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Distributed Order Management

Centrally manage Omni-Channel & financial processes, inventory & fulfillment

The central business logic for the optimization of Omni-Channel processes

In the Distributed Order Management System all stocks, delivery points, articles, orders and customers are kept.


The prototypical process ("happy path")

The DOM accepts orders from various channels, such as the e-commerce system or the branch, and ensures optimal processing. The typical process flow, if everything goes according to plan, is as follows:

  1. Order is accepted
  2. Risk check (black list, white list, abnormalities)
  3. Determination of the optimal place(s) for delivery of the order based on various criteria such as time, stocks, capacities at the place of delivery, costs, forecasts, etc.
  4. Controlling the financial processes, such as triggering the capture of an order with credit card payment after the order has left logistics or calculating the amount to be paid in case of a return.
  5. Triggering of various communication processes and information, in particular to end customers, such as information to end customers that a product has arrived at a store and can be picked up
  6. Handling of the returns process

Transparency & overview through central data pools

In order to be able to optimally calculate and control the delivery of end customer orders, basic data are required which are kept in the DOM. The most important "data pots" refer to the following areas:

  • Articles: All articles relevant to the end customer are stored in the DOM, typically with basic information such as texts and images, regions, start-end, article combinations, accessories etc.
  • Delivery locations: List of all locations from which articles are delivered, with master data and Omni-Channel relevant attributes such as geo-coordinates, opening hours or capacities
  • Stocks: Current stocks of the relevant articles, including details of articles in transit and including non-physical articles such as services (e.g. bodywork services), gift cards or software rights
  • Customers and orders: Since the system controls the processing of sales orders, it must also know all purchase orders and the corresponding customers. Customer orders usually refer to several articles and therefore to different order lines. Customer data can be transferred from the relevant e-shop system and all other ordering channels as well as from the stores (POS systems).
  • Invoices, prices and promotions: In addition to the physical delivery process, the system also controls the respective financial process and accordingly creates data for a debtor management system, among other things. Accordingly, all prices, taxes, and promotions are stored in the system or can be retrieved from other systems.

Order Splitting & Routing

Extensive functions for optimal control of the Omni-Channel delivery and financial processes. The DOM contains extensive business logic. One of the most important functions is Order Splitting & Routing - i.e. determining the optimal delivery location for an order. This is done on the basis of numerous parameters such as

  • Current stocks at the various storage locations

    incl. own warehouses, goods at logistics service providers, goods in branches, goods at drop shippers, goods at other business partners such as franchise companies

  • Items in transit

    Items in transit, for example, to a store or warehouse, may already be available for sale. These articles are considered in aroma®.

  •  Stock reservations

    for some business partners, such as marketplaces, stocks must be reserved. Such reservations are managed in aroma® and can be easily adjusted.  

  • Capacities in stores

    If articles are delivered from stores, you have to consider that not all stores have the same capacities to deliver articles. For example, large stores can pack and deliver more articles to customers than small stores. Such capacities are stored in the aroma® system and automatically taken into account. 

  • Costs for delivery processes

    Delivering an article from an e-commerce warehouse incurs different costs than delivering an article from a store. Cost items can be stored in the system and considered as optimization factor.

  • Priority of purchase orders

    Orders from "Very Important Persons" are often to be treated with priority. These priorities are mapped in the aroma® system and taken into account when optimizing the delivery processes.

Further functions

Dropshipper

Financial Processes

Service Processes

Reporting & Analysen

Dropshipper

Many retailers work with so-called dropshippers, i.e. partners who keep articles in their own warehouse and forward them to the orders for these articles. Forwarding orders to business partners is relatively simple. It is also important and more challenging to support the business partners in processing the order. To do this, the partners need an easy-to-use system that they can use from a standing start without any installation or preparation. Arvato Systems provides the Drop Ship module from aroma® for this purpose. Of course, orders can also be transmitted to business partners simply via interface.

Financial Processes

In addition to the physical processes, the DOM also manages the financial processes relating to customer orders. These processes sometimes differ considerably depending on the payment method, country concerned and tax rates. aroma® supports these processes internationally. For this purpose, all prices and tax statements are kept in the system for the articles and orders. On this basis, the system generates the data records for the connected financial systems and, if required, also necessary documents such as invoices. Changes in VAT rates, which e.g. 2020 in Germany had to be implemented for a few months during the corona situation, can be easily configured in aroma®. Likewise, various payment options including ordering on account or mixed payment methods from credit cards and bonus points can be mapped. As the system keeps all relevant financial information available, it is also possible to calculate in the system what amount is to be paid out to a customer in case of returns. Less powerful systems often involve the shop system, which not only causes unnecessary data traffic but also problems in customer service. Only when the relevant financial information is available in Order Management, as in the case of aroma®, can customer service employees provide comprehensive information on financial topics.

Service Processes

E-commerce and Omni-Channel processes always cause a lot of work when unplanned events occur, e.g.

  • an item that a customer has ordered is not available
  • an invoice is not or only partially paid by a customer
  • an incorrect item was delivered and the customer now wants a replacement item
  • a delivery takes longer than planned
  • a customer makes a charge back, etc.

Therefore, one of the most important tasks of a Distributed Order Management system is to support these service processes. Arvato Systems has developed and optimized aroma® over many years based on practical experience and thus helps to optimize service processes and implement them cost-effectively. 

Reporting & Analysen

The control and optimization of delivery, finance and service processes is based on extensive data collection, reporting and analysis. One example is reports on the age of orders currently being processed. The longer an order is in the system, the higher the probability of customer escalation. The "age report" enables problems to be identified early on and proactively resolved.

Advantages of a powerful DOM for you as a trader

Optimal interlocking of all touch points with the customer
Optimization of the article delivery according to economic aspects
Reduction of operating costs for modern integrated trading
Multiple languages & payment methods for fast internationalization
Fast introduction possible within a few months
Satisfied customers

Your Contact for aroma®

MA_Marcel_Muscat_USA
Marcel Muscat
Expert for Commerce Solutions