Order Fulfillment

Order fulfillment

Order fulfillment

A clear definition of “order fulfillment” is necessary in order to accurately understand the services and benefits that are offered by a company like Ship My Orders.  “Order fulfillment” is the process of receiving the information about a customer order either through a website or through another process, and taking the steps that are required in order to get that order to be received by the customer.  This process is also known as “order processing” or “fulfillment processing.”  The reason it is important to create a clear understanding of this process is so that the benefits of outsourcing can be understood.  “Order fulfillment companies” are unique businesses that do not buy or sell any products on their own, and instead concentrate specifically on the service of getting the order to the customer once the information has been received.  In order for this to be an effective process, the inventory that is able to be purchased by a consumer must be warehoused in a location operated by the order fulfillment company, where they can process the order and get it packed into the appropriate boxes or shipping materials that will provide safe transport to the destination.  They then arrange transport utilizing the means specified in the order itself.

The benefits to businesses of utilizing an order fulfillment service over simply warehousing the inventory themselves and using their own employees to process orders is simple.  The benefits are based on scalability and responsibility, along with proximity.  As far as scalability being a benefit, the business has the ability to secure larger or smaller warehouse spaces and employee bases without being locked into a long-term lease which confines the ability to grow or shrink based upon demand.  By removing this speculation, the business can pay for only the services that they need in any one period, as opposed to attempting to predict needs, sign long term leases and hire employee bases that are not proven to be necessary.  Instead of footing this responsibility, the business owner can rest assured that their orders will reach their customers on time, all the time.  As far as proximity as a benefit, a business pays shipping costs depending on the distance that the order must travel in order to reach the customer.  This means shipping rates are cheaper on every order where the warehouse is close to the customer.  By utilizing an east coast and west coast order fulfillment center like the ones offered by Ship My Orders, the customer order is always as close to the customer as possible.  This provides shipping charges savings on each and every order, adding to the profitability of the business.

When a business makes the decision to utilize an order fulfillment service, they are taking into their own hands the ability to function in a purely virtual environment, not bearing the responsibilities or expenses of maintaining physical spaces or employee bases.  There is no need to train warehouse workers, worry over government regulation of employees, or maintain benefits.  Businesses are able to concentrate on selling their products, which is the way it should be.