Order fulfillment is based on the order, not the customer. So, you must be clear about what each order requires before beginning to pack it. If an item goes out incomplete or missing parts, you have failed to properly “fulfill” that particular order. That means costly returns and unhappy customers. Learning how to do order fulfillment right can become a major factor in your overall success. 3PL companies like Go Freight Hub knows this, hence offer you the best service.
Inventory management is key to order fulfillment success.
Inventory management requires that you have a way of knowing what you have on hand versus what has been sold, as well as how much inventory should be kept in reserve to protect against stock-outs. In short, there should always be more sold than exist otherwise, you risk not meeting customer demand.
The first step toward effective inventory management is setting up a system for tracking sales, inventory, and shipments. You can use a simple paper or electronic spreadsheet or purchase a business software program designed specifically for the purpose of managing inventory. If you choose to go the spread sheet route initially, it will help if someone with basic computer skills can assist you in setting up a system that makes sense and is easy to use. Plainly speaking, the easier it is for you to use your inventory management systems, the more likely you will be to use them on a consistent basis.
The best way to avoid out-of-stock merchandise is to set aside part of your floor space or storage room just for holding items that are waiting to be shipped. This reserved area should always contain enough stock so that all orders can be sent within 24 hours of receiving them even if unexpected demand arises. It’s also important not to let inventory sit unopened too long before processing it into sales items. If left sitting around gathering dust, there’s a chance someone else will buy what you were planning on selling.
How to Save Money on Shipping Costs?
You can cut down on what your customers pay for shipping by making sure that you charge enough to not only cover the cost of packaging and postage, but also a reasonable profit margin. You don’t want to price yourself out of business, after all; if your customer chooses another seller because yours is too expensive, you’ll end up losing money in the long run. Aside from fixed costs like labor involved in packing and weighing orders, there are other factors which will determine how much it will cost to ship any particular item:
Size and weight: The larger an item is or the heavier it is, the more expensive it will be to ship. But keep in that waiving this fee may encourage sales, especially for heavy items that people are “on the fence” about.
Fragility: If an item is fragile, costly extra materials will be required to ship it. For instance, an item packed loosely in a box with other items could put the entire shipment at risk of damage. And if your customer receives damaged goods, you can forget receiving positive feedback or any feedback at all. Boxes are more expensive than bags, so try packing breakable items in bags first and then putting them in boxes before shipping.
Packaging methods: There’s no question that different types of packaging cost different amounts to use. Bubble wrap is substantially more expensive than newspaper or Styrofoam peanuts, though not as expensive as something like void-fill (peanuts or air bags).
Size of the order: The more items you put into an order, the less expensive each individual item becomes to ship. Of course, you must be careful not to make your shipping costs too low in comparison with your competitors if you don’t want to lose money.
Packaging materials: If you’re using your own boxes and bags instead of buying them in bulk from a company like Uline, this can increase your cost significantly. You could cut down on packaging expenses by buying or renting a mail sorter from Uline which allows you to store pre-packaged orders at high speeds. *
Inventory management is key to order fulfillment success?
Order fulfillment including inventory management doesn’t have to be confusing or stressful. If you implement a solid inventory management system, you’ll find that it’s actually quite easy to stay on top of what you need, where it is and how much of it there is. On the other hand, if you neglect your inventories, they’re liable to take on lives of their own amassing in piles all over your store or warehouse. And when that happens, managing inventory can quickly become overwhelming.
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