SEVEN ADVANTAGESOF A FLEXIBLE ORDER MANAGEMENT SYSTEM

1. Omnichannel ability2. Inventory management3. Payment processing and data

security4. Customer database

management5. Customer lifecycle management6. Integration7. Software as a service

A flexible OMS can provide thetotal package

Retailers need to utilize a variety of methods to grow and manage their ecommerce operations. Organization of data is a vital necessity to ensure their business is expanding in an efficient and effective manner. In order to complete processes successfully – including receiving and processing customer transactions, managing inventory, and enhancing customer relationships – retailers are continually identifying ways to improve operational management.

Both online and brick-and-mortar retailers can implement an order management system (OMS) to ensure processes are as streamlined as possible and customer data is optimized. While retailers may believe an OMS is what they’re getting from a third-party service provider, they often find it is just an order ”routing” system.

This type of system doesn’t offer the same benefits or efficiency as an integrated, flexible OMS and can leave retailers wondering what other steps they can take to continue improving their business processes and managing their customer relationships.

Retailers need to make sure their OMS provider is setting them up for success with a solution that provides customization and scalability to ensure the software fits the retailer’s needs – both now and in the future. A more productive data-collection procedure helps customers receive the goods and services they requested more quickly and increases overall customer satisfaction. An OMS should do more than just handle orders and fulfillment. It should manage the customer lifecycle from start to finish, utilizing ecommerce and other technological ideologies, including software as a service, to perform effectively.

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The goal is to utilize an OMS with robust features that will keep customers happy and entice them to return to make future purchases. A flexible OMS can be customized to meet a business’s needs and enhance the customer experience, providing modules that can work together yet be modular enough to stand alone, and provide a unified view of the customer. SFG gives an inside look at the advantages that a flexible, comprehensive OMS offers:

1. OMNICHANNEL ABILITY

While applying one method of consumer interaction could attract traffic to a retailer’s website, employing several tactics will have a better chance of converting the consumer into a paying customer. Retailers that utilize only one channel for creating customer touches miss out on potential leads and valuable information relating to their audience. Since consumers are used to interacting with brands in multiple ways, it should be common practice for retailers to use multiple channels – like email, social media and more – to entice a consumer to complete a transaction and build a strong customer relationship. This process is called omnichannel retailing and it can be difficult for retailers to effectively practice.

A flexible OMS with an underlying unified customer database can give retailers access to varied methods of interaction. Utilizing omnichannel capabilities enables retailers to take orders and gather customer data, purchase histories and more from multiple locations or systems for their future marketing and operational use.

Third-party providers can help retailers understand and implement this practice, overseeing the tactic to ensure customer transaction history, marketing information, channel preference and other insightful information are appropriately managed and utilized for future efforts. Omnichannel ability allows companies to receive and process orders in real time, regardless of the transaction’s origin. These third-party providers can equip both online and brick-and-mortar retailers with an adaptable system for improving customer touches and conversion rates. In addition, the information gleaned from omnichannel resources can not only help retailers handle complex orders, but provide insight into future business decisions.

Retailers that value customer information collected through a flexible OMS and unified customer database are well positioned to find success with increased customer engagement, loyalty, and purchases. In other words, the more they know about their customers over time, the more they can service their customers’ needs and increase the value of the brand in their customers’ eyes.

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2. INVENTORY MANAGEMENT

With so many orders being processed on a daily basis, it can be difficult for retailers to keep track of the status of their overall stock. Information about location of goods, shipping options, and replenishment of inventory can complicate matters even further if retailers aren’t prepared. A flexible OMS allows the retailer to have a customizable set of inventory and distributed order management rules that handle allocation of inventory, oversee backorder options in real-time, and set minimum and reorder triggers, regardless of location.

These processes also provide reports and processes that help retailers manage their inventory more effectively. In addition, a flexible OMS can handle returns processing (also known as reverse logistics) as well as fulfillment and distribution practices, including receiving, storage and pick and pack operations. With all of the operational functions being managed by the OMS, retailers can turn their focus to other core strengths such as growing their customer base and brand.

WITH SO MANY ORDERS BEING PROCESSED ON A DAILY BASIS, IT CAN BE DIFFICULT FOR RETAILERS TO KEEP TRACK OF THE STATUS OF THEIR OVERALL STOCK.

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3. PAYMENT PROCESSING AND DATA SECURITY

Payment processing and security of that data are vital to a retailer’s business, and can be costly to implement and maintain. The modern consumer is increasingly aware of the risks associated with payment by credit card. News media coverage of retail data breaches is widespread. Consumers want to make a purchase from a business that can be trusted to protect this crucial information and takes the necessary steps to continually improve their security efforts.

An important step retailers can take is becoming compliant with the Payment Card Industry Data Security Standards (PCI DSS). These guidelines are updated on a regular basis to account for potential security threats. Retailers’ adherence to these standards can put consumers at ease, knowing their data is protected. Although the rules differ based on a business’s size, number of credit card transactions and other information, there are 12 basic standards retailers can start with to meet PCI regulations. They are as follows:

It is in the retailer’s best interest to have PCI compliance fully integrated in their flexible OMS. Using a PCI-compliant solution provides the retailers with cost savings and industry best practices.

1. Install and maintain a firewallconfiguration to protectcardholder data.

2. Do not use vendor-supplieddefaults for system passwords andother security parameters.

3. Protect stored cardholder data.4. Encrypt transmission of cardholder

data across open, public networks.5. Use and regularly update anti-

virus software or programs.6. Develop and maintain secure

systems and applications.

7. Restrict access to cardholder databy business need to know.

8. Assign a unique ID to each personwith computer access.

9. Restrict physical access tocardholder data.

10. Track and monitor all accessto network resources andcardholder data.

11. Regularly test security systemsand processes.

12. Maintain a policy that addressesinformation security for allpersonnel.

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4. CUSTOMER DATABASE MANAGEMENT

Retailers know their relationships with customers don’t end once a transaction has been completed and the customer receives their purchase. Instead, retailers try to turn first-time interactions into an ongoing customer relationship. Many retailers ask customers to share certain information in order to enhance their relationship. With this data, marketing and advertising teams can focus their efforts and produce and send targeted and relevant promotions, discounts and deals to their customers.

Since this information is so important for continued customer relationships, it’s crucial the data is current and accurate in the retailer’s database. Maintaining and updating this data can be overwhelming for retailers, especially if there are multiple disparate systems within the retailer’s technology infrastructure. With the information contained in a unified customer database, a retailer can manage a complete set of customer information and work with their marketing team to create the most interesting content for customers in order to increase conversions and enhance customer satisfaction and loyalty. This can be accomplished by introducing a unified customer database that is tightly integrated with or already a major component of a flexible OMS.

RETAILERS KNOW THEIR RELATIONSHIPS WITH CUSTOMERS DON’T END ONCE A TRANSACTION HAS BEEN COMPLETED AND THE CUSTOMER RECEIVES THEIR PURCHASE.

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5. CUSTOMER LIFECYCLE MANAGEMENT

Retailers use omnichannel information to manage the customer lifecycle for a number of purposes: future marketing and advertising, improving ecommerce functions, enhancing the purchasing and brand experience, and handling surveys and returns processing, among others. Retailers that fail to collect critical data will miss out on data that would greatly enhance their business and its relationship with customers. An operation will have many exciting options for growth when it has systems and tools in place to help fine-tune its marketing and operational processes.

A flexible OMS that allows a retailer to also manage their customer lifecycle can be a powerful competitive advantage. From the first interaction between consumer and retailer to receiving the ordered product in an efficient manner and beyond, retailers need an OMS that will keep its focus on the customer’s journey and take the steps necessary to provide a completely seamless shopping experience and improve customer engagement and retention.

A FLEXIBLE OMS THAT ALLOWS A RETAILER TO ALSO MANAGE THEIR CUSTOMER LIFECYCLE CAN BE A POWERFUL COMPETITIVE ADVANTAGE.

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6. INTEGRATION

Many retailers today have disparate systems they utilize for specific functions. These systems may include shopping carts, customer databases and customer lifecycle management tools, among others. In order to streamline and optimize system performance and also to reduce costs, many retailers are looking for solutions that tightly integrate these components. The integration flexibility of any OMS is of the utmost importance to retailers looking to increase their customer reach, improve customer relationships and foster a sense of loyalty. Finding a service provider that offers everything in one place can be a challenging task.

During their search, retailers should look for a flexible OMS that offers customizable modules, application program interfaces (APIs) that enable multiple systems to communicate information in real-time, and management of the entire customer lifecycle in a centralized location. This means every action from first touch to purchase to marketing outreach following that transaction will be stored in this integrated OMS. The value of having a tightly integrated system is realized in lower cost of hardware/software, upgrades and other infrastructure investments, as well as fewer vendors in the mix.

MANY RETAILERS TODAY HAVE DISPARATE SYSTEMS THEY UTILIZE FOR SPECIFIC FUNCTIONS. THESE SYSTEMS MAY INCLUDE SHOPPING CARTS, CUSTOMER DATABASES AND CUSTOMER LIFECYCLE MANAGEMENT TOOLS, AMONG OTHERS.

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7. SOFTWARE AS A SERVICE

A retailer’s focus is on growing their business and brand through customer acquisition and retention. A flexible OMS puts retailers in the best position not only for their current business but also for their ability to scale quickly as the business grows.

A software as a service (SaaS) solution provides the ability to accommodate scalability and integration. Retailers can choose to access the SaaS with their own work force, or have it managed as an outsourced solution. Either way, a flexible OMS solution that is a SaaS allows the retailer to take advantage of all the benefits of the technology while leaving the investment and maintenance in the hands of the SaaS provider. A solid SaaS will also take away any worries related to business continuity. It is important to ensure that the SaaS provider backs up data in real time, has off-site secure sites for failover capability, and a strong business continuity and disaster recovery plan. With these qualifications, retailers can have the peace of mind that their business will run uninterrupted.

A SOFTWARE AS A SERVICE (SAAS) SOLUTION PROVIDES THE ABILITY TO ACCOMMODATE SCALABILITY AND INTEGRATION.

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A FLEXIBLE OMS CAN PROVIDE THE TOTAL PACKAGE

The benefits of a flexible OMS can have a great impact on a retailer’s business, ultimately leading to increased sales through stronger customer relationships. From omnichannel ability to inventory management to secure payment processing to managing the customer lifecycle, a flexible OMS gives retailers the technology to manage their business and enhance the customer experience. The most important advantage is the ability for retailers to focus on growing their business with the tools that will bring them the most success.

SFG offers FlexOMS®, the most flexible and easily integrated outsourced order management system available. SFG’s omnichannel, real-time FlexOMS provides retailers with a customer-centric view of their business and the detailed ability to manage orders and the customer lifecycle, all in a PCI-compliant environment. Whether one product or thousands, one business model or many, FlexOMS has the rule sets to manage the order flows and customer information as the business grows, providing a much-needed competitive advantage in today’s market. To request a demo, visit www.SFGnetwork.com/FlexOMS.

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