When it comes to keeping customers happy, several aspects of supply chain logistics can make a huge difference. Having adequate inventories of goods and efficient warehousing management services is important. Likewise, having an engaging and easy-to-navigate e-commerce site can make a difference as well. But one of the most important areas of one’s business is overall orders management. More specifically, processing and fulfilling customers’ order in a timely and accurate way is essential in today’s business environment. Therefore, it’s worth ensuring your company is optimizing these areas in an effort to attract (and keep) valued consumers.
As supported by statistics, Fratogo recognizes that such efforts are worth time and energy. According to recent surveys, roughly 43% of customers say they avoid retailers after a bad order delivery experience. Likewise, 58% say they will go with a different company for a product based on better order fulfillment options. By making sure your order fulfillment processes are effective, you can minimize negative customer experiences and win them over. This requires taking a detailed look at your overall order management process and ensuring it best fits your business’s needs. With this in mind, the following article explores order fulfillment in greater detail in order to help you in these endeavors.
Breaking Down the Order Fulfillment Process
In order to optimize your order fulfillment approach, it’s important to appreciate all that it encompasses. Order fulfillment begins when a customer places an order, and it usually ends when that item is successfully delivered. Of course, there are many steps in between that can make or break your overall success. At the same time, there are different approaches to order fulfillment with different companies choosing varied options. For example, some companies outsource order fulfillment services to 3PL service providers like Fratogo. Others choose to handle everything in-house with their own staffing and software. And still others go with drop-shipping, where third-party suppliers process and ship orders to customers on demand. Any of these options might be effective in the right situation.
There are many things that companies must consider when evaluating each step of the order fulfillment process. In terms of order placement, they must decide whether orders occur through single channels or multiple ones. Many use omnichannel order processing that involves not only in-store orders but also those from e-commerce and mobile sites. Likewise, receipt of customer orders drives order picking, packing, and shipping activities. Companies may decide to also manage this themselves. Or they may outsource this to fulfillment centers and 3PL service providers like Fratogo. Finally, choices must be made regarding shipping, item tracking and delivery, and customer follow-up. These components, as well as the processing of return orders, comprise the entire order fulfillment process.
Overcoming Challenges and Excelling in Order Fulfillment
Developing a streamlined and quality order fulfillment processing system can be difficult. In addition to choosing the right approach, additional areas can pose problems. For example, inefficient warehousing management can undermine order fulfillment by causing unnecessary delays. Likewise, errors in demand forecasting and supply chain missteps can also sabotage a business’s best efforts. For this reason, many companies outsource order fulfillment to 3PL companies like Fratogo. With greater expertise in shipping, warehousing, inventory management, and item tracking, these barriers can be avoided. And with extensive experience in order fulfillment processes, the potential for a negative customer experience is markedly diminished.
The best solutions for order fulfillment will naturally depend on your specific business, order volumes, and distributions, but some common features tend to characterize companies with proven order fulfillment performance. Key features that all companies should pursue include consistency, reliability, flexibility, and automation. By meeting customer expectations and offering tailored options to meet their needs, businesses will gain loyalty and return orders. This is where Fratogo has helped a number of companies thrive and enjoy a competitive advantage. Understanding this, attention to how well your order fulfillment systems work should be a one of the main points of focus for your business.