Why is an order management system important?
There are countless advantages to using an OMS system.
1. Order Accuracy Improvement
Order fulfilment without an OMS is a dangerous business. Manually processing orders with spreadsheets exposes you to human error. Human error from manual process management is the root cause of inventory or fulfilment issues for 62 percent of merchants.
This not only ruins consumer experiences (especially if the wrong product is shipped to the wrong customer), but it also causes logistical difficulties. The number of returns you’ll have to process skyrockets, as does the amount of money you’ll have to spend rectifying orders that are incorrect.
2. Process orders from start to finish faster
While delivery costs are still important to modern customers, the time it takes for a product to move from order to delivery is crucial. When shopping online, 43% of customers expect next-day delivery, which retailers must achieve in order to attain repeat customers.
By verifying stock across all your warehouses, an OMS can streamline the picking and packing process. It locates the closest fulfilment centre with available inventory to the consumer. It sends order information to that location immediately so that the goods can be chosen, packed, and dispatched ASAP.
3. Happy customers are informed customers
Shipping is a sensitive topic for today’s consumers. Customers value more than just the timing of their purchase fulfilment. Customers want to know the status of their order, including its present location and expected delivery date, in 97 percent of cases.
Merchants can use an OMS to assist them in satisfying these requirements. When customers request an update on their order (or return), most platforms will offer built-in tracking sites.
It’s this kind of openness that keeps customers from posting bad reviews all over the internet. TrustPilot reported that 77.4% of all negative reviews are caused by a brand’s lack of communication after the sale.
4. Fulfilment on a global scale
The worldwide ecommerce market is estimated to be worth $4.5 trillion because customers from all over the world can shop at ecommerce stores. Their sole restriction prior to an OMS was the processes required to accept and fulfil overseas orders.
Order management software aids ecommerce enterprises in expanding their global reach. With an OMS, retailers can:
- Accept payment in a variety of currencies for overseas orders.
- Send order details to 3PL partners in each country automatically.
- Reduce shipping timing and costs by routing to the customers nearest warehouse