As competition in the e-commerce landscape heats up, an efficient and effective order fulfillment process has never been more crucial.

Picture this: 38% of online shoppers will abandon an order if it takes more than a week to arrive at their doorstep — as per Ready Cloud.

In addition, 69% of online shoppers won’t do business again with a retailer if their order isn’t fulfilled within 2 days from the promised date.

And did I mention that 63% of online shoppers will avoid hitting the “Confirm Order” button if they feel the shipping fee is excessive?

So, what’s the gist behind all these revelations?

It’s simple: A meticulously optimized order fulfillment process is now a big deal for the survival of any business in the current competitive market.

The way to achieve that? Well, that’s what this article is all about.

In this article, we’ll see how one can attain an optimized order fulfillment process. We’ll walk through every step of the order fulfillment procedure, right from order placement to delivery, clearly highlighting optimization techniques to deploy in each of the steps for a more efficient and effective order fulfillment process.

Hence, whether you’re learning the ropes of running a successful business, or maybe you’re a seasoned entrepreneur seeking to gain a competitive edge over your peers through a well-optimized order fulfillment process, this guide should be your secret weapon, so read on!

What Is Order Fulfillment Process?

Before we dive into examining some of the best order fulfillment optimization techniques you can embrace, it’s imperative that we first knock off the basics.

So, what is the order fulfillment process?

Well, in simpler terms, order fulfillment entails all the activities that take place between the time when a customer places an order of a product and when they receive the product ordered.

The process involves multiple processes including:

• Order Receipt
• Order Processing
• Inventory Management
• Picking and Packaging
• Shipping and delivery confirmation

Assessing The Efficiency of Your Current Fulfillment Process

Before you roll out the order fulfillment optimization campaign, it’s paramount to first get a picture of your current performance in that area. You want to know what you’ve been doing as you ought to, areas where you’ve been going off the mark, and whether or not it’s the right time to proceed with the campaign.

To do that, you need to assess your current fulfillment process.

Here’s how to do that:

• Analyze your order volume. How have customer orders been flowing in recently? Have you registered more orders recently? If yes, then that’s a good sign that it’s time for you to start optimizing.
• Evaluate your inventory management process. Are you having difficulties keeping track of your stock levels and replenishing when necessary? If so, then that could be some of the early tell-tale signs that your current order fulfillment process can be made more efficient.
• Measure lead time. This is the time between order placement by a shopper and delivery of the product ordered. Measuring this time can help you determine the efficiency level in the fulfillment process.
• Evaluate customer feedback on your delivery process. Have you noticed any recurring complaints or concerns in customer feedback? In case there are, that’s another sign that there’s room for more efficiency in your order fulfillment.
• Reverse Logistic Strategy. A well-designed strategy for reverse logistics is essential in managing returns and waste, as it is one of the foremost drivers for a more agile, lean, and efficient supply chain. This kind of holistic approach boosts business performance while marching toward sustainability goals—an important implication in modern supply chain management.

These are just some of the key performance indicators (KPIs) that you should assess when evaluating your current fulfillment process. Of course, there are many others that may be specific to your business model and industry.

For instance, if you’re in the food and beverage industry, you may want to assess metrics such as the freshness of products upon delivery, packaging quality, and other parameters relevant to that industry.

Optimizing Order Receipt

When a customer places an order, that’s when the order fulfillment journey begins. The order reflects on the retailer’s end, who then responds to the shopper by sending a confirmation notification.

Now, as the initial phase of order fulfillment, sales receipt can greatly impact the overall performance of the entire process, so it’s important to incorporate efficiency right from this point.

Here are some tips for optimizing order receipts:

Automate The Process

The first thing you will want to do as a way to optimize order receipt is to make good use of technology in receiving and acknowledging the order.

Unlike manual order receipt processes where orders are placed and confirmed manually, automation brings speed and accuracy, eliminating some of the inefficiencies associated with the traditional order receipt processes.

Now, there are numerous ways to automate order receipt depending on the channel used to place the order, including the integration of AI into this process.

For instance, if most of your orders come through email, you can consider setting up automated email notifications that send back an acknowledgment note using bulk email services immediately after an order is received.