How order management systems improve customer satisfaction

In 2023, 26% of leaders in warehouse management cited supply chain and shipping constraints as a top challenge. Meanwhile, 27% worried about increasing labor costs. These concerns can create even bigger problems for high-volume fulfillment warehouses, especially as demand for faster deliveries grows.

The solution? Order management systems (OMS). With features like real-time tracking, inventory updates, and optimized shipping routes, OMS directly addresses problems like supply chain delays and rising operational costs. It also improves accuracy and speed in high-volume fulfillment. 

Let’s explore how using an OMS—especially in conjunction with a fulfillment management system (FMS) like Logiwa IO—in high-volume fulfillment centers can lead to more accurate and timely deliveries and improved customer satisfaction.

 

Understanding Order Management Systems (OMS)

OMS are ideal for high-volume fulfillment centers that need to process many orders quickly and accurately. They automate multiple aspects of the order lifecycle to speed up operations, reduce errors, and improve efficiency.

Definition and components of OMS

An OMS is a software platform that assists companies in overseeing the complete order process from beginning to end. It centralizes essential tasks that usually require human labor, such as:

• Centralized order processing: Regardless of how an order is received, OMS centralizes it all in one location. It may be from an ecommerce website, a phone call, or an in-store purchase. This way, every order is processed quickly and accurately.
• Inventory management: OMS syncs with inventory data in real time so businesses always know what stock is available. This feature helps prevent over-selling products and reduces the time spent on inventory checks.
• Real-time tracking: OMS’s built-in real-time tracking tools benefit both customers and warehouses. Warehouse staff can monitor the status of orders, shipments, and returns with real-time visibility and handle possible delays proactively.

Besides these, one of the top benefits of an OMS is its seamless integration with enterprise resource planning (ERP), customer relationship management (CRM), and warehouse management platforms. Seamless WMS software integration keeps inventory counts accurate across all platforms. If a customer places an order, the OMS immediately updates stock levels in the WMS and ERP. This helps avoid overselling or stockouts.

Role of OMS in fulfillment warehouses

Order processing is only one aspect of an OMS’s function in fulfillment warehouse automation. The OMS also arranges for the receipt and processing of orders once they are placed. It checks that the correct items are picked, packed, and shipped, so there is no risk of human error.

OMS also manage inventory across multiple locations. For instance, a warehouse may hold several stock levels or ship from multiple sites. Either way, theOMS guarantees that the right supply is accessible when needed. 

An OMS greatly increases shipping efficiency because it is also a logistics automation technology. The system can automate tasks such as creating mailing labels, selecting the best shipping companies, and providing consumers with tracking numbers.

Enhancing accuracy in order fulfillment

Warehouse order fulfillment procedures must be precise, as even the slightest mistake could set off an expensive chain reaction. 

For instance, mis-picks or mislabeling a package may seem minor. However, receiving the wrong item can result in frustrated customers,  a return request, or even negative reviews . 

The results of such an error are even more amplified in high-volume fulfillment centers. A 1% error rate means hundreds of incorrect orders in a single day.

Thankfully, OMS provides a variety of methods for maximum inventory management and order routing accuracy. Fulfillment centers can then reliably meet demand without costly errors.

Real-time inventory management

Accurate order fulfillment begins with real-time inventory management. Luckily, an OMS can also double as an inventory management system. It constantly monitors stock levels, reducing the chances of stockouts or overstocks that can disrupt the flow of orders. This allows for faster responses to changing demand patterns, reducing or eliminating last-minute order changes or cancellations.

Inventory distortion, including stockouts and overstocks, cost retailers nearly $1.8 trillion in 2023. OMS solutions prevent these issues with up-to-the-minute stock updates and automated alerts when inventory needs replenishing. 

Automated order processing

Human error has always been a problem when processing orders manually. In fact, human error in manual operations accounts for almost two-thirds (66%) of inventory or fulfillment problems. OMS reduces these risks by automating order entry, validation, and confirmation. 

As soon as a customer places an order, the OMS verifies the order data before moving to the next step. This reduces processing errors, which can lead to delays or fulfillment mistakes.

Additionally, the system looks for problems like shipment details, product availability, and payment confirmation. This quick, error-free method increases productivity while decreasing manual labor, making it ideal for high-volume fulfillment settings. 

Integration With Warehouse Management Systems (WMS)

Order fulfillment doesn’t end with accurate order processing. Accuracy in picking and packaging procedures is also necessary for optimal warehouse efficiency. OMS integrates with warehouse management systems (WMS) to optimize these processes. 

With Logiwa or other ecommerce fulfillment solutions, OMS makes sure that the system picks and packs the right items for each order. This integration leads to more accurate order assembly since there’s minimal human intervention. Pickers will retrieve the right quantities of the right items. 

When OMS and WMS work together, stock discrepancies and misplaced items also become much less likely. The system won’t complete incorrect orders because any changes in stock levels will instantly show up in the OMS.

Improving the timeliness of deliveries

On-time delivery is a major factor in client satisfaction with fulfillment. OMS, which offers automated shipping, real-time order tracking, and optimized order routing, may increase the speed of order fulfillment.

Efficient order routing and prioritization

Warehouses sometimes need to coordinate multiple deliveries to different locations, often under tight deadlines. An OMS helps by automatically sorting and ranking orders based on urgency. For example, it can flag next-day air shipments or back-ordered items that just arrived in stock. 

This way, time-sensitive shipments get processed first, while standard orders follow in an efficient sequence. It also analyzes customer location, shipping costs, and carrier availability to find the fastest fulfillment route.

Automation of shipping processes

OMS also speeds up the shipping process by automatically generating and documenting shipping labels. Instead of manually prepping each label, it automatically prints and attaches the correct paperwork. For timely pickups, OMS can also automatically coordinate with carriers.

Real-time order tracking and updates

An OMS also provides real-time updates to both the warehouse and the customer. Consumers can get real-time delivery status updates and track their products. This improves transparency and increases customer and company trust.

Benefits of OMS beyond accuracy and timeliness

While accuracy and speed are essential, a well-implemented OMS has even more benefits.

Scalability

Order fulfillment becomes more complicated as businesses expand. It can be challenging to handle a growing number of orders without making mistakes or delays, particularly during busy times of the year.

OMS offers the scalability needed to manage large order quantities without sacrificing efficiency. It automates processes like order routing, inventory allocation, and shipping coordination, allowing fulfillment centers to efficiently manage surges in demand.

Data-driven decision making

In addition to tracking orders, an OMS assists companies in making more informed decisions. Fulfillment centers can enhance demand planning and inventory forecasting with the right WMS analytics and reporting software. This means fewer stockouts, less excess inventory, and better alignment between supply and customer demand.

Enhanced customer communication

A seamless fulfillment process gets packages out the door and keeps customers informed. OMS improves customer communication through self-service portals that allow customers to follow their orders in real-time. They may instantly check shipping statuses, expected arrival timings, and any delays rather than calling customer service for updates.

Boost your customer satisfaction today

The right OMS can improve the accuracy, speed, and operations of any high-volume fulfillment warehouse. It reduces errors and delays by automating tasks like order processing, inventory management, and WMS software integration. 

Customers stay happy when orders are processed correctly and delivered on time, and businesses build lasting trust. The connection is simple: Better order management leads to better experiences.

Curious to see how Logiwa IO can improve your fulfillment operations? Schedule a call with one of Logiwa’s fulfillment experts today.
 

FAQs about improving customer satisfaction with OMS