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As an ecommerce manager, inefficient order operations likely cause you headaches – scattered systems, order visibility issues, unhappy customers, and manual workflow chaos.
Believe me, I‘ve been there!
Lucky for you, implementing an order management system (OMS) software can transform fragmented processes into a competitive advantage. This definitive guide explores what to look for in the top solutions to meet your business needs.
What is an Order Management System?
An OMS is technology that centrally manages orders from placement to fulfillment and delivery. It consolidates the entire lifecycle into a single location to coordinate all systems and sales channels.
Without an OMS, your orders get fragmented across separate databases and spreadsheets. This fragmentation makes scaling customer experience and complex fulfillment scenarios nearly impossible.
An industry survey discovered that 89% of retailers say an OMS is critical for business growth. [1] The centralized data and workflows these systems provide lead to:
- Increased sales across channels
- Improved order accuracy
- Faster order processing
- Enhanced visibility that delights customers
Now that you understand the chaos an OMS solves, let‘s explore must-have capabilities…
Key OMS Features and Benefits
Leading order management systems provide a range of functionalities – from core order visibility to advanced automation and analytics.
Here are the most important OMS features:
Centralized Order Tracking
An OMS lets you see all order data across channels in one dashboard – customer details, statuses, fulfillment nodes, inventory impacts, payments, etc. This unified view is absolutely essential.
It also enables critical capabilities like…
Cross-Channel Inventory Syncs
Connecting in-store, online, and marketplace inventory data prevents overselling and provides visibility to support omnichannel fulfillment options.
Exception Handling
Intelligent order routing lets you configure rules to handle scenarios like out-of-stocks, backorders, item substitutions, split shipments, and order changes.
Pick, Pack, & Ship Automation
Streamline warehouse workflows with batch picking tasks, automated packing slips, shipping integrations, and carrier compliance labeling.
Delivery Orchestration
Fulfill orders anywhere by combining in-house inventory, drop shipping, store stock, and 3PLs (third party logistics). Send tracking info and status updates to keep customers informed.
Returns / Refunds Management
Accept returns and automate refunds while adjusting inventory balances across channels – no painful manual reconciliation needed.
Business Intelligence
With custom reports and dashboards tracking KPIs like order cycle times, shipping costs per order, returns rate, top products, channel revenue, etc you gain visibility to optimize operations.
The right OMS accelerates order throughput, delighting shoppers, while optimizing margins through orchestration – that‘s powerful!
Gartner research found retailers report a 21% increase in profit margins after implementing an OMS. [2]
Let‘s compare popular software options on the market…
OMS Software Comparison
While features are important, you need an OMS aligned with your ecommerce model, sizing, budget and integration needs.
I‘ve compiled two comparison tables analyzing differences across top solutions:
OMS Software Comparison #1
| Shopify | Brightpearl | TradeGecko | |
| Cost | Starting at $29/month | Custom quoted | Starting at $79/month |
| Ideal Customer | Shopify merchants | Wholesalers, manufacturers | Small/mid-sized B2C brands |
| Top Features | – Deep Shopify integration – 2500+ app ecosystem |
– Financial tools – Warehouse management |
– Centralized data – Inventory management |
| Scalability | Very strong | Strong | Mid-market |
OMS Software Comparison #2
| SAP | Manhattan | OneView | |
| Cost | Very high licenses | Hourly/monthly/annual | Custom quoted |
| Ideal Customer | Enterprise retailers | Wholesale and retail brands | DTC brands using dropship |
| Top Features | – Extreme scalability – Global order volumes |
– Inventory and fulfillment – Retail and wholesale focused |
– Dropship automation – Workflow efficiency |
| Scalability | Enterprise-grade | Enterprise-capable | Mid-market + |
Reviewing strengths around customer profiles, functionalities, scale needs and budgets clarifies options. Next let‘s explore evaluation criteria further.
Choosing the Right OMS
With a crowded software market, use this framework when assessing solutions:
Integration Capabilities
The OMS must connect your existing ecommerce, ERP, accounting, shipping, and other systems to share data. Review integration availability or open APIs for custom connections.
For example, TradeGecko provides hundreds of pre-built integrations while Shopify allows custom app development.
Manage Multichannel Complexity
If you sell products across multiple online stores, marketplaces like Amazon, and brick-and-mortar – ensure the OMS supports omnichannel visibility and orchestration across these fulfillment nodes.
Scalability Needs
Consider current and 3 year forecasts for order volumes, sales channels, inventory scope, and fulfillment model diversity when defining system requirements. This steers sizing.
Budget
Factor both ongoing SaaS subscription costs + any upfront licensing or implementation fees when calculating total cost of ownership for ROI modeling and budget planning.
Lining up these elements drives OMS suitability for your unique situation.
I recommend listing your "must-haves", talking to 2-3 leading contenders, seeing free demos, and starting trials to validate the ideal match.
The Growth of OMS Adoption
To give you additional confidence in the expanding value of order management systems, let‘s examine adoption forecasts.
Gartner predicts:
- By 2023 75% of retailers will have transitioned to modern, enterprise-grade OMS solutions – up from just 30% in 2018.
- OMS investment continues increasing at over 13% annually through this period.
[3]
[4]
Driving this growth is the need for greater customer experience capabilities and retail digital transformation:
- 76% of customers defect after just one poor delivery experience.
- Best-in-class retailers see 36% higher customer retention.
[5]
[6]
As customer expectations and commerce channels continue proliferating, OMS unifies data and orchestrates flexible fulfillment – delivering convenience while protecting margins.
Key Takeaways
In this comprehensive OMS guide, you learned:
- How an OMS centralizes order management to increase efficiency
- Must-have features from inventory visibility to workflow automation
- How to evaluate top software solutions against your specific needs
- The rapid growth in retailers adopting order management systems
- The business impact of OMS capabilities on customer experience
Rather than allowing order fragmentation to limit your potential, implement an intelligent OMS purpose-built for your expanding commerce ecosystem.
As your trusted advisor, feel free to reach out with any other questions!