A cloud-based order management system (OMS) is a powerful and intuitive tool for tracking orders, sales, and inventory as well as streamlining the processes involved in order fulfillment. Learn more about this essential tool and its many benefits to eCommerce businesses.
First off, we need to clarify that an inventory management system is not the same as an order management system. The former is a solution for analyzing sales history and forecasting demand for product and raw materials. On the other hand, the latter is all about the here and now, as it tackles transactions as they happen.
What does an OMS do?
A cloud-based OMS enables eCommerce businesses to track orders for goods and services via a centralized dashboard, which your staff can access anytime, anywhere, on any internet-connected device. In general, it can help you organize orders into a coherent and manageable workflow by:
- Updating your website to reflect when certain items are out of stock
- Automating payment authorizations and integrating these with your shipping services
- Providing reports to customers about their order’s shipping status
- Automatically restocking products and materials once they dip below a certain level
- Automatically processing refunds and returns
- Monitoring your business on mobile/on the go
- Storing data in a more efficient and less costly manner
- Ensuring your data is protected in the event of a disaster
There are dozens of OMS platforms with niche functionalities that may be better for specific business models regardless of the industry. The important thing is that you find a solution that reduces the most tedious organizational tasks for tracking your store’s orders.
What are the benefits of an OMS?
Below are five key advantages of using an OMS:
Fewer errors
Since an OMS allows you to automate various stages of order processing, it eliminates the need to manually enter and update order details. This reduces the risk of error, increasing your eCommerce business’s operational efficiency.
Lower costs
With fewer errors, you can avoid having to rework inaccurate order information, saving you time and effort. This means your business also saves on labor. And because a cloud-based OMS requires virtually no hardware, you can eliminate installation, maintenance, repair, and other associated costs as well.
Better visibility
A cloud-based OMS offers a consolidated view of your orders and inventory in real time, which allows you to stay on top of the entire fulfillment process so you never miss a sale. This also enables you to optimize inventory levels while minimizing surplus.
Not only that, but an OMS gives you better visibility into your business’s processes, so you can easily identify issues and make the necessary adjustments to achieve operational efficiency.
Faster delivery
When a customer places an order, your OMS will choose the warehouse or fulfillment center closest to them as well as the method of fulfillment. A fulfillment request will then be sent automatically to the warehouse so the item can be prepared and shipped out immediately.
Enhanced decision-making
With an OMS, you have all the information you need to make smarter business decisions at the tip of your fingers, from consumer behavior to market trends to product performance.
Improve your eCommerce business’s workflows and profitability with an OMS. If you need help choosing the right OMS platform for your company, give our experts a call today.