FOCUS REPORT ORDER MANAGEMENT SYSTEMS. January 2014

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1 FOCUS REPORT ORDER MANAGEMENT SYSTEMS January Worcester Road, Suite 302 Framingham, MA

2 A WORD FROM SOPHELLE Today s order management systems (OMS) solutions are numerous, varied, and evolving at a rapid pace. A range of functionality is available without clear standards about what feature sets OMS should include. In this Focus Report we ll identify key considerations in regard to consumer expectations, omnichannel operations, and fulfilment processes, as well as enterprise, marketing, and IT viewpoints. Douglas Weich CEO ORDER MANAGEMENT SYSTEMS HELP YOU CONNECT WITH YOUR CUSTOMER, WHEREVER SHE MAY BE 2

3 ABOUT SOPHELLE FOCUS REPORTS Sophelle Focus Reports are intended to provide readers with information and insight into specific areas of retail technology and operations. The information attributed to Sophelle in this report is based on the combined experience of its associates working with many leading retailers on strategy and implementation projects. Sophelle Focus Reports are not intended to provide all of the information needed for retailers to make a selection decision. Sophelle recommends that each retailer conduct a thorough solution selection project, identifying its particular requirements and reviewing each vendor s solution in detail. Sophelle has conducted many selection projects and offers its proven process. Readers are encouraged to contact Sophelle and all of the vendors participating in this report. Contact information is provided at the end of the report. Sophelle Focus Reports are updating regularly. For the most recent version, please visit 3

4 About Sophelle Focus Reports Consumer Considerations Omnichannel Considerations Fulfillment Considerations Enterprise Considerations Marketing Considerations IT Considerations The Ideal OMS Vendor Offerings About the Authors Get In Touch In this Focus Report we will identify key considerations in regards to consumer expectations, omnichannel operations, fulfillment processes as well enterprise, marketing and IT and viewpoints. 4

5 67% of consumers start shopping on one device and complete the purchase on another. - COMSORE 82% Percentage of consumers who would complete their purchase if they could return the item to a store. - UPS For online shoppers the ease of returns is above average in importance. - UPS CONSUMER CONSIDERATIONS Increasingly, customers expect a consistent experience across all touch points: online, mobile, in-store, kiosk, and catalog. In the past, a perfectly executed online order has meant that the right items are delivered on time to the proper address. The bar is rising. Today s consumers expect more. They expect confirmation that their order was processed, shipped, and delivered. They want to be able to pick up their orders at a store. They want to place one order with multiple recipients. They demand live order status updates throughout the process. Often they want same-day delivery. They expect immediate notification if any delays or issues arise. And they ll continue to want more as clever, aggressive competition increases. Consumers increased expectations are challenging ecommerce and order management solutions to provide greater functionality and integration. Visibility is needed though web and mobile sites, contact center, and home office, as well as through third-party solutions. 5

6 OMNICHANNEL CONSIDERATIONS Omnichannel strategies, nearly ubiquitous among leading retailers, bring entirely new sets of requirements to order management systems. Effective omnichannel strategies require coordinated operations, integrated systems, and accessible enterprise data sources. The same requirements are made of order management systems. Buy-online/return-in-store was merely an early step. Though wrought with challenges, the fulfilment of online orders from brick and-mortar locations offers successful implementers great potential for reduced inventory. To support the rapid rate of change and new operational models, OMS solutions with robust data integration layers. 6

7 FULFILLMENT CONSIDERATIONS Leading fulfillment strategies increase system requirements. Same-day delivery requires real-time data access. Drop-ship relationships with third-party vendors require real-time data integration. Co-branded websites with multi-retailer product assortments require more complex backend data integration. Global shipping requires richer data sets, multi-currency/multi-language support, and additional integrations for fulfilment partners. Web and mobile site user visibility requires scalable, efficient processes. ORDER MANAGEMENT BENEFITS Help organizations fulfil orders faster Help lower shipping costs Eliminate manual re-entry Provide ecommerce customer with accurate shipping rates Allow customer to track order shipping and delivery status 7

8 ENTERPRISE CONSIDERATIONS For retail executives, timely, accurate reports are needed to provide actionable insights, to identify opportunities and challenges in the areas of planning, pricing, forecasting, merchandising, supply chain management and marketing. Further, this data must be presented in summarized reports yet allow for drilldown, as needed, to pinpoint issues. MARKETING CONSIDERATIONS Customers expect a unified and consistent brand proposition online and off. Channel-specific, siloed marketing organizations are finding success difficult without consistent, accurate and real-time customer data. A mature OMS allows marketing efforts to pivot based on real-time metrics of all touch points and quickly take advantage of trends oraddress challenges revealed by OMS-generated data. 8

9 A sophisticated OMS can help alleviate many of the typical IT headaches associated with omnichannel commerce, including mobile. These include: Gracefully accepts order from all retail channels Accepts and normalizes stock levels from multiple geographically dispersed fulfilment centers Decreases resources required to create actionable reports for multiple dispersed functional groups Reduces IT burden of enforcing business workflows by allowing for configuration of acceptable business processes Requires minimal IT investment to integrate with complementary technology 9

10 IT CONSIDERATIONS OMS solutions are offered in a variety of technical and business models licensed, on-premise installations. Others are SaaS and hosted on the cloud. Some companies offer both options. Some solutions are adept at consolidating online and mobile orders but may require 3rd party extensions for POS order integration. Others have strong order management capabilities but are challenged when tasked with creating a landed cost report. A handful of OMS solutions have robust analytics while their competitors may offer reporting through a 3rd party integration. Finally, some OMS solutions now have an ecommerce presentation layer built upon the core OMS technology. For these solutions retailers can choose to migrate their site to the OMS ecommerce platform or integrate with the OMS and keep the site on an entirely separate ecommerce platform. OMS solutions are ideal for businesses with fluctuating order volume from multiple sources. 10

11 THE IDEAL OMS Distributed Order Management Aggregates and manages orders from multiple channels Intelligently coordinates fulfilment Provides single order record for tracking and modification Business Process Framework Graphically configures unique business processes Defines relationships and roles of participating organizations Connects to internal and external suppliers Inventory Visibility Provides personalized and real-time access across all inventory sources Provides role-specific views of inventory Allows for advanced inventory search Delivery Scheduling Schedules product deliveries at time of sales based on order type and resource availability Monitors service and delivery execution based on agreed-upon service parameters Reverse Logistics Links return requests to original sales orders Tracks reverse inventory back to appropriate location based o n flexible business rules Available to Promise Provides visibility of supply across all locations Configures inventory categories to meet specific business requirements Provides real-time available-topromise dates 11

12 VENDOR OFFERINGS Sophelle asked leading software vendors with solutions in the order management space to present their views on best practices, trends and their particular approaches. The information provided under each vendor represents their respective view. Sophelle has not verified their claims nor endorses their solutions. The information is presented to allow readers to learn and make their own decisions. 12

13 Company: Dydacomp Solutions That Drive ecommerce Businesses Dydacomp s proven on premise and innovative cloud-based solutions enable small to medium sized retail and fulfillment businesses to grow faster by expanding their ecommerce presence and automating back office operations to manage critical aspects of their business: multichannel order management; inventory visibility & control; rapid, reliable order fulfillment; customer management; integration with Amazon, Magento and more. Over 2,000 multichannel merchants rely on Dydacomp s Multichannel Order Manager (M.O.M.), SiteLINK and Freestyle Commerce solutions to automate their back office operations. The Leading Integrated ecommerce and PCI Compliant OMS Multichannel Order Manager (M.O.M.) is the leading integrated ecommerce and PCI compliant order and inventory management software built for all ecommerce, multichannel and distribution businesses. M.O.M. has earned a strong reputation in the industry with over a million online shoppers daily and nearly ten million in gross merchandise sales every day. SiteLINK is an ecommerce cloud-hosted solution that creates the ideal online shopping experience. It integrates directly with M.O.M. to provide the most complete end-to-end solution for online merchants. The Next Generation In Order Management Dydacomp s latest innovation, Freestyle Commerce, is the next-generation, cloud-based order management solution. Freestyle is the single solution designed for small and midsized retail businesses that want the power of an order management system like larger retailers use... in a size and price that they can afford. 13

14 Company: Dydacomp Bridge the Gap Between Your ecommerce Store and Back Office with M.O.M. Every day, thousands of small and medium-sized merchants like you are looking for better ways to manage orders, gain insights into inventory and effectively manage customer service. Multichannel Order Management - process and fulfill all orders through a single unified workflow, saving time and cost while reducing errors Inventory Management - tracking all inventory from receipt through shipment, as well as returns. Powerful API - allows you to interface with many ecommerce systems Customer Management -track all your customers and access their information instantly. Amazon & ebay Integration Reporting - order processing & status; sales history & source; product inventory; accounting & tax reporting Sales Channel Integration - integration with Magento and other ecommerce systems; synch scheduling; product import & publish; order and customer synch Shipping Integration - UPS, FedEx and USPS; instantly generate carrier tracking numbers; print labels Credit Card Processing - Certified PCI-DSS Compliant QuickBooks Integration - M.O.M./QuickBooks interface can post simple general ledger/chart of accounts or can fully map customers to customers; invoices to orders; vendors to suppliers, purchase orders and more 14

15 Company: Jagged Peak Jagged Peak is a leading ecommerce solutions provider with software and services that enhance the scalability, flexibility and profitability of omnichannel businesses. Its cornerstone technology is EDGE which is a full-featured website development platform and a robust distributed Order Management System (OMS). EDGE is deep, broad and highly configurable, giving companies the tools needed to dynamically weave together all of their sales channels to achieve a unified customer experience. Perfect Order Delivery The EDGE OMS provides best-in-class distributed order management, aggregating and managing the life cycle of virtually any order type and optimizing the fulfillment process by creating and sourcing only perfect fully executable orders to the optimal point of fulfillment based on configurable business rules. Fulfillment points can include, but are not limited to distribution centers, 3PLs, stores, manufacturers, productsuppliers, drop shippers, etc. Delivering on the Omnichannel Promise A responsive and functionally robust solution, EDGE is managed through a single command- and-control interface that enables businesses to aggregate orders from multiple sources in multiple formats and then source those orders in real time to the optimal fulfillment point based on a set of business rules. ORDER CAPTURE LOGISTICS Groundbreaking Omnichannel Analytics The EDGE Channel Analytics module provides a 360-degree view of the merchant s order activities, including orders entered through Web stores, retail stores, customer service portals, marketplaces and any other channels the merchant may use. APPLICATION REPORTS ORDER MANAGEMENT WAREHOUSE SHIPPING/RECEIVING Open Integration Layer and Scalability Designed to seamlessly and easily integrate with other front-end and back-office systems, EDGE can scale to handle virtually any order volume or system demand, having been battle tested over the last 13 years as the platform of choice for some of the world s leading manufacturers and best-known consumer brands. MARKETING The Ideal Omnichannel OMS EDGE is BACKOFFICE INVENTORY CATALOG DEMAND ideally suited to MANAGEMENT MANAGEMENT RULES the demanding needs of omnichannel retailers CONTENT AGILE WEBSITE MEMBERS EVENT that require buy MANAGEMENT MANAGEMENT COMMUNICATIONS anywhere, fulfill anywhere, return X anywhere capabilities. PURCHASE ORDER EDGE has ADMIN ANALYTICS MANAGEMENT BROADCAST all the necessary functionality required to support omnichannel retail, including: 1. Multi-channel order capture and aggregation (manages any order format from any channel or source) 2. Omnichannel analytics that provide real-time actionable business intelligence across all channels 15

16 VANCOUVER CALGARY KENT RENO SACRAMENTO CLAREMONT SANTA ANA PHOENIX MINNEAPOLIS DENVER MEMPHIS FORT WORTH MONTREAL SHERBROOKE HOLLISTON NYC ROBBINSVILLE WINCHESTER GAFFNEY PINELLAS PARK ST PETERSBURG TORONTO TRENTON SOUTH BEND LOUISVILLE Company: Jagged Peak 3. Perfect order creation (provides inventory ATP, address validation, payment settlement and fraud detection to ensure that all orders are fully executable) 4. Optimized order sourcing (determines the best fulfillment location, e.g., DC, store, drop shipper, etc. based on configurable business rules and/or customer direction) 5. Multi-point inventory management (provides real-time inventory visibility across all stocking locations and enables real-time ATP to optimize order sourcing) 6. Supplier drop ship (supported through a UI or integration driven) 7. Integration layer (provides an interface to ERP, DC, store systems and other customer order sources/marketplaces) 8. In-store order settlement and fulfillment (has a native Customer Service Portal that enables store clerks to place customer orders and fulfill web orders sourced to the store) Retailer OMNI Channel Sales ECP Source Internet Retail Stores EDGE - B2B/B2C Mobile Call Center Retailers(EDI) Marketplaces EDGE ECP/OMS EDGE UI API (Business Rules) $$ $ Integration OR EDGE CSP ERP BI Financial CRM PIM Other Call Center Orders EDGE SPACE (Sources) Retail Stores Website Management (CMS & DAM Order Capture & Aggregation Retail Fulfillment EDGE - B2B/B2C Shopping Cart Order Management Returns Management ERP Mobile Call Center Retailers(EDI) Marketplaces Open Tools Integration Layer / Mule Enterprise Service Bus / API s SEO / Social Media Admin Order Sourcing/ Provider Optimization Customer Service Catalog/Product Merchandising Order Handling/ Decomposition CRM $$ $ Personalization Payment Processing Taxation& Fraud Communications Open Tools Integration Layer / Mule Enterprise Service Bus / API s BI CRM SCM WMS Pricing and Promotions Warehouse Logistics & Shipping Reporting & Web Analytics Gifting Inventory Management Internationalization 9. Return order processing (provides real-time settlement of refunds and credits, return item inventory updates, etc.) 10. Cloud-based access (speeds deployment and eliminates infrastructure requirements) 11. Call Center (enables CSRs to service customers, including order capture, order status, returns, customer notes, etc.) 12. CRM (allows users to track and view real-time customertransaction activity and customer profiles) Marketing & Affiliate Tewards ATP Calculation Security & Compliance EDGE: The Hub that Makes Omnichannel Retailing Work Right in the middle of it all, EDGE is a critical enabler of POS Integration EDGE Back Office WMS Integration EDGE WMS Integration EDGE VDP EDGE WMS omnichannel retailing. It is the brain that controls this complex Fulfillment OR Stores Client DCs 3PL OR Dropshippers FlexNet organism orchestrating multi-channel order capture and aggregation, while providing real-time inventory visibility across all stocking points to give shoppers a wide array of channel-neutral options for shopping and acquiring the merchandise they purchase. 16

17 Company: Mainstreet Mainstreet Commerce is the developer of BusinessFlow, a powerful, cloud-based, enterprise, omni-channel Order Management System. We enable 70+ of the most successful global Retailers and Consumer Brands to sell from anywhere, fulfill from anywhere, and service from anywhere. Founded 2003 in Deerfield Beach, FL Focused since inception on dominating the cloud Order Management space 10 Modules extend Order Management functionality BusinessFlow drives 70+ of the most successful global Retailers and Consumer Brands Companies leverage BusinessFlow on a modular basis or to optimize end-to-end operations Cloud based software that is automatically updated with new versions Flexible - last mile simplified for processes that drive efficiencies Best practices implementation in 12 weeks or less Enterprise software without the enterprise price tag Key Concepts in Enterprise Order Management BusinessFlow s order management functionality extends into many aspects of operations - from the web to the warehouse The last mile is critical. It represents the ways that you do business that create competitive advantages for your company. BusinessFlow s enterprise order management does a great job of accomplishing last mile objectives while enabling backward compatibility. BusinessFlow as cloud based software is a huge point of leverage. It enables us to manage IT complexities and your company to focus on building your brand. 17

18 Company: Mainstreet Mainstreet s BusinessFlow Environment That you can connect is important. How you connect is very important. Mainstreet has built a family of connectors to BusinessFlow each of which is multi-tenant, versioned software that connects BusinessFlow to a multitude of third party systems. The connectors along with client specific integrations provide flexibility and a 24/7 stable operation. Ecommerce Sales B2B Marketplace Sales Affiliates & Comparison Shopping Payment Gateways Tax Provider Fraud Management Catalog Management Inventory Management MarkeLng IntegraLon MulL- Channel Sales IntegraLon BusinessFlow Order Management Financial Management Supply Chain IntegraLon Fulfillment Customer Care CRM / MarkeLng ERP/Finance Merchandise Management / POS Supply Chain / Vendors Fulfillment WMS / 3PL / Retail Stores 18

19 Company: MICROS-Retail Powerful, Integrated Order Management Solution for the Omni-Channel Retailer For your retail organization, the benefits of achieving true cross-channel transparency are indisputable. By integrating all aspects of the transaction lifecycle across all channels and points of service, you open up a wealth of opportunities to increase revenue, enhance customer loyalty, streamline operations, and reduce costs. As you plan your path forward, you won t find a solution as compelling as Retail CWSerenade from MICROS. CWSerenade is a Java-based retail solution that provides robust order management functionality for many of the leading retail brands. With CWSerenade you can leverage customer information more effectively during the transaction itself and as part of your marketing, merchandising, and customer service efforts. You can focus on identifying, attracting, and retaining the most profitable and valuable customers by providing outstanding service. For example, if a premium customer is placing an order over the phone, your call center agent knows this and extends an appropriate special offer. Once an order is placed there can be many reasons it may experience a change in status. The customer may decide to ship to a different address or add an item to the order; within your business, there may be a change in inventory availability or the product many be damaged in the warehouse. Using CWSerenade you can easily access and adjust the order and quickly communicate the new order information to customers while keeping your operations running efficiently. Key Features and Benefits: A fully integrated suite of modules for effective management of all aspects of direct commerce Comprehensive warehouse management capabilities including integration with third party solutions Web-based solution through a variety of browsers to support onsite and remote users Customer service functions enable your team to manage the complex behind-the-scenes work such as credit card payment charges and reconciliation, package tracking, held order processing, and refunds. Deep integration with MICROS retail systems including Locate and Relate to seamlessly develop an omni-channel view of the customer and distributed orders Customizable, scalable and reliable to meet the needs to today s high volume retailer Real-time visibility across the transaction life CWSerenade offers a fully integrated suite of modules for managing all aspects of direct commerce transactions including order management, fulfillment, warehousing/ inventory control, customer service, merchandising, marketing, and finance. With these modules sharing a common database, the CWSerenade solution provides real-time visibility to inventory and customer activity throughout the transaction lifecycle. Equally important, the solution can be easily integrated across all points of service including retail locations, the web, catalogs, the contact center, kiosks, and mobile devices. 19

20 Company: MICROS-Retail Support customers efficiently With this high level of integration you can deliver the kind of convenient shopping experience and enhanced services that delight customers, drive revenue growth, and strengthen customer loyalty. For example, you can develop a consistent customer experience across all channels by providing back-order notifications, returns, exchanges, gift-giving options, and real-time service. The customer service functions within CWSerenade also enable your team to manage the complex, behind-the-scenes work such as credit card payment charges and reconciliation, package tracking, held order processing, and refunds. Complete warehouse functions CWSerenade provides comprehensive warehouse management functions or allows for integration with a third party warehouse management system. It supports multiple logical and physical warehouses, looking to the warehouses to reserve inventory and fulfill orders. It supports the use of wireless devices to perform receiving, putaways, inventory transfers, return putaways, primary replenishment, and physical inventory. You can manage all phases of the process, including bar code label printing, from within the application. Deployed in your choice of configurations Capitalizing on the power of Java in a tiered Java EE environment, the CWSerenade database, application server, and operating system are easily configurable to support your unique business processes and policies. The MICROS standards-based solution ensures simplified integration with diverse resources. These integration points may include outsourcing or partner environments, for example, web commerce service providers and payment processors. Real-time visibility across the transaction life CWSerenade offers a fully integrated suite of modules for managing all aspects of direct commerce transactions including order management, fulfillment, warehousing/ inventory control, customer service, merchandising, marketing, and finance. With these modules sharing a common database, the CWSerenade solution provides real-time visibility to inventory and customer activity throughout the transaction lifecycle. Equally important, the solution can be easily integrated across all points of service including retail locations, the web, catalogs, the contact center, kiosks, and mobile devices. MICROS Systems, Inc. provides leading enterprise-wide applications, services and hardware for the hospitality and retail industries. MICROS applications include point of sale, property management, central systems, business intelligence, ecommerce, loyalty, CRM, loss prevention, distributed order management, labor management, inventory management, and merchandise planning solutions. 20

21 Company: OrderDynamics Omni-Channel Retail Enablement OrderDynamics has two underlying applications within our Omni-Channel Commerce Platform: ecommerce Platform (ECP) and Retail Order Management System (OMS). Our Platform is an innovative way for multi-channel retailers to unify the customer experience across all commerce channels. The days of viewing commerce in channel centric terms are over - the industry is now embracing a more holistic view of all channels. At OrderDynamics we are fundamentally aware of the rapid changes occurring within the retail landscape and are constantly transforming our platform to reflect these consumer movements. We believe our Retail OMS is the keystone to enabling an Omni-Channel commerce strategy. An Omni-Channel Commerce strategy ultimately makes it easier and more convenient for consumers to buy from retailers and for retailers to target their customers with consistent and relevant marketing and merchandising. Consumers today are now demanding a seamless shopping experience across all channels and want the most convenient shopping options based on how, where and when they decide to shop. OrderDynamics Omni-Channel focused solution helps to increase customer satisfaction and create new levels of loyalty, profit, and customer lifetime value. OrderDynamics enables seamless integration with inventory, order management, CRM, product catalog, shipping systems, loyalty environments, gift card systems, and warehouse systems. Our business philosophy at OrderDynamics hinges on developing long-lasting partnerships with our clients. The OrderDynamics ecommerce Platform and Order Management System has proven to be an essential tool for adapting to ongoing evolutions in retail environment, including: Showrooming and dominant web-retailers like Amazon. We help merchants leverage their existing retail systems and brand equity to maximize the role of their retail stores in cross-channel shopping. Leverage your brick and mortar footprint to enhance the customer experience while driving revenue growth and operational efficiency. Henry s Camera selected OrderDynamics to incorporate Omni-Channel fulfillment across four consumer sites, a B2B site, and a mobile site. Henry s now offers customers purchase/reserve online - pickup in-store and ship-from-store options. As a result, Henry s has witnessed 70% year-over-year revenue growth and increased conversion rates by over 75%. 21

22 Company: OrderDynamics Omni-Channel Retail Enablement Fully automate your order routing system to fulfill orders from the most efficient location for both you and your customers. JYSK Canada s order fulfillment has been optimized to automatically route orders to the nearest and most efficient distribution center, store location or drop-shipping partner to fulfill from. JYSK has integrated In-Store fulfillment dashboards and shipping center solutions with real-time product inventory across 54 stores throughout Canada. Our Retail Order Management System has been specifically designed for loyalty and reward program integration. We help our clients build repeat business with advanced continuity and retention strategies. One Canada s largest retailers, Shoppers Drug Mart, integrated their national Shopper s Optimum program into our order management backend. This integration has allowed Shoppers Drug Mart to unify the payment, rewards and redemption experience across all retail touch points. Our ecommerce Platform and Retail Order Management System provides retailers with a detailed single view of the customer module utilizing multiple languages and cultural recognition technology. Laura Canada, one the largest women s apparel retailers in Canada, has seamlessly integrated dynamic customer information and order history across their retail stores, website and call center. In addition, OrderDynamics successfully integrated into Laura Canada s existing ERP, SCM and CRM systems. About OrderDynamics Corporation OrderDynamics provides a leading ecommerce Platform and Retail Order Management System for multi-channel retailers. Our platform connects physical retail stores with ecommerce websites and mobile applications through seamless integration of customer data, cross-channel marketing, loyalty programs and existing backend technologies. OrderDynamics Software-as-a-Service (SaaS) deployment model allows retailers to focus their on day-to-day operations while we handle the complexities of managing the IT infrastructure and hosting challenges. In 2013, OrderDynamics was acquired by ecommera Ltd., a market leader in SaaS ecommerce solutions for global retailers across Europe, APAC and North America. ecommera was founded by Andrew McGregor (CEO) and Michael Ross (Chief Scientist) and staffs over 300 people across offices in London, Paris, India, San Francisco, and Dallas. Over the past 5 years, ecommera has consistently ranked as one of the top 30 fastest growing software and solutions businesses in the UK. OrderDynamics proudly powers online ecommerce channels for leading North American retailers such as Henry s Camera, Laura Canada, JYSK, American Diabetes Association, Pilot, Walking on a Cloud, Kitchen Stuff Plus, Town Shoes, The Shoe Company, Bouclair Home, and many more. Together ecommera and OrderDynamics serve close to 70 retailers and branded manufacturers, and are combined responsible for nearly $1 billion annually in gross merchandising revenue. 22

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