Order management systems as customer experience

December 4, 2020
Written by:
Distribted Order Management

Order management is that order-to-cash sales method that sits at the guts of any merchandise-based B2C and B2B company. Simply put, it’s the end-to-end cycle of receiving and process a client order through to fulfillment. Order management isn’t conducted in isolation; it depends on nearly every department in a company: from a client service team to the warehouse employees, the accounting department through to delivery partners.

Once down virtually, order management ensures a business’s advancement runs swimmingly by establishing economic processes to keep it moving forward, maintain client satisfaction, and protect a company’s name.

A complex system

Order management involves a series of interconnected bit points and stakeholders United Nations agency works collaboratively to modify customers to order the correct product for the correct value and receive them at the correct time. The order fulfillment system (as it’s conjointly known) not solely secures that order-to-cash (O2C) processes run swimmingly. However, it conjointly provides businesses the chance to create client profiles and keep track of checklist volume and sales records.

The order management process

The clue to order management involves a series of synced steps, fluid processes, and constant communication to form a fluid order-to-cash flow. The electric sander and the quicker the flow, the additional orders the corporate is in a position to the method, and the faster the business can grow.

Here’s a breakdown of however end-to-end order fulfillment works:

Step one

The process begins once a client places an order, either online, in-store, or over the phone with a client services representative. The customer’s details square measure then keeps, together with order history, the volume of orders, and payment preferences. Lastly, the client order is shipped to the warehouse.

Step two

A warehouse manager then inspects the catalog, and an offer from vendors is noted. If inventory runs low or runs out utterly because of an outsized order, orders are placed to the business department.

Step three

The order is then dispatched to the accounts department, wherever it’s recorded as either money sales or assets. The sale is logged within the ledger, an invoice is generated and sent to the shopper, and the payment is documented.

Step four

A 3PL shipping service (or a company’s LTL) can then deliver the products to the patron, and also the order is consummated.

The challenges of order management

The additional bit points and stakeholders concerned within the order management method, the additional obstacles there square measure to its success. a number of the critical challenges for businesses embody human error and method backlogs, inventory visibility, transportation errors, and poor communication, which may all seriously negate client satisfaction and ultimately negatively impact loyalty.

The solution: An order management system

To ascertain a fast-moving, cost-efficient, and correct order management cycle, each B2C and B2B firms square measure selecting to use a unified and responsive order management system (OMS). The OMS merges directly with a business’s ERP and is ready to figure aboard the human force to get the initial productive and profitable order management cycle doable.

The top six advantages of order management system

An order management system has many key advantages for businesses and visibility at each step of the sales method, time potency, reduced risk of human error, and improved accuracy. Here square measures the highest six advantages to AN OMS:

Automation potency

An OMS operates on automation. An automatic order process system saves labor prices, decreases the chance of human error across invoicing and order knowledge, and frees up time for firms to target growth and client satisfaction. It conjointly will increase knowledge security as there’s less want for manual intervention.

24/7 access

Businesses will access their order management system online from any destination, which suggests they’re ready to method orders remotely and at any time. This ends up in more central knowledge management, higher client service, and another economic order process.

Focus on growth

The mechanization of the order-to-cash system quickly creates a homogenous method from one platform, releasing up company time to gather and analyze knowledge to leverage business intelligence for any growth and tackle any problems.

Inventory management

An order management system‘s period capabilities profit inventory management by distributing knowledge in time relating to things sold-out, returned or changed. This protects firms from over-selling inventory, and yet again, ensures client satisfaction.

A centralized read

The ease of a streamlined order management system provides firms one read of the complicated e-commerce fulfillment scheme and protects against order errors, client discontentment, or lost revenue because of common faults like low inventory, inaccurate invoicing, or unpredicted transportation errors.

Real-time data

Thanks to the period knowledge show of AN OMS, firms square measure ready to react quickly to any problems which will arise, instead of risking client discontentment with errors or delays. It conjointly ensures that product and payment knowledge square measure up to now, giving firms additional insight into their current business.

Why order management system is important?

High volume, high speed, high expectation; the three critical consequences of the increase of e-commerce and client expectation in today’s ‘always on’ society. The recognition of digital and e-commerce implies that customers expect to order no matter what they like, whenever they like, from a plan of action that suits them. In the 2018-19 Digital Transformation Report, we found that ‘the range of companies victimization e-commerce to support their digital transformation has up from seventy-three to 87%’ that the demand for e-commerce fulfillment has ne’er been additional rife. Customers expect a one-click method, and to encourage loyalty and repeat business, firms ought to do as they demand.


Want to grow your business?

Your staircase to
growth is here!

Quick tricks for growth:

  • Reconciliation of overcharges
  • Single inventory dashboard
  • Reduced order processing time
  • Standard and accurate data

Want to know how to do this? Don’t worry!



Make an Enquiry

We value your privacy & take all necessary steps to protect your information. Read More

Subscribe to our blog and stay updated!


By completing this form, I agree to Vinculum’s privacy policy

Inline Feedbacks
View all comments