In B2B commerce, establishing a robust IT roadmap is akin to charting a course through turbulent waters.
There are hundreds of permutations on how to proceed with sequencing, and your capital investment and ROI discussion is only part of the equation. Many companies find themselves unsure of whether to first implement Product Information Management (PIM) systems, Commerce Platform (ECP’s) or Order Management / Commerce Order Operations & Logistics (COOL’s!). The below short blog covers when to, and when not to, proceed with OMS solutions first.
When to start with OMS, first
One of the pivotal decisions facing B2B enterprises is whether to prioritize the implementation of a new ecommerce platform and site redesign, invest in a comprehensive Product Information Management Solution, or address their order management solution (OMS) first. While each option holds its merits, there exists a compelling argument for prioritizing OMS solutions, particularly for companies seeking to enhance their inventory visibility.
Order management serves as the backbone of any commerce operation, orchestrating the flow of goods from order placement to delivery. In an era characterized by heightened customer expectations and fierce competition, the ability to efficiently manage inventory and fulfill orders is paramount. However, many B2B companies grapple with fragmented systems and siloed data, resulting in suboptimal inventory visibility and operational inefficiencies.
We often find that companies lack a comprehensive picture of what “OMS” means, and specifically the time and cost implied. Most companies we speak with assume they have to make a “OR” decision, while some find after analysis they can implement spot functions to supplement ERP solutions in as little as 3 months.
Zach Zalowitz – Principal, Order Management at Perficient
For those enterprises, addressing their OMS solution represents a strategic imperative. By consolidating disparate systems and leveraging advanced inventory management capabilities, companies can gain real-time insights into stock levels, order status, and supply chain dynamics. This enhanced visibility not only facilitates more accurate demand forecasting and inventory optimization but also enables proactive inventory replenishment and order fulfillment, thereby minimizing stockouts and backorders.
What types of companies should start with OMS first?
Which types of companies stand to benefit the most from prioritizing their OMS solution? The answer lies in the nature of their business and operational complexities.
Challenges with Inventory Visibility
Industries characterized by high SKU counts, diverse product assortments, and complex supply chain networks, such as manufacturing, wholesale distribution, and aftermarket companies, are particularly ripe for inventory visibility improvements.Consider a manufacturing company that produces a wide array of customizable products across multiple facilities. Without a centralized OMS solution, tracking inventory across various warehouses becomes a Herculean task, fraught with the risk of stockouts or excess inventory.
Challenges with Inventory Discrepancies
Similarly, wholesale distributors grappling with inventory discrepancies and order fulfillment delays can derive significant benefits from prioritizing their OMS solution. By unifying order processing, inventory management, and fulfillment operations within a single platform, distributors can enhance order accuracy, reduce order cycle times, and strengthen customer satisfaction.
Challenges within Regulated Industries
Furthermore, companies operating in highly regulated industries, such as healthcare or automotive, where stringent compliance requirements dictate inventory tracking and traceability, stand to gain immense value from prioritizing their OMS solution. By ensuring compliance with regulatory standards and implementing robust audit trails, these companies can mitigate risk and safeguard their reputation.
While the temptation to embark on a comprehensive digital transformation journey may be enticing, B2B companies that prioritize their OMS solution first are tackling a very specific problem, choosing to first focus on the pressing challenges around accurately making a delivery promise, then orchestrating the execution of it.
By laying a strong foundation for inventory management, companies can pave the way for future enhancements, such as ecommerce platform upgrades and PIM implementations, with greater confidence and efficacy.
When NOT to start with OMS
While the argument for prioritizing order management solutions (OMS) holds merit, there are scenarios where investing in a new commerce platform takes precedence, which often is a prevailing thought with Digital Technology leaders that oversee the roadmapping.
Challenges with Market Presence
For B2B enterprises seeking to redefine their online presence, elevate customer experiences, and unlock new revenue streams, the decision to implement a new commerce platform with a site redesign represents a strategic imperative. Companies where customer expectations are continually evolving, compared to more standard and ****** markets, require the user interface and functionality of an ecommerce website play a pivotal role in shaping buyer perceptions and driving conversions.
Consider a scenario where a B2B company operates in a competitive market landscape, characterized by rapidly changing customer preferences and emerging digital trends. In such a scenario, the outdated interface and limited functionality of their existing ecommerce platform may act as a barrier to customer engagement and inhibit business growth.
By prioritizing the implementation of a new commerce platform, enriched with features such as intuitive navigation, personalized product recommendations, and seamless checkout experiences, the company can rejuvenate its online presence and differentiate itself from competitors.
Challenges / Opportunities with Market Expansion, as a Priority
B2B enterprises embarking on international expansion initiatives or targeting new market segments, the scalability and localization capabilities of a modern commerce platform are indispensable. Unlike traditional OMS solutions, which primarily focus on order processing and inventory management, a new commerce platform offers a holistic suite of tools designed to support omnichannel sales, global market reach, and customer engagement across diverse touchpoints.
The integration of advanced analytics and marketing automation capabilities within a new commerce platform empowers B2B companies to glean actionable insights from customer data, optimize marketing strategies, and drive personalized interactions at scale. Data-driven decision-making can unlock new revenue opportunities, improve customer retention, and foster long-term relationships with key stakeholders.
Additionally, the flexibility and extensibility inherent in modern commerce platforms enable B2B companies to adapt to evolving market dynamics and technological advancements with agility. Unlike legacy OMS solutions, which may necessitate complex customizations and integrations to accommodate changing business requirements, a new commerce platform offers a modular architecture and robust API ecosystem, facilitating seamless integration with third-party applications and future-proofing IT investments.
While the argument for prioritizing order management solutions holds sway in certain contexts, there are compelling scenarios where investing in a new commerce platform takes precedence. For B2B enterprises aspiring to redefine their online presence, enhance customer experiences, and drive business growth, the decision to implement a new commerce platform represents a strategic imperative, heralding a paradigm shift in the traditional approach to IT roadmap sequencing.
