The ultimate guide to usage-based pricing
Launching a usage-based pricing model
Measure and track usage
Pricing and packaging for usage
A CFO’s guide to usage pricing models
Revenue recognition for usage
The pros and cons of usage-based pricing
The technology to support usage pricing

Choosing the right order management software

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Businesses need the right tools in their tech stack to execute order management effectively. Managing the entire process manually is nearly impossible, so order management software is essential. With the right solution, your organization can leverage automation, streamline workflows, and improve collaboration with fewer errors. 

However, there are many order management software solutions on the market. Follow the tips in this section to choose the right OMS, understand which features to look for, and learn how to evaluate OMS vendors to find the perfect solution for your organization. 

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How to choose the right OMS for your business

Choosing the right OMS can improve efficiency, reduce costs, and enhance the customer experience. Follow these tips to select software that aligns with your most significant pain points. 

1. Conduct a gap analysis

Where are the weaknesses in your order management process? For example, your turnaround time may be too long. Or maybe there are frequent errors because your team relies too much on manual data inputs. 

 

Identifying these issues will help you pick a more relevant, helpful order management software solution that fixes your biggest problems. 

2. Understand your needs

Now that you understand where your processes fall short, sit down with your team to define what you need the software to do. For example, if errors are a big pain point, automation and AI integrations should be at the top of your list of needs. 

 

Make a list of these needs and compare them with various order management systems. This approach ensures you select the best possible match for your needs.

3. Evaluate your current technology stack

Your organization uses other technologies and tools. The better your order management software integrates with these solutions, the smoother and more accurate the order management process will be. 

 

List your current ERP, CRM, inventory management, customer service, and marketing platforms. When it’s time to evaluate a vendor, ask if they have pre-built connections to these solutions or if they can offer a custom connection. 

 

Finding order management software with built-in integrations is the fastest way to implement a new solution and speed up time to value. However, this shouldn’t be a deal-breaker if the software is otherwise a good fit. 

4. Decide whether you want on-premise or a cloud-based solution

Generally speaking, cloud-based order management software is today’s standard. It’s highly scalable and doesn’t require organizations to hire in-house technology staff to manage. If anything breaks, the vendor is responsible for repairs. 

 

On-premise solutions require in-house experts to manage, but they give you greater control and security. The downside is that on-premise is often prohibitively expensive for smaller organizations. 

 

Consider whether you prefer the affordability and convenience of the cloud or the control and security of on-premise to find the right order management software. 

What to look for in order management software

Once you understand your organization’s needs, it’s time to consider the features needed for your order management software. Every company is different, but these essential features are key in any OMS.

Order processing

The OMS should consolidate orders from all your sales channels — ecommerce websites, physical stores, or wholesale accounts — into a single dashboard. This feature eliminates manual order tracking and gives you a real-time view of all orders. 

Real-time inventory management

If you sell physical inventory, look for tools that automatically update inventory levels across all channels to prevent overselling or stockouts. Low-stock alerts and multi-location tracking are also helpful.

Integrations

Order management software should seamlessly integrate with other solutions to give you a holistic view of the order management process. Consider its integrations with accounting solutions, shipping providers, and ecommerce platforms. 

 

The more integrations your order management software supports, the less manual effort your team will need to put into their workflows. 

Automation

Automating routine tasks like order routing, invoice generation, and shipping label creation saves time and reduces errors. Many order management systems include built-in task managers to automatically assign orders to specific locations or generate purchase orders when stock is low. 

 

Consider whether the OMS also offers AI-powered automations, which can perform higher-level tasks.

Customization

Every organization is unique. Order management software should offer some customization to fit how your organization manages orders. Modular setups, pay-for-what-you-use models, and customizable drag-and-drop workflows allow you to make the solution your own. 

Analytics

Any reputable order management software solution should include robust reports. Without this data, it’s impossible to spot points of friction and improve operational efficiency. 

 

Look for OMS that tracks historical metrics and provides reports on sales trends, performance, and customer behavior. Many solutions now offer AI-powered analytics that, after a period of time gathering and analyzing data, can provide personalized insights into performance.

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How to evaluate OMS vendors

Different order management systems often include the same features, so assessing the vendor offering the OMS is crucial. Follow the tips below to evaluate vendors before signing a contract.

 

  • Evaluate pricing: Understand the vendor’s pricing model. Some charge a subscription fee, while others offer a modular, pay-as-you-go model. Pay-as-you-go is more appropriate for businesses with fluctuating order volumes or seasonality, while subscriptions are best if you have consistent volume. 
  • Request demos and trials: Always ask OMS vendors for a live demo or free trial period to test the software. Better yet, ask employees to evaluate multiple options and share their feedback with management. This step ensures you choose an intuitive solution. 
  • Read reviews: Check platforms like G2, Capterra, and Google for reviews. If reviews aren’t available, ask the OMS vendor for case studies or client testimonials. This step ensures you only work with reputable vendors that have a proven track record.
  • Ask about the timeline: Some vendors can get your order management software up and running in just a few days, while others require weeks for implementation. The timeline often depends on the complexity of your order management processes and needs. Always ask OMS vendors for an estimated timeline to manage your expectations of the onboarding process. 

Changing order management software after the fact requires time and resources, so consider your options carefully. The ideal OMS will scale with your business, offering more value as the company grows.

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