SAP OMSA – the new innovative cloud sourcing tool from SAP

André Dotzler

Henning Sanders

Introduction

SAP OMSA is a term that you may have come across in presentations, discussions, or forum threads. But what does OMSA actually stand for, and what benefits does implementing this system bring? In our new blog series “SAP OMSA – SAP’s Innovative Cloud Sourcing Tool”, we share insights gained from our experiences in customer projects. We kick off with an introduction to the topic in the first part. What exactly is SAP OMSA, and what are its key functions? Using real-life examples, we want to make it easier for you to understand how the system works.

What are the core functions of SAP OMSA?

SAP OMSA stands for Order Management for Sourcing and Availability and is a product housed within the SAP Industry Cloud. It has the capability to communicate with both SAP and non-SAP systems via APIs, meaning it can:

  • Check the availability of a product or shopping cart for delivery.
  • Specify from where it should be delivered.
  • Provide information on when the shipment will be dispatched to the customer.

What business requirement does SAP OMSA fulfil?

An increasing number of businesses are now managing their inventory across multiple systems rather than relying solely on a single system like an ERP. This approach allows for the easy implementation of processes such as dropshipping.

What’s more, when purchasing a product, customers expect to know if and when an item is available. This not only applies to online shopping but also to in-store sales processes. Achieving this requires a centralised sourcing tool that can effectively track and manage all available inventory.

What does SAP OMSA offer as a solution?

The idea behind SAP OMSA is that all inventory management systems send their current stock levels to SAP OMSA at intervals of X minutes. Systems requiring availability information, such as a webshop, therefore only need to query one system in order to access this data. Besides providing information about availability, SAP OMSA can also handle sourcing. This was previously covered by the ERP system, but nowadays, sourcing in this way is pretty much impossible due to the various sources of inventory. Using predefined strategies and KPIs, SAP OMSA identifies the most suitable delivery facility and shipping service provider for the shopping cart and communicates this information back to the request system. This allows users to know when they will receive their desired product and which shipping service provider will deliver it – all during the ordering and checkout process.

What integration capabilities does SAP OMSA offer?

Being an SAP product within the SAP Industry Cloud, it can be directly integrated with the SAP S/4HANA backend for seamless access to articles and inventory data. Other systems can easily connect through API integration to share or request information with SAP OMSA. Moreover, other SAP Industry Cloud products like OMF or OSTA can also be linked to OMSA for data exchange.

SAP OMSA in a nutshell

SAP OMSA offers a robust solution for inventory management and sourcing within businesses. By centrally connecting all inventory management systems and streamlining the sourcing process, companies can develop a cohesive sourcing strategy and effectively respond to customer inquiries across various channels.

Availability display

Upon request, the user can be shown the exact availability and delivery date during the checkout process.

Sourcing optimisation

Sourcing can now be more flexible, guided by custom parameters, leading to customer-focused sourcing strategies.

Inventory overview

A central source displays inventories from all systems, acting as a reliable "single source of truth".

Customer satisfaction

All necessary information about the desired product can be displayed to the customer during checkout.

Error reduction

With accurate inventory data, incorrect sourcing is easily avoided, ensuring promised delivery times are met.

More efficient

Allows for automated sourcing with minimal errors, streamlining the inventory management process.

In the next article...

In the upcoming articles in this series, we’ll explore the various functions and applications of SAP OMSA in more detail. We’ll illustrate these functions with examples drawn from our real-life experiences. Also, we’ll take a look at the roadmap and discuss how SAP plans to further expand the tool’s capabilities through ongoing development.

Interested?

Interested in learning more about SAP OMSA? Get in touch with us to find out more.

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