eCommerce Order Management System (OMS) Explained

In the big, bustling business world of eCommerce, having management systems is necessary. To be specific, an eCommerce order management system (OMS). This article explains what it is, how it works, and the various systems to boost your operations.  

What is an eCommerce Order Management System? 

This a software system that processes an order, from buying to delivery. It tracks data in order fulfillment journeys for better tracing and monitoring. Its main function is to streamline business operations and offer a coordination solution. 

An order management system eCommerce integrates data during each order processing stage. In it, there are key features that make a difference.  
 
These include management features, such as: 

Customer Management: combines customer information and order history. 

Inventory Management: provides real-time inventory updates across many locations. 

Order Processing and Management: automates the entire order lifecycle. 

Return Management: automates the returns process and tracks returned items. 

 
They also include integration features and more, such as: 

Multi-channel Integration: funnels and manages orders from sales channels into a single system. 

Reporting and Analytics: gives sales trends and performance insights. 

Scalability: adjusts for growing business and larger order volumes. 

Security and Compliance: protects sensitive data and ensures safe transactions. 

Shipping and Fulfillment Integration: connects with shipping carriers and third-party logistics. 

An OMS is important in eCommerce as online transactions can add up in volume and complexity, fast. OMS helps to capture and process orders, synchronize inventory, and integrate phases. The system aids business operations and creates a better order management experience.   

As soon as a customer submits an order, OMS gets to work. It captures key details and information, and checks payment. Next, it cross-checks the order with stock, updates inventory, and confirms the order.  

Synchronization is vital for businesses juggling sales platforms, channels, and storage sites. An OMS helps with real-time inventory updates. Stock is better managed and enables smooth sales.  

This is where the action happens – picking, packing, and shipping. An OMS makes arrangements between the warehouse or fulfillment centers and transport carriers. Special details like documentation, labels, and shipment tracking, get handled in the system.  

An OMS provides so many benefits for an eCommerce business. It reduces errors, improves customer experience, and makes for a well-run operation. This tool combines and simplifies tasks, making for better control and reliability.  

By automating order processing, the chances of manual errors get bypassed. This allows for better order entry, inventory tracking, and shipping phases. Orders are more likely to be correct and arrive at the right time.    

Better systems make for better transparency. Real-time updates keep the order pipeline flowing, from order status to stock counts. There are no surprises or disappointments, keeping both teams and customers looped in. 

Complicated and overwhelming eCommerce operations now meld into a simple system. Teams refer to this software's informative dashboards for updates. Plus, it sends out alerts on order capture, stock levels, and fulfillment. OMS yields for better unified, cohesive system.   

Types of eCommerce Order Management Systems 

Depending on your needs or preferences, you can choose the best OMS based on solution type. These come as cloud-based, on-premise, or hybrid systems. Each has appeal and some elements to consider as an eCommerce business. 

This option hosts the OMS online, where service providers manage it. As such, it offers regular updates, is scalable, and affordable. This is ideal for small to mid-size operations that have stable internet connections. 

Having an on-premise OMS means better control and tailoring. Plus, they merge with any pre-existing systems. These are better for large businesses able to manage and maintain the software and setup. 

This is a solution that melds cloud and on-site systems. While it is adaptable thanks to being cloud-based, certain functions need on-site handling. These could be security, compliance, IT policies, or other custom requirements. 

Integrating OMS with Other eCommerce Systems 

When introducing your OMS systems to existing eCommerce platforms, also consider integration. The main integrations involve ERP, CRM, and online marketplaces. Each contributes to streamlining parts of a holistic eCommerce system. 

An enterprise resource planning (ERP) integration to an OMS helps unify business operations. The type of data handled here ranges from financial to human resources, supply chain, and more. It aids teams to have a better overview for making informed decisions. 

A customer relationship management (CRM) integration to your OMS assists with customer matters. It compiles everything from customer interactions to past orders. The result? Tailored marketing and better shopper support. 

This particular integration works to link OMS to online platforms. Popular marketplaces include Amazon, eBay, Etsy, and other major marts. This funnels many order streams into a central system for control and tracking.  

Choosing the Right OMS for Your eCommerce Business 

Selecting the best OMS system for your needs starts by factoring in three main focuses. First, assess your business needs, the system’s scalability, and financial considerations. 

Begin by considering your business needs for optimal operations. Different aspects include assessing your: 

Sales channels (website, physical stores, or marketplaces)  

Fulfillment process (from warehousing to picking, packing, and delivery) 

Using these points, you can gauge your needs and identify what OMS may serve you best.  

This is where the question of capacity gets raised. Consider accommodating higher order volumes and adding new products, sales channels, or markets. Your business will need the right OMS support to allow it to adapt with ease. 

Review your available funds, budget requirements, and expected return on investment. Then, factor in the cost of the OMS (setup, subscription, and maintenance fees). This will provide better insight into what solution is workable within your scope. 

Implementing an OMS in Your eCommerce Operations 

Adding an OMS needs a few key phases for successful implementation. Start by highlighting action plan steps, preparing for potential challenges, and holding trainings. Following these crucial stages will lead your team to smooth sailing with OMS.     

There are four main steps to kick off successful OMS integration. These steps are:  

Planning and Preparation: Start by considering workflows and map them. Spot where you need to integrate, then decide your intentions for the new system.  

Data Migration: This is where all your data gets collected and moved over. Archived material like order history, current inventory levels and product information needs relocating. 

System Configuration: Now, tailor the OMS to the necessary processes. Start with workflows, assign user roles, and then add in integrations (ERP, CRM, shipping carriers, etc.). 

Testing and Validation: Check functionality and comb through the system for any issues.     

While you can plan for each step, there are some challenges to expect. Possible issues for order management in eCommerce can include: 

Integration Flaws: merging systems requires IT help and careful testing. 

Data Inaccuracy: check all data and use consistent data audits to avoid disruptions. 

Get complete support to assist your business with professional eCommerce fulfilment.  

Complete your OMS transition by supporting your staff to feel ready and comfortable. They deserve and need essential training and plentiful resources and support. Provide a space for feedback. Designing a mindful adoption approach uplifts the team and ensures OMS success.

eCommerce Order Management System (OMS)

Dive into the nuances of warehousing vs storage. Oplog explains key differences, helping you choose the right solution for your business needs.

Warehousing and Storage | Is There a Difference? | Oplog

What is warehousing and storage? Though warehousing and storage describe similar concepts, they refer to unique facility setups. Each facility offers a set of benefits that suit certain needs. In this guide, we explain what is warehousing and storage to help you determine the best solution for your business. 

Warehousing refers to the storage of goods in a warehouse. This system facilitates goods distribution, sale, or manufacturing. This includes inventory movement to and from the warehouse, goods tracking, and inventory. While warehousing includes a storage aspect, it also involves industrial accommodations and services.  

Warehousing caters to holding more large-scale goods with operational solutions. It presents organized, inclusive services for wholesale, manufacturing, export, retail, and transport businesses.   

It is an ideal solution for meeting needs, such as: 

Storage: A temporary holding space for goods awaiting final distribution. 

Sorting and order fulfillment: Retrieving goods from storage and preparing them for shipment.  

Inventory management: Tracking and controlling stock levels.  

Optimization: Improving processes and maximizing efficiency to reduce costs. 

There are four main types of warehousing facilities. Their ownership and functions determine each type. 

Bonded Warehousing: Also known as ‘customs warehouses’ that exist in industrial areas. They are for imported goods needing storage, manipulation, or manufacturing processes.  

Public Warehousing: These are available to the public. Government, semi-government, or third-party logistics companies own and operate them. They provide rentals for temporary requirements or seasonal demands.  

Private Warehousing: This is when a company has direct ownership and use of a warehouse space. This is common with companies that have more capital investment and customization needs. 

Refrigerated Warehousing: For temperature-controlled goods, such as perishables, foods, pharmaceuticals, and cosmetics. 

Now it’s time to jump into storage. This is a term for a safe, store housing facility for smaller-capacity items.  

There are three main storage types, each determined by its purpose. 

Mini-storage: This indicates the unit’s size. It is accessible by renters, providing flexibility and convenience. I believe it is a great option for small quantities of inventory, or personal or household items.  

Self-storage: Size options vary from lockers to rooms, with long- to short-term agreements. They may also provide climate control, security, and surveillance. 

Vehicle storage: For storing motor vehicles, boats, or motorcycles. Due to the huge size requirements, vehicle storage can come in uncovered or covered spaces. 

While warehousing has storage components, storage doesn’t have warehousing offerings. 

Both storage and warehousing services fulfill a particular need and purpose. They each have elements that make them appealing to certain requirements. 

Accessibility: You can store items as needed. Frequency and ease of access may vary. 

Organization: Involves systematic organization to ensure items are retrievable and managed. 

Purpose: Both focus on keeping goods, materials, or products for a period of time. 

Security: Includes protection against theft, damage, and environmental factors. 

Space use: Efficient use of space allows maximizing storage capacity and optimizing operations. 

After identifying the parallels between these facilities, you can start spotting the differences. 

Warehousing: Involves more complex operations to handle large volumes of goods. 

Storage: Has smaller, simpler facilities or units. 

Warehousing: Focuses on managing the flow of goods in the supply chain. 

Storage: Serves as a place to keep items safe and secure for personal or business use. 

Warehousing: Offers value-added services, such as order fulfillment.  

Storage: May provide climate control and security. 

Warehousing: Managed by specialized staff and offers advanced technology.

Storage: Provides direct customer access to the unit. 

Warehousing: Involves long-term contracts to support ongoing business operations. They have the flexibility to scale operations.

Storage: Rented on a short-term or long-term basis. 

Warehousing: Equipped with advanced infrastructure like pallets, forklifts, conveyor belts, and automated systems. 

Storage: Has a simpler infrastructure that provides secure and accessible storage units. 

Warehousing caters to larger-scale operations, whereas storage allows more of a self-maintained arrangement. 

They offer specialized services for businesses requiring more logistical and operational support. 

Bulk-breaking / consolidation: When large shipments get divided or combined from various suppliers.  

Cross-docking: When goods get transferred from incoming to outgoing shipments. 

Inventory management: Keeping accurate records of stock levels, locations, and movements. 

Order fulfillment: Picking, packing, and shipping orders to customers. 

Packaging and labeling: Prepping goods for sale or distribution. 

Quality control: Includes inspecting and maintaining the quality of goods. 

Security: Protecting goods from theft, damage, or deterioration. 

Storage: Storing goods until needed for distribution or sale. 

Value-added services: Include assembly, kitting, or customization of products. 

What Services Do Storage Facilities Provide? 

Storage facilities provide minimal services for smaller-scale enterprises or personal needs.   

In my view, this is a non-exhaustive list. Warehousing solutions can be tailored according to the unique needs of businesses, such as adjustable shelving or modular units.  

OPLOG | One of the leading warehousing solutions in the UK

Choosing Between Warehousing and Storage 

Warehousing is for large-scale, long-term business storage with logistics and inventory management needs. Storage is ideal for personal, small business, or temporary storage with cost-effective solutions.  

Do you want to elevate your brand’s post-purchase experience? We offer tailored eCommerce fulfilment services. Try customizing your operations through our specialized warehousing and shipping for seamless optimization.  

Technology plays a hefty role in managing each type of facility. It also allows more efficient operations, services, and monitoring systems. 

Warehouse management systems assist in transforming and utilizing data. They can improve operations and support growth. 

Batch tracking: Tracks products' lifecycles. 

End date management: Utilizes the FIFO (first in, first out) method. 

Forecasting: Predicts stock requirements. 

Inventory analysis: Tracks your stock in real-time. 

Some tools exist on-site or as online support to the customers or site personnel. 
 
These can include: 

After considering each type of facility, finally comes financing. Warehousing allows for more specialized services for seamless goods management. These services can come at a higher cost. As storage alone requires less maintenance, it is the more low-cost option.  

Get a customized quote according to your fulfilment needs.  

Warehousing and Storage | Is There a Difference?

Unravel the complexities of fulfillment logistics. Oplog's overview helps you understand the process from order receipt to customer delivery.

Fulfillment Logistics Explained | Oplog

Successful businesses need quality products and customer service. For eCommerce, a major part of customer satisfaction and success relies on the post-purchase phase. This starts from the minute a customer purchases a product, until delivery. Learn how fulfillment logistics covers all this and secures your business. 

Fulfillment logistics involves receiving, processing, and delivering customer orders. These processes usually start in a warehouse or eCommerce fulfillment center. When done well, they encourage repeat business. 

So, ​​what does fulfilment mean in logistics? The fulfillment process ensures orders get filled and delivered with accuracy. Each step needs efficient execution to avoid mistakes.  
 
Fulfillment logistics phases include: 

The process involves many moving parts, from managing the warehouse to outgoing communications. Teams must collaborate to complete each step and move to the next phase of fulfillment. Swift logging and processing are key for success.    

The fulfillment journey starts with suppliers. Goods travel from suppliers to fulfillment centers for acceptance and verification. Teams track inventory levels, keep goods organized, and replenish stock.    

Order processing has three phases: entry, verification, and prioritization (if needed). Workers cross-check availability, buyer information, and payment. Some orders may get expedited to meet deadlines. 

Goods get collected in this phase.  Picking is usually manual, but new automated systems feature robotic help. Once collected, goods get packaged with documentation (like invoices or shipping labels). 

Companies select carriers, organize shipping, and deploy delivery management. Some services have set couriers chosen for cost, speed, and destination requirements. Once the order has left the center, teams track the transit journey for delivery success. 

Fulfillment model locations range from home garages to larger warehousing. Models include on-site or off-site locations. These options are in-house fulfillment, third-party logistics, and dropshipping. 
 

This model focuses on internal, in-house fulfillment processing. It allows control over inventory, overseeing customer matters, and flexibility for customer orders. It can lead to higher costs, complicate managing logistics, and scaling troubles. 
 

​​​​​Third-Party Logistics (3PL) 

Third-party logistics (3PL) outsources operations to companies specializing in storage, processing, and shipping. 3PL can ease operation strains, offer better logistics knowledge, and access to tech. It may lessen control over the process and add costs for services. 

This model has a supplier or manufacturer ship goods directly to the customer. The retailer only manages the orders and sends them to the supplier. It lowers costs and simplifies operations to offer more products, without needing housing. However, retailers may experience lower profits and limited control over processing and stock. 

Technology is ever-evolving to meet consumer demands while advancing fulfillment logistics. Common systems now include comprehensive warehouse management and order management. Tech-savvy set-ups may feature futuristic robotics and AI. Each system adds to a company’s speed and accuracy to scale its fulfillment processes.  

​​​​​Warehouse Management Systems (WMS) 

A warehouse management system (WMS) is a software application that supports and optimizes warehouse operations. It tracks and manages inventory, coordinates picking and packing, and streamlines workflow. Using this system can increase accuracy, aid in tracing goods, and enhance operations.  

The OMS is a software focusing on managing the entire order lifecycle. It allows better inventory visibility between channels. OMS also coordinates multi-location fulfillment and links to customer service and returns teams.  

This is where the future meets function. AI-based systems and robotics carry out tasks to optimize simple actions. They help in picking, packing, sorting, and handling. In some spaces, they can even move items in the warehouse using autonomous mobile robots.  

Fulfillment logistics involves many parts and teams, leading to challenges. Issues include managing inventory, order inaccuracies, and rising shipping costs. Each hurdle needs strategic solutions for top service.  

Maintaining inventory is the start of a successful fulfillment journey. Ensuring goods are well-tracked avoids cases of stockout and overstocking. This allows successful sales, lessens holding costs, and meets customer expectations.  

Errors can happen when picking, packing, and shipping orders. You can cut these faults by using systems that enforce accuracy. Great solutions include scanning, automation, and other measures to enforce quality control. Adding these solutions sidesteps returns, extra shipping costs, and poor company reputation.  

In eCommerce, shipping needs to be fast and affordable. Professional eCommerce fulfillment companies optimize shipping strategies and arrange couriers using technology. This reduces the chances of decreased profits, slowed delivery times, and dissatisfying customers.

OPLOG | One of the leading fulfillment companies

Achieving performance excellence stems from regular efforts to identify areas to improve. Measuring ​​​​​​key performance indicators (KPIs) can help address sore points. Common issues include inventory turnover, order accuracy, and delivery timing. Monitoring metrics leads to enhanced operations, boosts business, and happy customers.  

In fulfillment logistics, these strategies focus on regular efficiency and accuracy updates. Companies use data analysis, feedback, and regular reviews to identify areas for improvement. Applying these strategies leads to better performance, reduced errors, and higher customer satisfaction.  

Advancements in tech will shape the future of logistics. Customers expect faster service, like next-day or same-day delivery. While logistics deploy instant services, there is a drive to reduce carbon footprints. You can expect the future to have faster, yet eco-friendly solutions. 
 

This quick delivery service caters to customers' demand for speed and convenience. Companies can do this by:  

Speedy delivery options enhance customer satisfaction and give businesses a sharper competitive edge.  
 

These practices focus on reducing the environmental impact of logistics operations.  

These mindful changes benefit the environment and improve brand reputation and customer loyalty.  

Fulfillment Logistics Explained

Explore the meaning of eCommerce shipping with Oplog. Discover best practices, carrier options, and strategies to optimize your delivery experience.

What is eCommerce Shipping?

Your success in the online business world heavily relies on eCommerce shipping. Understanding its core principles and optimizing tactics for customer satisfaction is crucial. eCommerce shipping involves transporting items you purchase online from the seller to your designated address, encompassing all logistical operations necessary for order fulfillment. 

eCommerce shipping is the process of delivering products purchased online from your business to your customers' doorsteps. It involves managing logistics, choosing shipping carriers, and ensuring timely delivery. Efficient eCommerce shipping is crucial for customer satisfaction and can significantly impact your business's reputation and growth. 

eCommerce shipping ensures that items you sell reach your customers quickly and securely. Key components include: 

Packaging: Goods are securely wrapped to withstand transportation stresses and maintain their integrity, reducing the risk of damage. 

Choosing a Shipping Carrier: Selecting a suitable shipping carrier involves considering factors such as speed, reliability, coverage, and cost-effectiveness to meet your demands and expectations. 

Timely Delivery: Meeting service level agreements (SLAs) with carriers ensures consistent delivery times and provides you with tracking information for transparency. 

How eCommerce Shipping Differs from Traditional Shipping 

eCommerce shipping differs from traditional bulk business-to-business methods by focusing directly on your needs. It prioritizes delivering goods directly to your customers, fostering relationships, and bypassing intermediaries. Unlike traditional shipping, which adheres to rigid schedules, eCommerce logistics prioritize flexibility and scalability to adapt to your location and order volumes, integrating technology for enhanced satisfaction and operational efficiency. 

Efficiently managing the eCommerce shipping process requires seamless coordination between customer service and logistics to ensure flawless delivery experiences. From order placement to delivery, it involves verifying details, picking and securely packaging products, generating shipping labels, and managing logistics for timely delivery to your doorstep. 

Here’s a step-by-step breakdown of the eCommerce shipping process:  

Order Placement: When a customer places an order online, the eCommerce shipping process begins. 

Order Processing: It's crucial to verify details and confirm product availability to ensure accurate eCommerce fulfillment.  

Picking and Packing: Carefully pick and securely pack products to maintain their condition during transit. 

Shipping Labels: Generate shipping labels with essential details before handing packages over to your selected carriers. 

Carrier Logistics: Your carriers manage logistics from sorting hubs to local distribution centers, ensuring timely delivery to your customer's doorstep. 

Effective eCommerce shipping relies on collaboration among essential stakeholders: online retailers managing platforms and customer support, fulfillment centers providing storage and order processing, shipping carriers transporting goods, technology providers offering automation tools, and you, influencing shipping preferences and driving innovation. 

Various shipping services cater to your diverse requirements and preferences in eCommerce, including standard delivery for cost-conscious customers, expedited shipping for urgent orders, and specialty services like white glove delivery and international shipping. 

Consider your specific shipping needs when choosing from available services.  

Standard delivery offers an economical choice with moderate delivery times, making it suitable for cost-conscious customers. Expedited shipping guarantees faster delivery within 1-3 business days, ideal for urgent orders. Specialty services cater to unique needs, including options like white glove delivery for delicate items, same-day or next-day services for immediate requirements, and international shipping for global reach. 

Selecting a reliable shipping carrier involves comparing rates, negotiating discounts, and ensuring on-time delivery reliability based on your feedback. Check coverage and explore value-added services such as tracking and insurance to enhance satisfaction and operational efficiency. 

Efficient shipping impacts your satisfaction and operational efficiency in eCommerce. Factors affecting costs include package dimensions, shipping distance, speed preferences, optional services, and seasonal demand fluctuations. Pricing strategies like free shipping, flat rates, and real-time rates align with your preferences and improve overall experience. 

Factors Affecting eCommerce Shipping Costs 

Several variables influence shipping costs that businesses should understand. Package dimensions and weight directly impact expenses, with larger or heavier packages incurring higher fees. Shipping distance is another critical factor, with remote or international deliveries typically costing more.  

Choosing expedited shipping options adds to costs due to premium charges for faster delivery. Optional services such as tracking and insurance enhance shipment security but contribute to overall expenses. Additionally, managing costs during peak seasons requires strategic planning to mitigate potential increases. 

eCommerce companies employ various pricing strategies to enhance customer satisfaction.  

Free Shipping: Free shipping integrates shipping costs into product prices to encourage higher order values.  

Flat-rate Pricing: Flat-rate pricing provides a consistent shipping cost regardless of purchase size or destination, simplifying budgeting for customers.  

Real-time Rates: Real-time rates adjust shipping charges based on carrier rates, product specifics, destination, and preferred delivery speed, offering flexibility and transparency in pricing. 

Efficient shipping methods are crucial for improving your customer satisfaction and operational efficiency in eCommerce. Enhance shipping speed through strategic logistics measures, manage costs effectively with negotiations and packaging optimizations, and leverage technology for automation and real-time updates to streamline operations. 

Improving Shipping Speed and Efficiency 

To enhance operational efficiency, businesses can implement strategic logistics measures.  

Positioning eCommerce fulfillment centers near major customer hubs reduces transportation costs and delivery times, improving overall service. Effective inventory management ensures popular products are consistently available, minimizing fulfillment delays.  

Automating order processing reduces errors and accelerates shipment preparation, meeting customer expectations for prompt deliveries. Offering express shipping options further enhances service speed and reliability. 

Managing shipping expenses effectively is crucial for profitability. Negotiating favorable shipping rates based on shipping volume, frequency, and service requirements can significantly reduce costs. Optimizing packaging minimizes dimensional weight charges while maintaining product safety during transit.  

Implementing multi-carrier solutions tailored to each order optimizes transportation efficiency. Route optimization software further reduces fuel consumption and travel distances, contributing to cost savings and operational efficiency. 

Entering foreign markets offers unique opportunities and challenges. Overcome cross-border logistics challenges such as customs regulations, duties, taxes, and shipping regulations with transparent pricing and efficient management practices. 

Navigating cross-border logistics involves addressing specific challenges such as customs regulations, duties, taxes, and shipping regulations. 

Navigating international eCommerce transactions requires clarity regarding customs, duties, and taxes. Import duties imposed by the importing country are based on the goods' classification, declared value, and origin. Destination countries may levy taxes such as VAT or GST, depending on local regulations. 

Transparent pricing that includes projected taxes and customs duties upfront helps businesses and customers anticipate and manage additional costs effectively. 

eCommerce Shipping and Customer Experience 

Your eCommerce experience hinges on flawless delivery and order fulfillment. Meet expectations by offering real-time tracking, diverse delivery options, and proactive resolution of shipping issues and returns, ensuring trust and loyalty. 

Achieving customer satisfaction in eCommerce relies on meeting expectations throughout the shipping process. Providing real-time tracking capabilities enhances visibility and customer confidence in order status, minimizing concerns about delivery.  

Offering diverse delivery options caters to varied customer preferences, enhancing convenience and satisfaction. Proactively addressing shipping issues such as delays, damages, or discrepancies reinforces trust and loyalty. 

Efficient management of returns and exchanges is crucial for maintaining customer trust. Clear communication of policies ensures customers understand processes and manage expectations effectively. Simplifying returns with prepaid labels and multiple return channels facilitates hassle-free customer experiences, promoting satisfaction and repeat business. 

The Advantages of Decentralizing Your Warehousing