The Benefits of Utilizing an Order Fulfillment Center

by | Nov 11, 2014 | Transportation

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An order fulfillment center is a business specializing in storing merchandise and filling orders for shipment. Fulfillment centers gained popularity with the surge of small e-commerce businesses. When a business grows, business owners are sometimes overwhelmed with orders and having the capacity to store merchandise. An order fulfillment center is the solution to the problem.

Faster Growth. Fulfilling orders is the portion of the ordering process that takes up the most time. Partnering with an order fulfillment center stimulates business growth by allowing faster completion of orders. The business owner can focus on product development or buying new inventory. The fulfillment center has a process in place ensuring faster processing of orders, which increases the number of complete orders.

Better Profitability. An order fulfillment center lowers operating and shipping costs, which increases profits. Most fulfillment companies charge for storage space and the completed orders. The cost of shipping orders is usually included in the price of service. This fee schedule puts more money in the pocket of the business, affecting the bottom line. There is also an added benefit of reducing headaches that go along with pulling orders and packaging them for shipment.

Customer Satisfaction. Leaving order fulfillment to the professionals will increase customer satisfaction. Once the customer places an order and makes a payment, the result is to receive the order as fast as possible. An order fulfillment center has expertise in process automation. Process automation usually equates to orders shipping the same day of receivable. Customers are more likely to always do business with companies that offer faster shipping.

Greater Efficiency. An order fulfillment center monitors inventory ensuring when an order is placed, it is already available in the warehouse for shipping. This checkpoint guarantees efficiency because there is a reduction in the turnaround time for orders. Removing the lag time keeps the business running smoothly.

Peace of Mind. The holidays are a troublesome time for online businesses. The number of order increase drastically and the turnaround time is usually shorter due to the holiday deadline. An order fulfillment center offers peace of mind that all orders will ship in time for Christmas. If an order is delivered late there is a high chance of losing customers. With a solid order fulfillment strategy in place, last minute orders are not a threat to the business.

The benefits discussed are depictions of how hiring an order fulfillment center will improve business operations. A seamless system is needed for inventory management, especially when the business is growing. Order fulfillment works as an extension of the hiring firm by working with the current website. No changes are necessary to the current operations to get started.