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Order Management VS Inventory Management Software: Which is right for your business?

As a business involved with order fulfilment, you're likely to have heard of and used order management and inventory management solutions. Notably, both systems offer their own unique pros and cons for the order fulfilment processes.

It goes without saying that these two types of systems also have features that often overlap. This will understandably cause some level of confusion for businesses when deciding which software would best suit their needs.

In this article, we look at similarities and differences between order and inventory management, as well as how they can ultimately work together to streamline processes and deliver world-class customer experiences.

Posted 26/04/2023

What is Order Management Software?

If your business manages a supply chain, whether that is selling directly to consumers or fulfilling orders to another business, an order management system is the silver bullet for your company’s sales process. Also known as OMS, it provides a centralised platform for orders from any channel and helps drive efficiencies at all touch-points – starting from order creation right up to delivery fulfilment.

Check out this article on the benefits of using an OMS to manage order fulfilment.

Find out more about Mintsoft Order Management Software.

 

What is Inventory Management Software?

As for inventory management software, it is a any business that manages physical stock as it provides unrestricted visibility on product volume and availability. It is also designed to help with streamlining re-ordering processes and, when integrated with other supply chain and administrative processes, can be tuned to work with other systems, such as accounting software, to enhance all inventory-related processes across the business.

Find out more about how inventory management can help your stock upkeep from this article.

Learn more about Unleashed Inventory Management Software.

 

What are the similarities between Order Management and Inventory Management software?

1. Better visibility means better control

Both inventory and order management systems provide an enhanced view of sales processes within your business. Whilst there are differences in how they both specific operational processes, they can still increase the visibility of your stock levels, how the stock is being moved around, and highlight any opportunities to streamline and improve fulfilment functions. This reduces the risk of over-selling (or under-selling) products and ensures you always have the right amount of stock on hand.

 

2. Increased efficiency means greater productivity

As with any piece of automation software that replaces manual processes, it will not take long to start seeing improvements in efficiency and productivity. As both systems boast automation, they can enable you to take the strain out of constantly looking for improvements. This includes developing rules-based approaches for both inventory and order operations, allowing you to speed up dispatch processes, apply triggers based on delivery options or parcel weight, and update stock levels in real-time.

 

 3. Integrations mean a single view of your stock

With other systems being deployed across the business, having the ability to integrate accounting, courier, marketplace, and shopping carts with order inventory management systems will provide business owners with the ability to do more over a centralised platform with a single login. If you are looking to save both time and money, then this full view of your supply chain is invaluable.

 

What are the differences between Order Management and Inventory Management software?

1. Customer Satisfaction VS Internal Processes

Even when there are some crossovers in terms of the data you can see in both systems, such as stock levels, the key difference between the two is what it focuses on. For OMS, it aims to drive customer satisfaction throughout the entire sales process – from payment to shipping and customer engagement. In the case of inventory management software, its main objective is to ensure the right amount of product is in the right place, at the right time.

 

2. Present VS Future

While there is a clear difference in how both systems operate, OMS concentrates on the here and now in terms of how each order is processed, picked, packed, and shipped. As for inventory management, it straddles both the present and future as it not only manages purchasing, but also works on forecasting. This will ensure your business has enough stock to meet customer demand, especially through peak trading periods.

 

How Inventory and Order Management Software can work together?

Whether you’re looking to improve the order process, inventory management, or both, there are solutions in the market that can help enhance your business. It’ll be even better when you deploy a solution that can do both.

Utilising the two pieces of software together in your supply chain will produce insights that can predict seasonal peaks and also help with forward planning. In fact, combining data from across the business will enable you to identify key areas of growth, develop improvements, and expand profitability.

More importantly, popular items are always in stock, which helps avoid disappointing customers with a lack of availability or delays. This will reduce cancelled orders, ultimately boosting the customer experience.

Mintsoft includes both order management and warehouse management in a centralised solution that enables you to always have a full view of your stock and orders in real-time. If you already have inventory management software in place, Mintsoft can also integrate with your existing system through its range of 150+ integrations.

If you do not have inventory management software in place, Unleashed can be deployed to provide complete control of your products and everything you buy, sell, make, and move.