What is Distributed Order Management (DOM)?

What is Distributed Order Management (DOM)?

5 min read
David Field
David FieldCustomer Success Expert
Distributed Order Management

Distributed order management uses rule-based methods to assist retailers in achieving customer expectations while keeping costs reasonable. These two limitations are frequently pitted against one another. For instance, you may delight the consumer, but the delivery charges exceed the product's price. On the other hand, if you don't offer two-day shipping, you risk losing a customer to Amazon. Consumers want to buy a product through many channels, switch platforms, and even order online immediately from within a store and have it fulfilled in a way that is convenient for them. Ecommerce platforms and physical stores must collaborate. It's critical to combine multiple platforms without affecting the client experience.

By automating critical operations, DOM systems help to improve supply chain kinks. They are: 

Brands are being driven to adapt quickly as e-commerce technology evolves with social media, apps, and third-party retail platforms. That can make inventory management more difficult, necessitating the need for backend technology that allows brands to meet this expectation flexibly, cost-effectively, and efficiently. A DOM system gives brands the tools to perform excellent customer service while also increasing brand trust and happiness.

How does Distributed Order Management help?

DOM automatically and optimally allocates every order, avoiding human error or decision-making. Businesses use DOM to route orders to a specific location for fulfillment using rule-based automation. The lowest shipping cost, the location where all items are in stock, or the quickest delivery to the consumer are examples of these rules. Multi-item orders are routed through DOM for distribution to numerous locations.

DOM systems are used for a variety of reasons, including: 

These capabilities, taken together, provide your customers more freedom over when and where they buy while also allowing you to track their engagement and connect the dots if they buy from a new channel each time.

The advantages of implementing a Distributed Order Management system 

The advantages of implementing a Distributed Order Management system 

The benefits of DOM are apparent: it lowers fulfillment costs and increases margins by routing each order to the most cost-effective fulfillment alternative. However, there are a few benefits to using a DOM solution that is less clearly evident:

Order fulfillment can be jeopardized if inventory and cost management are poor. Profits will slow as a result of being out of stock. A distributed order management system can help overcome this challenge. It becomes much easier to predict and react to unforeseen circumstances by combining your total view of inventories and suppliers. You have significantly more control over delivering your consumers what they need when needed if you can track inventories across numerous channels.

Cloud-based distributed order management solutions are available. That provides the framework for brands to grow. Because of the cloud nature, updates to the DOM system are immediately available to clients without disrupting service. It also allows users to log into the system from any computer, allowing data to be viewed by any team member.

That also delivers a network-based solution that improves data processing, performance monitoring, and business plan execution. It becomes easier to review and analyze more intelligent predictions, and automation can further speed up the process.

It becomes significantly more manageable and more controllable by implementing a central hub with the capabilities to handle all order fulfillment. Split orders are also possible with distributed order management, lowering shipping and fulfillment costs across all channels. That enables more specified workflows and detailed results monitoring.

Distributed order management allows disparate sales channels and systems to be united significantly more successfully. Even when numerous channels and specific store/warehouse locations are considered, inventory procurement becomes considerably more manageable. That guarantees that fulfillment data is precise and accurate. If you utilize a legacy OMS, you'll have to juggle various systems, delaying down updates and giving you a distorted picture of real-time inventory status.

More worldwide inventory visibility will be possible thanks to distributed order management apps. Consumers will be able to order and receive products from anywhere if your overseas warehouses and 3PLs are connected to your system.

The LEAFIO AI Retail Platform provides comprehensive, agile, and adaptable automation solutions that help them achieve margin and revenue development through inventory optimization, merchandising management and trade promotion forecasts.

We add value to the business by:

We offer organizations full-cycle services, including business process consulting, software integration, staff training, piloting, and dedicated customer success at the most effective possible price.

Do you require Distributed Order Management?

A distributed order management system has become the new standard in terms of retail management. But how can you know when DOM is appropriate? It depends on where you are in your business and where the most friction exists. There are a few signs that you need DOM:

A growing SKU portfolio

Managing 20-30 SKUs via spreadsheets is manageable, but as the number of SKUs reaches the hundreds or thousands, it may rapidly become a headache. Distributed order management enables you to closely check these products and the channels via which they are made available.

Growth potential, but a single data hub is missing

It will be more challenging to grow a fragmented business. If you're having trouble getting ahold of your data, it might be time to look at distributed order management systems.

A large number of product providers

The more suppliers you work with, the more difficult it will be to manage relationships, track vendor product data and determine how many units to order. Distributed order management solutions can assist you in organizing this data and keeping track of how and when you order from your providers.

A multi-warehouse structure

Managing inventories in more than two warehouses have become progressively complex. DOMs may combine this information, providing you a bird's-eye view of your inventory and instant access to 3PL inventory.

Unconnected consumer solutions and/or software

The concept of omnichannel retail revolves around seamless connectivity. That experience could be jeopardized if your software isn't up to date. By bringing all of your processes together, distributed order management prioritizes this.

As a result, the DOM aims to organize and improve the client order fulfillment process by handling these restrictions without choosing between them.

David Field
David FieldCustomer Success Expert

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