what is order management system

An order management system (OMS) is a computer software system used in several industries for order entry and processing. It simplifies the sales process from order creation to delivery, for all sales channels. An OMS tracks all the information and processes, including order entry, inventory management, fulfillment, and after-sales service. It allows businesses to manage the entire fulfillment process, from order collection, inventory, and delivery visibility to service availability and reporting. An OMS offers visibility to both the business and the buyer, providing near real-time insight into inventories and allowing customers to check when an order will arrive. An integrated order management system may encompass modules such as product information, inventory available to promise (ATP) and sourcing, vendors, purchasing, and receiving, marketing, customers and prospects. Order management requires multiple steps in a sequential process like capture, validation, fraud check, payment authorization, sourcing, backorder management, pick, pack, ship, and associated customer communications. Order management systems usually have workflow capabilities to manage this process. An OMS can be a standalone system or a module of ERP and SCM systems. In the financial markets, an OMS is an electronic system developed to execute securities orders in an efficient and cost-effective manner. Brokers and dealers use an OMS when filling orders for various types of securities and can track the progress of each order throughout the system.