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April 25, 2019
Introduction to distributed order management (DOM) systems
By: Jason Acimovic

How to DOMinate the Market

Omni-channel customers want it all—they want to shop in stores or online, customize how they get their orders delivered, track and control their orders in real time, and do a lot more. Companies that can give these omnichannel customers what they want will gain a significant competitive advantage over those that cannot. However, many companies’ order management systems were designed and implemented before the advent of omnichannel retail. These older systems cannot communicate easily with each other, and that’s why the customer experience suffers. There is no way to satisfy the needs of the omnichannel customer and be flexible enough to incorporate future changes by relying on these older order management systems.

You are the executive vice president at Lockstop Loafers, a retailer of shoes with both an online and a brick-and-mortar channel. You have been asked to evaluate the current order management system to determine whether it is sufficient to meet customer expectations and new business goals. To complete this evaluation, you will have to ask yourself some important questions:

  • Is the existing order management system failing to meet your customers’ needs?

  • Are you incurring significant logistics, labor, and markdown costs because of this inefficient system?

  • Are operations suffering because your company has to deploy additional mechanisms to fulfill customer orders?

  • Is your company experiencing significant stockout rates while also holding a significant amount of excess inventory?

  • Are your deliveries facing delays because of order mismanagement?

  • Is your company unable to handle higher customer orders during peak seasons, thus affecting your bottom line?

  • Does your company lack real-time visibility into all inventory in the system?

If the answer to any of those questions is a yes, then you need to update your order management system. You will need to look for a system that not only offers a better omnichannel customer experience but also saves your company money in logistics, capital, labor, and inventory costs. Using this system, you can integrate all your inventory into one pool, available to deploy via a single portal. Optimization and inventory algorithms can help your company make better decisions that ultimately result in more profit.

Do you want to cater to a savvy omnichannel customer? Do you now—or plan to—have a complex network with more than one warehouse or fulfillment center? Is your current order management system frustrating your team because different systems do not communicate in real time? Are your shipping costs flying through the roof? The Accenture Academy courses Shortcomings of Traditional Order Management Systems (OMSs), Attributes of Distributed Order Management (DOM) Systems, Benefits and Evolution of Distributed Order Management (DOM) Systems, and Implementation and Maintenance of Distributed Order Management (DOM) Systems will introduce you to distributed order management and make your company ready for the future of omnichannel logistics.

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