Articles



Order Fulfillment

9/4/2013 by Edward Baker


Order fulfillment, making the right choice

 

Order fulfillment can be simply defined as the process of receiving an order, packaging it and delivering the order to the end user to complete a buying transaction. Delivering a variety of products to numerous customers is a complicated task that requires strict attention to detail. As businesses continue to grow they must also increase their capacity to fulfill their orders. Expanding order fulfillment requires facilities, personnel, and capital expenditures for facilities and equipment.

Order fulfillment can be accomplished in two ways:

  1. In-house – The Company must hire and train new personnel, allocate additional resources to support increased fulfillment activities, such as computers and software, and provide additional management of the fulfillment process. Managers will find themselves spending more time with fulfillment and less time managing their primary operational activities.
  2. Out-source – Many companies out-source order fulfillment to businesses that specialize in the fulfillment process. Fulfillment firms provide their own personnel, facilities, equipment, management, computers, and software. Additionally, order fulfillment firms can perform the required tasks in a much more timely and cost efficient fashion resulting in reduced order cycle, lower cost, lower allocation of physical resources and more time for management of primary business activities.


Full service order fulfillment companies provide a wide range of logistics services for their customers including:

  • Receiving products and incoming quality control inspections
  • Warehousing the products
  • Provide inventory management, in many cases providing online access to inventory and inventory reporting
  • Receive orders directly from customers
  • Kitting and assembly operations
  • Full case and full pallet shipping
  • Pick and Pack service
  • Custom labeling
  • Transportation to the end user or other storage facilities

Selecting an Order Fulfillment Company
Selecting the right Order fulfillment company can result in substantial savings in time, money, capital expenditures and management headaches. Additionally, the right company will allow your firm to spend more time managing its primary operation processes; production, marketing, etc. There are a number of steps that can be taken to ensure that the right order fulfillment firm is selected for your company and its specific needs.

  1. Get a complete list of services provided and the fees for each service.
  2. Make certain the services provided meet your company’s specific needs.
  3. Try to get a referral from another company
  4. Get references; often times references may be found online.
  5. Always choose a firm that will also provide warehousing, if needed.
  6. Choose a firm that can provide kitting, assembly and pick and pack services
  7. Select a firm that will allow online reporting and access to your inventory
  8. Make sure the firm can provide custom labeling
  9. Choose a firm that is capable of expanding to meet your companies growing fulfillment needs.

The benefits of out-sourcing order fulfillment are numerous and will often provide substantial time, cost and resources allocation and capital expenditure savings. Selecting the right order fulfillment company will result in a mutually beneficial and profitable business partnership between your firm and your selected order fulfillment company.

For quality public and contract warehousing

 Prime Logistics, Inc. is located in Northern Kentucky near the city of Cincinnati Ohio, which is within 5600 miles of 65% of the US purchasing power.
Services include contract warehousing, public warehousing, pick n pack, distribution and consolidation, order fulfillment and parcel distribution. Specialty warehousing is provided for paper products, auto parts, retail, electronics and consumer products.

 Prime Logistics, Inc.

(859) 282-8114


Discussion


Add Your Comment

* Required Field