Definition: order management 

What is Order Management

Order management is the entire process that an order goes through. That is, receiving, tracking and fulfilling orders. The order management process starts when an order arrives and stops when the customer has received their order. Sometimes even after-sales is included in the process.

By managing and streamlining the order management process, you ensure that the chance of errors is minimized, you deliver the best service to the customer and keep costs down.

Order Management

With an order management system (OMS) or order management software, you ensure that you can view and manage all orders in one place. The system processes orders, manages inventory and takes care of after-sales, all digitally and automatically.

 

The benefits of an Order Management system

It is important to have an automated and streamlined order management system. In fact, an OMS offers many advantages.

Avoid over and under provisioning

Through insight and overview of orders, inventory levels are easily managed. As a result, you never purchase too many or too few products.

Minimize the chance of errors

The higher the level of automation, the lower the number of human errors. It is easy to fulfill orders without errors when a few orders come in a day. When these become dozens of orders through multiple channels, making mistakes is inevitable. An OMS allows you to manage all orders in one place, keeping an overview and control.

Supply chain optimization

An OMS provides you with valuable information that is easy to analyze. For example, it shows the geographic distribution of your orders, allowing you to optimize the supply chain and reduce costs.

Less waste of time

By automating and optimizing, using an OMS, less time is wasted on fulfillment issues, managing inventory or handling refunds. Because manual work is eliminated as much as possible, you save valuable time that can be spent on something else.

Real-time visibility into your orders

Because all information is stored digitally, you always have real-time insight into your orders, inventory and logistics processes. You can also use an OMS to see trends from the past year and view forecasts.

Visibility and transparency to the customer

Customers can see invoices and payments, order status and when they expect to arrive in their own environment. This saves a lot of manual communication.