If you own an eCommerce website that runs on Magento, you may have had your fair share of tracking, inventory and order fulfillment issues if you’re still using the outdated Magento 1 version.
Whether you’ve faced complex shipping schedules, stockouts or disappointed customers who didn’t get their package on time, running an efficient eCommerce business is a science that requires organization, efficiency and access to real-time data.
The best solution? An order management system.
Here, we’ll explain what an order management system is, along with its benefits, top features to look for when choosing an OMS and the five best order management solutions for Magento.
Plus, we’ll share our own expert Magento integration services at Digital Silk.
What Is An Order Management System?
An order management system (OMS) is a software system that keeps track of orders, inventory and sales.
Think of it as a centralized system where you can manage the life cycle of your customers’ orders.
An OMS tracks inventory levels by channels, handles your reverse logistics process, manages customer information and automates your order fulfillment process for smooth and efficient operation.
5 Benefits Of Implementing A Magento Order Management Software
From reducing human error to streamlining your picking and packing process, here are the top benefits of implementing an OMS.
1. Reduces Human Error
Did you know that 55% of retailers are still using pen-and-paper manual processes in their logistics operations?
Human error is minimized when you implement automation.
An order management system reduces human error by allowing you to keep a database of customer information including names, shipping addresses and tracking info, so you can easily view order history, track packages and update addresses when needed.
This helps ensure your customer information is always up-to-date and reduces the risk of sending packages to incorrect or outdated addresses.
2. Provides Accurate Reporting
Without tracking, packages can get lost and quickly lead to upset customers.
Packages can get misplaced even with tracking, but the difference is, you’re able to see where they end up and either redirect the item or replace it for your customer.
When you implement an order management system, you can keep track of the progress of your orders in real time.
This can help you get ahead of shipping issues and ensure your customer satisfaction remains high, leading to loyal consumers.
3. Saves Time
An OMS can help you save time by giving you easy access to information at your fingertips.
It records historical order data, so you can quickly pull customer order history or even use the data to determine sales trends and forecast demand.
4. Streamlines Your Picking & Packing Process
Did you know that 43% of consumers choose the next-day delivery option when shopping online?
While cost of delivery is a key factor for many consumers, waiting time also plays a vital role, and customers often want their purchases as quickly as possible.
An order management system helps you speed up the picking and packing process by identifying the fulfillment center closest to your customer, where the item is available.
Once it sends the order information to the chosen fulfillment center, your customer’s product gets picked, packed and delivered in the shortest amount of time possible.
5. Prevents Over-stocking And Stockouts
According to a recent study, two billion out-of-stock messages were presented online in October 2021 alone.
Overstocking can rack up costs without creating profit or cash flow, thanks to dead stock resting on your warehouse shelves.
On the other hand, stockouts can damage your brand’s reputation and also cause frustration for your customers who are ready to buy your product.
Ultimately, both issues can lead to a loss in revenue.
So how does an order management system help prevent these inventory issues?
An OMS can provide your business with a centralized view of your inventory, which helps you track and manage your stock levels.
You’ll get a bird’s eye view of items that need to be reordered and items that might benefit from sales or promotions to get them moving.
Top Features To Look For In A Magento Order Management System
Order management systems aren’t necessarily a one-size-fits-all solution. To choose the best system for your business, look for these top features:
- Sales channels: Your OMS should receive and gather information from all points of your sale, including your in-store, online and call center. Some systems also support orders from different global regions and multiple currencies.
- Sales support: Your OMS should update your product availability and information in real time for your customers and your customer service team. This ensures that your business delivers a better experience for your customers while supporting customer exchanges and returns.
- Customer database: Your OMS should have easy access to customer contact details and order activity, including previous orders. This allows your customer service representatives to accurately search throughout your database when assisting a customer.
- Customer tagging: Your OMS should allow you to effortlessly tag your customers so you can categorize and keep track of your customer database on the spot. For example, you can tag your customers for customer service follow-ups or tag prioritized groups of VIP or even problematic customers.
- Cloud-based: A cloud-based OMS can come in handy so you can access information from anywhere, as long as you have an internet connection.
- Growth and expansion support: Before implementing an OMS, consider both your current and future needs. For example, if you plan for business growth, your OMS should be able meet your operational complexities when the time comes.
- Inventory management: With an OMS, you get a bird’s eye view of your inventory. This can help you track and manage your stock levels and inventory management algorithms that guide orders to their proper warehouse, while identifying the best shipping options. Make sure the solution you choose includes advanced inventory management features.
5 Best Order Management Solutions For Magento
Magento is a top eCommerce platform that offers numerous features, functionalities and integrations.
When combined with an order management system, your e-store can benefit from increased accuracy, efficiency and customer satisfaction.
Here are five of the top order management solutions you can integrate with Magento:
While NetSuite isn’t the cheapest solution for order management (it costs between $2,000 and $3,000 monthly), it is a cloud-based ERP and is considered the most full-featured SAAS ERP platform currently available on the market.
It is suitable for businesses of all sizes, so whether you’re a start-up or national organization, you can integrate NetSuite with your Magento solution.
NetSuite doesn’t require hardware, complex set-ups or upfront license and maintenance fees. While it also doesn’t offer a free trial, you can view a free product demo on their website.
It allows you to plug in new modules when needed, including:
- NetSuite Financial Management Modules
- NetSuite Customer Relationship Management Module
- NetSuite Inventory and Order Management Modules
- NetSuite Commerce Modules
- NetSuite Human Resources Modules
- NetSuite Professional Services Automation Modules
- NetSuite Supply Chain Modules
Next on our list is Linnworks, an inexpensive cloud-based software that allows your business to manage your orders, inventory and fulfillment from a single dashboard.
The price for this system ranges from $200 up to $1,390 for corporate accounts.
Linnworks has integrations to marketplace applications including ebay, Amazon and Rakuten.
3. Stitch Labs
If you’re looking for a low-cost order management solution that allows you to handle inventory for different sales channels, Stitch Labs might be just the solution for you.
Stitch Labs is a cloud-based order management solution that works with mid-size multi-channel retail brands.
It serves as an operational hub to brand operations, centralizing inventory across all sales channels and locations for better control and visibility.
4. Khaos Control
Khaos Control is a cloud-based order management solution from the UK that has been around for 20 years.
While their rates start at £63 per user, per month, they also offer a free trial.
Khaos Control’s most notable features include:
- Multichannel selling software online and in-store
- Integrated accounts and custom reporting
- Advanced stock control and warehouse management
Last on our list is Brightpearl, a cloud-based order management system that can manage your eCommerce store’s accounting, CRM, order and inventory management.
Brightpearl’s pricing is quote-based, but they highlight that they primarily base their rates on order volume.
Magento Integration Services At Digital Silk
After choosing an order management system, it’s time to integrate it with your e-store — and we can help!
Digital Silk is a top-ranked Magento development agency that delivers end-to-end Magento services.
From consulting on your current or future eCommerce store to custom development and design, Magento 2 migration, integration and PWAs to optimize your digital performance and boost conversion, our experts have you covered.
Here’s a look at our integration process:
Step 1: Onboarding
First, we get to know you as a client. We research your industry, competition, target audience, user behavior and more. We analyze your existing Magento architecture and the solution you’re using.
Step 2: Recommendations
Next, we provide you with a set of recommendations for third-party solutions, based on our research and the requirements you shared in the onboarding process.
Step 3: Integration
We then synchronize your POS, ERP, PIM, accounting and marketing systems to unify your data flow, provide real-time analytics, and improve inventory management, productivity and client satisfaction.
Step 4: Security
Our experts closely monitor Magento’s regular security updates so we can upgrade your solution and keep your customer data safe.
Step 5: Functional QA
We then test your integrations in the staging environment (sandbox).
Once your eCommerce store is up and running, we start conducting tests in your production environment to make sure everything is running seamlessly.
Step 6: Launch
Once the QA is complete, your e-store is ready for take-off!
Step 7: Support And Maintenance
Our services don’t end even after your e-store has been launched.
After each successful launch, we offer additional support and maintenance services to ensure your e-store is flexible, secure and performs according to the latest industry and technology trends so you stay competitive and a step ahead of your competition.
Digital Silk’s Additional Magento Services
Integration of your order management system isn’t the only Magento service we offer. Our certified Magento developers can help you with any Magento project, including:
Magento End-to-End Development Services
We equip your Magento e-store with the latest features and functionalities in online shopping: responsive design, high speed, flexibility, security and more.
Our experts build custom shopping experiences centered on your target customers to increase engagement, reach new customers and encourage repeat visits.
Custom Magento Development
We craft customized solutions to equip your Magento e-store with clean code, customized CMS, superior functionality and scalability, to help your brand stand out against the competition.
Magento Website Design
Our team creates custom UX and UI to optimize customer retention, conversion and search engine ranking.
Check out the custom Magento website our Digital Silk team created for antique furniture company Eurolux Home, below.
At Digital Silk, we create strategic designs by studying industry trends, competitors’ digital presence and target audience behavior, then applying research-driven best practices to your solution.
We look at your Magento store from the perspective of your customers and provide exactly what they are looking for: a friendly and engaging shopping experience in both online and offline environments, without complicated processes or connection interruptions.
From development and integrations to Magento store planning, optimization, design and marketing, we provide Magento consulting services as part of our end-to-end development offering, and as a stand-alone service.
Magento Migration Services
We migrate your e-store to Magento 2 so you can benefit from the features and functionalities of the new version: flexibility, high speed, security, increased engagement and a streamlined shopping process.
Wrapping Up On Magento Order Management Systems
While an order management system is one way to help you efficiently run your eCommerce website and keep your customers happy, not every solution is one-size-fits-all.
At Digital Silk, we offer end-to-end Magento services. That includes consulting to help you determine which OMS is right for you, custom design, integration, migration and more.