As businesses expand their reach to different channels and the economy gets more and more competitive and fast-paced, managing orders effectively has become a significant challenge for businesses.
The explosion of order and delivery channels, the more complex global supply chain, the raising expectations of customers and consultants, and the need to ensure uniformity across different channels, represent new challenges for businesses.
To stay ahead of the competition, businesses need to streamline their operations and embrace technology.
This article explores why businesses need to adopt an Order Management System (OMS) to address these pain points.
Multi-channel management for Orders and Deliveries
With the advent of e-commerce, businesses are selling through multiple channels including online marketplaces, social media platforms, mobile apps, and their own websites.
94% of companies believe that managing a complex global supply chain is critical to their success. (source Accenture)
Global e-commerce sales are projected to increase 12.2% year-over-year, to 6.3% trillion in 2023. This represents a significant increase from 3.53 trillion USD in 2019. (source eMarketer)
With so many moving parts, it can be challenging to manage inventory levels, ensure timely delivery, and maintain quality control. Without a centralized system to manage orders, businesses risk losing track of orders, making errors in order processing, and failing to meet customer expectations. This can lead to dissatisfied customers, negative reviews, and ultimately loss of revenue.
Complex Global Supply Chain
The global supply chain has become more complex in recent years: companies are dealing with more suppliers and partners than before, especially due to the increase in cross-border trade.
The value of cross-border e-commerce is expected to exceed 2.1 trillion USD in 2023, up markedly from 1.9 trillion USD in 2022. This represents a significant increase of 13% in a single year.
The main challenges are the effective management of a global, multi–locations supply chain and the problems with customs clearance.
Raising Expectations of Customers and Consultants
Customers and consultants have become more demanding, expecting faster delivery times, greater flexibility in delivery options, and personalized experiences.
63% of customers expect delivery within three days, while 13% expect delivery within one day.
98% of customers expect to be informed about their delivery status, and 88% expect to be able to track their delivery in real-time. (source Deloitte)
84% of customers say the experience a company provides is as important as its products and services. (source Salesforce)
Consultants who work with companies are also demanding more from their clients. According to a report by McKinsey, supply chain consultants are pushing companies to invest in advanced analytics, artificial intelligence, and automation.
Failing to meet these expectations, leads to dissatisfied customers and lost business.
Need to Ensure Uniformity Across Different Channels
Businesses selling through multiple channels face the challenge of ensuring uniformity in terms of pricing, promotions, and product information.
83% of customers expect the same level of service across all channels.
88% of customers expect consistent pricing across all channels. (source Accenture)
It can be really challenging to maintain a multi-channel, consistent brand experience for customers.
To address these pain points, businesses should adopt an Order Management System (OMS). An OMS is a software platform that enables businesses to manage orders and inventory across different channels and suppliers. By centralizing order management, businesses can streamline their operations, reduce costs, and improve the customer experience.
Here are some of the benefits of adopting an OMS:
- Improved order accuracy: With an OMS, businesses can reduce errors and improve order accuracy. By centralizing order management, businesses can ensure that all orders are processed correctly, regardless of the channel they came from.
- Faster order processing: An OMS can help businesses process orders more quickly, reducing delivery times and improving the customer experience. With automated workflows and real-time inventory updates, businesses can speed up the order fulfillment process.
- Better inventory management: With an OMS, businesses can gain greater visibility into their inventory levels and make more informed decisions about restocking and purchasing. By maintaining optimal inventory levels, businesses can reduce the risk of stockouts and overstocks.
- Improved customer experience: An OMS can help businesses deliver a more personalized and consistent customer experience across different channels. By centralizing customer data, businesses can provide personalized promotions and offers based on a customer’s purchase history and preferences, creating a more tailored shopping experience. By providing a single, seamless purchasing journey and personalized offers, an OMS can help businesses build customer loyalty and improve the overall satisfaction of their customers.
An OMS is essential for businesses to streamline their operations, reduce costs, and improve the customer experience. By centralizing order management, businesses can ensure that all orders are processed correctly, regardless of the channel they came from.
An OMS can help businesses gain greater visibility into their inventory levels and make more informed decisions about restocking and purchasing.
By providing a personalized and consistent customer experience across different channels, an OMS can help businesses build customer loyalty and improve overall satisfaction.
FLYX Order Management System acts as a middleware interconnecting your POS (and other 3rd party tools from your ecosystem) to activate new digital sales channels such as click&collect (web or app), kiosk, self-check-out, self-scan, mobile applications, home delivery aggregators and supports resellers to track sales, process orders, manage inventory, and streamline fulfilment with the goal of making sure products end up in the hands of the customers. It ensures that orders are delivered as expected, with full order transparency, quick shipping, and timely delivery.
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