you can assess your current order management process to identify pain points.
One way to understand your business needs is by mapping out your current order management process. This involves identifying the various stages involved in processing an order. This may look like this:
- order placement
- inventory management
- order fulfillment
- shipping
By mapping out the process, you can identify the areas where bottlenecks occur. You’ll see where errors often happen.
Once you have mapped out the order management process, you can identify the key features and functionalities you require. Suppose you experience delays in fulfilling orders due to inventory management issues. You may need a system that provides real-time inventory tracking and forecasting.
It is also important to determine your budget for the order management system. Investing in a high-end system with all the bells and whistles may seem tempting. But this may not be feasible for small businesses with limited resources.
On the other hand, choosing a system with limited features may not be sufficient for larger businesses. You have more complex order management needs.
By understanding your business needs and budget, you can narrow down your options. You can choose an order management system that meets your requirements.
Types of Order Management Systems
Now you have a clear understanding of your business needs. The next step is to evaluate the different types of order management systems available in the market. There are primarily three types of order management systems:
- on-premises
- cloud-based
- hybrid systems
Local servers host on-premises systems. Your business’s IT team manages them.
These systems offer greater control and customization options but require significant upfront costs. These costs include hardware and software installation and maintenance.
Cloud-based systems you may also know as Software-as-a-Service (SaaS) systems. These are hosted on remote servers and accessed through the internet.
These systems offer greater flexibility and scalability. Businesses can add or remove features as per their needs.
They also have lower upfront costs and require minimal IT resources. The vendor manages the software and hardware maintenance.
Hybrid systems are a combination of on-premises and cloud-based systems. They offer businesses the best of both worlds.
You receive greater control and customization options for on-premises systems. You also get the flexibility and scalability of cloud-based systems.
When evaluating the different types of systems, consider the pros and cons of each type based on your business needs. If your business requires greater customization and control over the software, an on-premises system may be a better fit. However, if you require greater flexibility and scalability, a cloud-based system may be the way to go.
In the next section, we will discuss the key considerations in selecting an order management system, regardless of the type chosen.
Key Considerations in Selecting an Order Management System
When selecting an order management system, there are several key considerations to keep in mind. These can ensure that the system meets your business needs and provides a positive return on investment. These considerations include:
- scalability and flexibility
- integration capabilities
- user interface and ease of use
- security and compliance
- customer support and training
Scalability and Flexibility
An order management system should be able to grow with your business. It should adapt to changing requirements. It should be able to handle a high volume of orders and support multiple channels.
These can include:
- online marketplaces
- brick-and-mortar stores
- social media platforms
It should also offer flexibility in terms of adding or removing features as per your business needs.
Integration Capabilities
An order management system should complement your other processes. It should possess the ability to integrate with other software and systems used by your business. These may include:
- accounting software
- inventory management software
- shipping carriers
Integration capabilities reduce manual data entry. This can ensure that data is consistent across different systems.
User Interface and Ease of Use
An order management system should have a user-friendly interface that is easy to navigate and use. It should also offer customization options to suit the preferences of different users. It must also provide a seamless experience across different devices.
Security and Compliance
An order management system should have robust security measures in place to protect sensitive data. Such as customer information and payment details. It should also comply with industry regulations and standards. This includes the Payment Card Industry Data Security Standard (PCI DSS).
Customer Support and Training
An order management system should offer reliable customer support and training. This helps users get the most out of the system. This includes online resources such as:
- user manuals
- video tutorials
- forums
It should also provide responsive customer support through email, phone, or chat.
Keep these key considerations in mind. They help you select an order management system that meets your requirements. This can help you achieve your business goals.
Evaluating Order Management System Providers
You have identified your business needs and evaluated the different types of order management systems. You even looked at some key considerations when making your decision. The next step is to evaluate order management system providers.
It is important to conduct thorough research on the provider and consider factors such as:
- reputation
- experience
- pricing
Reputation
Research the provider’s reputation by reading reviews and testimonials from other businesses. Consider their track record of delivering quality software and customer support.
Experience
Look for providers with experience in your industry and with similar business models. This ensures that they have a good understanding of your business needs and can provide tailored solutions.
Pricing
Consider the pricing structure and whether it aligns with your budget and business needs. Compare the pricing of different providers. Consider factors such as
- upfront costs
- ongoing fees
- pricing for additional features or services
Additionally, it is important to consider the provider’s approach to implementation and training. Do they offer comprehensive training and support to help your team get up to speed with the system? Do they offer ongoing support and maintenance to ensure that the system runs well?
Evaluate order management system providers based on these factors. This helps you choose a provider that offers a system that meets your needs. You’ll select one that provides the necessary support to ensure a smooth implementation and ongoing success.
Selecting the Right Order Management System
Now it’s time to select the right order management system for your business. This involves conducting a thorough evaluation of the shortlisted systems. You will gather feedback from stakeholders, and make a final decision based on the evaluation and feedback.
Conducting a Thorough Evaluation
When evaluating the shortlisted systems, consider their ability to meet your business needs. Look at the key considerations discussed earlier. Create a checklist of features and requirements and compare each system against the checklist.
Additionally, consider the system’s:
- scalability
- ease of use
- integration capabilities
Gathering Feedback From Stakeholders
Gather feedback from stakeholders who will be using the system. This should include sales representatives, customer service representatives, and IT staff.
This feedback can help identify any issues or concerns that may not have been uncovered during the evaluation process. Plus, it can help build buy-in and support for the selected system.
Making a Final Decision
Make a final decision based on the evaluation and feedback.
Consider factors such as the system’s ability to meet your business needs. Take into account the provider’s reputation and experience. Look at the system’s pricing and support.
It is important to note that the selection process should be collaborative. It must involve all stakeholders to ensure that everyone is aligned and committed to the selected system. Once the system has been selected, work with the provider.
Plan and execute a smooth implementation. Ensure that all stakeholders receive training and support to ensure the successful adoption of the new system.
Emerging Trends in Order Management Systems
As technology continues to advance, Order Management Systems are also evolving. They must meet the changing needs of businesses and customers. Some of the emerging trends in OMS include:
Artificial Intelligence (AI) and Machine Learning (ML)
AI and ML are being integrated into OMS to help businesses automate and optimize their order management processes. For example, AI-powered algorithms can predict demand and optimize inventory levels. This reduces stockouts and overstocking.
Cloud-based Systems
Cloud-based OMS are more popular as they offer scalability, flexibility, and accessibility. Cloud-based systems also enable businesses to reduce their IT infrastructure costs. They easily integrate with other systems.
Omnichannel Capabilities
OMS with omnichannel capabilities enables businesses to manage orders across multiple channels. This helps businesses provide a consistent and personalized customer experience. This is regardless of the channel they use to interact with the business.
Sustainability
Sustainability is becoming an important consideration for many businesses. OMS is no exception. Some OMS providers are incorporating sustainability features into their systems.
They now can optimize shipping routes to reduce emissions and track the carbon footprint of orders.
By keeping up with these emerging trends, businesses can stay ahead of the curve. You can leverage the latest technology to:
- optimize their order management processes
- reduce costs
- provide a better customer experience
Get the Best Order Management System Software
Selecting the right OMS is crucial for businesses looking to streamline their operations. With emerging trends, businesses have the opportunity to leverage the latest technology. They can optimize their order management processes and stay ahead of the curve.
At Synaptech, we understand the importance of selecting the right Order Management Systems for your business. Our team of experts can help. Contact us today to learn more about how we can help you provide a better customer experience.
