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9 features to look for in an OMS
Software evaluation teams should choose the OMS that best addresses their organization's unique requirements. Learn what features to look for in an order management system.
An order management system can help companies in a myriad of ways, but software buying teams that are working on the OMS selection process should ensure the software includes some important tools.
An OMS can help companies streamline order entry, improve inventory management and improve customer satisfaction. However, software evaluation teams should choose the OMS that best addresses their organization's unique requirements.
Here are some of the features to look for.
1. Integration with inventory management
Integration with inventory management across multiple locations is a must-have feature.
An OMS should synchronize stock levels across warehouses, online stores and physical locations to prevent overselling or stockouts. Having access to accurate, real-time inventory data enables employees to carry out timely order fulfillment. It also enables efficient inventory planning and replenishment, which can help improve company spending and reduce write-downs.
2. Customer communication tools
An OMS should include customizable templates for order confirmations, shipping updates and returns management.
Real-time order status tracking enables customers and internal employees to monitor each order's status from purchase to delivery, with a post-delivery status if required.
Increased order visibility can help improve customer experience, reduces the volume of customer inquiries because customers can check on an order without interacting with the company, and enables faster response time to customer questions.
3. Automated order routing
Automated routing capabilities send each order to the best warehouse or distribution center based on factors like proximity, stock availability and shipping costs.
These capabilities minimize the need for intervention by employees, can help speed up order fulfillment and can help reduce employee errors.
4. Customizable workflows
Customizable workflows enable companies to tailor an OMS to handle specific business processes, including unique approval steps or fulfillment rules.
This flexibility helps ensure that an OMS aligns with a company's operational needs, such as performing credit checks, confirming shipping addresses or making orders for specific customers go through as quickly as possible.
5. Flexible payment processing
Payment issues are a leading cause of cart abandonment, so flexible payment options can be especially important for consumer-facing companies.
An OMS should accommodate a variety of payment methods, such as credit cards, digital wallets and post-purchase invoicing. Business requirements may also demand an OMS that handles partial payments, deposits, refunds or international transactions.
6. Returns management
An OMS should include returns management features that simplify the process for customers as well as the company.
Automation features can make it easier to initiate returns, generate shipping labels and track returns statuses. Hassle-free returns improve customer experience and can encourage repeat purchases, while automated returns management can help streamline company operations, reduce manual tasks and ensure that returned items are quickly restocked.
7. Scalability
Core business systems, including an OMS, should support organizational growth, so an OMS should offer functional flexibility, such as the ability to expand to new sales channels or territories or allow for temporary spikes in volume and personnel if needed.
Taking every possible need into account is not always practical, but some level of future-proofing is worth considering.
8. Reporting and analytics
An OMS is most useful if it goes beyond the basics when it comes to reporting and analytics.
The system should offer customizable dashboards and reports on sales trends, order fulfillment rates, inventory turnover and customer behavior. Insights from the dashboards and reports can help leaders identify bottlenecks, optimize processes and forecast demand.
9. Multi-channel integration
An OMS should integrate with multiple sales channels, such as e-commerce platforms and social media. Integration enables more consistent order processing and inventory updates.
Multi-channel integration is crucial for businesses selling on platforms like Amazon, Shopify, or Instagram, as it prevents overselling and helps bring about a unified customer experience.
James Kofalt spent 16 years at SAP working with SME business applications and was a product manager for integration technology at Microsoft's Business Solutions division. He is currently the president of DX4 Research, a technology advisory practice specializing in ERP and digital transformation.
