Is it Ever Worth Switching OMS Vendors?

If you want to be successful as an online retailer, you have to get your order management right. Which is why retailers are always looking for ways to streamline this process. The goal is to move product through the different sections of the supply chain and out to the customers in as efficient a way possible.

One of the most important ways to improve your order management, is to automate the different workflows involved in fulfilling orders.

This is why so many companies have adopted Order Management System (OMS) software to streamline their order fulfilment processes. This software is specifically designed to boost the efficiency of almost every step of the order fulfilment process.

But OMS is a business tool. And like all tools, they have their uses and their limitations. Not every OMS package on the market is created equal—and no single vendor is able to provide a one-size-fits-all solution to all retailers and logistics companies.

In this article, we will consider when and why it might be time for your company to switch to a different OMS vendor.

It's a tough choice to make—so you have to be sure that you're making the decision to switch for the right reasons. So in this article, we will first look at reasons why you might want to reconsider such a switch. Then we will look at some of the most important reasons that show you that a change in vendor is definitely in order.

Arguments against switching  OMS vendors

Usually companies are highly reluctant to switch their OMS vendors. There are several reasons for their reticence—and why they would rather invest more time and money to make their current system work than adopt an entirely new platform.

Typically, there are three arguments in favour of keeping the current setup afloat:

1. We've already done too much work to customise the current system

When a company has been using a piece of business software for a while, they've probably invested a lot of tech support hours in customising the system to their needs.

Often the company has been tinkering with the system for several years—work which was probably done by personnel that no longer even work for the firm anymore.

So what if all those work hours haven't quite produced the results they were hoping for? All that time and effort that went into massaging their current setup counts for something in the eyes of business owners.

They would hate to give up all the investment for a different system that might not live up to their expectations, either. So "best stick to the devil I know" prevents many companies from making that switch.

2. We've already invested too much in technology integration

It takes a lot of work and more than a few months to fully implement an OMS system in a retail environment.

One of the most important reasons for this long process is that the OMS has to be integrated with the other technology platforms already in use throughout the company.

So, for example, the company might have spent IT support dollars in integrating the OMS with their current inventory management, POS, and accounting platforms.

The result would be a fully integrated, but complex system of tightly wound software platforms. Distangling this mess of protocols and legacy code might seem too much work for some companies to attempt. They might see it as an unacceptable disruption to their daily operations.

Which means it's much easier to try to make the current system work than adopting an entirely different system.

3. It would take too much effort to retrain our current team

Another major barrier to make a switch to a different OMS vendor, is that the current system is already being used right throughout the company. Which means that different business units and teams already know how to operate the system.

Taking the time and effort to retrain all these people to use a different system might seem like too much of a commitment for most companies.

What's more, the team members would already know the tricks and workarounds to make the OMS work for them—even if it doesn't produce optimal results. At least it works to a degree.

When your staff members already know the settings and features of the old problem, they will most probably be reluctant to use an unknown platform—even if it promises to solve many of their daily problems and frustrations.

People are resistant to chance, and this is a major barrier to making this switch.

Arguments in favour of switching  OMS vendors

In this section we will consider a couple reasons why companies are deciding to take the big step of switching from their current OMS implementation to a different vendor's offering.

There are companies making this shift—companies who decide to move against the braking force of inertia and looking at alternative vendors in the market.

Here are the main arguments in favour of ditching your current OMS and seeking out alternate vendors. As you go through these reasons, compare them to your current OMS setup. Do any of these problems apply to your company and your particular technology setup?

1. You're dissatisfied with how the current system works

Firstly, there are several reasons why a company grows dissatisfied with the operation and functionality of their current installation—to the degree that they've become convinced that simply customising or upgrading their package won't solve the problem.

For example, some OMS packages are unable to produce easily digestible reports and graphs of the data that has painstakingly been entered or brought into the system through syncing with your other technology platforms.

This means that it lacks one of the fundamental features that caused you to adopt an OMS in the first place.

One of the biggest problems with an OMS is if it doesn't integrate perfectly with the rest of your technology stack.

The true power of an OMS is only unleashed when you can sync data across platforms and sales channels. When the software sync is dysfunctional, it will result in order processing errors such as the wrong inventory numbers or shipping data being sent around the company. This can have real-world negative consequences for your company.

As a result, your team members won't be able to pass information from the OMS back to the rest of the company. This would include essential information such as inventory numbers, or product prices.

This is a serious flaw and hampers the effectiveness of the OMS software. It also means that none of your customer and order records will ever be truly complete.

For example, it's   a serious problem for a retailer with a fully implemented POS system, if the OMS doesn't integrate with this platform.

A POS system is favoured by many merchants that offer both online shopping and physical store locations. Unfortunately, many OMS platforms don't integrate well with any of the most common POS systems.

This means that data has to be transferred in a roundabout way to the OMS—which defeats the purpose of using an OMS in the first place.

What compounds the problem is that some OMS platforms are so technologically advanced or obtuse, that a proper integration of the software requires technical expertise from the retailer that they just don't have.

An OMS vendor shouldn't expect their customers to have access to developers or skills that are typically beyond the scope of retail IT teams and operations managers. If that's your current situation, you might have to shift to an alternate OMS vendor.

2. You've outgrown your current system

Secondly, many retailers realise that they've outgrown their current system in some way, or they're asking so much of their current setup that it has started to become unstable and untrustworthy.

Sometimes it's only once you start using the OMS technology that you realise that there are a couple of features that are essential in your company that aren't supported by the vendor.

For example, when the retailer wants to expand its operation to a network of stores and multiple warehouse locations, it might find that its OMS is unable to accommodate this expansion.

If you want to expand your footprint as a company, you need software that's able to support multiple store and warehouse locations. If your OMS can't support this feature, you have a serious problem.

3. The OMS Vendor isn't a technology partner

What often happens is that the software that the vendor produces is excellent—it has all the features and integrations that you need in your business setup.

But unfortunately, the vendor doesn't make a good technology partner. Their service is subpar, and they don't know how to work with your company as a team.

Remember that you won't be able to implement and use the software on your own. You will always need support and answers down the line to solve your problems—especially for a piece of software that is as important to your daily operations as an OMS.

If the OMS vendor is unable to partner with you to make the implementation of their software and services work, you will never get the full benefit of their system. You will just be another number to them—not a true partner in forging a shared success.

A red flag here is if different modules or features of the program isn't properly integrated or don't sync data properly. This can be frustrating—especially since these different modules are supposed to all come from the same developer and work seamlessly together.

Incompatible modules from the same vendor shows that the vendor lacks a certain level of competency. It might show that the vendor is outsourcing some of its key development functions to external companies, or that their internal teams don't function and communicate well together.

Do you want a technology partner that is willing to send flawed products out to their customers? And will they even be able to solve these problems in the near future?

4. The OMS Vendor is going out of business

Finally, the tech industry is constantly changing. So what do you do when your  current OMS vendor is going out of business and is closing the platform?

This is, unfortunately, something that can happen to even seemingly successful and stable companies. When that happens, you don't have a choice but to migrate to a different platform.

Deciding to switch OMS vendors

Not all OMS packages suffer from these deficiencies—and not all of these faults would even matter to your company.

When you look at your current OMS packages, consider the benefits that you're getting from the platform. But also consider the problems and frustration that you're experiencing with the software.

Are these problems actual constraints on your company objectives? Will these problems prevent you from achieving the growth and other goals you've set for the company over the next months and years?

If so, you should seriously consider switching OMS vendors.

You should also ensure that any alternate OMS technology doesn't suffer from the same or other faults that will frustrate your company growth and progress.

If you evaluate your current technology platforms correctly and make the right decision whether to remain with your current OMS vendor or not, you will have a clear picture of how to fix your current problems.

You have to decide between either making the current system that you have work, or switching to an alternate vendor and getting the right system for your current and future needs.

Conclusion

The OMS offerings of some vendors will work much better within a certain company and market than others. Which is why you might find yourself in a place where the current OMS you use in your company is no longer able to serve your needs.

It doesn't mean it isn't a fine piece of software—or that the vendor behind the software isn't competent or doesn't provide a good product. It just means that you finally came to the realisation that their OMS offering is just not the right fit for your company.

The software might be good. But if it cannot be implemented or used probably in a particular context, it will never be used to its full potential. And sometimes it's the fault of the OMS system itself—or the vendor who makes that system.

If you do decide to make this shift, you will gain not only new software, but a partner that will be able to refresh your current technology stack.

You will also set your company up to put order management workflows in place that will ensure a bright future for your team and your company as a whole.