Order Management System

what is Order Management System?

The term 'order management system' (OMS) is used to describe a set of integrated tools and technologies that allow businesses to manage orders across all their channels. This includes the sales process, the fulfillment process, and even customer service. Order management systems help businesses automate processes such as inventory tracking, order tracking, invoicing, shipping, and returns. They are also commonly used for product customization, multi-channel order processing, third-party warehouse management, and more. With an OMS in place, businesses can improve efficiency and manage resources better than ever before. In this blog post, we will explore what an Order Management System is and how it can benefit your business

The Benefits of an Order Management System

An order management system (OMS) is a software application that helps businesses manage orders from start to finish. This includes everything from the initial customer purchase to the final delivery of the product.

An OMS can automate and streamline many of the tasks associated with managing orders, which can save businesses time and money. In addition, an OMS can provide visibility into the status of orders and help businesses keep track of their inventory levels.

There are many benefits of using an order management system, including:

  • Improved accuracy: An OMS can help reduce errors by automating many of the tasks involved in processing orders. This can lead to more accurate orders and fewer returns or exchanges.
  • Increased efficiency: An OMS can automate tasks such as generating invoices, issuing purchase orders, and tracking shipments. This can free up employee's time so they can focus on other tasks.
  • Better customer service: An OMS can provide customers with real-time updates on the status of their orders. This transparency can help build trust and loyalty among customers.
  • Reduced costs: An OMS can help businesses save money by reducing inventory levels and improving warehouse management. In addition, an OMS can help businesses take advantage of discounts and promotions offered by suppliers

How to Choose the Right Order Management System

When it comes to choosing an Order Management System (OMS), there are a few things you need to take into account. Here's a quick run-down of what you should consider:

  1. The Size of Your Business - If you're a small business, you might not need all the bells and whistles that come with a more comprehensive OMS. On the other hand, if you're a large enterprise, you'll need an OMS that can handle a high volume of orders and scale with your growth.
  2. Your Business - If you sell exclusively online, you'll need an eCommerce-friendly OMS. If you have brick-and-mortar stores as well, you'll need an OMS that can integrate with POS systems.
  3. Your Shipping Needs - Do you ship internationally? Do you offer same-day shipping? The answers to these questions will help narrow down your choices when it comes to OMS solutions.
  4. Your Budget - Like most things in business, you get what you pay for when it comes to order management systems. That being said, there are some great budget-friendly options out there if price is a major concern for your business.
  5. Your Technology Infrastructure - You'll want to make sure that the OMS you choose is compatible with your existing technology infrastructure (ERP system, CRM system, etc.). Otherwise, you could end up spending a lot of time and money.

The Different Types of Order Management Systems

An order management system (OMS) is a software application that helps businesses manage orders from all channels in a single system. There are different types of order management systems available, each with its own unique capabilities and features. The three main types of order management systems are:

  1. Basic Order Management Systems: A basic OMS offers the essential features and functionality needed to manage orders, including order entry, tracking, and fulfillment. These systems are typically used by small businesses or businesses with simple order management needs.
  2. Advanced Order Management Systems: An advanced OMS provides additional features and functionality beyond what is offered in a basic system. These systems typically include inventory management, pricing optimization, customer relationship management (CRM), and reporting capabilities. Advanced OMSs are used by businesses of all sizes that have complex order management needs.
  3. Enterprise Order Management Systems: An enterprise OMS is the most sophisticated type of system available, offering all of the features and functionality of an advanced OMS plus additional capabilities such as supply chain management (SCM) and warehouse management (WMS). Enterprise OMSs are used by large businesses with very complex order management needs.

How an Order Management System Works

An order management system (OMS) is a computer software system used in a warehouse to track the receipt, storage, and shipment of products and materials. It is also known as a warehouse management system (WMS).

An OMS typically consists of three main components: inventory management, order processing, and shipping.

Inventory Management: The inventory management component of an OMS keeps track of the location and quantity of products and materials in the warehouse. This information is used to generate reports that help managers make decisions about stock levels and product mix.

Order Processing: The order processing component of an OMS handles the receiving, picking, packing, and shipping of orders. It also generates shipping labels and invoices.

Shipping: The shipping component of an OMS manages the transportation of products and materials from the warehouse to the customer. It includes features such as tracking shipments and managing freight costs.

Case Study: Implementing an Order Management System

An order management system (OMS) is a software application that enables retailers to manage inventory and orders from a central location. In addition to tracking inventory levels, an OMS can also be used to process and track customer orders, generate reports, and interface with other business systems, such as accounting and warehouse management.

The decision to implement an OMS is usually driven by the need to improve operational efficiency and visibility, reduce costs, or support growth. For example, a retailer might implement an OMS if it wants to streamline its operations after adding new locations or increasing its product offerings. Or, a retailer might use an OMS to gain visibility into inventory levels across its enterprise so it can make better decisions about ordering and fulfillment.

In most cases, the benefits of an OMS outweigh the costs and implementation challenges. However, it’s important to carefully consider your needs before investing in an OMS. This case study will help you understand the process of implementing an OMS by walking you through the experience of one retailer.


An Order Management System is a powerful tool for businesses of all sizes to streamline the order fulfillment process. With an OMS, you can improve customer experience and reduce operational costs while automating complex processes at scale. It also provides useful insights into your operations that help you optimize future strategies. All in all, an OMS is essential for any business looking to make efficient use of their resources and maximize profits from their sales activities.