Order management is the process through which a business tracks a purchase throughout its entire life cycle, from the initial order to its fulfillment.
The order management process begins when a customer places an order. For online purchases, the business’ system recognizes the order and tracks it as the business identifies the product, packages it, and ships it to the customer. For in-store orders, the system records the purchase and adjusts inventory records accordingly.
Order management systems can also track customer inquiries, returns, or shipping delays — giving the business tools to help manage the fulfillment workflow and answer customer questions.
This process is especially important for businesses with high-volume sales, as it allows them to stay organized and keep track of multiple operational pieces of their inventory management system at once.
It can also help reduce human error on order processing, free up humans to focus on customer service, and give the business data they can use to better serve their customers and streamline their operations.