OMS – Order Management System Definition – Benefits, Types of OMS systems, Implementation, Tips, Common Maintenance Problems

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Home / Glossary index / OMS – Order Management System Definition – Benefits, Types of OMS systems, Implementation, Tips, Common Maintenance Problems

What Is An Order Management System (OMS) ?

An order management system or OMS, is a software application that enables retailers to manage inventory and orders from a single platform . An OMS can automate and streamline many of the tasks associated with order management, such as processing orders, managing inventory levels and generating reports .

An OMS can be integrated with other business systems, such as an ecommerce platform, accounting software and a customer relationship management (CRM) system . This allows businesses to manage their entire order lifecycle from a single platform .

There are many benefits of using an OMS, including increased efficiency, accuracy and visibility into the order process . An OMS can also help businesses to scale their operations and manage growth .

To learn more about how an OMS can benefit your business, read on for a comprehensive guide to the Order Management System .

What Are The Benefits of Using An OMS ?

An Order Management System or OMS, can be a great asset for businesses that need to keep track of inventory and manage orders . Here are some benefits of using an OMS :

  • Better inventory management :

With an OMS in place, businesses can get a better handle on their inventory levels . This can help them avoid stock outs and overages and keep better track of what they have on hand .

  • More efficient order processing :

An OMS can help streamline the order processing workflow, making it faster and easier to get orders out the door . This can free up time for other tasks and make sure that customers receive their orders more quickly .

  • Improved customer satisfaction :

By making the ordering process more efficient and accurate, businesses can improve customer satisfaction . This can lead to repeat business and positive reviews/word-of-mouth marketing .

All in all, an Order Management System can be a valuable tool for businesses that want to improve their operations . If you’re considering implementing one, be sure to weigh the benefits against the cost to see if it’s right for you .

What Are The Types of OMS Systems ?

An order management system (OMS) is a software application that enables businesses to manage orders from a variety of sources – including electronic commerce (ECommerce) platforms, call centers, field sales staff and in-store purchases .

There are generally four types of OMS systems :

  • OMS Systems that are designed for use by businesses that sell through multiple channels :

This type of system includes features that allow businesses to track inventory levels across all their sales channels and locations . It also includes features that enable businesses to route orders to the appropriate fulfillment center based on real-time inventory availability .

  • OMS Systems that are designed specifically for businesses that sell through a single channel :

This type of system includes features such as order tracking, customer management and fraud detection . It is typically either an ECommerce platform or brick-and-mortar stores

  • On-premise OMS systems :

An on-premise OMS system is installed and run on a company’s own servers . This type of system offers the most customization and control but also requires a larger upfront investment and more in-house IT resources to maintain .

  • Cloud-based OMS systems :

A cloud-based OMS system is hosted by the software vendor . This type of system is often less expensive to implement and easier to maintain, but offers less customization and flexibility than an on-premise system .

Depending on the specific needs of a business, one type of OMS system may be a better fit than the other . However, there are also some hybrid OMS systems on the market that include features from multiple types of systems .

What Are The Steps in Setting Up an OMS System ?

There are many steps involved in setting up an OMS system . Here are some of the most important ones :

  • Define your business requirements :

What do you need your OMS to do for you ? What processes does it need to support ? What data does it need to capture and track ?

  • Choose the right software :

There are many different OMS software packages available on the market . Do your research and choose the one that best meets your needs .

  • Set up your hardware infrastructure :

Your OMS will need a server (or multiple servers) on which to run, as well as any other required hardware (such as barcode scanners) .

  • Install and configure the software :

Once you have everything in place, you’ll need to install and configure the actual software package . This can be a complex process, so be sure to follow all instructions carefully .

  • Train your staff :

Your employees will need to be properly trained on how to use the new system . Be sure to give them adequate time to learn all its features and capabilities before going live with it .

  • Test the system :

It’s important to thoroughly test your new system before putting it into production, to make sure that everything is working properly and nothing was overlooked during the setup process .

  • Go live !

Once you’re confident in your new OMS system, it’s time to start using it for real-world operations . Make sure you monitor its performance closely to ensure everything is running smoothly .

Setting up an OMS system can be a complex process, but these steps will help get you off to a good start . Make sure that you have the necessary infrastructure in place and well-trained staff ready before going live with your new OMS system .

What Are The Tips For Making An OMS Environment User Friendly ?

The following are tips for making an OMS environment user friendly :

  • Be sure to have a clear and concise navigation structure . Users should be able to easily find what they’re looking for and understand where they are in the system .
  • Make use of filtering and search functionality to help users narrow down their options and find what they’re looking for quickly .
  • Use consistent terminology throughout the system to avoid confusion .
  • Keep things as simple as possible – users should be able to accomplish their tasks with minimal clicks and effort .
  • Make use of tutorials, tooltips and other help features to assist users in understanding how to use the system .
  • Allow for customization options so that users can tailor the system to best meet their needs .
  • Periodically test the system with actual users to get feedback on how it can be improved .
  • Provide feedback on user actions and show progress indicators to help users track their progress .
  • Pay attention to user interface elements like fonts, colors, icons and layouts – these make a huge difference in user experience .
  • Be sure to update system documentation and user manuals as the system changes .

By using these tips, you can make your OMS environment user friendly and help users become more familiar with its features .

How To Integrate Other Systems with The OMS ?

An order management system (OMS) can have many different integrations with other business systems . The most common integrations are with accounting/finance, customer relationship management (CRM), warehouse management (WMS) and transportation management (TMS) systems .

Some of the benefits of integrating an OMS with other business systems include :

  • Eliminating duplicate data entry and reducing errors
  • Improving communication and coordination between departments
  • Ensuring that orders are fulfilled in a timely and efficient manner
  • Allowing for real-time visibility into the status of orders

The key to a successful OMS integration is to select a platform that is flexible and scalable . This will allow you to easily add or remove integrations as your business needs change .

The process of integrating other systems with an OMS can be complex and time consuming . It is important to assess your business needs and select an integration partner with the appropriate experience and expertise . They should be able to help you map out a plan for success and walk you through the implementation process .

What Are The 10 Most Common Problems Encountered When Maintaining OMS Software ?

As with any software, there are bound to be some issues that come up when you’re using an OMS . Here are 10 of the most common problems people run into :

  • Lack of proper training :

One of the biggest problems people have is not knowing how to use the software properly . Without proper training, it’s hard to get the most out of your OMS .

  • Lack of documentation :

Another common problem is that there isn’t enough documentation on how to use the software . This can make it difficult to figure things out when you’re stuck .

  • Outdated software :

If you’re using an older version of an OMS, you might run into some compatibility issues . This can make it difficult to use new features or connect with other systems .

  • Inflexible system :

A lot of times, people find that their OMS is too inflexible for their needs . It might not be able to handle certain types of orders or might not have the right integrations in place .

  • Poor customer support :

If you’re having trouble with your OMS, it can be frustrating if there’s no good customer support available to help you out . Make sure you know who to contact if you need help .

  • System crashes :

No one wants their system to crash, but it can happen from time to time . Be prepared for this by having a plan in place for how to recover lost data and get everything running again .

  • Security issues :

OMS software handles a lot of sensitive data, so it’s important to be aware of security vulnerabilities and have measures in place to protect your system .

  • Data integrity :

It’s crucial to make sure all of the data in your system is accurate and up-to-date . Not doing this can lead to problems with customer orders and other processes .

  • Lack of scalability :

If you’re looking to expand your operations, you may find that your OMS isn’t able to keep up with demand or handle increased volumes of orders .

  • Incompatible systems :

Making sure all the pieces of your OMS are compatible is key for ensuring smooth performance and avoiding errors or data loss .


We hope you now have a better understanding of what an Order Management System (OMS) is and how it works . OMSs are becoming increasingly sophisticated, with more features being introduced all the time to make order management easier .

Utilizing an OMS can help streamline and simplify your business processes, resulting in a better customer experience and increased efficiency . As such, implementing one could be just the right move for your company if you’re looking to get ahead of the competition .

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