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Ultimate Guide to Distributed Order Management
Learn more about distributed order management (DOM) and how you can use it to convert your e-commerce brand into a logistics hub.
Distributed order management (DOM) converts your e-commerce brand into a logistics hub that has the upper hand when it comes to meeting the changing customer expectations.
Promotional dates like Black Friday and Cyber Monday constitute some of the massive shopping peaks where warehouses have to ramp up their efforts and deliver orders fast and cost-effectively. However, retailers are quickly finding it hard to match the desires of their customers. That's where distributed order management system (DOM) comes in.
What Is Distributed Order Management?
Distributed Order Management Software is a transformative retail system that uses logic to fulfill orders from the best location(s). The ultimate purpose of fulfilling orders from the best sites plays a significant role in improving customer expectations and maximizing business margins.
DOM provides a broad view of orders and inventory while determining the best fulfillment point through comprehensive rules such as capacity, priority, and proximity, among others. Amazon seems to have taken the order fulfillment aspect to another level, forcing organizations to use automatic systems to optimize their order delivery processes.
DOM vs. Order Management
Distributed order management encompasses all the functions of traditional order management while providing additional functionalities. For example, DOM is an effective tool for determining the best location to fulfill orders.
DOM uses cloud-based infrastructure, which is essential in automating organizational processes. For example, cloud-based systems are fundamental in your retail business and order fulfillment because they enable you to treat all stages of your order fulfillment as if they are in the same organization, even though they occur on different premises.
Besides, distributed order management is commonly known for solving the typical order fulfillment challenges while introducing;
- Optimized Shipping Costs through Real-Time Shipping Quotes
- Purchasing from Shipping Suppliers
- Accurate Fulfillment of Drop-Shipped Items
E-commerce and Order Management
As current statistics indicate, almost all shopping activities are exclusively online. In 2021, approximately 2.14 billion people bought goods online. Moreover, the number is likely to increase in the coming years, which means that the eCommerce industry will dominate the retail sector.
Although online shopping means the growth of eCommerce companies, it is essential to indicate that it will result in increased competition. Therefore, organizations must devise techniques to meet rising expectations while dealing with growing competition.
To thrive in the hyper-accelerated environment, retailers need to turn to modern innovations that provide desired services in order fulfillment while avoiding industrial competition. In addition, as companies add multiple channels to meet the needs of their customers, introducing solutions such as distributed order management will eliminate emerging complexities.
Omnichannel Commerce and Distributed Order Management
Omnichannel Commerce and DOM are a match made in heaven. Therefore, it is worth analyzing the relationship between the two trends in the modern shopping sector. The two are intertwined to bring fascinating experiences to shoppers.
Omnichannel Commerce enables retailers to sell their products through various channels such as online marketplaces, eCommerce storefronts, and traditional brick and mortar stores. Importantly, customers buying through the distinct channels feel that they are interacting with the same company regardless of the medium used.
Distribution Order Management plays a vital role in Omnichannel Commerce by introducing effortless, consistent, seamless, and integrated customer experience as they traverse through different sales channels. Without DOM, it will be challenging for Omnichannel Commerce to flourish.
How Does Distributed Order Management Work?
The primary goal of the distributed order management system is to get the product into consumers' hands efficiently, quickly, and cost-effectively. However, for this to be achieved, the buying journey of each item must be professionally managed at each step. This means that the initial phase of products entering the cart to the final stage when the product arrives at the buyers' doorstep matches buyer preferences.
However, the traditional order management system doesn't have the necessary capabilities to manage the entire order fulfillment journey. Only the dependable distributed order management system can enable the retailer to track the whole process. Some of the capabilities that this system manifests include:
- Single Data Repository
- Order Acceptance from Multiple Channels
- Payment Processing and Checkout
- Order Routing and Tracking
- Order Modification and Cancellation etc.
5 Benefits of Distributed Order Management
Organizations need to work with digitized systems offering various benefits to meet consumer demands and business competition. Unfortunately, the traditional systems are limited and thus holding organizations back. The empowering Distributed Order Management Software is cloud-based and flexible software with multiple benefits to your company.
1. Business Automation
With the increase in loads, organizations can no longer operate manually. As a result, there's a need for a digitized system that can handle the complex processes between the retail, suppliers, and ordering procedures.
2. Real-time Visibility
Companies no longer have the option of operating in darkness. Real-time visibility of the global view of your operations gives you an edge over competitors.
3. Order Customization
Besides customizing your business operations, customers are turning to personalized services. However, you can only deliver such services with a system tailored to meet your workflows.
4. System Integration
Operating with different systems is laborious and time-consuming. DOM offers an integrated approach with a single user interface with multiple endpoints. This dependable software enables business owners to analyze their organizations in real-time.
5. Scalability Options
If you intend to scale your organization, it is essential to have a system to support the growth process. DOM is made to meet the needs of growing businesses without the need for replacement.
Distributed Order Management is a modern trend that retailers cannot ignore. This system is tailored for businesses trying to meet contemporary customers' needs efficiently. The number of online buyers has increased, leading to some significant complexities. However, with DOM's capabilities, retail companies will continue to operate without challenges.
How ChannelApe Can Help
Getting the best Distributed Order Management System is a complex task. That is why ChannelApe has volunteered to provide the best-in-market DOM to support struggling organizations.
Our system is tailored to meet the expectations of your customers by helping you to process and fulfill orders accurately, timely, cheaply, and from the right warehouse.
At ChannelApe, we provide distributed order management software that offers unmatched benefits such as:
- Unparalleled Flexibility
- Customized to Meet Your Organization's Needs
- Real-time Inventory Visibility and Control
- Guaranteed Customer Satisfaction
Contact ChannelApe to get a free demo with pre-built templates to get you started.