The global market for cloud-based manufacturing is anticipated to reach USD 106.22 billion by 2026, expanding at a compound annual growth rate (CAGR) of 23.2%, according to a recent Statista analysis. This shows how quickly cloud-based solutions have been adopted and how much of an impact they have had on the industrial industry.
According to an IDC poll in the US, 60% of firms see cloud technologies as a key facilitator for digital transformation. Furthermore, after using cloud-based solutions like order management systems, 80% of manufacturers observed increased operational performance.
These statistics highlight the increasing recognition among manufacturing professionals of the transformative potential of cloud-based order management systems.
By leveraging the scalability, flexibility, and accessibility of the cloud, organizations can streamline their order processing, enhance visibility into inventory levels, and improve overall operational efficiency.
We will delve into the benefits of real-time order tracking, automated workflows, and seamless integration with other systems, such as customer relationship management (CRM) and enterprise resource planning (ERP) systems.
By implementing cloud-based order management systems, manufacturers can experience improved order accuracy, faster order fulfillment, reduced manual errors, and enhanced customer service.
We will also discuss the advantages of centralized data management, data analytics capabilities, and the ability to adapt quickly to changing customer demands.
Here is what we shall cover in this post:
- Introduction to Cloud-Based Order Management Systems
- Streamlining Order Processing With Cloud-Based Solutions
- Seamless Integration With Supply Chain Partners
- Improved Customer Satisfaction and Order Fulfillment
- Future Trends in Cloud-Based Order Management Systems
- Key Takeaways
Introduction to Cloud-Based Order Management Systems
Cloud-based order management systems (OMS) are software solutions that enable businesses to effectively manage their order processing and fulfillment operations using cloud computing technology.
These systems provide a centralized platform for businesses to streamline and automate various aspects of the order management process, from order capture to shipment and delivery.
- With a cloud-based OMS, businesses can access and manage their order data from any device with an internet connection, eliminating the need for on-premises servers and infrastructure.
- The software is hosted and maintained by a cloud service provider, offering scalability, flexibility, and real-time data synchronization across multiple locations or channels.
- Cloud-based OMS offers a wide range of features and functionalities designed to streamline the order management process. It typically includes modules for order capture, inventory management, order fulfillment, shipping and tracking, invoicing, and customer relationship management.
- These modules work together to provide a comprehensive view of the entire order lifecycle, from the initial placement of the order to its final delivery.
Benefits of Adopting Cloud-Based Systems in Manufacturing
The adoption of cloud-based systems in manufacturing has become increasingly prevalent in recent years, driven by the need for digital transformation and the desire for more efficient and flexible operations.
Cloud-based systems offer numerous benefits to manufacturing organizations, including:
Cost Savings: Cloud-based systems eliminate the need for on-premises infrastructure and the associated costs of hardware, maintenance, and upgrades. Instead, manufacturers pay a subscription fee for the cloud service, which is typically more cost-effective and predictable.
Additionally, cloud-based systems enable manufacturers to scale resources up or down as needed, avoiding the expense of overprovisioning or underutilizing hardware.
Flexibility and Scalability: Cloud-based systems provide manufacturers with the flexibility to adapt to changing business needs. They can easily scale resources, such as storage and computing power, to accommodate fluctuations in production volume or business growth.
This scalability enables manufacturers to be more agile and responsive to market demands.
Remote Access and Collaboration: Cloud-based systems can be accessed from anywhere with an internet connection, allowing employees to work remotely and collaborate across different locations. This flexibility is particularly beneficial for global manufacturing organizations or those with distributed teams.
Remote access and collaboration capabilities streamline communication and decision-making processes, improving efficiency and reducing lead times.
Real-Time Data and Analytics: Cloud-based systems facilitate the collection, storage, and analysis of real-time data from various sources, such as machines, sensors, and production lines. Manufacturers can leverage this data to gain valuable insights into production performance, quality, and efficiency.
Real-time analytics enable timely decision-making, process optimization, and predictive maintenance, ultimately improving overall operational effectiveness.
Enhanced Security and Data Protection: Cloud service providers invest heavily in advanced security measures to protect their infrastructure and customer data. This includes robust encryption, access controls, regular backups, and disaster recovery mechanisms.
By leveraging cloud-based systems, manufacturers can benefit from the expertise and resources of the cloud provider, ensuring high levels of security and data protection.
Integration and Connectivity: Cloud-based systems offer seamless integration capabilities, allowing manufacturers to connect various business systems, such as Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and Supply Chain Management (SCM).
This integration streamlines data flow and eliminates silos, enabling better visibility, collaboration, and decision-making across the organization.
Faster Deployment and Updates: Cloud-based systems are typically quick to deploy, as they do not require extensive on-premises installations or configurations.
Updates and patches are managed by the cloud provider, ensuring manufacturers have access to the latest features and enhancements without disruptions or additional costs.
Sustainability and Environmental Benefits: By adopting cloud-based systems, manufacturers can reduce their physical infrastructure, leading to energy savings and a smaller carbon footprint.
Cloud-based systems are hosted in data centers that are designed for energy efficiency and employ measures to minimize environmental impact.
Streamlining Order Processing With Cloud-Based Solutions
Streamlining order processing with cloud-based solutions involves several key steps. Here are the steps to consider:
- Assess Your Order Processing Workflow: Evaluate your existing order processing workflow and identify areas that can be streamlined or automated. Understand the specific pain points, bottlenecks, and inefficiencies in your current process.
- Choose the Right Cloud-Based Order Management System: Research and select a cloud-based order management system that aligns with your business requirements. Consider factors such as scalability, integration capabilities, ease of use, and security. Look for features like centralized order management, real-time visibility, automation, and reporting/analytics.
- Data Migration and Integration: Ensure a smooth transition by migrating your existing order data to the cloud-based solution. Work with the vendor to establish integration with other systems such as inventory management, CRM, and ERP. Seamless data integration enables a holistic view of customer information, inventory levels, and financial data.
- Customize and Configure the System: Customize the order management system to align with your specific business needs. Set up workflows, define order processing rules, configure pricing, promotions, and discounts, and establish user roles and permissions. Ensure that the system is configured to streamline your unique order processing requirements.
- Training and Onboarding: Provide comprehensive training to your employees on how to use the cloud-based order management system effectively. Train them on entering orders, tracking order status, managing inventory, and resolving order-related issues. Ensure that everyone is comfortable with the new system and understands the benefits of streamlining order processing.
- Test and Optimize: Conduct thorough testing of the system to ensure that it functions as expected and integrates smoothly with other systems. Identify any issues or areas for improvement and work closely with the vendor to address them. Continuously optimize the system based on feedback and evolving business needs.
- Implement Automation and Workflows: Leverage the automation capabilities of the cloud-based solution to streamline manual tasks and reduce errors. Set up automated order routing, notifications, and approval processes. Define workflows that eliminate unnecessary steps and ensure orders move through the system seamlessly.
- Monitor and Measure Performance: Continuously monitor and measure the performance of your order processing using the analytics and reporting capabilities of the cloud-based solution. Keep track of key metrics such as order cycle time, order accuracy, on-time delivery, and customer satisfaction. Identify areas of improvement and take proactive actions to optimize order processing.
- Regularly Review and Update: As your business evolves, regularly review and update your order processing workflows and system configurations. Stay updated with new features and functionalities offered by the cloud-based solution. Seek feedback from employees and customers to identify areas where further streamlining can be achieved.
- Foster Collaboration and Communication: Encourage collaboration and communication between different departments involved in order processing. Ensure that there is clear communication and coordination between sales, customer service, inventory management, and fulfillment teams. Use the cloud-based system's collaboration features to facilitate seamless communication and information sharing.
Real-Time Visibility and Tracking of Orders
The process of real-time visibility and tracking of orders in cloud-based solutions involves several key steps. Here's a breakdown of the process:
Capture Order Information: The process begins with the capture of order information from various sources, such as e-commerce platforms, sales channels, or customer service representatives.
This information typically includes customer details, order items, quantities, pricing, and shipping preferences.
Centralized Order Management: The order information is stored and managed in a centralized order management system within the cloud-based solution.
This system acts as a single source of truth for all order-related data, ensuring data integrity and consistency.
Real-Time Updates: As the order progresses through various stages, real-time updates are made to the order status within the cloud-based system. These updates include order confirmation, fulfillment status, shipping updates, and delivery notifications.
These updates are typically triggered by automated processes or manual inputs from different stakeholders involved in the order fulfillment process.
Order Tracking and Tracing: Customers and relevant stakeholders can track and trace orders in real-time through the cloud-based system. This can be done through customer portals, self-service platforms, or mobile applications.
The system provides visibility into the current status, estimated delivery dates, and any relevant tracking numbers or shipment details.
Notifications and Alerts: The cloud-based solution can generate automated notifications and alerts to keep customers and internal teams informed about order updates.
This can include order confirmation emails, shipping notifications, delays, or changes to the delivery schedule. These notifications can be customized based on customer preferences or internal workflows.
Integration with Logistics Partners: The cloud-based solution can integrate with external logistics partners to fetch real-time shipping and tracking information.
This integration enables seamless visibility into the movement of orders through the supply chain, providing accurate and up-to-date information to customers and internal teams.
Reporting and Analytics: The cloud-based system provides reporting and analytics capabilities to analyze order data, identify trends, and track key performance indicators.
This allows businesses to gain insights into order fulfillment metrics, such as order cycle time, on-time delivery rates, and customer satisfaction. These insights can be used to optimize processes and make data-driven decisions.
Exception Management: The cloud-based solution can identify and flag exceptions or issues that may arise during the order fulfillment process, such as inventory shortages, shipping delays, or quality concerns.
This allows businesses to proactively address these exceptions and communicate with customers to manage expectations.
Seamless Integration With Supply Chain Partners
Seamless integration with supply chain partners through cloud-based order management systems is a crucial aspect of optimizing supply chain operations. Here are the steps involved in achieving this integration:
System Compatibility Assessment: Evaluate the compatibility of your cloud-based order management system with the systems used by your supply chain partners.
Determine if the systems can communicate and exchange data seamlessly.
Assess the capabilities of your order management system to integrate with external systems through application programming interfaces (APIs), web services, or other integration methods.
Data Mapping and Standardization: Identify the data elements that need to be exchanged between your order management system and the systems of your supply chain partners. Map the data fields and ensure that there is a standardized format for data exchange.
This includes information related to orders, inventory levels, shipping details, and other relevant data.
Establish Data Exchange Protocols: Define the protocols and procedures for data exchange with your supply chain partners. This includes determining the frequency and timing of data transfers, the file formats or data formats to be used, and any specific security requirements.
Ensure that both parties agree on these protocols to facilitate smooth integration.
API Integration or EDI Setup: Depending on the capabilities of your cloud-based order management system and the systems used by your supply chain partners, set up API integration or electronic data interchange (EDI) connections.
APIs allow for real-time data exchange, while EDI enables the exchange of structured data files. Work closely with your IT team or integration specialists to establish these connections securely and efficiently.
Test and Validate Integration: Conduct thorough testing of the integration between your order management system and the systems of your supply chain partners.
Verify the accuracy and completeness of data transfers, ensuring that the information exchanged is consistent and reliable. Address any issues or discrepancies that arise during the testing phase.
Cost Savings and Reduced Infrastructure Requirements
Cloud-based order management systems offer significant cost savings and reduce infrastructure requirements for businesses. Here are some key ways in which these systems contribute to cost efficiency:
- Elimination of On-Premises Infrastructure: Cloud-based order management systems eliminate the need for businesses to invest in expensive on-premises infrastructure, such as servers, hardware, and networking equipment. Instead, businesses can leverage the infrastructure provided by the cloud service provider, reducing capital expenditure and ongoing maintenance costs.
- Pay-as-You-Go Pricing Model: Cloud-based systems typically operate on a pay-as-you-go pricing model. This means that businesses only pay for the resources and features they use, based on their specific needs. This eliminates the need for upfront investments in software licenses or long-term contracts, allowing businesses to align their expenses with their actual usage.
- Reduced IT Support and Maintenance: With cloud-based order management systems, businesses no longer need to worry about system updates, backups, and routine maintenance tasks. The cloud service provider takes care of these responsibilities, freeing up valuable IT resources. This reduces the need for dedicated IT staff or external IT support, resulting in cost savings and increased operational efficiency.
- Automatic Software Updates: Cloud-based systems provide automatic software updates, ensuring that businesses always have access to the latest features and security enhancements. These updates are typically managed by the cloud service provider, eliminating the need for businesses to manually install and maintain updates. This not only saves time but also ensures that businesses can benefit from the latest innovations without additional costs.
- Remote Access and Collaboration: Cloud-based systems enable remote access to order management functionalities, allowing employees to work from anywhere and collaborate seamlessly. This eliminates the need for physical office spaces and supports remote work arrangements, reducing overhead costs associated with office rentals and utilities.
- Efficient System Integration: Cloud-based order management systems often have built-in integration capabilities, allowing businesses to connect their order management system with other business systems, such as accounting software, CRM, or logistics platforms. This integration eliminates the need for costly custom integration projects and ensures seamless data flow between systems.
Improved Customer Satisfaction and Order Fulfillment
Cloud-based order management systems play a crucial role in improving customer satisfaction and order fulfillment for businesses. Here are several ways in which these systems contribute to enhancing customer satisfaction and ensuring efficient order fulfillment:
Faster Order Processing: Cloud-based order management systems enable faster order processing by automating various tasks. From order placement to order confirmation, these systems streamline the entire order management process, reducing manual intervention and eliminating time-consuming paperwork.
As a result, businesses can process orders more quickly, ensuring faster order fulfillment and improved customer satisfaction.
Inventory Availability and Product Information: Cloud-based order management systems integrate with inventory management systems, providing accurate and real-time inventory availability information.
When customers place orders, they can see whether the desired products are in stock, eliminating the frustration of placing orders for out-of-stock items. Additionally, these systems can provide detailed product information, such as specifications, images, and customer reviews, enabling customers to make informed purchasing decisions.
Personalized Customer Experience: Cloud-based systems allow businesses to collect and analyze customer data, enabling personalized and targeted marketing efforts. By understanding customer preferences, purchase history, and browsing behavior, businesses can offer personalized product recommendations, promotions, and discounts.
This level of personalization enhances the customer experience and increases customer satisfaction.
Order Accuracy and Error Reduction: Cloud-based order management systems automate order entry and processing, reducing the chances of human errors and order inaccuracies. By eliminating manual data entry and automating order validation processes, businesses can ensure that orders are accurate and free from errors.
This improves order fulfillment accuracy, reducing the occurrence of incorrect or incomplete shipments and minimizing customer dissatisfaction.
Efficient Communication and Customer Support: Cloud-based systems facilitate efficient communication between businesses and customers. Customers can easily reach out to businesses through various channels, such as email, chatbots, or self-service portals, to inquire about their orders, request changes, or seek assistance.
Prompt and effective communication enhances customer satisfaction and builds trust in the business's ability to address customer needs.
Streamlined Returns and Exchanges: Cloud-based order management systems simplify the returns and exchanges process. These systems allow customers to initiate returns or exchanges online, generating return labels and tracking information.
By providing a seamless and hassle-free returns process, businesses can enhance customer satisfaction, leading to positive customer experiences and increased loyalty.
Analytics for Continuous Improvement: Cloud-based systems provide valuable analytics and reporting capabilities. Businesses can analyze order data, customer behavior, and other metrics to gain insights into order fulfillment performance. These insights can be used to identify areas for improvement, optimize processes, and enhance customer satisfaction over time.
Data Security and Compliance in Cloud-Based Order Management
Data security and compliance are critical considerations when implementing cloud-based order management systems. As organizations increasingly rely on cloud technologies to manage their order processes, it is important to ensure that sensitive customer data and business information are adequately protected.
Here are some key aspects related to data security and compliance in cloud-based order management:
- Secure Infrastructure: Cloud service providers (CSPs) offer robust security measures to protect data stored and processed in the cloud. They employ encryption techniques to safeguard data both in transit and at rest. Additionally, CSPs implement firewalls, intrusion detection systems, and other security measures to prevent unauthorized access to the infrastructure.
- Data Encryption: Encryption is a critical component of data security in cloud-based systems. Data encryption ensures that information is transformed into an unreadable format, making it unreadable and useless to unauthorized parties. Encryption is used during data transmission, storage, and even in backups to provide an additional layer of protection.
- Compliance with Regulations: Organizations must ensure that their cloud-based order management systems comply with relevant regulations and industry standards. For example, in certain industries such as healthcare or finance, compliance with regulations like HIPAA or PCI-DSS is necessary. It is important to choose a cloud service provider that offers compliance certifications and supports adherence to applicable regulations.
- Data Backup and Disaster Recovery: Cloud-based order management systems often provide built-in data backup and disaster recovery capabilities. Regular backups ensure that data can be restored in case of data loss or system failures. Organizations should have a comprehensive backup and recovery strategy in place to minimize the risk of data loss and ensure business continuity.
- Monitoring and Auditing: Cloud-based systems enable monitoring and auditing of user activities and system logs. By monitoring access logs and system events, organizations can detect and respond to any suspicious or unauthorized activities. Regular audits and assessments help identify vulnerabilities and ensure that security controls are effective and up to date.
- Vendor Selection and Due Diligence: When selecting a cloud service provider for order management, organizations should conduct thorough due diligence. It is important to assess the provider's security practices, certifications, and track record. Reviewing their data security policies, incident response plans, and compliance with relevant regulations is essential.
- Employee Training and Awareness: Organizations should invest in employee training and awareness programs to educate staff about data security best practices, proper handling of sensitive information, and the risks associated with data breaches. Regular training sessions can help foster a security-conscious culture within the organization.
Future Trends in Cloud-Based Order Management Systems
Cloud-based order management systems have already transformed the way organizations manage their order processes, but the technology continues to evolve. Here are some future trends to watch for in cloud-based order management systems:
Artificial Intelligence (AI) and Machine Learning (ML) Integration
AI and ML technologies are increasingly being integrated into order management systems. These technologies can analyze large volumes of data, identify patterns, and make accurate predictions.
AI-powered algorithms can optimize order routing, demand forecasting, and inventory management, resulting in improved efficiency and customer satisfaction.
Internet of Things (IoT) Integration
IoT devices are becoming more prevalent in supply chain operations, and their integration with cloud-based order management systems is on the rise. IoT sensors can provide real-time data on inventory levels, shipment status, and environmental conditions.
This data can be seamlessly integrated with the order management system, allowing for proactive decision-making and faster response times.
Blockchain for Transparency and Traceability
Blockchain technology offers enhanced transparency and traceability in supply chain operations. By implementing blockchain in cloud-based order management systems, organizations can create a decentralized and immutable ledger that records all transactions and movements within the supply chain.
This helps to ensure authenticity, track product provenance, and improve trust among supply chain partners.
Mobile and Omni-Channel Capabilities
With the increasing popularity of mobile commerce and omnichannel sales, cloud-based order management systems are evolving to support these channels. Future systems will offer seamless integration with mobile devices, enabling customers to place orders from their smartphones and providing real-time updates on order status.
Additionally, omnichannel capabilities will allow customers to order online and pick up in-store or have items shipped from the nearest available location.
Predictive Analytics for Demand Forecasting
Predictive analytics capabilities will continue to advance in cloud-based order management systems. These systems will leverage historical data, market trends, and external factors to generate accurate demand forecasts.
By predicting demand patterns, organizations can optimize inventory levels, improve order fulfillment, and reduce stockouts and overstock situations.
Enhanced Data Security and Privacy
As data privacy concerns continue to grow, cloud-based order management systems will place even greater emphasis on data security and privacy.
Advanced encryption techniques, data anonymization, and strict access controls will be implemented to safeguard sensitive customer and business information. Compliance with data protection regulations, such as GDPR and CCPA, will be a top priority for cloud service providers.
Integration with Advanced Robotics and Automation
Cloud-based order management systems will integrate with advanced robotics and automation technologies to streamline warehouse operations.
Robotics process automation (RPA) and autonomous mobile robots (AMRs) can automate order picking, packing, and shipping processes, improving accuracy, speed, and efficiency.
How Deskera Can Assist You?
Deskera ERP and MRP system can help you:
- Manage production plans
- Maintain Bill of Materials
- Generate detailed reports
- Create a custom dashboard
Deskera ERP offers robust capabilities for order management, enabling businesses to efficiently manage their sales orders, streamline order processing, and enhance customer experiences. Here's how Deskera ERP can help in cloud-based order management:
- Centralized Order Processing: Deskera ERP provides a centralized platform where businesses can receive, manage, and process orders from various sales channels, including e-commerce platforms, marketplaces, and direct sales.
- Real-Time Order Tracking: Order management in Deskera ERP allows businesses and customers to track order statuses and shipment details in real time. This transparency enhances customer satisfaction and reduces inquiries.
- Multi-Channel Integration: Deskera ERP integrates with various sales channels, enabling seamless order synchronization across different platforms. This prevents overselling, reduces manual data entry, and ensures order accuracy.
- Automated Order Processing: Deskera ERP automates order processing workflows, from order creation and approval to invoicing and fulfillment. This reduces manual intervention, minimizes errors, and accelerates order fulfillment.
- Inventory Visibility: Order management is linked to inventory data, providing visibility into available stock levels. This helps prevent stockouts, allocate inventory accurately, and manage customer expectations.
Deskera MRP allows you to closely monitor the manufacturing process. From the bill of materials to the production planning features, the solution helps you stay on top of your game and keep your company's competitive edge.
Deskera Books enables you to manage your accounts and finances more effectively. Maintain sound accounting practices by automating accounting operations such as billing, invoicing, and payment processing.
Deskera CRM is a strong solution that manages your sales and assists you in closing agreements quickly. It not only allows you to do critical duties such as lead generation via email, but it also provides you with a comprehensive view of your sales funnel.
Deskera People is a simple tool for taking control of your human resource management functions. The technology not only speeds up payroll processing but also allows you to manage all other activities such as overtime, benefits, bonuses, training programs, and much more. This is your chance to grow your business, increase earnings, and improve the efficiency of the entire production process.
Cloud-based order management systems are revolutionizing manufacturing operations by providing advanced capabilities and transforming traditional processes. This article explored the key aspects of how cloud-based order management systems are driving innovation and optimizing manufacturing operations.
We discussed the benefits of cloud-based order management systems, including scalability, flexibility, and cost-effectiveness. By leveraging cloud technology, manufacturing companies can access robust order management functionalities without the need for extensive hardware and infrastructure investments.
We explored how cloud-based systems streamline order processing, from order placement to fulfillment. These systems provide real-time visibility into inventory levels, streamline order entry processes, automate order tracking, and enable efficient order fulfillment, resulting in improved customer satisfaction and reduced order processing time.
With access to real-time sales data, market trends, and customer insights, manufacturing companies can make data-driven decisions to optimize inventory levels, minimize stockouts, and reduce carrying costs.
Cloud-based systems also facilitate effective demand planning, helping companies align production and procurement with customer demand.
Manufacturing executives and employees can access the order management system from anywhere, at any time, using various devices. This flexibility enhances productivity, enables faster response times, and facilitates efficient collaboration across different locations.
- Data analytics and reporting capabilities empower manufacturers to gain insights, identify trends, and drive continuous improvement.
- Cloud-based systems provide remote access and mobility, enhancing productivity and facilitating efficient collaboration.
- Enhanced security measures ensure the protection and confidentiality of sensitive information.
- The scalability and adaptability of cloud-based systems accommodate business growth and changing needs.
- Challenges such as data migration and system integration can be overcome with proactive planning and partnering with experienced service providers.
- Cloud-based systems improve operational efficiency and enable manufacturers to respond quickly to market demands.
- They enhance customer satisfaction by providing real-time order tracking and faster order fulfillment.
- Manufacturers can make data-driven decisions and optimize inventory levels, reducing costs and minimizing stockouts.
- Supply chain visibility and collaboration drive efficient coordination with suppliers and logistics partners.
- Cloud-based systems enable manufacturers to stay competitive, drive innovation, and achieve operational excellence in today's dynamic business landscape.