Glossary
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 minimize the chance of errors, provide the best customer service and keep costs down. An order management system (OMS) or order management software allows you to 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 insight 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.
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