Amid the global impact suffered by the pandemic came the term fulfillment. It is a logistics strategy perceived by entrepreneurs who bet on e-commerce sales.
Source: https://elements.envato.com/pt-br/two-engineers-standing-in-a-shipping-yard-discussi-237Q6WZ
In this practice the merchandise is also released going through all logistics processes, but it demands a good structure that provides cost reduction and greater competitiveness in the face of competition.
The strategic practice involves from the processing of the order to the receipt by the end customer, with more account values and faster delivery times, so that the consumer is loyal through a good shopping experience.
This complete process of logistics tasks and operations in online sales is a fundamental strategy for improving business results.
Continue reading and learn more about how this tactical operation works.
What is Fulfillment?
The term fulfillment, literally translated, means “fulfillment”. In this case, as we have seen, it is a strategy widely used in e-commerce logistics that goes through all stages of the logistics process. That is, it includes from the purchase, conference, separation, review, shipping, until you arrive at the confirmation of receipt by the end customer.
The objective of this operational strategy is to perform all the steps efficiently and effectively to provide the customer with the satisfaction of their experience and that they always want to buy the products of the same company.
Also called Order Fulfillment, this set of processes demands full efficiency in the logistics chain to become a reference to the consumer.
It is of no use for the company to have, for example, its product considered a strong point if in its operations there are recurring failures and bottlenecks. It is therefore necessary that the strategy is on the “radar” of the entrepreneur so that the trajectory of the requests has greater visibility.
Fulfillment in house x outsourced
The fulfillment in house process is more used in smaller e-commerces and thus with lower demand for deliveries. This is because all the steps are performed by the seller himself, as well as automations and integrations in the ERP.
On the other hand, in the event of increased demand for orders placed, it will be less costly and more efficient to hire a third party to serve customers. This option removes the need to provide an internal infrastructure and skilled labor that will certainly generate increased costs.
The outsourced fulfillment model aims to reduce labor expenses and the maintenance of physical structures, because the service will be provided by a partner specialized in the care of goods.
Why is it important to apply it in logistics?
From the product picking step to delivery to the final customer, fulfillment incorporates important activities in logistics, such as:
- Issuance of invoice and reports;
- Product issue control in stock;
- Receipt and preparation of orders;
- Tracking and distribution of loads;
- Customer support and reverse logistics.
The strategy has the main objective of providing the best customer experience, in addition to focusing on the agility of operational processes that make e-commerce logistics dynamic and efficient.
Difference between fulfillment and distribution center
We talked previously about the strategic function of fulfillment as being the operational process that involves all stages of online sales logistics.
In addition, goods that remain in place are stored for the required period, as required by the purchase of the region.
In a distribution center it’s different. It is composed of the physical space where the goods are stored properly packed until the need to transport the product to the final customer arises, in a maximum of 24 hours.
Key fulfillment steps
The proper functioning of the fulfillment process of an e-commerce is not as simple as it sounds. The fact is that the strategy optimizes and integrates the areas of logistics, operations and service very effectively and through the fulfillment of some steps.
It starts with the inventory step, in which the products are separated and organized for their proper storage, until the release to the final destination.
Source: https://elements.envato.com/pt-br/warehouse-worker-checking-stock-with-tablet-pc-W5XRMPL
Once the purchase order is made, then the demand goes to picking with the proper record made in the warehouse withdrawal.
It is then performed the step of packing the product (packing) so as not to damage it. After these mentioned steps, the cargo is moved, choosing the appropriate type of vehicle for transportation.
Finally, it is very important to offer the consumer an after-sales channel, so that communication is facilitated in case of unforeseen event.
Benefits of fulfillment
The fulfillment service structure processes so that efficiency in deliveries is guaranteed, as well as improving customer satisfaction and avoiding problems.
For the negotiations held in digital commerce it is indispensable in carrying out all the very well-done steps, which will certainly bring many advantages for the entrepreneur. Among them, for example:
- Reduction of fixed maintenance, safety and personnel costs;
- Reduction of delivery times that make processes more efficient and faster;
- Improvement in logistics management time to focus on business strategies;
- Commercial growth at a constant scale in sales;
- Decentralized inventory management as a competitive differential;
- Guarantee of availability of the product for delivery (stock out);
- Reduction of the demand quota at all stages of the process;
- Customer satisfaction by reducing errors in the logistics stages.
How do I apply the fulfillment process?
In order for the entrepreneur to be able to apply the fulfillment strategy in an interesting way for his business he needs to put into practice some techniques. The ideal is to start running experiments or tests with the help of experts and always observing these essential tips:
Source: https://elements.envato.com/pt-br/young-woman-worker-in-safety-helmet-and-vest-check-K67VDAX
- Work with technology combined with processes;
- SKU (Stock Keeping Unit) segmentation of products;
- Partnerships with specialized outsourcers.
Manage your freight intelligently with Cheap2Ship
With Cheap2Ship your freight negotiations will be executed in one place and with greater agility in the process, maintaining efficient visualization of all freight suppliers and choosing the best option for your demand.
According to the registration of your freight suppliers, your management will become more organized and this will reduce costs with the transport of cargo, while maintaining a good operational control.
Through Cheap2ship’s digital platform you will be able to access the necessary indicators, charts and reports that will bring more assertiveness and operational speed to your company.
Experience differentiated benefits with the technology offered by the services provided on the Cheap2ship platform and thus stand out in the face of your competition. We offer a hassle-free experience and without that huge list of emails or calls.
With this solution, your company can have 30% in the reduction of the cost in freight, 90% in the gains of operating time and 97% of compliance in the ne
