Order Management System: the ideal tool for a successful omnichannel strategy

By Axelle Drack

Published: 16 October 2024

In the era of omnichannel commerce, it has become essential to install an Order Management System (OMS).

The growth of e-commerce and digitalization have given rise to new consumer demands, linked to the desire for a fluid, unified shopping experience, whatever the sales channel.

The use of OMS enables retailers to meet these new challenges with greater efficiency and agility, as well as optimising lead times and costs.

Find out exactly what an Order Management System is, how it works, how it perfectly complements an ERP and our top tips for choosing your software.

Let's get started!

See all software Order Management

Definition of an Order Management System

An Order Management System (OMS) is an intelligent tool for optimising stock and order management across all sales channels. Its aim? To deliver the smoothest possible customer experience.

It interconnects with other supply chain solutions (CRM, PIM, ERP, e-commerce site), exchanging data in real time to provide 360° visibility of omnichannel retail activity.

This makes it possible to see at a glance :

stock availability
delivery times
logistics costs
order processing
order tracking, etc.

Equipped with a system for synchronising data flows and cross-analysis between company constraints and customer needs, it can offer the best supply solutions (click & collect, fast delivery, etc.).

🇫🇷 The French translation of order management system is: système de gestion des commandes.

How does an Order Management System work?

An Order Management System acts as the orchestra conductor for your orders, doing everything possible to provide the best possible service to customers and close more sales.

OMS functionalities

Here are the main functions that an order management system can offer:

proposing different delivery options to customers
intelligent choice of the best stock to pick for each order,
recording and centralising orders
Sending order details to warehouses or external service providers,
automatic updating of stock inventories,
order tracking for the customer and customer service,
alerts on stock levels to avoid shortages, etc.

Here is an example of what an OMS dashboard on TradeGecko software might look like:

How does WHO work in practice? Examples of applications

Choosing the most appropriate stock for the order

OMS is capable of providing an appropriate response to an order in real time. Using algorithms and data flows, it can analyse criteria such as the customer's address and product availability in a matter of moments, in order to "pick" the nearest stock for faster delivery.

It can also offer customers different options that they can consider according to their priorities:

preferred delivery method
speed of delivery
price.

👉 It can also handle orders for several products in different warehouses.

For example, it can offer customers :

receive the product available most quickly first, and the second later,
save on delivery costs by having both products delivered in the same parcel, but with a longer lead time, etc.

Helping you make decisions

Its data feeds are invaluable in helping you to make quick, informed decisions.

Indeed, one of the major logistical challenges is to juggle :

satisfying customer demand as quickly as possible
minimising storage costs.

It is therefore possible to configure your OMS according to your needs, with rules that you determine beforehand to help with this type of trade-off.

For example, if the cost of storage is more expensive in a warehouse or shop, you can imagine a set of instructions that determines from which stock the product will be taken in order to optimise the margin, without compromising on on-time delivery.

Netsuite dashboard :

Quickly manage product returns

According to a study by WBR Insight, almost 9 out of 10 consumers consult product return conditions before making a purchasing decision. Returns are a major issue for online retailers, and have become a crucial selling point and an undeniable factor in customer satisfaction.

But managing returns and reinserting products generates significant additional costs, on top of the return costs if they are covered:

new storage costs,
processing costs (restocking, inspection, etc.),
new shipping costs, etc.

The single view of stocks offered by an OMS makes it possible to envisage faster solutions for the consumer and less costly for the company to manage the return to stock. For example, by offering a return to the nearest shop.

The benefits of an Order Management System

The agility resulting from the use of an order management system means that the customer experience can be improved throughout the customer journey, thanks to :

error-free delivery information,
more choice in delivery methods
easier product returns,
visibility of order status, etc.

Differences between OMS and ERP?

Do you already have an ERP system? Then why bother with an order management system? It's a legitimate question.

In reality, these software packages complement each other and meet different needs:

ERP is a planning solution, which, based on an inventory for example, will enable you to anticipate future orders and therefore adapt production and everything else in the supply chain (purchase of raw materials, planning, etc.) accordingly.
whereas an OMS is used to optimise stocks and actions according to the arrival of orders in real time,

If you want to be able to offer different delivery methods, and improve your multi-channel management and product returns, equipping yourself with an OMS will take you to a new level of agility and performance. You can even opt for an ERP with an order management module like Netsuite, which has a native CRM.

Summary of the differences between ERP and OMS :

OMS	ERP
Real-time view of stocks (movements, transits, supplier availability, etc.)	Accounting view of stocks
Real-time optimisation tool	Planning tool
Allows you to adapt	Allows you to anticipate

How do you choose your Order Management System?

Shutterstock

There are a few points to consider when choosing the right OMS software.

Here are the different functions and specific features to take into account depending on your needs:

automation of as many tasks as possible to avoid manual actions that lead to errors and are time-consuming,
multi-channel management of different sales channels, currencies, countries, warehouses and stocks,
business intelligence capable of providing powerful dashboards, exports and data reports to identify areas for improvement,
access to an API that can be used to connect as many software applications as possible in the logistics ecosystem (WMS, ERP, CRM, etc.),
the software's ability to offer new functions and adapt to your changes.

Some essential software

Cegid Retail is a unified retail platform that can be integrated into an omnichannel sales strategy to boost performance, automate management and deliver a smooth, personalised customer experience:
- powerful business intelligence to help you make the right decisions.
- omnichannel order processing,
- stock and cost optimisation.

Channable is a workflow management and automation solution, enabling you to connect your e-commerce site to multiple marketplaces to increase its visibility:
- automatic centralisation of orders from different marketplaces,
- real-time stock updates
- delivery tracking and visibility of order status.

Oracle's Netsuite is a complete software suite for unifying processes, including ERP, CRM, WMS and an order management and optimisation system:
- real-time visibility of sales, stock levels and customers,
- rationalisation and automation of orders for optimised processing,
- transparent, easy and supported returns management.
Yoo Soft is a unified commerce solution with an OMS module for orchestrating orders and unifying stocks. Simplify the omnichannel processes of your retail chain with a 360° view of your stock.