The OMS Revolution—The Key to Optimised Efficiency in Your Business

Running a small business in today's economic landscape can be tough. The cost of living is rising, supply chain issues are on the rise, and consumers are feeling the pinch. 

Small businesses, too, are grappling with these challenges as we navigate through the aftermath of the pandemic. 

But here's the good news – technology is opening up new avenues for success. 

The key is to pick the right technology that will give you an edge in this competitive and economically challenging environment.

Enter OMS technology – not merely a tool but a catalyst for growth and a surefire way to maximise your return on investment. 

In this blog post, we'll break down why OMS is the key to optimised efficiency in your business. Stay with us as we delve deeper into how OMS can transform your operations and revolutionise the way you run your business.

What is OMS and what function does it fulfil within a company?

In simple terms, an OMS streamlines and manages your business operations. It's a piece of software designed to make life easier for retailers and ecommerce stores by handling and automating the entire order fulfilment process. 

This system acts as the central command centre, bringing all these scattered pieces into one cohesive picture. From order placement to organising fulfilment and managing invoices, the OMS takes care of the entire journey. 

In short, an OMS works behind-the-scenes to bring order to the chaos of managing an E-commerce store. It consolidates data, streamlines processes, and sets the stage for improved customer service and increased profits. 

The True Value of Automated Order Management

In today's retail game, having a scattered, disconnected view of inventory and customer data is a no-go. It's like trying to navigate a maze blindfolded. 

To stay in the race, what you need is effective order management—and that means having a seamless, end-to-end connection between your physical and online channels.

A well-implemented OMS becomes the beating heart of your commerce strategy. This system gives you a central hub for managing orders, keeping tabs on inventory, and ensuring smooth sailing in the world of fulfilment—all across the omni-channel landscape.

Which means an OMS can significantly boost your commerce outlook. It's the key to untangling the web of order management, inventory, and fulfilment, paving the way for a smoother, more responsive supply chain that aligns perfectly with what your customers want.

The Benefits of an Order Management System

Alright, let's break down the perks of having a modern Order Management System (OMS). Here are some of the benefits that OMS can deliver to your company:

1. Enhanced Inventory Precision

An Order Management System (OMS) doesn't only manage the fulfilment of orders, it also gives you tighter inventory management. 

You can optimise stock levels to meet customer demand without drowning in excess. No more missed sales because your products are scattered across different corners—everything is in one neat, consolidated view.

When you're not overstocked or understocked, you're hitting that sweet spot where your products meet demand. That means more cash in your pocket.

2. Streamlined Data Entry

Let's face it—the less data entry, the better. Why? Because every time you manually key in information, you open the door to mistakes. And we all know that errors can be a headache, leading to mix-ups, unhappy customers, and potential financial hiccups.

An OMS acts like a super-efficient secretary, making sure that the information you use for sales and fulfilment is consistent across the board. What does that mean for you? Less time spent typing and less room for those pesky errors to sneak in.

With an OMS, the same info flows seamlessly through all areas of your sales and fulfilment process, leaving you with less typing, less stress, and a lot less room for error.

3. Unparalleled Visibility

With an Order Management System (OMS) in the picture, everyone in your organisation gets access to the same data—which is also being updated in real time. No more guessing games or frantic searches for information—it's all right there, accessible to everyone.

When everyone can access and track order status effortlessly, it's a game-changer. It means smoother internal communication, faster issue resolution, and, most importantly, happier customers.

What's more, an OMS gives your customers the ability to track their order status in real-time. They are able to stay in the loop without having to pick up the phone or send an email. 

Which means your team is always on the same page and your customers are always in the know. 

4. Informed Decision-Making Through Analysis

Knowledge is power. When you can see the trends, understand what's working and what's not, you're not just making decisions—you're making informed decisions.

With an Order Management System (OMS), you get access to a range of dashboards that unlock the secrets buried in your business data so that you can use them to steer your business in the right direction.

In essence, these dashboards become your business compass. They don't just show you sales figures—they unlock the mysteries of sales patterns, track those all-important Key Performance Indicators (KPIs), and even forecast the future—think sales and inventory levels.

What's more, these dashboards are not just available to the bigwigs in the boardroom.  It's about democratising data, making sure everyone, from management to sales staff,  can tap into these insights.

5: Effortless Multi-Channel Management

An OMS opens the door to true Multi-Channel Management, giving you a centralised hub from which to juggle orders from all your online, in-store, and mobile channels. It doesn't matter where the orders are coming from—the OMS has it all under control.

Why does this matter? Because we live in a world where customers want to shop on their terms. Some prefer the ease of online browsing, others love the in-store experience, and then there are those who are all about mobile convenience. An OMS lets you cater to all these preferences without breaking a sweat.

But it's not just about being everywhere—it's about doing it efficiently. The OMS becomes your ever-watchful manager, ensuring that you're not just keeping track of inventory but fulfilling orders accurately and on time. 

This opens up a world of shopping opportunities for your customers. Whether a customer orders online, walks into your store, or checks out your online store on their mobile, you have them covered.

And all the while, your inventory stays in sync, orders get fulfilled on time, and your customers get what they want when they want it.

Seven Drivers for Optimised Efficiency with OMS

From streamlined processes to real-time insights, an OMS is your all-in-one toolkit for taking your business to the next level.

Here are seven key drivers through which an Order Management System (OMS) can transform your business into a well-oiled machine:

1. Revenue Growth From Improved Customer Service

An OMS, with its streamlined operations and real-time inventory visibility, ensures that customers find what they want when they want it. This not only encourages repeat purchases but transforms one-time buyers into loyal patrons.

In this way, an effective Order Management System (OMS) not only boosts customer satisfaction but opens the floodgates to revenue growth. 

A satisfied customer is a loyal customer, and loyal customers bring their friends. In this way, the tech helps you to attract new customers and grow your customer base. 

With accurate, real-time inventory availability visible to both the retailer and the consumer, the online shopping process becomes a breeze. Which means you will see fewer abandoned online shopping carts.

An OMS isn't just about smoothing out the online shopping experience—it works wonders in-store too. With a clear view of available inventory, customers know they can find what they're looking for in-store. This not only increases foot traffic but also provides an opportunity for additional in-store purchases.

Furthermore, because an OMS provides an end-to-end view of inventory, you can now offer personalised propositions to shoppers in real-time.

Limited quantities? Special delivery options? With an OMS, each customer visit becomes a tailored experience.

2. Preventing Order Cancellations

An OMS will keep orders on track and ensure your customers don't hit a dead end due to out-of-stock items.

Because what could be worse than for a customer to browse your online store, find the perfect item, add it to their cart, and then...bam, it's out of stock?

With an effective Order Management System (OMS), this all-too-common catastrophe becomes a thing of the past.

A centralised platform ensures accurate inventory availability is visible during the entire shopping process. No more over-selling products that are out of stock—every item in that virtual cart is ready and waiting.

The key to preventing cancellations is smooth order orchestration. An OMS ensures that every order proceeds according to plan.

It prevents instances of overselling by keeping a tight grip on inventory levels and orchestrating orders with precision. It's your vigilant ally that ensures your customers get what they want without the disappointment of cancellations.

Furthermore, an OMS helps retailers allocate inventory to high-demand locations or channels in near real-time. This dynamic allocation reduces the chances of stockouts, meaning fewer cancellations due to unavailability. Your customers get what they desire when they want it.

3. Reducing Returns

With an OMS, you're able to create a shopping experience so seamless that returns become the exception, not the rule.

The need for returns often arises from delays or dissatisfaction with the product. An effective Order Management System (OMS) becomes your ally in reducing returns by offering faster delivery options. When customers receive what they want promptly, the chances of them sending it back decrease significantly.

What's more, an OMS allows you to provide more convenient delivery options  such as Buy Online Pickup In-Store (BOPIS) or encouraging walk-ins.

When customers can physically pick up their items, they get a firsthand look before making the final decision. This reduces the likelihood of late, damaged, or unwanted products, resulting in fewer returns.

The key to making BOPIS or walk-ins effective is consistent availability. An OMS ensures that customers know they'll get the same level of availability whether they're viewing items online or collecting them in person. This reliability builds trust and confidence, reducing the chances of customers wanting to return products.

4. Gross Margin Improvement

Success in retail isn't just about selling products—it's about selling them at the right price to maximise those margins.

An effective Order Management System (OMS)  doesn't just aim to clear out stock—it does it strategically. No more mindless markdowns. An OMS can use Machine Learning (ML) tools to value items accurately, especially for unseasonal or phased-out products.

It's like having a retail expert at your beck and call that always predicts the best price to ensure maximum sell-through.

Markdowns can eat into your profits, but with ML, you're in control. The OMS analyses data, identifies optimal pricing, and helps you avoid unnecessary markdowns. It's all about selling at the right price point from the get-go.

The goal is not just to sell—it's to sell through efficiently. ML-powered clearances ensure that your products move off the shelves at the optimal price, maximising sell-through. It's a winning strategy that's sure to boost your gross margins.

Furthermore, an OMS adjusts safety stock ahead of a potential markdown. This forward-thinking approach ensures you're not caught off guard, protecting those precious margins.

In short, an OMS doesn't just manage orders—it strategically positions your products to maximise sell-through and improve gross margins.

5. Transportation Efficiency

Transportation efficiency isn't just about getting products from point A to point B—it's about doing it in the most optimised way.

An OMS ensures that products are where they need to be, when they need to be there. This reduces the distance products need to travel, cutting down on transportation expenses. 

Furthermore, the OMS ensures that the right amount of inventory is held in the most logical and appropriate locations. This directly impacts shipments and distribution. No more inefficient routes or unnecessary delays—the OMS streamlines the entire transportation process.

By encouraging BOPIS and strategically managing inventory, an OMS reduces the need for separate transportation of goods to a customer's home. This not only lowers transportation costs but also optimises fulfilment capacities.

6. Optimising Labour Capacity

Great order management isn't just about getting orders out the door as quickly as possible—it's about doing it in a way that maximises your labour efficiency.

Ever find your team overwhelmed with sudden spikes in orders? By accurately forecasting inventory and shipments, an OMS ensures that you know the extent of labour required. This means you're not caught off guard, and your labour resources are used efficiently, reducing the need for last-minute hires or overtime.

With the help of Machine Learning (ML), the OMS reduces split shipments and consolidates shipments. Not only will you save on shipping costs, you will also optimise your labour capacity. 

By streamlining shipments, your team works more efficiently, reducing the need for excessive labour.  When you know what's coming, you can plan your workforce accordingly.

7. Optimal Safety Stock Management

Effective inventory management isn't just about having enough stock—it's about having precisely what you need, where you need it.

An effective Order Management System (OMS),  ensures intelligent exposure to inventory. Whether it's store-only inventory or online search product detail pages (PDP), the system helps reduce the risk of overselling or underselling through each respective channel. 

Safety stock isn't a one-size-fits-all concept. An OMS, adjusts safety stock parameters based on the unique demands of each channel. Whether it's online, in-store, or any other selling channel, the OMS fine-tunes safety stock to perfection.

Peaks and holiday seasons bring unique challenges. An OMS analyses data to understand the peaks and demands of each selling channel. It then adjusts safety stock accordingly, ensuring you're well-prepared for the highs and lows of the market.

In this way, you will always have the right amount of inventory at the right place and time.

Conclusion

Imagine a world where your business operates like a fine-tuned machine—orders flow effortlessly, inventory is managed effortlessly, and customers are delighted. That's the world OMS technology opens up for you.

The benefits of OMS are far-reaching. It's not just about streamlining processes or cutting costs—it's about transforming the way you do business. It's your ticket to improved efficiency, elevated customer service, and ultimately, increased profits. 

By embracing an OMS solution, businesses get unparalleled visibility into their operations, allowing them to make informed decisions at lightning speed. This isn't just a competitive edge—it will keep you ahead of the game.

 Which means an OMS isn't just an option—it's a necessity. It's the tool that optimises processes, slashes costs, and turns satisfied customers into loyal patrons. 

So, whether you're a small player aiming for growth or a seasoned giant looking to stay nimble, an OMS is your ally in the journey towards operational excellence. Ready to transform your business? Embrace OMS and let the journey begin!