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Order Fulfillment – An Ecommerce backbone!

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Have you ever wondered what happens when a customer buys a product on an e-commerce platform and magically it arrives on your doorstep? Does an e-commerce site rubs a lamp or wave a wand with magical enchantment and the desired products get to travel to its original customer in an instant. Hmm exciting as it may be, but it’s not!

First of all, all the process are done by mere hardworking human who believes in customer satisfaction, so let’s shout out all the workers who make your product come to your doorstep at the estimated time.

Second of all, it’s not the lamp or wand, it’s a work of Order Fulfillment center which make this happen. No magic, only hard work.

Third of all, it’s not one process but various operations which are connected to one another and get things done in an efficient manner.

So without further ado, let’s jump into this mystery and reveal it to you.

What is Order Fulfillment? What is Ecommerce Order Fulfillment? What is Order fulfillment in the supply chain?

You may come across these questions a lot when browsing the website. Is there any difference or do they mean the same thing?

Fulfillment involves all the steps taken to fulfill the gap between receiving an order on any online platform and handing over the order to the customer. Many processes take place when completing the task and we have broken them into 3 parts for better understanding. 

Receiving Level

It all starts with order receiving from the manufacturing unit or company to the desired warehouse. Afterward, they are inspected to make sure none of the items are damaged. They are further moved to verification of manifest in order to examine whether the contents are accurately matched. The next process would be to sort the products, barcode each item, and register the details of product into business inventory system. Now they are monitored by a professional team until there’s an order for that particular product on an e-commerce site.

Processing Level  

Now’s the fun part! The order gets placed on any e-commerce site and the details are received on the business-owned software Order Management system. This software can also determine the appropriate locations to ship from, based on the delivery address and item availability. After understanding the order details, we create a pick-list of all the placed orders and a series of different processes starts initiating. The order picking part is highly essential because it directly affects the productivity of overall order processing workflow. If we accurately pick the order speedily, we can then rapidly complete the packing & shipping part.

There are many order picking methods to choose from:

1. Single or Discrete Picking: It is a method where each order is manually picked individually.

2. Zone Picking: It is a method where orders are sorted based on the zone and are picked accordingly.

3. Batch Picking: It is a method where several orders are picked in batches simultaneously.

4. Cluster Picking: This method involves picking multiple orders at the same time.

5  Wave Picking: It is a variation of batch and zone picking that is particularly useful for a large warehouse. 

Shipping Level 

When orders are packed, it is moved to the shipping part. They are sent via various transportation channels. Flying carpet is not one of them!

Shippers and carriers—be they freight lines or airlines, FedEx, DHL, or other carriers—determine freight billable costs by whichever is greater. I.e. actual package weight or its dimensional weight. The crucial stage of the order fulfillment process and the entirety of this whole procedure is depend on this last act. The order should receive by the customer in a proper package within the given timeframe and avoid any delay as much as possible.

Types of Order Fulfillment?

There are four main types of Order Fulfillment: 

  1. In-House fulfillment: This type of fulfillment is owned by the business employer where customer orders is processed, picked, packed, and shipped under one roof. In-House fulfillment is ideal for companies that want to have control over the entire operation.
  2. Third-party fulfillment: As the name explains itself, it is a type of fulfillment where a business employer outsources the order fulfillment to a fulfillment company. The companies that don’t have enough storage space or personnel may select third-party fulfillment.
  3. Dropshipping: It is similar to third-party fulfillment. however, there’s no inventory to begin with. In this fulfillment method, the online sellers or retailers offer the products to customers from their website. When it is bought by a customer, the request for an order is immediately routed to the manufacturer, distributor, or wholesaler to be packed and shipped.
  4. Hybrid: This model uses a different combination of fulfillment options. For example, some companies may choose in-house fulfillment and others may select drop shipping. Hybrid fulfillment offers eCommerce businesses in both direct-to-consumer and B2B eCommerce more freedom and flexibility. 

Advantages of Order Fulfillment Center:  

  1. Expand the Reach: It is expected that buyers across global will increase exponentially in the future. Therefore it is good to go with the order fulfillment with international networks. This way, you can take orders globally and not worry about the fulfillment of orders.
  2. Increase your scalability: Many eCommerce startups manage their own order fulfillment center for a while. However as the business grows and gains more traffic in terms of audience, most startups are unable to fulfill the orders rapidly resulting in customer disappointment.
  3. Improve your focus: If we are taking the example of startups, we are familiar with the fact that many startups manage multiple processes at the same time. If we outsource the order fulfillment operation to an expert, a startup may focus on one thing….. Growing business!
  4. Provide customized packaging: The Order fulfillment center knows the INS & OUTS of the packaging process. They know which package material is fitted for a particular product. It will enhance the customer experience since they do not have to waste time unwrapping unnecessary packaging material for a mere small product. 
  5. Reduce your operating cost: When you are managing your own warehouses, you will come across costs that burdened your overall expenses. If we outsource the order fulfillment, you will be eliminating these expenses.

Conclusion

Now you know the work of Order Fulfillment employees who does all the work and get the magic done. They work day & night to pull off the operation and bring a smile to a customer. In the end, that’s what we need! Right

the majority of e-commerce businesses rose during the pandemic and sellers all over India started selling products on e-commerce platforms. Where it leaves PrimoLCS, you guess right! The logistics process.

We take care of logistics troubles by securing order processing operations. We manage inbound transportation, storage, barcoding, quality examination, invoicing, packaging, and handing over the products to shipping couriers. We have secured warehouses pan India and perform order fulfillment on a large scale.

With having 11 years spent in the logistics sector, we accumulated standardized solutions to your eCommerce order fulfillment issues. We believe in the smart solution because when it comes to your product, you only need the best services.