Order fulfilment involves the whole process from the stage of order enquiry to the point of delivery of the order to the customer. There are many order fulfillment companies which are coming up with innovative strategies and techniques. The first research idea of order fulfilment techniques was published by Hans Wortmann which was later continued by Hal Mather, in his theory of the P:D ration, where P refers to the production lead-time and D refers to the demand lead-time. Based on the P and D ratio, a company can adopt several strategies of order fulfilment-:
- Engineer-to-order- In this the product is constructed as per the customer specifications. It is one of the most common way adopted for huge construction projects and one-off products like Formula 1 cars.
- Build-to-order- In this the product is built on a standard design, but the manufacture and component making of the final product is linked to the order placed by the customer as per their expectations. It is used for aircraft and high-end motor vehicles.
- Assemble-to-order- Here the product is designed as per the customer’s expectations from the existing designs of the components. This gives the product a modular architecture that allows the final product to be configured in this way. For instance, Dell’s approach of customizing their computers.
- Make-to-stock- The product is made as per the sales forecast and sold to the customer from the stock of goods. It is common in grocery and retail stores.
- Digital copy- Here the products are in the form of digital assets and an inventory is made with the help of a single digital master. Copies are made when on demand, downloaded and stored on the storage devices. For example, research papers.
Benefits of order fulfilment companies
- Low shipping charges- most of the fulfilment providers have sources all over the country. Therefore, the shipping rate provided by them is less. This means it gives the opportunity of bulk delivery. But it depends on the fulfilment provider you choose, on which you can save from 15% to 35%. They have software which allows them to know about the shipping rates of various carriers and select the most effective one.
- Reduced operating cost- Fulfilment services generally charge a small amount for the products that are warehoused. After which, you are charged only for picking, packing and shipping orders. You may experience a seasonal increase or decrease but the basic charge remains the same.
- Increase your reach of customers- Most of the fulfilment companies provide services to deliver product all over the world. Whether your order is from a different state or country, a right fulfilment provider will solve your problem.
- Better customer service- a reliable customer service is very important for a business to grow. many fulfilment companies provide service for 24*7 hours. They provide services such as easy refund, exchanges and easy returns.
Tip
You have learned about the benefits of order fulfilment companies. This is a great way for your business to grow.
Have you ever heard of online order fulfillment?
Do you know how to apply it in your business or do you know its importance for companies operating in the digital environment?Understanding what fulfillment is become extremely important so that all operations of an online business are carried out in the most optimized and efficient way.Fulfillment incorporates several activities, such as issuing invoices and reports, controlling and storing the flow of products from stock, product tracking, and delivery.And these are just a few assignments of this operation!
Continue reading.Fulfilment means set of operations and activities necessary to fulfil a customer's order.
Fulfillment aims to guarantee exceptional order fulfillment and develop the best possible experience for customers.
Therefore, every logistical process in sheds or warehouses, for example, needs to be properly optimized.How does fulfillment work?Remember that the goal of online order fulfilment is to ensure maximum customer satisfaction, right?For this to happen you need integration with all areas, since a good consumer experience in the online store purchase process is not only guaranteed by the logistics sector.Thus, all departments need to work in search of solutions that aim to improve the quality of the Ecommerce service.
That is, the logistics must provide a guarantee that the delivery is made within the stipulated time and that the product arrives at the customers' homes in perfect condition.The service sector, for example, has an extremely valuable role in following up on orders, including with regard to after-sales.
