How to Stay in Step With eCommerce Trends by Combining OMS and WMS

Table Of Contents  hide

1. What is Warehouse Management System?

2. What is an Order Management System?

3. OMS & WMS Integration for Omnichannel Retail

3.1. Operational Flexibility

3.2. Boost in Warehouse Productivity and Process Optimization

3.3. Enhanced Customer Service via Omnichannel

Global eCommerce growth necessitates technologies and management approaches that can adapt to online shoppers. eCommerce trends are constantly evolving in line with digital technology shifts across the landscape, mandating that retailers leverage technology that distributes to both stores and individual customers in order to fulfill shipping tasks at their best. Businesses can manage their inventory and incoming orders with the help of two platforms.

With the expansion of the internet, warehouse management systems (WMS) and order management systems (OMS) have seen significant development. The distinctions between these systems, which may have incorporated earlier enterprise resource planning (ERP) systems, have gotten a little hazy. Essentially, the advantages of both OMS and WMS have morphed into those of their counterparts, and for some, integrating both systems into a single, cohesive system can provide significant advantages across the supply chain’s expanding omnichannel.

What is Warehouse Management System?

A warehouse management system is a popular software programme used in retail and manufacturing to keep track of the supplies and commodities that are brought into, taken out of, and moved about the warehouse. Additionally, it aids companies in streamlining all warehousing operations. These solutions can not only track items and resources, but they can also create systems to simplify order picking and packing in order to help factory workers and reduce manual operations especially to keep up with online shopping trends.

WMS software also provides intelligence, such as data analytics and reporting. In the event that a consumer places an order, the system may immediately explore to see whether the product is readily available. Employees are no longer required to manually compare orders with inventories to ensure availability. Instead, it will perform all of the cross-checking independently and, if an order is available, it’ll be marked as ready for packing. Enterprises save so much time, money, and effort thanks to WMS that, when used effectively, these systems end up paying for themselves.

What is an Order Management System?

An order management system (OMS) is a digital tool for controlling an order’s lifecycle.   It keeps track of all data and operations, including order entry, inventory control, order fulfillment, and post-sale support. An OMS provides visibility to the customer and the businesses can monitor the status of an order and  access almost real-time information about inventories.

While order management hasn’t changed much on its own over the years, the surge in customer expectations and demands has made it more important than ever for merchants to adapt and satisfy customers. Since they are already accustomed to a simple and quick ordering process, businesses who don’t change will find it difficult to stay in business and prosper.

OMS & WMS Integration for Omnichannel Retail

Operational Flexibility

Omnichannel supply chains must be built and managed using flexible processes. All sales channels should be combined since clients need an omnichannel approach, which calls for connected technology. To put it another way, these systems must be able to exchange information to give customers a seamless experience, and they must be able to handle ecommerce trends like AI-driven personalisation now expected by customers, and companies who can deliver it will profit regardless of how or where a customer interacts with your business, the objective is to provide a seamless, consistent experience for them that feels “personal.”

Another significant issue that calls for the flexibility offered by OMS and WMS systems that are integrated is reverse logistics, such as returns or recycled products. Low customer satisfaction, higher shipping and handling expenses, and potential “damage-control” expenditures for protecting the business’s reputation with the client are all consequences of picking and packaging mistakes that result in returns. Therefore, all processes must be capable of handling slotting, picking, packaging, and shipping while also being able to regulate both inbound and outgoing logistics, including returns. In other words, the interconnectivity of various systems enables enhanced process management and improved problem-solving.

Boost in Warehouse Productivity and Process Optimization

Combining the WMS and OMS also aids in improving slotting optimization in warehouses and lowering picking expenses. Big Data and analytics are the foundational elements for understanding how the combination encourages picking and slotting optimization.

For instance, this combination enables strong analytics to identify online shopping trends among customers and modify slotting configurations to support shorter lead times. Warehouse managers can better arrange personnel schedules and adapt to demand variations thanks to the systems’ automated data sharing. As a result, overall scalability is improved and peak order accuracy is simultaneously increased. Lower expenses during peak and off-peak periods aid merchants in controlling costs and streamlining accounting procedures for all parties.

Enhanced Customer Service via Omnichannel

Think about how interconnected systems encourage improved product cycle and warehouse visibility. To create a transparent order process in the omnichannel supply chain, bridging the gap between the WMS and OMS is crucial, especially in light of consumers’ rising expectations.

In contrast to conventional multi-channel sales methods, omnichannel sales depend on ongoing cooperation and partnership between all sales channels to provide customers with a seamless experience. Nevertheless, this is not feasible unless all partners have a seamless method of recognising similar information and attending to consumer requests. In order to have better visibility into the order fulfilment process, data from both systems should be exchanged. Integrated systems might inform clients about potential delays or the company’s approach to a potential problem. Similarly to that, the combined system can notify managers and team members of potential problems, allowing them to fix them before they have a detrimental impact on the client experience.

With increased customer expectations and an abundance of options for them to consider, creating a consistent shopping experience for customers is essential for business survival, especially in the retail sector. Enterprises will need to integrate both OMS and WMS systems in the future to provide a seamless and highly desired omnichannel sales experience. Retailers who don’t provide this will have to bear huge overhead costs and struggle to live up to the expectations of their clientele.