The e-commerce sector is more competitive than it has ever been. In addition to the staggering quantity of brands available, consumer expectations are also quite high. Customers want their items delivered as soon as possible, through a variety of channels, and without additional expenses or hassles.
Optimizing the fulfillment process is essential for e-commerce firms to offer the most customer-focused experience. This entails adopting a tech-forward, computerized approach to distribution along with fulfillment in place of more conventional techniques.
The software might be the missing component for a lot of businesses. However, what is it exactly?
Definition of distributed order management
A tailored, technologically advanced method of end-to-end fulfillment, Distributed Order Management Software uses rule-based logic and automated procedures to manage orders both online and offline and all points in between.
Traditional order management versus distributed order management
Distributed order management facilitates a broader fulfillment network, including platform connections, flexible fulfillment alternatives, multiple sales channels, and a variety of retail partners, in contrast to traditional order management, which only supports overseeing inventory from a single source.
The following are some of the main distinctions between distributed and traditional order management systems:
Data in real time. Batch processing is usually available in legacy systems, and inventory data is updated only occasionally. For effective management, DOM systems provide consolidated, real-time inventory visibility.
Options for flexible fulfillment. In contrast to traditional order management systems, which might only provide basic packing and direct-to-consumer or in-store delivery options, DOM systems provide features like BOPIS (Buy Fulfillment marketing or online or in-store pick-up options.
Simple integration. It is well known that legacy systems are cumbersome and challenging to integrate with. However, a lot of DOM systems make it possible to integrate with well-known e-commerce platforms with ease.
For whom is distributed order management appropriate?
Distributed order management can help merchants of all sizes, but it might not be the best option if your company just processes orders from one channel and doesn’t have any other features. Omnichannel retailers with more intricate fulfillment procedures, several sales channels, and/or distribution hubs that require real-time visibility are usually the ones that benefit most from this software.
Advantages of a system for managing scattered orders
Optimization of inventory management
Systems for managing distributed orders offer real-time or almost real-time insight into stock. This implies that e-commerce companies will be able to monitor their stock at every point of the process, including the progress of inventory orders and actual stock availability.
How? Major e-commerce platforms can be readily integrated with DOM systems, giving users insight into each order they place.
These insights give omnichannel retailers a comprehensive picture of their order volume and product movement, which may help them minimize mistakes like stockouts and improve their inventory management.
Automation cuts down on time and human error
Are you still using spreadsheets? Automated processes are easy to create with these systems. Retailers may optimize picking routes, create order criteria for packing or shipping, and more with complete insight into the fulfillment operation.
When a consumer orders something to be picked up in-store, for instance, a DOM, the order should be sent by the system based on its ability to determine which warehouse is nearest to that retail location. The outcomes? Spend more time providing the greatest possible client experience and less time manually managing orders.
Options for omnichannel fulfillment
It is evident that consumers desire choices in terms of placing orders and getting their purchases. The software can manage the intricacies, regardless of whether they want to ship straight from the shop, order online from a different marketplace, or use buy online pick up in-store (BOPIS).
Merchants will be able to handle orders coming in from many sources as DOM systems offer a consolidated picture of the fulfillment operation.
Rules-based reasoning for order routing and fulfillment marketing
These platforms enable merchants to develop automated orders using fine-grained filters. For instance, a rule requiring special, cautious packing may be put up within the DOM system whenever a company ships out high-value goods.
This way, retailers won’t have to worry about the item getting destroyed in transportation. Or, as a thank you for their loyalty, a rule may be in place that allows a marketing package or discount coupon for a customer’s subsequent purchases once they reach a specific order level simplified handling of returns
The whole fulfillment process, including returns, is made more efficient by DOM systems. Distributed order management (https://www.trade.gov/know-your-incoterms) may readily integrate with returned platforms and streamline the reverse logistics process, whereas earlier systems could have required a client to personally contact the company to start a cumbersome returns procedure.
This may appear to be automatically created return labels without requiring a call to customer service.
A higher level of client satisfaction
It’s no surprise that distributed order administration systems may increase customer satisfaction given the state-of-the-art technology that enables visibility into inventories and identifying the most economical, fastest delivery option.
Consider this: consumers will always have a better experience compared to those who don’t if they have a consistent, flawless experience (one that doesn’t involve out-of-stock merchandise or delivery errors).
Additionally, when a merchant meets clients where they are, they are more likely to experience a positive encounter. These systems allow businesses to easily fulfill orders from a variety of sources.
