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Order Management: Overview and Solution Options

Order Management: Overview and Solution Options

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Published by SapientNitro
This paper focuses on some of the key considerations for evaluating order management solutions.

White Paper By Jon Panella, Director of Technology
This paper focuses on some of the key considerations for evaluating order management solutions.

White Paper By Jon Panella, Director of Technology

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Published by: SapientNitro on Aug 23, 2011
Copyright:Attribution Non-commercial

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11/10/2013

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© Sapient Corporation 2011
 
Order Management:
Overview and Solution Options
 
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© Sapient Corporation 2011
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– they are a core component of customer care. An OMSprovides a bridge between various order capture systems(Web, mobile, call center order capture, electronic datainterchange) and a range of fulfillment alternatives (drop-ship vendors, fulfillment centers, stores, etc.). One of thekey components is matching supplies at the fulfillmentsources to demand from the order capture systems in theoptimal manner.This sourcing process can be complicated by the need tosegment inventory for specific channels (for example, ownedWeb site, owned retail stores and wholesale customers) or customers. There may also be a need to prioritize ordersbased upon specific characteristics.In addition to optimizing order sourcing, order managementinvolves:
•orchestratingorderfulfillment
(triggering shipment orders to fulfillment centersand/or drop-ship vendors)
•trackingorderlinesastheyprogressthrough
processing stages
•triggeringpaymentsettlement•providingvisibilitytoorderstatus•managingreturnsandexchanges
Many Multi-channel commerce companies are turning to anorder management system (OMS) as a solution for inventorymanagement, order fulfillment, and order orchestration.The value-added features of an OMS, such as support for custom kitting and optimized financial settlement tools, arealso driving companies to adopt dedicated OMS softwarepackages over traditional Enterprise Resource Planning(ERP) systems or commerce platform order managementmodules.This paper focuses on some of the key considerations for evaluating order management solutions. Those solutionsinclude dedicated OMS solutions such as Sterling CommerceMulti-Channel Fulfillment from IBM and Order LifecycleManagement from Manhattan Associates. In addition tothese “best-of-breed” solutions, there are several nichesolutions that focus on specific areas (for instance, Amdocsin the telecommunications space), as well as order management modules within ERP suites (such as Oracleand SAP) and Commerce platforms (e.g., hybris).
The Multi-ChannelCommerce Ecosystem
Figure 1 shows how order management and fulfillmentfit within the overall multi-channel commerce ecosystem
Order Management:
Overview and Solution Options
 
Order Management:
Overview and Solution Options
 
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© Sapient Corporation 2011
ADDITIONAL OMS FUNCTIONALITY
In addition to the OMS components noted earlier, order management systems may play a role in the provision of value-added services. These services can include customkitting (bundling, monogramming, computer configuration,etc.) and services at the customer site (preparation,installation, setup, etc.). An OMS system can be usedin managing capacity, sequencing, and scheduling for these services.Customer service may also be aided through order management systems. Some OMS solution providershave built user interface capabilities that guide customer service representatives through task-based screen flows inprocessing returns and exchanging orders, price matching,and providing appeasements to customers for service issues.OMS solutions may also provide a variety of financialcapabilities. Credit card settlement can be triggered by theOMS– frequently via a direct integration with the settlementprovider. In addition, the OMS may be integrated directly totax calculation systems and pricing/promotion engines tosupport recalculations as changes to the order occur.Returns and exchanges are generally managed in the OMS,and the OMS is responsible for keeping track of the entirelifecycle of the order. In many cases, the OMS provides for return policy management (return eligibility, restocking feecalculations, etc.) and payment processing to issue refundsfor returns or charge for exchange order activity requiringadditional charges to the customer. This lifecycle andstatus information can be accessed by an eCommerce site via API (Application Programming Interface) calls to enablereal-time customer inquiries.
Multi Channel User Experience
ContentManagement& DeliveryMerchandisingCatalogManagementSocial Media &CollaborationDigital AssetManagementAnalytics/ ReportingCampaignManagementWeb SmartphoneTabletKioskTouchScreenIn-StoreDisplayIPTV SociaISearchCommerce(eStore)CustomerServiceProductInformationManagementSearch & FaceNavigationConsumerDataManagementLoyaltyManagement
Content & Marketing ManagementCommerce/Customer Care
ProductionWorkflowManagementDigital DirectManagementPersonalization
& Recommendations
OrderManagement& Fulfillment
Targeting, Merchandising & Promotions
Figure 1: Multi-Channel Commerce Ecosystem

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