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How Composable Order Management Systems are Transforming B2B Commerce

Kibo CEO Ram Venkataraman digs into how a composable OMS can boost flexibility and enable seamless integration to meet rising customer expectations in B2B.

As B2B commerce continues to shift online, companies face rising customer expectations for fast, seamless purchasing experiences across multiple channels. According to McKinsey & Co., more than 70% of B2B buyers are moving to remote or digital purchases.

Many B2B organizations, however, are held back by outdated ERP systems that struggle to meet the demands of modern commerce. This is where a composable order management system (OMS) can provide a game-changing advantage, offering greater flexibility, scalability, and real-time insights.

Why Traditional ERP Systems Fall Short for Order Management

Historically, ERP systems were designed for internal operations, not customer-facing processes. While they support manufacturing, inventory management, and accounting, they lack the agility needed for complex order fulfillment across diverse channels. ERP limitations can include:

  • Inflexibility: ERP systems often use a monolithic architecture that is difficult and costly to modify.
  • Scalability Issues: Integrating additional sales channels, such as ecommerce sites or B2B marketplaces, is cumbersome and costly.
  • Fragmented Inventory Data: ERPs were not built to unify real-time inventory data from multiple sources, leading to stockouts or overselling.
  • Lack of SLA Visibility: Many ERP systems can’t easily track Service Level Agreements (SLAs), making it challenging to meet customer-specific requirements.

The Benefits of a Composable Order Management System

A composable OMS, built on a modular, API-driven architecture, solves many of these challenges by adding specialized order management capabilities that can either replace an ERP or integrate seamlessly with an existing ERP. Key benefits include:

Modularity and Flexibility

A composable OMS offers a modular structure that enables B2B companies to select and scale individual components, such as inventory management, order routing, and SLA monitoring, based on specific needs. This flexibility allows businesses to easily integrate new capabilities without overhauling their entire system. For instance, a company can add new fulfillment methods, like drop-shipping, as demand grows, without extensive development or downtime.

Real-Time Inventory Visibility Across All Channels

In B2B, where large orders and precise delivery times are common, knowing exactly how much inventory is available and where it’s located is crucial. A composable OMS connects data from various warehouses, distribution centers, and supplier networks, giving sales teams and customers accurate, real-time inventory views. This helps prevent stockouts, reduces overstock, and enables accurate lead times, supporting smoother order fulfillment and reducing fulfillment costs. By having a unified inventory view, companies can more reliably meet service level agreements (SLAs), enhancing customer trust and satisfaction.

Seamless Integration and API-Driven Expansion

With composable architecture, an OMS can integrate seamlessly with other systems, such as warehouse management (WMS), customer relationship management (CRM), and ecommerce platforms, via APIs. This enables B2B businesses to expand to new sales channels like B2B marketplaces, mobile apps, or even direct-to-consumer (DTC) offerings without disrupting existing processes. Additionally, an API-first approach allows companies to respond quickly to market trends by connecting to new partners, suppliers, or services as needed.

Enhanced Customer Experience

B2B customers increasingly expect experiences similar to B2C, where real-time order tracking, personalized communication, and fast delivery are standard. A composable OMS supports self-service tools, live order updates, and visibility into shipping and inventory status, which helps meet these expectations. For customer support teams, real-time data access empowers them to resolve issues faster. This level of transparency and responsiveness builds stronger customer relationships and sets the business apart in a competitive market.

Operational Efficiency and Cost Savings

Manual order reconciliation, inventory checks, and status updates are time-consuming and error-prone when managed in a rigid ERP. A composable OMS automates these processes, cutting down on repetitive tasks and reducing human error. This allows customer support and operations teams to focus on more strategic activities rather than troubleshooting or handling manual data entry. The result is a reduction in operational costs, quicker order processing times, and greater accuracy—essential for maintaining profit margins in high-volume B2B environments.

Scalability to Support Business Growth

As B2B companies expand, a composable OMS makes it easier to scale without major technology overhauls. New functionality, such as support for subscription models or bundled products, can be added incrementally. The system’s cloud-native infrastructure further supports scalability by allowing businesses to dynamically adjust their resources in response to seasonal spikes or growth phases. This means companies can scale their operations cost-effectively and adapt to changing business needs and market opportunities.

Data-Driven Decision-Making

A composable OMS provides centralized, real-time data on inventory, orders, and customer behaviors, enabling B2B companies to make data-driven decisions. For example, insights on order patterns or demand trends can guide inventory planning and help optimize fulfillment strategies. By analyzing this data, companies can reduce costs associated with inventory holding, plan for demand spikes, and better align with customer needs. The data also supports advanced reporting to inform strategies for cross-selling, upselling, or personalized offers.

Implementing a Composable OMS for B2B Success

Unlike traditional ERP upgrades, adding a composable OMS doesn’t require a disruptive system overhaul. With a modular, microservices approach, companies can gradually integrate the OMS into their existing tech stack, prioritizing the components that offer the greatest immediate value.

As B2B commerce continues to grow, composable order management systems are essential for companies looking to keep up with customer expectations, streamline operations, and achieve scalable growth.

Profile photograph of Ram Venkataraman

Ram Venkataraman

CEO, Kibo

Ram Venkataraman is the CEO of Kibo, where he leverages over 25 years of experience in the software industry to drive the company's growth and success. His leadership philosophy centers on nurturing individual and team well-being while passionately serving employees, customers, and partners. Ram's career encompasses a broad spectrum of roles, from guiding bootstrapped startups to steering functions in public companies. Prior to his tenure at Kibo, he was the CTO of NCR payment platforms, demonstrating his deep expertise in technology and product development.