Order Management System

5 Reasons why you need an Order Management System for retail business

Businesses persisted even when there were no computers or technology to automate order management. Owing to the lack of an automated system, all their tasks were done manually. Gradually with arising need and evolving technology, the human race landed upon an order management system.

An order management system is a full-fledged ecommerce solution that keeps track of sales, orders, inventory, the fulfilment of orders, and many more. (in short, keeps a track of everything).

All Successful Businesses that have streamlined flow of their inventory process and a lean methodology of organizing resources are generally built on a strong order management system.


Some interesting facts and figures:

  • Forbes states that almost 60-70% of all software, services and technology spending will be cloud-based by 2020. 
  • 43% of small businesses don’t track their inventory at all or use the manual process. 
  • The percentage of retailers who wants to see and manage their inventory related tasks using a mobile device has drastically increased.


Now let’s see the five essential reasons why you need an order management system for retail business.


1) Process orders within seconds or in Real-time

real time


Yes, with an order management system you as a seller can track the order, from order placed to order fulfilled – that too in real time (within mere seconds).

Real-time processing in order management means the product/service data will be available to everyone in real-time. Your business won’t require a large number of resources to sync the system.

Real-time order processing reduces the amount of paper used and enhances the order of servicing KPIs. Along with order servicing, you can also detect problems in real-time with your order management process and fix them on the go, without having to do a deep dive later. Because all the data enters into the system immediately (in real time), therefore you can monitor what is happening within your business – instead of waiting for the day to discover a problem that could have been an easy fix if it had been identified immediately.

This kind of prompt response to servicing orders will keep your team on their feet and the customer satisfied. Soon you will see improved productivity and you will have an accurate track of inventory at all times.


2) Reports & Analytics measuring your efficiency of the order fulfillment process

All successful retailers measure their order fulfillment efficiency, by identifying their best or worst performing product. An order management system easily lets you know this and helps in planning your inventory.

Order management system provides you with a real-time analytical report related to shipments, customer, invoice transactions and order returns, all in an easy-to-infer format. You can even practice some demand forecasting methods to understand which products would be in demand in the coming future so that you avoid overstocking or understocking.

Reporting and analytics of your business help you reduce inventory risks by letting you know in-and-out of your purchases, efficient management of your cash flows and profitability, with an insight to identify where to focus next in business for higher sales.


3) Helps you maintain the optimum level of inventory

Keeping too much inventory is detrimental to the organization due to the risks of obsolescence and shrinkage. And likewise too little stock might lead to out of stock, making your consumers look elsewhere (competitors).

Excess of inventory requires a lot of manpower and acquire more warehouse space which eventually increases the cost. A good order management system lets you know what would be the best or optimum level to hold inventory or keeping a safety stock (during the economic crisis), so you never face the situations of overstocking or understocking.



Tim Cook, CEO of Apple once explained that “Inventory is fundamentally evil” – its a milk which go bad, if it gets past its freshness date. By lowering the amount of stock on hand, tech giant Apple carries a lower risk of overstocking and chalking up dead stock in its warehouses.


Even nowadays just in time (JIT) inventory management technique is possessed by order management systems which empower businesses to increase efficiency, cut costs and decrease waste by receiving goods only as they are needed (in real-time).


4) Manual workforce and staffing costs are reduced

Leveraging the technology in 21st century is a must. If you don’t then you might – end up spending your precious capital on manual workforce and staffing – which could have been used for other important aspects.  

  • According to Smartsheets survey, over 40% of workers spend at least a quarter of their work week on manual, repetitive tasks like email, data collection, and data entry utilizing the maximum time.
  • And nearly 70% of workers say the biggest opportunity of automation lies in reducing time wasted on monotonous work.

Hence using an order automation system, that automates the workflow of the whole life-cycle of an order will save you tons of bucks.


5) Selling on multiple marketplaces becomes EASY

easy selling


You just have got ONE brain to focus on multiple things. And it strongly not advisable to focus on multiple things at a time when it comes on retail business. Because it can lower down the efficiency of whatever work you do. Therefore while selling on multiple marketplaces, it is a cumbersome process to track each and every order. And if you are managing it manually in an excel sheet – there are high chances of manual error such as incorrect input of product data.

For example:  You have 100 items in your inventory and you listed that particular item on both Amazon and eBay. But by mistake, as you were manually managing the inventory- you mentioned only ‘10’ items (missed the extra zero ‘0’) on eBay. Hence these type of errors can be avoided by utilizing an automated system that takes care of inventory and order related tasks.

However, with an order management system (your virtual brain number TWO), you can easily pull data from the different channel in a single dashboard and efficiently manage it with real-time syncing.

  • Analyze which product is doing well on various marketplaces, so that you can pre-stock that products inventory – avoiding out-of-stock.
  • Engagement with multiple suppliers, shipping providers, drop shippers and customers from one place is the best thing of an order management system.


Cloud-based order management at Orderhive


Maintaining your ecommerce store through centralized order management software is important, but you also have other sales channels to worry about. Orderhive’s cloud-based solution can easily and affordably connect your channel system, helping you to manage yours in real-time. Orderhive’s web-based solution, allows you to take advantage of the following features:


  • Easily integrate your store with all your inventory and suppliers, ensuring you never have out-of-stock issues.
  • Keep the same information automatically stored in both your ecommerce store and your selling channels to ensure accuracy.
  • Reporting and analytics allow for the mastering of real-time orders.


One of the primary benefits of Orderhive’s order management system is good to channel management. If an online retailer has multiple channels to sell through, Orderhive’s centralized inventory and order management system can help meet order demands for all channels more effectively than several storage divisions spread out across multiple locations.

Therefore, if an online retailer wants to close an old channel or create a new channel, the process is easy and cost-effective with a central inventory management system already in place.

At Orderhive, we simplify your multi-channel approach through a web-based platform that integrates every section of your business. Using the cloud-based software, we enable your solutions to work together to increase sales, improve customer service, optimize inventory, reduce shipping cost and more!

Orderhive ecommerce solutions provide establishing online retailers with the keys to drive business growth.


Why should business owners prefer a centralized order management system & not different management systems for every task?

Aim of the centralized order management system is to simplify your day-to-day business processes with no hassle. Without a handy and easy to use order management system, you will end up entering all kinds of information manually, from the order and customer information, getting a tracking number, contacting the customer, and later shipping the product.

These tasks may not seem much to an establishing online retailer, but as your business grows so do the orders and the risk of human errors, indeed increases your management costs.

The ease of a centralized order management system gives companies a single view of the complex e-commerce fulfillment ecosystem and protects against order failures, the disappointment of customers or lost revenue due to common glitches like a lower level of inventory, incorrect invoicing, or sudden transportation errors.

Centralized order management system takes care of all those tasks through an automated process with just a click of the mouse. Whether it is gathering order information, storing customer data to shipping management – centralized order management software – makes every task of operating your business easier and more cost-effective.


Abhishek Biswas

Abhishek Biswas

A Listener, who speaks less and writes more. Will choose Pizza over anything. Doing non-technical pieces of stuff, with a degree in a technical field. Has stage fear thus prefers "Stealth-mode" conversation, also the Content Curator at Orderhive. . . . <<--- In the picture, I'm looking at my happy belly ;)


  1. Avatar Pratheek Posted July 12, 2019 at 12:42 pm | Permalink

    Fulfilling orders placed by customer within the best possible time is always the main motto of any retail company. For this it is best to capitalize on an order management system and you, Dear Abhishek, have best explained this with your linguistic talent in writing. Emphasizing on the main factors that gets sorted and aids in creating a good growth to business and a better customer management is wonderful.

    • Abhishek Biswas Abhishek Biswas Posted July 12, 2019 at 1:01 pm | Permalink

      Thank you so much Pratheek, for going through the article.

  2. Avatar Vichithra Posted August 20, 2019 at 6:52 am | Permalink

    Excellent post,
    Many ecommerce businesses, do not focus much on order management. This is a common mistake that most store owners make.

    • Abhishek Biswas Abhishek Biswas Posted August 23, 2019 at 4:58 am | Permalink

      Thank you so much Vichithra for appreciating the article.

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