Order Management Software Key Terms

Knowledge of order management lingo will help you choose a software program

By Shannon Tani

Order management software is an essential part of any business that sells products rather than services. It should be able to track inventory and process orders while still having a user interface that's easy to navigate. Before choosing a software product, companies should take the time to assess their needs to make sure they select an order management software program that does everything they need it to do. Knowledge of some of the key terms related to the software can help users understand software features.

Inventory management

Inventory management, sometimes called inventory control, is the act of periodically reviewing the inventory that a company has in stock in order to determine what the company needs to restock. Proper inventory control maximizes profits by preventing loss. Order management software automates this process.
Try: Management-Hub.com discusses inventory management and the methods that a company can use for inventory control.

User interface

The user interface of a software program is the way that it looks to the user. When choosing a software program, look for a user interface that is intuitive and easy to learn. This will help employees become used to the system.
Try: Usernomics discusses the importance of good user interface design when programmers are creating a software product.

POS integration

Point-of-sale, or POS, integration means you can use the order management software wherever you sell goods. Whether online or in a variety of stores, this is a good feature to have.
Try: POSMatic has a POS software program. Its website explains how it works along with an easy-to-understand diagram.

Country of Origin Labeling (COOL)

For safety purposes, some companies must label their products with the country of origin. For companies that must comply with this regulation, it's smart to choose an order management software program that includes this feature.
Try: The U.S. Department of Agriculture explains country-of-origin labeling.

Order processing

Order processing entails all of the steps involved with selling your product, from the time that your customer orders it to the time that it reaches your door. The software you choose should track this entire process.
Try: For a look at what order processing may include, check out Accupro.

FIFO and LIFO

FIFO stands for "first in, first out," while LIFO means "last in, last out." These are terms that describe which inventory the company will ship to the customer. For example, if the company uses the FIFO system, then the first item to arrive at the warehouse will be the first one that the company ships to the customer.
Try: Financial Education discusses the two methods.