Blog Posts Improve Inventory Visibility with an Order Management System
- Omnichannel retailers are investing in more robust order management systems (OMS) to their improve fulfillment capabilities.
- Ecommerce growth has led to more demand for inventory visibility across multiple distribution facilities.
- A robust OMS can help to improve inventory visibility.
Sixty percent of online retailers will invest in improving their order management system this year, according to a study by SearchNode.
While an effective OMS can help to address a variety of omnichannel fulfillment challenges, inventory visibility is one of the most pressing. As omnichannel retailers expand their distribution networks to accommodate ecommerce growth, the need for real-time information becomes increasingly critical.
67 percent of consumers say that inventory visibility across stores, online and mobile is an important service to offer.
Source: Parcel Magazine
The visibility benefits of a robust OMS, along with a number of other advantages, are outlined in Saddle Creek Logistics’ report: Utilizing an OMS to Deliver an Outstanding Omnichannel Customer Experience.
Following is an excerpt…
Real-Time Inventory Information Enhances Customer Experience
With multiple sources of fulfillment, omnichannel retailers need comprehensive, accurate, up-to-the-minute information about where their inventory is, how it is moving and where it is needed. This helps them understand what they have available to ship and available to promise while helping to prevent stock outs and overstocks.
The ability to find inventory information online is a high priority for many consumers as well. In fact, 67 percent of consumers say that inventory visibility across stores, online and mobile is an important service to offer.
They not only want to check in-store availability of an item, but they also want to have visibility into actual inventory levels (e.g., 5 left in stock). In addition, seeing the quantity available for products online can give shoppers a sense of urgency to complete a purchase. Consumers also want to be able to track their orders and see when they will be delivered.
Technologically advanced retailers have a distinct competitive edge in terms of visibility. With an OMS, they have the ability to see inventory across their entire enterprise. They’re also able to view orders as soon as they’re placed all the way to the end customer. . . and back if necessary. In addition to improving visibility internally, they can share detailed information with their customers – from online and in-store product availability to backorder status to shipment tracking.
According to the RIS Supply Chain Technology Study 2020, 71 percent of retailers rated “lack of real-time inventory visibility” as one of the top two supply chain obstacles that reduce efficiency and productivity.
To learn about other fulfillment challenges an OMS can help omnichannel retailers to address, read the full report.
Related to: Customer Experience, Fulfillment Technology, Multiple Sales Channels, Omnichannel