WHAT DOES AN ORDER MANAGEMENT SYSTEM (OMS) STANDS FOR?
An Order management system (OMS) acts as an electronic guardian which helps to effectively manage, execute, track-record to safeguard the securities orders in an efficient and cost-effective manner.
An Order management system is a software that monitors to ensure safe and easy flow of trade orders through FIX protocol (FIX or Financial Information Exchange).
Order management system is used to track all the orders received from customers. Additionally, it also tracks inventory on hand and customer data. Order management is not the same as inventory management, but it does include some of its aspects. For instance, OMS includes tracking stocks, and tracking their movement once they are shipped. Separately, they both manage various parts of the supply chain, overlapping in certain sections.
To clarify further, inventory management tends to focus more on past orders which helps a firm forecast for any future demands, analyze sales and demands trends, so that the right amount of stock order can be placed. This is to make sure your firm doesn’t end up with 5 years’ worth of stock lying in your warehouse.
On the other hand, order management system is all about organizing any ongoing orders, and inventory management system takes into account the past and assists you in managing the future orders to streamline the supply chain side of your business. Nonetheless, the two aspects of the business often go hand in hand, and managing both of these is the key to having impressive operations.
THE GENERAL WORKING OF AN ORDER MANAGEMENT SYSTEM (OMS)
To process a buy or sell order for a security, an order has to be placed within a trading system.
An order contains the entire detailed information including security identifier (ticker), order type (buy or sell), order size, order limit, order instruction (day order, fill or kill, goods till canceled) and order transmission (broker ECN, ATC) and so on.
THE ADVANTAGES OF EMPLOYING AN ORDER MANAGEMENT SOFTWARE:
Any system that is able to manage such comprehensive and dynamic data will be more efficient and enabling in the cloud. Therefore, it brings to the table many benefits, including but not limited to the following –
- An Accounting System to monitor your order and sales: Make sure to integrate your order management software to our accounting software such as Quickbook. An Accounting system helps to keep a vigilant eye regarding the order placement, pricing and discounts made or given to a customer. This helps to protect you from comiting minor mistakes and ensures an accurate order placement.
- Better fulfillment: As all your data is in one place, you can experience better fulfillment as there will be fewer delays as well as better tracking process in place. You can also have better access to all your orders as well as their statuses.
- Enhanced organization: This means organized sales orders allows it to be accessible within a few clicks instead of going through paperwork to find the exact order you are looking for. When the cloud is used for managing data, it guarantees fewer errors as well as time lag in updates.
- Improved tracking: When you manage orders in the cloud, you can easily track them, which results in extraction of updated information as well as knowledge of the real-time status of any order.
All good order management system software can help streamline your supply chain, resulting in better revenue and reduced operational costs. So, with efficient order management software in place, you will never fail to fulfill an order or go out of stock.