Order management enables brands and retailers to plan better, grow faster, sell more and waste less. And meet customer demands to order, receive and return anywhere.

Achieving this across all channels is arguably the most important task that retailers face – but also the most difficult. Which is why a modern and flexible order management system (OMS) is often called the “heart of omnichannel commerce”.  

Yet despite new channels and platforms being regularly added to the mix, consumers still expect flawless delivery within days. And of course, retailers want to stay lean and preserve their profits. 

In this guide, we'll explain what order management is, how logic-based rules can enable retailers to sell more and waste less, and offer some suggestions on how to get started.

What is Order Management? 

A strong order management system orchestrates multiple processes quickly and effectively. These include: 

• Handling incoming customer orders
• Preparing goods for shipment
• Coordinating delivery service providers
• Checking incoming payments
• Processing returns 

Most of these tasks contribute significantly to a positive post-purchase experience, which is critical for customer loyalty. For 88 percent of online shoppers, the customer experience before and after a purchase is just as relevant as the product purchased. After their purchase, they expect, for example, transparent communication about when their goods will arrive.

However, rising customer expectations aren't the only things brands, retailers and manufacturers need to consider. Many trends from the past five years, such as social commerce and omnichannel commerce, require the integration of new sales channels into existing systems. And this increases the complexity of retailers' back-end processes.  

To make your order management as efficient as possible, processes should be automated via logic-based rules - and this requires accurate data throughout the system. Let's look at how the next generation of OMS achieves this. 

Distributed Order Management: The Next Generation of OMS 

To process their orders in the best possible way, retailers need modern cloud-based solutions that streamline all order processes, and synchronizes them with the fragmented channels of modern e-commerce. Enter Distributed Order Management (DOM).

This goes far beyond “traditional” order management systems, which are typically built into legacy all-in-one platforms, and are difficult to adapt to modern needs. A DOM can orchestrate all the order data and processes coming from various channels like websites, marketplaces and social commerce. 

It uses logic-based rules (“Order Fulfilment Logic”) to process customer orders as quickly and reliably as possible, by considering many factors including customer proximity to the warehouse, priority, current capacity and more. 

It relies on integrations and automations to bring together data from different channels, using technologies such as Extract, Transform and Load (ETL). 

Benefits of Distributed Order Management 

DOM allows companies to optimize their delivery times, and avoid penalties for late deliveries through marketplaces. The goal is to ensure "On Time, In Full" (OTIF) deliveries – a major challenge when you consider all the different factors involved in modern retail. 

In addition, a DOM increases the networking and flexibility of processes in back-end systems and ensures that retailers can adapt and scale their business model more easily, as new channels and customer needs emerge. 

Modern order management with a Commerce Operations Platform at its core offers numerous benefits to both retailers and their customers: 

• More flexibility: Modern customers want to buy, receive and return products wherever they like. Retailers who have their order management under control across all customer channels can easily meet this requirement. This increases customer satisfaction and the likelihood that they will come back. 

• More efficiency: Automated workflows make it possible to monitor and control all orders and data. This reduces the error rate and increases responsiveness. In addition, efficient order management helps the company to save time and resources. 

• More growth: By integrating the DOM into all processes and systems, e-commerce retailers can react quickly to changes and take advantage of growth opportunities in a more targeted manner. 

Common Challenges of Order Management

The following examples can be effectively overcome with a Distributed Order Management (DOM) system, powered by a Commerce Operations Platform:  

• Siloed data: Many brands lack a 360-degree view of key ordering processes due to data silos. Only 41 percent of German companies can currently use their data across departments. The problem is exacerbated when retailers continue to use outdated systems such as monolithic ERP systems or Excel spreadsheets for their order management. 

• Bulky legacy systems: Legacy systems are cumbersome and don't respond quickly enough to new e-commerce demands. This causes errors and unnecessary costs. Retailers whose IT ecosystem consists of more than 75 percent legacy systems often spend over 70 percent of their budget on upgrades. 

• Lack of real-time visibility: In e-commerce, decisions have to be made faster and faster so that customers get the best possible shopping and post-purchase experience. To do this, retailers need real-time visibility into all orders and inventory. However, outdated systems and siloed data deny you this visibility. 

When Does a DOM system Make Sense?

A distributed order management system is highly relevant for companies that operate several sales channels such as webshops, social commerce or marketplaces.

This includes B2C retailers of food, fashion, beauty and luxury goods, and B2B companies that need to centrally orchestrate ordering processes and data from various systems. 

Do you need a centralized view of available inventory and orders across multiple warehouses and distribution centers? Is your retail team trapped in manual processes and spreadsheets? Are customers complaining about late or missing orders?

Then a distributed order management system makes sense. 

Success Story: How Kapten & Son Controls All Sales Channels

The hugely-popular lifestyle brand Kapten & Son uses Actindo for managing all its omnichannel operations, including social commerce:

All business processes are automated, orchestrated and customized with just a few clicks, and all data streams are consolidated and can be viewed in real time, so that the Kapten & Son operations team can work together collaboratively to make informed decisions.  

After deploying the Actindo platform, Kapten & Son saw a 23% increase in customer care team productivity and streamlined their order processing, setting a new standard for operational efficiency in social commerce.  

Read the success story here. 

Accelerate Your Order Ops with Actindo

Actindo’s Commerce Operations Platform enables full process orchestration from online or offline orders to the ERP and all data systems. It features powerful capabilities including a class-leading distributed order management system.

This gives commerce ops leaders total control of all their marketplaces, channels, orders, and data, so that they can plan better, grow faster, sell more, and waste less, becoming leaders in unified commerce. 

Our mission is to enable omnichannel brands and retailers like Nintendo of Europe, ALDI E-Commerce and more to deliver exceptional customer experiences. We do this by adding speed, flexibility and scalability to order management and all connected systems and channels.