December 21, 2021

What Is A Distributed Order Management System And How To Use It

Although you may not be aware of the term Distributed Order Management (DOM), it is one that you should learn about as soon as possible. Omnichannel retail will gain popularity as the preferred sales strategy as the eCommerce business becomes more customer-centric.

Omnichannel commerce has become a competitive necessity. It enables retailers to understand their clients better and provide a more personalized experience. However, making it possible for clients to buy from everywhere, pick up from wherever, and return anywhere is a logistical problem. It is also essential to make sure clients get their orders on schedule and in full at the lowest feasible price.

What Is Distributed Order Management?


Distributed Order Management (DOM) is a strategy for optimizing fulfillment to come on time and at the lowest possible cost to the client. Distributed order management systems are programs that automate numerous operations, such as order processing, order splitting, delivery, inventory forecasting, restocking, and inventory management, to help synchronize this process and enhance the entire supply chain.

Traditional order management systems (OMS) cannot assist different channels and fulfillment methods because they were developed before omnichannel developed. Instead, they work in silos, linking just one medium to one source of goods. The visibility of inventories throughout the distribution chain is hampered due to this. It's difficult for retailers to make and meet delivery promises and send orders to the best fulfillment locations when they are unaware of their inventory. A distributed order management system was created to make it simpler to handle the increased demand for items due to the industry transition. Distributed order management is a means to unite your organization in this modern generation of industry, as omnichannel retail becomes increasingly complicated.

Purpose Of Distributed Order Management System

A distributed order management system's primary goal is to improve the way your firm processes and maintains client orders and inventories across the board. For businesses who wish to save money while ensuring the stability of their customer's experience, quickly refilling the stock and completing orders is critical.

By integrating the many technologies you use to order different things, distributed order management solutions simplify production decisions. They do this by establishing a central platform that provides a specific view of all of your inventory items. This enables advanced businesses to manage their inventories better and verify that all necessary components are present. It also guarantees that present and future customer demand is satisfied while managing better budget management, inventory levels, distribution, and asset usage.

The difficulty for companies that depend on legacy infrastructures is their simple structure. In the digital era, legacy infrastructures aren't versatile enough for companies. Because they were created at a stage where omnichannel retail was the latest trend, distributed order management systems are designed to handle all particular intricacies of these models without difficulty. Through connections, they give you access to various fulfillment techniques, making it more straightforward to manage all phases of the fulfillment process without increasing too much difficulty to your company.

Improper inventory or budget control might put a company in danger of not fulfilling orders. Profits will slow as a result of being out of items. A distributed order management system helps overcome this challenge. It's considerably simpler to foresee and respond to unexpected circumstances when you have a unified picture of both inventories and suppliers. The company has significantly more control over giving your clients anything they want to manage inventory across different channels.

How Distributed Order Management System Works?

Most retailers are turning towards distributed order management solutions because they are more critical for good inventory management and customer fulfillment than before. There are several reasons they employ DOM systems, including:

  • Connecting eCommerce systems with retail locations to allow people to purchase online and collect in-store
  • Combining orders from the same client makes delivery easy.
  • Rate shopping between shipping partners is a great way to get the most incredible deals while still meeting delivery deadlines.
  • To give an excellent experience to the clients.

These capabilities, when together, provide your consumers greater freedom over their purchases while also allowing you to measure their interaction and make connections if they buy from a new channel every time.

Choosing DOM For Your Business

The reality is that, in today's business world, all businesses should adopt a distributed order management system. In retail management it is very DOM is very common nowadays.

But how can you determine when it is appropriate to employ DOM? It relies on where you are in your company's lifecycle. The retailers who will profit more from a DOM are those that:

  • The more sellers you deal with, the more difficult it is to maintain connections, monitor vendor item information, and figure out how many pieces to purchase. Distributed order management systems may assist in the handling of this data as well as the tracking of how and what time to order providers.
  • The more scattered your company is, the more difficult it is to expand. Suppose you are constantly finding snags in your company because you simply can't get a hold of your statistics. In that case, it is time to investigate the distributed order management system for your firm.
  • The idea of omnichannel revolves upon straightforward connectivity. This experience might be compromised if your software is still not updated. By bringing all of your operations along, distributed order management reinforces this.
  • It might be tough to keep control of what stock you have when you have more than one warehouse. If your business has 3PL warehouses, things get complicated because you're not directly controlling the inventory. DOMs may combine this information, providing you with a clear view of all inventories and a quick way into your 3PL inventory.


Distributed Order Management has the potential to alter a company. Make sure you do not depend on a legacy OMS out of date. Examine the capabilities of current solutions, and your company will be more equipped to improve the client experience. DOM can provide excellent customer service, better stock, and order management and can boost the overall experience of your company and your customers.

Our newsletter

Get great curated articles every week.

Combine sections from Ollie's vast component library and create beautiful, detailed pages.