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Custom Order Management System

Features, Development Steps, Benefits, Cost

In supply chain software development since 2012, ScienceSoft creates high-performing and scalable order management solutions that enable fast, accurate, and cost-effective customer order processing.

Order Management System Overview - ScienceSoft
Order Management System Overview - ScienceSoft

Order Management System: the Essence

An order management system (OMS) streamlines the entire order processing cycle, from initial order intake to execution control and return management. Such solutions usually support different order fulfillment scenarios, including backorders, drop shipments, buy-online-pickup-in-store, and more.

A custom order management system helps efficiently handle complex and unique order processing flows and can provide AI-based fulfillment optimization.

  • Necessary integrations: selling channels, payment gateways, an accounting system, warehouse management software, transport management software, etc.
  • Implementation time: 7–12+ months for a custom OMS.
  • Development costs: $200,000–$400,000, depending on the solution complexity. Please use our free cost calculator to estimate the budget for your case.

Order Management System: Key Features

Based on ScienceSoft’s experience with OMS projects, we have summarized fundamental features of a robust order management system.

Order processing

  • Automated multichannel order capturing (orders from online and offline sales channels are aggregated within a single interface).
  • Setup of order processing rules (e.g., automated order approval for shipment if the required number of items is in stock and the order is fully paid).
  • Template-based creation of sales orders (e.g., following a customer’s ordering call).
  • Bulk order processing (confirmation, cancellation, etc.).
  • Support of pre-orders and backorders.
  • Notifications on new orders.
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Order fulfillment planning

  • Rule-based prioritization of customer orders for fulfillment based on customer value, product category, order date, service level, and more.
  • AI-based analysis of variables affecting order fulfillment (multi-echelon stock availability, distance to delivery destinations, ordered product type, fulfillment costs, etc.) and suggestions on optimal fulfillment schemes:
    • Optimal order fulfillment locations.
    • Preferred transportation providers for particular item categories and user locations, and more.
    • Optimal orders consolidation or splitting for shipment.
  • Template-based creation of order execution schedules with key milestones like order packing, pickup, arrival at particular points, etc.
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Order execution

  • Order routing to an optimal inventory location for fulfillment.
  • Automated inventory reservation for an order (via integration with inventory and warehouse management software).
  • Analytics-based assignment of an optimal transportation provider to ship the order (in-house fleet or a third-party carrier).
  • Order merging (uniting orders into a single shipment, e.g., when several orders to the same address are placed within a few days).
  • Order splitting into several packages (in case it doesn’t fit into one by weight or size).
  • Generation of picking and packing slips auto-populated with the details from a related sales order.
  • Support of different order delivery methods and types (BOPIS, dropshipping, ship-to-store, ship-from-store, same-day delivery, etc.).
  • Support of partial order fulfillment (e.g., in case one of the ordered items is on backorder or items are at different warehouses).
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Order tracking and adjustment

  • IoT-enabled real-time shipment tracking (the data is shared with customers via digital sales channels, email, and messaging apps).
  • Calculating the expected order delivery time based on the lead time specified by a transportation provider and current order shipment status.
  • Notifications on goods dispatch, shipment milestones, delays, etc.
  • Order modification and cancellation upon a customer’s request (via a selling platform, call center, etc.).
  • A complete history of customer orders (to be leveraged for post-sales support and marketing activities).
  • Order filtering (by customer, date, status, etc.).
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Payment processing

  • Real-time payment processing via a custom payment gateway or third-party gateways (PayPal, Stripe, etc.).
  • Support of multiple payment options, such as credit and debit cards, bank transfers, paying cash upon delivery, gift certificates, split payments, etc.
  • Multi-currency (including cryptocurrency) payments.
  • Notifications to sales managers on received payments.
  • Automated generation and submission of invoices and receipts to customers.
  • Cash refund/chargeback to the customer’s original payment method.
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Return management

  • Setup of return policies to authorize return, exchange and warranty cases.
  • Automated retrieval of related sales order details for return order creation.
  • Calculation of the refund amount based on the return policy.
  • Return order routing (defining where to ship returns).
  • Automated BORIS (buy online return in-store) operations.
  • Setup of return shipping rules.
  • Return status tracking (can be shared with customers as a link via email or a customer portal).
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Analytics and reporting

  • Customizable dashboards showing ongoing and pending orders and customer requests, order fulfillment KPIs (e.g., fill rate), essential customer metrics (AOV, CLV, etc.), and more.
  • Scheduled and ad hoc sales reports (by product, channel, customer), fulfillment reports, customer behavior reports, etc.
  • Trend-based and ML-supported demand forecasting.
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Security and compliance

  • Intelligent detection of fraudulent orders and order fulfillment fraud.
  • Order documentation e-signing.
  • End-to-end audit trail for order management activities.
  • Order, customer, and payment data encryption.
  • Rule-based customer data retention and deletion.
  • Compliance with SOX, PCI DSS, CCPA, GDPR, FAR, Peppol, ZATCA, HIPAA, WTO regulations, and other necessary region- and industry-specific regulations.
  • Multi-factor user authentication.
  • Permission-based access for various user groups, including sales managers, order managers, inventory managers, etc.
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Sample Interfaces of Custom OMS ScienceSoft Creates

Interactive dashboards help track essential ordering KPIs

Order automation software allows customers to track the delivery of their orders in real time

Within the automated ordering system, customers may create return requests for their orders

On the B2B customer self-service portal, the customers can overview issued invoices, view order statuses, search for digital invoices, and more

Automated notifications to the customers on order status changes

The order status is automatically tracked and recorded

Multiple order payment options for customers

If the customer creates several orders, they are automatically merged for shipping convenience

For each customer, an order pick list is generated automatically

For easier order processing and distribution, the system aggregates orders from various sales channels (e.g., a website, a mobile app)

Look to Streamline Your Unique Order Management Tasks?

ScienceSoft is ready to design and build custom order management software that automates specific order processing and fulfillment operations and helps deliver top-notch customer experience.

Important Integrations for Order Management Software

ScienceSoft recommends integrating your OMS with the following systems to establish a cohesive ordering automation environment and speed up order processing and fulfillment:

Important integrations for OMS - ScienceSoft

  • Sales channels (a company's ecommerce website, social networks, third-party marketplaces, PoS, etc.) – to automatically aggregate omnichannel customer orders; to share up-to-date information on order status and location with customers.
  • Payment gateways (e.g., PayPal, Stripe, Amazon Pay, or a custom payment gateway) – to instantly process online customer payments.
  • CRM – to enable centralized recordkeeping of customer information and accurately plan marketing and promo activities taking into account segment-specific demand and customer behavior.
  • Accounting software / ERP – to record customer payment and invoice data in the general ledger, streamline debt collection, ensure timely and accurate revenue recognition and reporting.
  • Inventory and warehouse management software – to have real-time visibility into inventory levels; to easily expedite order picking, packing, and shipping and track the order execution progress.
  • Transportation management software – to accurately plan transport, timely pickup orders at a specified location and deliver them to customer; for facilitated tracking of order shipment progress (for companies relying on in-house order shipping).
  • Systems of shipping carriers (DHL, FedEx, UPS, etc.) – to compare shipping rates and track shipments (for companies that outsource order shipping).
  • A business intelligence tool – to facilitate the analytics and reporting of sales, customers, and order fulfillment insights.

Custom Order Management System vs. Pre-Built OMS

ScienceSoft’s consultants stress that custom development is not a "one-size-fits-all" option, but in some cases, tailor-made OMS may bring a way higher payback than a ready-made tool. Below, we provide a high-level comparison of the two to help you clearly see their strengths and limitations.

Off-the-shelf order management tool

Custom order management system

TCO components

Initial setup costs + customization and integration costs + licensing/subscription fees that scale with the number of OMS users.

Upfront investments + the cost of after-launch support and the evolution of the OMS.

Lower TCO in the long run.

Functionality

Defined by an OMS vendor.

Chances to obtain a large share of unnecessary functionality.

Additional features are restricted to third-party plugins and extensions.

Defined by customers and fully tailored to their needs.

Can cover features that go beyond a typical OMS scope (e.g., inventory optimization or vendor management), as well as features supported by advanced techs (AI/ML, IoT, blockchain, etc.).

Customization

Limited capabilities.

Unlimited capabilities. New features can be introduced on demand.

Integration

API-enabled integration with popular software products. Connection to custom solutions and legacy systems may be complex or impossible.

Seamless integration with all required corporate and third-party systems, including legacy software.

Learning curve

May be steep due to complicated, inconvenient UX and UI.

Short due to convenient UX and intuitive UI tailored to various user roles.

Scalability

Restricted to the vendor’s platform capabilities.

Non-restricted. The system scales instantly to accomodate the demand spikes.

Security

Fully depends on the vendor’s cybersecurity practices and cannot be controlled by the customer.

Minimized security risks due to custom code design and the ability to add advanced security features.

Regulatory compliance

Typically limited to compliance with global data security standards.

Compliance with all the required global, regional, and industry-specific regulations.

Maintenance and support

Performed by an OMS product vendor.

Provided by an in-house team or an outsourced dedicated vendor.

Do You Need Custom Order Management Software?

Answer a few simple questions and find out whether you should opt for a tailor-made OMS.

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You can go with off-the-shelf OMS

Looks like market-available order management solutions are a viable option to meet your needs. Turn to ScienceSoft if you need help with choosing the optimal ready-made tool, its implementation, customization, and integration with your existing systems.

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You definitely should consider custom development

A tailor-made OMS will help you reap the unique benefits that market-available software cannot offer. Turn to ScienceSoft to get the detailed assessment of a custom order management system’s feasibility for your business situation.

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Custom OMS is your best choice

Looks like market-available order management tools don’t fit your specific requirements and won’t be able to provide the expected operational and economic feasibility. Turn to ScienceSoft to get a consultation on custom OMS development and receive cost and ROI estimates

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ScienceSoft’s Business Analyst and Digital Supply Chain Consultant

If you deal with a moderate volume of orders and can go with non-unique UX and UI, consider platform-based development. From our experience, using low-code platforms like Microsoft Power Apps can cut the investments to build an OMS by up to 75%.

How to Develop Order Management Software

Order management software development is a way for companies to obtain a tailored solution that seamlessly automates their unique order aggregation, tracking, and fulfillment workflows. Below, ScienceSoft outlines key steps we take to build a reliable order management system:

1.

Order management system design

Inventory system design

We collaborate closely with your stakeholders to elicit functional and non-functional requirements for an order management system and design a clear software concept. In particular, our experts provide an optimal OMS feature set, create role-specific UX and UI prototypes, design a scalable architecture for your ordering solution, and plan its integrations with the required software and hardware.

ScienceSoft

ScienceSoft

2.

OMS implementation planning

Project planning

Our project managers define the deliverables, scope, and tailored KPIs of OMS development and estimate the resources (team, timelines, budget) required to complete the project. We also prepare a strategy and plan to mitigate any arising risks.

ScienceSoft

ScienceSoft

3.

Development and testing

Development and QA

We write a server-side code of your OMS (including APIs), create user interfaces for the required roles (sales managers, order processing specialists, etc.), and set up secure and scalable storage for customer and order data. If you want to leverage AI-supported order processing, at this stage, our data scientists design and train ML models for demand planning and fulfillment optimization.

Our QA experts perform all necessary testing procedures in parallel with coding to fix any potential issues before production and prevent costly after-launch OMS changes.

ScienceSoft

ScienceSoft

4.

Integration and data migration

Integration and data migration

We integrate your order management software with the required systems and conduct integration testing to enable a smooth and secure connection between the solutions. At this stage, we also migrate sales order data from your currently used OMS or spreadsheets.

ScienceSoft

ScienceSoft

5.

Deployment and employee training

Deployment and pilot run

We configure OMS infrastructure, establish backup and recovery procedures, implement robust network security mechanisms, and set the ready solution live. Our experts deliver all necessary OMS documentation, including user tutorials and admin guides, to facilitate maintenance and streamline adoption.

Our consultants can also conduct employee training in a remote, in-person, or hybrid format to help your specialists involved in order processing quickly learn how to use the new software.

ScienceSoft

ScienceSoft

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Costs of OMS Development

OMS development cost factors include:

  • For custom OMS: the scope and complexity of functionality modules to implement, OMS automation tech stack.
  • For platform-based OMS: the number of users, customization requirements, vendor support terms.
  • OMS availability, scalability, performance, security, and compliance requirements.
  • Complexity of data migration procedures (to transfer data from currently used spreadsheets and/or software).
  • The scope and complexity of integrations (with sales channels, ERP, WMS, etc.).
Pricing Information

From ScienceSoft’s experience, the cost of developing custom order management system ranges from $200,000 to $400,000. OMS payback can be expected within 3 months.

Want to know the cost of your custom ordering solution?

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Learn the Cost of Your Ordering Solution

Answer a few simple questions about your requirements to help our consultants estimate the cost of your custom order management software quicker.

*What is your industry?

*What type of company do you represent?

*What is the expected number of software users?

*How many orders do you plan to process monthly?

*How many organizations do you plan to target with your software, approximately?

*How many end users (individuals from all organizations) will use your software, approximately?

*What capabilities should your OMS provide?

*Should your software provide complex analytics and reporting?

*Which software version do you need?

*Which platforms should your ordering software support?

*Do you have any preferences for the deployment model?

*Are there any compliance requirements for your OMS? Choose all that apply.

*Would you require any integrations?

?

With other back-office solutions, customer-facing apps, vendor systems, third-party payment processing systems, etc.

Do you need to migrate data from legacy software?

*Do you have any tech stack preferences?

?

Particular programming languages, software platforms, cloud services, etc.

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Why Trust OMS Implementation to ScienceSoft

  • Since 2012 in supply chain software development.
  • Practical knowledge of 30+ industries, including retail & ecommerce, manufacturing, healthcare, hospitality, transportation & logistics.
  • Proficiency in advanced techs: AI/ML, big data, IoT, blockchain.
  • Quick project start (1–2 weeks); established Agile and DevOps cultures to ensure quick delivery.
  • Quality-first approach based on an ISO 9001-certified quality management system.
  • Robust security management supported by ISO 27001 certification.

Main Benefits of OMS Solutions We Deliver

  • 70%+

    faster order-to-cash cycle due to order processing automation

  • 5–35%+

    decrease in order processing and fulfillment costs, including labor costs

  • 99%+

    order processing accuracy due to eliminated manual errors

  • Up to 50%

    improvement in customer order lead time due to analytics-based guidance on order fulfillment scenarios

  • Over 10x

    higher order volume a company can process with no additional efforts due to on-demand system scalability

  • Up to 40%

    increase in customer satisfaction due to timely and accurate order fulfillment

Platforms We Recommend for Order Management

If you have standardized order management operations and can go with a general-purpose OOTB tool, ScienceSoft can help you implement and customize one of the following market-leading solutions for order management or any other OMS product of your choice.

Adobe Commerce (Magento) Order Management

Description

Recognized among strong-performing order management software by Forrester. Companies leveraging Magento’s OMS are Brown-Forman Corporation, Rural King, Frankfurt Airport Shopping Mall.

  • Intuitive UI.
  • Support of diverse order fulfillment workflows, including an in-store fulfillment option.
  • BI-powered reporting on orders, shipments, returns, and payments.

Note: OMS is a part of the Adobe Commerce platform offer.

Best for

Midsized and upper-midsized businesses looking for an easy-to-adopt solution.

 

IBM Sterling Order Management

Description

Recognized among leading order management software by Forrester. Renowned clients of IBM’s OMS are Nike, CVS Health, Staples, Polo Ralph Lauren Corporation, and FleetPride, Inc.

  • A powerful rules engine for OMS customization.
  • Support of the whole order life cycle, including after-sales and returns management.

Best for

Enterprise businesses with complex order fulfillment scenarios.

Oracle NetSuite Order Management

Description

Recognized among strong-performing order management software by Forrester. Among companies using NetSuite OMS are Jimmy Jazz, Guthy-Renker, Lovesac.

  • Support of custom system triggers to create business-specific order fulfillment scenarios (can be done directly via UI).
  • Basic reporting capabilities (advanced reporting is available within a separate analytics solution).

Note: OMS is available within the NetSuite platform license.

Best for

Midsized businesses without overcomplicated order fulfillment scenarios.

Choose Your Service Option

ScienceSoft leverages 34 years of experience in software development to deliver scalable, easy-to-use order management solutions, streamlining order processing and fulfillment.

OMS consulting

Our consultants:

  • Analyze your business needs and order fulfillment workflows and define an optimal set of OMS features.
  • Help decide what is more feasible: platform-based or custom OMS.
  • For custom OMS: design a secure and scalable software architecture.
  • Prepare an integration roadmap (with ecommerce platforms, ERP, WMS, shipping systems, etc.).
  • Prepare UX and UI software prototypes (optional).
  • Estimate implementation costs, time budget and expected ROI.
I'm interested

OMS development

Our development team:

  • Elicits OMS implementation requirements.
  • For custom OMS: designs a secure and scalable software architecture.
  • For custom OMS: develops the front end and the back end of OMS.
  • For platform-based OMS: customizes software.
  • Integrates OMS with other systems (ecommerce platform, ERP, WMS, shipping systems, etc.).
  • Covers end-to-end quality assurance of the system.
  • Provides support and software evolution (if required).
I'm interested
About ScienceSoft

About ScienceSoft

ScienceSoft is a global IT consulting and software development company headquartered in McKinney, Texas. Since 2012, we deliver custom and platform-based order management systems to help businesses centralize and improve order processing workflows of any complexity. Being ISO 9001- and ISO 27001-certified, we rely on a mature quality management system and guarantee full security of our customers' data.