Top Order Management System (OMS) Challenges In 2025 & How to Solve Them
- Subhayan Dutta
- Apr 17
- 7 min read
The surge in e-commerce has intensified challenges in inventory management, warehousing, and order accuracy. Efficient OMS solutions are now essential, with global spending projected to hit $1.9 billion by 2026, as reported by Forrester.
With 71% of shoppers expecting same-day or next-day delivery, as per Meteor Space, and over half switching brands after one bad experience, according to Zendesk, AI-driven automation and omnichannel integration are crucial for seamless order fulfillment and long-term success.
Table of Content
Staying ahead of these innovations is crucial for retailers seeking operational efficiency and long-term success. This article explores the top challenges and solutions shaping the future of OMS.
Top OMS Challenges in 2025 & Their Solutions
1. Inaccurate Order Data & Lack of Supply Chain Transparency
Challenge
Inaccurate order data and a lack of transparency in the supply chain create significant disruptions, leading to delayed deliveries, incorrect shipments, increased return rates, and dissatisfied customers. Xenon Stack reports that U.S. businesses lose approximately $3.1 trillion annually due to poor data quality. The key reasons behind these challenges include:
Manual Entry Errors: Human mistakes in entering order details, customer information, or inventory levels cause discrepancies in fulfillment.
Outdated or Disconnected Systems: Legacy OMS, CRM, and ERP systems fail to sync real-time data, leading to mismatches across platforms.
Lack of Standardized Processes: Inconsistent data management across departments results in missing or incorrect order records.
Limited Visibility in Supply Chain: Without real-time tracking, businesses struggle with lost shipments, fraudulent transactions, and counterfeit goods.
Solution
Implement AI-Powered Automation: Automation can reduce operational errors by up to 50% in data-heavy functions like finance, as stated by Bain. AI-driven optical character recognition (OCR) can validate order details before processing.
Adopt a Unified OMS Platform: A modern cloud-based order management system ensures real-time data synchronization across all channels to eliminate discrepancies. Shopify, Amazon, eBay and other such companies are prime examples of this.
Leverage Blockchain for End-to-End Supply Chain Transparency: Blockchain provides a tamper-proof ledger for order tracking, reducing data discrepancies and ensuring complete traceability. This enhances trust by allowing customers to track orders in real-time while preventing fraud.
Utilize Automated Payments & Approvals: These self-executing contracts streamline order fulfillment by automating shipping approvals and payments once predefined conditions are met, reducing manual errors and delays.
2. Inefficient Order Processing & Lack of Automation
Challenge
Slow and inefficient order processing leads to delayed shipments, incorrect orders, and increased operational costs. With 80% of consumers expecting retailers to offer same-day delivery and 41% of the American consumers even willing to pay more for same-day delivery, as stated by Capital One Shopping, speed is a crucial factor in customer retention.
Reliance on Manual Order Handling: A staggering 60 percent of businesses in the U.S.A. still rely on Excel spreadsheets, as per Enterprise Times, while a study by Phys.org says 94% of business spreadsheets have critical errors.
Siloed Business Systems: OMS, ERP, and WMS operating in isolation prevent real-time inventory tracking, leading to fulfillment bottlenecks.
Limited Warehouse Automation: Manual picking and packing processes slow down fulfillment, increasing labor costs and order processing times.
Inefficient Order Routing & Forecasting: Without AI-driven order optimization, businesses struggle with inaccurate demand forecasting and inefficient shipping routes, leading to stock imbalances and delivery delays.
Solution
AI-Powered Automation & Smart Order Routing: AI-driven automation has been found to increase efficiency by 40%, as per Techkors, while smart order routing selects the fastest and most cost-effective fulfillment path, further improving the efficiency.
Unified OMS & Real-Time Inventory Sync: Integrating OMS with inventory and CRM platforms ensures seamless order tracking, reduces fulfillment delays, and enhances order accuracy. RFID tracking increases accuracy by up to 13% compared to traditional inventory tracking methods.
Blockchain for Transparency & Fraud Prevention: Blockchain ensures tamper-proof order tracking, automates shipping approvals through smart contracts, and prevents counterfeit goods.
Optimized Warehousing with AI & Robotics: Research by Technavio shows that companies using robotics in their warehouses often see a 20-30% reduction in labour costs. Not only that, but automated systems like the eOperator can reduce order fulfilment times by 30-40%, reports Element Logic.
3. Inventory Mismanagement & Slow Order Fulfillment
Challenge
Inventory mismanagement leads to stockouts, overstocking, and financial losses. The global retail industry loses an estimated $1.75 trillion annually due to out-of-stock items, which represent about 8.3% of total retail sales, reports Tools Group.
Lack of Real-Time Tracking: Without visibility across locations, businesses struggle to maintain accurate stock levels.
Ineffective Demand Forecasting: Poor sales projections lead to overstocking (wasting storage space) or understocking (losing sales).
Supplier Delays: Late replenishment affects fulfillment rates and disrupts supply chain efficiency.
Slow Fulfillment Speeds: Flash Box reports that an unreal 53% of consumers abandoned the purchasing process due to excessively long shipping times.
Solution
AI-Driven Inventory Optimization: AI-powered demand forecasting improves stock accuracy, thus preventing both overstocking and stockouts. According to IKEA, Demand Sensing has boosted forecast accuracy from 92% to 98% while reducing the need for corrections from 8% to a mere 2%, reports Hso.
IoT & RFID for Real-Time Stock Visibility: According to Deskera, businesses that use IoT for inventory management can expect to see a 15% reduction in inventory costs and a 10% increase in inventory turns. Autonomous Mobile Robots (AMRs) and Automated Storage and Retrieval Systems (ASRS) enhance warehouse efficiency.
Enhanced Supplier Collaboration & Automated Replenishment: Implementing supplier relationship management (SRM) tools synchronizes restocking schedules, reducing fulfillment delays. Micro-fulfillment centers and third-party logistics (3PLs) improve last-mile delivery speeds.
Automated Warehousing & Last-Mile Innovations: Robotic sorting, conveyor systems, and AI-powered picking solutions speed up fulfillment. Drones, autonomous vehicles, and smart lockers enhance last-mile delivery efficiency.
4. Poor Customer Communication & Weak Post-Purchase Experience
Challenge
Consumers expect clear and timely communication throughout their order journey, with Survey Sparrow stating that 64% of customers expect companies to respond and interact with them in real-time, while 40% of customers will stop doing business with a company if they receive poor customer service.
Lack of Order Tracking Updates: Without real-time tracking, customers frequently inquire about shipping status.
Delayed Customer Support Responses: Slow service frustrates buyers, leading to increased cart abandonment.
Inconsistent Multichannel Support: Brands lacking chat, email, and social media support fail to meet customer expectations.
Limited Post-Purchase Engagement: 89% of consumers are more likely to make another purchase after a positive customer service experience, reports Sales Force research.
Solution
AI Chatbots & Self-Service Portals: AI-powered chatbots reduce customer service workload by a huge proportion, with studies from Research Gate revealing that chatbots can handle up to 70% of routine customer inquiries, allowing human agents to focus on more complex issues. Self-service portals enable customers to track orders, process returns, and print shipping labels without contacting support.
Automated Notifications for Real-Time Tracking: Proactive SMS, email, and push notifications keep customers informed about order status, shipping delays, and stock updates, reducing post-purchase anxiety.
Omnichannel Support Integration: A unified customer support system ensures seamless interactions across email, chat, and social media, improving response times and customer satisfaction.
Proactive Engagement & Personalized Offers: Brands that actively communicate with customers post-purchase, offering timely updates, personalized promotions, and loyalty incentives, see a boost in retention.
5. Business Scalability & Multichannel Integration Challenges
Challenge
As businesses expand, managing order fulfillment at scale becomes increasingly complex. Many e-commerce companies face challenges in efficiently handling higher order volumes, leading to potential delays and operational bottlenecks. Key obstacles include:
Outdated Infrastructure: Legacy OMS and ERP systems cannot support high-volume, multichannel operations.
Limited Workforce Capacity: A lack of trained staff leads to order fulfillment delays.
Financial Constraints: Scaling requires significant investment in technology, logistics, and staffing.
Disconnected Sales Channels: 73% of customers use multiple platforms before purchasing, as per the Harvard Business Review, making real-time inventory synchronization critical.
Solution
Adopt Cloud-Based & Automated OMS Solutions: Cloud-based platforms scale on demand, while automation in order routing, inventory restocking, and fulfillment workflows improves efficiency. Integration with WMS, ERP, and 3PL providers optimizes operations.
Ensure Real-Time Inventory Synchronization: A unified OMS provides live stock updates across online marketplaces (Amazon, eBay, Shopify) and physical stores, reducing overselling risks.
Centralize Multichannel Order Processing: Processing orders from multiple sales channels through a single system improves accuracy, streamlines fulfillment, and enhances customer experience.
Expand Workforce & Secure Financial Backing: Using flexible hiring models (freelance, remote, part-time) ensures scalability, while venture capital, crowdfunding, or business credit lines provide financial support for expansion.
Top Examples of Companies Using OMS Optimally
Amazon: A pioneer in OMS, Amazon’s distributed order management (DOM) dynamically routes orders to optimize shipping costs and times. Its real-time inventory visibility and seamless peak-demand, like Black Friday sale, handling set the industry benchmark.
Walmart: Leveraging Manhattan Associates’ OMS, Walmart integrates BOPIS and ship-from-store options, ensuring real-time data flow between warehouses and stores. This enables a seamless omnichannel experience.
Shopify-Powered Brands (Allbirds): Allbirds uses Shopify’s OMS or partner solutions like Brightpearl to unify orders across its website, stores, and marketplaces. Real-time inventory updates and automated workflows help it scale efficiently.
Nike: Likely using IBM Sterling or a custom OMS, Nike optimizes D2C sales with same-day delivery and in-store pickup while syncing with its global supply chain. This strategy strengthens its digital-first competitiveness.
Conclusion
The future of order management in 2025 presents both challenges and opportunities. Inaccurate order data, inefficient processing, inventory mismanagement, poor customer communication, and scalability limitations remain key concerns.
By embracing AI-driven automation, real-time tracking, omnichannel customer support, and scalable cloud-based solutions, businesses can enhance efficiency, reduce costs, and provide seamless customer experiences in the evolving digital commerce landscape. Tools like cqube.io play a critical role in this transformation by centralizing operations data and unlocking insights that support faster, more accurate decisions across the order lifecycle.
Comments