A Closer Look at an e-Commerce Delivery Order Management System

Nov., 30 2022

E-commerce businesses have to manage a lot of different orders and delivery routes. A delivery order management system (DOMS) can help with that. It's a software application that helps plan, optimize, and track deliveries. 

A DOMS can be used for same-day, next-day, and even multi-day deliveries. It can help you plan the most efficient delivery routes, track your fleet, and manage your orders. It can also help you communicate with your customers. 

If you're running an e-commerce business, a DOMS can be a valuable tool. In this article, we'll take a closer look at what a DOMS is and how it can help you manage your deliveries.


An introduction to delivery order management systems

If you want to provide a great customer experience, order management involves a number of complicated procedures that must work together seamlessly. These activities range from inventory management and fulfilment tracking to analytics and reporting.

Businesses aiming to expand are turning to order management systems to automate their everyday tasks rather than wasting time on time-consuming manual tasks. However, what precisely are order management systems, and are they essential for growing your business?

This guide will cover the following topics to assist you in fully comprehend all you need to know:


What is an order management system in e-commerce?


An order management system (OMS) is a software application that helps businesses manage their orders and inventory. It is a critical part of any e-commerce business, as it helps to ensure that orders are fulfilled accurately and in a timely manner. 


An OMS will typically track orders from the time they are placed until they are shipped, and it will also keep track of inventory levels. This information can be used to generate reports, which can help businesses to improve their operations and/or to make better decisions about pricing and promotions. 

An OMS can be integrated with other software applications, such as a customer relationship management (CRM) system or a warehouse management system (WMS). This integration can help to further streamline operations and improve efficiencies.

A Delivery Order Management System (DOMS) is an e-commerce software application that manages the process of taking customer orders and delivering them to the customer's door. The steps in this process flow are as follows:

Step #1: The customer places an order on the e-commerce website.
Step #2: The order is received by the e-commerce company.
Step #3: The e-commerce company processes the order and sends it to the DOMS.
Step #4: The DOMS assigns the order to a delivery driver.
Step #5: The delivery driver picks up the order and delivers it to the customer.
Step #6:The customer receives the order and is happy with the delivery.
Step #7: The e-commerce company is happy with the DOMS.

doms process flow

This process flow is the same for all e-commerce companies that offer delivery. The DOMS is the e-commerce company's way of ensuring that its customers are happy with the delivery process.

Why is order management important in e-commerce?


E-commerce order management is the process of managing the life cycle of orders placed online. This includes everything from processing the order and payment information to fulfilling the order and shipping it to the customer. Order management is a critical part of running an e-commerce business, as it helps to ensure that orders are fulfilled accurately and in a timely manner.


There are many benefits to having a good e-commerce order management system in place. For one, it can help to improve customer satisfaction by ensuring that orders are fulfilled properly. Additionally, it can help to reduce the amount of time and money spent on fulfilling orders, as well as the number of returns and cancellations.

Order management is a critical part of any e-commerce business. It encompasses the entire process of taking an order from a customer, fulfilling it, and ensuring that the customer is satisfied. A well-run order management system can help you keep track of inventory, process payments, and keep customers happy.


There are a number of reasons why order management is so important:

First, it helps you keep track of your inventory and ensures that you always have the products your customers want in stock. 

Second, it allows you to process payments quickly and efficiently. 

And finally, it helps you provide excellent customer service by ensuring that customers are always happy with their purchases.

If you're looking to start or grow an e-commerce business, make sure you have a strong order management system in place. It will make your life much easier.


What are the benefits of an order management system?


An order management system (OMS) can offer a number of benefits to businesses, both large and small. Perhaps the most obvious benefit is the fact that an OMS can help to streamline the order process, making it simpler and more efficient. In addition, an OMS can also help to improve customer satisfaction by ensuring that orders are fulfilled correctly and in a timely manner. Finally, an OMS can also help businesses to save money by reducing the need for manual processing of orders.


Order management systems are the backbone of any distribution company. This help to keep track of all the order details, inventory, customer information, and shipments. It also tracks all the other processes such as production and billing. In addition, it can be integrated with other systems like ERP to provide a consolidated view of a company’s supply chain operations.

Order management systems are used to manage the process of order fulfilment. They are used in a variety of industries including retail, manufacturing, and logistics.


5 Benefits of an OMS:

1.    They are designed for flexible growth

An OMS is typically constructed with distinct functions divided into separate tasks, ensuring that each component has the knowledge required to facilitate its own work while contributing to the overall function of the system. To provide efficient, seamless functioning, they are created to seamlessly interact and integrate with one another.

These systems are made to be scalable, and there are many ways that standalone modules can be merged into the current system to bring new features and functionalities.

The interface used throughout the journey can change to fit the needs of its user, as do the capabilities that are provided, because OMS software is designed to act as a shared interference across the supply chain, from shipping and in-store processing to back-end manufacturing and customer capabilities.


2.    They are structured for maximum synergy

The system is aware right away whether an order has been cancelled by a consumer or a retailer, when inventory levels change, or when a customer's orders qualify for drop-shipping from nearby fulfilment facilities.

While an order management system may connect and exchange real-time data between each system to decrease errors and ensure no mistakes are made, employees can only see what is right in front of them. It integrates data from carriers, drop-ship locations, suppliers, and more to guarantee that all participants in your supply chain communicate successfully and efficiently.

Because of this, research demonstrates that warehouse workers believe automation enables them to produce work of a higher calibre and frees up their time to concentrate on more engaging tasks.

3.     They offer an improved customer experience

Customers can now track the arrival, shipping, and delivery of their packages as well as any problems or delays that may arise during these operations thanks to increased transparency in the shipping and fulfilment processes. Customer assistance may now be incorporated into the OMS, allowing support staff to view the shopping cart and order history if problems should emerge with an order.

The system can also intelligently source orders, allowing them to be dispatched from the fulfilment centre that is nearest to the customer, reducing shipping costs and lengthening delivery times. Additionally, it makes drop-shipping an option, allowing for the prompt delivery of inventory that is not kept on-site to clients.

4.    They identify bestsellers easily

All of the statistics and information that demonstrate the attractiveness of products and markets are automatically organized by OMS systems. These insights can be quite helpful for business success because they show you where it would be wise to put more emphasis on money.

Additionally, it enables you to spot any potential anomalous tendencies so you may take appropriate action. This will come in handy when unexpected changes in the larger market arise, enabling you to adjust your strategy most effectively for your company.


5.    24/7 order processing takes place

With an OMS, you can guarantee that your marketplaces are "staffed" even if you aren't there. Even if you leave your computer unattended, orders that arrive can still begin the fulfilment process by updating your inventory, collecting payment, and printing shipping labels. There will be fewer delays and an increase in speed if you utilize a fulfilment house because this information may be immediately transferred to them without you having to be close to your computer.

It's critical for smaller online shops to make gains wherever feasible when they compete in a market with many "big fish." Your brand can develop a strong reputation by competing in terms of speed and availability with an OMS.


What is the objective of order management?

The objective of order management is to streamline the process of order fulfilment and to ensure that orders are filled in a timely and efficient manner. Order management includes a number of different activities, such as:

  • Creating and managing order records
  • Tracking and tracing orders
  • Providing real-time inventory information
  • Processing customer orders
  • Sending out invoices
  • Managing the distribution of goods to customers
  • Scheduling delivery and shipping
  • Monitoring order status

Order management is a critical part of any business that sells products or services. By streamlining the order fulfilment process, businesses can improve customer satisfaction and reduce operational costs.

What is KPI in order management?

KPI, or key performance indicator, is a metric used to measure the performance of an order management system. The most common KPIs used in order management are fill rate, fill rate percentage, order accuracy, order cycle time, and on-time delivery.

Fill rate is the number of orders that are filled compared to the total number of orders placed. The fill rate percentage is the fill rate divided by the total number of orders placed. Order accuracy is the number of orders that are filled correctly compared to the total number of orders placed. Order cycle time is the amount of time that it takes to fill an order. On-time delivery is the number of orders that are delivered on time compared to the total number of orders placed.

KPIs are important because they help businesses to track the performance of their order management systems. 

KPI is an acronym for Key Performance Indicator. It is a measurement that can be used to monitor the performance of a process or activity. KPIs are often used to measure the success of a business process and help companies make decisions about how to improve their business processes.

The most common KPIs are:

  • Delivery time (e.g., how quickly deliveries are made)
  • Delivery accuracy (e.g., how many parcels have been delivered successfully)
  • Delivery cost (e.g., what percentage of parcels were delivered at a cost below budget)
  • Customer satisfaction (e.g., how satisfied customers are with the service they received)

Who uses Order Management Software?

So, who uses order management software? In short, any business that sells products or services and wants to improve its operations can benefit from using OMS. This includes businesses of all sizes, from small businesses to large enterprises. If you sell products or services, whether online or offline, and you want to improve your operations, order management software can help you reach your goals.

Order management software is used by businesses of all sizes to streamline and automate their order processing. This type of software can be used to track orders, manage customer data, and generate reports. Additionally, order management software can help to improve customer satisfaction by providing accurate and up-to-date information on order status and delivery times.

Many businesses find that order management software is an essential part of their operations, and it is often used in conjunction with other business software, such as accounting and inventory management software. Order management software can be used by businesses in a variety of industries, including retail, manufacturing, wholesale, and e-commerce.


Do I need an order management system?

If you sell products online, then you might be wondering if you need an order management system. An order management system can be a helpful tool for streamlining your order processing and keeping track of your inventory. However, it's not a necessity for all businesses. In this article, we'll help you decide whether an order management system is right for your business.

An order management system (OMS) is a software application that helps businesses manage their orders and inventory.

So, do you need an OMS? It really depends on the size and complexity of your business. If you have a small business with a limited number of products, you may not need an OMS. However, if you have a large or growing business, or if you sell a lot of different products, an OMS can help you keep track of your inventory and orders and can even help you automate and streamline your business processes.

Companies that have multiple stops on their routes are usually the ones that need an order management system. This type of company is usually a food delivery company, a courier service, or a package delivery company.

An order management system allows the driver to place orders and receive information about all the stops they are going to visit. It also provides them with information about any delivery deadlines they must meet.

By allocating orders to specific drivers and monitoring their progress, an order management system can assist in resolving these issues and preventing deliveries from being mixed up with those from other routes.

If your company has all the above criteria, then the answer is YES. 


Why is an order management system important?

The use of an OMS has many advantages. The ability to save time and money for enterprises is arguably its most significant advantage. Businesses can free up their staff to focus on other activities by automating many of the operations involved in managing orders and inventories. A business may make better judgments by keeping track of its sales data and customer orders with the use of an OMS.

An order management system should be seriously considered for implementation by business owners and managers. By doing this, you can reduce time and costs and increase the effectiveness of business delivery.


How to Choose the Best OMS Software?

There are a lot of options out there when it comes to OMS software. So how do you choose the best one for your business? Here are a few things to keep in mind when making your decision:

  • Ease of use: The software should be easy to use and navigate.
  • Feature set: Make sure the software has all the features you need.
  • Integration: The software should integrate seamlessly with your other systems.
  • Support: The company should offer excellent support in case you have any problems.

order management system

Keep these factors in mind when you're making your decision and you're sure to choose the best OMS software for your business.

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