What is order fulfillment?
What is order fulfillment in supply chain management? It is the process of receiving goods, then processing and delivering orders to customers. The process starts with a customer placing an order and ends once they receive it. However, if the buyer wants to return a product, order fulfillment manages the return transaction as well.
How Does It Work?
The order fulfillment process takes place in one or more distribution centers and typically involves inventory management, supply chain management, order processing, quality control, and support for customers that need to report problems or make product exchanges or returns.
1. Receiving Inventory 2. Inventory Storage 3. Order Processing 4. Picking 5. Packing 6. Shipping 7. Delivery 8. Returns Processing
Order Fulfillment Strategies
In-house Order Fulfillment
Third-party Order Fulfillment
Dropshipping
Hybrid Fulfillment Solution
Why Is Order Fulfillment Important?
Companies make money by selling goods, products, and services to businesses or direct to consumers. No matter whether you’re B2B or D2C, the sale is not complete until the sold items are received by that customer. Order fulfillment is how companies complete the sale and it’s at the heart of every business.
The Elements of an Order Fulfiilment Operation
Every online seller needs a solid understanding of the order fulfillment process, even if you outsource this task completely. Knowing how it all works is essential in keeping costs low—whether you ship daily from your own warehouse or turn it all over to a fulfillment partner.
A place to receive and stock products
Space to prepare and pack orders
Shipping supplies for packing orders
Packing slips or commercial invoices
A way to create and print shipping labels
Bottom Line
Accurate and timely order fulfillment is the lifeblood of a successful ecommerce operation. To stay ahead of your competition, you must understand the entire order fulfillment process, embrace efficient habits, and manage costs end-to-end.
There are many ways to get orders into the hands of your customers, and often, a mix of fulfillment solutions is the best choice for a growing business. So, as you grow, look for flexible, as-needed fulfillment options that let you expand capacity while controlling costs.
If your fulfillment service isn’t currently living up to your expectations, contact FR-Logistics today to see how our services compare. We make it easy to begin the process of moving to a fulfillment center that’s ready to grow with you!
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