Order fulfillment is a critical process in the eCommerce and retail landscape and encompasses all the steps involved in delivering products to customers – from receiving an order to getting it into the buyer’s hands.
As businesses strive to meet rising consumer expectations for fast, accurate deliveries, effective order fulfillment strategies have become essential for success. We’re going over everything to know about what is order fulfillment as well as examine top order fulfillment strategies to help your business streamline operations, reduce costs, and boost customer satisfaction.
Streamline your order fulfillment by partnering with Print Bind Ship today!
How Does the Order Fulfillment Process Work?
The order fulfillment process typically works by receiving customer orders, picking the ordered items from inventory, packing them securely, and shipping them to the customer, often with various steps for inventory management, quality control, and order tracking along the way.
Step 1: Receiving the Customer Order
The order fulfillment company will first receive notice of the customer’s order. Nowadays, most customer order fulfillment companies integrate with a merchant’s eCommerce storefront to allow for automatic notification.
Once the order is received, it needs to be processed and verified. This involves checking the customer’s information, product availability, and payment method.
Step 2: Picking and Packing the Items
Picking and packing involves locating the ordered items in the warehouse and packaging them securely. Efficient inventory management plays a vital role in this step to ensure that the products are readily available and can be quickly retrieved. Once the items are packed, the order is prepared for shipping, and the shipping label is attached.
Print Bind Ship, for example, will locate the item and custom print packaging or labels accordingly. We also pack items together in subscription boxes as well as create custom packaging boxes for shipping.
Step 3: Shipping
Packed orders are weighed and labeled with shipping information, including the customer’s address and any necessary customs documentation for international orders. The packages are then sorted according to shipping carrier, such as USPS or FedEx.
Many fulfillment centers, including Print Bind Ship, have integrated systems that automatically select the most cost-effective shipping method based on package dimensions, weight, destination, and delivery speed requirements.
Step 4: Handling Returns (If Necessary)
When customers return items, the fulfillment center receives and processes these returns. This involves inspecting returned items for damage or use, determining whether they can be restocked, and updating inventory records accordingly.
If items are in resalable condition, they’re returned to inventory. Otherwise, they may be sent for refurbishment, liquidation, or disposal. The system also initiates refunds or exchanges as per the company’s return policy.
5 Key Order Fulfillment Strategies
As you can imagine, a lot can go wrong in the order fulfillment process. Even having an incorrect label could hinder the time it takes to get to your customer. This is why many business owners and entrepreneurs work with an outsourced fulfillment partner to handle their order fulfillment needs.
Let’s take a look at some of the key strategies for order fulfillment:
1. In-House Fulfillment
This strategy involves managing the entire fulfillment process internally. Companies handle their own warehousing, picking, packing, and shipping. It offers maximum control over the process and can be cost-effective for businesses with steady, predictable order volumes. However, it requires significant investment in infrastructure and personnel.
2. Third-Party Logistics (3PL)
With this approach, businesses outsource their fulfillment operations to specialized providers. 3PLs, like Print Bind Ship, handle warehousing, inventory management, and order processing.
Outsourcing to a 3PL is an excellent order fulfillment strategy for companies looking to scale quickly without large capital investments. It also provides flexibility and expertise, allowing you to focus on the most important, core aspects of your business.
3. Dropshipping
With this customer order fulfillment strategy, retailers don’t keep products in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. This minimizes inventory costs and risk but can lead to longer shipping times.
4. Hybrid Fulfillment
This strategy combines multiple fulfillment methods. For instance, a company might handle some orders in-house while using 3PL for others, or employ different strategies for various product lines. This approach offers flexibility and can be tailored to specific business needs and customer segments.
5. Distributed Inventory
This order fulfillment strategy involves storing products across multiple locations to be closer to customers. It can significantly reduce shipping times and costs, especially for businesses with a wide geographic customer base.
However, it requires sophisticated inventory management systems to maintain efficiency across multiple locations. As a result, it’s most often employed by larger retail giants, such as Walmart or Amazon.
6 Benefits of Outsourcing Order Fulfillment
Working with an outsourced order fulfillment service provider comes with many benefits. Aside from cost savings, outsourcing order fulfillment frees up your team’s hands to accomplish other tasks for the business.
1. Time-Saving
Letting professionals accomplish your fulfillment needs is going to remove the long nights for printing package labels from your schedule. Fulfillment centers incur the time and costs associated with processing, packaging, and shipping products. They ship packages at scale, which discounts their overall shipping costs and subsequently yours.
2. Cost-Effective
Maybe your business sells a larger product or demands shipping internationally. You must consider the storage, packaging, and shipping costs that these processes demand. Fulfillment centers have the space, equipment, and expertise needed to get orders to your customers.
Print Bind Ship (PBS) offers discounts to customers who need bundled services. These can include product packaging design and in-house printing, “free product just pay shipping” campaigns, and much more.
3. Managed Inventory
Depending on the size of your product, storing inventory in a warehouse might not be a choice. Regardless of the product, it can be advantageous to store your inventory where it’s processed to expedite shipping time to customers.
PBS offers free storage in its onsite facility when fulfilling your orders.
4. Client Satisfaction with Faster Shipping
Your customers will appreciate the prompt shipping times and sturdy packaging offered by an order fulfillment company. Knowing they can order any time day or night, have multiple shipping speeds, and that their package will arrive damage-free will provide a sense of trust and legitimacy to any eCommerce business.
One of the best parts of working with Print Bind Ship is knowing your customer. Unlike major third-party seller platforms, you don’t lose the opportunity to see who is purchasing your product. With Print Bind Shio’s order fulfillment, you gain the ability to see your customer’s contact details and can reach out for future business.
Want to wow your customer with a custom-printed box? We can do that too! Check out some of our latest designs.
5. Dedicated Staff
Order fulfillment often requires setting up entire warehouse logistics and operating an efficient warehouse management system. Not only does setting up all these factors take time, but you’ll also need trained staff that can manage the day-to-day.
With Print Bind Ship, you never have to worry about hiring warehouse or shipping staff. Our dedicated team handles your inventory with expert hands and ensures each package gets to your customers.
6. Industry Knowledge
We’ve been in business for 60+ years, and offer expert advice on how to handle your fulfillment needs in the fastest and most cost-effective way. Our decades of experience allow us to tailor solutions to your specific business requirements, ensuring optimal efficiency and customer satisfaction.
What’s Next: Order Fulfillment With Print Bind Ship
If you’re ready to take the next step in growing your business through your order fulfillment, we’re here to help! Let us know how we can take your business to the next level and get your product wherever in the world you need it. Learn how you can save time and money when you trust order fulfillment professionals, leaving you to focus on your core business.
Get in touch for a free quote for customer order fulfillment!
FAQ
Order fulfillment refers to the process of receiving, processing, and delivering customer orders. It involves tasks such as inventory management, picking and packing products, and arranging shipping or delivery.
Successful order fulfillment relies on efficient inventory management, accurate order processing, reliable shipping methods, and effective communication with customers. It’s crucial to have streamlined processes in place to ensure timely and accurate deliveries.
Yes, many businesses choose to outsource their order fulfillment operations to third-party logistics (3PL) providers. These companies specialize in managing warehouse operations, order processing, and shipping.
Outsourcing can save time, reduce costs, and allow businesses to focus on their core competencies. However, it’s important to choose a reputable and trustworthy 3PL provider for a seamless order fulfillment experience.
Fulfillment in business refers to the process of receiving, processing, and delivering orders to customers. It encompasses all steps from the moment a customer places an order to when they receive it, including inventory management, picking, packing, shipping, and handling returns. Effective fulfillment is crucial for customer satisfaction, operational efficiency, and overall business success in today’s competitive marketplace.
An efficient order fulfillment process is crucial for customer satisfaction, reducing operational costs, managing inventory effectively, and maintaining a competitive edge in the eCommerce landscape.