The use of an order management system can dramatically improve product cycle times, reduce errors in order fulfillment, and lend itself to better inventory management strategies. Supply chain leaders that wish to survive and stay competitive need to understand the limits of legacy systems and how evolving supply chain execution systems through the implementation of an order management system will enable success.

What’s Keeping Retailers in the Dark Ages and Away From Advanced Systems?

While an order management system is not necessarily a new type of software, it still goes much further than the capabilities within legacy systems. Unfortunately, legacy systems also have a direct correlation with an inability to embrace omnichannel supply chains and reap its rewards, such as using brick-and-mortar stores as fulfillment centers and tapping all inventory to move product faster and with less cost. For example, as explained by Shopify:

“The Retail Systems Research survey of more than 500 logistics firms, suppliers and retailers worldwide [found] legacy systems are one of the top factors obstructing omnichannel execution, with 29% of firms naming legacy systems as their top challenge in 2017.”

Ways an Order Management System Helps Retailers Succeed

An order management system is essential to success in retail. Implementation of such a system offers additional benefits, and as explained by Lightwell, an effective order management system should empower retailers with more information and better order fulfillment. Additional benefits include improved inventory management, better order accuracy, and real-time order status reports to improve customer service. Furthermore, a robust system enables returns management, accepts orders regardless of source, routes products based on inventory and destination, and generates actionable data.

Additional benefits, reports Technology Record, of implementation, include:

• More insights through connected, advanced analytics.
• Better picking and packaging between stores.
• Shipping rate brokerage.
• Reduced risk of fraud.
• Less segmentation and isolation of inventory.
• Real-time inventory visibility.
• Real-time inventory stimulations and demand planning integrations.
• Payment processing.
• Advanced ordering capabilities.
• Global trade enablement.
• Scalability.
• Returns management.
• Procurement efficiency.

Tips to Select the Right OMS

Any plan for investing in a new system within your supply chain will naturally seem overwhelming. Supply chain leaders have a mountain of responsibilities, and finding the right system is not an easy task. However, those that follow these tips can work to ensure they have chosen the correct system:

• Benchmark your current operation.
• Create a change management team.
• Shortlist your vendors.
• Send out a request for proposal to chosen vendors.
• Research system options.
• Evaluate all responses for uniqueness, affordability, and functionality.
• Avoid systems that promote wide modifications.
• Work with a supply chain systems consultant, such as Veridian.

Augment Your Supply Chain With an Order Management System Now

Deciding to implement an order management system will improve operational efficiency and further goals for better inventory management. Instead of relying on outdated, legacy systems, supply chain leaders need to start thinking about how using an OMS can work in tandem with other supply chain software and provide value. Implementing any new supply chain execution system is not always cut and dry. It can come with serious complications, and without a careful eye for detail, your time to ROI will succumb to scope creep and grow further out of reach. Instead of risking a delayed ROI and higher total cost of ownership, choose Veridian to help you manage the entire selection and implementation process. Schedule your consultation with Veridian online today.