Order Management with SAP – A Short Guide to SAP OMF

Discussing the exclusions within SAP OMF is crucial for clarity. SAP OMF does not encompass order sourcing, nor does it handle real-time stock availability or compute POS transaction calculations, for that matter. It also does not provide the option to change the sales order. It also does not act as a customer service centre front end. These functionalities are currently being segmented and refined into various cloud-based products under development by SAP. Historically, such features were managed within different modules of SAP CAR, specifically POS-DTA and OAA. Advanced custom order sourcing was typically tailor-made within ERP or CRM systems at numerous client sites, while fundamental order management was conducted within SAP ERP or S/4HANA.

Order manipulation and customer facing activities are done in the new CX tools of SAP. To grasp the role of SAP OMF, we'll narrow our attention to SAP OMSA and SAP OSTA, examining what features they deliver.

SAP is embracing innovation by transitioning to an enhanced cloud-based model for its order management functionalities. With this shift, the focus on sourcing and availability has been reallocated to SAP OMSA and Point of Sale (POS) transactions crucial for store availability and sourcing have been incorporated into SAP OSTA. These both are very new cloud solutions, running cloud-natively on SAP BTP. This strategic move raises the question: What role does SAP OMF play in the current ecosystem, what features does it offer, what specific business value does it deliver, and when does an SAP client need SAP OMF?

SAP Order Management Foundation (OMF) features distinct functionalities for enhanced order processing. It includes Order Splitting, where SAP OMF divides a single sales order from a webshop into multiple orders for various dropship vendors and sources, and Order Orchestration, which then efficiently directs these orders to the respective fulfilment systems, such as a client's ERP system or a dropship seller's system. Additionally, it handles Order Activities by collecting updates on order status from each endpoint for processing, covering a range of activities like shipping and packing. The Order Status Aggregation feature in SAP OMF is crucial, as it sums up these updates from different fulfilment stages, providing a consolidated view of an order's journey across diverse systems, thereby enhancing the overall visibility and communication efficiency for customer service and end-users.

1. When a client has intricate order management processes that involve multiple sales channels, third-party vendors or needs to manage orders across different geographies and systems.
2. When a client's business grows and the volume of orders increases, SAP OMF provides the necessary scalability to handle large numbers of transactions efficiently.
3. When businesses that fulfil orders from various sources, including their own inventory, third-party vendors, or drop-shippers, can benefit from the streamlined process SAP OMF offers.
4. When improving customer service is a priority, especially in providing accurate and timely order status updates, SAP OMF's centralized system is invaluable.
5. When organisations are looking to simplify their order management processes, reduce manual interventions, and minimize errors.
   

The functionalities offered by SAP OMF are innovative, addressing needs that were not previously accommodated in standard SAP ERP, such as managing the sale of third-party products or orchestrating orders among various third-party sellers. While SAP OMF may not directly replace existing features, it could potentially supplant custom-built order management functionalities or the standard sales order management features in S/4HANA, providing a more integrated and efficient approach.

The value of SAP Order Management Foundation (OMF) lies in its ability to streamline and optimize order management processes, offering several key benefits:

1.  Centralised Order Management: SAP OMF serves as a single point of truth for all sales orders across various channels, simplifying management and tracking.
2. Enhanced Customer Experience: By providing accurate and timely updates on order status, SAP OMF improves transparency and communication with customers, leading to increased satisfaction and trust.
3. Efficiency in Order Processing: The system's ability to split and route orders to appropriate fulfilment systems reduces manual intervention, speeding up the order-to-cash cycle.
4. Flexibility and Scalability: SAP OMF is designed to accommodate different types of order processes and can scale to meet the growing demands of a business.
5. Integration with Multiple Systems: It seamlessly integrates with various sales channels and fulfilment systems, ensuring smooth operation across diverse business models.
6. Data Accuracy and Reduced Errors: By automating order splitting and routing, SAP OMF minimizes human errors, ensuring higher accuracy in order processing.
7. Improved Decision Making: The aggregated data and insights provided by SAP OMF help in making informed decisions regarding inventory management, logistics, and customer service strategies.
8. Cost Reduction: Streamlined processes lead to reduced operational costs, as less time and resources are required to manage orders.

1.  SAP OMF does not allow changes to orders - not manually and not via API. Any modifications are only recorded as order activities, without actual adjustments in total quantities or prices, as total recalculation of the order is not possible.
2. The system currently lacks the capability to process order returns.
3. There is no feature to turn off article validation for order items in SAP OMF.
4. There's a strict limit on the number of order items, which requires adjustment for greater flexibility.
5. There's a need for more adaptable order status aggregation methods in SAP OMF.
   

SAP OMF is an innovative cloud-native solution that enables businesses to optimise their order management processes. If you're looking to streamline your processes, require a centralised approach across various systems, and aim to enhance the overall customer experience, SAP OMF is a highly recommended choice. Especially considering SAP's strategic focus on future developments in the cloud.

If you're ready to embark on your journey to the cloud and need assistance, as the transition from on-premises to cloud is more of a technical transformation than a change in business processes, we are here to support you.

Let's discuss your specific requirements and needs to ensure a seamless and effective transition for all cloud-native SAP solutions, such as SAP OSTA, SAP OMSA, and SAP OMF.