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What Is An Order Management System?

May 18, 2022

Getting orders from customers requires a robust fulfillment system that can capture order information, process those orders, pick and pack products, and send the packages for shipment. However, businesses use a wide variety of sales channels to obtain customer orders. Using an order management system provides a centralized location to process all orders and maintain the right inventory levels — no matter which sales channels are used.

The Basics

Order management encompasses the entire order fulfillment process. It starts from the moment a customer places an order and ends when the customer receives the shipment. How a company processes and fulfills an order may vary.

Some companies handle orders directly and gather the items from their warehouses for delivery. Other businesses may allow a fulfillment center to complete the order processing and shipping tasks. Still another company may have the manufacturer manage certain orders, such as special, custom-made products that are only produced when an order is received.

A company may rely on just one type of order fulfillment method or multiple methods at once, depending on the types of products they sell. When a company has so many methods, it can become difficult to track orders. Errors may occur that impact inventory levels. If these errors get into the inventory system, a company may order too much or too little inventory. This problem could create waste; use valuable warehouse space; lead to dissatisfied customers; and raise operational expenses.

Order management systems provide centralized locations for all customer orders. Instead of orders being sent to multiple distribution and fulfillment companies, they are managed in one place. This way, the correct fulfillment system can be chosen for each order, allowing salespeople to coordinate the processes among their fulfillment and distribution centers.

Whether your business is working with B2B customers or you’re an e-commerce shop selling products directly to consumers, these management systems ensure that stock information remains accurate. Managing your orders can help prevent the company from overstocking or understocking on products. An e-commerce order management system tackles waste and inefficient processes by minimizing order processing mistakes.

AMS Fulfillment Capabilities

Depending on the season or time of year, your company may experience changes in your fulfillment capabilities. A growing business may need more versatile order management processes when adding more products to the sales offerings. Other companies may expand their sales channels to include additional fulfillment methods. At AMS, we offer order management and fulfillment services for e-commerce companies.

Our automated, end-to-end order fulfillment solutions are tailored to our client’s needs. We centralize the entire process to manage orders, store inventory, fill orders and send shipments. Our experience and technology allow you to successfully manage inventory levels to lower costs and prevent waste, all so you can spend more time on other business operations. For more information, contact AMS today.