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What Is OMS Software?

Bradley Taylor

Bradley Taylor

November 30
  •  
4 minute read
oms software diagram

Definition

Order Management System (OMS) software is a solution that enables retailers to automate and manage the entire order fulfillment process from a single platform.

 

Overview

In e-commerce, order management involves all the steps needed to process, track, and fulfill online orders from start to finish. This includes everything from routing orders to fulfillment centers, to updating inventory levels and processing returns.

Without a centralized solution, optimizing the order management process can be difficult. The e-commerce supply chain is an intricate ecosystem requiring the input of several different users including sales reps, marketers, warehouse staff, and accounting teams.

Traditionally, collaboration between these groups has involved extensive manual tasks and has been prone to error as each worked inside a different system.

OMS software allows retailers to simplify the entire order management process by providing a single solution to view and manage customer orders. It is able to eliminate many of the previously manual tasks by automating different steps of the buyer journey including:

  • Accepting orders and payments across sales channels
  • Updating inventory levels across platforms
  • Routing orders to the right warehouse based on the customer's location
  • Sending order details to warehouses and accounting
  • Generating and printing invoices and shipping labels

OMS software seamlessly integrates with other parts of your infrastructure including e-commerce platforms, shipping solutions, CRM platforms, and accounting systems. It comes with a shopping cart database that is used to store valuable information about products, orders, and users in a single place. This helps create a consistent flow of data across all components of your e-commerce infrastructure.

Efficient multi-channel selling

With OMS software, retailers can sell on multiple channels much more efficiently. Orders across channels are centralized in a single system ensuring they are routed properly and all inventory levels are updated in real-time.

Reduced errors in order processing

Collaboration between different departments is easier as having a centralized system removes many of the steps needed to enable these groups to work together. By eliminating these and other manual tasks, OMS software reduces the number of errors in the order management process.

Improved customer experience

OMS software helps retailers provide a better customer experience across all channels. Customers enjoy fewer errors and more transparency in the purchasing process as accurate stock levels prevent selling out of stock products and robust tracking makes it easy to see the status of an order from start to finish. With the streamlined fulfillment process, customers can also benefit from faster deliveries.

 

How OMS Software Works

The first function of OMS software is to keep an accurate record of inventory throughout your supply chain including physical stores, warehouses, and any third party suppliers. This information is presented to customers across all your sales channels, ensuring inventory levels are accurately reflected at all times.

  1. When a customer places an order through any of these sales channels, the OMS stores their information in a customer profile that can be used to track their order history as well as shipping and payment preferences.
  2. After the payment is processed, the OMS uses real-time data to update inventory levels across all platforms. It then generates a receipt and sends it to the customer while also updating your accounting system with details from the sale.
  3. Next, the OMS will use the order details to route the order to the appropriate warehouse based on the available stock and the delivery destination. At the warehouse, the order is picked, packed, and double-checked for accuracy.
  4. In the event that an item is out of stock, the OMS can communicate with suppliers to send additional inventory to the warehouse. If there is a delay in the shipment, the customer can receive an automated notification informing them of the delay.
  5. After the order is packed, it is shipped to the customer via a third-party delivery system. The OMS software will send a confirmation email to the customer with the tracking information.
  6. Once the order arrives, the OMS will send an automatic follow up email ensuring that the order was accurate and to the customer’s satisfaction. This message can also include contact information detailing how to get in touch with customer service if there is an issue.

If a customer decides they want to return an order, the OMS software can quickly process a refund request, passing the information to the appropriate party to get the return process started.

 

Example of OMS Software

A great example of OMS software is Fabric’s OMS. An intuitive dashboard allows you to view inventory across all locations in a single place and you can seamlessly manage orders from multiple channels with real-time updates.

Business users can work more efficiently by automating repetitive tasks such as payment processing, refunds, and delivery. AI-powered insights allow for more data-driven decisions to increase orders and revenue.

OMS also comes with robust APIs that can be used to improve the checkout experience. For example, a customer can use ePOST /api-order/orders/shipments to select their shipping carrier at checkout. Below you can see a sample of the request.

{
 "orderId": "6379-6380-55110",
 "shipments": [
        {
          "shipmentRef": "ref-100",
          "shipmentCarrier": "Fedex",
          "shipmentCarrierUrl": "https://fedex.com",
          "trackingNumber": "2345367890876549",
          "lineItems": [
            {
              "lineItemId": 2,
              "quantity": 1
            }
          ],
          "shipmentStatus": "awaiting",
          "estimatedDeliveryDate": "2019-03-01",
          "shippedDate": "2020-04-05"
        }
      ]
}

 

Key Takeaways

  • OMS software provides a centralized hub for information by combining order, inventory, accounting, and customer data in a single place.
  • OMS software can streamline the fulfillment process by automating tasks and reducing the errors caused by human input.
  • OMS software integrates seamlessly with other parts of your e-commerce infrastructure allowing business users to work together more efficiently.
  • Fabric’s order management system, OMS, provides a single intuitive dashboard for viewing inventory across multiple channels. Users can automate repetitive tasks and use AI-insights for better decision-making. APIs provide additional functionality to help create a frictionless shopping experience.

Bradley Taylor

Bradley Taylor

Bradley Taylor covers e-commerce for Fabric.