In a Supply Chain Crisis, Here’s Why Order Management is the Hero
The Covid-19 pandemic will be remembered for many things, but one of the more striking and memorable images from a commerce standpoint was the sight of empty store shelves, particularly the absence of toilet paper. Those rows upon rows of empty shelves, stripped bare by overzealous consumers, were a stark visual representation of a supply chain crisis that exposed deep vulnerabilities in our systems.
This sudden and overwhelming demand highlighted the limitations of traditional Enterprise Resource Planning (ERP) systems, which, until then, had been considered sufficient for managing order fulfillment. However, the pandemic revealed a glaring issue: what happens when demand far exceeds supply, as in the case where there are 500 orders but only 125 items in stock? This scenario created complexities that ERPs were simply not designed to handle.
The limitations of traditional ERPs
Pre-Covid, ERPs were adequate for most companies. These systems were built to streamline operations, manage inventory, and fulfill orders efficiently. Their primary focus was on shipping from inventory—ensuring that when an order was placed, the product was available and ready to be shipped. But the pandemic shifted the landscape drastically.
The sudden spike in demand for certain products, coupled with disruptions in supply chains, created a scenario where fulfilling orders became a daunting task. ERPs, with their rigid structure, were not equipped to handle the post-sale/pre-shipment complexities that arose. Their design did not account for the need to manage multiple orders with limited inventory or provide the visibility and flexibility required in such uncertain times. This is where the concept of Order Management Systems (OMS) began to take center stage. Unlike traditional ERPs, OMSs are designed to handle the intricacies of the post-sale process, offering businesses a more dynamic and responsive way to manage their orders, inventory, and customer interactions.
The emergence of Order Management Systems
Order Management Systems are not just an upgrade to ERPs; they are a transformation in how businesses manage the order lifecycle. An OMS provides visibility into the order status, shipping groups, and returns in a way that was not possible before. This visibility is not just limited to internal teams; it extends to customers, offering them real-time updates from the moment they click the ‘buy’ button until the order arrives at their doorstep.
The impact of this is profound. Gone are the days when customer service representatives had to place customers on hold to “check the other system” for an update. With an OMS, customer agents and customers alike have access to real-time information about order status, reducing wait times and improving overall customer satisfaction. This shift has been especially beneficial for companies that conduct the majority of their transactions online, where the speed and accuracy of information are paramount.
Read our full LinkedIn article published by Salesforce Commerce Cloud.