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Order Management System – Features & Benefits

Order Management System – Features & Benefits

An order management system (OMS) supports all the stages in your company’s sales process, from order creation through customer delivery, and it also makes quick work of the logistics challenges inherent in a multichannel world.

A major benefit of an order management system (OMS) is that it provides a unified, centralized system for managing orders from across multiple sales channels like – store, web, call centre, and mobile. Present-day customers look for a unified and simplified buying experience across all those channels, for example, when buying online and picking up in-store (BOPIS).

The biggest purchasers of OMS solutions are the companies that sell directly to end consumers.  Regardless, in any industry companies of all sizes with a supply chain including transportation, health care, food service, automotive and pharmaceuticals can also benefit from a high-quality OMS.

You may leverage the benefits of an OMS to meet those demands smoothly and efficiently.

According to the projection of IHL Group, an analyst firm, it is expected that the market of OMS will grow from $710 billion globally to $1.16 billion by the year 2023 and states that an order management system is a primary system that plans for a unified business to be successful.”

As described by IHL, retail winners, having greater than 10% growth, are 208% more likely to have an OMS in place than crawlers.

Order Management System Process

The order management system process involves every activity engaged in accepting, processing or receiving and fulfilling an order received from a customer via multi sales channel. The first step in this process creating new orders and establishing or updating customer accounts.

Activities related to inventory are the important steps that include checking and maintaining availability, picking, packing and finally shipping. And if you are dealing with point of sale (POS) systems, the process also extends to receiving payment. Order to Cash is another term used to refer to an extended view of the order management process that includes managing customer payments, returns and refunds.

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Benefits of Order Management

Enhanced Efficiency 

An efficient automation helps in managing the task because these systems typically automate the workflow that are exhausting and rigorous for human error. Hence, the organizational process has benefited from decreased labor expenses and manages to target talents and focus on growing and fostering essential customer and vendor relationships.

Promotes Inventory Oversight 

By providing leadership techniques with a bird’s-eye view of the order receiving, order fulfillment, and delivering processes still there is no such guarantee that it could run smoothly all the time, but one can guarantee that without the resources for systematic oversight, it could uncertainty fall short.

Improved Customer Satisfaction

Embrace every advantage as customer expectation is high most of the time, and the correct order management system will make sure there are lesser mistakes and rather better expectations set from purchase till delivery.

Reducing Operational Costs 

A market full of variability try to optimize by streamline, automate, or eliminate rigorous workflow and better detecting trends which means rather more returns.

Larger Scalability 

The order process becomes more fruitful, such software capacity generally promotes in both storage and feature capability once your order volume increases or becomes more complicated.

Order Management System Features

An OMS generally supports five primary areas within the order management process.

Sales channels 

The OMS receives and combines data from every point of sale, including in-store, online, and call centre. Few goods also support orders from multiple global regions and various currencies.

Sales support 

Information and availability about the items are updated in real-time for both your consumers and your manpower, including the customer service team. Omnichannel customer returns and exchanges are supported by the OMS.

Customer records 

This contains contact information and the activity of the customer, including previous orders. That enables a service agent to recognize highly profitable customers and take action accordingly.

Inventory control 

In addition to providing a unified vision of stock, which aids in controlling and tracking stock levels, the OMS includes inventory control algorithms that route orders to suitable warehouses and identify the greatest shipping options. 

An OMS also presents information that is used throughout the management of inventory and fulfilment stages, including picking, packing, shipping and tracking.

Accounting integration 

Records from the order management system flow into your accounting general ledger and subsidiary journals, such as accounts payable and receivable, terminating the need to re-enter information or transfer it in a separate process.

Order Management System Benefits

The decision to implement an OMS software normally leads organizations to check their supply chains for bottlenecks and areas of improvement. This analysis, periodically alone leads to improvements, such as swift fulfilment times. In addition, the benefits that OMS can deliver are:

Strong inventory management 

Better and clear sight into sales supports you enhance inventory levels so that you meet the demand of the customer while minimizing surplus stock level. A collective view keeps you from missing a sale because inventory is in, for example, different locations. All these can boost cash flow as well as enhance the loyalty and satisfaction of customers.

Minimal data entry

As the same data is used across all areas of the sales and fulfilment process, therefore less data entry is used. It means less chance for errors. 

Range of vision

The status of the order can be accessed and tracked by everyone, thus improving customer service, and you can enable consumers to track order status, too. 


A unified view of the dashboards of the order management system can inform decision-making by highlighting patterns of sales, tracking KPIs and forecasting sales.

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