Note: This article includes information specific to the Japanese e-commerce market (e.g., Japan-specific services, regulations, or customs). Some details may not apply outside Japan.
An OMS (order management system) is a system that lets you manage order information, inventory, and customer information across your EC site and physical stores in an integrated way.
This article explains in detail the basic functions and need for an OMS, its pros and cons, points to consider when choosing one, and representative services. For companies looking to efficiently run multiple sales channels, an OMS is an essential tool for streamlining operations and reducing mistakes.
What Is an OMS (Order Management System)?
OMS stands for "Order Management System," a system known as an order management system.
It lets you manage order information and customer information from your EC site in an integrated way, making it an extremely useful system for shops running multiple sales channels across both online sales and physical stores.
Functions of an OMS (Order Management System)
An OMS generally comes equipped with the following functions.
1. Order Management
Manages orders from each shop in an integrated way. You can also handle order changes and cancellations.
2. Inventory Management
Lets you track and manage inventory status across all stores at once, preventing sales of out-of-stock items.
3. Product Management
Manages product numbers, names, prices, and more in a unified way, resolving discrepancies in product information across channels.
4. Shipping Management
Manages shipment arrangements, cancellations, and shipping records all together.
5. Customer Management
Tracks each customer's order information and points balance. Also supports registration, account closure, and information updates.
Why Do You Need an OMS (Order Management System)?
If you run shops across multiple malls — such as Rakuten and Amazon — in addition to your own site, cross-checking order information across each site to manage inventory is extremely time-consuming.
This is where an OMS shines. By consolidating order information across multiple online sales channels and physical stores and automatically synchronizing inventory, it dramatically reduces the burden of management work.
It also lets you manage information across all back-end operations — including each shop's customer data and product data — in an integrated way, significantly reducing your day-to-day operational burden.
The Difference Between an OMS and a WMS (Warehouse Management System)
WMS stands for Warehouse Management System, a system that manages operations within a warehouse.
An OMS manages everything from order receipt through shipping instructions, whereas a WMS manages the entire in-warehouse workflow after receiving those shipping instructions — picking, inspection, storage, and so on. You could say an OMS is a management tool for the "sales/order-receiving side," while a WMS is a management tool for the "logistics/warehouse side."
If you'd like to learn more about WMS, please refer to our other article.
Benefits of an OMS (Order Management System)
There are three main benefits of adopting an OMS.
1. Significantly Reduces the Burden of Inventory Management
You can track inventory status across multiple stores at a glance, and cross-checking inventory becomes nearly automatic. This significantly reduces manual inventory-management errors.
2. Reduces Operational Mistakes
Mistakes such as a product going out of stock on Rakuten but continuing to be sold as available on Amazon due to a delayed update no longer occur. This helps prevent overselling issues and helps maintain customer satisfaction.
3. Improved Work Efficiency and Reduced Labor Costs
By moving from managing each shop individually to integrated management, operations become automated, dramatically improving work efficiency. This, in turn, also leads to reduced labor costs.
Drawbacks of an OMS (Order Management System)
Adopting an OMS also comes with the following drawbacks.
1. Implementation and Operating Costs
Using an OMS costs money. Most services involve an initial cost as well as ongoing monthly running costs. For companies still in a growth stage in particular, this cost burden can become an issue.
2. Requires Staff with IT Literacy
Using the system requires a certain level of IT literacy. If staff can't fully understand the system, you'll need to spend time on training in the early stages of implementation.
3. The Burden of Adjusting to Workflow Changes
Consolidating inventory management and product registration that were previously handled separately for each shop requires reviewing your workflows. Creating and revising manuals for employees takes time to adjust to.
Points to Consider When Choosing an OMS (Order Management System)
When choosing an OMS that fits your business, keep the following three points in mind.
1. Whether It Can Integrate with Your Existing Systems
Before adopting an OMS, always check whether it can integrate with the systems and services you currently use. If it can't integrate, the benefits of adopting it will be significantly reduced.
2. Whether Productivity Justifies the Cost
If you have a high volume of orders and frequent inventory mistakes, it's worth spending a certain amount to adopt an OMS. However, if your order volume is low, spending money on an OMS may result in a poor return on investment. Make a calm judgment based on your company's actual situation.
3. Whether Your Staff Can Actually Use It
It's important to check whether the system's usability matches your staff's IT literacy. Many services offer a trial period, so we recommend actually trying it out before adopting it.
Representative Services and Cost for OMS (Order Management System)
Here are some OMS services with a high domestic market share that have no initial cost and are easy to adopt.
| System Name | Initial Cost | Monthly Cost | Features |
|---|---|---|---|
| Shippinno | 0 yen | From 9,800 yen/month (usage-based fees also apply) | ・Adopted by over 1,800 companies ・Can be up and running in as little as 1 day |
| NEXT ENGINE | 0 yen | From 3,000 yen/month (usage-based fees also apply) | ・Highly customizable and adaptable to change ・186% growth rate among stores that have adopted it |
| CROSS MALL | 0 yen | From 10,000 yen/month | ・Available for a fixed monthly fee ・Dedicated staff provide thorough support |
| COMMERCE ROBO | 0 yen |
Free plan available (usage-based fees also apply) |
・No monthly fee for up to 500 shipments ・Simple, easy-to-read interface |
In Closing
An OMS (order management system) is an important tool for companies running multiple sales channels, helping streamline operations and reduce mistakes. By integrating order management, inventory management, and customer information, it significantly lightens the burden of back-end operations.
Adopting one comes with challenges such as cost and the need for IT literacy, but choosing a system that fits your company's situation can help minimize those challenges.
Using the points introduced in this article as a reference, choose the OMS best suited to your business and aim for greater operational efficiency and increased sales.
