Ask us about our complimentary Data Assessment to clean and enrich product data, improve conversions, avoid cart abandonment, and enhance customer experience. Learn more now!

While versions of warehouse management systems (WMS) and order management systems (OMS) have existed since large-scale commerce, the need for smart, agile, and scalable supply chain management solutions has never been greater. Why? Because as we’ve learned in the past couple of years, supply chain disruptions are inevitable, but failing customer expectations doesn’t have to be. According to Gartner, around 83% of businesses expect supply chains to enhance customer experience as a part of their digital strategy.

The answer to solving friction points in the supply chain doesn’t have to be rigid monolithic technology solutions that take forever to implement (and a fortune to onboard). Instead, organizations need solutions that are on the Cloud, driven by automation, and easily integrated with existing systems. 

While organizations and decision-makers might think, “Why fix it if it ain’t broken,” the real need for OMS and WMS may not always be evident at first glance. 

Read on to learn more about why you need OMS and WMS.


Why a WMS is Crucial For Your Business to Grow

Dealing with goods means managing warehouses. Besides planning day-to-day management of resources in the warehouse, inventory monitoring, and transportation, effective warehouse management also ensures improved functionality between multiple warehouses and distribution centers. With improved warehouse operations and inventory management, organizations can move closer to improving customer service and decreasing costs. In fact, leading companies use warehouse optimization software 75% of the time to improve results. 

Here are some reasons why your organization absolutely needs a robust warehouse management system (WMS):

  • Inventory management and control: With WMS, organizations can improve order fulfillment, decrease inventory levels, and reduce order cycle time with better visibility and control. With control at the lowest level of every unit and real-time inventory visibility, companies can respond to customer demands at an accelerated pace. 
  • Automation-driven efficiency: WMS allows organizations to automate several warehouse processes, including onboarding, picking, packing, and dispatch. It deploys automation and improvement at every step of warehouse operations, enabling teams to produce more in less time as they have everything they need when they need it. 
  • Improved tracking for better customer service: An efficient WMS can give companies the confidence to provide customers clarity on stock availability and improve picking accuracy so customers always get what they ask for. WMS also makes it possible to track shipments accurately in real time so you can serve your customers with complete transparency.
  • Better ROI: Pick the right WMS, and you can improve sales and drive margins by not just selling more, but also doing so faster and with greater accuracy. Higher speed, better visibility, and increased accuracy mean that your teams have to deal with fewer customer queries and customer support is simplified in the process.

Why You Need an Order Management System (OMS) 

The order-to-cash sales process is the foundation of operations for any organization dealing with goods-based transactions. The system used to manage this process is what we call the order management system. The journey of a client order has numerous touchpoints, from receiving an order to processing and fulfilling it. These touchpoints involve various moving parts such as warehouse accounting, customer support, delivery partners, etc. An OMS gives you a centralized view to keep track of customer orders, stock levels, sales records, and helps ensure that order-to-cash operations work as desired. Unsurprisingly, the market size for order management systems is expected to hit USD 1949.6 million by 2030, with a revenue CAGR of 7.1% (Reports And Data). 

These are some of the leading reasons why organizations need order management systems:

  • Accelerated order processing: OMS enables organizations to streamline end-to-end sales processes, from order reception to fulfillment, and do so efficiently and with accelerated order processing and delivery timelines. 
  • Improved inventory visibility: Order management systems give organizations better visibility into inventory status, which, in turn, enables them to manage stock levels better and avoid overstocking or out-of-stock scenarios. This also helps drive overall operational efficiency and reduce storage costs.
  • Automation-based efficiency: Organizations can leverage OMS automation to eliminate redundancies, decrease manual work, reduce labor costs, and, more importantly, dedicate more time to improving customer experience by reducing human error. This also helps drive data security across the board.
  • 24/7 access: A Cloud-based OMS means that teams can process orders anytime remotely, enabling them to process orders at a better rate and improve their ability to serve customers. 
  • Consolidated omnichannel capabilities: Handling inventories and other aspects o the order-to-cash cycle across multiple channels is complicated. OMS enables organizations to get a bird’s-eye-view of orders and inventory across channels and improve performance on various channels.

With all the disruptions we’ve experienced in the recent past, it has become increasingly clear that companies must focus on a supply chain that is adaptable and built to serve what matters the most – the customer. What Pivotree brings to the table is years of experience in supply chain management, and an ecosystem of technologies and partners that help deliver excellence every step of the way. With solutions that are easily integrated into existing systems and a much-required breakaway from monolithic technologies, these solutions are designed to remove friction in supply chains and drive growth through better customer experiences.

Jim Brochu

James Brochu
General Manager, Supply Chain

About Pivotree: Pivotree designs, builds, and manages frictionless commerce experiences for brands and their customers around the world. We provide end-to-end solutions and services in Commerce, Data Management, and Supply Chain for hundreds of brands globally.