Best fulfillment logic: What to keep in mind

Order Management

Order fulfillment has quickly become both an art and a science, with merchants deploying both a number of creative practices and some cutting-edge technology to improve the way they fulfill customer purchases. In years past, a bit of ingenuity could go a long way in helping to get customers their purchases as quickly and effectively as a possible, with retailers looking at elements such as box selection and optimization as a means of speeding up the fulfillment process.

New solutions, such as order management, inventory management and warehouse management systems, have bolstered fulfillment even further. Retailers can utilize eCommerce software to gain greater transparency over their networks of distribution centers and use this information to always fulfill the order from the appropriate location. This enhanced order fulfillment ability enables sellers to fully optimize their inventory usage while simultaneously getting product to customers more quickly.

Without these rule sets, inefficiency may still rear its ugly head. Here are a few quick things to keep in mind to ensure your fulfillment logic is on point:

1. Keep the customer in mind

Retailers exist to serve their customers, and if the quality of service is not up to par, shoppers can easily find another merchant that is willing to treat them better. This extends to order fulfillment – merchants may want to consider the location of their customers and proximity to various distribution centers when deciding upon where to fill the purchase from. By choosing a warehouse or brick-and-mortar store close to customers, sellers can cut precious time from the delivery process.

2. But also remember the bottom line

If an item is in high demand and would sell for full price at one physical location, retailers may want to think twice about using that stock for fulfillment purposes.

While sellers do want to keep the customer in mind, they also need to consider their own bottom line. If an item is in high demand and would sell for full price at one physical location, retailers may want to think twice about using that stock for fulfillment purposes. Instead, look to fulfill the item from locations where the item just went on sale or a sale is imminent.

Another thing to consider is how much it costs to ship items. Sometimes the optimal fulfillment location will cost more in terms of picking, packing and shipping, so merchants must bear this in mind as they write their logic.

3. Look at inventory

Inventory levels bear a pivotal role in fulfilling orders from the appropriate location. Sellers can use technology to help them move slow-selling products from one location or may want to opt to avoid fulfilling an order from a specific location so they don’t force out of stocks. If time of delivery or cost is of little concern, sellers will want to keep inventory levels in mind.

What To Look For In An Omni Channel Order Management System - Download White Paper

While many retailers are moving toward fulfilling orders from multiple locations, it is crucial they develop a logic that allows them to do so effectively. This will help them save money in the long haul, use their stock more effectively and promote better service for customers.

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