Ultimate Guide to Distributed Order Management

If you’re struggling to optimize your company’s fulfillment and simply don’t have the tools to do it efficiently, you may be considering utilizing distributed order management (DOM). It’s a great method to help you compete with Amazon when it comes to delivering the shopping experience your customers expect. 

After all, Amazon is being viewed as one of the big drivers of this change. In 2018, it accounted for 13.3% of worldwide retail ecommerce sales alone. DOM can be your competitive advantage over the online retail giant.

At the same time, distributed order management isn’t exactly the simplest concept for businesses to get their heads around. But it is essential if you want to deliver an omnichannel experience to your customers in this very modern era of commerce. 

In this article, we’ll be taking a look at exactly what distributed order management is, why it’s important, and how you can use it to your advantage. 

Who Is Distributed Order Management For?

When 4 out of 5 retailers feel that any omnichannel upgrade they implement must be paired with operational efficiency, it’s time for all retailers and brands to utilize DOM if they want to survive. 

How do you know it’s time to make the change from your old OMS to a newer DOM system? Every company has a unique case, especially as they evolve and mature.

Perhaps you run an online store and have expanded it so that you’re now selling through marketplaces and other channels, or maybe you’ve decided that it’s high time your brick and mortar store sold online and provided BOPIS. Throughout this journey, you’ve probably found that the method and/or technology that has served you so well when you were selling via a single channel is suddenly not up to scratch. 

What you now need is a more robust and unified order management system that ensures an integrated customer experience by allowing you to have a single, global view of all inventory available, provide real-time visibility of customer purchases, split orders, automatic order routing and more. This is where distributed order management comes in.

Distributed Order Management Explained 

Retail sales have been increasing year on year, and they are projected to amount to 27 trillion U.S. dollars in 2021. 

E-retail is also booming, with revenues projected to grow to 6.54 trillion US dollars by 2022. This, of course, means more demand, more physical locations and larger inventories that need to be maintained, monitored and connected, which necessitates a need for doing things differently. 

As a result of the changes, today’s fulfillment requirements are more complex than ever. Distributed order management helps businesses meet customer’s expectations in this increasingly complex omnichannel world, ensuring the merchant is able to optimize the way their orders are fulfilled so that all their order processes are optimized, and their customers are satisfied. 

Distributed order management includes separating orders so that fulfillment costs are optimized, leveraging 3rd party logistics providers, brick and mortar stores, and making inventory visible in the whole supply chain. 

Distributed order management also: 

  • Merges any orders placed by a single customer so that shipping is consolidated 
  • Lets you get the best rates from your shipping partners while at the same time nailing delivery dates
  • Provide real-time visibility of demand and inventory
  • Makes order processing faster and more efficient 
  • Prioritize tasks and optimize inventory performance
  • Dynamically decide how products should be sourced and shipped
  • Improves the customer experience 

But we’re merely covering the basics here. Distributed order management is huge in terms of its scope. To help us better understand it, let’s compare it with traditional order management…

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