Functionalities of an OMS
Inventory management and linking of stock locations: An OMS provides accurate inventory management. Stock levels can be set by sales channel and when a purchase, sale or return is made, all sales channels are updated in real time on the new stock. This enables quick decisions on stock moves.
Sales channel integration: The OMS integrates smoothly with various sales channels such as web shops, marketplaces and dropshipment partners. All orders and associated peripheral information are stored centrally.
Order routing and allocation: Orders can be automatically allocated to the most suitable stock location based on rules that you set. This means that orders can also be split into separate shipments enabling automated dropshipment.
Carrier integration: The OMS can communicate directly with shipping carriers, making the shipping process more efficient and fully automated.
Returns and refunds: For orders placed on own webshops, it is possible to execute refunds directly from the OMS. In the case of marketplaces, a return message (whether or not automated) can be sent to the marketplace, which can complete the return.
Central data source: A major advantage is that all data is centrally stored and accessible. Customer service no longer needs to log into multiple platforms, and to perform projections or analysis, there is 1 single source of truth in which all transactional data is stored.
Case studies: successful implementations of OMS
In 2016, ANWR-Garant started with one webshop (Sport2000) to which 100 retail branches were linked. Meanwhile, they have grown to an ecosystem where about 50 sales channels and 200 stock locations are managed from one central platform. That an OMS is only for large parties is a misconception. There are also small(er) companies that successfully use an OMS. For example, we know customers who initially sold through one webshop and in recent years have used the OMS to grow from one to four stock locations.
Benefits of an OMS for growth
Scalability: An OMS provides the ability to quickly add new sales channels and stock locations without the need for extensive customization.
Efficiency: Automation of processes minimizes human error and saves time.
Data-driven decisions: Data collected in the OMS can be used for analysis and making strategic decisions.
Agility: With an OMS, new sales strategies come into the picture such as joining dropshipment parties, becoming a dropshipment provider yourself, selling through marketplaces and using in-store fulfillment.
Conclusion
Expanding into multiple sales channels and inventory locations is a trend, opportunity and challenge. An Order Management System makes this sales strategy accessible by centrally organizing and automating sales processes. Whether you are a small business growing or a major player in the industry, a well-integrated OMS helps in increasing your online sales success.