How Order Tracking Software Works

  • Order tracking software is an integral part of the order management process flow.

  • Order tracking software is part of OMS software. It integrates with 3PL providers and makes dropshipping and BOPIS seamless.

  • With 1,990 stores across the U.S. and an online store, Target implements order tracking software to continually satisfy customers.

  • fabric OMS has an order tracking system that facilitates order fulfillment from any warehouse and informs customers of their order status.

Order Tracking Software Definition

Order tracking software plays an instrumental role in the order management process flow as it helps retailers monitor inventories efficiently and inform customers of the status of their orders.

When properly integrated into the order management process flow, order tracking software ensures that order errors are mitigated and orders are filled, picked, and delivered on time. An order tracking software is not a stand-alone tool; it is part of an order management system (OMS).

Overview of Order Tracking Software

A study found that 97% of customers expect to track their purchases, and about 84% of them would not return after a single bad shipping experience. That means that an order management process flow, even when effective, can only be complete and seamless when it includes order tracking.

Order tracking software enables e-commerce businesses to provide their customers with added value such as estimated delivery date, tracking number, and delivery notifications. Not only does this make customers happy, but it also builds trust.

The typical order management process flow looks like this:

  • Order received: An OMS sends customers a notification that their order has been received and is processing.
  • In process: The OMS records the order, updates the inventory, and releases the order.
  • Pick the inventory: The OMS updates the inventory and sends a notification to the warehouse so that an order management specialist can pick the order.
  • Pack the inventory: The package is packed and sorted according to its destination.
  • Shipped: The retailer ships the order to the customer via a third-party logistics service (3PL) provider and sends customers a tracking number.
  • Delivered: The 3PL delivers the order and notifies the customer that the order has arrived.

Order tracking software and OMS


Order tracking software and OMS work in tandem. Most businesses use order management software to provide customers with a much better shopping experience, and order tracking is a part of that.

Retailers also use order tracking to update inventory and prevent warehouses from being out of stock, which is one of the core features of OMS software. Using an order management software that does not integrate order tracking can break your process flow as it would be difficult to manage inventory.

How an Order Tracking Software Works

At its core, the role of order tracking software is to make the entire order management process flow more seamless and customer-centric. As such, it integrates with all order fulfillment methods, including dropshipping, buy online pickup in-store, and 3PL providers.


A way for online businesses to fulfill customer orders is through dropshipping. However, dropshipping can become a nightmare due to its complex structure, especially if you don’t have order tracking software.

Dropshippers work with several suppliers–meaning the products are sourced from different locations. Order tracking software fits in by providing a postal tracking code that is sent to the stores as a fulfillment record associated with the order. The stores then send the shipment tracking information to the customers.

Buy online pickup in-store

Most retailers adopt the buy online pickup in-store (BOPIS) model to meet customer expectations. But while it makes order fulfillment easier, BOPIS is far more complex to manage without order tracking software.

According to Forter, BOPIS fraud increased 55% annually in the first half of 2020 alone. It means shoppers cannot locate their ordered product, resulting in theft and misplaced packages, often causing retailers to lose inventory.

Order tracking software provides customers with real-time data of orders, letting them know the nearest location for their package and when the order is ready. It also ensures that products are safe until the customer picks them up.

Third-party logistics providers

When retailers use 3PL providers, they no longer have direct control over distribution. Thus, the need for order tracking software is paramount to inform customers about the status of their orders.

An order tracking software automates the process of transmitting order information between 3PLs, customers, and retailers. It automatically updates the retailer’s database when the order is fulfilled. As a result, the customer is happy, and the retailer has a seamless order management process and efficient inventory management.

Example of Order Tracking Software

With stores across all 50 states and an online store with an extensive range of products, Target is one of America’s largest retailers. With more than 2 million daily visits to its online site, Target has many orders that need to be tracked.

The company uses order tracking software to help maintain visibility on inventories while offering customers a smooth experience. Target’s order tracking system supports its fulfillment operations through BOPIS, dropshipping, and third-party logistics providers.

As a result, Target can manage inventory across all of their 1,900 stores and 44 distribution centers while also ensuring orders are delivered on time, satisfying customers.

Topics: Product
Ernest Bio Bogore

Tech advocate and writer @ fabric.

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