Driven by the ever-increasing complexities of the consumer shopping journey coupled with the imperative to provide exceptional customer experience, global retailers are increasingly adopting omnichannel strategies to succeed in a highly competitive environment. The omnichannel order management system (OMS) is perceived as an essential technology element in the adoption of omnichannel strategies amongst global retailers. Traditional order management and ERP systems were not designed to support complex order processing, management, fulfillment, and return scenarios across a diverse network of sales and fulfillment channels. These functions were performed in silos with inventory sources often connected to a single channel only, resulting in poor visibility across the supply chain networks. The poor visibility and availability of information tend to increase operational cost and fulfillment time, providing a poor customer experience.
Omnichannel order management systems help retailers manage and fulfill complex customer orders efficiently in an omnichannel environment to improve customer service experience. Omnichannel OMS provides unified visibility of enterprise inventory from warehouse, distribution center, store, and in-transit location and performs complex order routing to enable efficient order fulfillment from the optimum location. The omnichannel order management system includes a configurable workflow engine to orchestrate and optimize the complex order processing, management, and fulfillment processes to ensure efficient order fulfillment at minimum costs. Omnichannel OMS is increasingly becoming an integral part of omnichannel retailing and are integrated with digital commerce, POS, supply chain planning and execution systems.
Quadrant Knowledge Solutions recent study “Market Outlook: Omnichannel Order Management Systems, 2019-2024, Worldwide” analyzes market dynamics, growth opportunities, emerging technology trends, and the vendor ecosystem of the global market. This research provides strategic information for technology vendors to better understand the market supporting their growth strategies and for users to evaluate different vendor capability, competitive differentiation, and its market position. The research includes an in-depth analysis of major omnichannel OMS vendors evaluating their technology capabilities, market presence, and overall customer value proposition. The evaluation is based on primary research with expert interviews, analysis of use cases, and Quadrant’s internal analysis of the global omnichannel OMS market.
Market Dynamics and Trends
Omnichannel OMS market is expected to grow significantly during 2019-2024
Globally, the omnichannel OMS market is growing rapidly. Retailers are increasingly viewing an omnichannel OMS solution as a strategic investment and an enabler for the effective implementation of omnichannel strategies. Omnichannel order management systems have a key value proposition of providing unified visibility and availability of enterprise inventory across networks of channels enabling retailers to gain a competitive advantage with efficient order fulfillment from the optimal location at minimum operational costs.
The following are the key research findings of Quadrant’s Omnichannel Order Management Systems research:
- The omnichannel OMS market is expected to increase significantly in the next five to six years from the market size of $746.4 million in 2018 to over $1.52 billion by 2024. The global market is expected to grow at a compounded annual growth rate (CAGR) of 12.5% from 2019-2024.
- The omnichannel OMS key value proposition of integrating enterprise-wide inventory and customer orders from multiple channels to provide a unified visibility at a single location, workflow capability to perform order orchestration, intelligent order routing to ensure orders are fulfilled from the optimal location, and optimizing sourcing and omnichannel fulfillment scenarios are driving the market growth across the geographical regions and industry segments.
- The omnichannel OMS market is primarily dominated by on-premise deployments. However, cloud-based deployments are gaining significant momentum and are expected to grow at a CAGR of 25.6% compared to an anticipated CAGR of 6.6% for an on-premise deployment from 2019-2024. Driven by the emergence of several innovative vendors with cloud-first offerings along with increasing confidence of cloud application security, cloud-based deployments are expected to be the most preferred way of deploying omnichannel OMS solutions by the year 2022.
- Omnichannel OMS vendors are focusing on improving their technology value proposition by enhancing inventory visibility and segmentation, in-store technology, and leveraging advanced automation, AI and ML technologies to improve the accuracy, speed, scalability of order orchestration, intelligent routing, and optimization processes. Several leading vendors are also enhancing their technology value proposition to offer a unified and integrated commerce platform and solutions.
- While omnichannel OMS with distributed order management (DOM) functionalities at its core have been widely accepted across retail sectors, the vendors are increasingly finding market traction beyond retailer sectors including manufacturing, home services, pharmaceuticals, entertainment and B2B use cases.
- Omnichannel OMS vendors are making significant progress in providing robust DOM and store fulfillment functionalities to support “buy-anywhere, fulfill-anywhere and return-anywhere” scenarios. Global retailers are increasingly looking at a solution that offers flexible configuration of a wide variety of fulfillment rules, including BOPIS/BORIS (buy-online-pickup/return-in-store), ROPIS (reserve online, pick up in-store), ship to store, ship from store, ship from DC, store-to-store, and such others.
- The key competitive and technology differentiators for evaluating omnichannel OMS include the breadth of technology capabilities; enterprise-wide global inventory visibility; sophistication of DOM functionality; robust order routing & optimization; technology roadmap for advanced analytics, AI, and machine learning; and technology integration and interoperability.
SPARK Matrix Analysis of the Global Omnichannel OMS Market
Quadrant Knowledge Solutions Names Symphony RetailAI as a 2019 Technology Leader in the Omnichannel OMS Market
Quadrant Knowledge Solutions conducted an in-depth analysis of the major omnichannel order management systems vendors by evaluating their product portfolio, market presence, and value proposition. The omnichannel OMS market outlook provides competitive analysis and a ranking of the leading vendors in the form of a proprietary SPARK Matrix. SPARK Matrix analysis provides a snapshot of key market participants and a visual representation of market participants. It provides strategic insights on how each vendor ranks related to their competitors, concerning various performance parameters based on the category of technology excellence and customer impact. The evaluation is based on the primary research with expert interviews, analysis of use cases, and Quadrant’s internal analysis of the overall omnichannel OMS market.
According to the SPARK Matrix analysis of the global market, “Symphony RetailAI, with its integrated AI-enabled decision platform and role-based solutions for retail and CPG organizations has secured strong ratings for the overall parameters of technology excellence and customer impact. Symphony RetailAI has been positioned amongst the technology leaders in the 2019 SPARK Matrix of the global omnichannel OMS market.”
Symphony RetailAI Capabilities in the Global Omnichannel OMS Market
Symphony RetailAI provides an integrated platform with modular solutions for order fulfillment, Click & Collect, and warehouse management systems (WMS) with a single 360-degree view of the physical inventory for order management. Its order fulfillment solution includes comprehensive capabilities to provide enterprise inventory visibility, distributed order management and omnichannel fulfillment capabilities to help retailers improve customer service experience across an omnichannel environment. The company’s order fulfillment solution provides the current and future information to retailers enabling them to manage and fulfill dynamic orders across channels ensuring timely fulfillment at minimized costs.
- Enterprise-wide Inventory Visibility: The order fulfillment solution help retailers manage orders across sales channels from a single system and provides a single consolidated view of the available inventory from across the supply chain, such as in-store, DCs, warehouse, on orders and in transit. The solution connects with retailers’ networks, external systems, and enterprise applications to synchronize inventory status and provides consolidated views of real-time enterprise inventory across channels at one place.
- Distributed Order Management: Symphony RetailAI provides robust DOM capabilities enabling retailers to remove ordering and fulfillment complexities by enabling automated processing of a large number and variety of orders in an omnichannel environment. Retailers can configure a rule engine to control order splitting, merging, inventory allocation, real-time order allocation, and push distribution. The order fulfillment solution performs complex order orchestration, routing, and optimization functions, enabling retailers to gain a competitive advantage with efficient order fulfillment from the optimal location minimizing shipping costs and delivery time.
- Omnichannel Fulfillment: Symphony RetailAI’s order fulfillment solution provides real-time visibility of demands and inventory availability at one place, enabling retailers to manage vendors, stores, and customer orders, and prioritize order fulfillment in an omnichannel environment. The solution provides omnichannel support, allowing the retailers to manage all order types and channels in one place, and providing customers to have complete buying and delivery flexibility. It also includes an integrated workflow engine and enables retailers to configure flexible fulfillment rules based on the business and operational constraints. Symphony RetailAI also provides an integrated Click & Connect system connected to fulfillment and in-store operations to offer a variety of fulfillment mode to the customers. Retailers can configure rules to support store pickup, ship-to-store, dark store fulfillment, and various in-store fulfillment scenarios.
Analyst Perspectives
Symphony RetailAI is known for providing an integrated Retail AI platform with role-based solutions for retail and CPG organizations. The platform includes an integrated portfolio for end-to-end supply chain solutions including inventory management, replenishment planning, order fulfillment, demand forecasting and warehouse operations. The company has a strong presence in the grocery and CPG sector in handling large order volumes, managing fresh and perishable items, and supporting growing trends towards online ordering for store pickup. The company’s technology vision and roadmap are in line with the industry trend towards leveraging AI, machine learning, virtual reality and advanced customer intelligence to drive customer-centric strategies. Driven by the strong overall ratings across technology excellence and customer impact, Symphony RetailAI has been positioned amongst the 2019 technology leaders in the SPARK Matrix evaluation of the global omnichannel order management systems market.
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