Blog Posts 7 Reasons Why You Need an OMS

Key Takeaways

  • Ecommerce growth is prompting the vast majority of retailers to invest in enhancing their omnichannel capabilities.
  • A robust order management system (OMS) is essential for effective omnichannel fulfillment.
  • A new whitepaper provides an in-depth look at the advantages of an OMS and factors to consider when selecting the best system.

With more shoppers moving online, retailers face growing pressure to deliver an increasingly sophisticated shopping experience. Providing real-time product and availability information, seamless service, a variety of delivery options, and hassle-free returns are just a few of the challenges keeping them up at night.

An overwhelming 85 percent of U.S. retail executives plan to invest more capital in their multichannel capability over the next five years. A robust order management system (OMS) is fast becoming table stakes for omnichannel retailers who wish to ensure an optimal customer experience.

In a new whitepaper, Saddle Creek Logistics outlines the advantages of an OMS, identifies the characteristics of a powerful system and debates the merits of outsourcing versus investing in the technology.

Following is an excerpt…

OMS Helps Address Common Omnichannel Concerns

To get the customer experience right, retailers must provide consistent and seamless service. They need to be able to optimize inventory across multiple distribution nodes, route orders for maximum efficiency, continually improve cycle time, keep customers apprised of order status/location, manage backorders efficiently, and process an astounding volume of returns and exchanges – all while attempting to achieve profitability.

All of these actions require much more sophisticated technology solutions than many retailers’ existing legacy systems can support. A traditional warehouse management system (WMS), for example, can play a valuable role, but it is simply not up to the challenges of omnichannel operations on its own. It can’t handle back order management, purchasing or rapid replenishment. It is limited to the four walls of the distribution center.

It’s not surprising, then, that retailers seek out a more robust technology solution. To bolster their capabilities, nearly two-thirds of companies (61%) use an order management system (OMS), according to a 2020 study by Saddle Creek Logistics Services. What’s more, 60 percent of online retailers will invest in improving their OMS in 2021 to help deliver the desired customer experience, according to a study by SearchNode.

An effective OMS is able to address many of the omnichannel challenges described above. Here’s a look at one of seven key benefits.


Inventory must be readily available and accessible. Roughly two-thirds (63 percent) of shoppers will try another brand instead of waiting for an item to be back in stock, an Oracle survey shows.

Demand for buy online pick up in store (BOPIS) and curbside delivery has grown exponentially, with 80 percent of shoppers expecting to increase their use of these services over the next six months, according to a Manhattan Associates study.

In this environment, silos are simply not an option. Rather than keeping all of their products in one location or stocking separate inventory for each channel, retailers need to distribute inventory across multiple locations – brick-and-mortar stores, various warehouse locations, vendors (for drop shipments) and more. This helps to move products closer to the consumer for faster, more cost-effective service.

An OMS provides enterprise-wide access to inventory regardless of its location – warehouses, physical stores, vendors, in transit and available to promise. The system can determine which fulfillment source to pull from to ensure the fastest and most affordable service. In addition to improving order routing, an OMS’s ability to optimize inventory helps to reduce inventory carrying costs.

To learn six more ways an OMS can help you to improve the omnichannel experience for your customers, read the whitepaper.

60 percent of online retailers will invest in improving their OMS in 2021 to help deliver the desired customer experience.

Source: SearchNode


Related to: Customer Experience, Fulfillment Technology, Omnichannel