Skip to content

How an Effective Order Management System Improves E-Commerce Effectiveness?

The value of e-commerce is undisputed. By 2019, total value of E-Commerce will exceed $1.5 trillion. In fact, business-to-business e-commerce will be worth $1.1 trillion by 2019. Meanwhile, 56 percent of buyers working in retail establishments will use e-commerce as a primary source of product in 2017, reports Darren Sepanek of Manufacturing Business Technology. As a result, warehouse managers and supply chain centers must have an effective order management system (OMS) in place. Most importantly, an OMS improves e-commerce effectiveness in several key ways.

It Enables Customized Customer Experiences.

An OMS relies on the steady stream of information from consumer actions, ranging from online shopping to social media posts, to create ideal product inventory levels. Furthermore, an OMS must use this information to tailor individual customer experiences that will provide an omnichannel sales experience. In other words, warehouses can predict what consumers and will not buy and encourage product flows.

Greater Level of Customer Satisfaction and Service.

The key to making sure customers keep their online purchases lies in creating a positive, customer-centered experience. Since up to 30 percent of all e-commerce sales are returned, asserts Stacey Rudolph of Business 2 Community, warehouses must ensure unmatched, 100-percent accuracy in all orders. Furthermore, managers need to give customers information about their shipments, and an OMS makes this possible by providing end-to-end visibility and tracking in all stages of product flows. An additional benefit of an effective Order Management System allows for smoother processing and handling of returns, refunds or replacement items.

Effective Order Management System Promotes Competition With Major E-Commerce Companies.

Think about what Amazon offers its customers. People can get practically anything and receive it in ever-shrinking delivery windows. Unfortunately, Amazon’s competitiveness means your company needs to offer discounted, if not free, shipping and a simple, cost-free way to accept returns. In fact, up to 92 percent of consumers will make a repeat purchase with a company if previous returns were easy. However, keeping all this information in mind is only possible when your OMS connects all parties in the transaction and ensures minimal overhead with order fulfillment. As a result, order management can be optimized and automated, giving customers the Amazonesque experience they want through your company.

Simplifies Scalability and Temporary Workers.

Another key feature of an effective Order Management System is scalability. Market trends may change, and new products come out every day. Your company needs to ensure your systems can handle sudden surges in order processing and fulfillment. Furthermore, you cannot hope to retain customers if an order is discovered to be out-of-stock after a customer has paid for it. Therefore, your OMS must integrate current inventory information to customer shopping channels. This will reduce backorders and help encourage repeat purchases.

Integration can also be key in allowing more workers to help with temporary, seasonal changes in demand. For example, bring-your-own-device programs might be a logical solution for companies using smart devices to manage pick tickets. However, an integrated system is essential to using the power of employees’ own devices to your benefit without driving in-house costs upward.

The Big Picture.

An effective Order Management System means successfully integrating and connecting all parts of the supply chain to produce a seamless experience for customers. Since the trend toward e-commerce shows no signs of slowing or stopping, it is in your best interest to invest in an effective OMS today. In addition, it will provide greater accountability and profitability for your company in the digital, online age.