What to Look for When Switching OMS Vendors

Do you ever feel like your business is stuck in the past, while the world around you is racing ahead? Many business owners grapple with the challenge of outdated order management systems (OMS) that prevent them from offering the type of service that modern customers demand.

So ask yourself this question: is your current OMS holding you back? Are you stuck with legacy systems that once felt like the cutting edge but now tie you to the unproductive past? 

Then it's time to make the switch to a different OMS platform. But how do you choose a system that will keep up with the unrelenting pace of modern commerce? 

You don't want to have to make another big tech switch a couple of years down the line. You want to choose the right OMS vendor that will be your business's partner in progress. 

In this article, we will discuss the ten most crucial factors to consider when making the switch to a new OMS vendor. It's time to embrace change, but not just any change – change that aligns with your business goals and future aspirations.

Why Make the Switch?

In the not-so-distant past, the Order Management System (OMS) played a secondary role in the grand scheme of retailers' business strategies. Back then, the spotlight was on optimising selling channels, managing marketplaces, and maintaining a seamless shopping cart synced with inventory and shipments. While the OMS was a vital part of the process, it often lingered in the shadows, overshadowed by the prominence of the shopping cart and Point of Sale (POS) systems.

Fast forward to the present, where the landscape has transformed with a strong emphasis on omnichannel selling. Managing and fulfilling orders from multiple channels has become increasingly challenging. The shift to omnichannel not only retains the hurdles of multichannel selling but adds the complexity of overseeing retail stores and enhancing the online presence in the realm of e-Commerce.

Multichannel selling demands retailers to broaden their horizons, reaching various shopping engines, social media platforms, and online marketplaces. Simultaneously, they must expand their sales reach, monitor sales across all channels, keep a watchful eye on customer orders, and ensure that their multichannel strategy is driving revenue growth. Achieving this ambitious goal requires the support of a robust software platform.

Enter the pivotal decision to switch your OMS vendor. Sticking with outdated systems can hinder your ability to keep pace with the evolving competition. Moreover, expecting a single vendor to encompass every feature to satisfy diverse customer needs is unrealistic. 

Which is why you have to make a strategic decision to switch to OMS vendors — to a vendor that will grow as your business grows and keep up with current business trends.  

Top 10 key areas to consider when shortlisting OMS vendors

Now that the significance of having the right Order Management System (OMS) is clear, the next crucial step is finding the perfect fit for your business. Recognizing that there's no one-size-fits-all solution, businesses being unique entities, the search for an OMS requires careful consideration.

You don't want to tie yourself to technology that will constrain your business's growth potential down the line. You need a system that will expand seamlessly as your operations evolve.

But with numerous OMS offerings from different vendors, where does one begin? What factors should be at the forefront of your considerations when evaluating the options?

Here are some of the questions to consider when looking at different OMS options and vendors for your company:

Question 1: Will it Cover My Existing Workflow?

When diving into the evaluation of potential Order Management System (OMS) vendors, the first key factor to consider is ensuring comprehensive workflow coverage.

 This involves a meticulous examination of your existing workflows across all regions, including error processes. A critical aspect often overlooked is the inclusion of middle and back-office operations, which are equally integral to the overall efficiency.

It's imperative to conduct detailed discussions with shortlisted providers, as different vendors may cover workflows in varying ways or potentially overlook certain aspects. 

By understanding these nuances, you gain clarity on how the system will impact your daily operations. A common oversight is neglecting to consider plans for merging desks or workflows. Therefore, it's essential to confirm that the chosen OMS provides the necessary flexibility to accommodate such strategic changes seamlessly.

Question 2: Will it Integrate with My Current Setup?

When assessing potential OMS vendors, prioritising the ease of integration is key.  A vendor's ability to seamlessly integrate with your existing ecosystem is pivotal for a smooth operational flow.

Look for a vendor that provides an extensive and flexible integration option, enabling swift connectivity with other applications such as reference data and pricing sources. It's crucial to document all the applications that won't be migrating and gain a clear understanding of how the vendor plans to integrate with them. This includes a comprehensive overview of the checks and measures in place to ensure the integrity of data throughout the integration process.

This factor not only accelerates the integration process but also ensures the reliability and consistency of data, fostering a robust foundation for your OMS implementation.

Question 3: Will it Ease My Compliance?

When evaluating OMS vendors, the ability to stay informed and compliant with changing regulations is a non-negotiable factor. 

Given the escalating complexity in this domain, it's crucial to partner with a vendor possessing proven expertise in both regulations and their impact on global workflows.

A reputable vendor should be adept at detailing their experience in navigating recent key regulatory regime changes. This encompasses not only an understanding of the regulations themselves but also a comprehensive grasp of their implications on global workflows. Importantly, the vendor should be able to articulate the level of support they provide to firms during the implementation of regulatory changes.

A vendor with a track record of regulatory acumen not only ensures that your operations align with current standards but also demonstrates a commitment to supporting firms through the intricacies of regulatory implementations.

Question 4: Does the Vendor Have the Expertise? 

The value of expertise stands as a cornerstone in the vendor selection process. 

Opting for a vendor with a seasoned team not only assures technical competence but fosters a genuine partnership, where shared insights and a comprehensive understanding of the product's purpose contribute to a collaborative and mutually beneficial relationship.

Choosing a vendor with a wealth of experience not only ensures technical proficiency but also cultivates a true partnership. This factor underlines the significance of choosing a vendor that not only meets your technical requirements but also aligns with the ethos and objectives of your business.

Question 5: Does the Vendor Align With My Future Growth Plans? 

A vendor aligned with your current business and future growth plans, supported by a robust product strategy and adequate resources, provides the confidence and assurance necessary for a long-term and successful partnership.

This means you have to look at their own strategy and investment plans. It is imperative to ensure that your chosen vendor is well-equipped to support your current business needs and is aligned with your future growth aspirations.

This factor underscores the importance of choosing a vendor committed to continuous improvement and strategic alignment with your evolving business needs.

To establish this alignment, seek transparency from the vendor regarding crucial details. Inquire about the number of resources dedicated to product/engineering and the recent trends in this allocation. Understanding the direction in which their resources are trending provides insights into their commitment to ongoing product development and support.

Additionally, delve into their overall product strategy. This includes examining their plans for asset class coverage, technology stack refreshes, and any other pertinent aspects that contribute to the longevity and adaptability of the OMS. This level of detail ensures that your vendor is not only meeting your current requirements but is also prepared to evolve alongside your business.

Question 6: Is Their Technology Based on a Modular Design?

The adoption of a modular design in your OMS selection offers a strategic advantage. This approach streamlines the migration process, allowing for flexibility in adjusting system components to changing needs.

From a migration standpoint, a modular system allows for a systematic transition, enabling the migration of functions in a phased manner rather than an all-encompassing shift. This approach enhances control and minimises disruptions during the implementation process. Additionally, a modular design empowers you to acquire or scale back specific components of the system as your business needs evolve over time.

A modular design also ensures a pricing model that aligns with the desired level of flexibility. Understanding the pricing model in relation to these modules is key. This clarity ensures that the pricing structure aligns with the modular components, providing the flexibility required to tailor the system precisely to your business requirements.

In short, choosing a modular system sets the stage for a scalable and adaptable OMS that grows seamlessly with your business.

Question 7: How Easy Is Their Migration Process? 

When evaluating OMS vendors, identifying the migration process is a make-or-break factor. A smooth and efficient migration is crucial, as a prolonged and problematic process can incur both financial costs and introduce an unacceptable level of risk while straddling two systems.

So choosing a vendor with a credible migration plan is essential. Look for a vendor who has successfully executed similar plans with clients resembling your business profile. This track record instils confidence in their ability to navigate the complexities of migration without disrupting service.

It's crucial to feel comfortable with the proposed timelines and the vendor's approach to handling issues as they arise during the migration process. Transparent communication and a proactive approach to issue resolution are indicative of a vendor committed to ensuring a seamless transition.

Question 8: Can They Deliver on Their Promises?

When evaluating OMS vendors, the emphasis is on substance over promises. Vendor demonstrations often showcase features that are not yet in production, and it is imperative to discern between what is already built and in use versus what exists solely on a demo platform.

Distinguishing between what is already operational and what is in the development phase, coupled with insights into the expertise of the development team, ensures realistic expectations and timelines. 

Verify the features that are currently operational and being used in real-world scenarios. If a functionality is not yet built, inquire about the expertise of the individuals tasked with its development. Ideally, you want resources with prior experience in building similar functionalities elsewhere. This ensures a level of proficiency and insight that is invaluable in delivering a well-thought-out system within a reasonable timeframe.

Factor this information into any timelines provided for building out new functionalities. Experienced resources play a pivotal role in the execution of development plans, influencing the feasibility and efficiency of incorporating new features into the OMS.

Question 9: What Level of Support Do They Provide? 

Understanding the intricacies of the support model is the final piece in the puzzle when selecting an OMS vendor. This critical consideration ensures a seamless and efficient operational experience over the long term.

Vendors often vary in their service levels. Understanding their support model in detail is paramount. You have to ensure that the vendor not only delivers a robust system but also provides exceptional ongoing support. 

By ensuring that the vendor has the right type of support system in place that will meet your current and future needs, you set the stage for a successful and enduring partnership with a vendor that is committed to your operational success.

Conclusion

In the current marketplace, the OMS has shifted from a supporting role to a central player in the pursuit of omnichannel excellence. The challenges of managing diverse channels, retail stores, and e-Commerce platforms necessitate a modernised OMS. 

The decision to switch vendors is not merely about staying competitive. To survive as a company you have to align with the evolving demands of multichannel and omnichannel selling. 

Which is why it's so crucial to choose the right OMS vendor that will allow you to achieve seamless order management, drive revenue growth, and stay ahead of the retail game.

Set your sights on a system poised for prolonged expansion – an OMS tailored to your future. What you're after is a system that's open, effortlessly flexible, and primed to align with your business requisites for the long haul.

Switching to such a system could well be one of the soundest business moves you ever make, and will safeguard the future of your company.