According to IDC, “order management systems can be looked at in a bicycle analogy of the chain that drives the supply chain forward as it intersects with every other system to complete a successful order.” As the hub gear of the supply chain, order management and OMSs present critical opportunities to reduce costs and generate revenue.
From an operational perspective, OMSs can help control costs by automating manual processes and reducing errors. As IDC indicates, order management touches virtually every other system and process in the supply chain, both inside and outside of an enterprise. Most companies no longer contain order management within their organization. They involve multiple partners such as parts and components suppliers, assembly and packaging services or distribution centers, making it easy to lose visibility and control of an order. This results in costly manual processes to complete and deliver the order without errors.
Externally, order management and OMSs have a direct impact on how a customer perceives a business or brand. In an omnichannel environment, customers expect a seamless experience. A customer may order online, but have questions and complete the order through a call center. As the order is being fulfilled, the customer expects to see updates like emails along the way. If there is a problem, they may wish to return it through a physical channel such as a store. Each point in the journey presents an opportunity to provide a great customer experience and boost retention and revenue. The omnichannel journey also presents opportunities to make up-sell and cross-sell recommendations and grow revenue.