Outbound orders represent customer requests for purchasing products from a business. These orders are directed to the business's warehouse or fulfillment center, which can be run internally or by a third-party logistics partner. The outbound order process encompasses all the steps necessary to fulfill these orders and deliver the products to the customer's location. This process typically involves several key stages:

• Order processing: where the order is received and validated.
• Picking: where the required items are retrieved from storage.
• Packing: where the items are prepared for shipping.
• Shipping: where the package is transferred to a carrier for delivery.
• Finally, delivery: where the order is received by the customer.

Various types of outbound orders, such as single-line orders, wholesale orders, and dropshipping orders, may have specific workflows within this overarching process.

Types of Outbound Orders

Having various outbound orders is crucial for driving growth and enhancing competitiveness in the market.

Single-Line Orders

A single-line order is an outbound order containing just one item or stock-keeping unit (SKU). Fulfilling these orders is a simple process that usually involves picking, packing, and shipping the single product to the customer. Single-line orders are commonly seen in e-commerce and retail settings, where customers frequently buy individual items. The fulfillment process for single-line orders is typically quicker and easier compared to orders with multiple items. Let's explore the typical workflow of fulfilling a single-line order using an order management system or warehouse management system.

• Order Receipt and Processing: Upon receiving a customer order, the system collects detailed information, such as SKU, customer details, and shipping address, from various channels like e-commerce platforms and online marketplaces.
• Inventory Management: The WMS simplifies the tracking of inventory levels for businesses, ensuring that items are readily available for picking. Utilizing real-time data, it constantly updates stock levels to prevent any stockouts.
• Picking: The picking process for single-line orders is efficiently executed by the WMS, which generates smart picklists directing pickers or automated robots to the precise location of the item.
• Packing: In the packing stage, the WMS automates the workflow by suggesting the optimal packaging materials based on the product type and order specifications. It also generates and prints packing slips, streamlining the process and minimizing manual involvement.
• Shipping: After the packed order is transferred to the shipping department, the WMS will select the most suitable carrier based on factors such as cost, delivery speed, and customer preference.
• Delivery and Tracking: A reliable system should be in place to provide customers with real-time tracking updates, ensuring they are kept informed about the progress of their order. This can be achieved through integration with a CRM or an OMS.
• Returns Management: In the event that a customer wishes to return an item, the WMS can process the return request, generate a return label, and update the inventory once the item has been successfully returned.

The order fulfillment software processes the order, checks stock availability, and creates a picking list for the warehouse staff. The staff member then finds the shoes, packages them carefully, and prints a shipping label. The software selects the most economical shipping carrier based on the destination and delivery speed. The package is sent to the chosen carrier, and the customer is provided with tracking details.

Multi-Line Orders

A multi-line order pertains to an outgoing order comprising various products or SKUs requested by a solitary customer. Such orders are more intricate compared to single-line orders as they necessitate the selection, packaging, and delivery of several items, often sourced from diverse locations within a warehouse or even from several warehouses. Multi-line orders pose additional challenges to the fulfillment process:

• Picking Complexity: Managing multiple SKUs within a single order adds complexity to the picking and packing procedures. Every item must be accurately selected and consolidated into a single shipment.

• Packaging Considerations: Selecting the appropriate packaging materials and methods for a diverse range of items can present complexities.

• Inventory Management: Ensuring all items in a multi-line order are in stock and accessible for picking can be difficult, particularly during peak periods.

• Order Accuracy: The likelihood of picking and packing errors rises with the number of items within an order.

To effectively optimize multi-line fulfillment for outbound logistics, a blend of process enhancements and software-driven solutions is essential.

• Utilize adaptable warehouse picking strategies to cater to various types of orders:
• Group orders together and pick all items simultaneously. A warehouse management system can batch orders based on common items or locations to streamline the picking process.
• Divide the warehouse into zones and assign pickers to specific areas. Pickers gather items from their designated zone, which are later consolidated.
• Combine batch and zone picking methods. Orders are grouped into waves based on criteria such as delivery times or shipping routes. Pickers work within their zones to fulfill items for multiple orders in a wave.
• Prioritize technology in order fulfillment processes.

• Incorporate robotic pickers and conveyor belts to assist floor workers whenever feasible.
• Integrate real-time inventory tracking using a Warehouse Management System (WMS) to maintain precise stock levels and eliminate discrepancies.

Dropship Orders

Dropship orders are a form of outbound order in which the retailer does not maintain inventory. Rather, upon receiving an order, the retailer transmits the order specifics to a supplier, who then directly delivers the product to the customer. While dropshipping presents various benefits, it necessitates smooth coordination between the retailer's e-commerce platform and the supplier's inventory and shipping systems. Through the utilization of fulfillment software, retailers can enhance the efficiency of their dropshipping operations, providing customers with a broader array of products while reducing fulfillment expenses and risks.

• Automated Order Routing: Once a customer order is received, the software automatically sends the order details to the appropriate supplier, eliminating the need for manual intervention and reducing processing time.
• Real-Time Inventory Synchronization: Establishing direct EDI or API connections with suppliers enables real-time communication, allowing the system to automatically place orders with the supplier.
• Order Tracking and Visibility: By integrating transportation solutions with suppliers, shipping labels are generated and tracking information is shared with customers. Automated notifications with tracking details are sent to customers as soon as the order is shipped.
• Supplier Performance Monitoring: The software tracks supplier performance metrics, such as e-commerce shipping speed and accuracy, enabling the retailer to promptly address any issues.
• Returns Management: In the event of returns, the software facilitates effective communication.

Bulk or Wholesale Orders

Bulk or wholesale orders involve B2B transactions in which a business purchases large quantities of products from another. These orders are commonly placed by retailers, distributors, or other businesses looking to replenish their inventory for resale or operational purposes. The subsequent sections outline various types of wholesale orders.

• Electronic Purchase Orders (POs) via EDI: B2B fulfillment involves the electronic exchange of purchase orders (POs) through Electronic Data Interchange (EDI). This automated process minimizes manual errors and enhances communication efficiency between businesses.
• Fulfillment by Amazon (FBA) Shipments: Businesses selling on Amazon frequently opt for Fulfillment by Amazon (FBA) services. FBA shipments entail sending large quantities of inventory to Amazon fulfillment centers, where Amazon manages storage, order picking, packaging, and shipping to customers.
• Direct-to-Retailer Shipments: In certain scenarios, wholesalers may choose to ship directly to retail stores instead of using distribution centers. This method can be particularly advantageous for large retailers with established distribution networks.
• Bulk Orders for Manufacturing: Manufacturers often place bulk orders for raw materials or components from suppliers to support their production operations.

Kitting Orders

Kitting orders involve the process of aggregating multiple individual products or components into a single kit, which is then treated as a single SKU within the inventory system. The steps of the Kitting Process are as follows:

• Retailers define kits in advance, identifying which SKUs are grouped together. Examples include a “back-to-school” kit containing notebooks, pens, and a backpack, or a “new homeowner kit” with cleaning supplies and tools.
• Inventory management software calculates the required quantities of each SKU for kit assembly.
• Warehouse staff select the individual items from their designated locations and transport them to the assigned kitting area.
• The kitted items are meticulously packaged together, often using custom-designed boxes or bags.
• A unique SKU is generated for the kit, and a shipping label is created.

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Cross-Docking Orders

Cross-docking is a strategic logistics approach that involves unloading products from incoming transportation, sorting them, and directly loading them onto outgoing transportation with minimal or no storage time in between. This method aims to optimize the supply chain by decreasing the reliance on warehousing and expediting the delivery process. The advantages of utilizing cross-docking include:

• Reduction in Inventory Holding Costs: By eliminating or reducing storage time, significant savings can be achieved in terms of warehouse space, labor, and inventory carrying expenses.
• Quicker Fulfillment Times: Cross-docking accelerates the flow of goods throughout the supply chain, facilitating faster order processing and delivery.
• Enhanced Product Freshness: This method is particularly beneficial for perishable items, as it reduces the risk of spoilage or damage during storage.
• Increased Responsiveness: Cross-docking enables businesses to promptly adapt to fluctuations in demand, as products are not tied up in inventory.

Split Orders

When a single customer order is divided into multiple shipments, it is known as split orders. This division may occur due to factors such as inventory availability, product location, or specific customer requirements. Each portion of the order is processed and shipped separately, often resulting in multiple delivery dates and packages for the customer. There are several scenarios that can lead to the need for split orders:

• Partial Inventory Availability: If some items in an order are in stock while others are back-ordered, the available items may be shipped immediately, with the remaining items sent later when they are back in stock.
• Multiple Warehouse Locations: If a customer orders items stored in different warehouses, the order may be split and fulfilled from each respective location.
• Varying Product Lead Times: Products with differing lead times, such as custom-made or made-to-order items, may require split shipments.
• Customer Preference: Sometimes, customers may specifically request split shipments to receive their items in separate deliveries.

Stock Transfer Orders

A stock transfer order is a critical outbound operation within a company for relocating inventory between different locations. It is particularly crucial for businesses with numerous warehouses, distribution centers, or retail stores. The main objective of a stock transfer order is to maintain optimal inventory levels across all locations, thus avoiding stock shortages, excess inventory, and ensuring a smooth supply chain. These orders are commonly initiated in response to fluctuations in demand or the necessity to enhance inventory management. Typical scenarios for stock transfer orders include:

• Demand Imbalance: In cases where demand for a product surges in one location while excess inventory remains in another, utilizing stock transfer orders can effectively redistribute stock to meet customer demands and prevent potential lost sales.
• Retail Replenishment: Stock transfer orders play a crucial role in replenishing inventory at retail stores, ensuring that shelves are consistently stocked and customers are able to easily find the products they are looking for.
• Seasonal Demand: Businesses in the United States may strategically use stock transfer orders during peak seasons to proactively transfer inventory to locations where high demand is expected.
• Inventory Consolidation: By consolidating inventory from multiple locations to a central warehouse, businesses can reduce storage costs and streamline their fulfillment operations.
• Promotional Events: Special promotions, sales events, or new store openings may require certain locations to have additional inventory to meet heightened customer demand. Stock transfer orders are utilized to ensure that these locations are adequately stocked for such events.

Buy Online, Pick Up In Store (BOPIS) 

BOPIS (Buy Online, Pick Up In Store) method enables customers to order items online and collect them from a physical store location. This approach combines the convenience of online shopping with the immediacy of in-store pickup, offering a seamless shopping experience. Retailers looking to connect their online and physical stores often utilize BOPIS. The typical BOPIS process involves the following steps:

• Customer selects and purchases items on the retailer’s website or app, opting for BOPIS at checkout.
• The retailer's order management system (OMS) processes the order and notifies the store for fulfillment.
• Store associates gather the ordered items and place them in a designated BOPIS area for customer pickup.
• Customers are alerted via email or SMS when their order is ready for collection.

Ship to Store

Ship-to-store is a fulfillment method in which customers place orders online and choose a physical store as the delivery location. The order is then sent from a warehouse or distribution center to the selected store, where the customer can retrieve it. This combination of online shopping convenience and in-store pickup immediacy sets ship-to-store apart from other fulfillment models like BOPIS. Unlike BOPIS, which relies on existing in-store inventory, ship-to-store involves transferring items specifically to meet customer orders. Retailers can use ship-to-store as a tool to enhance the omnichannel experience for their customers. It is a practical option for businesses and customers in the following circumstances:

• Expansion of Product Assortment: Retailers facing limited shelf space in brick-and-mortar stores can utilize their online platform to offer a wider variety of products. This allows customers to conveniently order items for in-store pickup.
• Inventory Management: Ship-to-store services provide retailers with the ability to utilize store inventory for fulfilling online orders. This strategy aids in maintaining optimal stock levels and reducing excess inventory in central warehouses. For instance, an American fashion retailer can ship products from a central distribution center to multiple stores nationwide based on online orders, ensuring popular items are available for pickup without overstocking any one location.
• Enhanced Customer Convenience: Offering the option for customers to pick up their orders in-store eliminates the wait for home delivery and allows for flexibility in choosing a convenient pickup time.
• Boost in Foot Traffic: Similar to Buy Online, Pick-up In Store (BOPIS) initiatives, ship-to-store services drive customers into physical stores, potentially leading to additional purchases.
• Cost Efficiency: By utilizing ship-to-store services, retailers can streamline their operations and reduce shipping costs associated with home delivery.

Return to Suppliers (RTS)

Return to Supplier (RTS) orders, also referred to as return to vendor orders, signify the opposite movement of goods through the supply chain. This process involves sending products back from a retailer or distributor to the initial supplier. Although commonly linked to customer returns, RTS orders can also be prompted by damaged items, excess inventory, or product recalls. Advantages of Return to Supplier Orders are:.

• Inventory Management: RTS aids businesses in optimizing inventory by eliminating defective or surplus items, thereby freeing up storage space for more functional items and marketable products.
• Reduction in Holding Costs: Returning unsellable items allows businesses to decrease expenses related to storing and managing such products.
• Quality Control: RTS ensures that only products meeting quality standards are available for sale, safeguarding the business's reputation. For instance, a clothing retailer may opt to return garments that do not meet quality specifications to the supplier.
• Cost Recovery: In situations involving damaged or defective goods, RTS orders enable retailers to recover costs by returning the items to the supplier for credit or replacement.
• Sustainability: In certain cases, returned products can be refurbished or repurposed by suppliers, reducing waste and supporting sustainability.

Fulfil Outbound Orders Intelligently With Nirmalya Enterprise Platform

Effortlessly combine all online and bulk wholesale orders onto one convenient dashboard with Nirmalya Enterprise Platform. Streamline outbound fulfillment processes, ensure no order goes unnoticed, and have complete visibility and control at your fingertips. Utilize Nirmalya’s Smart WMS to enhance decision-making, improve picking and fulfillment efficiency, and establish adaptable fulfillment workflows tailored to individual customer requirements, order specifications, geographical locations, and sales channels.

Nirmalya Enterprise Platform offers a comprehensive solution designed to streamline modern order fulfillment and manage all aspects of a business on a single unified platform. Our platform is equipped to handle various enterprise needs including HCM, SCM, unified portal, order management, logistics, CRM, analytics, and command and control systems. Our goal is to provide enterprises with everything they need to enhance their operations without the hassle of acquiring solutions from multiple vendors and dealing with integration challenges.

Contact us to learn more about how Nirmalya Enterprise Platform can enhance your omnichannel fulfillment strategy, improving efficiency and accuracy across all aspects of your ecommerce operations.