Direct-to-Consumer (D2C) brands stand as pioneers, bypassing traditional distribution channels to directly reach consumers. The benefit of D2C brands lies in their promise – enhanced control over brand identity, improved customer relationships, and streamlined data insights. Yet, amidst these advantages lie the intricate challenges of juggling orders and inventory across multiple sales channels.
The D2C Conundrum: Order Management & Inventory Complexities
Picture this: A D2C brand selling products through its website, third-party marketplaces, and even physical stores.
The complexity emerges when each channel operates independently, leading to disjointed inventory management and order processing. Such fragmented systems result in siloed data, potential stockouts, and a lack of real-time visibility, hindering seamless operations.
Need for Optimization: Enter OMS and ERP
To overcome these hurdles, D2C brands turn to Order Management Systems (OMS) and Enterprise Resource Planning (ERP) software. The OMS handles order processing, inventory management, and fulfillment. ERP, on the other hand, integrates various business functions such as finance, procurement, and production.
ERP Integrated OMS vs Standalone OMS
As we delve into the intricacies of ERP Integrated OMS and Standalone OMS, it becomes imperative to explore the distinct features and considerations associated with each. Below, lets shed light on the nuanced choices available to D2C brands.
ERP Integrated OMS
- Connecting the Dots: ERP integrated OMS intertwines order management with the broader business infrastructure, ensuring seamless data exchange. For instance, Ginesys One’s Browntape merges an ERP system with an OMS, granting real-time access to inventory and financial data.
- The Power of Integration: By tapping into the ERP’s expansive data, integrated OMS offers holistic insights and streamlined operations across multiple channels. Imagine tracking inventory levels, processing orders, and managing finances – all in one synchronized flow.
- The Catch: However, this symbiotic relationship comes with a price. Dependency on the ERP system poses risks – if the ERP falters, the OMS might follow suit. Integration complexities and potential data sync issues also loom as drawbacks.
Standalone OMS: Agile and Independent
- Flexibility Unleashed: Solutions such as Browntape and many other multichannel OMS also operate independently, offering agility, and customization tailored to a D2C brand’s specific needs. These systems are scalable, adeptly handling increased order volumes and business growth.
- Data Silos and Integration Woes: Nonetheless, standalone OMS can lead to data duplication and lack of integration with other crucial business functions. While they boast autonomy, the separation from ERP systems may limit the holistic view of operations.
- The Price Tag: Additionally, this solution often incurs higher costs due to separate pricing and maintenance. Thus, adding to the overall expenses for D2C brands.
- Separate inventory management: In this case the brands have to manage inventory separately for offline in their ERP and for online channels in the OMS, this leads to higher costs of inventory
Navigating the Crossroads
Choosing the right path for your business is crucial. In the following section of the blog, let us look at the various facets that should be considered before selecting the apt model of deployment of the order management system.
Factors Influencing the Decision
Understanding the following facets is imperative for determining the most suitable approach for your business.
- Existing Infrastructure: It’s essential to evaluate whether your business currently operates with a robust ERP system or if it is considering the implementation of a completely independent solution.
- Scalability Needs: Assessing your business’s anticipated growth is key. Consider whether you expect rapid expansion and if the chosen system can effectively scale alongside your evolving business requirements.
- Budget Considerations: Examining the alignment between the costs associated with integration and maintenance and your financial resources is a critical aspect of making an informed.
- Functional Requirements: It is necessary to define the specific functionalities and integrations your business demands for optimal operations. This step is crucial for selecting an approach that aligns with your unique operational needs and goals.
Recommendations for the D2C brands
- Leveraging Existing ERP: For businesses equipped with a reliable ERP system, an integrated OMS would be suitable to harness the power of seamless data flow.
- Independence Seekers / Startups: Those who are starting off on the ecommerce journey and have not yet invested in an ERP or those who still prefer to keep the online and offline channels separate would be better off with a standalone OMS.
To get a better understanding of not only the value of integrated OMS but also the challenges in ERP integration, here is a detailed case study of Browntape’s client ‘Peachmode’:
Peachmode’s D2C Expansion Journey
Background:
Peachmode, a prominent player in the Indian fashion industry, faced significant operational challenges due to its fragmented systems. Initially, Peachmode utilized separate ERP and POS systems from different vendors, coupled with a semi-integrated OMS solution. This led to disjointed operations and multiple issues impacting their efficiency. Lack of integration between POS and ERP, basic integration with OMS, inventory inaccuracies, and fragmented reporting were also observed.
Challenges Faced
- Disintegrated Systems: Peachmode struggled with disparate systems that hindered seamless coordination between sales channels, leading to inefficiencies and discrepancies.
- Inventory Management: The lack of integration between POS, ERP, and OMS resulted in inventory inaccuracies and out-of-stock situations, affecting customer satisfaction.
- Reporting Challenges: Managing multiple reporting tools across various applications caused data fragmentation, making it challenging to derive meaningful insights.
ERP Integrated OMS Approach
Peachmode decided to leverage Browntape, an integrated ERP, OMS, and POS solution, to streamline their operations comprehensively.
Implementation Process
Choosing Browntape provided Peachmode with an all-encompassing solution, integrating ERP, OMS, and POS, enabling seamless data flow and real-time synchronization across all channels.
The implementation involved centralizing operations, integrating sales from their website, marketplaces, and physical stores into one unified system. The integrated OMS within Browntape offered a centralized dashboard, providing real-time visibility into orders, inventory levels, and customer data across all channels.
Results and Benefits
- Unified Operations: Achieved a cohesive view of operations across all sales channels.
- Real-time Synchronization: Enabled accurate inventory tracking and order processing.
- Enhanced Fulfillment: Streamlined fulfillment processes and minimized out-of-stock instances.
- Improved Customer Satisfaction: Reduced stockouts and overselling, enhancing customer experience.
- Data-Driven Insights: Integrated financial and inventory data provided valuable insights for strategic decision-making.
- Efficient Reporting: Centralized reporting system eliminated data fragmentation and improved analytics.
- Streamlined Scalability: Adaptability to expansion with efficient handling of increased order volumes.
- Integrated Functionality: Single platform integration for ERP, OMS, and POS systems eliminated operational silos.
The Browntape Promise: Your Partner in D2C Success
In conclusion, the ideal OMS choice for D2C brands hinges on a multitude of factors. Whether it’s the comprehensive view of operations through ERP integration or the autonomy of a standalone system, each holds merits and limitations.
Should you seek a reliable and powerful integrated OMS or standalone OMS, for your D2C brand, consider Browntape. As India’s leading ecommerce order management system integrated with Ginesys One’s ERP, Browntape is a step ahead in offering a seamless ERP integration, real-time visibility, and end-to-end automation. Empowering D2C brands to efficiently manage their orders and inventory across multiple channels and locations.
The choice between ERP integrated OMS and standalone OMS significantly impacts operational efficiency. Each approach presents its unique set of advantages and limitations.
The integration of OMS with ERP systems offers a comprehensive view of operations, ensuring seamless data flow, and streamlined processes across various channels. On the other hand, standalone OMS solutions offer flexibility and autonomy, but may pose challenges concerning integration and higher costs.
How Browntape OMS is ERP Integrated
Browntape serves as a prime example of an OMS seamlessly integrated with ERP systems like SAP S4 Hana, Microsoft NAV, Dynamics 365, Ginesys ERP, Oracle ERP, exemplifying the power of synchronized operations. Integrated with Ginesys One’s ERP, Browntape provides real-time access to crucial data, harmonizing order management with broader business functionalities.
Key Features of Browntape OMS:
- Real-Time Visibility: Track inventory levels, process orders, and manage finances in a synchronized flow.
- Holistic Insights: Leverage ERP data for comprehensive insights and operational efficiency.
- End-to-End Automation: Streamline order processing and inventory management for increased productivity.
- Scalability: Accommodate increased order volumes and business growth effortlessly.
Choosing the right OMS for your D2C brand involves evaluating existing infrastructure, scalability needs, budget considerations, and functional requirements. Whether opting for ERP integrated OMS or standalone OMS, weighing the trade-offs, and aligning with business goals is key.
