What Is Order Management? Process, OMS & Examples
Quick answer: Order management is the process of receiving, tracking and fulfilling customer orders from the moment an order is placed until it is delivered and any return is closed: order confirmation, inventory check, picking, packing, shipping and after-sales service. An order management system (OMS) automates this by collecting orders from every sales channel, updating stock levels and routing each order to the right warehouse.
The accurate delivery of an order requires the perfect coordination of each step in the supply chain. An order management system can help companies manage this better. Tracking orders and monitoring inventory helps provide better service, increase efficiency, and reduce losses. This is why it is important for a company to have a good order management system.
In this article we will focus on the order management system and why it is important. In addition, it will cover three popular OMS options. By reading this article, you can gain information and tips on order management to move your business forward more smoothly.
What is Order Management?
Order management in the supply chain means that the customer’s orders can be collected, tracked, executed, and managed using an order management system.
First, receiving an order from a customer. Next, the goods are picked from the warehouse in accordance with the order. After that, the goods are packed. Then, the goods are shipped to the customer’s delivery address. In addition, there is the after-sales service.
Importance of Order Management
Inventory
Having accurate information about stock helps merchants to market their products better. Managers can determine whether items need to be stocked based on changing quantities at any time. In addition, monitoring stock levels prevents the negative effects and increased costs associated with out-of-stock or overstock.
Reducing Errors
The order management system helps merchants to reduce errors when faced with a large number of orders. For example, checking the customer’s address information, the type of product, and so on. This ensures that the goods are delivered accurately and efficiently.
Efficiency
The order management system helps merchants to manage their orders better and reduces the pressure on businesses. This allows more things to be processed in a shorter period of time and increases the efficiency of the whole supply chain.
What is Order Management Process?
1
Receiving Orders
When a customer pays for an order, the business will confirm it and determine the condition of the merchandise. If the item is out of stock, the business either refunds the customer or restocks the item in time and informs the customer of the delay in delivery.
2
Fulfillment
The warehouse receives the order information and processes the order. Through the use of automation and human cooperation, the items will be accurately selected and confirmed in terms of quantity, style, and so on.
3
Packaging
After the accurate selection of goods, the goods will be packaged. By analyzing the size of the goods, the degree of fragility, and whether they are hazardous, find the most suitable packaging tools for the goods. For example, glass is wrapped in bubble wrap, which prevents breakage and reduces damage. To ensure that the goods are delivered intact.
4
Shipping
The company will provide a shipping label on the outer packaging of the merchandise. In addition, find the most suitable transportation vehicle for the goods. After the shipment, the status of the order is promptly returned to the company. The company will track it and inform the customer in a timely manner.
5
After Sales
When a customer is not satisfied with some products, the company will handle the return and refund in a timely manner. For example, companies provide customers with a return label. The company will provide a solution for different cases of after-sales service. In addition, they need to update the products that have more problems.
Here is a company that is committed to providing reliable 3PL services- Honest FulPhilment. It uses automation and systematization to accurately fulfill orders and provides timely feedback on the status of orders. Honest FulPhilment is also focused on providing better after-sales service, with online customer service to solve problems for customers in a timely manner.
What is an Order Management System (OMS)?
The order management system tracks and fulfills customer orders, and provides timely feedback on inventory levels. Moreover, it can provide more information for companies to find order information easily.
The order management system also deals with interfacing with suppliers, collecting information about goods, then packing and shipping them, in addition to providing after-sales service, and so on. But What does an OMS do?
1
Inventory
OMS analyzes inventory data by managing multiple sales channels’ inventory and then updates the corresponding product inventory levels. For example, inventory levels can be changed by channel, region, climate, and so on.
2
Automation
OMS can connect every step of the whole supply chain. The automation of the entire supply chain promotes order fulfillment. OMS can receive confirmed orders faster, assign each order to the right warehouse accurately, and process and ship the package more quickly.
3
Returns
Streamline the refund and return process. OMS can automatically print return labels for customers who return items and track the status of the return. Faster refunds and returns provide better service to customers.
3 Best Order Management Systems (OMS)
Orderhive
Orderhive can provide companies with a complete order history of their customers. This allows companies to better analyze customer preferences and allow them to sell more products.
Orderhive is responsible for order pre-ordering, order fulfillment, product delivery delay, and so on. In addition, a large number of national currencies can be exchanged, providing more convenience. When this article was first written, Orderhive offered a free 15-day trial, after which a fee was charged.
Honest FulPhilment
Honest FulPhilment provides timely and accurate tracking of order information and online customer service. Orders can come in through the Shopify app, WooCommerce REST API, open API or CSV/Excel upload, and Honest FulPhilment works with 18+ overseas 3PL warehouses. They monitor inventory levels in real time and update the number of items in a timely manner.
Brightpearl
Brightpearl makes it easy for companies to manage orders. It is responsible for order fulfillment, shipping, and so on. For repeat orders, it will start the automation function, which greatly reduces stress. In addition, it makes sales reports for the company by analyzing the data. At the time of writing, Brightpearl did not offer a free trial.
Conclusion
Managing orders in the supply chain ensures that orders are delivered accurately and on time. In addition, it reduces shortages and errors and also increases efficiency. So having a good order management system is important.
Honest FulPhilment has a reliable order management system. No matter where you are, Honest FulPhilment has very competitive prices, so please make your request and we will be very happy to serve you. Contact us now!
FAQ
What is order management?
Order management is the process of receiving, tracking and fulfilling customer orders, from the moment an order is placed until it is delivered and any return or refund is completed. It connects sales channels, inventory, warehouse and shipping.
What are the steps in the order management process?
The main steps are receiving and confirming the order, checking inventory, picking the items, packing them, shipping with a tracking number, and after-sales service such as returns and refunds.
What is an order management system (OMS)?
An order management system is software that collects orders from all sales channels in one place, updates inventory levels, routes each order to the right warehouse, sends shipping and tracking updates, and handles returns.
Why is order management important?
Good order management keeps stock levels accurate, reduces mistakes such as wrong items or addresses, speeds up fulfillment and keeps customers informed, which lowers costs and improves customer satisfaction.
What is the difference between order management and inventory management?
Order management follows each customer order from purchase to delivery. Inventory management tracks how much stock you have, where it is and when to reorder. An OMS uses inventory data to decide whether and from where an order can be shipped.