Home Insights Articles Beyond multichannel: The competitive edge of omnichannel order management

Beyond multichannel: The competitive edge of omnichannel order management

Vlad Pertu

Panchatapa Deb

Jun 13, 2025 • 11 min read

Inventory management system featuring a central storefront surrounded by delivery vans, shopping carts, stacked packages, and digital screens. The scene depicts the integration of online and physical retail, logistics, and automated inventory processes, all connected within a seamless, technology-driven supply chain

Table of Contents

Why omnichannel order management matters
What is omnichannel order management?
What’s the difference between multichannel and omnichannel?
Benefits of omnichannel order management systems
Effective omnichannel OMS and supply chain management strategy
Omnichannel order management examples
What's next for omnichannel order management?
Choosing the right omnichannel order management system
Closing thoughts

Why omnichannel order management matters

50%

of your shoppers will switch to a competitor if your delivery times take longer than expected

30%

higher conversion rates are yours for the taking with inventory visibility and flexible fulfillment options

89%

of customers will stick with you if you have an omnichannel strategy compared to 33% without

You know the feeling: you walk into a store only to find out that the product you saw online is out of stock! This is one of the most common and problematic experiences for customers who shop multichannel retail. The problem for you? Disconnected sales channels, lost income, frustrated customers, and a damaged brand reputation. Why? Because of the limitations of multichannel retail, where each sales channel operates independently, resulting in siloed customer experiences.

Enter omnichannel retail and omnichannel order management systems. A more integrated and customer-centric framework that breaks down silos, and creates a comprehensive, consistent, and convenient customer journey across all their sales channels and touchpoints.

Distributed order management, showing order source channels (online commerce, phone, in-store, marketplace, B2B, B2B2C, social/game), inventory sources (distribution centers, stores, suppliers, manufacturing), inventory management (stock at hand, future stock, kits, non-stockable items), sourcing rules (buffers, costs, sustainability, demand, backorders), and fulfillment methods (home delivery, ship from store, collect from store or locker, curbside pickup, outsourced fulfillment, dropshipping). Central features include order visibility, inventory visibility, and event-driven integrations. — *Distributed order management: key features, sources, and fulfillment methods*

In this blog, we’ll show how omnichannel OMS facilitates unified, consistent, and revenue-driving retail business operations and customer experiences.

What is omnichannel order management?

We know that 73% of modern shoppers explore multiple avenues before buying a product¹. We also know that they demand (not just expect) real-time inventory visibility, flexible fulfillment options, and personalized engagement on all sales channels.

Add to this the fact that global retail e-commerce sales are predicted to surpass $6.4 trillion by 2029, indicating that e-commerce is undeniably poised for innovation and expansion². The reality is that retailers must be prepared to adapt as technology advances and consumer expectations shift.

An omnichannel order management systems (OMS) connects online and offline sales channels operations to deliver on these demands. Omnichannel order management systems are the true workhorse of the commerce tech ecosystem, offering a full toolbox of inventory, logistics, order, customer experience, and operational tools.

*The omnichannel market for retail commerce is expected to grow from $6.57 billion in 2024 to $7.52 billion in 2025 at a CAGR of 14.4%³*

What’s the difference between multichannel and omnichannel?

While multichannel retail businesses are traditional (i.e., “outdated”) in their approach, omnichannel order management systems are more technologically advanced. The difference has important implications for inventory management and customer experience.

Let’s take a look at some of those differences:

Feature	Multichannel	Omnichannel
Inventory management	Separate pool of stock, no real-time sync	Centralized, multi-channel inventory visibility
Customer data	Disconnected, inconsistent	Unified profile, real-time insights
Fulfillment methods	Limited cross-channel options	BOPIS, ship-from-store, same-day delivery, etc.
Customer experience	Fragmented and inconsistent	Seamless, personalized, engaging

IMS and OMS capabilities in hexagonal blocks. IMS features (green) include sourcing rules, available to sell, reservation, stock buffers, inventory management, and available to promise. OMS features (orange) include order management, order orchestration, fulfilment orchestration, return orchestration, order history, and customer communication. Each capability is represented by an icon — *Core capabilities of inventory and order management systems (IMS and OMS)*

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Benefits of omnichannel order management systems

The true value of omnichannel vs. multichannel lies in the keyword, “unity”. And it comes in many different forms:

#1: Real-time inventory visibility and demand forecasting

The ever-frustrating existence of inaccurate stock data is the leading cause of cart abandonment and missed sales. To quell this frustration, an AI-powered omnichannel OMS provides true insights into inventory, including real-time stock updates across stores, warehouses, and fulfillment centers. Their outcomes include:

Real-time inventory visibility across multiple channels and locations: Delight your customers with a unified, up-to-date view of inventory levels in stores, warehouses, and online sales channels. Help inventory teams with accurate order fulfillment data that reduces the risk of overselling or stock discrepancies.
Prevent stockouts and overstocking: Say goodbye to stockouts and excess inventory costs as automated inventory tracking keeps a watchful eye over your stock for optimal levels at all times.
Demand forecasting for proactive replenishment: Let advanced analytics and AI-powered demand forecasting do the heavy lifting through buying pattern predictions, maintaining optimal inventory levels, prepare for seasonal spikes or unexpected surges, and automate replenishment.
Just-in-time inventory practices: Reduce storage costs and ensure products arrive just as they are needed, by aligning inventory replenishment closely with actual demand.
Adapt to changing market conditions: Keep up with the times and adjust your strategies across various sales channels to address demands and trends with real-time data analytics.

Demand sensing and forecasting pipeline, with use cases like financial planning, inventory allocation, and price optimization. The solution flow includes input (data ingestion, cleaning, user settings), pre-processing (feature engineering, aggregations), modeling (model training, evaluation), post-processing (forecast aggregation, uncertainty estimation), and outputs such as short-term, long-term, probabilistic, attribute-based, hierarchical, and cross-effect forecasts. Capabilities include demand forecasting, probabilistic and hierarchical forecasting, and cross-effects forecasting. — *Demand sensing and forecasting pipeline for retail planning and optimization*

The impact? Future-proof scalability, flexibility, and most importantly, cost-efficiency. So much so that you can reduce lost sales and product unavailability by up to 65%⁴ with AI-driven forecasting and real time inventory management.

#2: Order routing, orchestration, and flexible fulfillment

A McKinsey study found that nearly 50%⁵ of shoppers will switch to a retailer with faster delivery times if their usual retailer takes longer than expected.

You will hear it over and over again: customers expect flexibility in their online shopping experiences. Without real-time inventory availability, relevant recommendations, and convenient buying options at checkout, you won’t even have time to wish them well on their journey to your competitors. Omnichannel OMS offers real-time inventory updates and a diverse range of fulfillment options to suit their preferences and needs.

The result? Drive high conversion rates, reduce abandoned carts, and increase top-line sales.

Frictionless transactions (BOPIS, Ship-from-Store, Curbside, Same-Day Delivery): Let customers choose fulfillment methods aligned with their needs (e.g., BOPIS: buy online and in store pickup) for immediacy or same-day delivery for urgency, while reducing shipping costs, shortening delivery timelines, and driving additional in store sales.
Order routing and orchestration for optimized fulfillment: AI-driven systems analyze real-time data (inventory, location, shipping costs) to automatically route orders to the most efficient fulfillment source, from warehouses and stores to third-party partners.
Cost-effective order fulfillment based on proximity, inventory, and shipping costs: Avoid costly expedited shipping methods or stockouts, minimize shipping expenses and transit times, and keep those customers smiling by prioritizing fulfillment operations from locations closest to the customer with sufficient stock.
Dynamic workload balancing across fulfillment centers: Bottlenecks and overtime costs be gone! Distribute orders across facilities based on capacity, labor availability, and operational constraints, while maintaining consistent service quality.
Timely and reliable deliveries through dynamic re-routing: Take your eye off the clock as customer orders are automatically rerouted to alternate fulfillment centers or carriers in real time during disruptions (e.g., stockouts, delays), clinching on-time delivery and customer trust.

How an inventory management system links online and physical sales channels, customer support, and supply and fulfillment sources (distribution centers, stores, 3PL). The system manages availability, promises, safety stock, demand, supply, and order sourcing, integrating with product/PLM, locations, and order management systems. — *Inventory management system connecting sales channels, supply, and fulfillment*

The impact? Drive high conversion rates (up to 30%⁶), reduce abandoned carts, and increase top-line sales, all thanks to inventory visibility and flexible fulfillment options.

#3: Enhanced customer experience

Meeting your customers’ lofty service expectations builds loyalty and increases average order value. The customer is king (or queen), and with CRM (customer relationship management) integration into omnichannel OMS, you can personalize customer experiences deeply and get rid of friction.

Personalized interactions: Consolidated customer data facilitates tailored recommendations and targeted promotions based on purchase history and preferences. It can positively affect multiple sales channels.
Consistent customer satisfaction & experiences: Customers get the exact pricing, product availability, and service quality when shopping online, in store, or via mobile apps.
Increase conversion rates: Seamless shopping experiences across multiple channels diminish purchase barriers and lead to higher conversion rates.
Efficient issue resolution: Centralized order management ensures customer inquiries are addressed promptly and effectively, reducing dissatisfaction and increasing loyalty.
Reduce abandoned carts: We said it before, and we’ll say it again. Real time inventory visibility and flexible fulfillment options, such as BOPIS, minimize cart abandonment and make the customer journey from discovery to delivery quick and convenient.
Cross-selling and upselling: Never underestimate the value of cross-selling and upselling opportunities to boost revenue with consistent messaging across multiple channels.

The impact? A 5% increase in customer retention can boost profits by up to 95%—a testament to the power of a well-orchestrated order management⁷.

#4: Returns management and exchange automation

Being able to return products quickly and conveniently is as important as meeting customer demands. While reverse logistics presents difficulties for retailers, an omnichannel order management system can streamline this complexity through smart automation.

Simplify reverse logistics with automated workflows: Back it up with an automated returns process that cuts handling time and costs for faster restocking or resale of returned products, all while avoiding operational disruptions.
Omnichannel returns (BORIS) for customer convenience: Put more control in your customers’ hands to perform self-serve returns online and in-store (Buy Online, Return In Store), giving them the flexibility and convenience that keeps them around for longer.
Transparent communication on return status: Keep customers in the know, on demand, with real-time updates on their return status, resulting in better post-purchase experiences and greater trust.
Increased customer retention through seamless returns: Meet customer expectations for convenience with a smooth, hassle-free returns process that keeps them coming back for more.

The impact? Exceptional customer convenience and loyalty, driving up to 85%⁸ additional in-store sales from returns and 40%⁹ higher customer retention rates.

#5: Operational efficiency and integration

If you have numerous fulfillment centers, you’re likely familiar with the associated logistical complexities, higher expenses, and more frequent mistakes. The great news is that AI-driven omnichannel order management systems automate workflows, optimize routing, and improve visibility. Key cost and complexity killers include:

Automated order processing and inventory updates: Keep your stock in order across all sales channels with real-time inventory level updates, and reduce delays while customer orders are automatically processed.
Reduced manual errors and improved efficiency: Remove human errors from the inventory and order management equation to cancel the risk of costly mistakes, reduce waste, and expedite operations for more reliable fulfillment.
Integration with third-party logistics and fullfillment providers: Create continuous and consistent connections with external fulfillment partners and online marketplaces to expand fulfillment capacity, and to reach more customers, more efficiently.
Marketplace synchronization and accurate inventory updates: Maintain profitable relationships with all sales platforms (like Amazon or eBay) through consistently updated inventory data that prevents overselling and maintains customer trust.
Automated shipment tracking and invoicing: Automatic order shipment tracking on sales channels and invoice generation provide transparency for customers and reduce administrative workload for staff.
Better fulfillment network scalability and reach: Extend your digital hand across multiple locations, into new markets, and customer segments to scale operations and expand your fulfillment capabilities.

Order management system where Commerce (SFCC) and Retail POS connect via an API and integration layer (OME IAL) to Fluent Commerce modules (Products, Inventory, Orders/Returns, Customers, Locations, Fulfilments). The system exchanges data with external services (PIM, ERP, 3PL, PSP, Domain Services) through Kafka Events and Batch DCL. — *Order management system integration with commerce, retail, and external services*

The impact? Cost savings and reduced inefficiencies. Those who implement strong omnichannel order management strategies experience a 7.5% annual reduction in cost per contact, significantly outperforming those with weaker approaches, which see only 0.2%⁹.

Effective omnichannel OMS and supply chain management strategy

It’s clear that omnichannel order management systems can improve inventory accuracy, fulfillment speed, and customer satisfaction. But how can you turn this capability into a scalable, long-term advantage? With a clear omnichannel order management strategy and a strong supply chain system (which involves coordinating suppliers, inventory, logistics, and fulfillment to ensure products are delivered efficiently and cost-effectively from origin to customer). A successful omnichannel order management strategy connects the dots across:

Inventory, order, and fulfillment operations
Customer data, loyalty, and engagement tools
Third-party systems such as 3PLs, marketplaces, and payment providers
AI-driven optimization for routing, forecasting, and personalization

This strategic foundation empowers retailers to move beyond short-term wins and unlock sustainable value across the entire commerce lifecycle and sales channels.

Omnichannel order management examples

Explore Grid Dynamics case studies to see the real impact of omnichannel order management system optimization.

GrandVision’s omnichannel OMS implementation reduces order delays on online retail channels by 73%

This global optical retailer with eight brands operating in four countries struggled to manage diverse order types, including store-to-store, click-and-collect, and home delivery. We implemented a digital omnichannel order management solution to streamline their workflows, enable omnichannel inventory visibility, and optimize their production facilities. Result: reduced manufacturing lead times by 33%, order delays by 73%, and edging breakages by 69%.

Order management system (OMS) with an integration layer (IAL) containing API manager, message broker, Apache Camel, database, monitoring, security, and scalability. The OMS connects to external systems: commercetools, POS, CRM on the left, and SAP ERP, PSP, and courier services on the right, with Fluent Commerce at the center. — *Order management system integration architecture with key internal and external components*

Pan-European retailer transforms omnichannel order fulfillment

A leading variety retailer with 1400+ stores across 10 European countries implemented an event-driven omnichannel order management solution to handle complex fulfillment challenges. The system streamlined multiple order types, improved ATP scheduling, and enhanced omnichannel inventory visibility. It enabled seamless Click & Collect and Click & Reserve experiences, resulting in a more efficient, customer-centric fulfillment process across all channels.

Diagram outlining the components that determine ATP lead time for delivery or collection: inventory availability, product lead time, fulfillment lead time, stock location, shipment lead time, and order release settings. Each factor is described with its dependencies, such as stock at hand, product type, transport times, shipping country, and fulfillment processes. The diagram shows the process of calculating the first possible delivery date and working back to order release time. — *Key factors influencing ATP (Available to Promise) lead time and delivery dates*

Apparel giant’s cloud-powered inventory revolution

A global fashion retailer in 40+ countries modernized its inventory and order management by migrating from an on-premise system to AWS-based microservices. We developed new systems for order management, fulfillment process, and inventory management, and created extensible UIs for product availability. The project improved operations significantly across more than 1,000 warehouses, showing how cloud-based solutions are critical for large-scale retail environments.

Diagram illustrating three inventory management scenarios: pre-ordering inventory for a specific warehouse (allowing consumers to order items in transit), managing item and warehouse availability (enabling or disabling consumer orders), and creating reservations for promotions (preventing consumers from ordering reserved items). Each scenario shows the flow between production support users, inventory management, data sources, and consumer ordering options. — *Overview of inventory management system scenarios for pre-ordering, availability, and reservations*

What’s next for omnichannel order management?

The pace of technology innovation today is so astronomical that this section of the blog will likely be outdated in a week! Retail and e-commerce modernization, along with omnichannel order management systems, are no exception.

AI and ML applications

Intelligent order routing	Demand forecasting	Personalized customer engagement
Leveraging AI-powered algorithms to analyze inventory levels, forecast demand, maintain supplier reliability, and identify the most efficient fulfillment centers is already a reality, but is poised to become faster, smarter, and more accurate with advanced AI.	Machine learning models already analyze historical sales data, market trends, and external factors to make accurate predictions about inventory levels, but the ability of these models to interpret wider and more complex multimodal datasets will provide ever-increasing anticipatory forecasting accuracy.	Generative AI and Agentic AI are propelling search, recommendations, merchandising, content and catalog enrichment, and much more, to places digital experience leaders could only dream of years ago. And it’s moving fast.
Inventory Allocation Optimization Starter Kit →	Demand Sensing and Forecasting Starter Kit →	AI-powered Digital Experiences →

Real-time inventory management

Agentic AI IoT control	Dynamic replenishment	Supply chain synchronicity	Warehouse optimization
Connect all the dots and empower your equipment operators, facility managers, and manufacturing analysts with an agentic AI assistant for prescriptive quality control guidance.	Auto-triggered restocking when inventory levels fall below predefined thresholds, GenAI for granular “what-if” analyses, self-learning algorithms, and multi-agent orchestration are set to redefine real-time inventory management.	Autonomous, self-learning systems that continuously analyze real-time multimodal data will not only predict disruptions and demands, they will proactively adjust, reroute, negotiate, and execute optimizations with minimal human involvement.	Meet fast-shipping demands through AI-powered warehouse management system (WMS), intralogistics and slotting optimization. Slash picking times, reduce warehouse travel time, labor costs, and wasted effort.
IoT Control Tower →	Inventory Management →	Supply Chain Optimization →	Intralogistics Optimization →

Unified commerce approaches

Unified AI integration with Kibo Commerce	API-first distributed order management with Fluent Commerce	Composable commerce orchestration
Kibo Agentic AI capabilities are set to offer a multi-agent, AI-driven platform that automates commerce workflows, from customer engagement and order management to forecasting, analytics, and returns.	Think advanced workflows, robust order orchestration rules, and highly configurable store fulfillment processes (pick, pack, ship, or stage) at a global scale, and expect more from Fluent Commerce.	Glue all the pieces of the commerce puzzle together with composable commerce and MACH architecture. Every component communicates seamlessly, shares data constantly, and delivers hyper-personalized and AI-powered experiences across all touchpoints, at scale.
Kibo and Grid Dynamics partnership →	Fluent Commerce and Grid Dynamics partnership →	Composable commerce →

Choosing the right omnichannel order management system

Once you’ve committed to an omnichannel strategy, the next step is just as critical: selecting the right omnichannel order management system to power it.

Omnichannel order management systems should go beyond features and fit your business needs. Whether you’re managing thousands of SKUs across regional warehouses or delivering personalized experiences across channels, the omnichannel order management software solutions you choose will either accelerate or hinder your transformation.

Here are a few key considerations when evaluating omnichannel order management systems:

Scalability: Can it grow with your business as order volumes and channel complexity increase?
eCommerce Integration flexibility: Does it support seamless connections with enterprise resource planning (ERP) systems, point of sale (POS) systems, 3PLs, and marketplaces?
Real-time visibility: Can the chosen omnichannel order management process offer accurate, up-to-date inventory and order status across all nodes?
Intelligent automation: Does order management system support AI-driven features like dynamic routing, predictive replenishment, and personalization?
User experience: Is the platform intuitive for operations teams, and does it contribute towards a seamless customer experience?

A strong omnichannel order management system becomes the engine behind your commerce strategy.

Closing thoughts

If you haven’t yet switched from multichannel to AI-powered omnichannel order management systems, you’re already ten steps behind you’re competitors. If your answer is “no” to any of the questions below, it’s time to act:

Is your current omnichannel order management software delivering an irresistible experience across all channels?
Is your data AI-ready, and can your order management system scale and accommodate emerging technologies?
Is real-time data and AI helping you make informed decisions about inventory and fulfillment?

Don’t let outdated systems hold your business back. Take the first step to transform your order management capabilities.

Schedule an audit of your current order management process with us before your competitors do.

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