Does Retail Need Distributed Order Management (DOM)?
Tuesday, February 12, 2019

Why Does Retail Need Distributed Order Management (DOM)?

Distributed Order Management (DOM) is simply cloud-based order management running in a multi-tenant environment. Traditional Order Management Systems (OMS) can be on-premise technologies. On the other hand, a DOM by definition is cloud technology. In this regard, a DOM is the evolution of OMS technology. Like an OMS, its core provides inventory visibility, orchestrate orders, route orders for fulfillment, and process returns. DOMs achieve this in the cloud (think Microsoft Azure). Yet, it is provided at a fraction of the cost of on-premise systems. And, it accomplishes the same task. Actually, DOM systems do a better job. This because they are always evolving. They give users more power, functionality, and capabilities.

Do You Need Both? 

a DOM is an advanced OMS, that runs on cloud technology in a multi-tenant architecture

One of the DOM vendors wrongly describes an OMS and DOM as doing different things. Regrettably, the vendor did NOT do their homework. Their article describes an OMS as taking orders, providing reports, and running exceptions. It showed an OMS as if it were a pre-processor to the distributed order management (DOM) system. Simply put, this is WRONG.

A DOM is an advanced OMS. It runs on cloud technology in a multi-tenant architecture. Multi-tenant is key for several reasons. It saves costs. It is efficient and can be massively scalable. All important to retailers. Every robust DOM is an OMS designed to run in a multi-tenant cloud environment. There is never a need to have a traditional order management system AND a DOM. They are the same product. If anyone suggests otherwise, there may be a flaw in the technology. Or, they may simply not understand order management. In either case, find a vendor better versed in DOM technology. If ever you have a question about (DOM) systems, please send questions to info@OrderDynamics.com. We will be pleased to clarify, or answer questions.

So, Why Does Retail Need Distributed Order Management?

Customer service is the key reason retailers need distributed order management. It gives a merchant:

  • BOPIS (buy online pickup in-store) services also known as Click and Collect,
  • Detailed and real-time inventory visibility (online and in-store),
  • Savings and speed from best location order routing and optimal fulfillment,
  • Shipping cost reductions from order consolidation and courier brokering,
  • Processes accurate orders with a customer system of record, and
  • Improved customer experiences on returns (speed, receipt-free, full transaction information…)

Core to Omni-channel Retail

LifebuoyEvery retailer wants an easy buying journey for customers.  Today’s retail is all about blending physical and digital sales channels. Whether the customer order is an online order or bought in-store, it does not matter. It is a customer experience waiting to be fulfilled. Above all, when a customer wants to mix and match sales channels – let them. That’s called omni-channel retailing.

Central to omni-channel retail, you need distributed order management. Call it unified commerce, converged commerce or unified supply chain the result is the same. The DOM lets shoppers mix and match sales channels easily. A customer does research through social media. Then they check inventory online for their local store. They place the order for pickup using voice technology. Finally, they pickup the order in-store to complete the cycle. All this using several sales channels. Done without friction or frustration. All this with the DOM processing and orchestrating the fulfillment journey.

Who in Retail Needs Distributed Order Management?

Certainly, from a CEO’s view retail needs distributed order management. It lets merchants offer omni-channel services. In retail, this is the new norm. Even in countries like the U.S., Canada, Australia and New Zealand, shoppers expect click and collect. Better yet, the click and collect superconsumer, is your most profitable of shoppers.

Then, to make the CEO’s vision a reality, the CIO takes on the project. From a CIO’s vantage retail needs distributed order management to tame TCO. TCO being the total cost of ownership of projects. After all, cloud-based systems have long been known to cut costs. So, consider vendors on whether their technology is native Saas or ported technology. Then, decide which will serve you best.

E-commerce & Omni-channel Teams

Surviving in retail takes time, energy and passion

Finally, consider the needs of the omni-channel and e-commerce VP and teams. In both cases, the teams need distributed order management to work and provide smooth services. Is it about the ability to tap into legacy systems or integrate with drop shipping vendors? Perhaps it is about the ability to optimize orders, or run inventory management? Probably the answer is, YES to all of the above and more. E-commerce does not work in a vacuum anymore. The days of a single business rule (ship from DC), are over. Modern retailers need smarter systems. Robust systems need to provide ready to use features. Hence the need for out-of-the-box solutions.

Does Retail Need Distributed Order Management?

Of course, the answer is yes. The world of retail and technology changes so quickly. Because of this pace, there is a market need for reliable, scalable, and robust DOMs. More than ever, retailers need DOM systems with focused expertise backing them. Surviving in retail takes time, energy and passion. It means adapting quickly and staying true to your cause. Above all, it means keeping customers front and center. A big part of this is delivering on the omni-channel promise. Simply put, to do it well means retail needs distributed order management.

 

Author: 

Charles Dimov, VP of Marketing at OrderDynamics

Charles Dimov is VP of Marketing at OrderDynamics. Charles has 23 years experience in Marketing, Sales and Management across various IT and Technology businesses. Previous roles include Chief of Staff, Director Product Marketing, and Director Sales. Charles has held roles in brand name firms like IBM, Ericsson, HP, ADP, and OrderDynamics.

LinkedIn Icon