Order Management System (OMS)

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    An OMS decides which stock is promised to which order, and from where it ships. What it does, where it ends and a WMS begins, and when you actually need one.

    An Order Management System takes orders from every channel you sell through, decides how each one will be fulfilled, and hands the work to whoever is doing the fulfilling. It holds the single view of what has been sold, what has been promised, and what is still available to promise.

    A WMS runs a building. An OMS runs the decision above the building — and if you have one warehouse and one channel, you do not need one. The moment you have two of either, you do.

    What this subject holds

    What an OMS actually decides

    Four decisions, and they are the reason the category exists.

    What can we promise

    Available-to-promise across every location and channel — on hand, plus what is inbound, minus what is already committed. Not what is in one warehouse: what the business as a whole can honour.

    Who gets it when there is not enough

    Which channel, which customer, which order. This is allocation, and most businesses run it informally through whoever shouts loudest.

    Where it ships from

    Given several locations that could fulfil an order, which one does — and that is not simply the nearest, because the nearest warehouse is nearest to tomorrow's demand too.

    What happens when it comes back

    Returns re-entering stock, on an uncertain timeline, needing to be available to promise again.

    OMS vs WMS vs ERP

    ERPOMSWMS
    AnswersWhat did the business do, and what does it oweWhat do we promise, and from whereHow the work gets done in the building
    HoldsFinance, purchasing, master dataOrders, allocation, availability across sitesLocations, tasks, stock movements
    ScopeWhole companyEvery channel and every siteOne building
    You need one ifAlwaysMore than one channel or more than one siteYou run a warehouse of any complexity

    The common confusion is with the ERP, because most ERPs have an order module. It records orders and it invoices them. It does not decide allocation across channels, it does not route fulfilment across sites, and it does not hold a real available-to-promise position. That is the gap people discover after the second warehouse opens.

    Where the boundary sits

    Where an order management system sitsOrders arrive from several channels into the order management system, which holds availability and allocation and decides which site fulfils each order. The warehouse management system then runs the work inside each building.ChannelsOwn webshopMarketplaceWholesale / EDIRetail / storesOrder Managementavailable-to-promiseallocation between channelsfulfilment routingreturns back into stockone position, every channelFulfilmentWMS — site AWMS — site B3PL or drop-shipThe OMS decides what is promised and from where. The WMS decides how the work gets done.With one channel and one site, that decision is trivial and the WMS is enough. With several of either, it is thedecision that determines margin — and in most businesses nobody owns it.
    The layer above the building. A 3PL or a drop-ship supplier sits at the same level as your own warehouses — the OMS does not care who does the work, only that the promise is kept.

    When you need one, and when you do not

    You do not need an OMS if you have one warehouse and one sales channel. The allocation question has one answer and a WMS handles it.

    You probably do if any of these is true:

    • You sell through more than one channel and they compete for the same stock.
    • You hold stock in more than one place, including at a 3PL.
    • You have oversold on a marketplace because two systems each believed they owned the unit.
    • Somebody reconciles availability between systems by hand.
    • Which customer gets scarce stock is decided by whoever asks most persistently.

    The honest test: if two people in your business could give a customer a different answer to “can you ship this today”, the allocation decision is not being made anywhere. That is what an OMS is for.

    Where we sit

    BizBloqs provides the OMS and the WMS as one platform, so the allocation decision and the work it produces sit in the same system and share one stock position. No reconciliation between a decision layer and an execution layer, because there is no boundary to reconcile across.

    Where you already run a WMS you are happy with, the OMS can sit above it. Where you run an ERP, the OMS complements it rather than replacing it — the ERP keeps the financial record and we keep the promise.

    The longer argument

    Our paper Sell less than you have works through the allocation problem properly — why most operations optimise the wrong number, what a broken promise actually costs on a channel that rates you, and why the right amount of stock to offer is usually less than you have.

    Read the working paper

    Questions worth asking a vendor

    1. Show me available-to-promise for one SKU across every warehouse and channel, as three separate numbers: committed, reserved, free.
    2. What is the measured latency between a pick confirmation and each sales channel's availability updating? Not the design target — the measured number.
    3. How do I reserve stock for one customer or channel without hiding it from the others entirely?
    4. Can I set a per-channel threshold below which that channel stops being offered stock, regardless of physical availability?
    5. Is fulfilment routing a cost decision on this order, or does it account for the opportunity cost of depleting that location?
    6. How do I measure fulfilled-against-promised, separately from fulfilled-against-received?
    7. After this is installed, how many systems hold a stock quantity for the same item? Name them.

    Question two is the one most vendors answer badly, and it is the number that decides whether you oversell.

    Common questions

    What is an order management system?

    Software that takes orders from every channel, decides how each will be fulfilled and from where, and holds the single view of what is available to promise across the whole business.

    What is the difference between an OMS and a WMS?

    An OMS decides what is promised and which site fulfils it. A WMS decides how that work gets done inside the building — putaway, picking, packing, despatch. One runs the decision, the other runs the operation.

    Is an OMS the same as the order module in my ERP?

    No. An ERP order module records and invoices orders. It does not allocate scarce stock between competing channels, route fulfilment across sites, or hold a true available-to-promise position across locations.

    Do I need an OMS if I only have one warehouse?

    Not for the location decision. But if you sell through several channels competing for the same stock, the allocation question still exists and a WMS alone does not answer it.

    What is order orchestration?

    The coordination of everything between an order being placed and it being fulfilled — allocation, routing, splitting, sourcing and returns — across channels and locations. It is the work an OMS does.

    Can an OMS work with an existing WMS?

    Yes, and it commonly does. The thing to check is how many systems end up holding a stock quantity for the same item, because every additional copy is a reconciliation task and a number that can be wrong when a customer asks.

    Short definitions sit in the glossary entries for OMS and order orchestration. Alongside this page: what an order management system does, EDI integration in order management and OMS versus WMS.

    Order management is available at all tiers. Multi-site allocation and fulfilment routing are part of SME+ and Enterprise.

    Ready to see BizBloqs on your own process?

    Book a demo and we will walk your warehouse and order flow end to end — inbound, storage, picking, shipping, returns — and tell you honestly what BizBloqs would change.

    Two questions about your own channels

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