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March 30, 2022

Order Management Systems: 5 Frequently Asked Questions


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An Order Management System (OMS) is a software system that helps businesses manage their order fulfillment process. Read on to learn more about Order Management Systems and when they can be useful for restaurants.

What Is An Order Management System?

An OMS tracks the full lifecycle of an order from the moment it is placed until it is delivered to the customer. At any point in time an OMS will show an order's current status. They typically integrate with the business's e-commerce platform to recieve orders. An OMS can also help the business track inventory, manage package shipping, and integrate into accounting systems.

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How Do Order Management Systems Work?

Order Management Systems receive order data from e-Commerce platforms when customers place new orders. This triggers a workflow that alters the business that they have an order to fill. As the order moves through different stages of preparation the status is tracked and updated in the OMS. The OMS also tracks shipping information, delivery information, and returns. The status changes can happen either automatically through various triggers or the status can be changed manually by an employee.

What Are The Benefits Of Order Management Systems?

When implemented well Order Management Systems can help businesses operate more effectively. Some additional benefits include:

  • Increased Productivity. By automating repetitive tasks and reducing manual work an OMS can improve productivity, allowing your business to get more done with few resources.
  • Control Inventory Costs. Many Order Management Systems track inventory, which means you're less likely to lose products through mistakes or mismanagement.
  • Better Customer Experience. Get orders to your customers faster and keep them notified about their order status.

What Are The Top Order Management Systems?

There are a lot of OMS options in the market. They include standalone systems developed specifically for order lifecycle management or modules that connect to your existing CRM or ERM. Some popular choices include:

  • Shopify
  • Veeqo
  • Brightpearl
  • Magento
  • ShipStation

Do Restaurants Use Order Management Systems?

Typically restaurants would not need an Order Management System. The exception would be if your restaurant also sells retails products like packaged food or t-shirts. If you sell these types of products through an online store then an OMS might help you streamline the order fulfillment process for these orders. Otherwise, most restaurants would benefit more from a Kitchen Display System (KDS). A KDS has some of the same benefits as an OMS - it helps kitchens increase productivity, improve speed of service, and can enhance the guest experience by communicating order status updates. However, a KDS also include kitchen-specific features designed for food preparation and delivery.

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