What Is an Order Management System?
An Order Management System (OMS) is software that manages the complete lifecycle of an order — from the moment it is placed through inventory allocation, fulfillment, shipping, invoicing, and reconciliation.
An OMS sits between sales channels (such as eCommerce sites, marketplaces, call centers, or wholesale portals) and fulfillment operations (warehouses, stores, third-party logistics providers). Its role is to ensure that orders are processed accurately, inventory is available when promised, and fulfillment rules are consistently enforced across the business.
As retailers grow in complexity, an OMS becomes the operational backbone that keeps orders, inventory, and customers in sync.
An OMS sits between sales channels (such as eCommerce sites, marketplaces, call centers, or wholesale portals) and fulfillment operations (warehouses, stores, third-party logistics providers). Its role is to ensure that orders are processed accurately, inventory is available when promised, and fulfillment rules are consistently enforced across the business.
As retailers grow in complexity, an OMS becomes the operational backbone that keeps orders, inventory, and customers in sync.
What Does an OMS Actually Do?
- A modern Order Management System coordinates several critical functions:
- Captures orders from multiple sales channels
- Determines inventory availability in real time
- Allocates inventory based on configurable rules
- Routes orders to the appropriate fulfillment location
- Manages split shipments, backorders, and partial fulfillment
- Tracks order status through fulfillment and delivery
- Supports returns, exchanges, and adjustments
- Provides visibility for operations, customer service, and finance
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OMS vs. eCommerce Platform: What’s the Difference?
An eCommerce platform primarily handles:
An OMS handles:
An eCommerce platform primarily handles:
- Product display
- Shopping cart
- Checkout and payment capture
An OMS handles:
- Inventory accuracy across channels
- Order routing and fulfillment logic
- Backorders and partial shipments
- Multi-location fulfillment
- Order lifecycle tracking and reconciliation
When Does a Business Need an OMS?
Many retailers realize they need an OMS when they experience issues such as:
Many retailers realize they need an OMS when they experience issues such as:
- Inventory showing available online but unavailable in reality
- Orders needing to ship from multiple warehouses
- Frequent backorders or partial shipments
- Customer service unable to see accurate order status
- Manual spreadsheets or workarounds to manage fulfillment
- Disconnected systems across sales, inventory, and accounting
Key Capabilities of a Mature OMS
A full-featured OMS typically includes:
Inventory Management
Real-time inventory visibility across warehouses, stores, and virtual locations, with support for allocation, reservation, and backordering.
Order Routing & Fulfillment
Rules that determine where and how orders are fulfilled including split shipments and multi-location sourcing.
Order Processing & Lifecycle Management
Support for complex order scenarios, including partial shipments, adjustments, returns, and exchanges.
Customer & Order Visibility
Centralized access to customer history, order status, payments, and fulfillment activity.
Integration with Other Systems
Connectivity to eCommerce platforms, marketplaces, accounting systems, tax engines, and shipping providers.
A full-featured OMS typically includes:
Inventory Management
Real-time inventory visibility across warehouses, stores, and virtual locations, with support for allocation, reservation, and backordering.
Order Routing & Fulfillment
Rules that determine where and how orders are fulfilled including split shipments and multi-location sourcing.
Order Processing & Lifecycle Management
Support for complex order scenarios, including partial shipments, adjustments, returns, and exchanges.
Customer & Order Visibility
Centralized access to customer history, order status, payments, and fulfillment activity.
Integration with Other Systems
Connectivity to eCommerce platforms, marketplaces, accounting systems, tax engines, and shipping providers.
Who Typically Uses an OMS?
Order Management Systems are commonly used by:
Order Management Systems are commonly used by:
- Mid-market and enterprise retailers
- Direct-to-consumer brands with multiple channels
- Businesses with shared inventory across locations
- Companies with complex fulfillment workflows
- Retailers scaling beyond basic eCommerce operations
How an OMS Fits Into a Modern Commerce Stack
In a modern commerce environment, systems often specialize:
In a modern commerce environment, systems often specialize:
- eCommerce platform → customer experience and checkout
- OMS → order orchestration and fulfillment logic
- ERP/accounting system → financials and reporting
- Warehouse systems → physical fulfillment execution
Learn More About Order Management Software
To see how a modern OMS is applied in real-world retail operations — including inventory management, multi-warehouse fulfillment, backorders, and complex order scenarios — explore Ability’s Order Management System.
To see how a modern OMS is applied in real-world retail operations — including inventory management, multi-warehouse fulfillment, backorders, and complex order scenarios — explore Ability’s Order Management System.
