Order Management System

An order management system (OMS) is centralized software that manages the entire order lifecycle—from when a customer places an order through fulfillment, shipping, delivery, and returns. It coordinates between sales channels, inventory, warehouses, and carriers.

What an OMS Does

Core Functions

• Order capture from all channels
• Inventory visibility and allocation
• Order routing and fulfillment
• Shipping management
• Returns processing
• Customer communication

Order Lifecycle

Customer Order
      ↓
OMS Receives Order
      ↓
Inventory Check/Allocation
      ↓
Route to Fulfillment Location
      ↓
Pick, Pack, Ship
      ↓
Track and Update Customer
      ↓
Delivery
      ↓
Returns (if needed)

OMS vs. Related Systems

How They Work Together

Customer places order (Shopping Cart)
         ↓
OMS captures and processes
         ↓
WMS picks and packs
         ↓
TMS/Shipping manages delivery
         ↓
ERP tracks financials
         ↓
CRM manages customer data

Key OMS Features

Order Capture

• Multi-channel integration
• Real-time order import
• Order validation
• Fraud screening
• Customer verification

Inventory Management

• Real-time inventory visibility
• Allocation rules
• Multi-location inventory
• Backorder handling
• Stock level alerts

Fulfillment

• Intelligent order routing
• Split shipment handling
• Pick/pack optimization
• Carrier selection
• Shipping label generation

Customer Experience

• Order status updates
• Tracking information
• Self-service portals
• Communication automation
• Returns management

Types of OMS Solutions

By Deployment

By Business Size

Popular OMS Solutions

For E-Commerce

For Enterprise

OMS Benefits

Operational

• Centralized order view
• Automated processing
• Reduced errors
• Faster fulfillment
• Better inventory accuracy

Customer Experience

• Accurate availability
• Faster delivery
• Better communication
• Easy returns
• Omnichannel consistency

Business Intelligence

• Order analytics
• Fulfillment metrics
• Inventory insights
• Customer behavior
• Forecasting data

OMS Integration Points

What to Connect

Sales Channels
├── Website (Shopify, WooCommerce)
├── Marketplaces (Amazon, eBay)
├── POS (retail stores)
└── EDI (wholesale)

Fulfillment
├── Warehouses (WMS)
├── 3PLs
├── Drop ship vendors
└── Retail stores (ship-from-store)

Shipping
├── Carriers (UPS, FedEx, USPS)
├── Shipping software
└── TMS systems

Back Office
├── Accounting (QuickBooks, Xero)
├── ERP systems
└── CRM systems

Implementing an OMS

Implementation Steps

1. Define requirements
2. Evaluate solutions
3. Plan integrations
4. Configure workflows
5. Migrate data
6. Test thoroughly
7. Train team
8. Go live
9. Optimize

Common Challenges

• Integration complexity
• Data migration
• Process changes
• Staff training
• Multiple locations

OMS ROI Factors

Cost Savings

• Reduced manual processing
• Fewer shipping errors
• Lower labor costs
• Better inventory turns
• Decreased returns

Revenue Impact

• Faster order processing
• Accurate availability
• Better customer experience
• Omnichannel enablement
• Reduced stockouts

OMS Metrics to Track

Key Performance Indicators