What is OMS?
Order Management System (OMS) refers to a digital way to track the order lifecycle. OMS tracks all information, including order placement, inventory levels, Order printing, picking, processing, packing, shipping, and returns. An order management system offers end-to-end transparency to businesses and customers.
Importance of OMS in E-commerce Shipping and Delivery
Order management systems need to be multi-faceted and must cover every dimension of business operations to provide real-time insights into inventory. It covers every process of the supply chain digitally, saving operational costs.
- An effective order management system enhances operational efficiency by reducing manual labor and errors.
- With organized order fulfillment, companies improve customer satisfaction, and brand loyalty and increase overall profit.
- Businesses can easily use OMS to develop customer data and even monitor stock levels and records of sales.
How OMS Works and Its Prerequisites
An Order Management System (OMS) records and monitors all the details and operations involved in fulfilling an order. An efficient OMS involves the six following steps:-
- Order placement
- Order receiving
- Picking of products
- Packing of products
- Shipped orders
- Delivering orders
Use Case With OMS
The moment a customer places an order, the OMS implemented will automatically reflect it on the backend. It will further send the details of the order for receiving it from the warehouse. After managing the picking and packing of products, it helps generate and print labels with the info provided by the customer. Once the order is shipped, the notification is automatically sent to the customer so they can track it from their end. The final delivery order details are further sent to both parties. The OMS notifies the customer service representative to manage complaints as well.