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Benefits of using a cloud-based order management system

From retail stores to e-commerce companies, order management is a key aspect of running a successful business. Unfortunately, many small businesses find themselves hindered by outdated processes and systems. If you’re having difficulty keeping your orders organized—leading to orders falling through the cracks and disgruntled customers—it’s time for a change.

If you’re ready to upgrade your order management, take advantage of the latest technology to improve your processes. A cloud-based order management system (OMS) ensures that your order information is updated in real time, and your team can access that information from anywhere. And, that’s just the beginning of what these systems can do.

Learn more about the benefits of using an OMS on the cloud and how implementing this solution can help your business grow. Or you can use the links below to quickly navigate the article.

What is a cloud-based order management system?

First, let’s review what order management is and how it fits into your business operations. Order management includes:

  • Organizing the orders you receive
  • Stock movement
  • Customer relationship management (CRM)
  • Handing returns and refunds
  • Billing and payments
  • Order processing

An OMS is a software as a service (SAAS) used to track orders from customers for goods or services. An OMS also tracks customer data and stock levels. If you’re a retailer or wholesaler, you probably already have an OMS in place—even if it’s just in the form of a messy spreadsheet.

Cloud-based OMS is the newest method of order management in which everything is stored in a secure online database. These systems are designed to be intuitive and to integrate with other solutions to streamline as much of the order management process as possible. Additionally, since this system is entirely online, anyone with permission can update information, check orders, or change an order’s status from anywhere.

Business owners standing over a desk while looking at a cloud OMS. There is a stack of boxes next to them.

Are order management and inventory management the same thing?

Not quite. Order management includes some aspects of inventory management—like making sure there’s enough stock to fulfill orders or tracking the movement of stock as orders are shipped. Separately, they track and manage different parts of the supply chain, even though they overlap in some respects.

Order management focuses on organizing your ongoing orders while inventory management helps you manage the future of your supply chain. Inventory management focuses more on past orders to help you forecast, analyze sales trends, and order the right amount of stock.

However, the two go hand in hand and are often managed using a single order and inventory management system. That’s another reason why the right system is the key to smooth business operations.

7 benefits of switching to a cloud-based order management software

Switching over to order management on the cloud has become easier as technology makes the transition virtually seamless. Once you see the advantages of doing so, it’ll be an easy decision. A cloud-based order management system offers many benefits that can transform how you run your business, including:

Streamlined operations

An OMS helps you organize your order-fulfillment process and all related administrative tasks, effectively streamlining those workflows. This includes using automation to track orders from customers, process orders, and organize fulfillment. A cloud-based OMS helps you automate all these tasks, from the moment a customer purchases something from you until it’s shipped off to them. With a system automating these processes for you, your business becomes more efficient and productive all around.

Increased accuracy

If you’re still using spreadsheets or another manual system, human errors are inevitable and are likely costing your business. You are likely losing a lot of time to tracking and correcting errors. These errors can also have a major impact on your business, from slowing down processes to unhappy customers who receive late or incorrect orders.

A system that consistently pulls and updates information for you can significantly cut down on errors. And if you’re spending less time problem-solving and conducting quality assurance, you’ll have more time to devote to your business’s growth.

Efficient fulfillment

Fulfillment is a major component of customer satisfaction and building customer loyalty, which leads to repeat orders. From the moment customers check out their shopping carts until the product is delivered to them, there are many small tasks to complete. With a cloud-based order management system, your fulfillment process will become more efficient. This means fewer delays, better tracking, and easy access to all your orders and their statuses. When your fulfillment becomes more efficient, you can also directly improve the customer experience.

Three employees handling distribution while two discuss something on their laptop.

Improved organization

Find everything you need with just a few clicks, rather than searching through disorganized records or, worse, using outdated spreadsheets with information that’s no longer relevant. When your order management is on the cloud, everything is in the same place, easy to find, and updated for you. This includes syncing information across your sales channels, like eBay and Amazon, so you can manage orders all in one system.

In addition to order information, a cloud-based OMS manages data from your customers and sales teams so everything can be found in one place. It also makes it easier to keep tabs on what’s going on with your distributors and improve warehouse management.

Easy billing and payment processing

Many cloud-based order management systems can integrate with your e-commerce sales channels, allowing you to process payments easily. Some systems also allow you to create invoices and send bills to your customers, which can optimize your order-to-cash process.

Better inventory control

Using a system that’s designed to improve order management will help you achieve better order control. Keeping an eye on the inventory lifecycle is closely tied to the optimization of your order management practices. Tracking inventory levels helps to ensure you avoid backorders and have enough to fulfill your sales orders. You can also generate purchase orders in your OMS, which is integral to good inventory management and prompt order fulfillment.

Order and inventory management solutions often work in tandem since they are so closely related.

More control over your business

With the combined benefits above, plus sales reporting and insights, your business will be in a much better position to succeed. With all your information organized, updated, and analyzed, you can take control of making improvements and setting a path forward.

When all of these benefits work together, you can improve performance and profitability, helping you take your business to the next level. Moving your business to the cloud is easy and worthwhile with the right system.

What to consider when choosing a cloud-based OMS

Now that you’ve seen how it can benefit your business, the question isn’t whether you need a cloud-based order management system. It’s about finding the OMS that’s best suited to help your business scale and grow. Having a reliable system in place to manage your orders is essential. Here are some of the key questions to ask when comparing cloud-based order management software solutions:

  • Does it integrate with other cloud-based apps and software you use or might need to use?
  • Are orders and payments automatically recorded in your online accounting system?
  • Does it have features that will notably improve efficiency and organization?
  • Is the system user-friendly?
  • Does it provide reporting that can help with forecasting and scaling?
  • Is the cost within your budget?

QuickBooks Commerce is designed to make multi-channel order management easier for businesses. Instead of manually logging sales, QuickBooks Commerce does it for you. Instead of inputting each inventory item, you can use a barcode scanner to update your stock levels. You can manage orders from all of your sales channels in one place, automate order management processes, and save your business time and money. It’s really that easy.

Enjoy the benefits of cloud-based OMS with QuickBooks Commerce

Take advantage of the advanced functionality of QuickBooks Commerce and enjoy an order management and inventory management software combined into one. This order management solution makes it easy to manage your orders from Shopify and other sales channels, improve your order processes, and refine overall operations. And it’s cost-effective—just add QuickBooks Commerce to your QuickBooks Online accounting software subscription.

Sign up for QuickBooks Commerce today and see what a difference cloud-based OMS can make for your e-commerce business.

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