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.
A strong order management system orchestrates multiple processes quickly and effectively. These include:
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.
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).
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:
The following examples can be effectively overcome with a Distributed Order Management (DOM) system, powered by a Commerce Operations Platform:
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.
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.
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.
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