Contents
- The building blocks of modern order fulfillment software
- Distinguishing between WMS and OMS in order fulfillment software
- Benefits of integrated order fulfillment software for 3PLs
- Making the most of your order fulfillment software
- The future of order fulfillment software
- Taking the next step
- FAQs about order fulfillment software
The building blocks of modern order fulfillment software
To understand how order fulfillment software works, let’s look at two main components: the Warehouse Management System (WMS) and the Order Management System (OMS). While each plays a vital role, they work best together.
Warehouse Management System (WMS)
A WMS is the driving force behind your warehouse operations. As part of your order fulfillment software suite, it handles everything that happens within your warehouse walls. Here’s what a WMS does:
- Inventory Tracking: Keeps real-time count of all items in your warehouse
- Space Optimization: Maps out the best use of your warehouse space
- Labor Standards Management: Assigns tasks to warehouse staff efficiently
- Receiving Operations: Manages incoming inventory smoothly
- Picking and Packing: Creates efficient routes for order picking
For 3PL providers, WMS-focused order fulfillment software means fewer errors, faster operations, and better use of warehouse space. One Logiwa client reported a 40% reduction in picking errors after implementing our WMS software.
Order Management System (OMS)
An OMS manages the order lifecycle from start to finish, ensuring that customers receive the correct products on time. OMS focuses on everything related to a customer’s order:
- Order Processing: Handles orders from multiple sales channels
- Customer Updates: Keeps buyers informed about their orders
- Payment Handling: Processes payments securely
- Returns Management: Makes returns simple and efficient
- Channel Integration: Connects with various sales platforms
When your OMS works well, customers notice. Good order fulfillment software can increase customer satisfaction rates by up to 30%.
Distinguishing between WMS and OMS in order fulfillment software
Understanding the differences between WMS and OMS helps you get the most from your order fulfillment software:
Scope and focus:
- WMS handles internal operations: where items are stored, how they’re picked
- OMS manages external processes: order tracking, customer communication
Data management:
- WMS tracks inventory numbers and warehouse activities
- OMS handles order details and customer information
Business objectives:
- WMS aims for operational efficiency
- OMS focuses on enhancing customer experience
Together, they bridge data and process gaps, creating a holistic approach to order fulfillment software.
Benefits of integrated order fulfillment software for 3PLs
When WMS and OMS work together in your order fulfillment software, good things happen:
Better Visibility
- Real-time inventory updates
- Clear order status tracking
- Detailed performance reports
Improved Operations
- Faster order processing (up to 50% faster in many cases)
- Fewer errors (typically reduced by 30-40%)
- Lower costs (15-25% reduction in operational costs)
Enhanced Customer Experience
- More accurate orders
- Faster deliveries
- Better communication
- Easier returns
Making the most of your order fulfillment software
Implementing integrated order fulfillment software is like building a new house—you need the right foundation, proper planning, and expert execution. Let’s explore what it takes to make your software implementation successful.
Technical needs
Cloud-Based Solutions: Today’s leading order fulfillment software solutions leverage cloud technology for good reason. Cloud-based systems eliminate the headache of managing local servers and enable automatic updates that keep your system current. Your team can access critical information from anywhere, whether they’re on the warehouse floor or working remotely. Plus, cloud solutions typically offer better security and disaster recovery options than on-premise alternatives.
Scalability: Your order fulfillment software should be able to handle your current needs, but with room to grow. Look for solutions that offer flexible pricing tiers and modular features. This allows you to start with what you need today while ensuring you won’t outgrow your system tomorrow. The best platforms let you add features, users, and warehouse locations without major disruptions to your operations.
Integration Capabilities: Modern fulfillment operations rely on a fully integrated tech stack. Your new software needs to communicate effectively with:
- Ecommerce platforms
- Accounting software
- Shipping carriers
- Customer service tools
- Existing warehouse equipment
Look for order fulfillment software that offers robust API connections and pre-built integrations with popular business tools. This will save you thousands in custom development costs and prevent data silos.
Business Considerations
ROI Calculation: Before investing in order fulfillment software, develop a clear ROI model that considers:
- Current operational costs
- Expected efficiency gains
- Implementation expenses
- Training requirements
- Maintenance fees
A good rule of thumb: most companies see positive ROI within 12-18 months of implementation when they choose the right solution and execute properly.
Training Strategy: Success with order fulfillment software depends heavily on user adoption. Create a comprehensive training program that includes:
- Role-specific training modules
- Hands-on practice sessions
- Regular refresher courses
- Documentation and quick reference guides
- Super-user program for peer support
Change Management: Think of change management as a journey, not a destination. Create a structured approach that includes:
- Clear communication about why the change is necessary
- Early involvement of key stakeholders
- Regular updates on implementation progress
- Celebration of small wins
- Feedback loops for continuous improvement
The future of order fulfillment software
The future of fulfillment software is promising, with advancements in AI, IoT, and predictive analytics expected to drive even more efficiency. Mobile solutions will also play a larger role, making access to key information easier for warehouse staff.
Taking the Next Step
Modern order fulfillment software is no longer optional for 3PL providers. The right combination can transform your operations, reduce costs, and improve customer satisfaction. When choosing your solution, look for:
- Easy integration between WMS and OMS
- Scalability for growth
- Strong customer support
- Regular updates and improvements
Ready to improve your fulfillment operations? Start by assessing your current processes and identifying where integrated order fulfillment software could help most.
Schedule a call with one of Logiwa’s warehousing software specialists to discuss your needs. The sooner you begin, the sooner you’ll see results.
FAQs about order fulfillment software
What's the difference between WMS and OMS in order fulfillment software?
While WMS helps optimize your warehouse efficiency, OMS ensures smooth order processing and customer satisfaction. Together, they form a complete order fulfillment solution that can reduce picking errors by up to 40% and increase customer satisfaction by 30%.
How long does it take to see ROI from order fulfillment software?
Companies typically experience a 15-25% reduction in operational costs, up to 50% faster order processing, and 30-40% fewer errors. To calculate your potential ROI, consider implementation costs, training requirements, maintenance fees, and expected efficiency gains across your warehouse operations.
Is cloud-based order fulfillment software better than on-premise solutions?
What integrations should order fulfillment software have?
Look for solutions offering robust API connections and pre-built integrations with popular business tools to avoid expensive custom development costs. Strong integration capabilities ensure seamless data flow across your entire operation, from order receipt to delivery confirmation, while preventing information silos that can slow down operations.
