Order Management

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What is Order Management? Meaning.

Order Management (OM) is the process of order capturing, tracking, and fulfilling customer orders.
It involves the seamless integration of orders from multiple channels with inventory databases, data collection, order processing including credit card verification, fulfillment systems and returns across the entire fulfillment network.

For proper execution, the process involves real-time visibility into the entire order lifecycle starting from the placement of order and ensuring that orders (SKUs) are not lost, delayed, or corrupted during the fulfillment process. The OM system may also comply with and support parcel carriers and provide sophisticated, centralized freight management and tracking/tracing capabilities. Clients, customer service representatives account managers and suppliers will thus have the ability to track real-time inventory levels for each SKU and inquire about order and shipment status.
It's a sort of umbrella term that is comprised of multiple value chain activities including managing orders, customer records, fulfillment, inventory visibility, payments and invoicing, and customer care.

Order Management Systems

When scaling a business, it's important to automate and streamline the OM process. Otherwise, you might eventually be overwhelmed by too many orders coming in and/or too many logistical/fulfillment issues.
An OM system gives you a single view to manage all customer orders in one place. They may offer bi-directional sync that makes sure order information is passed between the OM system and sales/ecommerce platforms while providing visibility into all logistical, financial and informational processes.

Order Management Cycle Stages

The main stages/statuses (there can be more!) in an order management cycle are:

  1. Order is placed
  2. Order is received (in warehouse/fulfillment center)
  3. Order is picked
  4. Order is packaged
  5. Order is shipped
  6. Item is delivered/received
  7. Item is returned
  8. Returned item is received

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