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Guide to Order Fulfilment
20-11-2022
Order fulfilment is becoming a popular choice for a multitude of sellers wanting to set up retail businesses without the hassle of owning a large warehouse or having stock lying around in a storage facility and no time to pick and pack everything by themselves.
There are three main types of order fulfilment – third-party fulfilment, dropshipping and merchant fulfilment. All are beneficial in their own ways, but at Metoni, we specialise in third-party fulfilment.
In this guide, we’ll explain what order fulfilment is, the benefits, how it works and why it could be the best option for your business.
What is order fulfilment?
Order fulfilment is the process of getting an order from a customer through whichever method you use and then arranging to get the order picked, packed and dispatched to the customer in a timely manner. If you’re a smaller business, with a small inventory of stock, you will arrange the packing and dispatch yourself, using a mail delivery or courier service. However, if you are a bigger business and import regular goods, it might be worth having a fulfilment provider to help with the pick, pack and despatch your stock to get it out to customers quicker and with a delivery partner you can trust.
The benefits of using order fulfilment
There are various reasons why people might feel better using order fulfilment.
· Easier for them to scale the business
· They might ship larger pieces and need the space without the responsibility of having
their own space
· Delivery times may be shorter
· The customer is updated at every stage – ideal if you have multiple orders coming in at
once
· Stock management can be integrated so you will always be aware of low stock and
when you need to get more delivered to the warehouse.
How does it work?
Here’s the process from the cargo being received in the warehouse, to it being sent out for delivery.
Receiving:
Your stock will need to be accepted into the warehouse so it can be put into the right area, logged and scanned accordingly. You should ensure that the warehouse is aware of the stock coming in so they can be ready for it.
Picking:
When someone orders an item, it will be picked up by the warehouse and one of their pickers will be able to see which item has been ordered, as well as where the item is in the warehouse, making it easier and quicker to find. The packing slip provided by the system tells the warehouse of the quantity, item and location of the order.
Shipping:
Most 3PL’s will have certain delivery providers that they work with and will help you get set up with them and the costs might be cheaper if they have plenty of deliveries going out with them. They may also have their own transport so can arrange delivery via their own transport especially if it’s local.
The warehouse will print the shipping label for you and attach it to the parcel to be sent. They will also be able to provide tracking information to your customer on the email confirming the order has been dispatched.
Why 3PL might be your best option
The sellers point of sale system and the warehouse will have a link up that means they will be automatically notified when an order is paid for. It will link up to their warehouse system to let the warehouse staff know exactly where the item is so it can be found and dispatched.
Stock inventory and management are all done via the warehouse system, but the seller can also see any reports so can order more stock when needed and make sure it arrives before there are any problems.
With a larger infrastructure available to them, using a 3PL is better for those with larger items or who want to scale their business quickly. They also have a lot of guidelines to follow and procedures that will help save you time and money in the whole process.
Speak to us at Metoni to see how we can help you with your order fulfilment needs, we have the facilities to help pick, pack and dispatch your orders to customers.
For more information on Guide to Order Fulfilment talk to Metoni Logistics
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