What to Look for When Selecting Your Order Fulfillment Service Provider
When it comes to small business inventory software, there are some important terms that you should become familiar with. Some of them may be unfamiliar to you, but there are others that will make life easier and help you run a more efficient and profitable business. Let's take a moment to learn about some terms you need to become familiar with. Then you can begin to understand how an order fulfillment company can help you increase your profitability.
In the most simple sense, order fulfillment is the entire process from initial inquiry to delivery of products to the final consumer. There are three key elements involved here, and they include inventory control, sales management and order picking. In this article we'll cover inventory control. In this section we'll look at how an efficient order fulfillment process can help your business.
If you're an ecommerce retailer then one of your primary tasks will be ensuring accurate inventory management. You may choose to outsource this function to a third party. On the other hand, if you possess the equipment and knowledge you can perform the inventory management yourself. In either situation, you have to be very sure that your inventory is current and that you're not missing any shipments. With ecommerce, this task can be extremely challenging since you have no way of keeping tabs on the stock levels yourself. Fortunately, there are companies that specialize in providing warehousing and inventory management for ecommerce retailers.
Logistics is another important factor involved in warehousing and picking. The process of securing the appropriate warehouse space, equipment, and manpower is essential if you want to maximize the efficiency of your production process. Proper logistics ensures that your goods arrive in good condition when you ship them to your customers.
An ecommerce retailer needs to be very careful about the returns process. If your fulfillment software doesn't allow for returns, then you'll have to spend a lot of money having your goods scrutinized and tested before you start selling again. Having a good returns process is crucial if you want to retain your customers and keep them coming back to buy from you.
Many ecommerce businesses require that goods be shipped by freight. There are many types of fulfillment options available, but some of the most popular include nationwide ground shipping, air freight, and shipping by a trucking company. Freight requires a lot of upfront capital and up front fees from the retailer. If you decide on a trucking-based fulfillment process, then you need to be sure that your company has adequate trucking contracts in place or you could suffer penalties if your shipment is lost or damaged during delivery.
It's critical for an ecommerce business to have accurate and up-to-date lead time. Lead time is the amount of time it takes to identify an order from a customer's email and then place the order with the supplier. Most fulfillment companies offer lead time as an option for its customers. Some may require lead time as a part of signing up with the company, so be sure to read through the fine print of any contract you're considering signing. Many will work to accommodate your lead time needs as long as they're allowed.
Be sure to look over your order fulfillment software's returns policy, too. Look especially for a facility that offers you the ability to electronically enter your returns into the system. You should also inquire about any special policies the fulfillment software holds for returns of certain products. In addition to these general considerations, you should examine the specific details of your shipping options, the lead time for your product and return policies, as well as the warehouse and logistics of your order fulfillment process.