Order Management Workflow Made Simple: Steps to Automate & Optimize Your Ecommerce Fulfillment

Key Takeaways

Order Management Bliss: Optimizing your order management workflow aligns processes, reduces mistakes, improves delivery times, and boosts customer satisfaction. Understanding each stage is essential for implementing effective tools and strategies.

Sync to Win: Synchronized processes ensure a seamless ecommerce experience, leading to efficiency and fewer costly errors, ultimately delighting your customers.

Stages Set the Scene: Understanding the stages of order management is key to choosing the right improvements and tools to streamline your operations.

Ecommerce management involves many moving parts that need fine-tuning.

One of the most rewarding (and impactful) to optimize is your order management workflow.

Because when all relevant processes are in sync, the rest falls into place. The result is fewer costly mistakes, more timely deliveries, and grateful customers.

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But let’s be real—you need to understand the different stages first. Only then can you introduce the right tools and strategies to transform your workflow. 

That’s what we’ll cover in this post.

What is an Order Management Workflow?

An order management workflow outlines the series of steps involved from order placement until delivery. It’s the foundation of an efficient, scalable, and smooth order fulfillment process. 

Greasing its wheels can keep all processes in sync, coordinate tools and teams, and ensure no important detail—be it inventory, payment, or customer info–slips through the cracks.

The Stages of a Streamlined Order Management Workflow

A well-structured order management workflow ensures that every order moves efficiently from checkout to delivery (and beyond).

Here’s how it works in action for Kendra Kookware, a fictional brand catering to aspiring home chefs who want pro-level tools.

Bonus: I made some tool suggestions you can leverage to optimize every stage. These tools are the secret hacks to nailing the process.

1. Order entry and capture

The first step in the order processing workflow involves collecting order details from sales channels like your website. 

It centralizes necessary information about the order (ex: quantity) and the customer (ex: shipping preference) to set things in motion. 

2. Payment processing and verification

Before an order moves forward, an efficient order management system verifies payment details and checks for fraudulent activity. 

This stage ensures transactions are always authorized and encrypted to securely usher the funds to your merchant account. 

It’s a necessary measure for both the business and the customer.

3. Inventory management and stock allocation

This stage checks inventory levels to confirm stock availability. 

If a product is out of stock, you can create a backorder or suggest a substitute product to the customer. 

The availability of real-time data is necessary to avoid such inconvenient situations.

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4. Order fulfillment and shipping

Once the order is confirmed, it’s routed to the right warehouse. The warehouse team pulls their sleeves up to pick, pack, and ship the right items.

All these steps require strategic decisions that can save you tons of money. 

Picking needs the fastest routes to optimize worker efficiency; packing must use the most cost-effective materials to secure the items and ensure safe delivery.  

The shipping process involves arranging order delivery with the most affordable third-party option at the moment, if you don't handle it in-house. 

5. Order delivery and status updates

The package has left the warehouse, but the order remains in your realm of responsibility. Automating status updates is necessary to ensure real-time accuracy. 

Tracking and monitoring its status and relaying the info to your shoppers is part of an excellent customer experience. 

At the same time, it gives you a chance to spot errors in the process and course-correct ASAP.

Author’s Note:

Discover the best practices and tools for shipment tracking in this blog post.

6. Post-delivery processes

Factoring in returns and exchanges when streamlining your order management workflow is important. 

Customers who shop online put so much value in brands that facilitate a smooth post-delivery process. 

At this point, you handle the return of the items to your warehouse, where you can check for damage to approve the process.

Author’s Note:

Check out this guide on ecommerce returns best practices to handle these instances with ease and efficiency.

Why Optimized Order Management Workflows Matter

You have a responsibility to deliver orders on time. Improving your order management system is the first step to fulfilling that.

When you standardize all associated processes, it can lead to a cascade of benefits: 

• Operational efficiency. Access to real-time data can help you prevent hiccups in terms of demand planning and order routing, making your business more agile. 
• Workforce productivity. Ninety-four percent of surveyed workers said they perform repetitive, time-consuming tasks in their role. Your fulfillment staff is no different. When you streamline and automate key processes, you free up their time for more strategic tasks. 
• Smooth coordination. Interconnected processes and platforms can improve coordination between teams. 
• Faster order fulfillment. Removing repetitive tasks and costly errors with automation mitigates unnecessary friction.  Studies show automation can improve order processing times by 10% to 15%. 
• Customer satisfaction. Twenty-five percent of shoppers reportedly cancel orders if delivery is taking a long time. Speeding up fulfillment is one way to prevent this loss and remain in your customers’ good graces. 

All these to say: A solid order management workflow paves the way for smooth operations, minimizing errors, reducing delays, and moving things along as necessary.

I’ve seen clients achieve 30-50% faster order processing, a 90% reduction in order errors, and 20-40% lower operational costs after optimizing their workflows.

 

One of the biggest impacts is on customer satisfaction—when orders are processed quickly and accurately, it leads to better reviews and increased loyalty

Karl Threadgold

managing director at Threadgold ConsultingOpens new window

Let’s dive deeper into what it takes to make these advantages within reach.

How to Automate and Optimize Your Order Management Workflows

Automating messy or inefficient processes can create even more headaches down the line.

Here’s how you can improve your order management workflow and leverage automation for smoother, faster operations.

Step 1: Audit your current workflow and identify bottlenecks

Randomly putting out fires at different order management stages is never a good strategy. It’ll just exhaust you.

Opt for a systematic approach, which involves auditing your entire workflow to find where the issues lie.

You’ll want to trace how orders move through each stage and catch inefficiencies before they pile up. Look for things like:

• Manual delays. Manual invoicing, stock updates, or warehouse fulfillment processes drag efficiency downstream.
• Redundant steps. Different departments input the same data in separate Excel sheets to track payments and order status, leading to mismatched records.
• Recurring bottlenecks. Customer orders back up because a sales rep keeps forgetting to confirm stock availability before pushing for fulfillment.
• Visibility gaps. No real-time alerts for orders at risk of late delivery forces frustrated teams to scramble at the last minute to catch up.

A common issue is inventory mismatches, where stock levels aren’t updating in real time.

 

This leads to backorders or overselling, which nobody wants to have!

 

Manual processes are another big culprit, especially when orders need to be checked or adjusted before they can move forward.

 

Automating key steps like order routing, stock allocation, and invoicing has helped lots of businesses reduce bottlenecks.

Karl Threadgold

managing director at Threadgold ConsultingOpens new window

Author's Note:

Grab a whiteboard, or a notebook, or open up a tool like Lucidchart or Zapier Canvas to visualize the full picture.

With the trouble spots mapped out, you can start planning how to roll out the automation. 

Go after the manual processes crippling your efficiency first. The faster you clear up these roadblocks, the sooner you’ll reduce the strain on your team.

But if your workflows aren’t time-sensitive or don’t have urgent bottlenecks, go the sequential route.  Automate your order management workflow one stage at a time.

Optimizing these friction points can also help gain buy-in from stakeholders who’ll see immediate, impactful results.

Author's Note:

If you’re tired of the constant back-and-forth with fulfillment errors and slowdowns? Here’s an article discussing how order management automation works to streamline your process.

Step 2: Select the right order management system

You’ve sifted out the most crucial tasks suitable for automation. Now, it’s time to pick the best order management system (OMS) to execute it.

Your OMS automates the entire order fulfillment operation across all channels—from purchase orders to order tracking and returns. And as you’ve seen in the section above, it’s a handy tool for almost every stage.

Look for one that integrates with your existing tech stack. 

Cin7 Core, for instance, boasts over 200 direct integrations with top ecommerce, accounting, CRM, and third-party logistics providers.

Start with a systems readiness check to ensure your existing systems are ready for change. Look at factors such as compatibility, sizing, integrations, and business processes.

Tim YatesOpens new window CEO at DataXstreamOpens new window

Other must-have features are real-time order tracking capabilities and omnichannel fulfillment. 

Author's Note:

Look for order management features based on what you need to level up your workflow.

There’s less risk of human errors, fewer delays, and a faster, more reliable workflow with OMS. Consider these top solutions to narrow your search for the best fit for your business.

1. 1. Linnworks — Best for centralized ecommerce management
2. 2. Bloomreach — Best for consistent customer experiences
3. 3. SellerCloud — Best for inventory synchronization
4. 4. Rierino — Best for dynamic product customization
5. 5. Cloud Commerce Pro — Best for aggregating orders from every sales channel
6. 6. Orckestra — Best API-based platform
7. 7. SAP Commerce Cloud — Best for intelligent selling solutions
8. 8. NetSuite Commerce — Best for real-time business intelligence
9. 9. Carat by Fiserv — Best for robust payment solutions
10. 10. Sana Commerce — Best for B2B businesses

Show More (5)

Rolling out your new OMS needs to be done carefully. 

An OMS is very data-driven.

 

If SKUs are not set up correctly, customer data elements are not standardized, or you index toward capturing the order and fixing it along the way, the OMS will be seen as the problem impacting the customer.

 

You need to make sure your orders and the data for processing the orders are well-defined.

 

Otherwise, you will spend a lot of time digging into issues that could have been avoided.

Keith Gorney

head of supply chain at PivotreeOpens new window

Here are a few tips to keep in mind to make sure your OMS bolsters, efficiency, not harms it:

• Plan the setup. Configure the system and migrate clean, duplicate-free data to avoid implementation hiccups.
• Train your team. Equip employees with role-based, hands-on training to help them learn the system inside out. Educate them on data entry and monitoring best practices.
• Monitor and adjust. Check-in with your team about any challenges or issues they face pre- and post-implementation.
• Measure success. Track fulfillment speed, order accuracy, and stock availability to reap your investment’s ROI.

Step 3: Integrate with payment gateways, sales channels, and shipping carriers

Automated order management workflows thrive on integration. 

Your OMS, sales channels, payment gateways, and shipping carriers don’t connect by default. But thanks to integration, all these systems can all sync up.

I’ve outlined the different stages earlier to give you an overview of the complete order management workflow, but here’s a more direct breakdown of the fully integrated process:

Syncing these systems up leads to this:

OMS solutions like Linnworks come with built-in integrations to tons of platforms.  All you have to do is log in, authorize the platforms, and sync everything up.

That’s why, back in Step 2, I recommended choosing an OMS that fits with your existing tech. 

But if direct integrations aren’t an option, this isn’t an issue. You can always invest in tools like Zapier or custom-built APIs to bridge the gap.

Step 4: Automate real-time notifications and tracking updates

Based on a study conducted by Parcel Monitor, post-purchase notification averages a 62% open rate. Keeping your customers in the loop with timely updates builds trust and enhances customer experience.

Of course, you don’t want to spend your time downloading order details and uploading tracking information every single time.

Real-time observability is key.

 

If we are able to monitor order statuses through the workflow, we can identify anomalies based on the amount of time an order sits in a status and react to any delays—both systemic and process driven.

Keith Gorney

head of supply chain at Pivotree

To automate the communication aspect of your order management workflow, take advantage of the built-in notification tool in your ecommerce platform or CRM.

Sync it with your OMS to send customers automatic order details and shipping updates. Tools like Linnworks let you set up order-related notifications.

Step 5: Leverage tools and practices to improve order accuracy

Automation doesn’t guarantee 100% order accuracy. 

Stack the deck in your favor by investing in tech tools like barcode scanning, SKU tracking, and automated order handling.

• Barcode scanning. The warehouse staff can use the scanner when picking, packing, and shipping items. Every scan automatically updates the OMS and other systems.
• SKU tracking. Stock keeping units (SKUs) help track products down to the smallest detail. Each variant gets a unique SKU, so it’s easier to locate stocks, monitor sales, and prevent mix-ups.  Barcode scanners or RFID tags capture SKU data and sync it into an IMS or OMS for real-time inventory updates.
• Automated order handling. This practice leverages robots and smart software to optimize the pick-and-pack process. Example: Nespresso automated their order handling with robotic pickers, achieving 99.9% order accuracy and 200% productivity.

We expanded the use of automation and barcode scanning technologies.

 

Double-verification systems, where picks or packs are cross-checked, also drastically reduced errors for us.

 

Additionally, training people to deal with exception cases, such as an item being out of stock or an order being shipped to the wrong address, improves accuracy, too.

Brian Lim

founder and CEO of I Heart RavesOpens new window

Best practices like standardizing templates for order forms and packing sheets can help minimize mistakes. You’re less likely to miss or misread order details with consistent layouts.

Finally, implement multiple quality control checkpoints. 

• Order comes in? Check. 
• Picking? Check. 
• Packing? Check. 
• Shipping? Check.

Automation handles the bulk of the work, but human oversight is a necessary safety net.

Step 6: Adopt workflow management software

OMS focuses on the order management process—order intake, tracking, and fulfillment. It doesn’t necessarily coordinate workflows across different teams.

This is where automation can get a bit chaotic for large-scale operations.

Sales blames fulfillment for delays. Fulfillment blames inventory for stock issues. Customer service is stuck in the middle. 

Workflow management software (WMS) connects departments to avoid the mess. It centralizes key tasks like:

• Order entry: Automatically assigns and routes orders to the right team without manual hand-offs
• Payment processing: Double-checks that payments are verified before fulfillment
• Shipping label generation: Creates labels and syncs with carriers for real-time tracking, exception handling, and seamless interdepartmental coordination

A WMS should work like your OMS. It should fit your existing systems while taking the growing pains out of scaling.

Step 7: Commit to ongoing workflow optimization

Revisit your workflow map from Step 1 at least once a quarter (or sooner if bottlenecks keep popping up). Make optimization a long-term habit by conducting:

• Quarterly workflow audits. Look for outdated steps, redundant processes, or new bottlenecks caused by system changes or external factors. Document necessary changes.
• Monitor key metrics. Compare order processing times, fulfillment accuracy, and error rates before and after optimizations. Use reporting tools in your OMS or WMS to generate up-to-date insights.
• Pre-peak season adjustments. Before big sales periods, stress-test your system to handle the surge. Train staff on contingency plans in case of challenges.
• Continuous feedback loop. Your team and customers can spot inefficiencies you might miss post-automation—listen to them.

Then, repeat the process. Automating order management workflows is a cycle of continuous improvement to future-proof your fulfillment strategy.

Challenges in Order Management Workflows (& How to Overcome Them)

Order management gets more complicated as you add sales channels, roll out new products, and pretty much do anything that expands your business. 

To cope with growing pains well, be ready for the following challenges:

Managing complex omnichannel orders

Forbes cited that businesses with omnichannel strategies retain 89% of their customers, so connecting all your sales channels is a good move.

But it can put a damper on your existing order management process if you don’t choose the right tool.

One of the biggest challenges we see brands face is managing inventory across multiple sales channels while ensuring fulfillment meets marketplace SLAs.

 

Late shipments, overselling, and manual workflows can quickly become obstacles to growth.

Courtney Samok

regional marketing manager at ChannelEngineOpens new window

Your choice of OMS influences your adaptability. If it integrates well with your ecommerce tech stack, it can facilitate smooth data flow and improve your processes in the long run.

Samok expounds: 

The solution lies in centralizing marketplace management, automating stock updates, and improving warehouse coordination. Many brands are still refining their approach to fulfillment by improving data-driven decision-making.

Handling order spikes during peak seasons

You love to see some order spikes. But you'd hate to see your team scrambling to replenish stock levels during peak seasons. 

It throws your order management system out of sync. 

To fulfill the surge in demand, you need an inventory forecasting tool that tracks your performance and understands market trends and customer behavior. 

When the busy period comes around, these features will ensure you always have enough. 

Author's Note:

I wrote a full guide to inventory forecasting here. It has plenty of tips and tricks for ensuring you don’t suffer from overstocking or stockouts in the most critical times.

Dealing with supply chain disruptions

Supply chain disruptions should have a full chapter in your order management playbook. 

Having contingency plans for shipping and logistic delays can prevent hiccups in order management.

The risk of relying on just one supplier is high for your business. 

When you partner with various carriers and use software to determine the best fulfillment partner for each order, you can better negotiate rates and terms, resulting in cost savings.

Final Thoughts

Understanding how your order management workflow looks—and optimizing every stage—ensures smoother operations, fewer delays, and a better customer experience. 

A streamlined order management system can prevent stockouts, reduce fulfillment errors, and support your overall business growth. 

With the tool suggestion and best practices above, you can improve order accuracy, speed up delivery, and keep customers satisfied. 

Upgrade your order management workflow today.

Here are other useful resources on the topic:

• 25 Best Order Fulfillment Software For Ecommerce in 2025  
• A Guide To The Global Order Fulfillment Process 
• A Complete Guide To Inventory Tracking: Methods, Best Practices & Top Tools 
• Micro-Fulfillment: The Complete Guide to Optimizing Your Ecommerce Operations for Same-Day Delivery 

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Order Management Workflow FAQs

Order management workflow automation covers a lot of ground. If you need more clarity, check this FAQ section for more insights.

Do I need to automate my workflow if I only sell on one platform?

Not always! You may not need automation for a handful of orders in one platform.

But if fulfillment starts eating up your day—especially with no one to delegate to—it can take the load off.

Don’t wait for delayed orders, high return rates, and frequent inventory mix-ups to start automating.

How can I manage returns efficiently as part of my workflow?

The first thing is to set clear return policies. Clarify to customers what qualifies for a return and how to do it.

Then, use your OMS or ecommerce platform to set up a self-service return portal. Sync it with your inventory system to update stock levels in real time.

How do I handle order spikes without overloading my workflow?

Plan smart with IMS or OMS to predict order surges and prep ahead. They help you stock up early without hoarding too much inventory.

You can also negotiate with suppliers for faster lead times or emergency restocks during peak season.

If processing orders gets overwhelming, consider hiring temporary staff or outsourcing fulfillment.

What metrics should I track to measure the success of my order management workflow?

Track these order management KPIs to gauge efficiency: order accuracy, on-time delivery, order cycle time, and order fill rate. Customer satisfaction scores are also worth monitoring.

These metrics indicate how well a business processes and fulfills orders. For qualitative insights, use reviews and surveys to track customer satisfaction.