Omnichannel retail operations require an efficient Order Management System (OMS). It’s a necessity for seamless order fulfillment and the overall success of your business – especially as you scale. Whether you’re a DTC brand or a B2B enterprise, your OMS is pivotal in managing orders, inventory and customer satisfaction. However, as your business grows, your existing order management system software may struggle to meet increasing demands and evolving market needs.
In this blog, we’ll explore key signs that indicate it’s time to invest in a new OMS. From slow order processing to poor integration with other systems, we’ll help you identify the red flags and guide you toward making an informed decision. Let’s dive into how upgrading your OMS can support your business’s growth and support long-term success.
It's critical for retail brands to identify when it’s time to invest in new order management system software. Not only does it help maintain operational efficiency, but it’s also vital to supporting growth in omnichannel operations. There are several telltale signs that your current OMS may be holding your business back. Here are six signs that indicate it might be time for a new OMS:
#1: Slow and inefficient order processing
One of the clearest signs that it's time to invest in new order management system software is slow and inefficient order processing. As your business grows, increased order volumes can lead to longer processing times and more errors if your current system can't handle the load. For example, a retailer might struggle to fulfill orders on time during peak seasons like BFCM.
The impact of these inefficiencies is far-reaching. Delayed shipments frustrate customers, resulting in negative reviews and loss of repeat business. Moreover, processing errors can lead to costly returns and exchanges, further eroding profit margins. In a highly competitive market, these issues can severely damage your brand's reputation and drive customers to seek alternatives.
Solution: Investing in a modern OMS can transform your order processing capabilities. Advanced systems streamline and automate various tasks, from order entry to fulfillment, reducing human error and speeding up the entire process. With features like real-time inventory tracking, automated order routing and integrated shipping solutions, a new OMS can ensure that orders are processed swiftly and accurately, even during peak times. This not only enhances customer satisfaction but also boosts your operational efficiency and bottom line.
# 2: Inadequate inventory management
Another key sign that it's time to invest in a new OMS is inadequate inventory management. Frequent stockouts and overstock situations can wreak havoc on your operations. For example, imagine a brand consistently dealing with inventory discrepancies across multiple channels. One week, they might run out of a popular item, missing out on potential sales. The next, they might find themselves with excess stock of a slow-moving product, tying up valuable warehouse space and capital.
Poor inventory management has an enormous impact. Stockouts lead to lost sales and disappointed customers, who may turn to competitors when they can't find what they're looking for. On the other hand, overstocking increases holding costs and risks inventory obsolescence, eating into your profit margins. Both scenarios contribute to customer dissatisfaction and can tarnish your brand's reputation.
Solution: A new OMS can address these issues by providing real-time inventory visibility and accurate stock tracking. Modern systems allow you to monitor inventory levels across all channels and locations in real-time, ensuring that you always know what you have on hand. This helps you make informed decisions about restocking and reallocating inventory as needed. A new order management system can enhance operational efficiency, boost sales and improve customer satisfaction by reducing stockouts and overstock situations.
#3: Poor integration with other systems
Poor integration with other essential signals means it’s time to invest in a new OMS. Difficulty integrating with your existing CRM, ERP or WMS systems can create significant hurdles for your business. For example, look at a business struggling to sync data across various platforms. This lack of integration often results in data silos, where critical information is trapped in isolated systems. As a result, the business faces inconsistent information and inefficient workflows, which can severely hinder omnichannel operations.
The impact of poor system integration is far-reaching. Data silos lead to fragmented customer views, making it challenging to deliver a seamless and personalized customer experience. Inconsistent information across systems can result in errors in order processing, inventory management and customer service, leading to delays and frustrated customers. Inefficient workflows slow down operations and increase the risk of mistakes, damaging your brand’s reputation and profitability.
Solution: An OMS that seamlessly integrates with your existing CRM, ERP and WMS systems can solve these problems. An integrated order management system ensures data flows smoothly across all platforms, providing a unified view of your operations. This facilitates better decision-making, enhances customer service and streamlines workflows. By eliminating data silos and ensuring consistent information, an OMS with robust integration capabilities supports efficient and effective omnichannel operations, helping your business grow and thrive.
#4: Limited scalability and flexibility
Limited scalability and flexibility in your current OMS indicate it’s time for an upgrade. As your business grows, your order management system needs to scale accordingly and adapt to changing needs. Take, for example, a rapidly growing DTC brand that suddenly experiences a surge in order volumes. If their existing OMS software cannot handle the increased capacity, they face operational bottlenecks, delayed shipments and frustrated customers.
The impact of an inflexible OMS is profound. When your system can't scale with your business, it creates inefficiencies that hinder growth. You may be unable to support new sales channels, integrate with additional systems or manage increased order volumes effectively. These limitations can stifle your ability to expand into new markets, launch new products or provide the level of service your customers expect. As a result, you risk losing competitive advantage and market share.
Solution: Investing in scalable and flexible order management software solves these challenges. The right OMS can grow with your business, accommodating increasing order volumes and supporting new sales channels seamlessly. It offers the flexibility to adapt to evolving business requirements, such as integrating new technologies or adjusting workflows. Choosing an OMS designed for scalability and flexibility ensures that your operations can handle growth without compromising efficiency. This adaptability not only supports current business needs but also prepares your brand for future expansion and market changes, leading to sustainable growth and continued success.
#5: Lack of advanced features and reporting
If your current Order Management System (OMS) software lacks advanced features like detailed reporting, analytics, real-time visibility and automation, it might be time for an upgrade. Imagine a B2B company struggling to generate detailed sales reports necessary for strategic decision-making. Without these advanced capabilities, the company is flying blind, unable to leverage data to optimize operations or forecast future trends accurately.
These missing features reduce operational efficiency. A lack of actionable insights can hinder your ability to make timely, informed decisions. Without advanced reporting and analytics, you can't accurately track sales performance, understand customer behavior or identify areas for improvement. This gap in capabilities can lead to missed opportunities and a slower response to market changes, putting your business at a disadvantage.
Solution: Comprehensive OMS features and robust reporting capabilities can transform your operations. Such systems often include Warehouse Management Systems (WMS) and Transportation Management Systems (TMS), serving both B2B and DTC needs. They provide real-time visibility into inventory and order status, advanced analytics for better decision-making and automation to streamline workflows. Upgrading to order management software with advanced features can improve operational efficiency and help you gain valuable insights for strategic planning, ensuring your business can respond swiftly to market demands.
#6: High Maintenance and support costs
When the costs for maintaining and supporting your current OMS start escalating, it's clear that you need to consider a new solution. Take the example of a retailer experiencing frequent downtimes and facing costly upgrades. These high maintenance expenses strain the budget and divert resources that could be better spent on growth initiatives.
The impact of high maintenance and support costs is multifaceted. Frequent downtimes disrupt business operations, leading to lost sales and unhappy customers. The financial burden of constant repairs and upgrades can divert funds from other critical areas, such as marketing or product development, erodes profitability over time.
Solution: Your OMS solution should offer cost savings and reliability. Contemporary OMS software is designed for minimal maintenance, reducing the need for frequent upgrades and repairs. They come with robust support services, ensuring any issues are promptly resolved, minimizing downtime. Investing in a more reliable system lowers operational costs and frees up resources to focus on strategic growth initiatives. This transition boosts your operational efficiency and improves overall profitability.
Questions to ask when evaluating the best order management system software for your brand
When evaluating the best Order Management System (OMS) software for your brand, consider asking these essential questions to ensure the solution meets your business needs:
Scalability and flexibility
- Can the OMS scale with our business growth and adapt to changing needs?
- Does it support both B2B and DTC operations effectively?
Integration capabilities
How well does the OMS integrate with our existing systems, such as CRM, ERP, TMS and WMS?
- Are there any additional costs or challenges associated with these integrations?
- Do you provide a more robust solution. For example, OMS software with already integrated WMS and TMS capabilities?
Feature set and functionality
- What advanced features does the OMS offer, such as real-time visibility, analytics and automation?
- Does it provide comprehensive reporting capabilities to support strategic decision-making?
User experience, ease of use, support and maintenance
- Is the OMS user-friendly, intuitive and easy for our team to learn and use efficiently?
- What training and support are provided to ensure a smooth onboarding process?
- What kind of customer support and maintenance services are included?
- Are there any hidden costs for support, upgrades or customizations?
Cost and ROI
- What are the total costs associated with the OMS, including implementation, training and ongoing maintenance?
- How does the OMS improve operational efficiency and contribute to our overall return on investment (ROI)?
Cart.com Constellation Order Management System software
Cart.com’s proprietary Constellation OMS was built by fulfillment experts to meet retailers growing omnichannel needs. Our robust system offers full order and inventory visibility across channels and locations.
FAQs
