Order Management System (OMS)
Definition
An Order Management System (OMS) is software that captures orders from every sales channel and orchestrates how each one is sourced, allocated, fulfilled, and returned across the network.
In Practice
The OMS sits between selling channels (web, stores, marketplaces, EDI) and execution systems (WMS, stores, drop-ship vendors). Its core job is intelligent sourcing: for each order line, decide which node ships it, based on inventory availability, cost, distance, and promised delivery date.
For supply chain teams, the OMS is what makes omnichannel promises real. Distributed order management logic can split an order across two warehouses, route an item to ship-from-store, or hold a backorder against inbound supply — decisions that directly drive fill rate and shipping cost.
Example: a retailer on Manhattan Active Omni receives a two-line web order; the OMS ships one line from the nearest DC and the other from a store 20 miles from the customer, hitting the two-day promise while avoiding a split-shipment air upgrade.
Related Calculators
Related Terms
A Warehouse Management System (WMS) is software that directs and records all activity inside a warehouse — receiving, putaway, picking, packing, and shipping — down to the individual location and unit.
Transportation Management System (TMS)A Transportation Management System (TMS) is software for planning, executing, and auditing freight movements — selecting carriers and modes, building loads, tendering shipments, tracking them, and paying the bills.
Enterprise Resource Planning (ERP)Enterprise Resource Planning (ERP) is integrated software that runs a company's core business processes — finance, purchasing, inventory, manufacturing, and order fulfillment — on a single shared database.