Deciding how to select the right Order Management System (OMS) in the retail industry is critical to the success of any omnichannel strategy. As consumer expectations continue to rise, businesses need to provide seamless, integrated shopping experiences across all channels. A modern OMS is the backbone of this effort, enabling retailers to manage inventory, process orders, and deliver exceptional customer service. However, selecting the right system is not a one-size-fits-all process. 

How to Select an OMS

Here are Clarkston’s top considerations to guide you in how to select an OMS for your retail business:

1. Understand Your Omni Roadmap

The first step in how to select an OMS platform is to clearly define your omnichannel roadmap. Think: What are the specific use cases you plan to support? For instance, are you looking to enable services like buy online, pick up in-store (BOPIS), ship-from-store, or curbside pickup? Do you need to manage complex returns that span across different channels? Understanding these requirements is crucial because they will determine the features and capabilities you need from your OMS. 

If your business doesn’t require a wide array of omnichannel services, you might not need a heavyweight, feature-rich OMS; a simpler solution might be more cost-effective and easier to implement. On the other hand, if your strategy includes supporting a complex, multi-channel environment, you’ll need an OMS that can handle the intricacies of such operations. The key is to align the OMS with your current needs while also considering future growth and potential use cases. 

It’s also important to consider the scalability of the solution. As your business evolves, your omnichannel strategy might expand to include new services or channels. You may also be planning on expansive store growth. Selecting an OMS that can grow with you while offering the flexibility to add new functionalities – without requiring a complete system overhaul – is critical in equipping your business for long-term success.

2. Consider Your Overall Technical Architecture

OMS solutions don’t operate in a vacuum; they are an integral part of your broader retail systems architecture. It needs to work seamlessly with your existing systems, including Enterprise Resource Planning (ERP), Point of Sale (POS), and eCommerce platforms. The ability of the solution to integrate smoothly with these systems is a crucial factor in delivering a unified customer experience. Some providers also have both OMS and POS within a common solution, which can create efficiencies going forward if replacing a legacy POS is also on your long-term roadmap.  

When evaluating OMS solutions, assess their integration capabilities. How easily can the OMS connect with your current ERP, POS, CRM, and eCommerce platforms? Do they have experience with your specific systems? Poor integration can lead to data silos where information is trapped within one system and not accessible to others. This can result in operational inefficiencies, such as inaccurate inventory levels, delayed order processing, and inconsistent customer experiences across channels. It can also lead to significant delays to the implementation if the integrations are being built between two systems for the first time.  

A well-integrated OMS ensures that data flows freely between systems, providing real-time visibility into inventory, orders, and customer interactions. This not only improves operational efficiency but also enhances the customer experience by ensuring that orders are processed quickly and accurately and that customers receive consistent service regardless of the channel they use.

3. Align Your OMS Solution with Your Data and Analytics Strategy

Data is at the heart of any modern retail operation. It drives decision-making, provides insight into consumer behavior, informs marketing strategies, and helps optimize operations. Therefore, it’s essential to ensure that your OMS aligns with your overall data and analytics strategy. 

Start by evaluating where your customer data is stored. Is it centralized, or is it spread across multiple systems? A centralized data repository, such as a Customer Data Platform (CDP), can help ensure that all customer interactions, regardless of channel, are captured and accessible for analysis. This is important for creating a 360-degree view of the customer, which is crucial for delivering personalized experiences and targeted marketing. 

Next, consider your omni reporting strategy. What kind of reports do you need to generate to track the performance of your omnichannel operations? For example, you might need to monitor metrics such as order fulfillment times, inventory levels, sales performance across channels, and customer satisfaction. The OMS should be able to integrate with your analytics tools and provide the necessary data to generate these reports. 

Moreover, think about how the OMS can support your data-driven decision-making. By leveraging the data generated by the OMS, you can gain insights into customer behavior, inventory trends, operational efficiency, and more. Even more exciting is the ability to utilize this information in almost real-time, as a majority of modern OMS solutions have advanced capabilities that offer almost instantaneous insights on how to optimize inventory, forecast demand, and more. Together, this information can then be used to optimize your omnichannel strategy, such as by identifying the most popular products for specific regions or optimizing fulfillment processes to reduce delivery times.

4. Involve Store Associates Early to Manage Change and Ensure Adoption

Technology is only one part of the equation when it comes to implementing a new OMS. The success of the implementation also depends on how well it is adopted by the people who will be using it. Identifying impacted teams and taking time to involve key stakeholders from the beginning is a key step to help with seamless implementation. It is also important to ensure that leadership strongly backs the project in order to drive successful change for the overall organization.  

Moreover, early involvement helps with change management. Implementing a new OMS often requires changes to established workflows, which can be met with resistance if not managed properly. By involving key stakeholders from the beginning, providing training, and addressing their concerns, you can increase their buy-in and make the transition smoother. If the implementation of an OMS is going to allow for Ship-from-Store for the first time, for example, associates should get a view into the process so they can provide feedback and a perspective that might be missing if they aren’t included in the selection process.  

Effective change management also includes clear communication about the benefits of the new system, how it will impact day-to-day operations, and the support available to help with the transition. The goal is to ensure that associates feel confident in using the new OMS and understand how it will help them perform their jobs more effectively. 

Wrapping Up 

Selecting a modern OMS is a critical decision that can significantly impact your retail business and its ability to execute a successful omnichannel strategy. By understanding your omni roadmap, considering your technical architecture, aligning with your data and analytics strategy, and involving store associates early in the process, you can make an informed decision that sets your business up for success. 

A well-chosen OMS will not only improve operational efficiency but also enhance the customer experience by providing seamless, consistent service across all channels. In today’s competitive retail environment, getting this right is essential for staying ahead of the competition and meeting the ever-evolving expectations of your customers.  

Clarkston’s team of retail experts is here to help make choosing the right OMS solution as seamless as possible. From assessments to vendor selection to implementation, we have the resources you need to take your business to the next level. Reach out to us today to get started.