Understanding Order Management Systems (OMS) and How OMS Software Works

In today’s fast-paced ecommerce landscape, efficient order management is crucial for businesses to keep up with increasing customer demands. This is where an Order Management System (OMS) becomes essential, providing a centralised solution to manage orders across various sales channels, oversee inventory, and optimise logistics. In this blog, we’ll explore what an OMS is, how OMS software works, and how it supports the fulfilment process across warehouses, 3PL logistics, and ecommerce platforms like Shopify and Amazon.

What is an Order Management System (OMS)?

An Order Management System (OMS) is a digital platform designed to handle all aspects of order processing, from order placement and inventory tracking to picking, packing, and shipping. An OMS integrates with multiple sales channels, such as ecommerce fulfilment, 3PL logistics providers, and fulfilment centres, streamlining operations and ensuring customer orders are fulfilled efficiently.
Whether you’re running a 3PL warehouse in the UK, a warehouse 3PL provider, or a direct-to-consumer ecommerce brand, an OMS helps maintain accuracy, minimise errors, and improve overall customer satisfaction.

How OMS Software Works

OMS software connects every aspect of the order lifecycle, linking inventory management, warehouse logistics, and fulfilment services in one seamless system. Here’s how OMS software works to optimise the order management process:

1. Order Consolidation
2. The OMS consolidates orders from multiple platforms such as your website, Shopify, Amazon, and even social commerce channels like TikTok into a single dashboard. This ensures no orders are missed and provides a clear overview of incoming sales.
3. Inventory Management
4. By integrating with warehouse management systems (WMS), an OMS provides real-time inventory tracking across multiple locations, including 3PL warehouses, pallet storage systems, and pick and pack warehouses. This helps prevent stockouts and overstocking, leading to better warehouse utilisation and cost savings.
5. Warehouse Operations and Fulfilment
6. The OMS syncs with the fulfilment centre or 3PL warehouse to optimise the picking and packing process. Warehouse picking and packing involves locating items in the warehouse, packaging them properly with custom packaging or UK packaging solutions, and preparing them for shipment. Pick and pack services integrated with the OMS ensure that orders are processed quickly and accurately.
7. Shipping and Delivery
8. Once orders are packed, the OMS automates the shipping process, selecting the best carrier based on cost, speed, or specific customer requests. Whether it’s domestic delivery or global shipping for platforms like TikTok, an OMS ensures that your products reach customers quickly and efficiently.
9. Returns and Refund Management
10. Returns are an inevitable part of ecommerce, and the OMS simplifies the returns process by coordinating with warehouse 3PL and 3PL fulfilment providers to ensure returned products are restocked, refunded, or exchanged quickly and efficiently.

Key Benefits of an OMS for 3PL and Ecommerce Fulfilment

For businesses working with 3PL logistics providers or operating their own warehouses, the benefits of OMS software are extensive:

• Seamless Integration with 3PL Warehouses
• An OMS connects directly to 3PL warehouse management systems for real-time updates on stock levels, order processing, and shipping status. This helps logistics providers offer more accurate and reliable services to their clients.
• Improved Warehouse Efficiency
• Through features like pick-to-pack and picking packing automation, an OMS reduces human errors and speeds up the fulfilment process. It also optimises warehouse pallet storage racks, ensuring that products are stored and retrieved efficiently.
• Better Customer Experience
• Fast, accurate order fulfilment leads to happier customers. With an OMS in place, businesses can provide real-time shipping updates, handle returns smoothly, and respond quickly to customer inquiries.
• Support for Multi-Channel Selling
• If you’re selling across platforms like Amazon (FBA), Shopify, and TikTok, an OMS makes managing multiple channels easy. It consolidates orders from different sources and automates order routing to the appropriate 3PL warehouse or fulfilment centre.

3PL and 4PL: Understanding the Difference

For logistics companies and businesses, it’s essential to understand the difference between 3PL (third-party logistics) and 4PL (fourth-party logistics) providers. While 3PL logistics companies focus on warehousing, transportation, and distribution, 4PL logistics providers go a step further by overseeing the entire supply chain, from raw materials to final delivery. Companies working with 4PL logistics services benefit from end-to-end supply chain solutions, offering more comprehensive logistics management.
The Future of Ecommerce and Order Management
As ecommerce continues to grow, the demand for 3PL warehousing and advanced logistics solutions will increase. Businesses leveraging an OMS will be well-equipped to handle this demand while maintaining operational efficiency and delivering a high-quality customer experience.
In the UK, 3PL warehouse solutions, fulfilled by Amazon (UK), and UK fulfilment services are already seeing significant growth. This is due to the rise in ecommerce sales and the need for fast, reliable order fulfilment. With features like automated picking packing, labelling, and packaging design, OMS software can help businesses scale their operations while meeting customer expectations.

Conclusion

An Order Management System (OMS) is vital for modern businesses, particularly those in ecommerce, logistics, and warehousing. By connecting 3PL warehousing, inventory management, and multi-channel order fulfilment, an OMS ensures that every order is processed efficiently and accurately. Whether you’re a logistics company offering pick and pack services, or an ecommerce brand handling global shipping through platforms like Amazon and TikTok, adopting an OMS can transform your operations and enhance customer satisfaction.
Embrace the future of ecommerce fulfilment with a powerful OMS, and keep your logistics and warehousing operations running smoothly from start to finish.