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Order Fulfillment Software: How WMS and OMS Integration Drives 3PL Success

Written by: Erhan Musaoglu
Originally published on November 5, 2024, Updated on November 15, 2024
Order Fulfillment Software WMS and OMS Integration
In today’s fast-paced logistics world, order fulfillment software has become essential for third-party logistics (3PL) providers. By combining Warehouse and Order Management Systems (WMS/OMS), 3PL providers can ship faster and smarter—creating happy customers and healthy profits. With the market for these solutions growing past $3 billion, it’s clear: the right fulfillment software isn’t just nice to have —it’s essential for staying competitive.

The building blocks of modern order fulfillment software

To understand how order fulfillment software works, let’s look at two main components: the Warehouse Management System (WMS) and the Order Management System (OMS). While each plays a vital role, they work best together.

Warehouse Management System (WMS)

A WMS is the driving force behind your warehouse operations. As part of your order fulfillment software suite, it handles everything that happens within your warehouse walls. Here’s what a WMS does:

For 3PL providers, WMS-focused order fulfillment software means fewer errors, faster operations, and better use of warehouse space. One Logiwa client reported a 40% reduction in picking errors after implementing our WMS software.

 

Order Management System (OMS)

An OMS manages the order lifecycle from start to finish, ensuring that customers receive the correct products on time. OMS focuses on everything related to a customer’s order:

  • Order Processing: Handles orders from multiple sales channels
  • Customer Updates: Keeps buyers informed about their orders
  • Payment Handling: Processes payments securely
  • Returns Management: Makes returns simple and efficient
  • Channel Integration: Connects with various sales platforms

When your OMS works well, customers notice. Good order fulfillment software can increase customer satisfaction rates by up to 30%.

Distinguishing between WMS and OMS in order fulfillment software

Understanding the differences between WMS and OMS helps you get the most from your order fulfillment software:

Scope and focus:

  • WMS handles internal operations: where items are stored, how they’re picked
  • OMS manages external processes: order tracking, customer communication

Data management:

  • WMS tracks inventory numbers and warehouse activities
  • OMS handles order details and customer information

Business objectives:

  • WMS aims for operational efficiency
  • OMS focuses on enhancing customer experience

Together, they bridge data and process gaps, creating a holistic approach to order fulfillment software.

Benefits of integrated order fulfillment software for 3PLs

When WMS and OMS work together in your order fulfillment software, good things happen:

Better Visibility

  • Real-time inventory updates
  • Clear order status tracking
  • Detailed performance reports

Improved Operations

  • Faster order processing (up to 50% faster in many cases)
  • Fewer errors (typically reduced by 30-40%)
  • Lower costs (15-25% reduction in operational costs)

Enhanced Customer Experience

  • More accurate orders
  • Faster deliveries
  • Better communication
  • Easier returns

Making the most of your order fulfillment software

Implementing integrated order fulfillment software is like building a new house—you need the right foundation, proper planning, and expert execution. Let’s explore what it takes to make your software implementation successful.

Technical needs

Cloud-Based Solutions: Today’s leading order fulfillment software solutions leverage cloud technology for good reason. Cloud-based systems eliminate the headache of managing local servers and enable automatic updates that keep your system current. Your team can access critical information from anywhere, whether they’re on the warehouse floor or working remotely. Plus, cloud solutions typically offer better security and disaster recovery options than on-premise alternatives.

Scalability: Your order fulfillment software should be able to handle your current needs,  but with room to grow. Look for solutions that offer flexible pricing tiers and modular features. This allows you to start with what you need today while ensuring you won’t outgrow your system tomorrow. The best platforms let you add features, users, and warehouse locations without major disruptions to your operations.

Integration Capabilities: Modern fulfillment operations rely on a fully integrated tech stack. Your new software needs to communicate effectively with:

  • Ecommerce platforms
  • Accounting software
  • Shipping carriers
  • Customer service tools
  • Existing warehouse equipment

Look for order fulfillment software that offers robust API connections and pre-built integrations with popular business tools. This will save you thousands in custom development costs and prevent data silos.

Business Considerations

ROI Calculation: Before investing in order fulfillment software, develop a clear ROI model that considers:

  • Current operational costs
  • Expected efficiency gains
  • Implementation expenses
  • Training requirements
  • Maintenance fees

A good rule of thumb: most companies see positive ROI within 12-18 months of implementation when they choose the right solution and execute properly.

Training Strategy: Success with order fulfillment software depends heavily on user adoption. Create a comprehensive training program that includes:

  • Role-specific training modules
  • Hands-on practice sessions
  • Regular refresher courses
  • Documentation and quick reference guides
  • Super-user program for peer support

Change Management: Think of change management as a journey, not a destination. Create a structured approach that includes:

  • Clear communication about why the change is necessary
  • Early involvement of key stakeholders
  • Regular updates on implementation progress
  • Celebration of small wins
  • Feedback loops for continuous improvement

The future of order fulfillment software

The future of fulfillment software is promising, with advancements in AI, IoT, and predictive analytics expected to drive even more efficiency. Mobile solutions will also play a larger role, making access to key information easier for warehouse staff.

Taking the Next Step

Modern order fulfillment software is no longer optional for 3PL providers. The right combination can transform your operations, reduce costs, and improve customer satisfaction. When choosing your solution, look for:

  • Easy integration between WMS and OMS
  • Scalability for growth
  • Strong customer support
  • Regular updates and improvements

Ready to improve your fulfillment operations? Start by assessing your current processes and identifying where integrated order fulfillment software could help most.

Schedule a call with one of Logiwa’s warehousing software specialists to discuss your needs. The sooner you begin, the sooner you’ll see results.
 

FAQs about order fulfillment software

What's the difference between WMS and OMS in order fulfillment software?

A Warehouse Management System (WMS) and Order Management System (OMS) serve different but complementary purposes in order fulfillment software. WMS focuses on internal warehouse operations like inventory tracking, space optimization, and picking/packing processes. OMS handles customer-facing aspects like order processing across multiple sales channels, payment processing, and customer communications.

While WMS helps optimize your warehouse efficiency, OMS ensures smooth order processing and customer satisfaction. Together, they form a complete order fulfillment solution that can reduce picking errors by up to 40% and increase customer satisfaction by 30%.

How long does it take to see ROI from order fulfillment software?

Most 3PL providers see a positive return on investment (ROI) within 12-18 months of implementing integrated order fulfillment software. The ROI timeline depends on factors like your current operational costs, implementation scope, and chosen solution.

Companies typically experience a 15-25% reduction in operational costs, up to 50% faster order processing, and 30-40% fewer errors. To calculate your potential ROI, consider implementation costs, training requirements, maintenance fees, and expected efficiency gains across your warehouse operations.

Is cloud-based order fulfillment software better than on-premise solutions?

Cloud-based order fulfillment software offers several advantages over on-premise solutions for 3PL providers. These include automatic updates, remote accessibility, enhanced security, and better disaster recovery options. Cloud solutions eliminate the need to manage local servers and allow warehouse staff to access critical information from anywhere. They also typically offer more flexible scaling options, letting you add features, users, and warehouse locations without major operational disruptions. This makes cloud-based solutions particularly valuable for growing 3PL operations.

What integrations should order fulfillment software have?

Essential integrations for order fulfillment software include connections with ecommerce platforms, accounting software, shipping carriers, customer service tools, and warehouse equipment.

Look for solutions offering robust API connections and pre-built integrations with popular business tools to avoid expensive custom development costs. Strong integration capabilities ensure seamless data flow across your entire operation, from order receipt to delivery confirmation, while preventing information silos that can slow down operations.

How can 3PLs prepare their team for new order fulfillment software?

Successful implementation of order fulfillment software requires a comprehensive training and change management strategy. Start by developing role-specific training modules, hands-on practice sessions, and quick reference guides. Establish a super-user program for peer support and schedule regular refresher courses. Create a structured change management approach that includes clear communication about the benefits of the new system, early stakeholder involvement, and continuous feedback loops. This preparation helps ensure high user adoption rates and faster realization of efficiency gains.

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