The order fulfillment process incorporates all the stages between receiving a new order of customers to the delivery of that product to the doorstep of the customer. In this process, various stages are included, such as warehousing, picking up products, packaging of products, and shipping. In the order fulfillment process, it is also included to send the details of product shipment through emails.
There are various steps included in the order fulfillment process, and these steps are described below:
Receiving Inventory:
There are two ways to handle the inventory in the warehouse. The first method includes in-house management of inventory, and the second way is to hire third-party warehousing service providers such as MDS fulfillment.
It is easy to handle a few orders with the in-house inventory system. But, when your business starts growing tremendously, then it becomes very difficult to efficiently manage in-house inventory. The company is responsible for an in-house inventory management system.
Storing Inventory:
Once you have decided whether you want to have in-house inventory or outsource, the next step is storing. It is one of the vital tasks in the order management system. It is important to properly place your products over the shelves. You should keep a close eye on storing your products. The proper storage system will help you to easily determine what comes in and what goes out.
Order Processing:
If you have chosen the third party for your order fulfillment process, then you do not need to go through this stage. You need to simply pass on the request to a third party. On the other hand, the companies who are handling their in-house fulfillment center have to manage this stage. In this stage, the ordered product will be picked off from the shelf, packed and safely shipped to the destination.
Order Shipping:
In this stage, the best shipping route is determined. This decision is based on various factors such as the size of the product, weight, and other requirements of the product. Mostly, this stage is handled by the third-party logistic service provider. They are experienced in this process, and they can safely deliver the products to the destination without any delay.
Return Handling Process
Order return ability is one of the major factors of the rising popularity of online orders. So, if you want to make your eCommerce business successful, then it is important to handle returns or replacement orders.
If you want to make the return process efficient, then you have to make crystal clear policies. The return handling process can make the entire system difficult. Therefore, it is recommended to make this system automatic to reduce chaos.
Order Fulfillment Process:
The order fulfillment process plays a vital role in the field of eCommerce. It is impossible to run an eCommerce business without a proper order fulfillment technique. The order fulfillment process is comprised of the following stages:
- Receiving an online order
- Registering the order request in the inventory system
- Sending order confirmation to the customer
- Picking, packing and dispatching product from the warehouse
- Sending notification to customers related to the product shipment
- Successful delivery of the order
- Handling order return (if necessary)
- Update inventory
Models of Order Fulfillment:
There are different ways of order fulfillment, and you can choose any one of them. Read the following models of order fulfillment in detail:
Dropshipping
This order fulfillment technique is simple and easy to implement. In the Dropshipping technique, you have to simply place an order to the supplier. The suppliers will note down the important information such as the name of customers, the address of the customer, etc. Finally, suppliers will ship the orders to the destination.
In-House Fulfillment
In this model of order fulfillment, then you have to complete all stages of order fulfillment by yourself. Warehousing to delivery of the product, everything will be handled by ECommerce Company. This model of order fulfillment is a little difficult. But, by investing in the latest technology gadgets, you can make your order in-house order fulfillment process quite easier.
Third-Party Fulfillment
In this model of order fulfillment, the eCommerce company hires a third-party order fulfillment service provider. This is the right model for those who do not have the required resources. Outsourcing order fulfillment has enormous benefits.
One of the biggest benefits is that the eCommerce company owner can focus on core business without any worry. It is recommended to hire an experienced and renowned order fulfillment service provider. It will help you to improve your business and take it to another level of success.
