One of the most complex and confusing differences to explain in the supply chain industry is the difference between an OMS and DOM. Why?
This is due to the fact that they are each referred to as their own separate inventory management system. You cannot have a distributed order management (DOM) system without an order management system (OMS). Let’s break down common misconceptions and find the simplest way to explain the difference between the two.
The simplest breakdown of the difference between an OMS and DOM is this:
- An Order Management System (OMS) is the system that manages and tracks the entire order process.
- Distributed Order Management (DOM) is an advanced portion of that system that allocates order fulfillment to the most optimal location.
In the description above we can see where DOM fits into the order management process. The order management process starts with receiving an order. The second step with the location icon is when the order is fulfilled by the warehouse (this is where DOM comes in). The third step is order delivery. Distributed order management software optimizes the second step in the OMS process. Optimization occurs when looking at each location and seeing what inventory is on hand.
Let’s say we have two locations and three different types of shirts (black, orange, and grey). If I needed the orange shirt for an order, I would want to fulfill it from the smaller location icon since only the grey is available in the larger icon’s inventory.
Are there OMS systems without DOM?
Yes, in fact, most legacy or on-premise systems do not have DOM capabilities or very limited functionality for order distribution. An OMS system without DOM capabilities would process the orders through manual selections created by the user. Therefore, an order management system as a whole manages the entire order process from sales processing, order entry, pricing and credit card validation, as well as inventory management to invoice allocation.
How does DOM help?
DOM allocates orders automatically and optimally, reducing human error and decision-making for every order. Preset routing and automated picking and packing also reduce or eliminate safety hazards in the warehouse, keeping your workers safe and your workplace compliant with safety standards and regulations, as well as avoiding disruptions to workflows.
One of the biggest benefits of a DOM is the amount of customization users have when configuring their system. With DOM, businesses send orders for fulfillment by rules-based automation set at a specific location. So you can create the best policies and protocols for each unique warehouse.
For example, these rules could be the lowest shipping cost, the location where all items are in stock, or the fastest delivery to the customer. DOM software routes multi-item orders for distribution to multiple locations optimally.
Legacy OMS systems just can’t keep up with the rapid-fire pace of today’s consumer demands. Premium features like same-day shipping, online ordering, and multi-channel fulfillment have become standard, if not necessary, to stay competitive and prioritize customer convenience. Many DOM systems also allow WMS software integrations with other software solutions, so you can adapt and expand your operations as needed without losing access to the required tools and data.
Why do some companies just reference DOM without OMS?
Many companies refer to their OMS purely by DOM. This occurs when confusion exists between the two. As stated earlier, DOM is the optimized fulfillment portion of the OMS which manages and tracks the entire order process. Now we know OMS can exist without DOM functionality. Many companies refer to OMS purely by DOM to highlight that they have the advanced portion of the order management system.
What about Deposco?
Bright Order is Deposco’s cloud-based order management system that automates DOM capabilities, offers third-party logistics (3PL) billing, and much more.
The solution integrates sourcing and fulfillment from warehouses, 3PL providers, external supply chain partners, and retail stores based on real-time inventory, demand, and location.
Bright Order works seamlessly with Bright Warehouse WMS, in addition to integrating with financial (ERP) systems, homegrown systems, and other supply chain management software. Contact us to see how Bright Order can help you when It’s Grow Time!