Enhancing customer satisfaction with automated order management systems

To stay ahead of competitors and thrive, ecommerce businesses must provide fast, accurate, and transparent order fulfillment. That way, they will have an easier time attracting and retaining clients, improving their bottom line, and expanding their business.

That’s where automated order management systems (OMS) come in. Built to help businesses manage the entire lifecycle of an order, these platforms significantly boost order accuracy and processing speed, especially when integrated with other fulfillment tools, such as warehouse management systems (WMS).

Read on to learn how an OMS works, including how they enhance customer satisfaction through order automation. You’ll also learn about the main advantages they provide: improved order accuracy, faster order processing, and improved customer satisfaction.

Benefits of automated order management systems

An automated order management system or OMS is a software program that helps brands manage an order’s entire lifecycle, from order capture to returns. 

By centralizing order data across ecommerce platforms with an OMS, third-party logistics (3PL) providers can reduce manual errors, prevent overselling or stockouts, and boost customer satisfaction.

OMS platforms are often confused with WMS, another order fulfillment software often used with OMS. However, OMS and WMS serve different purposes. 

An OMS manages the entire order lifecycle. When a customer places an order, the OMS immediately captures the order details, checks to see if the items are available in the inventory, and reserves the items for the order. The OMS then works with the fulfillment center to pick, pack, and ship the order. The software updates the inventory once the order is shipped. It also sends a confirmation to the customer. 

Meanwhile, a WMS focuses on your internal warehouse operations. Key functions include:

• Tracking and managing inventory within the warehouse
• Optimizing storage location and space
• Assigning tasks to warehouse staff efficiently 
• Integrating with other systems, like enterprise resource planning (ERP) systems 
• Picking and packing 
• Managing returns and taking items back into inventory 

Although OMS and WMS play different roles in fulfillment, their value significantly increases when they integrate. A well-integrated system ensures seamless data flow between orders, inventory, and fulfillment. This gets rid of data silos, minimizes delays, and helps teams make smarter, faster decisions.

Request a free demo to learn more about Logiwa WMS.

Improving order accuracy with OMS

Enhanced order accuracy is one of the most measurable benefits of implementing an OMS. 

In high-volume fulfillment environments, accurate order fulfillment is essential to protecting profit margins and retaining customers. Even a low error rate can lead to significant consequences. For example, even if only 2% of 100,000 monthly orders were incorrect, you would have 2,000 errors, each of which could require costly returns, reshipments, and increased customer service time.

Here’s how improving order accuracy with OMS works.

Reducing manual errors through automation

Manual data entry and spreadsheet-based workflows are the main sources of fulfillment mistakes. In fact, human errors account for nearly two-thirds of fulfillment or inventory problems. 

OMS platforms mitigate these risks by automating the entire order process and automatically checking key details (i.e., shipping address formats and item availability) before proceeding to the next step.

Improving inventory visibility in real time

Another major cause of fulfillment errors is outdated or inaccurate inventory data. Without a clear, up-to-date view of the inventory, businesses may accept orders they can’t actually fulfill, leading to inventory distortions such as understocking and stockouts. 

OMS platforms solve this by continuously providing up-to-the-minute stock updates across all sales channels and fulfillment centers. As soon as a product is sold, returned, or restocked, inventory levels are automatically updated across the system. 

This real-time visibility significantly reduces stockouts and overstocks. As such, companies have a higher chance of avoiding costly inventory distortion, which, in 2023, cost retailers nearly $1.8 trillion.

Streamlining order processing in fulfillment centers

OMS doesn’t just boost order accuracy. It can also significantly make orders move faster through the fulfillment process. Here’s how.

Automating order entry and validation

Traditionally, order entry requires staff to manually input customer data, check stock availability, confirm payment, and verify shipping information. As they move to the next step, errors and delays can accumulate.

An OMS significantly reduces the risk of error and delay by automating order entry, validation, and confirmation processes. When a customer orders something, the OMS captures the relevant details, checks them against inventory and shipping rules, and starts fulfillment in seconds.

Efficient order routing and prioritization

A comprehensive OMS can also intelligently route and prioritize orders based on various criteria. For example, it can:

• Flag time-sensitive or express orders for priority handling so they can be fulfilled without delay
• Route shipments to the fulfillment center closest to the customer
• Group orders by warehouse capacity, shipping method, or product type

Because an OMS evaluates every order to determine the best path for it, it can drastically reduce time and costs, especially during peak seasons, flash sales, or unexpected demand surges.

Enhancing customer satisfaction through order automation

Last but not least, OMS adoption can significantly boost customer satisfaction. It accomplishes this by enhancing order accuracy and accelerating order processing. Here’s a breakdown of how the right OMS can boost customer satisfaction at every stage of the order journey.

Timely deliveries

When customers place an order, they expect timely delivery. An OMS makes it easier to meet that expectation by accelerating every step of the fulfillment process.

By adopting an OMS, businesses will experience fewer delays and errors. As such, they can more easily fulfill orders on time. Over time, this consistency builds trust and encourages repeat purchases.

As noted by Shopify, customers are much more likely to be satisfied with fulfillment when their orders arrive on time. Even one late order can significantly affect their perception of your brand, especially if the customer wasn’t kept informed.

Real-time order tracking

Today’s customers expect full transparency into their orders. They want to know when their order ships, where it is, and when it will arrive. 

An OMS empowers businesses to give customers this transparency by automating real-time tracking updates through automated customer notifications, built-in tracking pages for order updates, and synced carrier data. 

These features greatly improve transparency and prevent negative reviews resulting from poor communication. They also lighten the load on your customer service teams by automating updates, so customers get the information they need without reaching out for help.

Automated OMS are key to enhancing customer satisfaction

An increasingly competitive fulfillment landscape, where customer expectations are higher than ever, demands the adoption of an automated OMS.

There are many benefits of automated order management systems, including enhanced order accuracy and faster processing. As a result of adopting an OMS, you can expect fewer service issues, happier customers, and an incentivized staff who is motivated to work smarter rather than harder.

However, the true power of an OMS is only unleashed when it integrates seamlessly with the rest of your fulfillment tech stack. 

That’s where Logiwa IO comes in. As a cloud-native, AI-driven fulfillment management system (FMS) for high-volume, high-velocity fulfillment, Logiwa IO is built to grow 3PL, B2B, and DTC operations. During peak seasons, Logiwa IO customers experience up to 99% same-day shipping, 58% improved task efficiency, and a 38% increase in productivity.

Curious to see how Logiwa IO fits with your OMS and other real-time inventory management solutions? Request a demo today to see how the right FMS and OMS integration can streamline order processing in fulfillment centers.

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