What is Order Management Software?

Order management software, also known as the OMS system, is a tool to monitor the lifecycle of an order. Right from the first step when a customer places an order to the final step of order delivery and activation of follow-up services.

Order management software helps track processes such as order entry, order completion, managing inventory, and periodic servicing of the delivered product.

An OMS system benefits both the customer and the business. Business owners can monitor their inventories in real-time to get know-how whether they are properly stocked or not. Customers can check on the availability of a specific product and track its movement until it is delivered.

What constitutes an order management System cycle?

Order management involves a host of processes starting from the point where a customer places their order on a website to the point where they receive their package. Order management cycle can vary for different businesses but on a whole, it incorporates the following steps:

Placing the order

A customer places their order and fills in their details such as delivery address via an automated form. A dedicated sales team checks the details and then confirms the order.

Compliance

After an order has been confirmed, it is processed in the warehouse. An invoice is generated, the order is packed according to company standards and is then shipped to the address entered by the customer.

Managing the inventory

Regular management of the inventory ensures that the company has sufficient stock of products as per the customer’s needs and demands.

Order Management System Features

Purchase order management

Purchase order software aids in creating purchase orders (PO), sending these PO to appropriate suppliers, adjoining purchase orders with supplier invoices and much more.

Work order management

Work order software creates a dedicated platform through which information regarding all work orders can be effectively managed. Such software specializes in creating work orders and keeping a check on the completion of orders across facilities.

E-commerce Online order management

Ecommerce order management systems facilitate customers to track their orders and initiate the return if the delivered good is not satisfactory. For businesses, eCommerce order management systems help in managing inventory and fulfilling orders in the stipulated time.

Sales order management

Sales order management software is responsible for keeping track of sale as well as the inventory status and completion of orders.

Multiple payment options

Customers can choose the most convenient method of payment at the time of checkout. This can either be online payment gateways or cash on delivery.

Fulfillment integration

Suitable for those products in which the seller hires a third-party service to fulfill the order. Fulfillment integration software ensures that the seller can check the status of the order at different stages of fulfillment until it is shipped and delivered.

Consonance with shipping services

Order management software lets sellers integrate different shipping services for enhanced user experience by delivering the order before or on time and at a reduced cost.

Advantages of Order Management System Software

Order management system software has made the online shopping experience hassle-free not only for the customers but also for businesses. Here are some of the unparalleled advantages the OMS system offer for small businesses and big enterprises. 

Improves customer service

Customers can access your website to choose products of their choice, place their orders and reach out to you in the form of queries or feedback.

Empowers sales representatives

Businesses that employ on-field sales rep to boost sales can expand their customer base using order management system software. Sales representatives working in the field can sign on new customers and update their details in the company database using the OMS system 

Inventory management in real time

OMS system ensures that inventory updates can be monitored in real time so as to prevent listing an out of stock item for sale. 

Avoid large paper documentation

Order management software saves you from the trouble of paper processes. The software continually maintains and backs order-related data and also syncs it with various other systems so as to avoid redundancy and increase accuracy. 

Invoices delivered straight in the mailbox

OMS systems email invoices straight to the customer’s inbox, leading to a better user experience and satisfaction. 

Improved CRM

By using an OMS system, a business can solve customer queries on the basis of their purchase history and rectify their issue to the best of their capability. This leads to improved trust in the customer’s mind, hence driving more sales and improves CRM.

Coordination between different departments

One of the better advantages of the OMS system is to build coordination between different departments involved in order fulfillment such as between sales and accounts. Each department is aware of its contribution to the chain and also of the status of the overall work process.

How to choose the Best Order Management System Software

If an order management system software is selected without much research or without testing its functionality, then it can harm the business in the long run. Below we list some of the crucial things to keep in mind when you are selecting an order management system software for your company: 

List down your objectives

This step involves you listing how you want the order management software to function as per your company’s need. This ensures that you are investing in software that actually is compatible with your company’s long-term goals rather than the one which is loaded with features but adds little worth to your business. 

Make note of the following things:

• How many orders do you handle in a month?
• Chosen platforms to sell on or are currently selling
• Maximum budget
• Are you ready to invest time to understand the nuances of the new software?
• If you already are using a software, how different is this new order management software going to be from the previous one?

Reach out to order management system software vendors

After your bucket list is complete, it is time to look out for OMS system vendors that fit the bill perfectly. This part involves the maximum research as you will hardly find a vendor that has all the required features assembled in one software.

If you come across a vendor that offers almost everything, don’t cancel the deal yet as they might be working on the features you want or some other way to incorporate the majority of your demands. Always prepare a list of 5-7 vendors so that you have a sufficient number of options to choose from.

Keep flexibility in budgets

Remember this rule of thumb. An OMS ERP vendor fulfilling all your prerequisites from software will eventually charge you more money. Plus, there might be some last-minute additions you want in the overall framework of the software which will push forward your budget. Be ready to incorporate miscellaneous expenditures while deciding your budget. 

Demos and trials

After selecting the right software, always ask for a free demo or trial so that you can ensure that the software does the task it promises. You can also get to know whether it integrates the several processes involved in your businesses and makes them further efficient.