An Order Management System (OMS) is a software platform that helps businesses manage the entire order fulfillment process, from order placement to delivery on eCommerce channels, through a company’s website or a third-party marketplace like Amazon. For example, Nike uses OMS to handle orders from their multiple channels. Here’s how the process might work: 

• Order placement: A customer places an order for a pair of shoes on Nike’s website.
• Order confirmation: After the order is placed, an order confirmation is sent to the customer via email or a text message, so the customer can acknowledge the receipt and important details such as items purchased, prices, order number, and expected delivery details.
• Order processing: The OMS immediately processes the order, verifies payment, checks the availability of items purchased across multiple warehouses and stores, and routes the order information to the nearest warehouse or fulfillment center.
• Order picking, packing, and shipping: The OMS sends the order to the warehouse team and automatically arranges for the product to be picked, packed, and shipped, using a courier like FedEx.
• Order tracking: A tracking number is generated and the customer is updated via email, allowing them to monitor the shipment’s updates.
• Delivery: The package has arrived! A delivery confirmation is sent to the customer.
• Returns Management: If the customer wants to return the shoes, they can initiate a return online. The OMS processes the return, updates the inventory, and arranges for a refund.

Besides seamlessly integrating with other business systems, OMS is characterized by its error reduction and workflow automation. It consolidates all order information from various sales channels into one platform. This centralization reduces the risk of inconsistencies that can occur when managing orders across multiple systems. OMS automatically collects and processes order data, eliminating the need for manual input and ensuring that orders are consistently processed with accurate information.