Did you know that 43% of small businesses don’t track inventory? This can lead to overwhelming problems, like increased warehouse costs, stockouts and even conflicted customers.

To maintain good relationships with customers, you need an order management system. Coordinating the fulfilment process is one way to boost stocks and keep the workflow moving continuously in your business.

This article will explain the steps of order management and processing, including why they are essential and the six benefits of reinforcing robust order management systems.

What Is Order Management?

An order management system (OMS) refers to the process of receiving order placements, tracking the order status and sending the package to be delivered. It’s essentially the lifecycle of an order that provides sales information to every corner of the supply chain.

Many customers expect obligations to be fulfilled once they hit the ‘buy’ button. Once you receive the order request, you’ll need to use order management software to monitor order placements, picking, packing and shipping.

Without an order management system, the business will struggle to manage sales channels, operate multiple warehouses or incorporate in-store pickups for customers.

You can also use the OMS to check for new inventory and manage products by enabling the best digital content in online stores. The sales team can then check what items are selling quickly and which ones need more promotion.

What Is Order Processing?

The order fulfilment process requires smooth, deliverable order processing techniques. This means you need to ensure customer orders are efficiently prepared and delivered. Processing software usually manages inventory, sorting items, order packing and shipping times.

34% of businesses have shipped orders late because they sold items that weren’t in stock. Of course, the customer satisfaction rate will go down dramatically. Having a solid processing system in place enables you to improve inventory management.

Why Are Order Management and Processing Systems Important?

There is plenty of room for human error regarding order management. Manual processes often fail due to lost paperwork, time-consuming documentation and an overfill of multiple sales channels.

A sound system allows the business to get orders shipped on time. You’ll know exactly what items are in stock and how much you need to order to meet sales demands.

It’s believed that 1 in 3 customers will leave a brand after just one negative encounter. This further encourages businesses to invest in an order management system that can increase customer satisfaction.

A well-structured order management system will improve customer service and reinforce continuous work standards for warehouse workers. It’s essential to monitor the journey of each order, as customers expect to receive their items on time and in the best state.

6 Benefits of Using an Order Management System

Now, there are many advantages to integrating order management systems. An efficient ordering system is pivotal for beating the competition. The digital world has become very demanding, with 15% of customers using online retail markets. If you’re still not convinced about order management solutions, keep reading to find some encouraging benefits.

Lowers inventory costs

What’s better than saving money in your business? The correct order management solution can save unnecessary costs on inventory. This includes costs associated with overstocking. Having software that details the demands of your current business can prevent the piles of unsold items in your warehouse.

A good deal of money can go into warehousing, breakage, shrinkage and quality control. Here at eCommerce Shipping, we have the right tools to monitor your current products and what you need to stock up on. This means you’ll get real-time stock level updates, further reducing deadstock costs.

You don’t need paperwork

Removing the need for paperwork is the best thing you can do when implementing an order management system. Keeping important inventory, finances, customer payments and business processes on paper can harm your security measures. That’s why order management software will manage orders and store any online sales in one secure place.

Physical documents are prone to be stolen, lost or misplaced by employees. A high-quality order management system is key to saving money on printers and ink. You can spend more employee time on enterprise resource planning and eCommerce business techniques.

Keeps sales channels updated

Not keeping track of inventory management can have consequences. Stressed customers, tired employees and lower profits are bound to drag a business down. However, order management systems regularly update eCommerce channels and prevent you from overselling or underselling stock.

At eCommerce Shipping, we connect to your sales funnel to ensure you have the right tracking tools for inventory management. Reaching out to more customers without overwhelming the order lifecycle is essential.

Better order status for customer service

No customer wants to see their package delayed or out of stock. This problem often derives from manually fulfilling orders, so investing in order management systems is essential. For example, tracking the order from start to finish allows you to communicate delivery information with the customers.

The order management software will constantly update your inventory levels. If something isn’t available, you’ll notice it straight away. Having this one platform can build a more substantial customer base.

Another thing to note is that eCommerce Shipping cares about the customer’s experience as much as you do. We are there to calculate shipping rates, organise delivery methods and keep a note of tracking numbers on each customer order. People want updates when they’ve paid for something, which is why we provide smooth shipping worldwide.

Reliable stock information

Counting stock manually is a recipe for disaster. It’s easy to make mistakes, leading to the inaccurate distribution of products.

For example, if the numbers are wrong in customers’ orders online, some people may not receive the item they paid for. This breaks the customer loyalty you have achieved.

An order management system will automatically update stocks and notify you when certain items are low in the warehouse. This saves warehouse employees a lot of time when managing inventory.

Deliveries are more efficient

Customers who don’t receive their orders will most likely turn to another online store for their items. Now, this can be disheartening for new businesses that are still learning about order management.

Invest in an order management system that shows relevant information for each purchase to maximise success in your business. You can view when the customer bought the product and what delivery method they prefer.

For example, next-day deliveries will automatically signal warehouse employees to make those items top priority.

Managing orders manually will cause you to lose visibility over stocks, so consider improving your order management process for quick and efficient deliveries.

Final Thoughts

So, now you know why order management software is essential for business. To manage inventory, you must understand the order process and how to monitor these automated processes.

The revenue for Australia’s eCommerce market is expected to reach USD32.3 billion by 2024. With every growing market, there is more customer demand for trending products. Meeting these demands means managing inventory levels using a distributed order management system.

We have proprietary software to promote the best customer experience if you need a scalable eCommerce solution. Stronger inventory management means you’ll make fewer mistakes that significantly impact your business.

For more information, contact us now!


Here are some frequently asked questions about order management:

How can the order management process be improved?

A great way to improve your order management system is to streamline product returns by dedicating a section in your warehouse to returned items. You can also choose our eCommerce Shipping tools, as we secure your inventory on our warehouse sites. This means customer orders will go straight through online retailers.

What are the main tasks involved in order processing?

The main tasks comprise picking, sorting, tracking and shipping. Data-driven processes like an order management system can guide you through the journey of each product. A customer will buy the item online, which gets sent to your fulfilment team. After that, the item is picked and packed for easy delivery.

What is an order management system in eCommerce?

Online sellers in retail will use order management processes to track orders, inventory and fulfilment obligations. This can help boost the eCommerce market by getting real-time inventory level data. Since the online marketplace is extensive, having good order management software is vital to smooth business sales.

What are some features of an order management system?

Standard features include high-scalable processing, data sources across multiple channels, customer search and order tagging. The optimised pick, pack and ship will allow you to stay on top of the order queue. Even though order management is vital for the business, it’s vital for building positive customer relationships.

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