What Does an Order Management System Do?

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What does an order management system do?
Matt Allen, Customer Success Manager of Acctivate inventory & order management software discusses the role of order management software in business, why it’s vital, and how it’s changing the eCommerce game.

What Does an Order Management System Do?

Matt Allen, Customer Success Manager of Acctivate Inventory Software answers, "What does an order management system do?"
Matt Allen, Customer Success Manager answers, “What does an order management system do?”

Hey there, fellow commerce enthusiasts! Today, we will explore the workhorse of the business world and answer the question, “What does an order management system do?” An order management system, or OMS for short, is about getting your products to your customer’s doorstep without breaking a sweat.

Think of an order management system as your behind-the-scenes buddy in order processing for all your sales channels. It’s the brain that keeps track of what’s in stock, what’s flying off the shelves, and how to get that trendy gadget into your customer’s hands, pronto. This isn’t your grandma’s way of keeping tabs on sales with a pen and paper. Nope, we’re talking about a slick system that’s got your back, whether you’re selling handmade socks or high-tech drones.

In an age when everyone’s racing to get stuff done yesterday, an order management system keeps your business from turning into a scene from a Wild West movie. You know, chaos, tumbleweeds rolling across empty warehouses—not a good look. With an OMS, you’re the cool-headed sheriff who has everything under control.

Back in the day, “order management” might’ve meant a ledger and much squinting. But now, we’ve got this fantastic digital ally adapting as fast as we can blog about it. So, settle in as we break down what an order management system does, why it’s a business lifesaver, and how it’s changing the eCommerce game one click at a time.

Core Functions of an Order Management System

Let’s roll up our sleeves and put the order management system center stage. If your business were a rock band, your OMS would be the multi-instrumentalist who can play the guitar, drums, and keyboard all at once and make it look easy.

Order Processing – The Frontman

First up, order processing is where the magic happens. You have orders coming in from every direction – online, over the phone, via the sales team, you name it. Your OMS keeps track of every order, putting all the info where it needs to go. It’s the rockstar who makes sure your customers get that “order confirmed” email that makes them do a little happy dance.

Inventory Management – The Backbone

Next, we have inventory management, the backbone of your operation. It’s always in the know about what’s in stock, what’s about to run out, and what’s collecting dust. Need to order more of your best-sellers? Your order management system has already sent the reminder to purchasing, avoiding those awkward “Oops, we’re out of stock” moments.

Fulfillment Coordination – The Maestro

Then there’s the fulfillment coordination. Your order management system ensures that every product finds its way into the correct box, out the door, and on the way to the customer’s doorstep. Whether aligning with warehouses, juggling shipping carriers, or ensuring that the customers know the order status at each step, your OMS is on it.

Returns and Refunds – The Peacekeeper

Let’s not forget that handling returns and refunds is the peacekeeper of the shopping experience. Sometimes, things don’t work out, and that’s okay. Your OMS handles returns like a champ, processing return merchandise authorizations (RMAs) and sorting out refunds so your customers are ready to shop again.

In a nutshell, your order management system keeps the show running smoothly. It’s the one tool in your belt that can turn chaos into harmony, ensuring every customer ends the day with a smile.

Why Your Business Will Thank You for an Order Management System

Here’s the lowdown on the perks of having an OMS as part of your crew:

Customers Get Their Goodies Faster (and they love that!)

With an OMS, the magic starts when someone hits the buy button. The webstore platform hands the information to the order management system, ensuring the order is on track to be picked, packed, and shipped faster than you can say “fast delivery.” It’s all about giving your customers that “wow” moment when their package arrives at the speed of light.

Computer with order management system and order management tasks representing what does an order management system do and its perks for businesses

Say Goodbye to “Whoops” Moments

Humans are awesome, but sometimes, we mess up. We forget things, misplace items, and make errors in our math. That’s cool—we’re only human, right? But an order management system is like that friend who always remembers your birthday—it doesn’t forget. It keeps track of orders with precision, slashing the chances of mistakes and ensuring that the right products hit the road every time.

An OMS Looks to the Future

Have you ever wondered how many purple socks you have in stock? Or if you’re about to run out of those sneakers everyone’s raving about? An OMS monitors your inventory around the clock, 365 days a year, so that you can sleep easily. It tells you what’s hot, what’s not, and when to stock up, making sure you’re always ready for your next big sale.

Insights That Could Give Sherlock a Run for His Money

An OMS doesn’t just handle orders; it’s also a treasure trove of data. It tells you who’s buying what, when they’re buying it, and even predicts what they’ll want next. It’s like having your own detective, making sense of the clues customers leave behind so you can plan your next move.

Scale Up Without a Meltdown

An order management system is built to handle the heat. Whether you’re serving ten customers, hundreds, or even thousands, the OMS scales up smoothly.

One Word: Omnichannel

Today’s shoppers bounce around – online stores, mobile apps on their phone, you name it. An OMS unifies all the orders from all these channels so that no matter where your customers are shopping, the experience is as smooth as if they were standing in front of you.

So, there you have it. Implementing an OMS ensures your business is ready for almost anything. Your customers are happier, your team is less stressed, and your inventory is always on point.

Who Needs an OMS? Spoiler: Probably You

If you’re wondering whether an order management system is right for your business, let’s break it down. It’s for more than just the big-league players with warehouses the size of football fields. Here are the types of businesses that sing love songs about OMS once they get it integrated:

Order process illustrated with forklift, order system and delivery truck representing what does an order management system do for different businesses

E-commerce Startups: The New Kids on the Block

You’ve just launched an online store selling everything from artisanal soaps to the latest gadgets. An order management system handles the nuts and bolts, giving you the time to focus on all the other business and marketing tasks on the back burner.

The Online Empires: Grown-Up E-commerce Sites

Your online store is booming. Orders are pouring in, and your small team is wearing too many hats. An OMS steps in to get your orders sorted, your customers smiling, and your team back to doing what they do best – growing your empire.

The Multi-Channel Mavericks

You’re selling on your website, through marketplaces, to big box chains via EDI, and the sales team also delivers their fair share of orders. An order management system is your central command, consolidating all orders and keeping tabs on all channels so you can dazzle customers with seamless service, no matter where they shop.

The B2B Backbone

Handling bulk orders, complex pricing structures, and corporate clients? An OMS smooths out the kinks, ensuring clients have a professional experience with every order they place.

Subscription Services: The Monthly Surprise Masters

Whether you’re sending out monthly snack boxes or curated clothing selections, an order management system ensures your subscribers get their surprises on time, every time, keeping the mystery and delight in every box.

In the whirlwind world of sales, an order management system is your anchor in the storm. It’s the tool that takes the chaos of clicks, carts, and customers and turns it into a smooth sailing ship

What Does an Order Management System Do? FAQs

What is an Order Management System (OMS)?

An order management system oversees and coordinates everything from when a customer places an order to when they get their purchase, including processing and fulfilling orders, managing inventory, and keeping customers in the loop.

Can an order management system integrate with other systems, like QuickBooks and my eCommerce store?

An order management system integrates seamlessly with QuickBooks and many popular eCommerce platforms and marketplaces.

How will an order management system help me with inventory management?

An OMS alerts you when stock is low, tracks your bestselling items, and makes reordering a breeze.

Can an OMS handle return merchandise authorizations (RMAs)?

An order management system handles returns quickly and efficiently, making the process smooth for you and your customers.

Find Out More!
Learn more about Acctivate Inventory Software by connecting with our product experts.

Call us at 817-870-1311

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