Complete Guide to Improved eCommerce Order Fulfillment: How to decrease costs and increase efficiency
Order fulfillment has evolved into a crucial component of operating a successful company in today’s fast-paced eCommerce sector. ECommerce order fulfillment is the process of accepting, processing, and delivering client orders.
Improving order fulfillment that is quick and inexpensive may keep eCommerce companies ahead of the competition and increase customer satisfaction.
Making order fulfillment operations as efficient as possible has risen to the top of the priority list as firms continue to fight for clients in the eCommerce sector. Businesses must use techniques that simplify their processes, save expenses, and enhance the customer experience to maximize eCommerce order fulfillment.
In this article, we’ll look at some of the best methods for enhancing eCommerce order fulfillment. We will go through everything, including dropshipping, outsourcing order fulfillment, and simplifying order administration and warehouse operations.
On this page:
Streamlining Order Management
Order management efficiency is a vital component of eCommerce order fulfillment. It entails the receipt, processing, and delivery of consumer orders.
By optimizing order management operations, ECommerce organizations may enhance order fulfillment efficiency, save costs, and increase customer happiness.
eCommerce organizations must use the following measures to simplify these processes:
Implementing an Order Management System
An order management system (OMS) is software that assists eCommerce companies in automating their order fulfillment procedures. An OMS can handle everything from inventory management and order processing to shipping and delivery.
It aids in reducing human mistakes, increasing accuracy, and increasing order fulfillment speed. eCommerce organizations may optimize their order management operations, save time, and save costs by deploying an OMS.
Some popular order management systems are:
- ShipStation – ShipStation is a web-based shipping and order management system intended to improve eCommerce order fulfillment efficiency. It interacts with several sales channels and carriers, allowing you to handle orders, shipments, and inventory from a single platform.
- Skubana – Skubana is a cloud-based order management solution that automates eCommerce operations and improves order delivery. It interfaces with a variety of sales channels, warehouses, and shipping providers to provide a complete solution for eCommerce firms.
- Orderhive – Orderhive is an all-in-one order management solution that assists eCommerce firms with order administration, inventory management, shipping, and tracking. It interacts with different sales channels and delivery companies, simplifying order management and fulfillment from a single platform.
Automating Processes
Automating activities such as inventory management, order processing, and delivery may improve order fulfillment efficiency.
Automation aids in the reduction of manual mistakes and the improvement of accuracy, which may lead to increased customer satisfaction.
By automating these operations, ECommerce organizations may save time, expenses, and overall order fulfillment efficiency.
Integrating Multiple Sales Channels
Integrating different sales channels, such as online marketplaces and social media platforms, may assist eCommerce companies in streamlining their order management operations.
Businesses may handle all of their orders from a single platform by linking these channels with their OMS. This may assist in reducing mistakes and increasing efficiency.
Standardizing Systems
System and process standardization may assist eCommerce organizations assure consistency and eliminate mistakes.
Businesses may verify that all team members follow the same processes by developing standard operating procedures (SOPs) for each process. Standardization can help eradicate mistakes, boost efficiency, and speed up order fulfillment.
Optimizing Warehouse Management
The management of warehouses is an integral part of eCommerce order fulfillment. It includes overseeing the inventory, storage, and shipping procedures.
ECommerce organizations may explore the following ways to enhance warehouse management and increase order fulfillment efficiency:
Adopting a Warehouse Management System
A warehouse management system (WMS) is software that assists eCommerce companies in managing their inventory and storage activities.
A warehouse management system (WMS) may assist organizations in tracking inventory levels, monitoring product flow, and improving warehouse organization.
By installing a WMS, ECommerce organizations may eliminate human mistakes, enhance inventory accuracy, and boost order fulfillment time.
Some popular warehouse management systems (WMS) are:
- SAP Warehouse Management: SAP Warehouse Management is a complete solution that assists firms in effectively managing their warehouse operations. It provides real-time inventory monitoring, efficient picking and putaway operations, and sophisticated reporting and analytics.
- Oracle Warehouse Management Cloud: Oracle Warehouse Management Cloud is a cloud-based solution for optimizing warehouse operations. It includes automated inventory tracking, efficient picking, shipping procedures, and real-time insight into warehouse operations.
- Fishbowl: Fishbowl is a popular warehouse management solution for small firms that is inexpensive and scalable. It includes inventory monitoring, order management, and barcoding.
- SkuVault: SkuVault is a cloud-based warehouse management solution for small to medium-sized eCommerce firms. It includes real-time inventory management, order fulfillment, and multi-channel interfaces.
- Zoho Inventory: Zoho Inventory is a cloud-based warehouse management system that includes functions such as inventory management, order management, and shipping tracking. It is a low-cost option for small firms wishing to improve their warehouse management procedures.
Improving Warehouse Layout
Improving warehouse structure may aid eCommerce companies in streamlining their order fulfillment procedures. Businesses may minimize the time it takes to select and pack orders by categorizing items based on demand and optimizing the positioning of high-selling products. This can assist in enhancing order fulfillment time while also lowering expenses.
Here are some aspects to consider when improving your warehouse layout:
- Product Identification: Long or difficult-to-identify SKUs might cause warehouse confusion. A product-savvy entrepreneur or small team may be able to identify complicated SKUs. However, a convoluted naming scheme or irregular SKU may impede warehouse personnel from handling hundreds of SKUs daily.
- Product Location: Smaller merchants with in-house order fulfillment and delivery may be able to avoid finding products by storage location. They handle the product regularly and know where it is, whether it has moved, etc. Location-based pricing might be advantageous if a firm is outsourcing or relocating to a warehouse.
- Product Quantity: Stocking product quantities might be complex. Lean inventory and customer satisfaction should be balanced. Many things might influence your business’s inventory levels. Product amount should be based on inventory turning four times a year. If not already, cartons should have a manufacturer’s date. Thus, unsold items may be detected by storage time.
- Product Selection: Product selection is easy for new sellers. However, SKUs may swiftly develop with a firm. Too many products might tie up money in inventory. Managing your items and SKUs is crucial. Finding the ideal number of goods and SKUs can help save future expenditures.
- Protecting Shipments: To protect goods, fulfillment employees should pack shipments in the smallest package feasible. Two inches of shielding on all sides is typical for delicate things. Training personnel on product packing reduces damages.
- Product Mix: Analyze your product mix, consumer purchase patterns, and marketing campaigns. If you provide a free present with purchase, be sure that the gift won’t increase shipping costs.
Utilizing Pick and Pack Strategies
Pick and pack tactics include choosing items from inventory and packing them for transportation. ECommerce organizations may minimize order fulfillment time and boost accuracy using efficient pick and pack procedures.
Zone selection and batch picking are two strategies that may improve order fulfillment efficiency.
Here are some common pick and pack strategies:
- Batch Picking: Picking numerous orders simultaneously entails gathering everything needed for different orders and arranging them in separate containers. When all of the products have been gathered, they are sorted and packed in accordance with the orders to which they belong.
- Zone Picking: This entails categorizing the warehouse and allocating pickers to certain zones. Each picker chooses things within their allocated zone, which are transported to a central location for packing and shipment.
- Wave Picking: Orders are divided into waves, each including a set of orders chosen and processed simultaneously. This enables more effective use of warehouse resources and may shorten the time necessary to fulfill orders.
- Piece Picking: This entails picking things one at a time for each order and then packing them individually. It may take more time and money, but it is more precise and efficient for lower-volume orders.
Utilizing Dropshipping
Dropshipping is a fulfillment methodology in which eCommerce companies collaborate with suppliers to satisfy client orders.
Under this approach, the supplier is responsible for keeping inventory and sending items directly to customers on behalf of the eCommerce firm.
This is a powerful method for optimizing eCommerce order fulfillment. Here are some of the primary advantages of using dropshipping:
Reducing Costs
Dropshipping may assist eCommerce enterprises in lowering the expenses associated with inventory management and warehouse operations.
Businesses may save money on overhead expenditures like rent, electricity, and personnel compensation since the supplier handles these components of order fulfillment. This may aid in increasing profitability and lowering the total cost of products supplied.
Improving Efficiency
eCommerce firms may shorten the time it takes to fulfill client orders by working with a dropshipping provider.
Because the supplier handles inventory and shipping, companies may concentrate on other areas of their operations, like marketing and customer service. This may aid in increasing overall order fulfillment efficiency.
Increasing Product Offerings
Dropshipping allows eCommerce companies to extend their product offers without handling inventories.
Businesses collaborating with several suppliers may provide their clients with diverse items without investing in extra warehouse space.
Reducing Risk
Dropshipping may assist eCommerce firms in lessening the risk of managing these parts of their operations since it requires less investment in inventory and warehouse operations. This is particularly useful for small enterprises or startups with minimal resources.
Outsourcing Order Fulfillment
Outsourcing order fulfillment is a technique in which eCommerce companies collaborate with third-party logistics (3PL) suppliers to manage order fulfillment activities.
This may be a very efficient method of optimizing eCommerce order delivery. Here are some of the primary advantages of outsourcing order fulfillment:
Reducing Costs
Outsourcing order fulfillment may assist eCommerce firms in lowering the expenses associated with inventory management, warehouse operations, and delivery.
Businesses may save money on overhead expenditures such as rent, electricity, and personnel compensation since 3PL providers manage these parts of order fulfillment. This may aid in increasing profitability and lowering the total cost of products supplied.
Improving Efficiency
ECommerce enterprises may shorten the time it takes to complete client orders by working with a 3PL provider for order fulfillment.
Because the 3PL supplier handles inventory and shipping, firms may concentrate on other parts of their operations, like marketing and customer service. This may aid in increasing overall order fulfillment efficiency.
Increasing Scalability
Outsourcing order fulfillment may assist eCommerce enterprises in more readily scaling their operations.
3PL companies provide the capacity and skills to handle high quantities of orders that businesses may find challenging to manage on their own. This might assist firms in increasing their consumer base and income.
Improving Customer Satisfaction
ECommerce enterprises may increase customer satisfaction by outsourcing order fulfillment. Order fulfillment activities may be handled effectively by 3PL providers, resulting in shorter shipment times and fewer mistakes. This may assist firms in improving their reputation and increasing consumer loyalty.
Implementing a Quality Control System
Putting a quality control system in place is a critical technique for improving eCommerce order fulfillment.
A quality control system is a collection of procedures and processes verifying that goods and services satisfy certain requirements.
A quality control system in eCommerce order fulfillment entails developing methods to guarantee that orders are correct, complete, and match consumer expectations.
A typical eCommerce order fulfillment quality control system can contain the following steps:
- Inspection of incoming goods: Incoming shipments are inspected to ensure that the items received match the order, are in good condition, and meet quality standards.
- Order picking: Orders are picked from inventory and verified against the customer’s order to ensure accuracy and completeness.
- Packaging: Orders are packaged securely to prevent damage during shipping.
- Quality assurance checks: Orders are inspected to ensure they meet quality standards, including accuracy, completeness, and product quality.
- Shipping: Orders are shipped to customers using appropriate shipping methods and carriers.
eCommerce organizations may decrease mistakes and returns, boost customer happiness, and improve overall efficiency using a quality control system. A quality control system’s particular methods and processes will vary based on the nature of the company and the goods or services delivered.
Here are some of the primary advantages of adopting a quality control system:
Improving Accuracy
A quality control system may assist eCommerce organizations in ensuring that orders are completed correctly.
Businesses may limit the number of mistakes in their order fulfillment process by employing processes such as double-checking orders and confirming product quantities. This may result in higher customer satisfaction and lower expenses for returns and exchanges.
Increasing Efficiency
A quality control system may also assist eCommerce enterprises enhance the efficiency of their order fulfillment.
Businesses may shorten the time it takes to fulfill client requests by employing batch picking and optimal routing techniques. This may assist to enhance overall efficiency and save labor and shipping expenses.
Reducing Costs
A quality control system may assist eCommerce firms to decrease expenses connected with returns and exchanges, labor, and shipping by enhancing accuracy and efficiency.
This may aid in increasing profitability and lowering the total cost of products supplied.
Enhancing Customer Satisfaction
eCommerce organizations may increase client satisfaction by employing a quality control system.
Customers are more inclined to return to firms that continuously execute orders properly and efficiently. This has the potential to boost client loyalty and income.
Conclusion
With the continued growth of eCommerce, competition in the industry is becoming increasingly fierce.
Businesses must stay ahead of the curve by implementing strategies that improve their eCommerce order fulfillment processes.
By implementing these strategies, eCommerce businesses can improve accuracy, increase efficiency, reduce costs, and enhance customer satisfaction.
These benefits can increase revenue and profitability, ultimately contributing to the business’s success.
Optimizing eCommerce order fulfillment is a continuous process that requires careful planning, implementation, and monitoring. By implementing the strategies outlined in this article, eCommerce businesses can improve their overall success and competitiveness in the industry.
