What is an order management system (OMS)?

8 min read

Despite all technological development that supports all areas of the business world, the competitive, rapidly changing, and extremely huge market makes modern order management processes a complex task. 

order management


Companies use an order management system (OMS) to support this complicated business process. An order management system aims to automate order management processes by covering different elements relating to customer orders. It is supposed to enable visibility for employees and customers to view and track each order from placement until completion. It also supports analyzing the overall efficiency and effectiveness of the process.


Essential functions of an OMS

There are particular functions that an order management system must carry out regardless of the size or nature of the company. Of course, the complexity of its tasks depends on the business. That is the reason why some companies would require a more comprehensive system for successful operations. But now, let’s discuss the must-have features of an OMS. 


Order tracking

The most fundamental function of any order management system is to track and monitor customer orders. Once your eCommerce passes the entry stage and enlarges its sizes, it would simply be impossible even for highly professional staff to handle orders without a proper order management system. 

That is why you should consider integrating an OMS to make your and your customer’s life easier. The right system makes inventory and order management, logistics, and other processes far smoother and more automated from the business’ perspective. As for customers, the OMS improves their buying experience by making it more seamless.

Of course, the system is much more essential for the companies that sell through different channels. With a proper OMS, they can record, track and control orders in one synchronized platform. A centralized sales system makes the whole process a lot more efficient and effective with reduced time and error. 

This feature is offered by an inventory management software system, eSwap. Managing all orders from a single platform makes the processes much organized and saves time for businesses and customers. 


Order management


Inventory management and monitoring


Inventory is one of the critical and most significant assets of especially retail and wholesale companies that requires careful and accurate monitoring and control. So, properly managing inventory is absolutely essential for an eCommerce business to avoid the following issues:

  • Overselling or understocking: This issue refers to the acceptance of sales for out-of-stock items. Because you will not be able to fulfill these orders on time, it will lead to order cancellations, dissatisfied customers, and a ruined reputation.
  • Overstocking: When you have no clear image of your inventory volumes, you might end up with over-ordering stock. Unnecessarily high stock levels create expenses and increase handling costs, waste warehouse space and increase the risk of obsolescence.  
  • Imprecise forecasting – Without precise inventory figures, it would be a very challenging task to assess customer demands accurately. Accurate inventory forecasting is one of the critical factors for a business’ success.


Learn more about how to forecast inventory here.


An order management system will strongly support your inventory monitoring processes. The proper software system will timely update inventory volumes. So, with every new order placement the system will change the inventory balance accordingly. 

This multi-channel inventory monitoring and management feature are offered by eSwap software.


Benefits of an OMS


eswap-store eswap-store-mobile


Inventory, Order & Shipping Management Software


Now let’s discuss the significant benefits that an effective OMS provides to your business. 




We all will indeed agree with the phrase saying that “time is money.” And considering the rapidly changing modern markets and trends, this statement has never been more accurate. If not performed effectively, order management processes can be highly time-consuming. And since we agreed that time is a critical intangible asset, businesses should direct their efforts to optimize business processes. 

The best way to do that is through automation of business operations. So, by integrating an effective OMS, data entry and other manual tasks will be effectively handled by software, giving more time to your employees to deal with complex tasks.


Reduction of human error


No matter how professional and attentive your staff is, it is almost impossible to achieve errorless completion of tasks when a human being performs them. Mistypings and forgetting are two of the most widespread human errors in the business world.  

Integrating the suitable OMS and automation of business processes will solve most of these potential human errors. So, as a result, there will be less opportunity left for mistakes to create significant problems. 


A decrease in human error will save the business time, money, reputation, and other crucial resources and assets.


On-time reporting


Even with absolute accuracy, it is sometimes impossible to get on-time updates on order processes, inventory levels, and other important figures and statistics. That is an even more complicated task when multiple software or tools are used for business operations instead of a unified platform. 


By leveraging a proper OMS, you will quickly access real-time centralized data on inventory, orders, and sales figures. The system will also easily prepare important analytical reports that you can use for smarter decision-making. 


Pleasant customer experience


The suitable OMS can improve the customer experience in many ways, including:


  • Up-to-date information on order statuses will allow customer support representatives to answer their questions adequately.
  • Customers can directly access their shipping and delivery information, including online tracking and shipment status updates.
  • The eCommerce, which has a connection to your inventory database, will inform customers about stockout items online. And they can even subscribe to receive an email or notification when the item gets back to stock.