The most common errors in fulfillment strategy usually involve selecting the wrong product, poor inventory, management and inadequate warehouse capacity, among others.
What is a fulfillment strategy?
The fulfillment strategy includes everything from receiving goods to processing them as well as delivering customer orders. The process begins with a customer placing an order and concludes upon their receipt of the ordered product. This process also encompasses managing merchandise returns, if required. Fulfillment typically consists of five main steps:
- Receiving inventory shipments
- Inventory Storage
- Order Processing
- Shipping
- Return processing
The most common errors in fulfillment strategy
The most common errors are often related to the number of orders a company handles. Errors like labeling mistakes or delays in delivery, are largely influenced by the tight deadlines customers expect companies to meet.
These mistakes can quickly escalate into larger issues, harming the business’s reputation. That’s why it’s important to recognize errors and implement strategies to mitigate them.
Picking incorrect or damaged orders
As a company’s order volume increases, it becomes easier to make mistakes when choosing the right products for each customer. This is one of the most common errors in business and often results in more returns or loss of customers.
These errors can occur due to human oversight, incorrect labeling, or inaccurate product descriptions.
To tackle these challenges, it’s wise to consider hiring a company that provides e-commerce fulfillment services. They usually cover receiving, picking, packing, labeling, and processing returns for example.
Poor Inventory Management
When inventory isn’t managed properly, products can get lost, causing delays and shipment problems.Technological advancements help improve the experience by providing sensors and similar aids for storage.
A good system that supports the analysis of collected data on inventory shortages or excess is highly useful in these cases. Ideally, products should be easy to locate, with clarity on stock levels and prices for each item.
Inadequate warehousing capacity
Having enough storage space is important in order to avoid customer deliveries being affected. Merchandise organization within the warehouse and effective management practices are also key factors.
If you experience challenges in this regard, it’s worth considering hiring a company that provides warehousing services incorporating features like cross-docking, pick-and-pack, and Kanban systems.
Having real-time visibility of inventory levels and placed orders is another very important aspect. Enhancing these aspects will improve delivery efficiency and strengthen the relationship between the company and its customers.
Lack of automation
In small or newly established businesses, manual order management is sufficient in the beginning. However, as delivery volumes grow, automation becomes essential.
With large order volumes, human errors are more likely to happen. To prevent it, it’s recommended to hire a company capable of automating processes using technologies tailored to your needs.
Failure to account for customer returns
Many companies overlook the importance of customer returns, which can impact future sales and lead to a loss of customers. To avoid issues, always be transparent about return policies and strive to keep customer’s satisfaction.
Once you’ve clearly established these policies, you might consider hiring a company to handle, among other things, order returns. This allows you to focus on other business activities and improving the company’s image.
Errors in fulfillment strategy are more common than one might think or want to admit. Companies should analyze and identify them in their operations to take beneficial actions.
Many of these errors involve issues with labeling or organizing merchandise, which are related to internal logistics, the type of technology used, and storage space.
All of this can be significantly improved by outsourcing to companies specializing in logistics management and merchandise transportation. They should also offer order return services, another very common issue.
At EP Logistics, you will find the perfect ally to enhance your product’s fulfillment. So, if you’re looking to avoid these and other errors you’ve experienced, feel free to contact us to learn more about our services.
