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OMS for e-commerce: Optimising your sales
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As e-commerce surges exponentially, retailers are racing to match consumer expectations with cutting-edge technology. At the epicenter of this digital revolution stands the Order Management System (OMS), a game-changing tool that empowers retailers to streamline sales processes by making all stock available across all channels, 24/7.
Let’s delve into the mechanics of an OMS: its core features, the seamless workflow it orchestrates before and after the order, and the distinct advantages it brings to the table. We’ll also illuminate how an OMS can turbocharge e-commerce sales and provide essential insights for savvy investors.
Whether you’re a seasoned retail veteran or a budding entrepreneur, grasping the potential of an OMS can revolutionize your commerce operations. Join us as we unravel the essentials of this Order Management System and discover how it can catapult your online sales to unprecedented heights.
What is an Order Management System?
An OMS is a unified commerce platform that revolutionises the shopping experience and manages the entire order lifecycle—from placement to shopper delivery—while seamlessly serving as the return engine for all your channels.
An OMS relies on three essential principles:
1. Unified stock
At its core lies the concept of unified stock: aggregating inventory data from warehouses, distribution centres, and suppliers. By presenting a cohesive view of stock availability across all channels, you empower shoppers with abundant choices and seize every opportunity. There are three types of unified stock:
- Channel-defined unified stock:
- Imagine having e-commerce websites in different countries, it can be relevant to define different, unified stock for each country.
- Time-driven unified stock:
- Picture this: it’s Christmas, and your physical stores are buzzing like caffeinated elves. But wait! The availability of store associates to fulfill and ship orders varies with the festive frenzy. Fear not! OMS adjusts the unified stock based on the period—whether it’s jingle bells or summer sales.
- Safety stock: The retail safety net:
- Stocks in physical stores are generally reliable (defective items, stolen items). That’s where safety stock could help retailers . OMS lets you configure safety stock globally or for every point of stock in your store
2. Available to promise (ATP)
Now, let’s talk shopper satisfaction. OMS transforms the shopping experience by offering multiple delivery methods: home delivery, pickup points, express clicks, and more—all based on that magical unified stock. And ATP is the heart of shopping experience! Availability and expected date for each delivery method is delivered in real time on product detail and on the cart.
3. Order Orchestration: The Symphony of efficiency
When an order is imported into the OMS, orchestration takes center stage. It orchestrates with unified stock and rules—assigning orders smartly to warehouses like matchmakers at a grand ball. availability, product type, delivery address, time of order, amount of order… or depending on retailers context : prioritisation of integrated stores, capping of order per store,…The automation provided by the OMS significantly reduces the room for errors and delays in order processing and fulfilment. This leads to enhanced accuracy, efficiency, and customer satisfaction.
How does an Order Management System work?
An Order Management System (OMS) propels a seamless shopping experience, a powerful orchestration and an efficiency fulfilment process. Here's a breakdown of the workflow within an OMS:
1. Browse a product
The journey begins when a customer goes to the product detail page and discovers all available delivery methods and related expected dates (availability to promise) before adding item to the cart . Shopper is confident because he knows quickly what the delay is to obtain his product.
2. Shopping cart /checkout
The shopper accesses the cart and discovers the availability to promise for the cart. During the checkout, the shopper chooses their delivery method and pays.
3. Order placement
The OMS springs into action upon order placement, orchestrating the orders to assign to right warehouse while notifying the relevant personnel in real-time. Centralising order information within the OMS grants managers enhanced oversight over order fulfilment, freeing up time for customer engagement.
4. Order preparation
With each new order, the staff manage the pick and pack process of the order. In case of shipping, the system can generate automatic shipping labels. Once the order is prepared, the stock of each item is updated in real time. Should an item be out of stock, the OMS activates in real time and assigns the order to another warehouse. The shopper is notified automatically by the OMS of each change of status of the order: support waiting, in preparation, ready to pick up, ready to be shipped, picked up, shipped. To facilitate the integration, the order management system communicates directly with the payment system to processed automatically to payment depending of the status of the order.
5. Return management.
Where a return or refund is necessary, the OMS facilitates this process, by giving the possibility for a refund and auto-processing refunds while overseeing the return of products to the warehouse. This simplifies returns and elevates the customer experience.
What features does an Order Management System have?
An Order Management System (OMS) is equipped with various features designed to streamline and optimise the order-to-cash process. Here are some key features commonly found in an OMS:
Multi-Channel Management: An OMS compiles data from various transaction channels, such as online platforms, physical stores, and contact centers, facilitating a comprehensive approach to managing orders across different geographical areas and currencies resulting in a seamless, multi-channel retail strategy.
Unified Stock: This feature consolidates inventory from all sources, including warehouses, brick-and-mortar stores, and drop-shippers. The aggregated stock information is made accessible across all sales channels, such as Point of Sale (POS), e-commerce sites, and instant messaging platforms, promoting efficient inventory management.
Click and Collect:
Express C&C: Offers customers the convenience of picking up their purchases within one or two hours from a store, relying on real-time store inventories.
Ship-to-Store C&C: Allows customers to place orders online and collect them at a physical location, with inventory replenishment supported by the unified stock system.
Ship from Store: Enhances delivery efficiency by utilising store inventories to fulfill online orders, shortening delivery times, and potentially reducing shipping costs.
Orchestration Rules: Employ intelligent orchestration algorithms to assign orders to the most suitable fulfillment centers or points, optimising logistics and resource utilisation.
Availability to Promise (ATP): This real-time feature provides accurate availability statuses, presenting all feasible delivery methods for a specific product or cart. It considers various stored data parameters, including stock levels, warehouse locations, delivery methods, and transportation logistics.
Omnichannel Return: Streamlines the return process by enabling customers to return purchases seamlessly, irrespective of the sales channel used for the original transaction.
Customer Service: Offers real-time management of the entire order lifecycle, enhancing customer experience through prompt and efficient service.
Reporting: Facilitates the extraction of comprehensive data regarding the order lifecycle, aiding in the reconciliation of funds among all stakeholders involved in the order management process.
Analytics: Implements real-time tracking of order management performance, utilising live data to improve strategies, identify bottlenecks, and enhance overall efficiency.
How much does an Order Management System cost?
Investing in an Order Management System (OMS) isn’t just a decision—it’s a retail revolution.:
1. Business size
Larger or more complex operations may necessitate a more sophisticated OMS, which can be more expensive. Evaluate the system's scalability to ensure it meets your business needs now and in the future.
Integration and data migration costs can add up. Consider the process of getting the OMS up and running, including any necessary customisation to align with your business processes.
3. Training and support
Take into account the conduct of change of your personal, especially if physical stores are involved in the OMS process
Now, let’s talk Planet OMS
We provide a powerful order management system by making all stock available on any channel and at any time
1. Cross-Channel Consistency – Increase conversion rate
Planet OMS takes care of all channels! Powerful promises, omnichannel services, order orchestration—. Shoppers crave consistency; give 'em a seamless tango across platforms with Planet OMS.
2. Automated order processing - Reduce cancellation in fulfillment process
Planet OMS Automation speeds up order processing, reduces the likelihood of errors, and ensures customers receive their orders promptly. Quick and accurate order fulfilment improves customer satisfaction and encourages repeat purchases.
3. Streamlined returns and exchanges – enhance customer satisfaction
Planet OMS provides an hassle-free return and exchange process retains customer trust and minimises loss from returned merchandise. An efficient returns management process within your OMS can ensure a smooth customer and business experience.
4. Easy integration into your ecosystem – Reduce time and cost for build & run
Planet OMS slides into your tech ecosystem. We facilitate the synchronization of all data with your ecosystem based on API & webhook & data feed Data. We provide native integration with other Planet Products (Payment gateway , Tax free) and native connectors to e-commerce platform (Prestashop, Shopware) It’s like building a rocket ship with LEGO bricks—fast, efficient, and ready for liftoff.
5. Order in store – increase instore revenue
Planet transform the instore experience by providing endless aisle application with our all in one order in store solution, natively connected to our planet OMS and our in-person payment gateway, while connecting to the existing POS solution.