3 Reasons to Use an Order Fulfillment CompanyPosted by Hvass Dreyer on July 14th, 2021 Order fulfillment is in the broadest sense, the full procedure from initial point of sale inquiry to actual delivery of a purchased item to the ultimate consumer. In this way it encompasses all the steps from receiving the order, placing an order with a supplier, collecting payments and shipping the item to the ultimate consumer. It may sound like a very long and laborious process, but it is actually very straight forward when you break it down. The more complex processes such as order placement and order processing may be handled by a third party company. When shopping for a fulfillment company, it is important to consider every step. Some companies have in-house experts in every step of the process while others outsourced the entire process. In-house staff can be expensive and often less than adequate at handling some of the more intricate aspects of an order fulfillment process. Outsourced staff, on the other hand, can offer expert service at a fraction of the cost. This can result in better customer service, more time available for work, and the ability to complete projects faster. Order fulfillment services should be considered for every online seller. Not only is it important to choose one that has experience and is reliable, but also one that can fit within your budget. Order fulfillment can become quite a costly endeavor if done incorrectly or if it is outsourced. Many third-party providers offer affordable solutions and can help your online business meet its goal of great customer service and online profitability. One of the first and most important steps in the order fulfillment process is inventory. This will include both merchandise in stock and supplies that are ordered from the supplier. This will also cover storage and warehouse space requirements for stock that has been accumulated and not yet sold. Packing and shipping charges will be calculated according to the order amount, so it is important to keep track of every shipment, both incoming and outgoing. Some companies provide their clients with a packing and shipping service. In this case, the company would be responsible for collecting the merchandise and loading it into a warehouse, as well as providing manpower for packing and preparing the item for shipping. Many third-party order fulfillment companies provide a comprehensive inventory control system that will allow the client to check on the status of each item at any point during the process. They may also have special systems for tracking seasonal items and determine whether they need to hold excess inventory until the next season. Third-party merchant fulfillment service providers usually have warehouses that are specially designed for storing and packing large orders. This provides the opportunity for the company to save money by not having to rent additional space and to manage staffing levels properly. An in-house warehouse allows for the expansion of operations and the hiring of additional staff members for packaging, wrapping, and delivery positions. When using a third-party order fulfillment strategy, the company should ensure that the services it provides meet all of its customer demand. The services should also include methods for tracking customer orders and ensuring that the supplies it purchased are in good condition. Some companies work with dropshippers, allowing them to handle the warehousing and inventory responsibilities for its clients. While dropshipping is an excellent way to handle a large order volume, it can also lead to a loss if the dropshipper does not provide quality merchandise or if the inventory becomes out of stock before the order fulfillment deadline. A third-party ecommerce order fulfillment company may also provide a valuable service to an internet-based retailer. A warehouse management system can help the retailer track its inventory every step of the way. This includes receiving, making, packing, and delivery of products to its customers. A warehouse management system can make sure that there is enough supply to keep the website afloat. It can also alert the owner quickly when there is an increase in orders or when something stops working properly, such as a broken computer.Like it? Share it! More by this author |