January 14, 2022

Order Management System: The Secret To A Successful Business

The fast-paced world, busy work culture, and hyper-active environment are reasons people choose eCommerce over physical stores. After all, time is money! If it were between physical stores and eCommerce, eCommerce would win the battle. When was the last time you ordered your clothes or food online? So convenient.

Time has changed now that physical stores are getting into virtual space. Convenience is the key for eCommerce, and that makes the business work. A sound, centralized order management system is crucial to any successful online business. Firms selling their product and services directly to the end-users are the significant users of order management systems. The article explains the essential characteristics of an order management system, its benefits, and why it is necessary to run an e-business. 

What is Order Management?

The question might seem confusing if you brush aside the intricate processes involved in it. Does an e-business need one? An Order management system effectively supports the order processing steps starting from the consumer placing the order to the product or services getting delivered or handling the logistic issues. The consumers or B2B buyers expect transparency throughout the process and would like to get posted on every stage of transit updates. For the seller, order fulfillment relies on establishing the brand name among the potential consumers. Also, business continuity is the key. Such factors are taken care of with a possible order management system.

Why Is The Order Management System Important?

For enhanced efficiency

In artificial intelligence and machine learning, automation has entered every industry. The established business sectors deploy automation in the order management systems as they are highly efficient and significantly reduce costs while reducing human error. 

Automated, streamlined, and simplified order management systems are entering the eCommerce sector for enhanced efficiency and accuracy. They are efficient because handling warehouses and stock present in the warehouse, multiple sales channels, and online, physical, and social stores manually or through spreadsheets brings in challenges and data catastrophe. 


As the industry is booming and the demands are rising, a potential order management system is essential to process orders from comprehensive sources and channels. Also, to process orders from various fulfillment centers with the required delivery speed.


To Tackle Challenges

Order processing involves a bundle of challenges in every step; any glitch or mishap could lead to an unhappy customer and business discontinuity. Allocation of the fulfillment center based on inventory and location, balancing the costs incurred for the delivery and speed opted for, notifying the allotted fulfillment center, meeting the customer expectations in handling stocks or lost orders scenarios, issues related to logistics including natural calamities, local delivery issues and so on.


Traditional order management systems are prone to too many errors, as the entry of the order, management of the inventory, multiple hands-offs, too much software under different departments, and manual intervention makes the process intricate and blurs the entire view of the process.

 Order management systems handle the ordering steps efficiently, which includes managing the orders, tracking the customer records, providing higher visibility of the fulfillment inventory. When you have it in stock on your inventory, you can't process the order, especially during peak sales, managing payments and invoices, returns and refunds, customer support, communication, and transparency.

Key Features Of The Order Management System

Although there are several critical features of order management systems, some of them are explained here:

Efficient Handling Of Customer Database

Order management doesn't deal with orders and payments. Business continuity is the key for the business sectors, and therefore efficient management of the customer database is crucial. Protecting the details and managing the customer's previous orders, their preferences, activities are monitored and helping the customers by intimating the back-in-stock products and offers. Personal engagement and efficient management of the preferences keep the customers engaged. People like it when they are specially treated and given attention to their choices and preferences. Therefore efficiently handling customer databases helps to retain the potential customer.

Regular Update On The Sales Support

The order management systems emphasize the product's availability in inventory. The statuses are expected to be communicated to the customers, customer service team, and the sales department. This operation helps in the returns and exchanges as well.

Efficient Inventory Management

Efficiency in stock management reduces wastage or processing duplicate orders and increases the cash flow. Picking the wrong product and shipping to the customer leads to a loss in shipping, wastage of delivery costs, and an unhappy customer.

For any virtual business, irrespective of its size, plenty of business management tools are available in the market. Investing in a potential order management system helps in the efficient management of your customer information and interactions, allowing you to customize and personalize your point of sale system and every other essential operation right in one centralized location. Since an order management system can eliminate several issues related to eCommerce, investing in an effective OMS helps businesses reach heights.

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