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Published July 11, 2024Updated September 10, 20263 min read
byHeath BrownsworthHeath Brownsworth

Why Order Management Should Be Your First Priority

Why Order Management Should Be Your First Priority

KEY TAKEAWAYS

Order management should come first when launching, upgrading, or migrating eCommerce because a storefront fails without reliable fulfillment and service. For B2B, where most orders arrive via EDI or other non-storefront channels, a well-integrated OMS connecting ERP, WMS, and TMS reduces errors, cuts service cost, and supports scalable growth.

  • A strong OMS is foundational for scalable growth and customer satisfaction because fulfillment and order servicing matter more than storefront looks alone.

  • For B2B, 70%–90% of orders come through EDI or other non-storefront channels, making a robust OMS essential.

  • OMS value depends on integration with ERP for inventory, WMS for picking and packing, and TMS for shipping.

  • Partial cancellations get harder and more expensive once inventory is allocated in the ERP and the order enters the fulfillment pipeline.

  • Poor integration creates a “swivel chair” effect for customer service, raising human error and operational cost—such as shipping from the wrong warehouse.

The Foundation of eCommerce Success

Whether you’re launching a new eCommerce site, upgrading your current one, or migrating platforms, make Order Management your top priority. A beautiful new storefront is useless if you cannot fulfill and service orders. For B2B businesses, where 70% – 90% of orders come through EDI or other non-storefront channels, a robust order management system (OMS) is essential. A strong OMS not only sets the foundation for scalable growth, but also enhances customer satisfaction by ensuring smooth order fulfillment.

The Importance of Integration

A great Order Management System is critical, but why should it be your first focus? In one word: integration. While an eCommerce platform and OMS might be tightly integrated with each other (like Salesforce B2B Commerce and Salesforce Order Management), the entire fulfillment process often involves more than one system. You’ll likely need to connect to an ERP for inventory management, a Warehouse Management System (WMS) for picking and packing, and even a Transportation Management System (TMS) for shipping. Optimizing these data flows with the right OMS integration boosts operational efficiency, enhances the customer ordering experience, and helps increase customer retention.

Real-World Scenario: Simplifying Order Servicing

Let’s break down a typical scenario: A customer wants to cancel one item in their order. If that order hasn’t yet been processed by the ERP or WMS, canceling the item can easily be managed within the OMS. But once the inventory is allocated in the ERP, an integration workflow is triggered, and business decisions need to be made. Should you allow cancellation at this stage? Once an order is in the fulfillment pipeline, it becomes harder and more expensive to adjust. By building your customer experience around a well-integrated OMS, you can establish processes that enhance both profitability and customer satisfaction.

Reducing Costs and Errors

A lack of integration can lead to costly errors and increased operational costs. Without a clear source of truth for orders, your customer service team might need to toggle between different systems (known as the “swivel chair” effect) to service a single order. This inefficiency can lead to human errors and higher service costs. Imagine a customer service rep sending 30 pallets from a Trenton, NJ warehouse to Los Angeles, only to find the same product was available at your Long Beach warehouse. A well-integrated OMS helps prevent these costly mistakes.

The Necessity of a Well-Integrated OMS

In today’s competitive eCommerce environment, a well-integrated OMS is not a luxury—it’s a necessity. Particularly for B2B companies, a unified ordering experience across multiple channels (e.g., storefront, EDI, punchouts) is crucial for success. Prioritizing order management ensures efficient growth, superior customer service, and a smoother order fulfillment experience.

Key Takeaways: Why Order Management Matters

  • Build a solid OMS foundation for scalable growth.
  • Ensure seamless integration with ERP, WMS, and TMS.
  • Reduce costly fulfillment errors through automation.
  • Enhance customer satisfaction and loyalty with optimized order servicing.

AAXIS can help you evaluate your current OMS and discover integration opportunities. Schedule a free 20 minute consultation.

FAQs

FAQs

A beautiful storefront is useless if you cannot fulfill and service orders. A strong OMS sets the foundation for scalable growth and smoother order fulfillment.

It is essential because 70%–90% of B2B orders come through EDI or other non-storefront channels. A unified ordering experience across storefront, EDI, and punchouts is crucial for success.

Beyond the eCommerce platform, fulfillment often requires ERP for inventory management, WMS for picking and packing, and TMS for shipping. Optimizing those data flows improves efficiency and the customer ordering experience.

If the order has not yet been processed by the ERP or WMS, cancellation can often be handled in the OMS. Once inventory is allocated in the ERP, an integration workflow is triggered and cancellation becomes harder and more expensive.

Without a clear source of truth for orders, customer service may toggle between different systems to service a single order. That inefficiency can cause human errors and higher service costs, such as shipping from a distant warehouse when stock was available closer.

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