Order Fulfilment Strategies: Boost Efficiency & Sales

Key Takeaways:

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• Each and every product-based company should take order fulfilment as a vital business function.
• The order fulfilment process includes inventory management, supply chain management, order processing, quality control and customer support.
• An effective order fulfilment operation necessitates collaboration with multiple departments and external partners.
• Streamlined e-commerce operations, including the order fulfilment process, improve customer satisfaction and help you boost sales. 
• The best and simplest way to mitigate order fulfilment issues and streamline operations is to outsource this process to a third-party service.  

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Every e-commerce decision-maker knows that each sale is worth its weight in gold. Customer loyalty and customer retention are the main building blocks of many a strong online retail brand, and the most secure way to reach this status is to streamline operations like order fulfilment. 

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A sale isn’t done the moment your online shopper has clicked on that Buy button. The sale is complete only when the buyer receives the package and is satisfied with what they bought. 

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And this is where the order fulfilment process comes into play. 

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What is Order Fulfilment?

Order fulfilment is the final step that completes the sales process. It involves all the tasks required for your customer to get their hands on the product they bought. It includes inventory management, supply chain management, order processing, quality control, and customer service to guarantee products are delivered in flawless condition.

Depending on the size of your e-commerce business, some aspects of the order fulfilment process can be completed under one roof in a well-organized warehouse. However, both large and small online retailers should consider automated fulfilment and a multi-layered distribution centre strategy in order to deliver the customer's purchase as fast, reliably, efficiently and economically as possible.

Why is Order Fulfilment Important?

Efficient order fulfilment enables improved sales and boosts customer satisfaction and customer loyalty, which is critical for brand success. Subpar and less efficient order fulfilment process, on the other hand, will almost certainly lead to low customer retention and damage your brand reputation. 

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For example, bad packaging may result in a client getting a damaged item. An improperly labelled box may wind up lost or reach the wrong buyer. And when the items do not arrive the proper way or in a timely manner, the chances are these shoppers won’t order from you again. 

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In other words, bad order fulfilment reduces sales, leads to negative reviews, and harms your overall reputation.

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Fixing all the inefficiencies related to the order fulfilment process will help you minimise delays, improve the customer experience, and make your brand stand out within the vast pool of competitors. 

How Does Customer Order Fulfilment Process Work?

The order fulfilment process typically happens in one or more distribution centres and ideally involves streamlined operations, including inventory and supply chain management, order processing, quality control, and customer service for reporting and solving order issues. 

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The following are key phases of the order fulfilment process:

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• Receiving Inventory
• Inventory Storage
• Order Processing
• Order Picking
• Order Packing
• Versand
• Lieferung
• Returns Processing

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Please refer to our order fulfilment process article for more information about these stages. 

Typical Challenges of the Order Fulfilment Process

There are numerous potential issues associated with order fulfilment, and these tend to range from supply shortages and inventory management issues to failures in demand, logistics planning, and supply chain concerns.

Inventory Management

Among the main causes of consumer unhappiness is running out of stock. It leads to bad customer experience, damages your brand reputation and results in subpar ROI. And one of the most difficult tasks for a company is repairing the damaged rep once it has occurred. 

Demand Planning

However, there’s also the other side of this coin. Keeping too many items in stock leads to inefficient storage and transportation costs. Another risk associated with poor demand planning is the decrease in demand for particular products before you can sell them. This is why it is key to accurately estimate demand levels and plan your sales-demand strategy well, for only then will you be able to keep appropriate items in stock without over- or under-stocking on specific items.

Logistics Planning

Bad logistics have a huge impact on customer retention and brand reputation, future sales and overall profit. This involves slow or missed deliveries, broken merchandise, and damaged packaging. Ensure that you monitor end-to-end performance from warehouse to mailbox, as it is of vital importance to carefully manage all the points of the logistics process so that shipping does not go wrong and items are not destroyed. 

Supply Chain Execution

Developing a solid supply chain strategy requires weighing cost vs benefit tradeoffs. For example, a corporation may choose a single supplier for a specific product in order to benefit from price discounts due to increased purchasing volume. This is also a great way to gain priority status with the seller, which is extremely convenient for acquiring goods on schedule during peak demand seasons. However, employing a singular supplier approach might backfire if anything goes wrong for that vendor, including employee strikes, natural disasters, and supply shortages.

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Supply chain execution (SCE) refers to the flow of tasks in the supply chain, with each task in the chain being managed in an automated manner, including: 

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• Material management
• Product tracking (both physical status and transportation)
• Tracking data shares and data feeds
• Financial information management (transactions involving all parties, etc.)

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SCE often requires the usage of several programs, including order management, inventory management, warehouse management, transportation management, and logistics software.

How to Improve Your Order Fulfilment in 7 Steps

Companies that manage their order fulfilment processes should plan ahead of time for a smooth, automated order procedure. Hiring fully-featured order fulfilment services allows e-commerce companies to track orders, inventory, and shipments, automating every phase of the process. 

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Here are the main steps necessary to do just that:

Opt for the Right Order Fulfilment Service 

The first step is to choose a system that offers end-to-end solutions for tracking orders, inventory, and other elements of your e-commerce operations. Customised solutions like Bezos.ai offer full order fulfilment automation and streamlined operations so any logistics- or RMA-related headaches are mitigated, and your company can focus on boosting sales and ROI. 

Supplier and Vendor Integration 

Powerful ERP systems and order fulfilment service providers enable direct integration with your suppliers and vendors. For example, the entire restocking and accounts payable process can be linked together and executed with minimal human participation. Set your policies, connect with your merchants and providers, and your systems will take it from there.

Increase Customer Loyalty by Setting Clear Expectations

It’s never a good idea to underpromise and over-deliver. Though there will always be those customers who lack reasoning and common sense, most will be willing to buy from you according to your realistic timetable. Be sure to set clear expectations for order shipments and then work hard to meet them. If delays happen, always be open and transparent about the situation and make sure you discuss the details as soon as possible. This will mitigate consumer disappointment and bootstrap customer retention.

Inventory Management Optimisation 

As mentioned previously, if your inventory is scarce, you risk running out of goods and falling short on a customer order; and if your inventory is over-stocked, your storage and logistics-based costs aren’t optimised. 

Fine-Tune Your Order Picking Strategy

When an order arrives, chances are you don't have a fleet of autonomous warehouse robots to pick and pack it. Using your human resources properly is critical to lowering costs and increasing efficiency. Common order-picking tactics include:

• Discrete order picking: picks orders one at a time
• Zone and batch order picking: picks many orders at once
• Other strategies that aim to reduce trip time and speed up the order-picking process

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Your Shipping Agency Should Be Treated as an Essential Partner

Postal services and shipping organisations play critical roles in your order fulfilment process. Do not treat your shipping partner as any other vendor. Devote your time and effort to negotiating the best price that suits both sides, optimise delivery schedules for your fulfilment requirements, and engage with your shipper to avoid delays.

Integrate High-Quality Customer Service and Returns

Human errors, malfunctions, and delays happen every once in a while, no matter how hard you try to minimise them and always provide a great experience for each and every shopper. Whether the problem originates from your, your customer's, or a vendor's side, you should always be capable of finding the right solution.

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9 Essential Questions for Choosing the Right Order Fulfilment Method

There are numerous aspects that factor in when deciding on which vendor to choose. It is always a good idea to consider the products you’re offering, where your target customer is located, and don’t forget the sales channels you want to use.

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Here are some useful questions to ask yourself when choosing the right vendor (mind you, these can vary depending on the size of your e-commerce business, your ambitions, and your scalable operations): 

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• What are the shipping and delivery times available?
• What are the specifications for labelling and packaging?
• Do they provide automated replenishment or allow you to monitor inventory levels?
• Do they use a notification system?
• Can they accept returns and provide customer service?
• Do they provide distributed warehousing?
• Can they provide worldwide shipping for global sales?
• Do they offer subscription fulfilment?
• Can they bundle the products?

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Streamline Order Fulfilment to Boost Sales With Bezos 

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Outsourcing order fulfilment to a third-party company such as Bezos saves time and money by streamlining operations, including: 

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• Storage
• Selection 
• Verpackung 
• Lieferung

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Our end-to-end solutions and order fulfilment services offer consumers complete transparency and control over their orders through an easy-to-use dashboard. We will handle every step of your client's journey to create a flawless experience from beginning to end.

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We level the playing field for small and medium-sized enterprises, which was previously only available to larger corporations. Our order fulfilment services provide unmatched scalability and pricing, allowing you to grow quicker than ever before.

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With Bezos, you won’t have to deal with stockouts or delayed delivery ever again. Here's how we can boost your fill rate and improve supply chain efficiency:

Seamless Inventory Management

We provide access to industry-leading inventory management software that offers real-time data and precise demand forecasting. This means you’ll always have the right amount of stock, reducing the danger of stockouts and overstocking. It’s necessary to precisely estimate demand, as only then will you be able to easily maintain appropriate inventory levels.

Efficient Fulfilment Processes

Bezos accurately manages all aspects of your order fulfilment process. Our innovative technology ensures that your purchases are processed promptly and precisely, minimising room for errors and increasing client satisfaction. With our customised solutions, you’ll meet your customer's unique shipping requirements, assuring timely and cost-effective delivery.

Reliable Supplier Coordination

Managing supplier relationships is no easy task. However, Bezos offers proactive supplier management, with our solutions assisting in monitoring and evaluating supplier performance, ensuring timely deliveries and minimising supply chain disruptions. 

Detailed Analytics and Reporting

We offer detailed analytics and reporting, resulting in useful and actionable insights into your inventory and fulfilment performance. These insights allow you to uncover trends and inefficiencies and make data-driven decisions.

Scalable and Flexible Solutions

Our customer-centric approach and flexible service packages are ideal for both growing startups and existing businesses that seek scalable operations. With no long-term contracts or minimum volume limitations, you can easily respond to shifting demands and expand your business.

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At Bezos, we believe in forming great collaborations. Our dedicated account managers collaborate with you to understand your specific difficulties and develop personalised tactics. 

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Ready to improve and automate your order fulfilment process? Get a free quote today!

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FAQs

What Does It Mean When My Order Says Fulfilment?

If your order is "in fulfilment," it has most likely been processed and is now being packaged for shipment. Once fulfilment is complete, an order is delivered to the customer, and the process is finished.

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What Is the Difference Between Supply Chain and Order Fulfilment?

The phrase "supply chain" refers to the interconnected network of vendors, organisations, and resources that source, manufacture, and transport commodities from the point of origin to the point of consumption. Order fulfilment is just one part of a larger supply chain that involves several fulfilment stages, including inventory management, warehouse and storage.

What Is Order Fulfilment Process in Sap?

The development of the sales order is the first step in the order fulfilment process that involves supply chain event management. After creating the sales order, you can send an event message to the customer (for example, by e-mail) with instructions on how to monitor the process's status over the Internet.

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What Is Difference Between Order Management and Order Fulfilment?

Order fulfilment services include everything from the time a customer puts an order to the select, pack, and ship procedure and the delivery of things to the consumer. Order fulfilment focuses on managing client orders, whereas order management oversees the full inventory lifecycle.

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