Order Fulfillment Process Best Practices

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Order Fulfillment 300x300 Order Fulfillment Process Best PracticesThere are different steps in order fulfillment process, which involves not only order placing but also returns and exchanges. The next section deals with the different challenges that are encountered in fulfillment and some possible solutions.

Order Place
The following are the steps in order placing. Keep in mind that this is about eCommerce sites and not traditional order fulfillment processes.

  • Order is placed on eCommerce site.
  • Payment for the order is cleared.
  • Warehouse receives the order.
  • Packing slips get printed
  • Pickers pick the product.
  • Arrange shipments.
  • Packages are shipped to customers.

In the above steps the picker can only pick if the product is available in the warehouse.  This brings in the process of inventory management as a precursor for successfully completing the steps off the order place scenario. Arranging the shipments and shipping the products also brings the logistics of shipping and business processes like agreements with the shippers, and insurance against lost product into warehouse management. Some of the organizations have a separate department that deals with loss prevention.

Returns Processing

The fulfillment process also has to take care of returns. This process is initiated by the customer when the customer returns the product they received.  The following are the steps involved in processing returns:

  • Returned package is received in the warehouse.
  • The product is returned to its location in the warehouse.
  • Initiate payment return process.
  • Log the reason for return.

It is imperative that we log the reasons for the return of any product.  You will see in the later sections as to why this plays an important role.  The reason for returns could be because of “Damaged Package”, “Item Defective”, “Poor Service”, “Poor Quality”, “Not as Expected”, “Undeliverable”, “Wrong Item Sent”.
Exchange Processing
The exchange process is basically a combination of returns process and order place.  The item that was returned goes through the regular returns process and the exchanged item is placed as a new order.  It is a business decision as to how the payment will be handled.  The most commonly seen method is to use the refunded amount and charge the customer for the difference.

E-Commerce Fulfillment As Easy As 1-2-3

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Order Fulfillment 300x300 E Commerce Fulfillment As Easy As 1 2 3Eye-popping storefront? Check. Marketing campaigns to send valuable traffic to your website? Check. A site layout that’s optimized to convert visitors into buyers? Check.

You’re all set to start taking orders and make some hard-earned money with your new e-commerce website. But you might have overlooked one important aspect of managing an online shopping business: fulfillment. Ensuring that your first-time customers become regulars will require excellent customer service and delivering the correct merchandise on-time to the correct address. At the same time, it’s important to plan for the future. How will you fulfill orders when they are coming through at ten-fold the volume you expect to see at first? Read more

Overcoming the Challenges in Fulfillment

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Order Fulfillment 300x300 Overcoming the Challenges in Fulfillment In an ecommerce site, there are usually two pieces that need to work in tandem in order to have a successful ecommerce site.  One part of the site is customer facing and is responsible for collecting the order.  The second part of the site processes this order and forwards the order to a warehouse.  The latter part is sometimes called order management system.  In the realm of an ecommerce site, the OMS (order management system) is sometimes referred to as the fulfillment system. Here are some tips to overcome the challenges in the fulfillment system: Read more

Amazon Opens Order-fulfillment Center in China

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amazon logo small1 Amazon Opens Order fulfillment Center in ChinaEcommerce Giant Amazon, on Thursday announced that they would be opening their latest order-fulfillment center in Kunshan, China.
Amazon.com Inc, the world’s largest ecommerce company by market share, onThursday announced the opening of its latest order-fulfillment center in Kunshan, Jiangsuprovince. Read more