What is Order Management Software?

Managing customer orders across multiple channels, like eCommerce websites, physical stores, mobile apps, and marketplaces, can quickly become complex. From the moment a customer places an order to the point it's delivered or returned, there are dozens of moving parts: inventory checks, order routing, payment processing, shipping, and more.

This is where Order Management Software (OMS) comes in. It acts as the central system that connects sales, fulfillment, and customer service, ensuring that every order is processed accurately, delivered efficiently, and tracked throughout its lifecycle.

In this blog, we’ll break down what an OMS is, how it works, what modules it typically includes, and what features to look for when choosing one. Whether you’re scaling your retail business or looking to streamline operations, understanding OMS is a crucial step toward operational efficiency and better customer experiences.

What is Order Management Software?

Modules of Order Management Software

Order management software is typically composed of several modules that manage different stages of the order lifecycle. The key modules of order management software include Order Orchestration, Customer Service, Enterprise Inventory Availability & Visibility, Reporting & Analytics, and Returns & Reverse Logistics. Below, we describe the functions of each module in detail.:

1. Order Orchestration
   Order Orchestration refers to managing the complete lifecycle of an order, from capture to delivery, by coordinating various steps like the following:
   
   
   1. Order Capture
      Order Capture is the first step in the order lifecycle, where the OMS downloads orders from eCommerce websites, POS systems, and marketplaces. These orders are automatically recorded into a centralized system, triggering downstream processes. Consolidating order data from multiple sales channels ensures accuracy, faster processing, and improved visibility for all subsequent stages.
      
      
   2. Order Routing & Inventory Allocation
      Once the order is captured, the OMS intelligently assigns it to the most suitable fulfillment location, whether a store, warehouse, or third-party logistics provider, based on rules such as proximity, stock availability, delivery method, and operational constraints.
      
      Routing logic can be customized to factor in seasonal peaks, promotional offers, or inventory disruptions. If one node is temporarily unavailable, for example, the OMS automatically reroutes the order to an alternate node, ensuring a seamless customer experience.
      
      
   3. Order Fulfillment
      In warehouse-based fulfillment, a dedicated Warehouse Management System (WMS) typically handles pick-pack-ship operations. The OMS receives fulfillment status updates from the WMS and communicates them to the eCommerce platform.
      
      For store-based fulfillment, the OMS takes full ownership of the process—integrating with 3PLs and shipping carriers, and coordinating order handoffs between systems to ensure efficient delivery. It covers:
      1. Store Fulfillment
         The OMS enables workflows to leverage local store inventory to fulfill online orders, supporting use cases like BOPIS and Ship-from-Store. It provides mobile-enabled tools to pick, pack, generate labels, and ship orders, thereby helping to reduce fulfillment costs and delivery times.
         
         
      2. Sync Order Status to eCommerce
         At each stage, from order approval to shipment, the OMS updates the order status in real time and syncs it back to the eCommerce system. This ensures accurate customer notifications and visibility across systems.
      
      
      
2. Customer Service
   An OMS provides built-in customer service tools to manage post-order activities such as finding, editing, or canceling orders. With centralized access to customer and order history, agents can handle queries from any channel—online, in-store, or call centers.
   1. Find Order / Check Status
      Customer service teams can search for any order by ID, customer name, or contact details and instantly retrieve real-time order statuses.
      
      
   2. Edit Order
      Agents can modify order details such as shipping address or item quantity. These changes automatically trigger inventory and payment adjustments.
      
      
   3. Cancel Order
      Orders can be canceled within OMS-defined business rules. When an order is canceled, the OMS ensures that inventory is deallocated and refunds are initiated as required.
      
      
3. Enterprise Inventory Availability Visibility
   An OMS serves as the enterprise inventory broker by consolidating inventory data from multiple backend systems to provide a single source of truth.
   1. Integration with ERP, WMS, POS
      The OMS connects with ERP systems, WMS, and POS platforms to retrieve and sync accurate stock information across the enterprise. Inventory feeds from these systems are processed in near real time, allowing the OMS to surface only truly available inventory.
      
      
   2. Store Inventory Management
      OMS modules also support basic inventory operations at the store level:
      1. Receiving – Record and accept incoming stock at the store.
      2. Cycle Count – Perform regular stock audits to detect discrepancies.
      3. Manage Safety Stocks – Define safety thresholds to prevent stockouts.
         
         
   3. Sync Inventory to eCommerce
      Once inventory data is consolidated, the OMS syncs available stock to eCommerce platforms, enabling accurate product availability, back-in-stock messaging, and order promising.
      
      
4. Reporting and Analytics
   Modern OMS platforms include built-in dashboards and customizable reports that offer visibility into sales, fulfillment performance, order statuses, and returns.
   
   These insights help retailers monitor key KPIs such as order volume, Service Level Agreement (SLA) compliance, and return rates; identify bottlenecks in routing or fulfillment; and make informed decisions to improve operational efficiency and customer experience.
   
   
5. Returns & Reverse Logistics
   Enterprises often use dedicated returns management software to handle product returns, refund calculations, and processing. The OMS acts as a mediator between the returns system and the eCommerce platform, syncing return status, refund updates, and inventory restocking details.

How to Choose an Order Management Software?

Choosing the right order management system can be challenging, especially for small and medium-sized businesses. While the most obvious reason for adopting an order management system is more streamlined and efficient order processing, each business will also have their own particular requirements to take into consideration when looking at different systems.

Whatever your particular business needs may be, here are some factors to consider:

1. Integration Capabilities
   Choose a system that includes pre-built integrations with most tools in your existing tech stack—such as ERP, eCommerce, WMS, or shipping providers. This reduces the time and effort required to build new connections from scratch. A system that enables easy API-based integrations allows real-time data flow between systems, reduces manual work, and ensures seamless order visibility across operations. In contrast, selecting a system without pre-built integrations can delay your go-live timeline and lead to disruptions during the integration phase.
   
   
2. Fast Deployment & Go-Live Timeline
   Choose a solution that fits your IT environment, cloud-based or on-premise, and allows for a rapid, phased rollout. A benchmark of 90 days for a minimum viable deployment is a good standard. Faster deployment enables quicker time-to-value and helps retailers respond to market changes without long delays or project fatigue.
   
   
3. Maintenance & Support
   Choose a system where responsibilities for maintenance, updates, and fixes are clearly defined. Vendor-managed or community-supported platforms with well-documented processes can reduce your internal IT burden. Check for available SLAs, support channels, and response times to ensure your team isn’t left stranded during critical operations.
   
   
4. Gap Analysis & Customization
   Conduct a gap analysis to identify the features missing from your shortlisted OMS. Then evaluate how well the system supports configuration or customization to fill those gaps. Choose a platform that allows both rule-based setup and deeper customizations. If minimal configuration works for your business, an out-of-the-box system may be enough. 
   
   However, if your operations are complex or frequently change due to promotions, seasonality, or market demands, opt for a system that offers extensive customization capabilities.
   
   
5. Scalability & Performance
   Choose a system that can scale with your business growth without slowing down during peak periods. Ask about tested order volumes and concurrent transaction support. Whether you're operating with 10 orders a day or 10,000, the system should deliver consistent performance and uptime under pressure.
   
   
6. Cost Structure & Licensing
   Choose a system with a clear and predictable pricing model—whether it's fixed-fee, usage-based, revenue-sharing, or a hybrid. Make sure to verify what’s included in the base license (e.g., support, upgrades, integrations) so you can estimate the true total cost of ownership.
   
   Also consider whether an open-source platform or a proprietary SaaS solution makes more sense for your business. While open-source solutions offer lower upfront licensing costs and greater control, they may require more internal development resources. Proprietary systems, on the other hand, may include maintenance and support but come with recurring costs. This trade-off is discussed in detail below.
   
   
7. Vendor Track Record
   Choose a vendor—or open-source community—with a proven track record in your industry or target customer segment. Ask for client references or case studies that align with your business model, geography, or order volumes. A vendor familiar with your space can understand your requirements more clearly, reducing back-and-forth communication and ultimately shortening the implementation timeline.
   
   

Open Source vs. Proprietary Order Management Software

Open Source OMS

1. High Customizability
   Businesses can tailor the system to match unique workflows, fulfillment rules, and integrations.
   
   
2. Cost Savings
   No recurring license fees, ideal for businesses looking to control long-term technology costs.
   
   
3. Scalability
   Easily adaptable to support new features, channels, or growth in order volume.
   
   
4. Community-Driven Innovation
   Supported by a global developer community, open source platforms benefit from continuous improvements, shared modules, and community support.

Proprietary OMS

Proprietary solutions are developed, licensed, and maintained by software vendors. These platforms are often ready-to-deploy with pre-built features. Benefits include:

1. Vendor Support
   Businesses receive dedicated support, training, and updates directly from the software provider.
   
   
2. Faster Deployment
   Designed to work out-of-the-box with standard eCommerce and retail operations.
   
   
3. Lower Technical Overhead
   No need for in-house development teams to manage code or infrastructure.
   
   
4. Predictable Roadmaps
   Feature development, compliance updates, and integrations are managed by the vendor.

Which one should you choose?

If your OMS requirements align closely with standard eCommerce or retail operations and need only limited customization, typically up to 20%, a proprietary solution is often the better fit. These platforms offer faster deployment, vendor support, and lower technical overhead, making them ideal for businesses looking for a ready-to-deploy system.

However, if your business requires more than 20% customization, deep integration with legacy or complex backend systems, or support for highly specific operational logic, an open source OMS like Apache OFBiz may be the better choice. It offers greater flexibility, control over the technology stack, and full ownership of the code, making it ideal for businesses building tailored, scalable solutions.

Apache OFBiz Order Management Software

Apache OFBiz is an open-source business automation system under Apache Software Foundation. It offers a comprehensive suite of modules to help businesses manage their operations, including a robust Order Management module that covers core order-to-fulfillment workflows.

Some of the key capabilities available in the Apache OFBiz Order Management module include:

1. Order Orchestration
   Manages the entire order lifecycle, capturing orders from multiple sales channels, assigning fulfillment locations, and tracking fulfillment status through to delivery.
   
   
2. Inventory Management
   Provides centralized visibility and control over inventory across warehouses and retail stores, helping ensure accurate fulfillment and avoid overselling.
   
   
3. Shipping Management
   Supports integrations with shipping carriers and third-party logistics providers (3PLs), label generation, and shipment tracking.
   
   
4. Customer Service Tools
   Allows teams to search, view, and edit orders directly from the system to assist with customer queries and order changes.

While Apache OFBiz provides a strong foundation for order management, there are certain limitations when it comes to modern retail operations, particularly in the context of omnichannel fulfillment. Out of the box, the Apache OFBiz OMS module lacks:

• Smart Order Routing
• Consumer-grade, modern UI
• Advanced Search and Filtering
• Visual Reporting and Dashboards
• Native Omnichannel Fulfillment Capabilities

These limitations often require businesses to either customize Apache OFBiz or extend it with additional solutions. 

HotWax Commerce Omnichannel Order Management System

To address the limitations of the Apache OFBiz Order Management module, HotWax Systems developed HotWax Commerce, a SaaS-based omnichannel Order Management System purpose-built for modern retail operations. 

HotWax Commerce offers enterprise-grade features such as advanced omnichannel fulfillment capabilities (including BOPIS, Ship from Store, and Buy Online Return to Store), a consumer-grade modern UI, intelligent order routing, and pre-built integrations with leading platforms. These include eCommerce platforms like Shopify and Shopify POS, ERPs such as NetSuite, Microsoft Dynamics, and Infor, as well as POS systems like XStore, Retail Pro, and more.

HotWax Commerce is an ideal choice for retailers seeking a ready-to-deploy SaaS solution that minimizes implementation time and maximizes operational efficiency. With the ability to go live in as little as 4–8 weeks, it significantly reduces time-to-market. Especially well-suited for fashion and apparel brands, the platform is designed for businesses that require minimal customization, offering a scalable, fast, and feature-rich order management solution right out of the box.

HotWax Accelerator: Combining Apache OFBiz with Modern Order Management Features

For businesses with complex operations that require deep customization and complete control over their technology stack, HotWax Accelerator delivers the best of both worlds. It combines the reliable backend capabilities of Apache OFBiz with the modern, enterprise-grade enhancements of HotWax Commerce, allowing retailers to build a fully custom Order Management System that aligns with their unique business processes.

HotWax Accelerator is well-suited for organizations that need high flexibility, full code ownership, and tight integration with existing systems. It brings together Apache OFBiz’s core strengths and adds features like intelligent order routing, omnichannel fulfillment workflows (including BOPIS, Ship from Store, and Return to Store), advanced reporting, a user-friendly interface, and pre-built integrations with platforms such as Shopify, NetSuite, Microsoft Dynamics, and XStore.

With its API-first architecture and support for deep customization, HotWax Accelerator gives businesses the building blocks to develop a scalable, tailored OMS, while ensuring ease of use and seamless integration across systems.

Conclusion

Order Management Software plays a central role in streamlining operations, improving fulfillment speed, and enhancing the overall customer experience. From capturing orders across multiple channels to ensuring accurate delivery, a well-chosen OMS helps retailers manage complexity and scale efficiently.

HotWax Systems recommends Apache OFBiz for its extensibility and foundational capabilities. For retailers needing faster time-to-market or enterprise-grade features, our team can help you implement a tailored solution, whether through our SaaS-based HotWax Commerce OMS or a fully customized build using HotWax Accelerator. Get in touch with us to find the OMS approach that fits your business best.