The Ultimate Guide to Modern Order Management Systems (OMS): Best Software for Online Order Management

Order management systems (OMS) have become essential for businesses handling high order volumes across multiple sales channels. This guide will explain what an OMS is, the key benefits, and how to choose the best OMS software for your ecommerce business.

An OMS is software that manages orders from purchase to fulfillment. It streamlines the entire order process by centralizing data, connecting systems, and automating workflows. With an OMS, you can achieve faster order processing, fewer errors, better inventory management, and excellent customer experiences.

What is an Order Management System?

An order management system (OMS) is software that helps manage orders from the time a customer places an order to fulfillment and delivery. An OMS tracks the status of orders, communicates with fulfillment teams, provides visibility into inventory, integrates with accounting software, and more.

OMS software enables businesses to have a centralized view of every order and the entire fulfillment process from a single platform. This improves efficiency, accuracy, and collaboration across teams involved in managing orders.

Benefits of an OMS

Implementing an OMS delivers many benefits:

• Faster order processing and fulfillment

• Lower order errors and reductions in manual work

• Improved inventory accuracy and cost savings

• Omnichannel order management from one system

• Enhanced customer experiences and satisfaction

• Better visibility across order lifecycle

• Tighter integration between systems

• Scalability to support business growth

Types of Order Management Systems

There are a few types of OMS solutions:

• Standalone OMS: Works independently to manage orders across channels. Don't require an ERP.

• Integrated OMS: Offer deep integration with ERPs like NetSuite, SAP, etc.

• Distributed order management systems (DOMS): Manage orders across multiple warehouse/logistics locations.

• Multi-channel order management: Support omnichannel sales across brick-and-mortar, online, mobile etc.

Do You Need an OMS?

Here are some signs your ecommerce business could benefit from implementing an order management system:

• Order volumes are increasing quickly

• Managing orders across multiple sales channels

• Manual order processes are leading to errors and delays

• Poor visibility into inventory availability and order status

• Difficulty tracking performance of omni-channel sales

• Lack of integration between ordering and fulfillment systems

• Too many customer service inquiries about order status 

• Difficulty keeping up with seasonal peaks in order volume

• Overall lack of efficiency within your order-to-cash processes

Must-Have OMS Capabilities

Look for these key features in an order management system:

• Omnichannel order capture and management

• Flexible order routing rules and workflows

• Real-time inventory visibility and order tracking

• Integration with 3PLs, shipping, ERP, and other systems 

• Automated order processing workflows

• Analytics and reporting on orders and performance

• Ability to handle surges in order volumes

• Mobile order management access

• Returns and exchange management

• Scalability to support business growth

How to Choose the Right OMS

Follow these tips for choosing the best OMS for your ecommerce operations:

• Define your requirements and pain points upfront

• Evaluate leading OMS tools with free trials

• Look for ease of integration with other systems

• Understand services and support options

• Consider scalability for peak seasons and growth

• Review analyst and peer reviews and ratings

• Compare costs of solutions against your budget

• Focus on solutions built specifically for ecommerce 

• Prioritize your must-have capabilities and features

• Check for omnichannel order management support

Key Takeaways on Order Management Systems

An OMS provides a centralized platform to optimize the entire order process. Key benefits include:

• Achieve faster order processing and reduced errors

• Gain visibility into inventory availability in real-time

• Lower operational costs through automation

• Deliver excellent customer experiences

• Manage orders from all sales channels in one system

• Integrate order data across your tech stack

• Scale order management as your business grows

With the right OMS, you can streamline order fulfillment, reduce costly mistakes, improve customer satisfaction, and support current and future ecommerce growth. This guide provided an overview of modern OMS solutions and how to select the best one for your needs.