Table of Contents
- Introduction
- About Kanmo Group
- Why Do Businesses Need an OMS?
- Benefits of Implementing OMS
- Kanmo’s OMS Implementation Process
- fulfillmenttools and MACH Architecture
- Codilar’s Role in the Migration
- Conclusion
- FAQs
Introduction
Imagine managing over 250 retail stores across multiple cities while juggling online platforms—all within a rapidly growing market. This is the reality for Kanmo Group, a prominent retail powerhouse in Indonesia. Handling orders efficiently across various sales channels often becomes a Herculean task, especially when scaling up operations. The solution? An advanced Order Management System (OMS). In this blog post, we delve into why businesses like Kanmo need an OMS and how upgrading to a sophisticated system transformed their operations. By the end, you'll understand the critical role of OMS in modern retail and how Kanmo's strategic implementation serves as a model for others.
About Kanmo Group
Established in 2005, Kanmo Group has grown into a significant retail player in Indonesia, renowned for its omnichannel prowess. Initially focusing on baby and childcare products as a licensee to respected brands like Mothercare and the Early Learning Centre (ELC), Kanmo has since broadened its horizons. The company now extends its reach to fashion, accessories, footwear, and toys, managing over 250 stores in 16 cities. The impressive brand portfolio includes Justice, Kate Spade, and Adidas, among others, showcasing Kanmo's expansive retail footprint.
Why Do Businesses Need an OMS?
Businesses in the retail sector often encounter multifaceted challenges when managing and fulfilling orders across various sales channels. This complexity magnifies during periods of expansion, necessitating an effective Order Management System (OMS). Here's why:
Enhanced Order Management
An OMS enables businesses to streamline order processing, ensuring that customer orders are efficiently received, managed, and fulfilled. This system can manage high volumes of orders without compromising accuracy or speed, an essential capability for companies experiencing rapid growth.
Multi-Location Coordination
Managing multiple stores and warehouses can be a logistical nightmare. An OMS coordinates inventory across different locations, enabling businesses to optimize stock levels and reduce the risk of stockouts or overstocking.
Streamlined Returns and Reversals
Handling order returns and reversals can be cumbersome. An efficient OMS simplifies these processes, providing a seamless customer experience and enhancing overall satisfaction.
Real-Time Tracking
Real-time tracking of orders and shipments helps businesses maintain transparency with customers. This level of visibility also aids in mitigating issues promptly, further bolstering customer trust and loyalty.
Benefits of Implementing OMS
The advantages of a robust OMS transcend mere operational efficiency. Here are some key benefits:
Improved Customer Satisfaction
An OMS ensures timely and accurate order fulfillment, significantly enhancing customer satisfaction. Happy customers are more likely to become repeat buyers and brand advocates.
Operational Efficiency
Streamlining order processing reduces the time and resources spent on manual order management. This efficiency not only cuts costs but also allows staff to focus on more strategic tasks.
Scalability
As businesses grow, their order management needs become more complex. An advanced OMS is scalable, accommodating increased order volumes and the addition of new sales channels.
Data-Driven Decisions
An OMS provides valuable insights into sales patterns, inventory levels, and customer behavior. These analytics empower businesses to make informed decisions, optimizing operations and marketing strategies.
Kanmo’s OMS Implementation Process
Kanmo recognized the necessity of upgrading their existing order management system to handle their expansive and diverse retail operations. Partnering with Codilar, a leading technology solutions provider, they embarked on a journey to implement a more sophisticated OMS.
Challenges of Multichannel Retail: Kanmo’s Operational Hurdles
Operating across multiple retail channels posed significant challenges for Kanmo. Managing inventory, fulfilling orders from various locations, and ensuring a seamless customer experience required an efficient system. Their existing OMS was not equipped to handle these growing complexities, necessitating an upgrade to a more advanced solution.
Upgrading Kanmo’s OMS: A Collaborative Effort with Codilar
Kanmo collaborated with Codilar to transition their order management system to fulfillmenttools (FFT). This move was designed to streamline their retail operations and enhance their order fulfillment capabilities. By leveraging FFT’s advanced features, Kanmo aimed to overcome the limitations of their previous system.
fulfillmenttools and MACH Architecture
FFT, or fulfillmenttools, is built on the MACH architecture, which stands for Microservices, API-first, Cloud-native, and Headless. This modern infrastructure provides greater flexibility and scalability. Unlike traditional monolithic systems, MACH architecture allows businesses to adapt quickly to changing market demands and integrate new technologies seamlessly.
Unique Order Routing with Distributed Order Management System (DOMS)
A standout feature of FFT is its Distributed Order Management System (DOMS). Unlike conventional OMS solutions, DOMS follows a distributed approach, enabling intelligent order routing across a network of warehouses and fulfillment centers. This ensures that orders are processed efficiently, utilizing the nearest or most appropriate location for fulfillment, thus reducing delivery times and costs.
Codilar’s Role in the Migration
Codilar played a crucial role in Kanmo’s successful migration to FFT. Here are two major aspects of their involvement:
Seamless Transition
Codilar ensured that the transition to FFT did not disrupt Kanmo's existing operations. By carefully planning and executing the migration, they maintained the continuity of core functionalities while introducing new capabilities.
Future Optimization Plans
In the planned second phase (V2) of the implementation, Codilar aims to shift the order routing decision logic entirely to FFT. This shift will allow Kanmo to fully harness FFT’s robust routing capabilities, further enhancing their operational efficiency.
Conclusion
Kanmo Group's successful upgrade to a sophisticated OMS highlights the transformative impact of modern solutions in the retail sector. By partnering with Codilar and adopting FFT, Kanmo has positioned itself as a leader in Indonesia's dynamic retail landscape. Their journey underscores the critical role of an efficient OMS in navigating the complexities of multichannel retail, setting a benchmark for others to follow.
FAQs
Q: What is an Order Management System (OMS)? A: An OMS is a software solution that automates and streamlines the order processing activities of a business. It helps manage orders across various sales channels and locations, enhancing efficiency and customer satisfaction.
Q: Why did Kanmo Group upgrade their OMS? A: Kanmo Group upgraded their OMS to handle the complexities of multichannel retail operations, improve order fulfillment, and enhance overall operational efficiency.
Q: What is the MACH architecture in OMS? A: MACH architecture stands for Microservices, API-first, Cloud-native, and Headless. It provides greater flexibility, scalability, and adaptability compared to traditional monolithic systems.
Q: How does Distributed Order Management System (DOMS) benefit Kanmo? A: DOMS enables intelligent order routing across Kanmo’s network of warehouses and fulfillment centers, ensuring efficient order processing and reduced delivery times.
Q: What role did Codilar play in Kanmo’s OMS upgrade? A: Codilar facilitated the seamless migration of Kanmo’s OMS to FFT, maintained core functionalities during the transition, and planned future optimizations to leverage FFT’s advanced routing capabilities.
