10 Key Features of an Order Management System

Let’s take a detailed look at 10 key features of order management software. We’ve added a list of steps you’ll need to go through to use these as well as a potential scenario to show you when these features come into action.

Order processing

Let's try to visualize what happens within your business when a customer places an order from your Shopify store at 10 a.m. Without an order management system, you’re likely manually adding everything that comes into a spreadsheet, checking against stock, and hoping you don't miss out on something.

With proper (and ideally automated) order processing capabilities, the order goes straight from the sales channel into your system. You won’t have to manually validate, prioritise, or send orders anymore. That’s why a good OMS automates data capture, reducing errors so you can handle even bulk orders with ease.

How to use:

• Make sure you’ve activated automation in your OMS for order processing.
• Connect with Shopify (or another platform of your choice) to sync orders in real time.
• Set up clear rules for priority orders and warehouse selection.
• Opt in to send notifications that will keep customers informed.

Example scenario:

A customer places an order via your Shopify storefront. The OMS captures the order and customer details, checks stock, and confirms availability. The order then gets routed to the nearest warehouse where payment is verified so fulfilment can start. Ideally, the order is packed and shipped within the next order, complete with a tracking link the customer will get.

Inventory management

Ever had to tell a customer their item is out of stock after having accepted their payment? No time to panic here though. An efficient inventory management system would keep up with stock levels across warehouses (in real time) while reducing the chances of low stock by sending early warnings.

For example, if you're an ecommerce retailer selling, you need an OMS that updates stock as orders come in to prevent overselling. Extra credit to the platform if you can sync it with your suppliers and it it supports automatic reordering.

How to use:

• Make sure your system is sending you real time updates on stock levels.
• Configure alerts for when inventory falls below a set threshold and set notifications to remind you to restock before running out.
• Connect your OMS with suppliers for automated stock updates.
• Set up automatic purchase orders when the stock reaches a minimum level.
• Enable stock reservations for pending orders.
• Use buffer stock settings to avoid selling unavailable items.
• Adjust stock levels based on demand forecasting.

Example scenario:

A customer orders a blue backpack from your store. The order management software instantly updates inventory and reduces stock count. The system then detects low stock levels and sends you a notification while the inventory levels are synced across all sales channels.

Goods-in

Receiving stock efficiently remains your number one priority. A good goods-in is one of the features of order management systems that lets you log incoming shipments, match them against purchase orders, and spot potential issues right away. Among other capabilities, your OMS should allow your team to scan barcodes, update stock levels, and flag damaged goods.

How to use:

• Log new shipments in your OMS and match them against purchase orders to ensure accuracy.
• Scan barcodes to update your inventory.
• Check the products to flag issues like damaged, missing, or incorrect items
• The system then automatically updates stock levels for all locations.

Example scenario:

You get 500 units of wireless earbuds delivered to your warehouse. Your order management system records the delivery and matches them against your purchase order. Your team then scans barcodes to record the inventory. The system flags potential issues like product damage and notifies the supplier while the rest of the units go into stock.

Multi-channel integration

Nobody wants to manually juggle Amazon, eBay, and other sales channels. So multi-channel integration saves the day by bringing all your sales into one dashboard. This will also allow you to compare, for example, Etsy orders by the side of a Shopify order, while stock and shipping will be updated in both.

How to use:

• Connect your OMS to all sales channels.
• Automatically update stock levels across all platforms.
• Bring order tracking and fulfilment from different channels to a single dashboard.
• The tool then comes in to keep customer details, shipping preferences, and inventory data consistent.

Example scenario:

You sell a popular smartwatch on both Shopify and Amazon. When a customer orders one from Shopify, the OMS pulls stock down across both platforms. The system updates the inventory immediately and all orders go into your OMS to allow you to send and track them.

Order fulfilment

Order fulfilment as part of features of the order management system will point your team in the right direction, from picking to packing and everything in between. The OMS will produce pick lists forecasting the path through the warehouse and even batch similar orders together.

How to use:

• When an order lands in your OMS, it automatically goes to the right warehouse or fulfilment centre.
• The system generates pick lists and shipping labels for the warehouse staff to use.
• Real time stock data shows you if the right items are picked, packed, and shipped.
• Plus, you can track the entire fulfilment progress and shipping status through your OMS.

Example scenario:

A customer places an order on your Shopify store. The OMS transfers the order and a pick list is then available to the warehouse team who will prepare it for shipping. After the order is dispatched, the customer gets real time updates with tracking details and estimated delivery dates.

Order shipping

Get rid of shipping delays forever by picking an OMS that integrates with couriers like Royal Mail or DHL, produces labels automatically, and gives tracking updates.

How to use:

• Connect your OMS to carriers such as Royal Mail, DHL, or FedEx.
• Once the integration is in place, it will automatically create shipping labels when an order is processed.
• Set the OMS to track orders in real time and stick to customers' strict shipping preferences.

Example scenario:

Whenever an order is sent in, the OMS generates a shipping label automatically. Once you make the shipment, the system gives you and your customer live updates on its location.

Returns management

OMS should also handle the inventory part of returns and optionally refunds.  Mintsoft doesn’t handle refunds (only inventory returns). The platform will allow the user to book returned goods into stock. They would need to process refunds through other platforms, such as their sales channel.

How to use:

• When you get a return request, the OMS records the returned item and puts it back into the stock when you've received and inspected it.
• For refunds, you'll process these from your sales channel platform.

Example scenario:

After a customer asks for a return, the role of the OMS is to record the return and display the original order details. The warehouse staff can use this info to check if the item is not damaged and can be resold. If the item can be sold, the OMS puts it back in stock. All that's left for you is to handle the refund or send the buyer a different item.

Bundles and subscription management

Selling gift hampers or special edition boxes? You need an OMS that supports bundles and subscription management. In particular, you want it to keep track of individual components (like shampoo in a grooming kit) and, at the same time, treat the bundle as a unit for pricing and stock purposes.

How to use:

• Add product bundles with their custom, discount pricing or special offers to the OMS.
• Manage subscriptions by establishing frequency and duration for recurring orders.
• Ensure that the automated processing of recurrent orders for subscribed customers is running smoothly.
• Use the OMS to track subscription renewals, cancellations, and adjustments.

Example scenario:

For every new subscription, the OMS automatically generates the next month’s order based on the customer’s subscription. It then helps you process the order, pick the bundled products, and ship them. When a customer cancels their subscription, the OMS takes note of this and stops future orders to them. Plus, it updates all this in your stock.

Customer communication

While most OMS platforms won’t directly send messages to customers, they’ll give you the insights and ideally the integrations needed for you to do so. Mintsoft won’t communicate directly with customers. However, it will send information from the platform (like order status and tracking info), back to your ecommerce integrations to trigger customer communication.

How to use:

• Set up your OMS to track and relay updates about order status to customers
• Ensure that the ordered status updates and tracking information from the OMS are pushed back to your sales platform, which will then automatically update the customer.
• Your sales platform should also provide customised templates for emails or SMS messages to send out for marketing.

Example scenario:

After an order is sent, the OMS updates your customer with a tracking number and other relevant details for them to monitor shipment. In the case of a delay or an issue, the OMS will update the order status and the customer gets an email with that update.

Reporting

Good reports mean good operations. Think sales trends, stock turnover data, and even more insights into fulfilment bottlenecks. Solid reporting will give you a chance to spot delays and answer very specific questions.

How to use:

• Set up your OMS to automatically generate periodic reports about key KPIs like sales trends, inventory turnover, and fulfilment efficiency.
• Customize reports based on the specific data points that matter for your business.
• Use the reports to trace possible bottlenecks in fulfilment, stock-outs, and lags in the order process.

Example scenario:

You can configure the OMS to send you a sales report at the end of every month. Among others, this will tell you what items are almost out of stock or what delays in packing can impact shipping time. You should use this information to order more inventory or adjust warehouse staffing to ramp up fulfilment.

So, how do you choose the right OMS? Start with your main challenges. 

Are you a 3PL drowning in the manual entry work? An ecommerce retailer forgoing sales because of stock mismatches? 

Match these needs against the order management features above. Scalability will matter as your system must grow with you. Don’t overlook ease of use either. A clunky interface wastes more time than anything else.

Here's an example of must-have features you'll need if you're a subscription-based business. Opt for an OMS with:

• Recurring order management to handle repeat deliveries
• Predictive stock alerts to prevent supply gaps
• A payment integration to manage automated billing

Take a look at our guide for choosing ecommerce order management software for more detail on the key factors to consider when choosing retail order management solutions.

Mintsoft’s OMS connects to over 150 tools for couriers, platforms, and marketplaces like Amazon, eBay, Shopify, and more. Ben Chidzoy, Co-founder of Fulfillable, was able to eliminate hours of manual data juggling with Mintsoft:

“Lots of time was spent on manual processes which Mintsoft has now allowed us to automate. Our ethos is to automate as much as we can, so that we can reduce expenses by streamlining our operations where we can. Mintsoft has allowed us to do that.”

Notable Mintsoft order management system features include:

• Automated workflows: Set your own rules to speed up dispatch and configure Mintsoft to batch orders by courier or prioritise high-value clients.
• Order rules: Speed up and simplify complex order processing with Mintsoft’s order rules. Add gift notes, assign specialist couriers, or hold orders from specific postcodes for review.
• Centralised control: Never miss an order again by letting Mintsoft pull sales from every channel, track them, and log fulfilment history for easy reference.
• Custom reporting: Create customised invoices, packing slips, picking lists and despatch notes within seconds.

Mintsoft adjusts to your requirements to help you handle diverse challenges such as lots of backorders, bulk sales, and end-to-end control struggles. Discover Mintsoft with a free demo to see how 3PLs, fulfilment houses, and online retailers can use it to manage the increasing demands of ecommerce.