What is distributed order management and why should you adopt it?

Home Uncategorized What is distributed order management and why should you adopt it?

In today’s context, supply chains are becoming increasingly complex. However, there are simple and effective solutions to manage them. One of these solutions is to take the Distributed Order Management (DOM) approach. This solution focuses on orders, and intermediates them to ensure their delivery, from an optimal point of origin to the required destination, in a timely manner and minimizing costs.

As supply chain tools and solutions evolve to optimize supply chains, they often propagate silos, redundancies and create points where they fail to simplify processes. This is because most of these management solutions on the market have been developed opportunistically, to address simplistic problems in unnecessarily complex ways. In addition, many were designed solely to serve the retail and omnichannel market, but are built so rigidly that it hurts the very users who implement them.

Generally, distributed order management solutions offer integration with a commerce server, offer some logic for assigning orders to a delivery location, and also offer integration with carriers. These offerings work well at a basic level, but are insufficient when trying to adequately handle the growth of a company, or when responding to the pressing need to quickly, continuously and efficiently adapt to change.

With the order being the most obvious common denominator that brings business relationships together, it is only logical that a solution focused on them has emerged: the order contains the essence of any business transaction. Distributed order management can identify the buyer or seller, list the products and their prices, and specify where the order should be shipped to and when. An effective solution of this type must be designed to be flexible and configurable to enable companies to respond quickly to, and even anticipate, changes in the marketplace to transform them into opportunities for sustained differentiation and competitive advantage. It must be consistent with purchase orders, sales orders, returns and transfers. In other words, it must work well with inbound and outbound orders, whether B2B or B2C, for all types of products, geographies and modes of transport.

Specifically the retail industry, for example, is made up of companies that have a common goal: to implement an omnichannel strategy to deliver consistent customer experiences. Supply chains, with their high complexity, struggle to overcome the challenges of achieving the stated goal. For example, the lack of traceability is a huge problem that constitutes an obstacle to achieve it. Distributed order management assumes complete visibility of an inventory in real time to ensure, precisely, that an omnichannel strategy can be implemented.  It relies on a single global view of inventory across the organization to intelligently manage orders for accurate and more cost-effective fulfillment. By improving the efficiency of a retailer’s supply chain, it helps them better meet customer expectations. The goal of maintaining a consistent customer experience also involves effective returns management, which is just as important as delivery management in maintaining a high level of service. Return flows have long been a major problem for retail companies, but a distributed order management system helps to solve this by providing transparency into the data being handled.

This type of solution requires that there is a convergence of orders, inventory and logistics to better link multiple suppliers, customers and companies. Omnix is a SaaS platform that enables such convergence by configuring all logistics attributes, inventory sources, routes, coverage characteristics, etc. in a single module. It is a system that has functionalities that allow you to focus on the order. For example, it has an order management module by which it records and allocates orders, and orchestrates in a way that parties are notified for preparation, it sends automated messages to customers to notify them of shipment updates, and reallocates inventory sources when necessary.

The distributed order management approach is original and efficient, and deserves to be investigated and considered by those managing supply chains. Adopting this perspective can create a lasting solution that truly serves the needs of today’s users, as well as the needs that may arise in the future.

image-blog
image-blog
image-blog
image-blog
image-blog