Contact us
Arrow
E-commerce / Omnichannel

Why Your ERP Can’t Handle Order Management – and What to Do Instead

Sep 20, 2024

Many businesses rely on their ERP system for order management, assuming it can handle the complexities of modern commerce. The truth? It wasn’t built for that. As customer expectations for seamless omnichannel experiences continue to rise, relying on an ERP for order fulfillment can lead to inefficiencies, delays, and frustrated customers.

Order management is a key component in delivering on your customer promise. To some extent, the lifeblood of your business. If you can’t provide accurate information on when and where customers can expect to receive their order, they’ll hesitate to click that precious buy button. Even worse, if you can’t provide an update on delivery status or fail to deliver on time, you’ll lose customer trust, loyalty and ultimately – brand reputation.

Despite this, many businesses continue to rely on a patchwork of systems — often combining their ERP and commerce platforms — to manage the essential function of order management. However, this approach is riddled with inefficiencies and challenges, especially as consumer expectations continue to rise.

A specialized Order Management System (OMS) is designed to bridge these gaps, ensuring real-time inventory visibility, faster fulfillment, and a seamless customer experience across all channels. In this article, we’ll explore why your ERP isn’t enough, and how the right OMS can transform your operations and keep your customers happy.

Challenges with ERP and Commerce Platforms

ERP systems and commerce platforms are undoubtedly essential to your business operations, handling everything from finance management to sales processing. However, they are not designed to manage the complexities of omnichannel order fulfillment. As your business grows and customer demands evolve, the limitations of these systems become increasingly apparent.

One of the biggest challenges is data fragmentation. When data is siloed across multiple systems, it often leads to discrepancies between what is available and what is shown to customers. This lack of real-time inventory visibility can result in overselling, stockouts, and ultimately, disappointed customers. Managing orders across multiple systems is not only cumbersome but also time-consuming. Each system might require manual updates, increasing the likelihood of errors and delays. Switching between different platforms to manage orders can slow down the entire fulfillment process, leading to longer lead times and decreased customer satisfaction. For instance, a customer who expects next-day delivery may be left waiting due to inefficiencies in the order processing system, causing a negative impact on their shopping experience.

Better Option: A Specialized OMS

As your business grows, so does the complexity and volume of orders. Unfortunately, ERP and commerce platforms are often ill-equipped to handle this demand for increased and more detailed order data. The consequences? Missed sales opportunities, frustrated customers, and potentially significant revenue losses. Below we summarize three important reasons for investing in a specialized, distributed, order management system.

Meeting Consumer Expectations

Today’s consumers are more demanding than ever. They expect seamless, fast, and error-free order processes. They want real-time inventory visibility, flexible delivery options, and instant updates on their order status. If your business fails to meet these expectations, you risk not only losing sales but also damaging long-term customer loyalty. Consumers want to know whether a product is available before they make a purchase. A lack of real-time inventory data can result in overselling or stockouts, leading to customer dissatisfaction.

A distributed Order Management System (OMS) provides real-time visibility into inventory across all sales channels, ensuring that customers see accurate stock levels. This transparency helps build trust and encourages repeat purchases.

Streamlining and Improving Buying Experiences

Managing order processing efficiently is crucial in today’s competitive retail environment. Order processing can be complex, involving multiple steps from payment verification to picking, packing, and shipping. A distributed OMS streamlines these workflows, reducing the time it takes from order placement to fulfillment. This efficiency improves operational productivity and shortens delivery times, enhancing the overall customer experience.

At the heart of any successful retail operation is a satisfied customer. A distributed OMS improves the customer experience by ensuring that orders are processed quickly, accurately, and with minimal friction. Real-time updates, flexible delivery options, and reliable fulfillment all contribute to a positive customer journey that fosters loyalty and drives repeat business.

Preparing your business for the future

Investing in a distributed OMS is not just about addressing current inefficiencies; it’s about preparing for the future. As the retail landscape continues to evolve, having a robust and flexible order management solution will be crucial to staying ahead of the competition. The ability to adapt to changing consumer demands, scale efficiently, and maintain high levels of customer satisfaction will set your business apart in an increasingly crowded market.

The complexities of omnichannel retail demand a distributed approach to order management. While vital to overall operations, ERP and commerce platforms fall short when handling the intricacies of modern order fulfillment. A specialized OMS not only addresses these shortcomings but also enhances your ability to meet and exceed customer expectations. By investing in an OMS, you’re not just improving operational efficiency,—you’re future proofing your business and positioning it for long-term success.

Is implementing a distributed Order Management System on your agenda? Contact us to discuss your needs and we’ll help you find the best solution for your business.