Having a disjointed view of inventory and customer data across both physical and online channels is no longer an option for retailers.
Effective order management requires end-to-end connectivity of intuitive, automated solutions that can optimize customer data and maintaining a unified view of inventory across all channels. In short, it’s where retailers need an order management system (OMS), which provides a centralized platform for managing orders, inventory and fulfillment across all sales channels.
Many retailers understand this need but struggle fully grasp what is an OMS and the true value it offers, leading to businesses investing in areas that aren’t a priority, or that won’t yield enough of a return to trigger the next stage of investment.
This blog explores seven key ways an OMS can provide significant value to your business.
1. Revenue growth from improved customer service
It sounds obvious to link order management to ultimate customer satisfaction, but too few consider the direct ways in which this connection can be made. Effective OMS deployment can not only increase customer acquisition rates and repeat purchase levels, but it can also reduce friction in the online shopping process, while increasing foot traffic in-store.
This is achieved through accurate, real-time inventory availability that is visible to both retailer and consumer. With this end-to-end view of what’s available and where, a more personalized proposition of how to fulfill prospective orders can be offered in real time. Notices of limited quantities and options around delivery can make each visit feel entirely bespoke.
2. Preventing cancellations
Through a centralized platform for managing orders, inventory and fulfillment across multiple channels, retailers can offer accurate inventory availability during the shopping process and avoid overselling products that are out of stock.
Moreover, an effective OMS can help retailers improve order orchestration, further reducing instances of overselling. Additionally, the system can help retailers allocate inventory to high-demand locations or channels in near real time, thus reducing cancellations due to stockouts.
3. Streamlining returns
By seamlessly integrating warehouse management, commerce platforms, and dedicated returns management solutions, businesses can use OMS to transform returns from a cost center into a value driver. Combining detailed order data with information about returning stock provides several key advantages:
- Improved inventory control: Real-time visibility into returned inventory allows for more accurate stock management, preventing discrepancies and ensuring accurate stock levels across all channels.
- Faster restocking and resale: Streamlining the returns process enables businesses to quickly process returned items, assess their condition and make them available for resale. This rapid turnaround helps recoup revenue faster and minimizes losses associated with depreciating or obsolete stock.
- Reduced waste: Efficient returns processing minimizes the risk of returned items becoming damaged or lost, reducing waste and contributing to more sustainable business practices.
- Reduced return rates: When customers receive their orders promptly and in good condition, the chances of returns due to late, damaged or unwanted products decrease substantially. Offering faster delivery options and promoting convenient fulfillment methods like Buy Online Pickup In-Store (BOPIS) or in-store pickup significantly reduces the likelihood of returns.
