As the ecommerce industry grows by the minute, it has become clear to all business directors that efficiency in order management is crucial. As has happened with many other processes, automation has become a must to reach business goals and be competitive.
But what is order management automation (otherwise known as order orchestration or order routing)? OMA uses technology to streamline orders from various sales channels, reducing manual intervention and errors. This process involves integrating:
Automation significantly boosts efficiency and reduces errors. A 2023 study found that 54% of top U.S. ecommerce executives have implemented new or enhanced fulfillment processes to speed up order processing.
Let's explore how order management automation works, its key features, and the benefits it offers to businesses like yours.
Modern order management systems are changing the way omnichannel commerce operates. Let's delve into some key advantages:
1. Streamlined Order Processing
Automating order management processes can slash processing times from minutes to seconds, saving brands time, and in consequence, saving money. By integrating software solutions, businesses can automate order capture, processing, and fulfillment, significantly reducing manual intervention and processing times.
Case Study - How Global Footwear Brand Automated 98% of Its Order ProcessesA global footwear retailer transformed its fulfillment process by automating 98% of orders with Deck Commerce's OMS, saving over 1,000 hours. This 20+ year partnership began in 1998 and evolved in 2015 to tackle omnichannel challenges. The OMS streamlined order processing, inventory management, and data integration, reducing errors and enhancing customer experiences. With 99.99% site uptime and smart fulfillment routing, the retailer became one of the world’s most agile brands. |
2. Real-Time Inventory Management
Automated order management systems play a pivotal role in maintaining accurate and up-to-date inventory data across all sales channels. This real-time visibility into inventory levels enables businesses to optimize stock levels, prevent stockouts, and ensure timely order fulfillment. This is especially crucial during peak sales seasons such as Black Friday or special events. While during the rest of the year, inventory might seem manually manageable for some companies, seasons with high order volumes demand tighter control and monitoring that only automation can provide.
3. Enhanced Customer Service
Can you relate to the frustration that comes from calling a company to follow up on a complaint and having to share all your data AGAIN with a new support agent? With a robust order management automation solution, your buyers do not have to go through this. By centralizing order and customer data, these systems empower support employees with all the data they need to provide a class-A service for your buyers.
4. Amplified Customer Experience
Did you know 92% of consumers abandon a brand after a single bad experience? This means that customer service needs to be a priority, and though it might not seem obvious, an order management system can widely assist with that matter.
An OMS can help you deliver orders faster by shipping from the best location, provide convenient omnichannel fulfillment options, give your customer real-time data on an order’s status, and prevent overselling items due to inaccurate inventory.
It’s not a surprise that in the U.S., leading technology retailers are prioritizing customer experience.
When selecting an order management system, you want to make sure it possesses certain key features to maximize efficiency and support business growth. Here are some essential features to look for:
1. Integration Capabilities
When your order management system doesn’t integrate with your other essential business systems, such as ecommerce platforms, CRM systems, and financial software, it can lead to significant operational inefficiencies. Disconnected systems result in data silos, manual data entry errors, and delays in processing, which can hurt your overall customer experience.
A robust automated order management system should offer seamless integrations with top ecommerce platforms, CRM systems, and financial software. This way you ensure data flows smoothly across all systems, providing a unified view of all operations. Ultimately, this empowers teams across your organization, making their jobs easier and their time more efficient.
2. Scalability and Configurability
You cannot work with software that is not willing to grow with your company. If your order management system lacks scalability, it may struggle to handle increasing order volumes, new sales channels, and additional product lines. This limitation can result in bottlenecks, reduced efficiency, and an inability to meet customer expectations.
Although there is no perfect software that will foresee everything that happens in the future, you should make sure that the one you choose has enough flexibility to be valuable for years to come. It should be able to handle more sales, support new channels, and allow for customization to meet specific business requirements. This flexibility ensures the system remains efficient and effective as the business grows.
3. Omnichannel Fulfillment
Industry research shows that 73% of customers prefer shopping through multiple channels. Today’s buyers expect a seamless shopping experience across all channels, whether they are shopping online, in-store, or through a mobile app. Through omnichannel strategies, each cross-channel touchpoint provides customers with a unified experience they can easily engage.
The right order management automation solution can bridge the gap between multi-channel chaos and a solid omnichannel fulfillment strategy. Take into account the case of the famous and beloved teddy bear company Build-A-Bear. They decided to partner with Deck Commerce during the pandemic to expand their retail opportunities and migrated to omnichannel in only 4 weeks. The results:
Adopting a new tech solution that will affect all the processes in your company is not a decision that should be taken lightly. That’s why you should consider potential obstacles that might come up during implementation to make a transition as smooth as possible.
Here are some common obstacles brands face and potential solutions to make a swift transition:
|
Common Problems |
Potential Solutions |
|
Data Migration Challenges |
Do phased rollouts. Start with a pilot phase to test the system with a small subset of data and processes, making adjustments as needed before full-scale implementation. |
|
Cost-Related Approval Issues |
Highlight long-term cost savings by reducing manual processes, decreasing errors, and improving efficiency. |
|
System Adoption |
Implement ongoing training programs, regular workshops, and support resources to ensure staff proficiency and adaptability to new features and updates. |
Finally, it’s vital to select the right technology partner to assist you with this big change. Choose a partner with proven capabilities, strong third-party endorsements, and experience with similar implementations to ensure smooth transitions and valuable insights.
If you have decided to implement an automated order management system, you probably want to know the impact it’s having on your numbers. Here are a few KPIs to track to make sure your solution is going above and beyond for your business:
|
KPI |
Description |
Why It Matters |
How to Track |
|
Order Processing Time |
Measures the average time from order placement to fulfillment. |
Reducing order processing time enhances customer satisfaction and boosts operational efficiency. |
Monitor timestamps from order entry to shipment confirmation within the OMS. |
|
Inventory Accuracy |
Tracks the precision of inventory levels across all sales channels. |
Maintaining accurate inventory prevents stockouts and overstock situations, ensuring better customer service and optimized inventory costs. |
Conduct regular inventory audits and compare system data with physical counts. |
|
Order Accuracy |
Measures the percentage of orders fulfilled without errors. |
High order accuracy reduces returns and increases customer satisfaction. |
Compare the number of correctly fulfilled orders to the total number of orders shipped. |
|
Customer Satisfaction Scores |
Utilizes customer feedback and satisfaction surveys to gauge the impact of order management automation. |
Direct feedback from customers provides insight into the effectiveness of your order management process automation. |
Implement post-purchase surveys and monitor Net Promoter Scores (NPS). |
|
Return Rates |
Monitors the percentage of orders that customers return. |
Lower return rates indicate higher order accuracy and customer satisfaction. |
Compare the number of returned orders to the total number of orders shipped. |
|
Shipping Time |
Measures the average time taken for an order to reach the customer once shipped. |
Fast shipping times are crucial for customer satisfaction and can be a competitive advantage. |
Track the duration from shipment to delivery using tracking data. |
|
Fulfillment Costs |
Tracks the cost associated with fulfilling each order. |
Lower fulfillment costs contribute to higher profit margins. |
Analyze the costs related to warehousing, picking, packing, and shipping. |
By monitoring these KPIs, you can effectively measure the impact of your order management processes, ensuring it delivers tangible benefits to your business.
If you're looking to improve efficiency and better serve your customers, consider exploring automated order management systems like Deck Commerce. By integrating the right tools, you can streamline your operations and support your business's growth. Take a step towards more efficient order management and see the difference it can make for your organization. Talk to an expert today!