Order Management System: The Brain of Your Omnichannel Retail Enterprise

Order Management System: The Brain of Your Omnichannel Retail Enterprise

Order Management System: The Brain of Your Omnichannel Retail Enterprise

By Keith Blankenship, Regional Vice President of Sales, Kibo

Retail technology has evolved markedly in the last 10 – 15 years.  In the 1990s and 2000s, the Point of Sales (POS) was the focal point of an enterprise’s commerce strategy.  The POS handled all activities surrounding how customers interacted with retailers.  During this time, eCommerce became a viable option for consumers and offered an alternative to crowded stores with substandard shopping experiences.  This trend led to a rise in mobile POS which allowed retailers line-busting and save-the-sale functionality. Subsequently, multi-channel retail strategies began to evolve when eCommerce platforms began to integrate with POS systems.  While fulfillment options expanded, these systems were often installed on servers in retailers’ offices and required patches and maintenance resulting in cost escalation for the retailer.  These new features also came with a high price tag.

Today’s retail technology landscape has drastically changed to the advantage of retailers.   Retailers can now implement systems that provide instant access to features without the heavy upgrade costs associated with legacy on-premise systems.  By offloading the strain of supporting these systems in favor of multi-tenant SasS applications, retailers can now focus more on customers and their store experience.  With this renewed focus, retailers are able to offer intelligent fulfillment options that satisfy customer demands and control costs.  Modern systems must also shoulder the burden of communicating with other critical business applications such as ERP and CRM.  More and more retailers are turning toward an Order Management System (OMS).

An OMS allows retailers to provide a robust and satisfying experience for their customers.  By allowing your customers to fulfill in a manner of their choosing, you are actually increasing sales.  76% of buyers indicate that multiple fulfillment options influence them to complete a purchase, according to Kibo’s 2018 Consumer Trends Report. This is up from 64% the year before — an 18.75% increase.

An OMS doesn’t just enable fulfillment options, it also leverages a retailer’s most valuable asset, it’s inventory, in two distinct manners.  First, an OMS can give customers visibility into what inventory is available at certain stores and online.  68% of consumers are less likely to order from a site that doesn’t show in-stock store inventory availability, and 78% of consumers have looked up store inventory before a store visit. Secondly, it allows retailers to optimize their existing inventory through intelligent, rules-based order routing and the ship-from-store function.

Customer expectations and demands have certainly changed, and retailers must adjust quickly to ensure a sound costumer experience in the most cost-effective manner.  Providing a customer experience that aligns with evolving expectations ensures market relevance and ability to thrive in the modern world. While POS and eCommerce platforms are important pieces in the life of a retailer, an OMS is the critical element that drives all of the enterprise.

Click here for more information on the Kibo OMS or to schedule a demo.

Kibo Blog

Our Most Recent Blog Posts

Prepare yourself with key insights, guides, datapoints, and more. Subscribe to the Kibo Monthly Newsletter.

View all Blog Posts

woman woking on order fulfillment

Why Order Lifecycle Management Matters For Effective Business Operations

In short, efficient order lifecycle management leads to a better customer experience and a better customer experience leads to profitability. Whether you’re running a mid-market business or a Fortune 500 company, both should be the…

People working in distributor warehouse

Practical Applications of Order Management Systems for Distributors

The ever-evolving competitive business landscape has brought in its unique challenges and opportunities for distributors, who are in a relentless pursuit of making their operations fast and efficient. Effective management of orders is a prerequisite…

Man managing orders and inventory

Understanding the Operational Side of Flexible Fulfillment 

Today’s customer requires greater agility than ever before — they want faster, cheaper, and more accurate delivery options. Expectations for delivery times continue to shrink. According to McKinsey & Co., 90% of consumers view 2-3…