The Benefits of Automating the Entire Order Management Processes

Updated on :February 28, 2024
By :James Mordy

In this competitive and modern era, every new sale generated by a business is worth celebrating. But, equally important is the ability of the business to manage and fulfill the order with utmost efficiency. Every business, irrespective of the type and size, should have a proper process to collect, track and fulfill orders, known as order management. The inability to withstand business challenges associated with the competitive landscape, poor customer experience, unfulfilled orders, etc., is compelling businesses to upgrade and invest in the best order management systems. In addition, performance and data accuracy related issues in inventory management, order tracking, order prioritization, reverse logistics, supply chain, payments, etc., are also posing a dire need to implement upgraded order management systems i.e., automated and AI-based OMS to ensure long-term success. 

As the wave of automation has already started revolutionizing a large number of industries and sectors, it is also transforming the order management process to improve the organizational ability, and to tackle potential challenges of order fulfillment. This blog sheds some light on the critical insights and benefits of automating the entire order management process including order processing, order picking, order shipping, order delivery, and order billing .

“The best customer service is if the customer doesn’t need to call you, doesn’t need to talk to you. It just works.” Jeff Bezos.

What is Order Management Automation?

Order management automation refers to the process of automating the  tasks of order management right from receiving an order to fulfillment. An automated order management system administers and centralizes the orders received from multiple sales channels in order to reduce the time, cost, efforts and errors in the entire order management process, streamlining order fulfillment for utmost efficiency and productivity. The majority of the order management software comes with robust automation capabilities to offer real time insights into order processing records, inventory, billing & payments, database of vendors & customers, customer returns & refunds, etc., besides providing general ledger information. The automated order management systems are widely applicable by various industries that deal with multiple products especially by the ecommerce businesses, manufacturing, medical distributors & suppliers, etc., to improve order fulfillment rates.

Why Automation is Needed in Order Management Processes?

Manually managing orders from order processing to order delivery and order billing is a gruesome task prone to more errors. As a result, automation is not optional anymore for businesses; rather, it has become a necessity in this modern world owing to a few factors like growth in online sales, high workload, business competition, dynamic customer preferences, etc. The E-commerce Market is anticipated to reach $18.81 trillion by 2029 with a CAGR of 15.80%, indicating a dire need to automate order management processes. In addition, consumers seek frictionless experiences and around 43% consumers are planning to increase their online spending in the upcoming months. Reports also indicate that  around 46% manufacturers lack a skilled workforce in implementing smart manufacturing which hampers their ability to outpace the competition and effectively deliver the orders. Automation is the solution to such problems through which warehouses and retailers can quickly fulfill orders and meet customer requirements.

Can You Automate the Entire Order Management Process?

Yes, businesses can automate the entire order management process to streamline most of the tasks ranging from receiving an order to its delivery. These mainly include order receiving, products packing, order shipping and order delivery. These are as follows;

can you automate the entire order management process

Order Processing

In order processing, businesses have to confirm the online payment if made, validate the order information, confirm product availability, assign an order to a specific storage location, assign an order number, send confirmation notifications, generate the receipt and review many more things. Automated order management systems can automate these tasks so that products can be quickly picked for efficient fulfillment.

Order Picking

After order processing, businesses prepare the order for picking. It includes tasks such as  locating the products in the warehouse, selecting suitable picking method in terms of batch, individual, wave and zone picking, updating the warehouse software after picking, choosing picking route, etc. Advanced OMS can automate these tasks to efficiently move to the next phase i.e., product packing.

Products Packing

Product packing involves tasks like retrieving the product from inventory, verifying product condition, selecting the packaging material and complying with shipping regulations. They also need to attach error free invoices and other relevant information to the packaging to ensure proper shipment and delivery. Automated OMS with robotics capabilities can easily smoothen the product packing process resulting in better efficiency.

Order Shipping

Advanced order management tools can also automate shipping operations like choosing the suitable shipping method, notifying the users, coordinating with the shipping carriers, monitoring the status of shipped orders, etc. These tools can also analyze the shipping performance indicators to suggest further improvements in shipping for better performance. 

Order Delivery

After receiving, packing and shipping an order, its timely and accurate delivery is also very important. Automation can help here too in managing the critical areas of order delivery such as updating order status, monitoring shipment, addressing delivery issues, handling reverse logistics issues, analytics & reporting, etc. Through this, warehouse operations can flexibly improve, and businesses can improve their order fulfillment rates for better customer satisfaction, brand image and growth.

Order Billing

Automated order management systems can also automate the billing related tasks such as collecting relevant information, create invoices, send automated bills to customers, handle billing failure queries, setting clear billing policies, follow up on due payment, apply discounts, calculate the taxes, etc. It can also automate the tasks such as payment authorization, capture and recording to eliminate any financial risks involved.

Benefits of Automating Order Management

benefits of automating order management

1. Seamless Order Processing

Seamless order processing means fast preparation of an order for shipping, a significant factor for 61% consumers in online order placement. Automated order management systems can automate both B2B and B2C order routing and validation, assign tasks to relevant departments, integrate with shipping carriers, instantly convey order updates to customers, etc. Through this, businesses can acquire real-time tracking and status updates and streamline the collaboration between departments for seamless order processing. There are several leading OMS come with seamless order processing capabilities in which orders are automatically processed and allocated to the batches that will go out first or on priority. If you are curious to know them, check the list curated by GoodFirms that are verified, and reputed for offering automated order management solutions.

2. Improved Accuracy

The precision of fulfilling an order is directly related to the relationship, and trust that customers can have with a brand. A recently published supply chain research stated that 72.7% of the businesses measure Fulfillment Accuracy Rate. A state-of-the-art OMS offers robust order automation capabilities to track insights on a real-time basis that can guarantee order fulfillment with utmost precision. It uses technologies like barcode scanning, RFID and artificial intelligence to precisely identify the orders, implement validation rules and regularly audit and monitor discrepancies. By leveraging such technologies, warehouses and retailers can catch and correct errors before or during processing and ensure accurate customer information while preventing errors.

3. Better Planning

Automating the order management process also benefits in accurate forecasting and planning. An OMS helps businesses quickly analyze the patterns from data associated with sales, orders, returns, etc., to determine and plan future trends in terms of demand forecasting, stock management, inventory optimization, delivery, etc. 

4. Effective Catalog Management 

Catalog management is an extraordinarily complex task for warehouses and retailers that can be automated and improved using catalog-driven automated order management system. While catalog management software is preferred by the majority of businesses to effectively manage product catalogs, many firms have started using OMS with excellent catalog management features like PIM integration, version control, real-time synchronization, automated categorization and tagging, etc. This helps automatically update the product information across all sales channels while tracking changes in product catalogs, inventory, and product listings for centralized catalog control.

5. Enhanced Customer Service

ways through which order management automation can enhance customer service

In modern times, consumers desire to stay informed of every step of their buying journey to track the overall status of their orders. This is only possible with a centralized customer service system to store customer information in a single place. Automating the entire order management process is beneficial in centralizing and enhancing customer service, rapidly processing orders,  analyzing historical consumer data, providing personalized service and a complete view across sales channels to address any customer query. 

6. Simplify Complex Orders

Earlier, complex orders were fulfilled using distributed order management systems which are slowly being replaced by fully automated order management systems. These automated systems can consistently handle any process complexity without any deviations from standard procedures. Complex order tasks associated with repetitive orders, order routing, order customizations, etc., can be easily managed through automated OMS with improved response and order processing time. 

7. Multichannel Order Management

The global Multichannel Order Management Market is expected to surpass .27 Billion in 2024, indicating that customers are seeking multiple ordering platforms. Fully automated OMS like Netsuite can help retailers, e-commerce, warehouses and other similar businesses offer buy, pick up and return orders from anywhere. In addition, they can also route the orders to the most suitable fulfillment location based on several factors. Moreover, these automated systems are also used by businesses due to the real-time order tracking and notifications to reduce the number of inquiries.

8. Reduced Human Error

In manual order processing, human intervention is required to process and fulfill the orders. This often leads to errors, which can be eliminated using an automated order management system. Such tools can easily detect and correct many errors associated with data entry, inventory tracking, order duplication, order routing, shipping, etc. ensuring a more seamless experience for customers. Re-thinking inventory control with reduced error is critical for successful order management.

9. Optimized Costs

According to the latest research report, nearly 77% supply chain executives are investing in order management systems to navigate peak seasons. Automating the entire order management process helps retailers and other businesses in optimizing various costs associated with order fulfillment, transportation, supply chain, inventory, paper use, etc., meaning increased revenue and profitability. IBM Sterling Order Management is a leading example that supports fulfillment models such as ship from store (SFS) to optimize operational costs.

10. Enhanced Data Security

how order management automation enhance data security

In 2023, the global average data breach cost was 4.45 million, indicating a dire need for enhanced data security. Automated order management systems can be used to improve data security as they generally store and manage organizational data on secure cloud platforms. These systems come with advanced security functions such as powerful role-based access controls, robust encryption, regular backups, disaster recovery mechanisms, security audits, PCI DSS compliance, etc., to prevent unauthorized access, easily protect sensitive data and securely process payments.

11. Eliminate Paper Use

Another major benefit of automation in the order management process is going completely digital and paperless. Automated systems digitally store, edit and manage the information, eliminating the need to print, file, and manage physical paper copies of the documents. In addition, the automated systems use digital signatures and approvals for requisition requests, purchase orders, contracts and other incoming and outgoing documents that eliminate paper use and help reduce carbon footprint. 

12. Faster Invoicing

According to a finance automation research, more than 80% businesses agree that automation helps them become more strategic in managing financial data on a regular basis. Some order management systems can also automate the order invoicing process to improve the operational speed. These automated systems can also send invoices to customers directly on their mobile phones that is beneficial in positively influencing their experience. 

13. Streamlined Inventory Management

In the US, approx. 37% consumers are likely to avoid a store or a brand if the inventory is unavailable online, whereas this number is 29% for UK consumers. Attracting customers is a top priority for businesses for which they need to  highly focus on streamlining inventory management by using automation. OMS with automated inventory management functions can help accurately track inventory, forecast demand, and replenish inventory to prevent stockout/overstock problems and prepare the inventory for the holiday season or peak times. In addition, such tools can optimize the flow of information between different processes which is beneficial in improving inventory visibility and tracking accuracy to streamline inventory management.

14. Real-Time Data Collection

A reliable automated order management system can integrate with other organizational systems like inventory management software, warehouse management software, CRM, etc. Such integration capabilities allow order management tools to automate data collection from these systems in real time. This data can then be used to automatically track sales figures, handle spikes in demand, analyze transactions, update inventory levels, and identify delays in order fulfillment. 

15. Optimized Subscription Management

Another benefit of automating the entire order management is optimized subscription management. Automated order management systems offer a centralized platform from where businesses can analyze subscription metrics, automate recurring billing, fulfill mixed orders and simplify billing volume complexities, besides configuring, managing and renewing subscriptions. Automation helps efficiently manage subscription related tasks that help businesses ensure enhanced customer satisfaction and retention. 

16. Improved Order fulfillment

Automated order management software offers many functionalities to automatically execute different tasks associated with delivery, shipping, billing, inventory, subscription management, etc. Through this automation, businesses can effectively collect accurate data, streamline order tracking, ship faster, process orders from anywhere, fulfill omnichannel orders etc., which is beneficial in improving the customer satisfaction rate thus, improving overall order fulfillment.

Future of Automated Order Management

future of automated order management

Data Analytics

Data is gold in the present time owing to which analytics is anticipated to play a pivotal role in enhancing the efficacy of future automated order management systems. Automated OMS of the future may leverage analytics to analyze macroeconomic factors like consumer sentiments, economic and political stability, degree of responsiveness to a given product, satisfaction index, etc. Through this, they can gain meaningful insights into customer behavior, purchasing decisions, future trends, etc. Businesses can also use these insights to effectively automate the required processes as per their desired approach which also includes inventory planning, demand planning, and just-in-time procurement.


While automation in order management processes is a relatively new concept, it is anticipated to expand exponentially in the near future. From order processing to order delivery and fulfillment, businesses can expect completely automated order management processes that won’t even need human intervention. Technologies like AI, IoT and ML would support this complete automation using OCRs, delivery drones, robots, self-service portals, sensors, process orchestration, etc. Companies like Walmart have already started investing in automated fulfillment centers and delivery drones to reduce delivery times, control out-of-stock and ensure user convenience. 


Blockchain is one of the most popular technologies in the present time which is widely used by businesses to improve security, traceability and transparency in their processes. Several ecommerce companies are integrating the best Crypto wallets and best Bitcoin wallets as an option for payment. In the near future, there are chances that it will boost the performance of automated order management software in automating payments, reducing reconciliation errors, real-time order tracking, enhancing product verification, etc. With further improvements in immutable record keeping, interoperability, decentralization, smart contracts, cryptocurrency, etc., blockchain will help in improving the efficiency of minimally automated processes like purchasing, inventory, and logistics, besides enhancing the electronic data interchange and process optimization capabilities.

Wearable technology

The demand for smart devices and machines is constantly rising owing to which the Wearable Technology Market is expected to grow at a CAGR of 17.60% in the next few years. It can help workers perform hands-fee operations using smart glasses, wrist mounted scanners, AR enabled wearables, etc. In addition, employees can also use wearable devices equipped with integrated voice recognition capabilities to seamlessly interact with different systems for better operational performance.

Generative AI (GenAI)-powered intelligent automation

GenAI or Generative AI technology can take order management automation to the next level. Businesses can use and train Generative AI to further enhance order entry automation, demand forecasting, personalized recommendations, fraud detection, customer support, etc., while enabling dynamic adjustments to price, order routing, inventory levels and production schedules. GenAI can be a boon for businesses in achieving further improvements in order fulfillment and order management optimization which are necessary to sustain longer in the market.


As businesses are looking for new ways to consistently deliver value to customers, automation can be the right investment to enhance the entire order management. Automation is unavoidable as manual errors can cost a business high to the extent of even losing a customer. Undoubtedly, the future of order fulfillment is automation. Investing in a powerful, automated, AI-based OMS surely can add more value to the customers. OMS may be able to significantly reduce costs, improve customer satisfaction and ensure higher operational productivity. In addition, challenges associated with scalability, data security, regulatory compliance, elevated customer expectations, etc., are likely to reduce with the ongoing advancements in automated order management systems. Adopting such advancements will also improve the agility, sustainability, personalization, and integration capabilities. Curious to learn more about automating the entire order management system to upgrade your order fulfillment? Visit GoodFirms to check the curated list of the top order management systems, pick one that suits your business, and start a conversation with them

James Mordy
James Mordy

James Mordy is a content writer for GoodFirms. A voracious reader, an avid researcher, a logophile, and a tech geek, he loves reading about the latest technologies shaping the world. He often articulates the very nuances of the tech world in his blogs. In his free time, he loves to watch movies and analyze stock markets worldwide.

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