SaaS Order Management Systems - Transitioning to the New Default
In our previous post, "Omnichannel Order Management - Solving Today's Challenges"
we broke down how the omnichannel imperative is creating a wave of change in retail strategy, as it impacts almost every area of the traditional retail model. The new demands of omnichannel – consistency, accessibility, availability, fulfillment and pricing, among others – have led retailers to look for areas of resistance that their current models present. Not surprisingly, almost all have made the decision to undertake a transition from clunky and inefficient on-premise order management technology to a cloud-based Order Management System (OMS). This transition delivers the right product at the right time and right price for the consumer and the retailer. With cloud becoming the default OMS technology choice, the real challenge for businesses is to make the transition without interrupting their consumer-facing interactions. In the same Forrester study we referenced in the last post, survey respondents were clear about the opportunity that SaaS Order Management Systems provide and the broad business benefits it has for their businesses.
On-Premise OMS: High Costs & Limited Functionality
The cost of licensing and maintaining in-house systems were easily the two most acknowledged factors for ditching on-premise OMS, as measured by total mentions in respondents’ top three motivators. But spending less doesn’t do anyone any good if the features and functionality of a new service can’t match the power of what they have on-site. Resources, time and expertise are critical for maintaining cutting-edge systems, and most retailers simply don’t have that in-house. Given that, we found the inability to keep up with upgrades as the prime motivator, above any other single factor that drove the switch. Similarly, limited features and functionality and a lack of sufficient integrations with other technologies were the biggest problems with traditional in-house systems. The complexity of constantly managing increasingly technical and feature-laden systems across the business has led to over a quarter of the retailers polled to prioritize SaaS whenever possible, investing in proprietary technology only when no suitable service exists on the market.
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Managing the complexities of Omnichannel Order Fulfillment
Tangible Business Impacts From a SaaS-Based OMS
When it comes to making radical change and investing in new technology, retail has traditionally been a slow-to-react and risk-averse industry. But once benefits start showing big dollar signs, the game changes. In fact, when it comes to SaaS Order Management Systems, 62% of retailers surveyed have experienced or expect improvements across 11 critical metrics including better sales figures, faster time-to-ship and greater order fill rate. Seventy-one percent, 69% and 67% of respondents said they saw or expect boosts to these respective measures thanks to their switch to SaaS-based OMS. From a customer loyalty and employee satisfaction standpoint—the people parts of business—at least half of respondents see gains in satisfaction feedback. SaaS simply makes things work better, which makes people happy.
Obstacles Before Adopting a SaaS Order Management System
Engaging in an entire re-platforming of a system as critical and customer-facing as order management comes with its own set of natural barriers. When asked what prevents them from making the leap, survey respondents highlighted contending with data security and compliance requirements, which, depending on your relationship with your provider and the protections they have in place, can become much less of an issue. Tellingly, less than a quarter thought they would lose control or end up spending more by making the switch. Similarly, scalability is a minimal fear, namely because SaaS is the ultimate method to make sure your technology tools grow with your business and adapt in real-time to market and demand pressures. SaaS is the future of order management
. Whether you’re ready to migrate today is less important than your willingness to review its pros and cons in earnest and set a plan for where your OMS is going over the next few years. About OrderDynamics Solutions: SaaS Order Management