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On July 27, 2012

What does an Order Fulfillment Company Do

What are the advantages of using order fulfillment services?

We all know why some companies opt to get order fulfillment services. They are after the huge savings they can get out of it and they get to satisfy their customers while at it. The goal of such service companies after all, is to perform their best at giving their clients the greatest customer mechanism in terms of fulfilling orders.

Aside from the expertise of these service companies, the costs to employ them wouldn’t really add that much as compared to the costs of implementing order fulfillment within the company. The service people can totally and effectively provide customer satisfaction through excellent order fulfillment process.

What are then, the advantages of getting such services?

Fulfillment service companies have thousands of available spaces in their warehouses for any kind of product. It the item needs to be stored delicately or if it needs a climate-controlled environment, such facilities are available at practical fees or charges. It is practical because the owner need not put up the same facility himself. The lesser the costs the better for the business, the happier the owner is.

Storage fees are viable since owner need not invest in additional space just to store their additional products that could be seasonal. The charges depend on the service company. Some would charge based on palette size, item or volume size, or space size. The great thing about outsourced storage or warehousing is, the total cost could still be lower compared to individual storage facilities that the company will put up for their products.

Companies enjoy savings on shipping fees. Some small companies do not ship so many thousands of pieces at any given time. There could also be inconsistency in getting the shipping services of couriers. This will make it difficult for the business owner to negotiate cheaper fees for shipping.

The order fulfillment services companies ship bulks of packages and therefore could arrange for lower fees from the popular couriers like DHL. UPS, and Fedex. The savings can then be passed on to the clients making their shipping fees much lower and more attractive.

One other good thing about this is that business owners can make some arrangements for flat-rate fees on items that are contracted. This will allow the business owner to predict his expenses more accurately and be more prepared to pay for them as soon as billed.

There are a host of fulfillment steps that can be contracted. This includes order receipt, payment processing, coordination of bounce back packages, documentation of all shipments, merchandise inspection, timely reports, update of customer database, restocking of returned merchandise, bank deposits, customer service calls, E-Commerce, and customer relationship management. Business owner can negotiate with the service company and check if all such processes can be charged in a single fulfillment package.

There may be disadvantages too, but the benefits far outweigh them and that is the reason why so many companies are now employing companies that offer order fulfillment services. Their business gains excellent rates in customer satisfaction and they can focus on the sales and marketing of the products without worrying about fulfillment and excellent customer service.

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