What is an Order Management System (OMS) and Why Does Your Business Need One?

Did you know that 270.11 million Americans (opens in a new tab) shop online based on a post by Fit Small Business? While the number of online shoppers rises, it's important to streamline operations to retain more buyers.

An order management system (OMS) automates repetitive tasks, letting your employees focus on other tasks. It also reduces the risk of error, saving your brand's reputation while avoiding a lot of product returns and bad reviews.

In this article, we will cover:

• How an order management system works
• How it can improve operations
• The key features of OMS
• The benefits of custom software development

Continue reading to leverage OMS and find a suitable solution for your business.

What Is an Order Management System??

An OMS is a software tool that allows businesses to manage and track customer orders from when they buy up to the delivery. It ensures that all departments in charge of orders work together to meet your customer's needs without mistakes. When using OMS, you can coordinate departments such as:

• Sales
• Inventory management
• Customer service
• Logistics

Companies often use several business efficiency tools during order management. An OMS integrates with customer management and order processing tools to give your staff a unified view of the entire order process.

How Does it Work?

An OMS allows you to connect different stages of order fulfillment in the following flow:

• Order creation
• Inventory management
• Order processing
• Shipping and fulfillment
• Post-sale services

The OMS will capture customer orders from all your channels, including your business website and mobile app.

Afterward, it will check if the ordered items are available by analyzing your inventory management tool. If some items buyers want are out of stock, the OMS will automatically trigger a reorder or alert your staff so you can restock.

Once your systems verify an order, the OMS will process it by following steps such as:

• Issuing an invoice
• Confirming the payment
• Updating your inventory
• Initiating packaging and shipping

Your logistics team will use OMS to improve delivery by keeping packaging, shipping and order tracking running smoothly. Once your buyers get their items, the tool will help you manage returns and refunds while keeping customers updated.

The Benefits of an OMS for Your Business

An order management system will reduce fulfillment errors and improve customer loyalty. It ensures your team doesn't waste much time fixing mistakes and addressing buyers' issues.

According to Exploding Topics, every 3 in 5 businesses (opens in a new tab) use data to improve innovation. Accurate data is crucial because it will influence major decisions and operations. With a reliable OMS, you can integrate your business solutions and ensure you track and gather correct data.

The solution will reduce manual data entry and ensure you make business decisions based on real-time insights.

Other notable benefits of order processing software are:

• Optimized order fulfillment
• Improved customer experiences
• Simplified scaling

Customers love brands that deliver products on time and would buy from a company with a short delivery period over one that makes them wait long. Besides, they are more likely to return if your firm offers easy product tracking and addresses concerns quickly.

An OMS will shorten delivery times by optimizing the order fulfillment process. You can connect it with your route optimization software to establish the best delivery paths and lower shipping costs.

By optimizing your delivery, you will enjoy benefits such as:

• A high number of repeat customers
• A rise in customer referrals
• Better business reviews
• Increased revenue

Managing orders across several sites will become more complex as your brand grows. An OMS scales based on your needs and allows you to manage a high volume of orders without overwhelming your employees. You can easily stay efficient when entering new markets or launching new products.

Streamline Sales Management With an Order Management Solution

Poor data management makes it hard for over 60% of companies (opens in a new tab) to get business insights, based on a study by Worldmetrics.org. Brands that use correct data also grow 35% faster every year when compared to those that use incorrect information.

Optimizing sales with an OMS avoids manual data management and ensures you track sales info. The system will connect with your sales management system to offer accurate data on areas such as:

• Sales performance
• Inventory levels
• Customer preferences
• Search and purchase history

Relying on OMS for sales data management will help you invest in products that boost profit. You can identify fast-moving products and prioritize restocking them to optimize sales. Besides, you will use the system to design marketing ads focusing on fast-selling or highly profitable items.

Advanced Features to Look for in an Order Management System

A suitable OMS should come with features that match your operational needs. For example, it should have a unified dashboard and sync orders in real-time to avoid delays and give customers accurate stock updates.

Your OMS should also offer advanced order processing features like:

• Batch processing
• Order splitting
• Automated order routing

Batch processing allows your solution to fulfill multiple orders while splitting improves delivery by categorizing orders based on location. Automated fulfillment, on the other hand, boosts warehouse operation by routing orders based on factors like:

• Stock availability
• Customer's location
• Shipping preferences

Returns management is another essential feature that improves customer service. Your OMS should allow buyers to initiate returns, print labels, and track the status of returned products. Besides, it should automatically refund them or story credits once you receive the items.

When looking for an OMS, you should also focus on advanced shipping and fulfillment. An ideal tool should have features like:

• Shipping rate comparison
• Integrated shipping solutions
• Real-time tracking

Connecting with shipping carriers will automate label printing and make it easier to track orders. You can also reduce costs for buyers by using service providers with the best rates and customer satisfaction. Going for such advanced shipping features improves trust and transparency.

Your OMS must integrate with several payment processors to improve buyers' flexibility. It should also connect with customer relationship management (opens in a new tab) (CRM) tools and E-commerce solutions.

Non-Technical Essential OMS Features

An OMS should let you customize it to meet special order requirements. You can use it to label items that require special packaging and allow buyers to provide special shipping instructions. An ideal tool must also support role-based access to ensure every employee can access tools matching their role.

Other non-technical features your OMS should have include:

• Reliable customer support
• Comprehensive training for employees
• Smooth implementation process

Losing sensitive customer data can lead to compliance issues and affect your brand's reputation. When looking for an OMS, don't forget to confirm if it encrypts sensitive data to comply with global security standards. Further, verify if it records order changes to improve accountability and tracing.

The Benefits of Custom Software Development

Many tech companies offer OMS, but it's hard to find one that is perfect for your needs. Services like mobile app development or web application development ensure you get a custom solution with all the tools you want.

The most notable benefits include:

• Easier integration with existing systems
• Flexibility
• Better system security
• Improved user experience
• Competitive advantage

Getting custom product design services means your OMS can evolve with your business. A web design and development expert will ensure the software allows you to add new sales channels.

They will integrate additional functionalities to make sure your tool is unique. Such measures give you a competitive advantage and differentiate you in the e-commerce market.

Custom logistics software development may require a high initial investment. But, it gives you value for your money in the long run by avoiding inefficiencies. Such solutions also reduce costly errors and improve your employee's productivity.

When you get a custom OMS, you will also enjoy IT consulting services from your provider. These will benefit your brand in ways such as:

• Strategic business planning
• Better technology investment
• Simplified future-proofing

IT experts can also manage critical business risks such as cyberattacks. They will protect your data and use advanced measures to identify threats before they cause much damage. The specialist will apply security protocols and develop a detailed risk management strategy.

Achieve Full Control With Custom Software Development

Custom OMS and logistic software development give you complete control of your business tools. You can avoid problematic updates by only installing those you need and working with an IT expert to refine each feature.

You may find it hard to improve OMS performance when using off-shelf solutions. If you have a heavy workload, the tool you purchased may fail, leading to low efficiency. Expert IT services boost reliability, giving you access to intuitive user experience features. Such include:

• Advanced search and filtering
• Mobile responsive design
• Efficient customer communication tools
• Easy-to-navigate dashboard
• Impressive product portfolio

By working with an IT specialist, you ensure your OMS meets operational demands without lagging. Further, you get full control over the design and can tailor the tool based on your workload and performance needs.

Get Custom Software Development at Synaptech

A reliable order management system will boost revenues and keep you ahead of competitors. At Synaptech, we create custom software solutions using modern technology. We will help you design a reliable OMS and handle all your IT needs so you can focus on core operations.

Contact us to book a free IT consultation.