- May 5, 2022
- Posted by: DxMinds
- Category: Technology
What is an order management system?
With the growing demand of customer expectations, it has become an quitessential task for every business to meet the expectations of consumer. Today consumers have become very specific in their preferences. For instance, when you want to get a nike shoe of brown color in any ecommerce website, and you won’t get it. There are least chances of shopping from that store.
This is when order management system comes into play. It refers to management of end-to-end cycle of order processing, starting from its reception and ending with the delivery of item to a customer. It has made this task of placing the customer order in a right manner. It has proved beneficial to deal with customer orders. Lets discuss in:
Order management functionality can be followed as:
1. It deals with storing of shipping information of customers. Order tracking by utilizing fulfilment processes.
2. Inventory Management, along with other aspects including location, updating the same when purchases are made.
3. Returns management
4. Information updating on the order and its status.
5. Generating and printing shipping labels, packing tags.
An order management system helps you keep track of your orders, inventory sales as well as the fulfilment, which creates a positive customer experience. The complete process of order management initiates at the moment when a customer places an order on your website to ensure that the order has been fulfilled and deals with the returns and after-sales requirements.
Functions of an order management system:
An order management system produces a seamless flow from entering invoices after sales follow-up. If the software performs well, it will be beneficial to track the order and the chances that the customer will receive the wrong item or experiences.
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1. The placement of order
When a customer places an order through the third party sites, a website or any e-commerce website on phone. During the registration, the customers will enter details in a form, places and confirms the order and makes payment through a digital method.
Since you need to get every required information mandatory. It creates a customer profile and allows the order management system to track their history, the volume of orders, delivery at preferred locations. Once when the payment is done and then the order is sent to the warehouse once the costs are approved.
2. Warehouse Management
When the order arrives at the warehouse, the required items are picked from the stock. The availability of barcode makes this procedure of scanning the item and adding it to the order in a hassle-free manner.
In case, if the item is not available, then a purchase order is automatically placed with the help of order management software. In this situation, the warehouse manager and the customer will receive an alert message regarding the delay in shipment. At the same time, your customer will receive an automatic notification of the delay and the customer service team will also follow the same procedure.
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3. Reconciling the order
The order is sent to the accounting department so that the syncing must automatically takes place with the cloud accounting software, after the order details get uploaded into the A/R ledger. The sale is logged and a receipt is sent to the client. Automating your sales ledger makes the further procedures of auditing, inventory reconciliation and the calculation of taxes altogether.
4. Order shipment
After the order is picked from the warehouse, your packing team will check its accuracy, cross check the barcodes and SKU. Then the order is packed carefully and proceeded for shipment via the third party delivery system. Customer will receive a notice through the order management system that the order has been shipped, tracking number and estimated delivery time. You can track the progress of shipped orders which can prove beneficial in the times of some special requirements, VIP orders.
After the order arrives, the software generates an automatic email to follow up, asking about their reviews and ensuring that they received the accurate items. The email should contain detailed instructions on contacting the customer service, in the times of any issues and asking for the refund if required.
6. Special Order Oversight
OMS is the ability to flag a special order. In case of return replacement, it could be a VIP order which includes a free thank you gift or special coupon. When these orders are placed through the system, the software can flag them with a code, allows you or your customer retention team to personally check the order.
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Benefits of Order Management Software
We will list down the important advantages of Order Management Software:
Automation of processes
As you can see the ecommerce sales is going up, you can imagine how many orders are processed on an average e-commerce store. It requires a tremendous amount of resources and time to process every order in a right manner. OMS steps in and optimizes the order processing by automating a variety of related tasks. With the help of the order management process, the complete process enhances customer satisfaction.
An entrepreneur can access the inventory, order history and other data from any places at any time. It can be really beneficial in specific circumstances and helps you grant business owners undertake the complete responsibility over the complete business.
By keeping the processes in one system, the business owner can get a centralized view of the business. It helps to adjust the complete development strategy, identify the areas of problem and enhance optimization methods.
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Scalability is crucial for any business. An e-commerce platform can function inefficiently with the increase in number of sales channels and warehouses, but the OMS can easily resolve it. The businesses can keep expanding without harming the processes and profitability.
Efficient Inventory Management
The OMS inventory data in real time helps business owners to make better decisions in terms of goods. It helps to prevent the company from overselling or on the other hand stocking many goods. Hence businesses gain immense flexibility in terms of customer’s requirements.
How to select the OMS?
Following are the steps to be followed to select the right OMS:
1. The prior task is to have a discussion with your team about the various order management features and integrations so that you can list down the same.
2. The vital data should be inclusive of your budget , volume , channels and the total number of SKUs.
3. Initiate the search for OMS vendors and start analysing the shortlisted ones.
4. Its always better to search for 2 or 3 vendors who can meet your requirements to meet your OMS requirements and then select from the list.
After analysing the OMS vendors, some of the factors you should look for:
Value for Money– Money is the most expensive OMS tool in the market which defines the ideal solutions for every business needs. Sustainability is one of the biggest factor which defines the selection of the OMS tool in the long run.
Ease of Use-The best part of software is to make your work easier, as right from registration to the setup process, the platform’s user-friendliness is required to make the consumers easy to use.
Scalability- The OMS solution should be scalable with you since you are going to take up and manage more orders over time. It should be flexible enough to make the required transition, without any hassles.
An order management system is a must have for businesses as it saves up a great deal of time and effort at the same time. It understands their customers enables them to cater to their requirements. It acts as a win-win situation for both the businesses and the customers too. It has become the most crucial element in streamlining the processes in a smoother fashion leading to overall progress.
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