The Differences and Advantages of Order Management Systems (OMS) Compared To Distributed Order Management (DOM)
Order Management Systemsand Distributed Order Management are often confused and conflated when discussing the supply chain. So, what does each system do? An order management system controls and keeps track of the order process (sales, entry, pricing, credit card validation, inventory management, and invoicing), while Distributed Order Management is a more state-of-the-art aspect of the order management system that allocates the best location to fulfill orders in the most economic and optimal way.
What’s the difference between OMS and DOM?
An order management system is initiated when an order is received; then, the system works to fulfill the order at the warehouse. Finally, the delivery process begins. Distributed order management comes in at the second step, when the system tracks inventory and decides on the best location to fulfill the order, based on supply.
Can an OMS operate without a DOM?
The short answer is yes. Most legacy order management systems do not utilize DOM. Without DOM, order management systems process orders via manual selection, put in place by the organization. This antiquated system can, of course, lead to human error and puts the burden on the business to make minute decisions for each order.
Advantages of DOM
DOM, in turn, automates these processes. Using DOM, an organization can send orders for fulfillment based on already established, automated rules set at a particular location. These pre-established guidelines may concern the best shipping cost, quickest delivery, or where the product is in stock. When an order has multiple items, DOM will automatically direct distribution to multiple locations.
So what can the Osa Data Order Management Hub, complete with DOM, do for you? We offer complete visibility into your orders, across multiple sales points and fulfillment locations, including order routing, printing shipping labels, returns, and subscriptions. Easily integrate and set up with us and glean data across your supply chain and platforms, providing insight into how much stock you need no matter the season. Moreover, Osa supply solutions automatically optimizes shipping and utilizes WISMO (Where Is My Order), providing the best product journey for your customers and giving you complete transparency into your orders.