Order Management System & Its Uses for Business


As a business actor, the order management system is one of the platforms that you need to understand well.

The reason is, the order management system or abbreviated as OMS can make it easier for you to adjust inventory in the process of buying and selling transactions. 

In addition to being more efficient, the order fulfillment process will also be much faster and with minimal expenses. 

Let's see more about what an order management system is and its uses in business in the following article!

What is an Order Management System?

Basically, the order management system is a system for managing orders from a customer in the sales process.

In this case, the CSO will track, receive, and record each order and process it into a database.

Thus, business actors can follow up or fulfill these orders systematically so that buying and selling transactions occur.

In a way, the order management system is an e-commerce system that accommodates order data information, customers, as well as updating stock in the warehouse (inventory). 

OMS itself begins when a customer places an order, then ends when the customer has received the related product. 

Benefits of Using an Order Management System 

The uses of the e-commerce order management system are as follows.

1. Provide reliable & real-time data

The main reason why you need to use an order management system is because of the availability of reliable data from orders.

This system will allow a business to simplify the ordering process so that the speed of order fulfillment to customers can be optimized. 

In addition, all order data in the CSO also flows in real-time. That way, you can meet customer demands efficiently and according to standards.


2. More efficient order fulfillment 

Another benefit of an order management system is that it makes the order fulfillment process much more efficient. 

As mentioned earlier, CSOs can receive and log any incoming data in real-time. 

On the other hand, the system also minimizes the possibility of errors in the order fulfillment process because the management has been automated. This is the reason why CSOs are called to provide reliable data. 

Therefore, in order to achieve high customer service standards, you can provide accurate data through CSOs.

3. Maintain a balance of stocks

The e-commerce order management system is an order management system that also helps control the stock of goods in the warehouse to be more controlled.

This is because CSOs will prevent shortages and excess stocks from occurring which can then have an impact on sales results. 

OMS helps you ensure stock calculations so that you can provide the required quantity according to customer requests. 

4. Increase productivity

Because the process becomes much more efficient, this will ultimately affect the level of business productivity.

Yes, the more efficient your business is in carrying out order fulfillment, the more productive the operations and turnover of goods will be. 

The real-time data provided by CSOs also makes it easier for you to track orders, thereby maintaining accountability and transparency.

5. Save time  

The next use of the order management system is to make performance in business operations much faster and save time. 

You can fulfill orders and rotate the stock of goods in the warehouse according to the right time at the same time.

That way, you can focus on development strategies to encourage business growth.

Module on Order Management System 

Well, the various uses of CSOs above are in fact inseparable from the modules that support them. The modules in the order management system are as follows.

1. Customer information 

One of the modules in the e-commerce order management system is a record of information and data from customers who place orders.

2. Product information 

In addition to customer information, CSOs also provide product modules. Thus, customers can choose the desired product to be purchased until a transaction occurs.

3. Order recording 

Another stage in the order management system is order recording, where the OMS will record every order that enters the database.

4. Order processing

After the order is recorded, the OMS will follow up on the related order to then be processed and fulfill the order from the customer. 

5. Invoice 

Then, there is also an invoice, which is a written document that is printed by business actors and serves as proof of payment bills to customers.

Thus the dicussion about the meaning and use of an e-commerce order management system for business.

In a way, the order management system is one of the important aspects in the supply chain. 

Because, the application of OMS in a business will have a lot of influence on the level of performance and warehouse management.