Order management system
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An order management system, or OMS, is a software system used in a number of industries for order entry and processing.
[edit] eCommerce and Catalogers
A common use of order management software is by eCommerce and Catalog companies. This software facilitates entering of an order, whether via a web-site shopping cart or a data entry system (for orders received via phone and mail). It typically captures Customer Proprietary Information and Account Level information. Credit Verification or Payment processing is done to check for validity and/or availability of funds. Once entered, valid orders are processed for warehouse fulfillment, such picking/packing/shipping.
Orders can be received from businesses, consumers, or a mix of both, depending on the products. Offers and pricing may be done via catalogs or web sites or TV/newspaper/radio advertisements.
An integrated Order Management System may encompass these modules:
- Product Information (descriptions, attributes, locations, quantities)
- Vendors, Purchasing, and Receiving
- Marketing (Catalogs, promotions, pricing)
- Customers and Prospects
- Order Entry and Customer Service (including Returns and Refunds)
- Financial Processing (credit cards, billing, payment on account)
- Order Processing (selection, printing, picking, packing, shipping)
- Data Analysis and Reporting
- Financials (Accounts Payable, Accounts Receivable, General Ledger)
[edit] Financial Securities
Another use is as a software-based platform that facilitates and manages the order execution of securities, typically through the FIX protocol.
First, it has to allow firms to input orders to the system for routing to the pre-established destinations. It also has to allow firms to change, cancel and update orders. When an order is executed, the OMS has to update its database and send an execution report to the order's originating firm. An OMS should also allow firms access information on orders entered into the system, including detail on all open orders and on previously completed orders. Some management functions of an OMS might include: establishing and modifying order routing tables, entering and modifying dividend and stock split transactions, and processing and managing underwriting functionality. An OMS may offer direct market access (DMA). Typically only exchange members can connect directly to an exchange.
An OMS encompasses five components:
- connectivity to a broker or market, typically using FIX messaging.
- trading blotter
- post-trade support
- compliance
- portfolio modeling
An example of a buy-side order management systems is Eze Castle Software ([1]).
[edit] See also
- Order capture
- Multi-channel order management
- Order fulfillment
- Sales Order
