What Is The Process Order Fulfillment, And How Does It Work?

With a growing business, a fulfillment strategy can help you scale. But for new business owners, it seems like an additional expense. Understand more about how order fulfillment works, its benefits, and how you can maximize its potential. 

Definition of Order Fulfillment

Order Fulfillment process is completing a customer’s order. It starts when an order comes in and finishes when it reaches the customer’s hand. To be honest, it is a critical task. If you miss one step, you’ll lose the possibility of gaining loyal buyers. In addition, it is the best assistance for spreading brand awareness. 

Businesses revolve around inventory and supply chain management. Also, there is order processing, quality control, and customer help and support. It is mind-blowing if you manage all these. Although, it is naturally confusing, and errors are inescapable. But if you hire a fulfillment provider, it will take a huge responsibility off your shoulders. 

The Order Fulfillment process is a cycle of completing 4 basic tasks. 

Receiving

It refers to the warehouse acceptance, storage, and documentation of the incoming inventory. In addition, fulfillment keeps every good organized and timely. 

Picking

Warehouse picking involves a new customer order. First, a picking team receives a packing slip. Then, it prepares the products per quantity by checking the storage locations throughout the facility. 

Packing

Once the order is complete, a packing team will secure all the goods. Then, they will choose packing materials based on the protection the product needs. Also, it measures the dimensional weight.

Shipping

With a securely packed up order, you are ready to ship. However, the order fulfillment process is only complete once your customer receives its ordered items. 

Order fulfillment might be a complex procedure and expensive. But if you partner with the most suitable for your business, it is undoubtedly worth it. 

Different Order Fulfillment Processing

Fulfillment providers offer various services. You have to choose which one is relevant to your eCommerce business. Check out these different types of order fulfillment processing. 

In-House Order Fulfillment

The management of the order fulfillment process happens internally. Employees handle all the procedures, including storing and shipping. 

Outsourced Order Fulfillment

It involves a third party for order fulfillment to complete. Shipping, storing, order, and refund processing are the responsibility of a 3PL.

Dropshipping

The manufacturer of goods produces and ships its products itself. Therefore, it is perfect for retailers since there’s no need for inventory management. 

Hybrid Fulfillment

From the name itself, it is a combination of the above order fulfillment process. For example, you can choose an in-house fulfillment during the regular season. But when peak season arrives, you opt to outsource fulfillment service. 

Choosing the best order fulfillment process depends on the items you sell. Also, you have to consider the storage and season. 

Importance of Order Fulfillment in the Business

Getting a fulfillment company is a refined strategy that entails the following benefits. 

Reduced costs

If you have an external fulfillment provider, picking, packing, and shipping orders go under the same umbrella as your expenses. It means you can lower your operational and shipping costs. 

Increased scalability

A fulfillment service company provides a streamlined process. It comes with automation and technology that helps you save time, money, and energy. So you can attend to more pressing matters in your business growth. 

Better customer service

Dealing with customers solely by yourself is draining. Fortunately, a reliable fulfillment company comes with the best strategy for handling customers. As a result, you gain positive feedback for your business without adding costs. 

It’s no surprise why growing eCommerce businesses seek trusted order fulfillment companies. The advantages can really outweigh all the expenses you think will drag you. 

Best Advice in Improving your Order Fulfillment

Order fulfillment is a collaborative effort. It’s not your sole responsibility to fulfill every customer’s order. Also, your staff is not the only one accountable for possible losses. Here are easy tips on strengthening order fulfillment while maximizing profits. 

Enhance inventory management

Storing inventory is a crucial factor. Holding too little inventory has a risk of running out of stock. Meanwhile, carrying too much inventory calls for extra costs. You have to pay for storage costs and jeopardize your working capital. But if you study your market and understand the season, you can provide a realistic amount of inventory needed.  

Verify ordered products before shipping

Sending out incorrect items to your buyers is disappointing and tiring. You have to ship your product back and send a different one for replacement. It eats up your time and finances. But if you have strategic picking and packing, it is manageable. You can double-check the orders after being picked and packed. Most importantly, you can verify the securely packed goods before shipping. 

Build relationships with carriers

Shipping companies are essential to your eCommerce business. They have control of the delivery schedule. That’s why it is vital to improve your business relationship with them. Treat them more like a business partner instead of just a carrier. This way, you’ll gain trust on both sides. Plus, you can have better negotiations when it comes to deals, promos, and schedules. 

Apply automation

Human error is inevitable. Sadly, it pulls down any part of the order fulfillment process. Fortunately, you can manage it if you integrate eCommerce automation. For example, a fulfillment provider like Red Stag automatically receives and completes an order without you touching it. It is a fulfillment company with software that reroutes orders directly to the buyer’s nearest fulfillment center. 

Maintain customer transparency

Customer service, returns, and transparency can be complex.  Yet, it is part of the order fulfillment process is the customer’s feedback. You did your best to avoid delays, mistakes, and defects. However, there are unavoidable external variables. If you offer transparency to your buyers, you can gain their trust and loyalty. 

Look for reliable fulfillment options

There are various order fulfillment service companies out there. It’s up to you to choose a provider that you can trust. Also, you need to see the location, products handled, and previous client reviews. Red Stag Fulfillment Center is a company that holds true to its passion and purpose. It is a trustworthy fulfillment service that picks, packs, ships, stores, and manages return operations. In addition, it designs a custom solution to cater to any business. If you seek guaranteed excellence in competency, Red Stag is an excellent choice. 

In any business, the order fulfillment process is the topmost priority. You may keep it in-house or outsource. What matters is that it meets your and the customer’s expectations.