Guide
What is Order Management Software?
In a nutshell, order management software (OMS) is a system that centralizes and streamlines the entire order lifecycle, from when a customer places an order to when it is delivered, and even through returns. Whether serving B2B or B2C businesses, an OMS provides essential tools to manage and automate tasks like inventory control, order processing, shipping, and customer communication. It acts as the bridge between sales channels, warehouses, and order fulfillment processes, helping businesses optimize efficiency and meet customer expectations.
What Does Order Management Software Do for B2B and B2C Businesses?
While the fundamentals of order management are consistent across industries, there are key differences between how B2B and B2C businesses use OMS platforms due to their distinct operational needs and customer expectations.
For B2C businesses, order management software is typically focused on speed, accuracy, and customer satisfaction. In a world where consumers expect fast and flexible delivery, the OMS ensures that all orders, whether they come from a website, app, or third-party marketplace, are processed quickly and efficiently. Some of the main functions include:
- Real-time inventory visibility: Knowing what’s in stock across warehouses and stores helps B2C businesses avoid overselling and disappointing customers.
- Automated order routing: Orders are automatically sent to the most appropriate fulfillment center based on factors like location and stock levels, ensuring the fastest, most cost-efficient delivery.
- Flexible Fulfillment Options: Offering customers multiple fulfillment options, such as BOPIS or ship-from-store, gives them the flexibility to choose a delivery option that best fits their needs.
- Customer communication: Automated updates let customers know the status of their order every step of the way, reducing inquiries and boosting satisfaction.
- Returns management: Simplifying returns for customers with clear instructions and fast processing is key to maintaining loyalty in B2C eCommerce.
In B2B eCommerce, the stakes are higher, and the processes are more complex. An OMS for B2B businesses needs to handle bulk orders, complex payment terms, recurring purchases, and customized shipping needs. Some of the critical features include:
- Custom workflows and approval processes: B2B orders often require approvals from multiple departments, custom pricing, and tiered shipping options. OMS platforms built for B2B streamline these workflows.
- Account management and bulk ordering: B2B customers expect personalized account management and the ability to easily place large orders, often through negotiated contracts or recurring purchases.
- Multi-location inventory management: B2B companies often operate with larger, more distributed inventories. An OMS helps them allocate stock across various locations while minimizing excess stock or stockouts.
- Compliance and documentation: Many B2B industries have specific compliance requirements that need to be met, especially for cross-border shipments or regulated goods. An OMS can generate necessary documentation and ensure all protocols are followed during fulfillment.
Common Pitfalls of Order Management Software
Many eCommerce platforms fall short in a few key order management areas. These shortcomings can cause frustrations and inefficiencies that hinder growth, especially for businesses scaling up their operations or adding complexity.
Siloed Systems
Many older or less sophisticated OMS platforms fail to integrate smoothly with other essential systems such as ERP, WMS, or CRM platforms. When systems don’t talk to each other, it leads to fragmented data, miscommunication, and manual processes that eat up time and resources. This is particularly problematic for omnichannel businesses, where data must flow seamlessly between online, in-store, and third-party sales channels.
Limited Flexibility
Many OMS platforms aren’t designed to handle the diverse needs of growing businesses, especially those operating in both B2B and B2C markets. B2B companies often need customizable workflows, complex pricing structures, and bulk order management, while B2C companies need high-speed processing and streamlined customer communication. Rigid or too narrowly focused platforms may struggle to meet the varied needs of hybrid businesses.
Poor Scalability
When a business grows, its order management needs to quickly scale. An OMS that can’t keep up with increasing order volumes or expanding product lines will eventually become a bottleneck. Many businesses experience growing pains when their software can’t handle larger order volumes, more inventory locations, or more complex routing and fulfillment strategies.
Weak Automation and AI Capabilities
Automation is key to efficiency, especially for high-volume businesses. Some older platforms require too much manual intervention in areas like order routing, inventory allocation, or customer communication. More modern systems use AI and machine learning to predict demand, automate order processing, and make data-driven decisions in real-time. Businesses that lack these advanced capabilities often fall behind competitors.
Limited Visibility Across Channels
For businesses that operate in multiple sales channels (e.g., eCommerce, marketplaces, brick-and-mortar), it’s critical to have complete visibility into inventory, orders, and customer data across all these platforms. Some order management systems struggle to consolidate data from different channels, resulting in disconnected views and poor decision-making. This can lead to overselling, poor inventory management, and ultimately, a bad customer experience.
OMS Buyer’s Guide: How to Choose the Right Order Management System
Why Order Management Software is Crucial for Growing Businesses
For growing businesses, whether B2B or B2C, implementing an effective OMS is not a luxury—it’s a necessity. Here’s why:
- Scalability: As businesses grow, their needs change rapidly. Without an OMS that can easily scale to handle increased order volumes, new product lines, or expanded fulfillment networks, businesses risk hitting operational bottlenecks that can hinder growth.
- Unified View: Maintaining a unified view of orders, inventory, and customer interactions across multiple channels is crucial for success. With the right OMS, businesses can track orders from inception to fulfillment and maintain accurate inventory levels while offering a seamless customer experience.
- Cost Efficiency: By automating repetitive tasks and minimizing errors, an OMS reduces the need for manual labor and lowers operational costs. Automated order routing can help businesses choose the most cost-efficient fulfillment options while ensuring timely delivery.
- Customer Experience: In both B2B and B2C markets, customer satisfaction is often the difference between success and failure. An OMS helps businesses meet customer expectations for timely, accurate, and reliable service. In B2C, this might mean fast, free shipping. In B2B, it might mean reliable fulfillment of large, complex orders with the correct documentation and compliance.
Order Management Software with Kibo Commerce
Kibo Commerce offers a modern Order Management System (OMS), rooted in composable commerce best practices, that empowers businesses of all sizes to transform their order processes with agility and efficiency. Whether you’re managing B2B or B2C orders, Kibo’s flexible OMS can help you unlock the full potential of your eCommerce operations.
- Unify Data Across Channels
Kibo’s OMS eliminates data silos, providing a unified view of real-time order, inventory, and customer data across all sales channels. This single source of truth helps businesses improve inventory visibility, avoid stockouts, and offer customers consistent, reliable experiences, whether they shop online, in-store, or via mobile. - Optimized Fulfillment at Scale
Kibo’s intelligent order routing engine ensures that orders are sourced from the most optimal locations based on custom-defined rules, helping businesses reduce fulfillment costs and meet SLAs. With flexible workflows, Kibo’s OMS adapts to the unique requirements of each business, supporting complex fulfillment models like BOPIS, dropship, and ship-from-store. - Modular Capabilities for Growth
Kibo’s composable OMS allows businesses to implement the exact features they need without the bloat of unnecessary technology. This flexibility is especially valuable for companies looking to grow, enabling them to scale operations and expand into new markets without overhauling their systems. From custom order routing to advanced subscription management, Kibo’s modular approach puts control back in your hands. - Customizable Workflows and Automation
Kibo OMS automates time-consuming tasks like order splitting, substitutions, and returns, freeing up resources to focus on growth. Businesses can customize workflows based on specific needs, such as split shipments, regional fulfillment strategies, or VIP order handling, ensuring that operations stay agile and responsive to changes - Rich Analytics and Real-Time Insights
With Kibo, businesses can track key metrics like revenue, shipment performance, and customer behavior, using real-time data to make informed decisions. Integrated reporting tools provide insights into every aspect of order management, from warehouse efficiency to customer satisfaction, helping companies refine their strategies and optimize performance. -
Seamless Integration and Extensibility
Kibo’s API-first, microservices-based architecture ensures seamless integration with existing technology stacks, including ERP, CRM, and eCommerce platforms. Businesses gain the flexibility to extend and modify their order management system as needed, without the limitations of legacy software.
FAQs
What is order management software (OMS)?
Order management software is a system designed to manage the entire lifecycle of an order, from placement to delivery and even returns. It centralizes order processing, inventory management, shipping logistics, and customer communication across multiple channels, streamlining operations for both B2B and B2C businesses.
How does order management software differ for B2B and B2C businesses?
B2B businesses often require more complex functionalities like bulk ordering, custom pricing, and multi-location shipping, while B2C companies prioritize speed, simplicity, and customer communication. An OMS for B2B typically supports more intricate workflows, whereas B2C-focused systems emphasize fast fulfillment and real-time updates.
What are the benefits of using order management software?
OMS platforms improve operational efficiency by automating key tasks such as inventory tracking, order routing, and customer communication. They provide real-time data, reduce manual errors, and help businesses scale by managing growing order volumes, all while enhancing the overall customer experience.
Can order management software integrate with other systems?
Yes, most modern OMS platforms integrate with systems like ERPs, CRMs, WMS (warehouse management systems), and eCommerce platforms. Seamless integration ensures data consistency across sales channels, warehouses, and fulfillment processes, providing a unified view of all business operations.
What common challenges do businesses face with order management software?
Many businesses struggle with scalability, integration issues, and limited flexibility in legacy OMS platforms. These systems often have difficulty handling large order volumes, managing inventory across multiple channels, or adapting to complex B2B workflows without significant customization.
