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What is an order management system?

If you are new in the e-commerce industry, you might not be sure of what an order management system is and the wonders it can do for your business and daily operations. In this post, we will clarify all the most common doubts and questions on this topic.

1 - Centralization

First of all, an order management system will provide the benefit of centralization: of your stores & marketplaces, carriers, dropshippers, suppliers, accounting system (like QuickBooks) and more. For example, you have a MIVA store, a BigCommerce and an eBay store. All orders from all channels will be in your order management hub. This is not only visually a great solution to get ahold of the whole picture, but it is also a facilitating tool. You won't need to enter each store's back-end to manage the orders you receive during the day. Also, you won't need to refresh multiple pages several times to see new incoming orders. An order management system is beneficial regardless of how many stores you have, because it automatically captures the orders and mimics the information on the store's side. Centralization and integration are the keys!

2 - Fulfillment

Another great functionality is the ability to fulfill your orders in one place. Imagine having to access all carriers' websites to generate labels, for over 100 orders per day. Even if you ship less than 20 boxes per day, you would need to alternate between UPS, USPS and FedEx (for example) and would see a lot of tabs open in your computer. With an order management system, you would be able to connect with your carriers and perform the dispatch - including the printing of labels, packing slips and invoices.

Drop shipping is another way to fulfill your orders. You can automatically send some orders to your warehouse and some to external warehouses, for example. Another perk is to be able to prioritize, by inventory levels or even geographically. In this imaginative scenario of combining possibilities, some orders can be transferred automatically to drop shippers (after checking the risk of sending them automatically with some rules).

3 - Optimization

Once your processes are streamlined and automated, your order management system will save you time. With centralization and efficient fulfillment, comes the optimization of your business, allowing you to perform faster deliveries, have less clicks and a more productive team - it doesn't matter how big or small your business' internal organization is.

4 - Transmission

If you are more likely to work with dropshippers, you certainly need an efficient way to transmit orders that need to arrive to your final customer. Allowing your dropshipper to access the same system - with limited view - is also a plus. Transmission can be made in different ways (API, EDI, Email, Live URL and FTP) and also in various schedules: one-by-one, in bulk or by setting up a certain time to transmit it all at once & automatically.

5 - Integration

Carriers, stores, TaxJar, QuickBooks Online - to quote just a few. You have an infinity of tools that can assist you and will work smoother with a SaaS supporting your business. When everything is connected, the tendency of having issues is lowered, with time and cost savings as a result. In this topic, the full circle completes itself, by going back to the centralization that is the master point of this article.

When it comes to 4Psite, we go far beyond what an order management system can usually do. We offer unlimited users divided by roles, a full warehouse management, built-in shipping programs, EDI connectivity, a robust purchase management and more. Implementing an order management system is a step into the right direction and into the future of online selling. Are you ready for the future?


4Psite is a multi-channel, cloud-based system with features such as inventory management, purchase management, manual orders module, shipping and much more. To discover all about 4Psite, visit our page.

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