Choosing an Order Management System: A Quick Guide
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Choosing an Order Management System is a biggie for any business looking to turbocharge their order processing. Having the best order management system in place will simplify everything, make customers happy and give you valuable insights into your business. But with so many to choose from, making the right choice can be daunting.
Choosing the Right Order Management System
Your Business
Before we get into the features and pricing of different order management system solutions, you need to know your business’s specific needs.
Consider the following:
Order Volume: The number of orders your business processes daily will have a big impact on the type of order management system you need. High-volume businesses need robust systems that can handle large transactions without a hiccup.
Integration Requirements: Your order management system should integrate with existing systems such as your Warehouse Management System (WMS), Customer Relationship Management (CRM) software, eCommerce platforms. It should also integrate with accounting software to automate invoice and purchase orders, update sales ledger and sync data with finance and inventory software.
Scalability: As your business grows, your order management system should grow with it. Make sure the system you choose can handle increased order volume and additional features as needed. It should also handle multiple sales channels, and manage inventory tracking and order fulfilment across different sales channels and fulfilment locations.
Know your business’s order management processes, including real-time inventory visibility, order capture and validation, and fulfilment processes. These features together will help you manage orders, inventory and fulfilment processes more efficiently and customer happiness.
What to Look For
When evaluating order management system solutions look for:
Order Tracking and Monitoring: This will allow you to track orders throughout the fulfilment lifecycle, give real-time updates and improve customer communication. It’s essential for capturing, tracking and fulfilling customer orders efficiently.
Inventory Management: A good order management system will have inventory management tools including real-time inventory updates, stock level monitoring and automated reordering.
Shipping and Fulfilment: Look for systems that simplify shipping, consolidate backorders and give detailed fulfilment status reports. Integration with shipping carriers and the ability to print shipping labels from the order management system is also important.
Customer Management and Communication: Robust customer management features will allow you to give timely updates to resolve issues quickly and improve customer happiness.
Reporting and Analytics: Actionable insights from performance data is key to continuous improvement. Make sure the order management system has reporting and analytics tools.
Order Management Process: A defined order management process will improve inventory management and control, forecast stock needs and automate manual tasks like creating purchase orders. Consider different types of order management systems (B2B and cloud-based) and the importance of multichannel and omnichannel order management in today’s market.
Cost
Price is a big consideration when choosing an order management system. While it’s tempting to go for the cheapest, consider the total cost of ownership:
Purchase Price: Find out the cost of the software and if any additional hardware is required.
Implementation Costs: Add in the costs of deployment including configuration, integration and staff training.
Maintenance and Support Fees: Ongoing costs for maintenance, updates and support to avoid surprises later on.
Implementation and Integration
A feature-rich and affordable order management system is no good if it’s hard to implement and integrate with your existing systems. To make the transition smooth:
Vendor Support: Choose a vendor that offers support during and after implementation. This can include training sessions, troubleshooting and regular updates. Order management software helps businesses capture and automate the ordering process, improve customer happiness, reduce errors and prevent stock issues.
User-Friendliness: The system should be easy for your team to use. A complicated interface will lead to errors and decreased productivity.
Compatibility: The order management system should be compatible with your existing tech stack to share data seamlessly and eliminate silos. It’s also important that the system integrates with supply chain management tools to have real-time visibility and streamline processes.
Staff Training and Support
Change can be hard even with a user-friendly order management system. To make the transition smooth, provide full training and support to your staff. Make sure they understand the benefits of an order management system and how to use it. Regular training sessions and a support team that responds will make a big difference in user adoption and happiness.
Demo Datapel’s Dynamic Order Management Solution
Want to see an order management system in action? Book a free trial and personalised demo of Datapel Systems’ order management software. Datapel is a proven Order and Inventory Management System to help you save costs, be more efficient and have total control of your inventory.
End of Story
It’s not easy to choose an order management system, consider your business, features, pricing and implementation. Follow this to make an informed decision and supercharge your order management and business. Choose the right order management system for growing businesses and multiple sales channels.
FAQ’s
How to choose the best order management system?
To choose the best Order Management System (OMS), consider your business needs such as order volume, integration requirements and scalability. Look for features like order tracking, inventory management, shipping and fulfilment, customer management, reporting and analytics. Evaluate total costs, including purchase price, implementation costs and maintenance fees. Make sure the system is easy to implement and integrates with your existing tech stack.
What are the 4 stages of order management?
The 4 stages of order management are:
- Order Capture: Receiving and processing customer orders.
- Order Processing: Validating and managing order details.
- Order Fulfilment: Picking, packing and shipping the order.
- Order Tracking and Reporting: Monitoring order status and analytics.
What does an order management system do?
An Order Management System (OMS) captures and automates the ordering process. It tracks orders, manages inventory, processes payments, handles shipping and provides real-time customer updates. An OMS integrates with systems like Warehouse Management Systems (WMS), Customer Relationship Management (CRM) software and e-commerce platforms to increase operational efficiency and customer happiness.
What are the types of order management?
The types of order management systems are:
- On-Premise OMS: Installed on your own servers.
- Cloud-Based OMS: Hosted in the cloud for scalability and remote access.
- B2B OMS: For business-to-business transactions.
- Multichannel and Omnichannel OMS: Manage orders across multiple sales channels and integrate multiple customer touchpoints.
What is the best order management software?
The best order management software depend on your business needs. Look for order tracking, inventory management, integration with your existing systems and scalability. Consider total costs, user-friendliness and customer support. Cloud-based solutions offer flexibility, on-premise solutions offer more control over your data. There are options to suit every business.
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