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Small Business Trading: The Order Management Revolution

In the world of small business trading, how you manage orders can make and break your eCommerce business. Every day you juggle dozens of orders when you run an online boutique. You have to track inventory and handle customer requests. It sounds overwhelming, right? This is where the order management system steps in. It transforms how you handle orders. And, not only for the boutique business but also for every type of business that requires order management.

For example, you have just introduced a new line of eco-friendly products. With a modern order management system, you can effortlessly track every order in real time. It lets you update your inventory. It keeps your customer happy because of timely delivery.

So, this blog is all about the order management revolution in small business trading. You will explore order management systems, key drivers of the order management revolution, the role of technology, the role of AI and Machine Learning in Order Management, and much more in this blog.

Ready to unpack the information?

What Is an Order Management System

Order Management System is also called a Supply Chain Management System or Order Management app. It helps businesses track and manage customer orders from start to finish. This software lets you streamline order fulfillment, customer service, inventory control, and more.

It helps to keep everything organized so that businesses can safely shift their focus from organization to implementation and also focus on growth.

Benefits of Modern Order Management Systems

Modern order management systems automate the lifecycle of orders. More than 70% of inventory managers want to improve their store management with the help of technology. And, do you know, that 24% of small businesses still manage their inventory with a pen and paper?

An order management system has come across as a revolution to transform traditional methods. Custom mobile app development provides apps that are tailored to the business’s needs to manage its orders. It offers various benefits to businesses.

1. Streamlined processes
2. Real-time tracking
3. Improved inventory management
4. Enhanced customer experience
5. Data-driven insights
6. Scalability
7. Reduced errors
8. Better integration

Let’s explore all these benefits in great detail below. So that you can also offer better services to customers.

1. 1. Streamlined processes:

      OMS is a center where everything related to an order is available. It integrates with different channels like physical locations, online stores, and even marketplaces. This integration streamlines processes effectively. It eliminates your struggle between different systems and spreadsheets. Orders are processed faster and more accurately which is a win-win for for you and your customers. So logistics app development is crucial for better management.

 

1. 1. Real-time tracking:

      When you a buy product online, you can check its progress from packaging to ready-to-ship, dispatched, and out for delivery. Tracking online food is the best example of this type of system. It lets you track shipments and inventory. You can see where the order has reached in real time and how long it will take to reach the customer’s doorstep. Customers can track their orders in real-time which reduces anxiety and dissatisfaction.

 

1. 1. Improved inventory management:

      Inventory management has been a difficult task for so long. A few years back some businesses started showing trust in apps and hiring dedicated developers. It invited a revolution that made inventory management no longer a difficult task. A good OMS apps provide real-time inventory updates. It helps businesses avoid overselling and running out of stock.

      They can find out it in real time and resolve the issue before it becomes a major one. These apps also analyze historical data and trends. It helps to keep the right amount of stock at the right time, especially on the time of occasions and holidays.

 

1. 1. Enhanced customer experience:

      Who would not like orders to be delivered on time? Everyone wants their orders on time even before the time. OMS provides a smoother experience for customers. They get every tiny detail from the time of placing an order to receiving it. Customers can find out whether the products are available or not and which are the best alternatives. It was not possible before the advent of OMS.

 

1. 1. Data-driven insights:

      OMS apps also provide data-driven insights that help businesses to make better decisions. You can track sales performance, customer behavior, and inventory trends using apps. Many food delivery apps for cloud kitchens take the help of data-driven insights for optimizing menu offerings. Data-driven insights help to adjust strategies and optimize operations. It’s like a robot providing you with advice after analysis.

 

1. 1. Scalability:

      One of the crucial benefits of an Order Management System is that it grows with a business. Whether you are expanding your product range, introducing new sales channels, or reaching a new market, OMS can handle growing volume and complexities without missing a beat. Scalability ensures that your business doesn’t lose pace because of growing customers, employees, and processes.

 

1. 1. Reduced errors:

      When you handle everything manually, there are chances of various mistakes. Removing these mistakes takes away important time that could be used to improve products and services. An OMS from a web development company removes this problem as it takes care of everything on its own, leaving more time for you to improve products. Whether it is inventory management, product manufacturing, or order management, OMS handles everything without making any mistakes.

 

1. 1. Better integration:

      API capabilities in OMS apps improve customer experience by offering them relevant services in one platform. It allows businesses to integrate seamlessly with other systems like Customer Relationship Management tools, marketing platforms, accounting software, and maps. It creates a cohesive ecosystem where data flows smoothly between systems. It reduces duplications and errors.

 

Key Drivers of the Order Management Revolution

What makes the Order Management System revolutionary, thus many businesses start to use it enthusiastically? Let’s find out in the space below.

1. Technological advancements
2. eCommerce boom
3. Omnichannel retailing
4. Customer expectations
5. Data-driven decision making
6. Globalization
7. Integration capabilities

Here is a closer look at each of these points.

1. 1. Technological advancements:

      Order management systems have become more powerful and efficient because of emerging technologies like AI, Machine learning, Cloud computing, IoT, and others. They help in real-time processing, data analysis, quick order management, and automation of repetitive tasks. So, technological advancement has improved the ordering handling process and made it smoother.

 

1. 1. eCommerce boom:

      Around 33% of people worldwide are shopping online to meet their needs quickly. User penetration can hit 63% by 2028. As a result, more than 4 billion people will be shopping online in the coming 4 years. So, the explosion of online shopping has pushed the need and will push it more in the future. Businesses will need more robust systems to keep up with the needs of customers. They might want faster deliveries and better services, keeping the market competitive.

 

1. 1. Omnichannel retailing:

      Which eCommerce app do you use for shopping? You might answer more than one. Nowadays, people don’t rely on one app, they use different applications and services in search of better and more lucrative offers and better quality products. They shop offline, in-store, via mobile app, and desktop. Businesses need OMS that can handle orders from all these touch points in a unified way.

 

1. 1. Customer expectations:

      Customer expectation is one of the key drivers of the order management revolution. Shoppers have high expectations for fast shopping. Recently, “Fast Fashion” is a new term that became popular among fashion lovers. It means more quality clothes at a low price. People dump these clothes as they are done wearing them only once or twice because they want to buy more new clothes.

      It has made fast shipping, easy return, and accurate order tracking more important. Modern OMS helps meet these expectations of customers with real-time updates, faster processing, and better inventory management.

 

1. 1. Data-driven decision making:

      Nowadays, businesses have to make smart decisions and that is on time. Data help in making this type of decision. Businesses can forecast demand, optimize inventory, catch errors quickly, manage orders, and improve the overall customer experience with the help of an Order Management System app.

      Besides that, creating an app for a business often requires the best Android app development company, if the target audience is only Android users. In this type of app also, AI and Machine learning technologies are used that help in data-driven decision-making.

 

1. 1. Globalization:

      As business grows it needs a system that can handle different currencies, languages, and regulatory requirements. Globalization is the key driver that increases demand for robust OMS to deal with the complexities that come with growing business.

      Many popular eCommerce and online food delivery apps have to use advanced tools to manage orders. For example, food delivery apps like Zomato or Uber work on a global scale thus they need a robust and scalable order management system.

 

1. 1. Integration capabilities:

      Your Order Management System should have integration capabilities. It should smoothly integrate with different marketing platforms, CRM, ERP, and others. Integration is crucial because it helps in providing a comprehensive ecosystem to customers so they don’t have to leave the platform to complete the order. All the Web and Mobile app and custom software development companies focus on building a system that can integrate easily with other platforms.

 

The Role of AI and Machine Learning in Order Management

AI and Machine learning technologies have made various tasks easy for businesses by automating them. AI is way more than just automating business processes; it helps in making better decisions and much more.

1. Smarter inventory management
2. Personalized customer experience
3. Efficient order fulfillment
4. Accurate demand forecasting
5. Improved customer service

Get a deep dive into the points below.

1. 1. Smarter inventory management:

      Imagine you run an eCommerce business and you have run out of stock in your inventory. But you have no idea about it. It can lead to missed sales and impact customer experience.

      AI analyzes past sales data, seasonal trends, and even social media mentions to predict how many products you will need next month. AI can recommend including more stock beforehand to meet the next month’s demand quickly.

 

1. 1. Personalized customer experience:

      Without AI tracking customers’ preferences and suggesting products can be difficult or would take more time. Manually tracking preferences and then recommending products require more time and a big team. With AI, it’s a whole different ballgame.

      AI analyzes purchase history, customer buying behavior, and patterns to recommend the most suitable products and services. For example, if a customer bought a reusable water bottle last month, the system might suggest a stylish new bamboo lunchbox the customer might like.

 

1. 1. Efficient order fulfillment:

      Imagine, you are managing a large warehouse with thousands of orders. Receiving orders, packing, and shipping them can be chaotic without the help of AI. Machine learning can optimize the picking routes for warehouse workers. So, instead of wandering around the warehouse, workers get straight to the location. It can also tell workers to pick items together that complement the main products.

 

1. 1. Accurate demand forecasting:

      If you know how many products need to be manufactured, it can save you from overmanufacturing and spending unnecessary money on the procedure. AI analyzes data from previous product launches. It then matches them with current market needs and informs about the gap in the demand then and now. It helps to decide how many products will be required now according to demand.

 

1. 1. Improved customer service:

      Most of the customers have the same queries on an eCommerce website or online store. To answer the questions related to order AI helps a lot. Since most questions are the same and answers as well, the AI model can be trained based on customer data, queries, and answers.

      For example, if a customer asks “Where is my order?”, the AI chatbot will ask “Kindly provide me with your order ID”, and this way a conversation goes on until the customer gets the answer. AI chatbots don’t have limitations like humans who can’t work around the clock.

      After reading about AI and ML transforming supply chain and order management systems, one question struck my mind, it might have struck yours as well.

      “Will AI undo many years of hard work and progress by handling tasks in a few seconds?”

 

The Role of Blockchain in Order Management

Blockchain records every transaction related to an order; each step, from manufacturing to delivery. These records or transactions are immutable, which means no one can change them.

1. Transparency and traceability
2. Enhanced security
3. Smart contracts automation
4. Auditing and compliance
5. Supply chain optimization

Understand each point of how important is blockchain in managing orders.

1. 1. Transparency and traceability:

      A decentralized and immutable ledger of transactions makes eCommerce and online order businesses more secure and trustable. Every transaction from registering, placing orders, processing, and fulfilling orders can be recorded on blockchain. It keeps all the pieces of information secure. Customers, suppliers, and distributors all are covered to track the status of products in real time. Each steps are protected by blockchain, making transactions and every activity transparent.

 

1. 1. Enhanced security:

      Cryptographic techniques and decentralization help to enhance security in forwarding and reversing products safely without illegal alterations. Since data is stored across the network of computers tempering in information becomes impossible. You will have to get permission from the people in the network to make changes to the information. This feature protects sensitive data in the payment information and delivery details.

 

1. 1. Smart contracts automation:

      When rules and conditions are written into code, they are called smart contracts. They automate actions and processes based on triggers, such as order placement, shipment verification, payment confirmation, and more. In order management, when predefined criteria are met, smart contracts initiate the next step automatically.

      For example, a smart contract triggers and releases goods for shipment as it receives payment. There is no need for manual intervention to check payment and release goods. Blockchain technology with AI handles the entire process. An eCommerce development company can integrate such features into your app for effective performance.

 

1. 1. Auditing and compliance:

      Why is blockchain perfect for audit and compliance? Once something is recorded in a block it remains there always. It means auditors can trace every step of the order. For compliance, blockchain ensures that all people or parties involved in the process, follow rules and standards.

      Smart contracts can automate compliance checks. It reduces errors and ensures everyone follows protocols. So, blockchain brings trust, transparency, and efficiency to audit and follow compliance.

 

1. 1. Supply chain optimization:

      Blockchain helps from the time of manufacturing a product to transporting and shipping it to the end product. It traces every step from raw materials to the final product. Blockchain verifies shipments from the point of departure to the destination. With enhanced accountability and efficiency because of blockchain, businesses can feel free and focus on growth.

      Many types of apps are available for supply chain management. App type depends on your target audience. If you want to build an app for iPhone users, hire developers accordingly. Find the best iPhone app development company that can provide you with experienced developers.

 

The Impact of Big Data on Order Management

Businesses that use Big Data are more likely to increase their profit by 8% (BARC Research). So, big data must be a big thing for business growth.

Companies like Amazon, eBay, and Walmart have plentiful customer data collected from customer orders, inventory levels, market trends, and other activities on their websites. It helps them predict demand more accurately, minimizing overstock issues.

They can understand customer behavior on their sites and create marketing strategies accordingly; it is all with the help of big data. Many tools provide insights into purchase patterns that help in predictions. They can spot trends and understand preferences. Getting Insights into E-commerce software development will help you understand it more deeply.

Best Practices for Implementing an Order Management System

Many businesses use OMS, but not all become successful and get the most out of this system. Following the best practices helps to use OMS effectively and helps to grow a business. I have curated the best practices for implementing an Order Management System below.

1. Assess current processes
2. Set clear objectives
3. Select the right OMS
4. Plan for integration
5. Customize the process
6. Implement training
7. Use pilot testing
8. Use rollout strategy
9. Monitor and measure performance
10. Continuous improvement

Let’s delve into the details of these points and understand how you can implement OMS effectively.

1. 1. Assess current processes:

      How do your orders currently flow? Start by understanding it. How does the journey start from order placement to fulfillment and beyond? It will help you identify all the steps involved in the process so that you can understand potential bottlenecks. Identifying areas that need OMS makes its implementation easy.

      Look for areas where orders get delayed, errors occur, or where manual processes are time-consuming. This assessment will set the stage for how OMS can improve your operations.

 

1. 1. Set clear objectives:

      What do you want to achieve by implementing OMS? Do you want secure shipping of orders, fast delivery, inventory management, and effective processes? Why do you want to use OMS? Be clear about it as it will help you set clear objectives and achieve them faster.

      Clearly articulate the benefits you want to get from OMS. It could also be related to increased efficiency, better inventory management, order status, and happier customers. So, you have to set the goals and implement the system accordingly.

 

1. 1. Select the right OMS:

      Once you have decided on the objectives, it makes the process of selecting the right OMS easy. Research and compare different OMS systems. Find the system that aligns with your business size, industry requirements, and specific operational needs. Research for a system that integrates smoothly with your existing systems (Like ERP or CRM). Choose the system that also scales as your business grows.

 

1. 1. Plan for integration:

      Understand how OMS will integrate with other systems and databases within your organization. It will avoid duplicate data and discrepancies. Once you implement the system always track it to check whether it is working smoothly or not. Human oversight is also crucial to ensure of impeccable working of the system.

 

1. 1. Customize the process:

      Check your current entire process of order management and find out the areas of improvement. If some changes are required implement them. Also, talk to the OMS development company to customize the app according to the needs of your business. Design the app as per your users and requirements. Understanding how orders should be processed in your organization will provide insights to integrate features accordingly.

 

1. 1. Implement training:

      You will have to educate team members so that they can implement and use OMS effectively. Often change in the organization results badly because employees can’t adapt to it. Save your business from the issues that can emerge because of change by providing proper training and motivating the team. Ensure the team members understand the benefits of using OMS.

 

1. 1. Use pilot testing:

      Pilot testing means deploying OMS in a controlled environment before fully deploying it into the entire process. It helps to check issues beforehand and resolve them, saving your large expenses. Receive feedback from pilot users and use their inputs to refine the OMS.

 

1. 1. Use rollout strategy:

      You can implement OMS in only one department or process for the initial level. This will minimize disruption and allow for focused support during each phase. Keep all stakeholders informed about the rollout schedule. Clear communication helps manage expectations and facilitates smoother adoption.

 

1. 1. Monitor and measure performance:

      Once you have deployed OMS, you don’t need to continue with it, if you see it is providing no benefits. Track and observe how beneficial the system is. Identify issues and resolve them and check if it is effectively helping process tasks smoothly or not. Analyze performance data to identify bottlenecks or inefficiencies within the order management process.

 

1. 1. Continuous improvement:

      Continuous improvement is also crucial to keep the OMS relevant to the business. Regularly review the OMS performance and user feedback. Identify opportunities for process management or additional training. As your business grows or market conditions change adapt new OMS according to requirements.

      Along with these best practices focus on choosing the right tech stack for your OMS development. Seeking help from a React Native app development company can provide you with innovative cross-platform OMS. It will run on both platforms iOS and Android. So, you can handle a large number of customers from any platform.

 

Case Studies: Companies Leading the Order Management Revolution

Many small and big companies are using OMS significantly. You might have not noticed yet. I am going to talk about the popular companies in the space below.

1. Amazon
2. Zara
3. Walmart
4. Shopify
5. FedEx

Explore these companies more closely to understand where they use OMS.

1. 1. Amazon:

      We can’t talk about an order management system without mentioning Amazon. The company has done great work to improve order management and customer satisfaction through it. Amazon’s secret sauce lies in its sophisticated logistics and fulfillment centers. They use advanced algorithms to predict demands. It ensures where products are needed to be stocked.

      Lus, their prime membership program. It’s like icing on the cake. It is used for fast and reliable deliveries. Well, Amazon sets high standards for other businesses to meet customer satisfaction.

 

1. 1. Zara:

      The brand value of Zara is around 11 billion US dollars (Statista). You must have noticed that Zara restocks trendy clothes so quickly. That’s because they have nailed down their order management game very well. Its success lies in the “Fast Fashion” model. They provide new clothes very fast to customers and keep producing new stylish clothes. They use OMS to stay ahead of fashion trends.

 

1. 1. Walmart:

      Walmart uses advanced OMS technology to streamline its massive retail operations. With thousands of stores and a vast online presence, Walmart uses OMS to optimize inventory management, order fulfillment, and logistics. It uses technology for analyzing patterns, competitive pricing, market trends, and inventory management. Moreover, it improves customer satisfaction by optimizing OMS for their processes.

 

1. 1. Shopify:

      Shopify has revolutionized how small and medium-sized businesses manage their inventory and orders. As a leading eCommerce platform, Shopify offers robust OMS capabilities that empower merchants to process orders efficiently and track inventory levels in real time. It also helps in managing fulfillment across multiple sales channels. Shopify uses various other tools and OMS integrates with them smoothly. It makes payment processing and shipping solutions easy and effective.

 

1. 1. FedEx:

      FedEx is not just about shipping. You might have understood by seeing its services that they have invested in sophisticated shipping heavily. It uses Microsoft 365 Intelligent Order Management System. It helps FedEx process orders and ship goods safely to retailers, merchants, and brands. The system is integrated with Blockchain and AI technologies for accurate, informed, and fast delivery. The company handles tonnes of orders at a time. Moreover, robust technologies and infrastructure help it to manage the supply chain effectively.

 

Future Trends in Order Management Technology

You must be thinking, Order Management Systems have already improved business processes to a large extent, now what else? Human expectations have no limitations. Future trends in order management will grow with the demand of customers for better services.

Let’s have a quick look at some order management technologies that are ready to transform the future of supply chains, order management, and deliveries.

1. AI and ML for efficient work
2. Advanced analytics
3. Seamless omnichannel integration
4. Blockchain for security
5. Cloud-based management

Scroll down to understand what is waiting for eCommerce and other businesses in the future.

1. 1. AI and ML for efficient work:

      AI and ML are already playing a crucial role in OMS. A system with these technologies will not only process orders but also predict future trends, optimize inventory in real time, and personalize customer experiences. Businesses can also understand demand fluctuations and plan their stocks accordingly.

 

1. 1. Advanced analytics:

      Gone are the days for one-size-fits-all. Advanced analytics will enable hyper-personalization, where order management systems tailor recommendations. For hyper-personalization understanding customer behavior and preferences is crucial. With the help of advanced analytics getting data from social platforms will also become easy.

 

1. 1. Seamless omnichannel integration:

      As consumers interact with brands across various touchpoints; online, in-store, and mobile apps, it will make omnichannel integration common among customers. Soon, you will see systems that effortlessly integrate data from all channels, providing a unified view of customer interaction. It will offer consistent and smooth service across various channels

 

1. 1. Blockchain for security:

      Blockchain is used for secure transactions and shipments. Blockchain soon will be used to track the entire lifecycle of the order, from production to delivery on the customer’s doorstep. Traceability will be improved in the future, reducing fraud and errors in the order management and supply chain. Businesses and customers can get higher confidence in orders delivered under blockchain technology.

 

1. 1. Cloud-based management:

      Cloud-based order management will drive market growth on a global scale (Globe News Wire). Cloud apps for order management are set to transform eCommerce and supply chain businesses. It provides real-time access to data, improved accuracy, and scalability. In the future, cloud technology will likely bring even more advanced features like AI-driven insights for predictive analytics, and seamless integration with various sales channels.

 

Conclusion

Order management systems provide various benefits to eCommerce, supply chains, and many other businesses. Products are tracked throughout the process, from the time of production to the customer’s doorstep. OMS provides these products with security. It also helps in predicting future trends by analyzing big data that includes customer buying patterns, and preferences. Moreover, OMS with cloud technology allows one to access information from anywhere and at any time with the help of of Internet. Developing an OMS app requires an experienced team that can understand business objectives effectively.

Frequently Asked Questions

Why is order management crucial for small businesses?

Order management is crucial to handle orders, and ensures quick and safe delivery of orders. For small businesses customer satisfaction is important and besides that maintaining inventory and streamlining operations is equally important.

What are the key benefits of using an Order Management System?

An order management system is a software or app that ensures smooth and quick delivery of products. It also provides insights into customer behavior and preferences for demand prediction.

How long does it take to build an Order Management System?

To develop an order management system or app, it takes around 5-6 months. However, the time is not fixed as it depends on the app's complexity.

How much do I need to spend to develop OMS for my business?

The cost of developing an order management system depends on developers, tech stack, features and functions, marketing, and maintenance. An estimated cost of OMS is $30,000; it can increase as per the need for advanced features and other factors. Often the price goes up to $100,00.