Whether running a small B2B e-commerce business or a multinational store, you will have orders coming and going. On a slow day, handling all the orders without much effort is manageable, and you can efficiently keep track of all customer orders. However, on days you have sales, you might notice a significant uptick of orders coming in, and keeping track of all these new orders can get increasingly challenging.
That is why most e-commerce businesses have a B2B order management system to alleviate some of the burden. In this article, we will discuss what a B2B order management system is, its different types, why it is essential for your business, and how you can pair it with the right app to help your business grow.
What Is A B2B Order Management System?
A B2B OMS or an order management system is a digital solution designed to manage and automate the order processing for B2B businesses handling bulk transactions. The system handles everything from order entry and inventory management to tracking shipments and processing payments.
For instance, consider a large electronics distributor receiving hundreds of orders daily from various retailers. The business has to know which orders are ready for delivery, which are en route to their destination, and which are pending or facing delays. It is a logistical nightmare for the electronic business to manually keep track of everything, especially when B2B businesses are large enough to handle many different clients simultaneously.
With a B2B OMS, the distributor monitors the status of orders and the entire order lifecycle. It automatically updates stock levels, generates invoices, and provides real-time tracking information, ensuring the distributor and the retailers are on the same page. Whether a client orders 1,000 units or 100,000, the OMS ensures accuracy and efficiency, reducing errors and saving valuable time.
5 Types Of B2B Order Management System
There is no all-in-one order management system that every B2B business uses. Capital constraints and other logistic factors must be considered when a B2B business implements an OMS for inventory and order tracking. So, let’s go over some of the different types of B2B order management systems used:
- Manual Order Management System
- Spreadsheet-Based Order Management System
- Standalone Order Management System
- Integrated Order Management System
- Cloud-Based Order Management System
Type#1 Manual Order Management System
A manual order management system is the traditional approach where orders are processed manually; for example, paper forms are used to input customer data manually. This system relies heavily on human intervention to record, track, and fulfill orders. While you might think a manual OMS might be plagued with human errors, it makes logistical sense for small businesses to use such a cost-efficient OMS.
In a business setting, implementing a Manual Order Management System involves setting up a detailed order entry, tracking, and fulfillment process. It also requires meticulous attention to detail and organizational skills to avoid errors and delays since human errors can cause problems in order tracking.
For example, a small craft supplies wholesaler might use paper order forms and spreadsheets to manage their orders. Each order received via phone or email is manually recorded, and inventory is updated by hand. While this method works for low volumes of orders, it becomes increasingly challenging as the business grows, leading to potential mistakes and inefficiencies.
Type#2 Spreadsheet-Based Order Management System
While a manual OMS seems inefficient, an upgrade to it is the spreadsheet-based order management system. It takes manual methods further by inputting data into a spreadsheet software. This system uses spreadsheets to track orders, inventory, and customer information. It offers more flexibility and functionality than paper-based systems, such as automated calculations and data sorting. However, someone must still input data and manually update the tracking process accordingly. While it might be faster than a traditional manual OMS, it is still time-consuming and prone to errors.
To implement a Spreadsheet-Based Order Management System, businesses create detailed spreadsheets to track orders and inventory. For instance, a mid-sized office distributor uses a spreadsheet that has the customer’s name, date of order, status of an order, and cost of the order. The orders are then entered into a shared spreadsheet, where stock levels and customer information are continuously updated. While this system provides better organization and visibility than manual methods, it can still be cumbersome and inefficient for handling large orders, eventually leading businesses to seek more automated solutions.
Type#3 Standalone Order Management System
A Standalone Order Management System is a dedicated software solution designed specifically for all processes related to order management. It is also a significant upgrade to both spreadsheet OMS and manual OMS as it offers advanced features like automated order tracking, inventory management, and reporting.
These systems are typically more user-friendly and efficient, reducing the risk of errors and streamlining the entire order process. A standalone OMS is the way to go without complicating everyday operations when a business is looking to scale and improve its operations.
Implementing a Standalone Order Management System involves selecting a software solution that fits the business’s needs and setting it up to manage orders. For example, a growing apparel B2B wholesaler might adopt a standalone OMS to handle increasing order volume. It centralizes all the critical factors in order management, such as order entry and real-time order tracking, and generates invoices.
By centralizing order management, a business can easily access all the necessary information needed to manage orders as efficiently as possible while reducing manual workload with data entry.
Type#4 Integrated Order Management System
The one limitation with standalone OMS is in its name; it is standalone, meaning it will only manage your orders and nothing more. This is fine for most businesses that need software to manage orders. However, when you scale your B2B business, you must factor in other important aspects of your operations, such as inventory management. So, when a standalone OMS is insufficient, a B2B business often upgrades to an integrated OMS.
An Integrated Order Management System connects with other business software like customer relationship management (CRM) and enterprise resource planning (ERP) systems to provide a unified platform for managing orders. So now, the business has an OMS that covers everything from order entry to fulfillment, inventory management, customer relationship management, and financial reporting. The integration ensures data consistency across all departments, improving efficiency and decision-making.
While there are integrated OMS readily available, the limitation with such a B2B order management system lies in needing one that works with your existing CRM or ERP systems. If they are incompatible, the systems cannot communicate the data to provide you with a complete centralized system for all business operations. In that case, a business has to get a custom-integrated OMS, which is extremely expensive and time-consuming. That is why large organizations and enterprises use integrated OMSs.
Type#5 Cloud-Based Order Management System
Each type of OMS we have discussed is an upgrade to the previous one. So, how do you improve on enterprise-level software like an integrated OMS? The answer is in the cloud; more specifically, it is a cloud-based order management system.
Other than a manual OMS, the rest of the OMSs can also be classified as cloud-based OMS, provided the software is connected to a cloud computing technology to keep track of all the orders. A cloud-based OMS’s real benefit is access from anywhere and real-time updates.
Provided you have an internet connection and a compatible device, you can gain access to your OMS from anywhere. It is convenient and means that you can always keep track of your orders and manage them, even with remote teams and multiple locations. For example, your business has 4 different warehouses, and you need to centralize all the orders in one place. With a cloud-based OMS, that is very much possible.
Since all the data is kept in a centralized cloud storage system, all updates to orders are made in real time. Along with access from anywhere, you can now have updates from multiple locations instantly. It simplifies order tracking and organizes everything in one place while combining a safe and secure place to track your orders. Not only that, but cloud-based OMS also have backups and robust security measures to protect data.
5 Reasons Why A B2B Order Management System Is Important In E-commerce
We have discussed in length the types of B2B order management systems and the scenarios in which they are useful while also touching on what makes them essential for B2B businesses. So, let’s expand on the importance of B2B order management systems:
1. Enhanced Efficiency
The most obvious, and probably the most important, is the increase in efficiency that an OMS brings to a B2B business, especially in e-commerce. Customers can order anytime, and you need to input the data into your system each time they do. However, with an OMS, the orders are automatically updated. You can also minimize errors and improve the accuracy of your orders. This enhanced efficiency saves time and reduces operational costs, allowing businesses to handle higher order volumes with ease. With the increased efficiency, you can put more effort into sales strategy to help grow your business.
2. Improved Customer Experience
Customers shopping on e-commerce sites means customers expect a seamless experience. They want to buy the product and get it promptly. As such, there is a certain anxiety about the product as it is shipped to them. The uncertainty of shipping is where a proper B2B OMS fills the gap with real-time order tracking. You remove the anxiety from customers and improve their experience. With this, you can also expect them to shop at your store in the future.
3. Better Inventory Management
Effective inventory management is essential in e-commerce to meet customer demands and avoid stockouts or overstocking. A B2B OMS offers real-time inventory visibility, helping your business maintain optimal stock levels so you never run low on stocks. With an integrated OMS, you can seamlessly manage both your inventory and order tracking, which makes sure you can sell as many products as possible.
4. Data-Driven Decision Making
Not only does a B2B OMS help with order management, but it also provides valuable insights through detailed reports and analytics. In e-commerce, access to analytics and data is a surefire way to help improve your business’s growth. For that, data-driven sales optimization strategies are essential. With the OMS, you can access it, make the necessary marketing campaigns, and cater to the different customer segments in your store.
5. Scalability
As your business grows, you will have increased order volumes. More customers will mean tracking various customer orders and ensuring they are fulfilled. Your business can significantly benefit from an OMS to help with the complexity of increasing orders. They are designed to scale with your business to help you handle higher order volumes and integrate with your sales channel to show you where you can improve.
Thus, scaling your business becomes a stress-free endeavor. By accommodating growth, an OMS supports long-term success and helps companies to meet increasing customer demands without sacrificing performance or customer satisfaction.
How A Bulk Order App On Shopify Can Get The Best Out Of Your B2B OMS
Having a B2B order management for your e-commerce business is good and all, but having that does not guarantee sales. It is the experience of ordering the product itself that makes customers keep coming back for more. On Shopify, your online store can access various third-party apps to improve the customer experience.
For B2B orders, you must regularly deal with customers purchasing in bulk. Therefore, here is a bulk order app that lets you create order minimums to help increase sales and get the most out of your B2B OMS:
MultiVariants Bulk Order App With Minimum Order Quantity Feature To Help Customers Buy In Bulk
Here, the bulk order app is helping this Shopify store sell multiple variants of the same product in bulk. Customers can choose how much to order via the increment button and see the quantity increase or decrease.
They also see how many are leveled with the stock level right underneath the quantity field. There is also an out-of-stock badge to showcase which variants are available so customers are not ordering out-of-stock products.
However, the standout feature is the minimum order quantity (MOQ) feature at the bottom. A message tells the customers they need to choose a specific amount of the product. Until this minimum quantity is fulfilled, the customer cannot add their product variants to the cart.
Shopify does not have a native option that can set an MOQ restriction on products, so you can utilize this app to set a MOQ to help better manage your inventory while ensuring customers are ordering the correct quantity. By providing this, you can enhance the shopping experience for your customers.
With one app, a B2B customer will appreciate the transparency of what is available, the ability to see and select product variants on one page and order in bulk, and an MOQ feature to minimize mistakes. Your OMS will handle the rest of the buyer’s journey when they are done ordering. With a combination of the two, you get a happy customer who is likelier to become a repeat customer at your store!
Bottom Line
A B2B OMS is vital for e-commerce businesses looking to scale and grow. It takes away the pain of order tracking for a company by minimizing errors and improving the speed of tracking orders. With the correct type of OMS, you get increased business efficiency, which naturally translates to increased sales for your business in the future. So keep B2B order management in mind for your business’s growth.
