Enhancing Efficiency and Accuracy: The Benefits of Order Processing Automation

As retail businesses grow, so do the demands on the way they handle orders. A scalable Order Management System (OMS) allows businesses to efficiently handle increasing volumes of orders, customers, and inventory without compromising performance. An OMS that scales with the business ensures that these demands are met seamlessly, allowing for smooth operations and consistent customer satisfaction.

However, failing to scale with an order processing software can pose significant risks. Businesses that don't invest in a scalable system may encounter operational bottlenecks, such as delayed order processing and fulfillment, leading to frustrated customers and lost revenue. Additionally, without the ability to manage a growing volume of orders and inventory, businesses risk errors in stock levels, shipping, and customer communications, which can harm their reputation and bottom line. In a competitive market, these inefficiencies can stall growth and give competitors the edge.

Understanding Scalability Needs

Before retailers can effectively scale their operations, it’s crucial to evaluate their existing order management processes. Start by mapping out the entire order lifecycle, from order capture to fulfillment and returns. Identify where bottlenecks occur, whether in order routing, inventory visibility, or customer communication.

Consider the limitations of current systems—can they handle peak season surges? Do they integrate seamlessly with other essential platforms like CRM, ERP, and POS systems? This assessment should highlight pain points, such as slow processing times, frequent errors, or the inability to manage multiple sales channels, which could hinder scalability.

Understanding current limitations is only part of the equation; retailers must also anticipate future needs. Start by analyzing market trends and projected growth rates within your industry. Consider potential expansions—whether it’s entering new geographical markets, launching additional product lines, or increasing online presence.

Use data analytics to predict order volumes during peak times and assess the impact of these increases on your existing systems. By forecasting these demands, you can better understand what capabilities your OMS needs to support future growth without sacrificing efficiency or customer satisfaction.

Choosing the best OMS for retail isn’t just about meeting immediate needs; it’s about aligning with your long-term business strategies and growth objectives. Consider where your business aims to be in the next five to ten years.

Are you planning to expand internationally, diversify product offerings, or enhance customer experiences through omnichannel capabilities? Our recommendations for an OMS is that it should be flexible and robust enough to adapt to these evolving goals. It should support advanced features like distributed order management, global inventory visibility, and seamless integrations with new technologies.

By aligning your OMS capabilities with your business goals, you ensure that your system can scale alongside your growth, supporting sustainable expansion and long-term success.

Here is a quick guide that summarizes what we just covered.

Identify Your OMS Needs

1. Assess Current Capabilities

Map Out the Order Lifecycle: Document each stage of the order process from capture to fulfillment and returns.
Identify Pain Points: Pinpoint bottlenecks or inefficiencies (e.g., slow order routing, poor inventory visibility, lack of customer communication).
Evaluate System Integration: Check how well your current systems integrate: ERP, storefront and spreadsheets. If you currently have an OMS, evaluate how it integrates with CRM, ERP, POS systems, and other tools.

2. Forecast Future Demands

Study Market Trends: Research industry trends, consumer behavior changes, and technological advancements.
Project Growth: Estimate your future order volumes based on historical data and planned business expansion.
Plan for Expansion: Consider potential growth areas, including new product lines, geographical markets, or increased online presence.

3. Align OMS Capabilities with Business Goals

Set Strategic Goals: Outline your business’s long-term goals, such as entering new markets or expanding product lines.
Identify Required Features: Determine the features needed in an OMS to support these goals (e.g., global inventory management, advanced order routing).

System Architecture: How to Analyze OMS Functionality

Understanding the architecture of your order management software is crucial for ensuring it can scale effectively with your business. Here’s a breakdown of the essential architectural qualities you should be looking for.

Essential Architectural Qualities

Flexibility: The system should easily adapt to changing business needs, including new sales channels, diverse product lines, and fluctuating order volumes.
- Why It Matters: Flexibility ensures that the OMS can accommodate business changes without requiring a complete overhaul or significant modifications.
Robustness: The system must handle large volumes of transactions, complex order workflows, and high peak loads with reliability.
- Why It Matters: A robust architecture minimizes downtime and maintains performance levels during periods of high demand.

Adaptability: The OMS should integrate seamlessly with other business systems (e.g., CRM, ERP) and support emerging technologies.
- Why It Matters: Adaptability ensures the OMS can evolve with technological advancements and business growth, maintaining operational efficiency.

Scalable Features of an OMS

Besides considering OMS architectural qualities, there’s a set of features that should be observed to get a scalable OMS.

Cloud-based OMS

This offers real-time access to data from any location with internet connectivity. Improved data accessibility enhances collaboration, supports remote work, and provides up-to-date insights for decision-making.

Additionally, they allow scaling resources up or down based on demand. This includes adding new features or expanding storage as needed. Businesses can quickly adapt to market changes and seasonal fluctuations without investing in additional physical infrastructure.

Modular design

A modular OMS design allows for easier upgrades and integration as the business grows. But what do we mean by modular? Modular systems consist of independent components or modules that can be upgraded individually without affecting the entire system. This approach simplifies the process of adding new features or improving existing ones, reducing downtime and disruption.

Elastic Load Balancing

This technology efficiently distributes incoming network traffic across multiple servers, ensuring that no single server is overwhelmed. By balancing the load, businesses can maintain system reliability and performance, even during peak demand periods. This ensures a smooth and uninterrupted user experience, which is essential for handling high volumes of orders and maintaining customer satisfaction.

API-first architecture

APIs (Application Programming Interfaces) allow the OMS to integrate with other tools, such as CRM systems, ERP solutions, and third-party applications. However, not all OMS integrate easily. Having an OMS with API-first architecture simplifies the process of adding new features and integrating with emerging technologies. As your business grows and evolves, an easy-integration OMS allows you to work with APIs and continue to meet your changing needs.

Multitenancy Support

This is particularly valuable for businesses looking to expand into new markets or manage multiple brands. Multitenancy refers to a mode of software operation that allows a single OMS instance to serve multiple clients or business units, each with its own data and configurations. This feature enables businesses to efficiently manage diverse operational needs from a unified system, making it easier to scale and adapt as new market opportunities arise.

Incorporating these scalable features ensures that your OMS can effectively handle growth and adapt to changing demands. By investing in these capabilities, you position your OMS to support your business’s expansion and maintain high levels of performance and efficiency as you scale.

Real-World Success Stories: Scaling with OMS

Understanding the importance of scalability in an OMS is one thing, but seeing it in action brings the concept to life. One company that successfully navigated the complexities of scaling with a robust OMS is Newell Brands. This case study highlights how Newell Brands leveraged Deck Commerce OMS to streamline operations and support its growing portfolio of sixty brands.

Case Study: Newell Brands

Newell Brands, managing sixty brands, needed a scalable solution to integrate complex systems and streamline operations. Deck Commerce’s cloud-based OMS proved to be the ideal choice.

Key Takeaways:

Unified Inventory Management: Deck Commerce consolidated inventory into a single, real-time source, enhancing operational efficiency and decision-making.
Customizable Configurations: The flexible OMS allowed Newell to tailor settings for each brand, reducing system complexity and streamlining management.
Cost Savings: Transitioning to Deck Commerce saved over $50,000 per brand compared to legacy systems, with quicker onboarding and efficient multi-channel management.
Enhanced Customer Service: Integration with CRM improved service by providing real-time updates and self-service options, reducing call center inquiries.
Scalability and Agility: The cloud-based, modular design enabled rapid site launches and adaptability to market demands.

This success story illustrates how a well-chosen OMS can not only meet the demands of today but also provide the flexibility and scalability needed for future growth.

Scale Your Business With Deck Commerce

A scalable OMS not only supports your growth but also ensures your operations remain agile and efficient as you navigate evolving market demands and opportunities. If your current OMS isn't meeting your scalability needs or is holding back your growth, it might be time to consider an upgrade.

Deck Commerce offers a state-of-the-art, cloud-based solution designed to adapt to your evolving needs and support your long-term goals. Review your existing systems and evaluate whether Deck Commerce can provide the scalability and efficiency your business requires. We can help assess your needs today. Talk to an OMS expert and get a demo.