Order Management Systems (OMS) are a game-changing tool that empowers retailers by making all stock available across all channels, thanks to a unified inventory, and offering new services by leveraging the store network, like Click & Collect and Reserve & Collect.
Today, we often hear in webinars and conferences about OMS's contribution to enriching the user experience and boosting conversion. It's true. Two major topics that we rarely talk about and which are key in integrating omnichannel for a retailer are both linked to payments.
Simplify the flow architecture to enhance the shopping experience
The first synergy enables the simplification of the flow architecture, given that OMS is the master of the order life cycle once the order has been created. There are a couple of interactions with the payment gateway after this step:
1. Capture process: Retailers want to enhance the shopping journey by capturing funds precisely when an order is ready for collection or shipment. This preemptive step prevents unnecessary customer reimbursements for out-of-stock items. The OMS deftly triggers fund capture based on the transaction ID associated with the order. To enable this process, the payment method must be compliant with delayed settlement.
2. Return engine: In the event of returns, the OMS takes centre stage. It knows the return’s status—whether validated, total, or partial. Armed with this knowledge, it seamlessly triggers reimbursements, ensuring a smooth process for both customers and retailers.
The second synergy lies at the heart of omnichannel implementation. Consider a retailer with a franchise, having implemented Ship from Store:
A new order comes from the e-commerce website, and the OMS assigns it to one of the stores, which will ship the product based on its stock. In this case, depending on the retailer's strategy, the funds corresponding to the order can be fully allocated to the store bank account or can be distributed between the headquarters (which allowed the order to be taken) and the store (which delivered the order).
Fund attribution poses a significant challenge for retailers, and the Order Management System (OMS) can act as a facilitator in executing this task:
1. First level: a detailed report provided by the OMS
The OMS is aware of the entire orchestration process, so it is able to transmit a detailed report (including details about which channel made the sale, which channel prepared the stock, which channel delivered or sent the order, and what tax) for any product sold to the ERP (Enterprise Resource Planning), so that it processes the distribution of funds collected, between headquarters and stores.
2. Second level: real-time communication between the OMS and the payment gateway
The OMS is the master that orchestrates an order and assigns it to a store. In this scope, once the store prepares the order, the OMS is able to communicate in real-time with the payment gateway to attribute the total or partial funds to the store’s bank account.
Conclusion: Enhancing retail with OMS and payment synergies
In the dynamic landscape of retail, Order Management Systems (OMS) play a pivotal role in orchestrating the intricate dance of orders—from placement creation to fulfilment. While much has been said about OMS enriching user experiences and driving conversions, two critical aspects often remain in the shadows: the seamless integration of payment processes and the architectural streamlining they enable.
In multiple use cases, Planet's order manager has the opportunity to interact directly with different payment gateways, enriching the user experience and facilitating retailers' daily lives.
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