Order Processing
Order processing definition
It is an important part in the process of logistics. The definition of order fulfillment is collecting the appropriate products and preparing an order for shipment. All administrative actions required from receiving the order to preparing it for shipment. Examples include booking the order, order picking in the warehouse, packing a product, arranging transportation and creating invoices.
At fulfillment centers, as many processes in logistics as possible are set up efficiently with the right systems. In this way, order processing goes as quickly as possible and with as few errors as possible.
The process of selling products online is error-prone. Purchases from a supplier go wrong, a system error in the web shop, the wrong sticker on a package or a package deliverer where something goes wrong. To minimize mistakes and always be on the ball, you can optimize the order processing process. By providing good systems here as much as possible, you avoid mistakes in another part of the process.
Outsourcing fulfillment
Webshops are often small in the beginning, then they often send all the packages themselves. When the shop grows and the number of orders increases, the order processing process becomes increasingly complex. Often it is decided to outsource this process so that the shop owner has more time for other processes. These include purchasing, marketing and updating articles.
More and more online sellers are choosing to outsource order fulfillment. Many fulfillment companies help you by taking all the worries out of your hands. They do this by means of an introductory meeting, in order to provide tailor-made advice. Take a look at what our partner Fulfilment.nl can do for you.
Advantages
- You keep much more time for other things like choosing the right suppliers, optimizing the assortment, updating your webshop.
- Takes work off your hands, own attic or garage is not full of goods
- Fulfilment companies use automated order processing which means error rates are a lot lower
Cons
- Slightly less margin because the fulfillment company often negotiates a price per package. In contrast, an order fulfillment company can buy cheaper because they buy "big" as a company. So consult first before making your choice.
- Start-up webshops don't have the margins yet. Often they are still stuck with stocks because they cannot properly estimate how many transactions are taking place.
Source: Fulfilment.co.uk
