Many companies have found that their e-commerce sales have surpassed those of their brick-and-mortar store sales. With the onset of the global pandemic, online sales have surged to unprecedented levels. Since 2020, merchants have shifted their focus to online retail, highlighting the importance of the fulfilment process in meeting customer demands. Retail fulfilment plays a crucial role in ensuring that each online order is accurately picked from inventory, properly packed, labelled for shipment, and delivered to the customer. This process incurs retail fulfilment costs that must be considered by businesses. To fully embrace an omnichannel approach, it is essential to enhance the retail fulfilment process and engage professional logistics management for support. But what exactly is retail fulfilment, and how can a logistics provider assist in scaling your e-commerce operation?

What Is Retail Fulfilment?

Retail fulfilment encompasses the process of compiling and dispatching customer product orders. Rather than customers making in-store purchases, they have the convenience of browsing and buying items through your website. The e-commerce platform facilitates the communication of these orders to the fulfilment centre, where staff meticulously pick, pack, and ships the correct products to the customer.

Importance of the Retail Fulfilment Process

Retail fulfilment is vital for your online business as it directly impacts customer satisfaction and profitability. Even if you excel in sales, it is crucial to consider the costs and time associated with packing, shipping, and delivering orders to your customers promptly. Failing to meet these expectations consistently may result in customers seeking out other retailers who can deliver on these promises. Collaborating with a third-party logistics (3PL) provider to oversee your retail fulfilment process is essential for the growth of your business. Their streamlined operations and handling of customer orders will allow you to effectively expand your business as demand increases, ultimately leading to higher profits.

Workflow of the Retail Fulfilment Process

Replenishing Inventory

When products are sold from your inventory to customers, it is essential to restock. For businesses with an e-commerce platform, the volume of orders can be significant compared to local brick-and-mortar shops. By partnering with a retail fulfilment service, you can better handle replenishment quantities and improve your inventory forecasting. Upon receiving new inventory at your fulfilment centre, each SKU will be assigned a storage location - whether it be a bin, shelf, or pallet. These items will be organized within both physical storage and digital tracking systems, complete with thorough documentation. A dedicated warehouse management team can assist in establishing the necessary organization, infrastructure, software, and procedures to effectively monitor your inventory.

Warehousing Procedures

Once the inventory has been securely stored, the subsequent stage is to utilize these well-organized products for the purpose of fulfilling customer orders. It is imperative to consistently monitor your stock levels to guarantee timely replenishment of items that have been sold in order to avoid any stockouts.

Order Fulfilment Process

Once a customer's order has been processed in the queue, a picking list is automatically generated. Warehouse staffs then retrieve the products listed on the picking list and prepare them for packing. Deliveries are typically packaged in sturdy cardboard boxes or poly mailers, filled with protective stuffing to prevent the products from being damaged during transit.

Shipment Process

The final stage in fulfilling orders is the shipping process. The product will be dispatched or delivered to the customer and is expected to reach them prior to the estimated date indicated on the website post-checkout. Working with a reliable third-party logistics provider who maintains strong partnerships with shipping companies and drivers will guarantee prompt delivery of your products to your customers.

Retail Fulfilment Optimization

Choosing a Fulfilment Centre

Opting for a fulfilment centre in close proximity to your customers can lead to cost-effective and streamlined shipping processes. Even for international customers, selecting a fulfilment provider with strategically positioned locations can help expedite delivery and lower shipping expenses.

Integrated Fulfilment Platform

When selecting a 3PL partner, it is essential to confirm that they offer integrated fulfilment software and technology. Their software should effortlessly merge with the e-commerce platform and online marketplace to effectively oversee orders across various sales channels. Once an order is made online, the fulfilment team will promptly receive a notification to prepare, package, and dispatch the correct items to the customer. Subsequently, tracking details can be forwarded to the platform or marketplace and communicated to customers upon shipment of their orders.

Delivery Speed

Customers now expect fast two-day shipping from online retailers like Amazon, so it's crucial to choose a 3PL provider with well-placed distribution centres. By selecting a provider strategically located, you can significantly reduce fulfilment time without the need for expensive expedited shipping costs.

Maximizing Your Business Potential with Nirmalya Enterprise Platform

Nirmalya Enterprise Platform offers a comprehensive suite of solutions for enterprises looking to enhance their business operations. From supply chain management to e-commerce, logistics, warehouse management, and integration with third-party logistics, inventory tracking, order management, financial management, interactive dashboard, and Business Intellegence, our platform has everything you need to streamline your operations and drive growth. Our mission is to provide a unified platform that caters to the needs of retailers worldwide, offering a wide range of services to support your business expansion. Get in touch with us today to discover how we can optimize your supply chain processes.