How to Define Order Management Models and Why is it Important to Do So?

The perplexing question, “What Order Management Model do you use with your trading partner?” stumps many business professionals. This blog will attempt to simplify this question to help you find an answer that pertains to your company.

How do you define OMM?

Order Management Models allude to the process of shipping goods or items to your trading partner. Here are some of the most prevalent:

Direct to Store (DTS) – In the case of a Direct to Store OMM, orders are accepted for shipment to the trading partners’ stores or retail locations

Direct to Distribution Center (DTDC) – In the case of a Direct to DC OMM, orders are accepted for shipment directly to the trading partners’ distribution centers or warehouses

Direct to Consumer (DTC) – In a case of a Direct to Consumer OMM, orders are accepted for shipment directly to the trading partners’ customers

Cross-Dock – For a Cross-Dock OMM, orders are accepted for shipment to the trading partners’ distribution centers, however have specific labeling

What is Necessary With Each OMM?

Direct to Store and Direct to Distribution Center OMMs have perhaps the clearest requirements – orders typically list one shipping address.

With Direct to Consumer shipments, there may be a large amount of requirements for transporting – custom packing slips and other documents, custom labeling and a large quantity of unique data flows both inbound and outbound. There is also typically a need to support multiple delivery and shipping methods – there are oftentimes multiple options. Consumer shipments are many times because of website order sales but could also be walk-in special orders.

With Cross-Dock shipments, the ordinary requirements concern consolidation of shipments (in other words, Advanced Shipping Notices – ASNs). The shipments are typically consolidated by purchase order and by distribution center but could be more or less complicated. In addition, it’s possible to face needing to use cross-dock labels on the shipping cartons. In this situation, a cross-dock label includes the warehouse specifications as well as the “mark-for” store information. By including these details, the trading partner is able to easily and intelligently split the shipment by store and combine it with shipments going to each store from other suppliers.

What are Other Notable OMMs?

Blanket/Release Orders – Blanket/Release orders typically tend to resemble direct-to-store or direct-to-distribution center orders. In this situation, a blanket order is received showing the trading partners’ commitment to buy over a given period, usually a year. The blanket order is most useful as a forecast of demand, rather than a specific reflection of demand. Each release order, however, functions as a stand-alone order for shipment to a store or warehouse. The impact to you, the customer, is usually one of

information exchange. There are numerous situations where the blanket and release numbers must be present on documents with information about the shipment and then sent back on other EDI documents.

So Why Does This Matter?

You may be wondering why it matters about what OMMs you engage in with your trading partners. “Wouldn’t that be my EDI software provider’s duty to figure out?” The undeniable response is “No!” Your EDI provider needs to be 100% aware of the details of your business scenarios in the EDI spectrum. This information is used to make sure your EDI flow is being tested with all necessary scenarios with your company’s internal team. If incomplete information is provided during testing and implementation, you risk incompletely testing your solution and enduring many unpleasant surprises after moving to production. A little preparation and research up-front goes a long way.

With BSI EDI, you are able to support all of the above OMMs plus many other variations as well. Please contact us to discuss your specific situation.

About Business Systems Integrators

Business Systems Integrators, LLC is a Microsoft-Certified software and service provider. We have been involved in ERP and EDI for nearly 25 years. BSI provides on-premise EDI as well as SaaS EDI in conjunction with SPS Commerce. BSI, LLC prides itself on quality solutions and service that meets your needs and exceeds your expectations - whether it's implementing one of our software products or using us for custom integration development.

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