What is Order Management?
Order management refers to the process of receiving, tracking, and fulfilling customer orders. It encompasses several critical functions that ensure orders are processed efficiently and accurately, leading to high customer satisfaction. Here’s a closer look at the key components involved in order management:
Order Reception
- Capturing orders from various sales channels such as eCommerce platforms, marketplaces, and brick-and-mortar stores.
- Ensuring accurate order details, including product specifications, quantities, and customer information.
Inventory Management
- Monitoring stock levels in real-time to ensure products are available for fulfilling orders.
- Managing inventory across multiple warehouses and locations to optimise stock distribution and reduce shipping times.
Order Processing
- Validating and confirming order details.
- Allocating stock and reserving inventory for orders.
- Generating pick lists for warehouse staff to collect the items.
Picking, Packing, and Shipping
- Efficiently picking products from the warehouse shelves based on the generated pick lists.
- Packing items securely to prevent damage during transit.
- Creating shipping labels and documentation required for the delivery process.
- Coordinating with shipping carriers to ensure timely dispatch of orders.
Order Tracking
- Providing customers with real-time updates on the status of their orders.
- Enabling customers to track their shipments through integrated tracking systems.
Handling Returns
- Managing the return process efficiently, including receiving returned items, inspecting their condition, and processing refunds or exchanges.
- Updating inventory levels to reflect returned stock.
Customer Communication
- Keeping customers informed throughout the order lifecycle, from order confirmation to delivery.
- Addressing customer inquiries and resolving issues promptly.
Reporting and Analytics
- Generating reports on order performance, such as order volume, processing times, and fulfilment rates.
- Analysing data to identify trends, optimise processes, and make informed business decisions.
Effective order management is essential for maintaining smooth operations, reducing errors, and providing a positive customer experience. By leveraging advanced order management systems, businesses can automate many of these tasks, leading to increased efficiency and accuracy in handling orders.
What is Order Management Software?
Order management software (OMS) is a system designed to streamline and automate the process of receiving, tracking, and fulfilling customer orders. OMS integrates various functions involved in order management, enabling businesses to manage their sales, inventory, and fulfilment operations efficiently from a single platform. Here’s an in-depth look at what OMS entails:
Centralised Order Management
- Consolidates orders from multiple sales channels, such as eCommerce platforms, marketplaces, and physical stores, into a single interface.
- Provides a unified view of all orders, making it easier to track and manage them.
Inventory Management
- Monitors stock levels in real-time across multiple locations and warehouses.
- Automates inventory updates as orders are placed and fulfilled, preventing stockouts and overselling.
- Provides tools for inventory forecasting and optimisation.
Order Processing Automation
- Automates key steps in the order processing workflow, including order validation, payment processing, and order confirmation.
- Generates pick lists and packing slips for warehouse staff.
- Ensures accuracy and speed in order fulfilment.
Shipping and Logistics
- Integrates with various shipping carriers to automate label generation, shipping rate calculation, and tracking.
- Optimises shipping routes and methods to reduce costs and improve delivery times.
- Provides customers with real-time tracking information.
Returns Management
- Streamlines the returns process, from receiving returned items to processing refunds or exchanges.
- Updates inventory levels to reflect returned stock.
- Provides tools for managing reverse logistics efficiently.
Customer Communication
- Sends automated notifications to customers at different stages of the order lifecycle, such as order confirmation, shipping, and delivery.
- Enhances customer experience by providing timely and accurate information.
Reporting and Analytics
- Generates comprehensive reports on sales, order fulfilment, inventory levels, and customer behaviour.
- Provides insights into operational performance and helps identify areas for improvement.
- Supports data-driven decision-making.
Integration Capabilities
- Seamlessly integrates with other business systems, such as CRM, ERP, accounting software, and eCommerce platforms.
- Ensures smooth data flow between systems, eliminating manual data entry and reducing errors.
Order management software is crucial for businesses looking to optimise their order fulfilment process, improve inventory management, and provide a seamless customer experience. By automating and centralising key functions, OMS helps businesses save time, reduce costs, and scale their operations effectively.
Who Can Benefit from Order Management Software?
Order management software (OMS) offers significant advantages to a wide range of businesses by enhancing efficiency, accuracy, and customer satisfaction. Here are some key types of businesses that can benefit from OMS:
eCommerce Businesses
- Efficiency in Handling High Volumes: eCommerce businesses often deal with large volumes of online orders daily. OMS helps automate order processing, inventory updates, and shipping, allowing these businesses to handle high order volumes efficiently.
- Multichannel Integration: For businesses selling on multiple platforms (e.g., Amazon, eBay, their own website), OMS provides a centralised system to manage orders from all channels, ensuring consistency and accuracy.
3PL Providers (Third-Party Logistics)
- Client Management: 3PL providers manage logistics for multiple clients, each with their own inventory and order requirements. OMS allows them to keep track of each client’s inventory and orders separately, ensuring accuracy and transparency.
- Scalability: As 3PL providers grow and take on more clients, OMS can scale with them, maintaining efficiency and reliability.
Retailers
- Unified Operations: Retailers often operate both physical and online stores. OMS helps streamline operations across these channels, providing a unified view of inventory and orders.
- Customer Experience: With OMS, retailers can ensure that online orders are processed quickly and accurately, enhancing the overall customer experience.
Manufacturers
- Production Coordination: Manufacturers need to align their production schedules with customer orders. OMS provides real-time visibility into orders, helping manufacturers plan production more effectively.
- Inventory Management: By tracking raw materials and finished goods, OMS helps manufacturers maintain optimal inventory levels and avoid production delays.
Wholesalers and Distributors
- Bulk Order Management: Wholesalers and distributors often deal with large, bulk orders. OMS helps manage these orders efficiently, ensuring timely fulfilment.
- Inventory Across Locations: For businesses with multiple warehouses or distribution centres, OMS provides tools to manage inventory across various locations, optimising stock levels and reducing costs.
Subscription-Based Businesses
- Recurring Orders: For businesses offering subscription services, OMS can automate the management of recurring orders, ensuring timely deliveries and accurate billing.
- Customer Retention: By providing reliable and timely order fulfilment, OMS helps maintain customer satisfaction and loyalty.
B2B Businesses
- Complex Order Requirements: B2B businesses often have complex order requirements, including bulk orders and specific delivery schedules. OMS helps manage these complexities efficiently.
- Customer-Specific Pricing: OMS can handle different pricing structures and discounts for various clients, ensuring accurate billing and invoicing.
What Are the Top Order Management Software Providers for eCommerce?
Despatch Cloud is a comprehensive, all-in-one order, shipping, and warehouse management software designed to streamline eCommerce and 3PL operations. Our platform centralises order management across multiple sales channels, integrates seamlessly with over 150 couriers, and supports 80+ eCommerce platforms.
With features like automated shipping, real-time inventory updates, and advanced returns management, Despatch Cloud helps businesses of all sizes enhance efficiency, reduce errors, and improve customer satisfaction. Whether you’re a small business or a large enterprise, our scalable solutions can grow with you, ensuring your operations run smoothly and effectively.
- Key Features: Centralised order management, multichannel integration, inventory management, automated shipping, returns management.
- Unique Selling Proposition: Seamless integration with 150+ couriers and 80+ eCommerce platforms, user-friendly interface, transparent pricing structure, scalable.
- Pricing: Flexible pricing plans to suit various business sizes. Free up to 100 orders/month.
Brightpearl is a robust retail management software designed to help businesses streamline their operations from end to end. It combines inventory management, order processing, accounting integration, and CRM into one powerful platform, making it an ideal solution for retailers looking to manage all aspects of their business from a single interface.
- Key Features: Inventory management, order processing, accounting integration, CRM.
- Unique Selling Proposition: End-to-end retail management with built-in accounting.
- Pricing: Custom pricing based on business needs.
Linnworks offers a comprehensive multichannel order management solution that helps businesses automate their operations and control their inventory across multiple sales channels. With extensive integrations with major marketplaces and shipping carriers, Linnworks simplifies the order fulfilment process, making it a favourite among eCommerce businesses.
- Key Features: Multichannel order management, inventory control, shipping management.
- Unique Selling Proposition: Extensive integrations with major marketplaces and shipping carriers.
- Pricing: Custom pricing based on business needs.
Orderwise is a powerful ERP software designed to provide businesses with a complete suite of tools for managing their operations. From inventory control and order processing to warehouse management and ERP integration, Orderwise delivers a comprehensive solution tailored to the needs of growing businesses.
- Key Features: ERP integration, warehouse management, order processing, inventory control.
- Unique Selling Proposition: Comprehensive ERP solution tailored for growing businesses.
- Pricing: Custom pricing based on modules and users.
Mintsoft is a versatile order fulfilment and warehouse management software tailored specifically for eCommerce retailers and 3PL providers. With strong courier integration capabilities, Mintsoft ensures efficient and accurate order processing, making it an excellent choice for businesses handling large volumes of orders.
- Key Features: Order fulfillment, inventory management, warehouse management, courier integration.
- Unique Selling Proposition: Ideal for 3PL providers with extensive courier integrations.
- Pricing: Starts at £159/month for eCommerce retailers and £375/month for 3PLs.
Veeqo is a cloud-based inventory and order management software designed to help eCommerce businesses manage their operations more efficiently. With real-time inventory updates, seamless shipping integration, and returns handling, Veeqo provides a comprehensive solution for businesses looking to streamline their order fulfilment process.
- Key Features: Inventory and order management, shipping integration, returns handling.
- Unique Selling Proposition: Designed for eCommerce with real-time inventory updates.
- Pricing: Free.
Choosing the Right Order Management Software
The best order management software for your business will depend on your specific needs and goals. Here are some important factors to consider when making your decision:
Order Volume
- Assess the number of orders you process daily, weekly, and monthly.
- Choose software that can scale with your business as order volumes increase.
Integration Requirements
- Ensure the software integrates seamlessly with your existing eCommerce platforms, marketplaces, and other systems.
- Look for compatibility with popular platforms like Amazon, eBay, Shopify, and your ERP or accounting software.
Budget
- Determine your budget for order management software, considering both initial costs and ongoing fees.
- Compare pricing plans to find one that offers the best value for your needs.
User-Friendliness
- Evaluate the software’s interface and ease of use.
- Ensure it provides a smooth onboarding process and offers sufficient training resources.
Automation Capabilities
- Look for features that automate key tasks like order processing, inventory updates, and shipping label generation.
- Automation can save time and reduce manual errors.
Reporting and Analytics
- Choose software that provides comprehensive reporting and analytics.
- These insights can help you make data-driven decisions and optimise your operations.
Customer Support
- Consider the level of customer support provided, including availability and response times.
- Check if they offer various support channels like phone, email, and live chat.
Customisation Options
- Ensure the software can be customised to fit your specific business processes and requirements.
- Customisation can include workflows, reporting formats, and user permissions.
Scalability
- Select a solution that can grow with your business, handling increased order volumes and additional sales channels.
- Scalability is crucial for long-term success.
Return Management
- Look for integrated return management features to handle customer returns efficiently.
- This can enhance customer satisfaction and streamline your reverse logistics process.
Security
- Ensure the software has robust security measures to protect your data and customer information.
- Look for compliance with industry standards and regulations.
By carefully considering these factors, you can choose the best order management software that aligns with your business needs and helps you achieve your goals.
Conclusion
Choosing the right order management software is crucial for optimising your eCommerce operations. Each of the solutions we’ve highlighted – Brightpearl, Linnworks, Despatch Cloud, Orderwise, Mintsoft and Veeqo – offers unique features and benefits tailored to different business needs. Whether you prioritise seamless integrations, robust automation, scalability, or comprehensive analytics, there is a solution out there for you.
Remember, the best order management software for your business will depend on your specific needs and goals. Assess factors like order volume, integration requirements, budget, and scalability to make an informed decision that will support your growth and enhance customer satisfaction.
Ready to take your order management to the next level?
Try Despatch Cloud’s order management software today and discover how it can transform your operations. Start your free trial now and take the first step towards a more efficient and profitable business!
