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Expert Insight

Integration of order management system

Alain Kaddoum, Managing Director, Savoye Middle East, Savoye, shares about the limitless benefits of incorporating an order management system

The innovations and technological advancements being widely used in every step of business operations and managements brings limitless benefits and undoubtedly making work easy.

Software, hardware, and other AI-powered tools increase efficiency, save money and time, encourage, and facilitate connection among stakeholders. They also significantly reduce margin error and ensure smooth workflow. One example of such software is the Order Management System (OMS).

OMS is a software programme that allows managing of the order and its accurate inventory. It covers activities of the entire order management process such as taking, processing, receiving, and fulfilling a customer’s order received via omni channels. Companies of all sizes, in any industry with a supply chain, can greatly benefit from integrating this software as it enables cost optimization and yields service quality.

More businesses are seeing this value as noted in the increasing number of supply chain groups investing in this software.

Challenges of manual tasks
For years, order management in warehouses and supply chain groups are faced with challenges of doing manual tasks and numerous errors especially in order entry and inventory management. Data recorded on papers are often passed back and forth among departments within a supply chain, increasing risks and errors along the process.

The use of different software programmes also added up to the chaos, misunderstanding and miscommunication within the stakeholders, as this is not centralised and unified.

OMS addresses these with its ability to refine the order-to-fulfilment cycle for supply chain groups. The automation process in the system replaces the time and effort spent on manual work, and it gives control over the entire supply chain process. An OMS system also functions in optimisation of the logistics network, risks management, and reduction of the stock levels.

Meeting expectations
The rise of eCommerce activities also highlights the importance of having an OMS. It helps businesses meet the customers’ expectations such as being able to use any platforms to place orders, delivery or pick up options, and being able to return or exchange products.  In addition, it helps fulfill an order that involves multiple locations and enables businesses to handle increased sales volumes or demands.

The competitive business landscape today heightened the need for timely and standard delivery, and this has given a rise to the demand for automation systems and other AI tools. Logistics solution providers are coming up with improvised solutions to meet this as they aim to construct a responsive sector through a high performance and functional system like OMS.

Enable new interactions
As a benefit for businesses, OMS also enable new interactions between warehouses and stores, to an extent where any store can be a place for reception, preparation, picking, and delivery. Unlike enterprise resource planning and warehouse management systems, OMS implements assignment rules that previously weren’t available. This software requires information from other systems, and therefore needs to deal with interfacing and data reliability.

To protect your business, you need a clear perimeter in terms of functional coverage. Hence, to minimise risks, it is generally a good idea to start with inventory management and order orchestration followed by resource management, i.e., the preparation capacity of the warehouses and their interactions with the flow of transport.

Nevertheless, suffice it to say that while supply chain organizations focus on improving customers’ experience, solution providers are focused on improving the overall operations of these organisations. Both are aiming for a common goal- to meet demands and expectations.

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