An order management system (OMS) is a software platform that a company uses to accurately process data relating to the fulfillment of customers’ orders. In simple words, this platform completes the cycle of receiving specific orders, accurately processing, and finally fulfilling them. It encompasses and streamlines the work employees perform in every department within the company. These include purchase, sales, customer service, warehousing, accounts, and logistics. The successful implementation of a suitable order management system in the company’s IT infrastructure helps to improve workflow. This, in turn, enables the company to provide better services to its customers to enhance its reputation in the market.
Order management system, and how can it streamline business processes?
A suitable order management system can effectively manage the entire business operations of a company. These include processing customers’ orders, handling the call center department, customer relations, inventory analysis, warehouse management, finance, and marketing. The integration of this platform into the IT infrastructure allows the company to conduct its activities in the market smoothly. This helps to improve the cash flow position of the company. It helps the owners and top managerial personnel of the business control the following three processes:
- What the customers shop for?
The company may operate a physical, catalog, or e-commerce storefront in the market. Customers browse through the storefront to know what kind of products the company offers to sell them. Even before these potential buyers make a sale, the order management system showcases the latest inventory to them. The order management system also notifies the company when a customer enters a product item in the shopping cart. The company can offer potential purchaser incentives to complete the sale.
- Processing customers’ orders
Customers may finally decide to place their specific orders via catalog, over the telephone, or online. In this case, the order management software system immediately starts updating the inventory levels. In doing so, it provides the necessary information to the warehouse department. The platform also generates a distinct tracking number for each of these orders to allow customers to monitor their status. The system even provides the company with the latest sales projections after processing the customers’ orders.
- Generating invoices or customers’ receipts
Once the customers pay for their products, the order management software system notifies the accounts department. The platform assists the employees of this department in preparing the necessary invoices or customer receipts. For this, the order management software system provides them with the information they need. Only then can the employees of the accounts department enter the relevant cash receipt entries in the ledgers. This results in an increase in the company’s cash flow.
An order management system helps a company to streamline its customer order fulfillment procedures better. As soon as customers place orders to buy certain products from the company, this platform updates the inventory. Then it begins processing the orders and generates a tracking number for them. This helps the customers monitor the status of their orders at any point in time. When these buyers finally make the necessary payments for their purchases, the system prepares the relevant invoices or customers’ receipts to complete the process.