---
title: What Is an Order Management System (OMS)? | HotWax Commerce
description: What is an order management system (OMS)? Learn how it unifies inventory, routes orders across locations, and powers pickup, ship from store, and returns.
image: https://www.hotwax.co/hubfs/order-management-system-landing-page/marketing-email-oms.png
---
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- [Order Management System](https://www.hotwax.co/product/omnichannel-order-management-system/)
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- [OMS Architecture](https://www.hotwax.co/product/technology/oms-architecture)
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- [Shopify](https://www.hotwax.co/shopify-order-management-integration)
- [NetSuite](https://www.hotwax.co/hotwax-netsuite-integration)
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- By Business Benefits
- [Prevent Overselling](https://www.hotwax.co/use-cases/prevent-overselling)
- [Unified Inventory](https://www.hotwax.co/solution/unified-inventory/)
- [Order Routing](https://www.hotwax.co/solution/configurable-order-routing)
- [Ship From Store](https://www.hotwax.co/solution/ship-from-store-software)
- [Buy Online Pick-Up In Store](https://www.hotwax.co/solution/buy-online-pick-up-in-store-bopis-software/)
- [Pre-Orders](https://www.hotwax.co/solution/pre-orders/)
- [Inventory Transfers](https://www.hotwax.co/inventory-transfers)
- [Cycle Counts](https://www.hotwax.co/cycle-count)
- [Return In Store](https://www.hotwax.co/solution/buy-online-return-in-store-boris-software)
- [Retail Sales Audit](https://www.hotwax.co/product/omnichannel-retail-sales-audit-oresa/)
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- [Comparing Order Management Capabilities B/W Shopify and HotWax](https://www.hotwax.co/comparing-order-management-capabilities-between-shopify-and-hotwax)
- [How To Do By Online Pick-Up In Store Right](https://www.hotwax.co/how-to-do-buy-online-pick-up-in-store-right)
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# Order Management System
What an order management system is, how it works, and how retailers choose one.
## What an order management system does
An order management system, often called an OMS, is the software a retailer uses to manage an order across its full lifecycle and across every sales channel. It sits between the online store, point of sale, warehouse, and back-office systems and keeps them working from one shared view of inventory and orders.
In practice an OMS unifies stock from every location, works out what is truly available to sell, captures each order, decides where to fulfill it, and tracks it through delivery, pickup, and returns.
[See a live demo](https://www.hotwax.co/connect)
An order management system, often called an OMS, is the software a retailer uses to manage an order across its full lifecycle and across every sales channel. It sits between the online store, point of sale, warehouse, and back-office systems and keeps them working from one shared view of inventory and orders.
In practice an OMS unifies stock from every location, works out what is truly available to sell, captures each order, decides where to fulfill it, and tracks it through delivery, pickup, and returns.
[See a live demo](https://www.hotwax.co/connect)
## How an order management system works
## Unify inventory from every location
An OMS pulls stock from stores, warehouses, suppliers, and channels into one continuously updated view, so the business works from a single accurate count instead of numbers that disagree.
## Work out what is available to promise
Available to promise, or ATP, is the stock a retailer can actually sell right now. An OMS works it out by taking quantity on hand and removing reservations, safety stock, and buffers, so the number shown online is one the business can deliver.
## Capture the order and set a promise
When a shopper checks out, the OMS records the order and the delivery promise behind it. Accurate availability lets the store show real options at the product page, such as pickup today, next-day delivery, or pre-order with a realistic date, which lifts conversion and lowers cancellations.
## Allocate, route, and fulfill the order
Once an order is captured, the OMS decides which location should fill it, based on rules the retailer sets, such as proximity, cost, stock levels, and store capacity. It then hands the work to that store or warehouse and tracks the order through packing, shipping, pickup, and delivery.
## The order lifecycle, from checkout to delivery
An OMS moves every order through the same clear stages, no matter where it was placed or how it is fulfilled.
[See a live demo](https://www.hotwax.co/connect)
## Core capabilities of an order management system
## Order orchestration
Order orchestration is the coordination of every step after checkout, across every system involved. The OMS acts as the control layer that keeps the online store, stores, warehouses, and carriers in sync, so an order moves without manual handoffs.
## Distributed inventory
Distributed inventory means treating stock in every store and warehouse as one sellable pool. The OMS knows what is where, so a retailer can sell and fulfill from the whole network instead of a single warehouse.
## Order routing
[Order routing](https://www.hotwax.co/solution/configurable-order-routing) is the decision about which location fills each order. Rules weigh distance, shipping cost, stock levels, and store workload, and can keep an order in one shipment or split it when that serves the customer better.
## Order orchestration, inventory, and routing
These are the building blocks most order management systems share, described as concepts rather than any one product.
[See a live demo](https://www.hotwax.co/connect)
## Store fulfillment: BOPIS and ship from store
## Buy online, pick up in store (BOPIS)
[BOPIS](https://www.hotwax.co/solution/buy-online-pick-up-in-store-bopis-software/) lets a shopper buy online and collect the order at a nearby store. The OMS checks store stock in real time, reserves the item, and guides associates through picking and handover, which turns store visits into extra sales.
## Ship from store
[Ship from store](https://www.hotwax.co/solution/ship-from-store-software) uses store stock to fulfill online orders and send them straight to the shopper. It shortens the distance a package travels, frees up warehouse load, and helps clear inventory that would otherwise sit in stores.
## Endless aisle and store inventory
With one view of network stock, associates can sell items the store does not carry and have them shipped from elsewhere, an approach called endless aisle. The same tools keep [store inventory](https://www.hotwax.co/solution/store-inventory-management) accurate through receiving, transfers, and cycle counts.
## Using stores as fulfillment locations
An OMS lets retailers fill online orders from store stock, which shortens delivery distances and puts more inventory within reach.
[See a live demo](https://www.hotwax.co/connect)
## Returns and post-purchase management
## Buy online, return in store (BORIS)
[BORIS](https://www.hotwax.co/solution/buy-online-return-in-store-boris-software) lets a shopper return an online purchase to a physical store. Staff look up the original order, process a refund, exchange, or store credit, and put the item back into sellable stock, which recovers value and brings the shopper back into the store.
## Order tracking and updates
An OMS records every fulfillment event, from placed to packed, shipped, and delivered. It can pass those updates to email or messaging tools so shoppers stay informed, which cuts support requests and builds trust.
## Order edits and service
Support teams can see payment, tracking, and fulfillment status for any order in one place, and make changes such as address updates, shipping changes, and item swaps, without breaking the order downstream.
## Returns that connect online and stores
The order lifecycle does not end at delivery. A good OMS handles returns, refunds, and exchanges across channels.
[See a live demo](https://www.hotwax.co/connect)
## Exception handling
## When a location cannot fulfill
Sometimes the chosen store or warehouse cannot fill an order because stock is missing or staff are unavailable. An OMS detects this and offers alternatives such as pickup at another store, home delivery, or a refund.
## Automatic rerouting
When a location rejects an order, the OMS can reroute it to the next best location automatically, using the same rules that placed it, so the order still ships without someone stepping in by hand.
## OMS vs ERP vs WMS
### What an ERP does
An ERP, or enterprise resource planning system, runs the back office, such as finance, purchasing, and master data. It is the system of record, not the tool that decides where an order is fulfilled.
### What a WMS does
A WMS, or warehouse management system, runs the work inside one warehouse, such as putaway, picking, and packing. It manages a building, while an OMS manages orders across the whole network.
## How an OMS differs from ERP and WMS
These systems overlap, but each owns a different job. Knowing the difference shows where an OMS fits.
[See a live demo](https://www.hotwax.co/connect)
## OMS, ERP, and WMS at a glance
An ERP, or enterprise resource planning system, runs the back office: finance, purchasing, and master records. A WMS, or warehouse management system, runs the work inside a single warehouse: putaway, picking, and packing.
An OMS sits across the whole network. It owns the order and the sellable inventory picture across every location and channel, and it decides where each order is fulfilled. Most retailers run all three, with the OMS coordinating orders between the store, the warehouse, and the back office.
### A scalable, API-first platform
Look for a modern, microservices architecture with open APIs and ready integrations to eCommerce platforms, ERP, WMS systems, carriers, payment gateways, and marketing tools.
### Security and data governance
Check for role-based access, secure APIs, encrypted data transfer, multi-region backups, and cloud resilience, the controls a global retailer needs to trust a platform.
### Faster rollout and lower integration cost
Prefer prebuilt integrations and configuration-driven workflows over long custom projects, so the system reaches value sooner.
### Support for multiple brands and regions
If you run several brands or regions, the system should keep inventory, fulfillment rules, and customer experiences separate where needed.
### Reliability at peak load
The system should hold up during flash sales, seasonal spikes, and heavy network-wide fulfillment without breaking order flow.
### Onboarding and support
Look for hands-on onboarding, continuous training, and support that stays involved during peak periods.
## Signs a retailer needs an order management system
Overselling, slow delivery, stock that is hard to see, and manual work to route orders are common signals that a retailer has outgrown basic tools.
[See a live demo](https://www.hotwax.co/connect)
## How HotWax Commerce approaches order management
HotWax Commerce is an omnichannel order management system for enterprise retailers that integrates with Shopify and NetSuite. It unifies inventory, routes orders across stores and warehouses, and runs store fulfillment for pickup, ship from store, and returns. See the [omnichannel order management system](https://www.hotwax.co/product/omnichannel-order-management-system/) for details.
Head of Supply Chain/ Ops
Head of eCommerce/ Digital
CIO/ CTO
CMO
Head of Customer Service
Head of Store Ops
**Higher fill rates**
Real-time inventory across every location lets an OMS fill more orders from available stock and cut short shipments.
**Lower delivery costs**
Routing each order to the nearest location that has stock reduces shipping distance, cost, and carbon footprint.
**Better margins**
Rate shopping across carriers picks the most economical method that still meets the promised delivery date.
**Higher conversion**
Accurate availability lets the store show real options at the product page, such as same-day pickup, next-day delivery, and realistic promise dates.
**More sales**
Selling across more channels, and earlier through pre-orders, opens up demand that a single warehouse view would miss.
**Better customer experience**
Showing accurate stock reduces overselling and the cancellations and disappointment that follow.
**Faster integration**
Prebuilt connectors to ERP, POS, shipping gateways, and eCommerce platforms shorten the time and cost of an omnichannel rollout.
**Room to extend**
Open APIs let a team build custom workflows and connect to systems beyond the standard connectors.
**Supported onboarding**
Training and ongoing support help teams adopt the system and keep it running as the business grows.
**Faster time to market**
Pre-orders let a retailer launch new products and capture demand before stock arrives.
**Higher customer satisfaction**
Real-time inventory prevents canceled pickup orders and the disappointment that lowers repeat purchase.
**Better return on ad spend**
Feeding current inventory into ad platforms avoids spending on products that are out of stock.
**Faster query resolution**
A single view of every order lets support teams answer questions about shipping, status, location, and tracking without switching systems.
**Fewer cancellations**
Accurate inventory records reduce cancellation requests and free the team for more useful conversations.
**More store traffic**
Showing real-time in-store availability and same-day pickup brings shoppers into stores and lifts revenue.
**Faster picking and packing**
Guided picking routes and built-in shipping labels speed up BOPIS and ship from store for associates.
**Protected store capacity**
Setting a maximum order capacity per store controls how many orders each store takes and prevents bottlenecks.
## Why leading retail brands choose HotWax Commerce
## 
"The **ability to connect our vast store network across five countries** to each of our Shopify sites with HotWax Commerce and their unique focus on Shopify merchants like us makes them the right choice for our company," said Elizabeth Phillips, ADOC's Digital Experience and Customer Support Manager.
[Read the Press Release](https://www.hotwax.co/pressroom/adoc-chooses-hotwax-commerce-as-its-omnichannel-order-management-solution-for-shopify)
**System Integrations**
****
###### Elizabeth Phillips
###### Digital Experience and Customer Support Manager
“We wanted a platform that **offers powerful order and inventory management, while being simple to use,** ensuring we provide the best shopping experience to our customers. HotWax Commerce’s app suite will help us do that” said Amber Jessie, KREWE’s Retail Operations Manager.
“HotWax Commerce has **a robust out of the box integration with NetSuite and Shopify** for order management and store inventory management, and that makes them an easy choice for us" said Jeff Jones, KREWE's Director of Information Technology.
[Read the Press Release](https://www.hotwax.co/pressroom/krewe-chooses-hotwax-commerce-as-its-omnichannel-order-management-solution-for-shopify)
**System Integrations**
****
###### Jeff Jones
###### Director of Information Technology
#### 
"We decided to go with HotWax Commerce after assessing various solutions. On top of the**company’s proven track record of working with Shopify retailers,** the solutions can be implemented at a pace that aligns with the unique needs of our brands.” said Raymond Conesa, VP of Ecommerce Operations, Perry Ellis International.
[Read the Press Release](https://www.hotwax.co/pressroom/perry-ellis-international-deploys-hotwax-commerce-omnichannel-order-management-solution-for-shopify)
**System Integrations**
****
###### Raymond Conesa
###### VP of eCommerce Operations
#### 
The growth and **success experienced by Steve Madden and its affiliated brands while using HotWax Commerce have been truly remarkable.** This enduring partnership is a testament to the mutual dedication and commitment to delivering exceptional customer experiences. Anil Patel emphasized, "I am delighted that Steve Madden and its affiliated brands continue to leverage HotWax Commerce. Our shared vision for innovation and customer satisfaction forms the foundation of our enduring collaboration."
[Read the Press Release](https://www.hotwax.co/pressroom/hotwax-commerce-celebrates-one-year-with-steve-madden)
**System Integrations**
****
###### Anil Patel
###### CEO HotWax Commerce
## Request Consultation
## Common questions about order management systems
- ##### [What does an order management system do?](https://www.hotwax.co/order-management-system#content-1)
An order management system manages a retail order across its full lifecycle and across every channel. It unifies inventory from all locations, works out what is available to sell, captures each order, decides where to fulfill it, and tracks it through delivery, pickup, and returns.
- ##### [How does an order management system work?](https://www.hotwax.co/order-management-system#content-2)
An OMS connects the online store, point of sale, warehouses, and back-office systems. It keeps one shared view of inventory, applies rules to route each order to the best location, and passes fulfillment steps and status updates back to every system and to the shopper.
- ##### [What is the difference between an OMS and an ERP?](https://www.hotwax.co/order-management-system#content-3)
An ERP runs back-office functions such as finance, purchasing, and master records. An OMS runs the order and the sellable inventory picture across channels and decides where orders are fulfilled. Most retailers use both, with the OMS feeding order and fulfillment data to the ERP.
- ##### [What is the difference between an OMS and a WMS?](https://www.hotwax.co/order-management-system#content-4)
A WMS manages work inside a single warehouse, such as putaway, picking, and packing. An OMS works across the whole network of stores and warehouses, owns the order, and decides which location fills it. The OMS routes an order to a site, and the WMS handles the work once it arrives.
- ##### [Do small retailers need an OMS?](https://www.hotwax.co/order-management-system#content-5)
Not always. A small retailer selling on one channel from one location can often manage with the tools built into its store platform. An OMS earns its place once a retailer sells across several channels or fulfills from more than one location and needs one accurate view of stock and orders.
- ##### [How do you choose an order management system?](https://www.hotwax.co/order-management-system#content-6)
Start with the problems you need to solve, such as accurate inventory, faster delivery, or store fulfillment. Check that it connects to your store platform, ERP, and point of sale, that routing rules are configurable, that store staff tools are simple, and that it can scale with your order volume.
- ##### [What is distributed order management (DOM)?](https://www.hotwax.co/order-management-system#content-7)
Distributed order management, or DOM, is the practice of managing orders and inventory across a network of stores and warehouses rather than a single location. An OMS is the software that makes DOM possible by tracking stock everywhere and routing each order to the best site.
- ##### [What is BOPIS?](https://www.hotwax.co/order-management-system#content-8)
BOPIS stands for buy online, pick up in store. A shopper orders online and collects the items at a chosen store. An OMS supports BOPIS by showing real-time store stock, reserving the item, and guiding store staff through picking and handover.
- ##### [What is ship from store?](https://www.hotwax.co/order-management-system#content-9)
Ship from store is fulfilling online orders using stock held in physical stores and shipping it to the shopper. It turns stores into fulfillment locations, which shortens delivery distances and helps move inventory that would otherwise sit on shelves.
- ##### [What is available to promise (ATP)?](https://www.hotwax.co/order-management-system#content-10)
Available to promise, or ATP, is the stock a retailer can actually sell right now. It is calculated by taking quantity on hand and subtracting reservations, safety stock, and buffers, so the number shown to shoppers is one the business can deliver.
- ##### [How does an OMS reduce shipping costs?](https://www.hotwax.co/order-management-system#content-11)
An OMS lowers shipping costs by routing each order to the closest location that has stock, keeping shipments together when possible, and using store inventory so packages travel shorter distances.
- ##### [How does an OMS integrate with other systems?](https://www.hotwax.co/order-management-system#content-12)
An OMS connects to eCommerce platforms, ERP, point of sale, warehouse management systems, carriers, and marketing tools through APIs and prebuilt connectors, so order and inventory data stays consistent across the stack.
- ##### [How does an OMS improve inventory accuracy?](https://www.hotwax.co/order-management-system#content-13)
An OMS keeps one shared view of stock and updates it as fulfillment events, store activity, inbound shipments, and cycle counts happen, so every channel sells against the same accurate count and overselling drops.
- ##### [What is omnichannel order fulfillment?](https://www.hotwax.co/order-management-system#content-14)
Omnichannel order fulfillment is meeting demand across every channel and location as one connected operation. A shopper can buy online, in store, or on a marketplace and receive the order by delivery, pickup, or ship from store, all coordinated by the OMS.
- ##### [What are the benefits of an order management system?](https://www.hotwax.co/order-management-system#content-15)
An order management system gives retailers one accurate view of inventory, faster and cheaper delivery through smart routing, the ability to fulfill from stores, fewer cancellations, and a more consistent experience across online and store channels.
## Take the next step
Book a quick 15-minute call with our team and get all your questions answered.
[See a live demo](https://www.hotwax.co/connect)
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- [Configurable Order Routing](https://www.hotwax.co/solution/configurable-order-routing)
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- [Unified Inventory](https://www.hotwax.co/solution/unified-inventory/)
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- [Store Inventory Management](https://www.hotwax.co/solution/store-inventory-management)
- Solutions
- [Omnichannel OMS for Shopify](https://www.hotwax.co/product/omnichannel-order-management-system-for-shopify/)
- [Omnichannel Retail Sales Audit](https://www.hotwax.co/product/omnichannel-retail-sales-audit-oresa/)
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"@type" : "Answer",
"text" : "An ERP runs back-office functions such as finance, purchasing, and master records. An OMS runs the order and the sellable inventory picture across channels and decides where orders are fulfilled. Most retailers use both, with the OMS feeding order and fulfillment data to the ERP."
},
"name" : "What is the difference between an OMS and an ERP?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "A WMS manages work inside a single warehouse, such as putaway, picking, and packing. An OMS works across the whole network of stores and warehouses, owns the order, and decides which location fills it. The OMS routes an order to a site, and the WMS handles the work once it arrives."
},
"name" : "What is the difference between an OMS and a WMS?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "Not always. A small retailer selling on one channel from one location can often manage with the tools built into its store platform. An OMS earns its place once a retailer sells across several channels or fulfills from more than one location and needs one accurate view of stock and orders."
},
"name" : "Do small retailers need an OMS?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "Start with the problems you need to solve, such as accurate inventory, faster delivery, or store fulfillment. Check that it connects to your store platform, ERP, and point of sale, that routing rules are configurable, that store staff tools are simple, and that it can scale with your order volume."
},
"name" : "How do you choose an order management system?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "Distributed order management, or DOM, is the practice of managing orders and inventory across a network of stores and warehouses rather than a single location. An OMS is the software that makes DOM possible by tracking stock everywhere and routing each order to the best site."
},
"name" : "What is distributed order management (DOM)?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "BOPIS stands for buy online, pick up in store. A shopper orders online and collects the items at a chosen store. An OMS supports BOPIS by showing real-time store stock, reserving the item, and guiding store staff through picking and handover."
},
"name" : "What is BOPIS?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "Ship from store is fulfilling online orders using stock held in physical stores and shipping it to the shopper. It turns stores into fulfillment locations, which shortens delivery distances and helps move inventory that would otherwise sit on shelves."
},
"name" : "What is ship from store?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "Available to promise, or ATP, is the stock a retailer can actually sell right now. It is calculated by taking quantity on hand and subtracting reservations, safety stock, and buffers, so the number shown to shoppers is one the business can deliver."
},
"name" : "What is available to promise (ATP)?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "An OMS lowers shipping costs by routing each order to the closest location that has stock, keeping shipments together when possible, and using store inventory so packages travel shorter distances."
},
"name" : "How does an OMS reduce shipping costs?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "An OMS connects to eCommerce platforms, ERP, point of sale, warehouse management systems, carriers, and marketing tools through APIs and prebuilt connectors, so order and inventory data stays consistent across the stack."
},
"name" : "How does an OMS integrate with other systems?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "An OMS keeps one shared view of stock and updates it as fulfillment events, store activity, inbound shipments, and cycle counts happen, so every channel sells against the same accurate count and overselling drops."
},
"name" : "How does an OMS improve inventory accuracy?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "Omnichannel order fulfillment is meeting demand across every channel and location as one connected operation. A shopper can buy online, in store, or on a marketplace and receive the order by delivery, pickup, or ship from store, all coordinated by the OMS."
},
"name" : "What is omnichannel order fulfillment?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "An order management system gives retailers one accurate view of inventory, faster and cheaper delivery through smart routing, the ability to fulfill from stores, fewer cancellations, and a more consistent experience across online and store channels."
},
"name" : "What are the benefits of an order management system?"
} ]
}
```