How an Order Management System Optimizes Fulfillment and Reduces Costs
Ecommerce has completely transformed how retail businesses are run. Companies now have to manage exponentially rising sales as customers demand total convenience, ever-faster delivery and up-to-the-minute delivery updates – it can all be too overwhelming. Luckily, merchants now have access to a powerful management system to optimize and automate their backend operations: the order management system (OMS).
So, how does an order management system streamline the order process, maintain high customer satisfaction and reduce costs for your business? Here’s how:
Simplifying Fulfillment Through Smart Automation
Every second counts in ecommerce. Besides, a lot has to go right and in sequence from order placement to successful delivery. Managing orders manually or using outdated tools often ends in chaos and a lot of confusion. From inventory errors to missed shipments and frustrated customers, there’s a lot that could go wrong. A top-quality order management system brings choreography to this complex process by automating key steps in the fulfilment process through various systems. This brings about:
- Inventory accuracy:Through inventory management, the OMS can track stock levels across all locations simultaneously, allocate stock to order and ensure you never run out of popular items.
- Efficient routing:An OMS will autonomously assign the most optimal route for fulfilling orders, thereby reducing shipping delays.
- Repetitive task automation:A well-designed OMS handles repetitive tasks such as generating pick lists and printing shipping labels to save you time and ensure resources are maximally utilized.
It takes guesswork and indecision out of the order fulfillment process, which saves valuable time up and down the chain. When you factor in these elements, the seemingly small time savings here and there will add up quite quickly. What’s more, the optimized order accuracy and throughput achieved in the fulfilment stage generate secondary time and money savings for you in the following ways:
- Your customer service agents will spend less time responding to issues like shipping delays and incorrect inventory.
- Organized warehouse operations increase employee morale and productivity while also reducing the chances of accidents.
- The higher accuracy achieved across the board gives you more control and high-quality data to make quick management decisions.
The result? Faster, smoother fulfilment that keeps your customers coming back while also reducing bottlenecks and maximizing profits.
Slashing Costs Across the Board
Although eCommerce has revolutionized the traditional mould of retail and significantly reduced the cost of doing business, certain costs of doing business still linger. That said, technology-based solutions like order management systems allow you to reduce your costs further in not-so-obvious ways, such as:
- Employee time. Time is money. This may be a cliché, but it’s particularly true in eCommerce. An automated, cohesive order management system is the most effective way to optimize processes from receiving to delivery. Scanning items into inventory, deducting inventory when a purchase is made and producing pick lists are all done automatically, hence freeing up employee time for other tasks.
- Overhead Costs.A smart OMS spurs fulfillment accuracy and better use of warehouse space, which translates into lower utility costs. The streamlined pick/pack/ship options then lead to fewer shifts and less operating time.
- An automated OMS inherently uses less paperwork, printers and ink. Additionally, issuing inexpensive tablets to fulfilment employees eliminates expensive fixed computer terminals in the warehouse.
- Shipping costs.In addition to finding the most optimal shipping routes, an OMS can also help you to shop for the best shipping rates across a vast database of carriers.
- Packing materials.The OMS gives you exact information for materials needed to save time and eliminate waste. This includes identifying and combining orders going to the same customer.
Build Customer Loyalty Through Satisfaction
The most profound cost of inefficient fulfilment processes is lost customer trust. The customer of today has endless options and will not tolerate inconvenience.
A smart order management system like the one you can get from Deck Commerce will enable you to provide your customers with fast shipping, accurate orders, timely updates and an all-around pleasant shopping experience. Ready to get started? Visit deckcommerce.com today to evaluate your options.
