What Is Distributed Order Management?

Being familiar with the operation of distributed order management will make it more convenient for you to manage your store’s orders. In today’s competitive retail market, we believe a distributed order management system can help you maintain a sustainable competitive advantage.

If you are struggling with improving your business shipping services, this page will help you learn how to benefit your business with distributed orders.

Distributed Order Management (DOM) is a system that optimizes order execution to ensure that orders arrive on time and at the lowest possible cost. Different from enterprise resource planning (ERP) systems, It allows retailers to maximize order fulfillment. And meet changing demands for the best customer experience.

Advantage

Seamless Multi-channel SellingIf your various sales channels get inventory from a single source, it becomes complicated to sell without DOMS. DOMS can automate, optimize, and coordinate the order fulfillment process. DOMS can track your inventory by sales channel, simplifying management in a clearer way.
Multiple Fulfillment ProcessesThe distributed order management system also allows orders to be split, which reduces shipping and fulfillment costs across every available channel. This allows for a more granular workflow and extensive monitoring of results.
Global VisibilityDistributed order management applications will allow more global inventory visibility. Connect your international warehouse and third-party logistics system to your system, it’s easy for customers to order and receive products from all over the world. And you can also easily handle inventory management.

Challenges

Extended optionsA distributed order management system gives you more options for executing customer orders. While this is very rewarding, it can also be incredibly laborious if you’re not ready to embrace this abundance of options. Too much can lead to paralysis of choices, and even confusion.
To avoid being overwhelmed and help you make a choice, you need to be clear about your goals from the start. Do you want to improve customer satisfaction? Before moving on, set your goals and define any limits.
Separate CompaniesAs the name suggests, distributed order management involves multiple companies working together for the same goal. For example, if another company calculates inventory differently, it’s hard to monitor your inventory. Distributed order management relies on successful collaboration between numerous organizations.
This article describes distributed order management and how it helps your business maximize profits, minimize costs and meet service requirements.

How does Distributed Order Management Work?

Many retailers now gravitate toward a distributed order management system. They use DOM systems for a number of reasons, including:


Synchronize e-commerce platforms and store locations so customers can shop online and pick up their orders in-store.
Consolidate orders from the same customer to consolidate transportation.

Conduct rate shopping among shipping partners to obtain the best price and meet the delivery date.
Provide customers with a faster experience. Same-day delivery is possible if stock is available.

In general, these features enable your customers to better control when and where they buy, help you track their stickiness, and connect these dots each time they decide to buy from different channels.

What are the Components of Distributed Order Management?

Third-Party Logistics


Third-party logistics (3PL) is the process of outsourcing logistics services.

Your third-party logistics solution can cooperate with Honest FulPhilment. One of the most daunting aspects of third-party logistics (3PL) is the hidden fees and complex pricing structure. Honest FulPhilment charges only two charges for 3PL service-Packaging charges and shipping charges. Both charges also apply to all 18 warehouses worldwide.

Dropshipping Fulfillment Models


Through dropshipping, retailers purchase inventory from brands as needed, and then the brands directly send orders to customers. With this model, you can add a product catalog with zero inventory risk and visit more catalogs of wholesalers and brands.

Ship from Store and “BOPIS”

In the first option, customers can buy online and then complete the order fulfillment to send their orders directly from the store to them. The other is where the customer buys online and then picks it up in-store, which is the BOPIS method of buying.

The advantages of these implementations are:
They reduce residential transportation costs while increasing your profit margins and sales potential.
They greatly reduce logistical challenges and return costs: customers feel more comfortable shopping online because they know they can walk directly into the store to return goods if necessary.

Conclusion

Distributed order management ensures that you can provide your customers with a great experience. When you feel your business is struggling, it’s time to adopt distributed order management.

At the company – Honest FulPhilment, they will give you more information you want to know. Honest FulPhilment can help you with order fulfillment, and it has a good third-party logistics service. If you want to grow your dropshipping business, you can contact them and you will enjoy great service.


FAQ about distributed order management

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