OMS and POS
Vocabulary
System Types
System
ERP
CRM
OMS
WMS
POS
Purpose
Full business integration across all functions
Focuses on managing customer relationships
Handles order tracking and fulfillment
Manages warehouse operations
In-store sales and transactions
What is OMS
An order management system (OMS) is a software platform designed to help businesses manage and track the entire lifecycle of their orders. The system integrates with various sales channels, such as e-commerce websites, marketplaces, point-of-sale systems, and more, to automate and streamline order processing and fulfillment.
Key Vocabulary
the entire journey of a product or order — from its beginning to its end.
in an OMS system means linking it with other software tools (like e-commerce platforms, payment systems etc.) so they can share data automatically and smoothly.
the ability to set up automatic workflows that handle routine order management tasks.
optimize workflows so that orders move from placement to delivery with minimal effort or delay.
transforms a customer’s order into a delivered product, through verification, picking, packing, shipping and updating status.
A stage in the order lifecycle where the products are picked, packed, and shipped to the customer.
Product Lifecycle
Customer Lifecycle
-- Client side, marketing etc --
Oder Lifecycle
Integration with OMS
E- Commerce
buying and selling of goods or services over the internet.
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Online Storefront – A website or app where products/services are listed.
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Shopping Cart – Tool that lets customers collect and manage items they want to buy.
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Payment Gateway – Secure system to process payments.
Examples: Amazon, Etsy, eBay, Shopify
Benefits:
Global Reach
24/7 Availability
Scalable
Low Overhead Costs
Inventory Management System (IMS)
track, manage and organize inventory.
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Real-Time Inventory Tracking: Monitor how much stock you have and where it is located.
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Stock Replenishment: Set reorder points so you’re notified or auto-restocked when inventory runs low.
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Barcode/RFID Integration: Scan and track items during receiving, stocking and shipping.
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Inventory Valuation & Cost: Helps track product costs using methods like FIFO (First-In, First-Out) or weighted average.
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Multi-Channel Sync: Syncs inventory across online stores, physical stores, and marketplaces.
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Reporting & Forecasting: Generate reports on stock movement, aging inventory and predict future demand.
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Returns Management: Keeps track of returns and reintroduces them to stock.
Importance - ensures that the right products are available at the right time, in the right quantity, and at the right place.
ERP (Enterprise Resource Planning)
An ERP system is a centralized platform that helps companies plan, manage, and automate their operations, so different departments work together using the same data and processes.
Uses:
- Centralized data across the business
- Improved accuracy and reporting
- Time savings through automation
- Better collaboration between departments
- Scalability as your business grows
- Compliance support with local laws and industry regulations
Challenges of ERP:
- High initial cost
- Time to implement and train teams
- Requires organizational change
- Needs tech support or IT team
Labeling and Shipping VOcabulary
| Shipping Label | A label placed on the package containing essential delivery info. |
| Barcode | A machine-readable code that stores data. |
| QR Code | A type of barcode, often used by mobile devices. |
| SKU (Stock Keeping Unit) | A unique code assigned to each product to track inventory. |
| UPC (Universal Product Code) | A standard barcode used globally to identify a product. |
| Return Label | A preprinted label included with the shipment in case the customer wants to return the product. |
cont.
Labeling and Shipping VOcabulary
| Carrier | The company that transports the goods. |
| Freight | Goods transported in bulk. |
| Shipping Rate | The cost of transporting a package, calculated by weight, dimensions, and distance. |
| Tracking Number | A unique code used to follow a package’s shipping. |
| Shipping Method | The type of delivery service used (e.g. overnight) |
| Lead Time | The total time from order placement to delivery. |
| Drop Shipping | A method for shipping directly from the supplier. |
| Third-Party Logistics (3PL) | Companies that handle storage, packing, and shipping on behalf of a retailer. |
| Bill of Lading (BOL) | A legal document between the shipper and the carrier that details the goods being shipped. |
| Proof of Delivery (POD) | Documentation confirming that the shipment was delivered and received. |
Payment Gateways
service that authorizes and processes payments when a customer buys something online or in-person.
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Encrypts the customer's payment info (PCI DSS Compliance)
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Verifies availability of funds
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Returns approval or denial
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Confirms the transaction (to both the merchant and the customer.)
Examples: PayPal, Google Pay, Square, Stripe.
PCI DSS Compliance stands for Payment Card Industry Data Security Standard.
A set of security standards designed to ensure that any company that accepts, processes, stores, or transmits credit card information does so in a secure environment.
CRM (Customer Relationship Management)
system or method used to manage a company’s interactions with current and potential customers, helping improve relationships, streamline processes, and boost sales.
| Contact Management | Stores details like names, emails, phone numbers, purchase history |
| Lead Management | Tracks potential sales leads |
| Sales Tracking | Monitors deals, revenue, and sales performance |
| Marketing Automation | Sends emails, schedules campaigns, tracks engagement |
| Customer Support | Records service tickets, responses, and follow-ups |
| Analytics & Reporting | Provides insights on customer behavior and business performance |
Vocabulary extra
Receive vs. Retrieve
Sync real-time stock levels
RFID stands for Radio Frequency Identification
Low / High overhead costs or
initial costs
Intuitive transition or onboarding
Logistics Providers / Carriers
SKU (pronounced "skew")
Lifecycle
Streamline
Fulfillment
Scalability
Implement
Integration
Compliance
Practice Scenario
I am the CEO of Blue Denim Co., a global company that designs, manufactures, and sells jeans through physical stores, e-commerce, and third-party marketplaces.
Here's what you know about them:
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They have 50+ stores across the country.
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They’ve recently expanded their e-commerce operations.
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They frequently run promotions and flash sales, which have caused stockouts and shipping delays.
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They use separate systems for physical stores, warehouse, and online orders, leading to inventory visibility issues.
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They are interested in digital transformation, but are cautious about ROI.
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“How will your system help me prevent overselling during sales events?”
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“What kind of reporting or visibility can it give me?”
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“We have a lot of returns — can your OMS help manage them better?”
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“What’s the onboarding and training process like?”
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“How do I know this investment will pay off?”
CEO Questions
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“Can your OMS integrate with our existing ERP, e-commerce platform, and warehouse systems?”
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“How is data synced across systems — is it real-time or batch-based?”
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“Is your system cloud-based or on-premise? (or on-site)
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“How do you handle security and compliance?”
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“How do you handle user access control and roles?”
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“Is there technical documentation or a sandbox environment for testing?”
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“How do updates and maintenance work — are they automatic?”
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“What support do you offer for integration and post-go-live?”