10 February 2023

OMS System: Everything You Need to Know About the Technology Revolutionizing Omnichannel

10 February 2023

Does your company want to open more sales channels? Discover how the OMS system can help you achieve better results and increase your digital presence.

Consumption patterns have changed. Today, the way customers and companies interact and the experiences offered during the acquisition process of a particular product are some of the pillars that support the new market.

Another fundamental transformation observed in the last two years has been the growing search for products online and, consequently, a greater acquisition through e-commerce. This shows that not only has behavior changed, but also the way people consume. The rise of e-commerce, in fact, does not mean that physical retail is destined to end, but rather that it is necessary to offer more purchasing channels to the customer and, most importantly, provide a unified experience.

It is estimated that about 12% of the retail market today directs part of its investments and resources towards some digital sales channel. And it couldn’t be otherwise! Companies hoping to grow and become a reference in their segments must follow consumer trends and be prepared for the challenges that the new market demands.

Logistics and order management: the biggest challenge of omnichannel

Before diving into the omnichannel universe, you must be aware of the challenges your warehouse will have to overcome. For many companies, especially those experiencing rapid growth, acquiring, monitoring, and fulfilling orders across two or more sales channels is complicated. To make matters worse, most retailers still use manual processes at some point in the logistics process, leading to inaccuracies and confusion in orders. And this can be fatal for the company’s image.

In 2019, the website Reclame Aqui recorded more than 90,000 complaints related to delivery delays and orders in general. And it’s important to remember that today the customer has a voice and space to express their criticisms. Many consumers even read a company’s reviews before making a purchase decision. Therefore, it is not possible to open more sales channels, especially in digital media, without prioritizing logistics, particularly order management, to monitor any events and problems with the order during the purchase and shipping cycle.

In practice, order management controls the entire journey of a specific order, from the moment the customer completes a purchase, through the warehouse, product separation, control, to shipping to the recipient. In general, it involves several sectors of the company responsible for sales, customer service, logistics, accounting, and transportation. If done satisfactorily, a series of advantages can be observed:

  • – Optimization of the company’s workflow and warehouse.
  • – Organization of processes.
  • – Customer satisfaction.
  • – Protection and company reputation.
  • – Optimization of resources.

However, managing and monitoring the entire order process is not a simple task, especially if the warehouse serves more than one channel simultaneously. Since it involves monitoring across different sectors, manual work will hardly be sufficient to control the entire activity.

From purchasing a product to reaching the customer, there are a series of challenges, such as:

  • – Align inventory and orders across multiple channels
  • – Plan complex shipments and manage different order profiles
  • – Monitor fulfillment, i.e., order fulfillment
  • – Generate reports and perform analyses and evaluations

Therefore, from inventory to order shipment, it is important that the information is accurate and provided in real-time. Furthermore, the entire operational framework must be interconnected, ensuring that the purchase flow proceeds without failures or obstacles. But how to ensure efficiency during the process? The answer is: with the right technology.

More and more companies want to optimize their order management processes using the OMS (Order Management System), a management software capable of tracking sales, orders, inventory, and services. It manages the people, processes, and partnerships necessary for products to reach customers quickly and accurately.

OMS System: complete automation of order management

In the current context, order management requires a multidimensional system capable of covering all the links of your company, such as:

  • – Customers
  • – Sales channels
  • – Product information
  • – Stock levels and location
  • – Suppliers for purchasing and receiving
  • – Customer service (i.e., returns and refunds)
  • – Printing, picking, packing, processing, and shipping orders

And that is exactly what the OMS system does. We can say that the OMS system forms the foundation for any omnichannel incursion to be successful. With it, the company and the buyer have access to key information, ensuring that products reach customers efficiently and that they have a positive and unified experience, regardless of the channel.

OMS System: main features and benefits

In the following topics, we detail the main features of the OMS system and why this tool has come to revolutionize, bring advantages, and improve order fulfillment management in an omnchannel business.

Real-time visibility and inventory management across different channels

Just as companies have branches or physical sales partners, in the digital market, we can also find different sales channels to increase reach and results, such as websites, social networks, search engines, marketplaces, among others. Keeping inventory updated across different platforms can be a complicated and error-prone activity if done manually.

In this scenario, the OMS system contributes to inventory management across different sales channels, ensuring that the information is consistent with the number of items within distribution centers and warehouses. This practice establishes some advantages for the company, such as:

  • Avoid using spreadsheets for inventory tracking, which can trigger a series of information errors.
  • Keep the number of items available in stock updated with sales channels, avoiding purchases that cannot be completed.
  • Increase customer reliability and satisfaction.
  • Save operational resources to monitor each sales channel.
  • Prevent and identify any stock issues, whether they are excess items that are stagnant or those that are at low levels.
  • Understand the seasonality of each product, ensuring stock compatible with the customer profile.

Automation and monitoring of the entire order flow

Delivery times, sending, and receiving orders are decisive factors when a customer makes a purchase on the Internet. With major brands increasingly specialized and attentive to the agility and efficiency of deliveries, the level of competitiveness is high for any company that has not yet adapted to the new reality.

Being software capable of interconnecting all sectors of a company, it is possible to automate end-to-end internal processes, from docking to shipping, making the order flow agile and efficient, allowing:

  • Reduction of order picking and packing times.
  • Competitiveness with the market by delivering faster.
  • Instant identification of the distribution centers closest to each customer.
  • Organization of more efficient routes with less time to complete an order delivery.
  • Selection of the best employees, location, and ideal preparation method for each order based on its specificities.
  • Tracking of internal and external information. Both managers and customers can monitor the status of a specific order in real-time.
  • Transparency and reliability for customers.

Optimization of return processes

Just as it is important to take care of shipping logistics so that it is fast and efficient, some companies might give up thinking strategically about order returns when necessary. Although they represent a share of 6%, exchanges and returns must be carried out satisfactorily for the customer.

In an era where experience is crucial to maintaining loyalty, providing a simple process for the customer ensures a new purchase in the future. In this situation, the OMS system actively contributes to the automation of reverse logistics, updating customer information for a new shipment, generating return labels, processing refunds, and sharing new tracking information. These practices ensure:

  • More security for customers.
  • Greater simplicity and less bureaucracy in exchanging or returning a product.
  • More agility in processes.
  • The return of the customer for future purchases, thanks to security and speed in problem resolution.

Interconnection with different sectors

Most OMS systems available on the market have as their main feature the integration with different sectors of a company, i.e., the ability to share information with financial, sales, and even marketing software. This simplifies, for example, the union of stock and sales information.

This feature reduces manual work and also reduces possible human errors. With the system, countless activities are stopped, operational times are optimized, and strategic development for improvements and better results is returned. By investing in an OMS system, your company will be prepared for the new e-commerce market, gain competitiveness in the market, and have greater control over internal logistics processes.

Customer data management

An OMS system acts as a customer relationship management (CRM) platform. With the software, managers can access all information about a customer, including previous orders, lifetime value, and their location.

With this data, retailers have the opportunity to “hyper-personalize” any marketing message they send to customers when trying to secure another sale. In other words, they can be even closer to their audience, which is a relevant factor in the current market. It is worth emphasizing that, according to research, service personalization generates higher conversion rates from 10% to 15%.

Support for international sales

It is estimated that the value of global e-commerce is $4.5 trillion. With the ease of communicating and selling anywhere in the world, your company can take an even bigger leap by joining the OMS system, which allows you to increase your digital presence by receiving orders in different currencies, detailing orders according to the rules of each country, and forwarding to the best distribution center based on the customer’s location.

Benefits of the OMS

From the countless features offered by the OMS system, you have surely noticed how the system makes a difference for today’s retail. If you work directly with logistics management, we can list the main benefits provided by the software:

  • Greater inventory accuracy
  • Faster picking, packing, and shipping
  • Prevent stockouts and excess inventory
  • Optimization of reverse logistics
  • Real-time monitoring and advanced analytics
  • Cost reduction

The automation offered by the software allows for better handling of the high complexity of omnichannel logistics, ensuring the best use of resources and efficiently meeting all customer expectations.

How to choose an OMS system

Now that you know what an OMS system is, its main features and benefits, you might be wondering how to choose the ideal system for your company. Well, you can start by following these 3 practical steps:

  1. Have clear goals and set priorities
  2. Prepare proposals and be open to negotiations
  3. Evaluate options that meet your expectations

It is practically impossible for you to find the best supplier for your business in a first negotiation and proposal evaluation, so always have a variety of suppliers and try to gather information, proposals, investments, and advantages of each.

The ideal OMS system for your company is the one that significantly reduces the volume of manual processes and optimizes order management, saving time and effort.

Find the right OMS system for your company

There is no doubt that order management directly influences how a company can stand out in the market. In an omnichannel scenario, your greatest asset, the customer, must have a perfect experience, regardless of which communication channel they make the purchase. They must have options such as placing orders online, receiving at home, picking up in stores, making exchanges, returns, and even requesting a refund, all quickly and efficiently, maintaining reliable and quality service. In this case, having the OMS system makes a difference.

A new market is also made of new opportunities. If you want to take advantage of new forms of consumption and stand out, the time is now! At Deagor, you will find software that helps your company grow and optimize your processes to generate greater returns and profitability.


OMS System: Everything You Need to Know About the Technology Revolutionizing Omnichannel Deagor WMS per ecommerce può aiutarti!


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