3 Key Points to Consider When You Choose Order Fulfillment Center

Everything starts small, including e-commerce stores. Although your online store is still in its infancy, you may have to take care of most things yourself, including order fulfillment and shipping.

But, as the store grows and the customer base expands, you may need more help to help your business go to the next level when you realize that you can no longer handle everything on your own.

order-fulfillment-center丨ChinaDivision
order-fulfillment-center丨ChinaDivision

What is order fulfillment service?

Order fulfillment service covers the entire process from sales to delivery to customers. Successful order fulfillment depends on third-party logistics to complete the order fulfillment steps of an e-commerce online store, from receiving, processing, packaging, packing, and shipping products to customers.

A good e-commerce order fulfillment strategy is essential for online companies to maintain competitiveness and build customer loyalty.

And, what is order fulfillment center?

The order fulfillment center provides warehousing (storage) and transportation services so that online companies can conduct business without having their warehouse or storage space.

E-commerce sellers can send their inventory directly to a fulfillment center, and then deliver it to customers from there.

Most order fulfillment centers will be integrated with major online shopping platforms (such as Amazon, Shopify, eBay, etc.) to make it easier for sellers to manage inventory and deliver products.

order-fulfillment丨APS-Fulfillment-Inc丨ChinaDivision
order-fulfillment丨APS-Fulfillment-Inc丨ChinaDivision

Why you need order fulfillment center?

One of the most obvious benefits of using a fulfillment center is that you don’t have to do everything yourself. But the benefits go far beyond that. Outsourcing order fulfillment can have a meaningful impact on the growth of your business.

Reduce rental costs

Many third-party logistics service providers offer flexible pricing. This means that as your business develops, they will be able to adjust costs accordingly to your needs. Renting a warehouse yourself involves many potential costs and considerations.

Professional solution

When you use an order fulfillment center, you not only get warehouse space, but you also have the professional services of a team responsible for operating the fulfillment center.

Each 3PL has a team composed of logistics experts and technical support personnel, who will help you all the way. You can easily implement receipt management, inventory management, order processing, and transportation operations.

Optimize customer experience

Although it is basically free for you to do this work yourself, it may actually cost you a lot of money in the long run. Customers want faster shipping time, so in-house fulfillment may cause you to fail to meet these expectations and bring a bad customer experience.

Suggestions on Controlling Fulfillment Warehouse Loss Rate

What is the utilization rate of the warehouse to prove the strength of an e-commerce order fulfillment center? In a sense, it covers the control of loss rate, the lower the loss rate is, the better the utilization rate will be. Nevertheless, the turnover rate of goods in the e-commerce warehouse is quite high, and there will be losses in the process of turnover and movement. What’s worse, it is difficult to predict where these losses will occur, how many losses will occur, whether they will be registered timely, what causes it, and the most important question is how to effectively control the rate of loss of inventory.

The following aspects will tell you how ChinaDivision carry out this work:

  • List Loss Points

All warehouse staff will participate in the discussion, starting with the process of e-commerce warehouse management, studying which operations are easy to cause the loss of goods, and recording these possible problems timely. Second, we need to count historical data, classify according to the cause of loss, and see how much loss is caused by each loss point. To determine the percentage of each loss that accounts for the overall loss of the e-commerce warehousing.

  • Set the Standard for Los

According to the data, ChinaDivision will calculate the loss value and percentage of the loss point to determine the loss standard and determine how much the loss standard should be kept. Zero loss is always just an idealized number. In reality, there is no such zero loss situation. 3pl fulfilment It is better to work out a more reasonable control target at a time and gradually improve it. Besides, the loss prevention standards mainly  referred to  two aspects, one is the target value, and the other is the loss prevention operation standard, which is used to regulate the staff in the e-commerce cloud storage in order to control within the target loss value operational requirements.

  • Record Data Timely

It is not for the operator to clarify the target value of the loss to be controlled, to receive training to understand how to prevent loss, and the loss will naturally fall below the target. It is necessary to record and account for the loss of the operation. In some places where management is not standardized, there are certain hidden rules, such as underreporting of losses, concealment, or staring at target values. These actions will affect the timely search for the cause of the loss, and then take effective measures to reduce subsequent occurrences. We have formulated the rules for accurate accounting. The loss is classified according to the reason for loss and scrap in the finance. When the reason is more general, the specific loss point is written in the remarks, which is convenient for the next round of combing and reducing the entire warehouse management. There must be a mechanism for inspection, supervision, and assessment, and actions that are not properly accounted for should be dealt with and punished in a timely manner.

Only by sorting out these loss issues, determining specific loss standards, and confirming the data in time, can the loss be controlled within the target range, so both the drop shippers and their customers can benefit a lot.