How to Calculate ROI for Order Management Platforms

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Last updated on August 01, 2017

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If you’re reading this post, then you’re probably considering upgrades to your commerce technology stack. Retail operations are becoming increasingly complex. Perhaps your ecommerce business has multiple warehouses and sells through your own sites and through marketplaces. Or maybe you’re managing brick and mortar stores and an ecommerce website. Or two.

Either way, keeping track of your online orders and your company-wide inventory is a challenge. Leading to a host of operational problems:


  • Inventory is too high (and inventory turns too low), tying up your cash in working capital.
  • Ecommerce returns are increasing because of an uptick in inaccurate orders.
  • Your warehouses struggle to stay ahead, with greater complexity straining the system.
  • CSRs are bogged down, using multiple systems to modify orders and resolve issues.

You already know that Order management software will give your company the enterprise-wide view of orders and inventory needed to turn the tide in your direction. But what’s it worth to you?

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Pulse Commerce’s Order Management System (OMS) ROI Calculator is a great tool to help you figure out how much an OMS can help you increase profits, and what you’ll need to do to make it happen.

An enterprise order & inventory platform drives profit improvement a number of ways:

  • Inventory Efficiency: Lower average inventory, and higher inventory turns, driven by inventory optimization.
    • Real–Time, Enterprise-wide visibility reduces need for “just in case” inventory
    • Intelligent Order Routing reduces “slow inventory”
    • Greater order accuracy reduces returns and reduces “dead inventory”
    • Ability to “ship from store” enables you to fulfill orders when warehouse is out of stock
  • Fulfillment Efficiency: Reduction in work effort driven by higher order accuracy
    • Higher order accuracy reduces returns
    • Higher address accuracy reduces shipments to incorrect addresses
  • Employee Efficiency: Productivity increases
    • Warehouses: More efficient order assignments, packing slips and shipping labels
    • Contact Centers: Faster issue resolution, because CSRs are armed with a single view of all orders, inventory, customers and fulfillment in real time.

And we’ve done the calculations for you!

  • Reduction in average inventory increases cash on hand and cuts working capital expenses.
  • Lower fulfillment error rates reduce return shipping costs, reduce warehouse effort, and also cut down on “dead stock.”
  • Employees save time with more efficient processes.

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We have a couple of additional tools for you if you’re actively shopping for an OMS.

 

Written By:

Jeremy Stewart

Jeremy Stewart

Jeremy Stewart leads customer success at Cahoot, helping merchants achieve high-performance logistics through smart technology and process optimization. With a background in both ecommerce operations and client services, Jeremy ensures that every merchant using Cahoot gets measurable results—whether they’re scaling from one warehouse to many or managing complex returns.

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