Order Management Systems – The unsung hero of retail success

Today’s customer expects everything: instant availability, accurate stock information, and delivery options that fit their life—not the retailer’s constraints. Behind the scenes, one technology makes this complexity manageable and scalable: the Order Management System (OMS). 

Alongside unified commerce, Order Management Systems (OMS) have emerged as the quiet force behind some of the most admired retail experiences. These systems, once viewed as backend infrastructure, are now proving to be strategic enablers powering flexible fulfilment, reducing carbon footprints, and delivering the convenience today’s shoppers expect. 

The modern retail journey is anything but linear. A customer might browse online, purchase via app, pick up in-store, and initiate a return through a third-party locker. Behind the scenes, an OMS is working overtime to ensure that journey is seamless by allocating stock, synchronizing channels, and keeping promises. 

In 2025, customers don’t just want speed. They want precision. They want to know if a product is available now, where it can be picked up, how soon it can be delivered, and whether they can return it conveniently. And they expect all this without friction. A robust OMS turns that complexity into clarity, orchestrating the flow of inventory, orders, and data in real time.

“The modern retail journey is anything but linear. A customer might browse online, purchase via app, pick up in-store, and initiate a return through a third-party locker.”

But it’s not just about customer satisfaction, it’s also about operational agility. OMS platforms help retailers adapt to disruptions in supply chains, labour, and demand by making inventory more visible and actionable. Rather than stock sitting idle in a warehouse or store shelf, an OMS can route that product dynamically by reducing markdowns and increasing profitability. 

OMS also plays a pivotal role in reducing environmental impact. Smarter fulfilment decisions mean fewer shipments, shorter routes, and lower emissions. By enabling returns to be consolidated or restocked locally, OMS helps retailers cut waste and cost at once. The increase of carbon-aware fulfilment logic, where the system prioritises greener delivery methods is also becoming a standard feature in OMS implementations. 

Retailers like Nordstrom, Decathlon, and REI are already reaping the benefits. Nordstrom’s ability to offer flexible pickup and high touch returns hinges on OMS agility. Decathlon uses OMS data to avoid overproduction and manage inventory with sustainability in mind. REI connects stores, warehouses, and third-party partners through one orchestration layer, reducing last-mile emissions and improving service. 

The power of OMS lies not just in logistics, but in experience. When customers trust the information they see online, when they can change their delivery method mid-journey, or when a return takes seconds instead of days - they remember it. These moments, orchestrated quietly by OMS, shape brand perception more than most advertising ever could. 

For many retailers, OMS implementation used to be a daunting IT project. In 2025, it’s a business transformation. It requires collaboration between operations, digital, sustainability, and customer service teams. But when done right, it becomes a growth engine.

The retailer payoff: Financial and operational gains from OMS 

While customer convenience often headlines the value of an OMS, the real return for retailers lies in operational and financial impact. A modern OMS does more than orchestrate orders—it unlocks capital, reduces waste, and sharpens the efficiency of the entire retail engine. 

Freeing up working capital is one of the most immediate gains. By providing real-time visibility across all stock locations and enabling dynamic fulfilment, retailers no longer need to hold excess inventory “just in case”. Inventory can be balanced across stores, warehouses, and suppliers with precision, reducing the need for safety stock and freeing up cash that can be reinvested elsewhere in the business. 

Markdown reduction is another major benefit. Idle inventory in one location can be surfaced to online channels or redirected to high-demand areas before it ages out. Rather than reactive discounting, OMS enables proactive stock movement, minimising margin erosion and clearing seasonal goods on time. 

Customer service costs also decrease. With better order transparency and real-time tracking, fewer customers contact support for status updates, missed deliveries, or return issues. Staff across channels— store, online, call centre—can access the same order data, enabling faster resolution and higher firstcontact resolution rates. 

Returns orchestration not only improves the customer experience but reduces internal handling costs by optimising restock logic and consolidating shipments. This has direct implications on reverse logistics budgets and resell potential.

Not all retailers benefit equally—retailers with high SKU counts, complex fulfilment flows, global growth and fluctuating demand patterns do see an extra need. OMS provides them with the agility to adapt stock to where demand is peaking, especially during seasonal spikes or promotional periods. For pharmacies, where availability and speed are critical, OMS enables safe, compliant, cost efficient and reliable delivery from the most suitable source.

In essence, OMS shifts fulfilment from a cost centre to a profit lever. For retailers navigating thin margins, fragmented demand, and rising service expectations, it’s no longer a nice-to-have—it’s a financial imperative. 

Why it matters more than ever 

Retailers can’t afford to let back-end inefficiencies dictate the customer experience or miss their sustainability targets. Without a robust OMS, even the best-designed ecommerce site or in-store experience can fall apart post-click. 

With the growth in marketplace models, distributed inventory, and hybrid customer journeys, agility is no longer optional. OMS is the digital backbone that enables retailers to flex with the market, minimise waste, and deliver on the promises made at checkout. As retail evolves from multichannel to truly unified commerce, OMS has become a business-critical enabler. And in 2025, it’s one of the strongest levers to balance profitability, flexibility, and sustainability.

Retailers face growing pressure from all angles: 

• Higher customer expectations around availability, delivery speed, and flexibility
• The rise in returns, which now account for up to 30% of all online purchases
• Sustainability demands, including emissions tracking, smarter fulfilment, and reverse logistics
• Increased costs and fragmentation across warehousing, 3PLs, and stores
• Demand for omnichannel excellence where digital promises must match physical performance
• An advanced OMS helps retailers stay competitive by creating a unified view of inventory and intelligently managing order routing across every channel.

Key business values of a modern OMS 

Unified inventory visibility: Know exactly what’s available, where, and when—across stores, warehouses, dark stores, and suppliers. This empowers better selling decisions and reduces overselling and stockouts. 

Flexible fulfilment: Enable ship-from-store, click-andcollect, curb side pickup, drop shipping, and split shipments—all while optimising for cost, speed, or environmental impact. 

Returns orchestration: Simplify reverse logistics while reducing emissions, accelerating refunds, and increasing the resale or restock rates of returned items. 

Customer service empowerment: Provide real-time order tracking, fulfilment transparency, and order status resolution across all channels—allowing staff to serve customers faster and smarter. 

Data-driven operations: Gain continuous insights from orders, fulfilment, and returns to optimise logistics, staffing, and assortment strategies in near real-time.

Don’t overlook the sustainability factor 

Returns and fulfilment are now among the biggest contributors to retail’s environmental footprint. OMS can help drive meaningful change: 

• Smart routing: Route orders to the closest fulfilment point to reduce last-mile delivery emissions.
• Bundled returns: Combine return shipments or restock products locally to reduce waste and transport.
• Carbon-aware logic: Prioritize eco-friendly delivery options at checkout, powered by real-time CO₂ scoring.
• Circular economy: Support recommerce platforms and in-store drop-off points for pre-loved or repaired goods.

Best-in-class retailers

Nordstrom - Has long focused on premium fulfilment. Its OMS supports flexible delivery and high-touch returns—crucial for maintaining its luxury reputation.

Decathlon - Leverages OMS insights for better demand planning, stock balancing, and reducing deadstock.

Zalando - Integrates its OMS with its sustainability engine, offering customers the greenest shipping option at checkout and optimising the return loop

Rei - Powers local fulfilment from stores, dark warehouses, and third-party partners—all seamlessly stitched together via its OMS.

Mango - Uses OMS to streamline its click-and-collect service and optimise cross-border order flows from a central platform.

Final thought 

Operational glue that drives growth Order Management Systems may not be flashy, but they are foundational. In 2025, they are to be seen as the operational glue that connects every part of a seamless, sustainable, and profitable retail journey. Retailers that master OMS aren’t just improving efficiency — they’re protecting brand trust, unlocking new experiences, and adapting faster than competitors. In a year where customer expectations are higher than ever, OMS is your engine of resilience.