Inventory visibility is one of the more impactful aspects of commerce when it comes to increasing sales, meeting customer demands and optimizing operations. Inventory visibility, to put it simply, is an ability to provide real-time inventory view across all distribution channels whether they be distribution centers, brick-and-mortar stores, suppliers or other inventory sources including the available-to-promise (ATP), an ability to display and promise the item availability along with future inventory, for example by allowing an order to be allocated against a purchase order.

So, what are the benefits?

A real-time inventory visibility can help businesses in:

• Increasing sales through accurate inventory information – customers demand real-time inventory information on different sales channels. Inventory information in online channels can affect the purchase decision, customer loyalty and the store inventory information is crucial to attract walk-in customers
• Avoiding stockouts and backorders – these will result in loss of sales, poor customer experience and even in the loss of entire customership
• Providing more accurate delivery times – can increase customer satisfaction and reduce order cancellations
• Making data-driven decisions for procurements, pricing and promotions by breaking down inventory silos – better equipped to adapt to customer needs, ultimately driving higher sales, lower costs, and improved customer satisfaction
• Improving omni-channel processes – providing visibility across stores, warehouses and distribution centers, which also helps in collaborating with other parties

Sounds amazing! … why isn’t everyone doing it?

While the benefits are great, there can be challenges:

• Unifying the entire enterprise inventory under one real-time inventory source can increase the complexity of enterprise architecture. Integrating all inventory data requires technological investment.
• Data accuracy poses a challenge. The real-time inventory is only effective when the inventory data is accurate and poor data management can lead to incorrect information.
• Integrating the systems can require upgrading or replacing some systems, and the coordination with third-party players such as suppliers or logistics partners can be complicated.

Order management system is at the center of inventory visibility

Order management system (OMS) can help in achieving and utilizing the full potential of real-time inventory visibility. OMS can be defined as a system that sits on top of the enterprise inventory information with the purpose of deciding the best order fulfillment strategy for the order. Additionally, OMS is capable of providing the real-time inventory and delivery time information to different channels while tracking the inventory supply and demand. One could say that OMS oversees the complete order process beginning even before the customer decides to make a purchase all the way to the end of order lifecycle.

OMS is not only providing the inventory information for sales channels but it is able to utilize the information for making complex order sourcing decisions that can help in fulfilling the order flexibly, with low costs and on time.

Why the benefits outweigh the challenges

Despite the potential complexity of implementing an Order Management System (OMS) and enhancing inventory visibility, the benefits outweigh the challenges. By investing in a well-integrated system, businesses can unlock capabilities for increased sales, greater efficiency, improve customer satisfaction, and boost profitability. While setup may require time and resources, the long-term gains are invaluable. Businesses that embrace this shift gain a powerful edge in today’s competitive market — one where customer expectations are high, and the ability to respond quickly is critical.

Investing in better inventory visibility isn’t just about managing stock — it’s about future-proofing your business for growth and success.