Order Management System (OMS) in Freight Logistics

Order Management System (OMS) is a tool that helps manage the inventory, customers, and shipping process. It is used across all industries but is more popular in transportation as it helps streamline the order fulfillment process.

What is Order Management System?

An Order Management System, or OMS, is advanced software to help manage orders for fast and efficient processing. It also helps manage customer data across various channels and locations.

The main function of OMS is to manage orders from various sources and combine them into a single master record. This system also provides an interface between different business units, such as sales, operations, and logistics, to ensure that each party shares the same information about each order at every stage of its lifecycle.

OMS provides integration & automation

Order management systems (OMS) are becoming increasingly important in the freight logistics industry. OMS can provide integration and automation of your various systems to create a single source of truth. This will enable you to connect your ERP system, CRM system, WMS/WCRM system, and other systems in an automated fashion.

In addition to connecting systems through the cloud, OMS can also connect different internal departments within your organization by automating processes between them via workflow management.

Enables easy customer data management

OMS enables easy customer data management. Here is how:

  • Customers can be classified based on location, type, role, and value.
  • Customer data can be stored in any format, and customer information can be added, modified, or deleted anytime.
  • Data can be exported and imported per the requirements of different business processes.
  • Data can be accessed from multiple locations, allowing for efficient operations across various departments within an organization and with third-party service providers such as freight forwarders or customs agents.

Helps in tracking inventory & customers

Order management systems help in tracking inventory and customers. They also help manage customer data across various channels and locations, managing orders from various sources and combining them into a single master record, streamlining the process of order fulfillment.

Streamlines the process for order fulfillment

Order management systems (OMS) are advanced software that helps streamline the order fulfillment process. The OMS helps manage orders from various sources and combine them into a single master record, making it easier for the customers to track their orders.

The system also helps in tracking inventory & customers so that no stock can be overstocked or understocked. It also provides real-time updates about all incoming deliveries and allows you to schedule pick-ups for future delivery dates based on availability and location.

Implementation requires a large amount of personnel and time

Implementation of an OMS is a time-intensive, resource-intensive process. It requires a large number of personnel and resources. The logistics team must devote itself to the system until it’s fully implemented. This can take many months or even years, depending on the size and complexity of the project.

The implementation process also requires patience because it may be difficult to see the benefits immediately. And while implementing an OMS is undoubtedly beneficial for future operations, there may be some costs associated with building up inventory before this process can begin.

Integrating Data is a complex task

Integrating data is one of the most complex tasks in logistic management. It requires a large amount of personnel and time. In fact, according to research by DHL Express, over $1 million per year can be spent on data integration for each company with more than 5,000 users.

The first step in integration is choosing a method that fits your organization’s needs. If it’s done manually, there will be many errors along the way. However, using automated tools will speed up the process but still require someone with knowledge of how they work to implement them effectively.

Training is required on a regular basisĀ 

An OMS is highly advanced software that requires regular training for its users to keep up with the latest features and functionalities. Training helps you to improve your efficiency by learning new ways of doing things. It improves your productivity by enabling you to work faster and more accurately, and it reduces errors by teaching correct procedures for completing various tasks. Finally, it maintains consistency among all users by providing them with an agreed-upon way of doing things.


The benefits of an Order Management System are enormous, and the ROI can be realized in a short span of time. However, this is also a complex system that needs continuous maintenance and training to keep users updated with new features. Having a good team that can handle all aspects of OMS implementation efficiently without compromising on quality is critical.