How small businesses can optimize their order fulfillment
Photo by Mikhail Nilov
Quick and accurate order fulfillment can make the difference between a successful company and one that doesn’t make it. And small and medium-sized enterprises, otherwise known as SMEs, must stake their reputation on efficient order processing to earn new and returning customers. Today’s consumers want delivery services to be swift, and the businesses that can deliver on these priorities will succeed. With the help of technological advances and innovative planning, SMEs can optimize order fulfillment processes.
Read on to discover some of the best strategies SMEs are using!
Investing in automation
The most successful companies are leveraging automation to streamline processes, as it enables them to avoid relying on manual labor for repetitive tasks. After all, for SMEs trying to carve out their space in a competitive landscape and generate business confidence, employees may be stretched thin as it is. Software can help jumpstart automation goals by providing real-time updates on everything from inventory to deliveries. With inventory management software and order management software, business leaders won’t be using clumsy record-keeping and hunches to make decisions. Instead, leaders can track route progress to see if more efficient navigation or delivery timeframes would yield better results. And they can get alerted when in-demand items are running low in a warehouse.
Further, software enables businesses to communicate with customers from a centralized portal. This reduces the chances of miscommunications that can lead to customer dissatisfaction. With software handling order updates and progress, employees can focus their attention on more pressing matters, such as product updates or branding campaigns.
Considering fulfillment options
An SME must determine whether it makes more sense to fulfill orders in-house or outsource to a third-party logistics (3PL) provider. Choosing the right eCommerce fulfillment solution can set up a company for faster deliveries and more satisfied customers.
The outsourcing option may be a suitable choice for companies that have experienced rapid growth and a high volume of sales. Turning to a reputable 3PL can result in better pricing for bulk orders and faster delivery times, thanks to increased warehouse access. This level of professionalism can also help earn repeat customers.
By contrast, in-house fulfillment may be more suitable for SMEs with a low volume of products. And, in some cases, if there are specialized packaging methods, it’s better to control the packaging in-house. In-house fulfillment also means the company oversees everything, which offers greater control over processes and quality than what may be possible with a third-party logistics (3PL) provider. The downside, of course, is that all of these tasks chew up valuable company time.
Managing inventory effectively
SMEs can derail their business plans in a hurry if they’re not careful with inventory management. For product-based businesses, inventory is the source of revenue. But if products are understocked or overstocked in warehouses, companies can pay a big price and lose out on sales.
Using forecasting tools can help companies anticipate trends and seasonal fluctuations more effectively. In response, businesses can ease up on inventory during slow seasons and stock up during the holidays, for instance. Businesses would be wise to conduct regular audits as well, to ensure records are accurate and identify products that may not be worth stocking. And using strategies like a Just-in-Time (JIT) inventory system can help SMEs steer clear of overstocking products by receiving products right when they are needed. With streamlined inventory practices, businesses won’t spend too much on products or the warehouse space necessary to store them.
Focusing on better packaging and shipping
An inefficient approach to packaging can lead to overspending on packaging materials and shipping costs. That’s why it’s so important to choose boxes or other containers that are not too large. For especially popular products, companies can pack those items ahead of time, making them ready to go.
Additionally, SMEs should aim to choose shipping partners that can offer the best blend of results and affordability. Shipping partners should demonstrate a track record of on-time deliveries and the necessary level of geographic coverage. They should also offer discounts for bulk shipments or other incentives that can help trim costs. Some SMEs may want to use multiple carriers depending on the scope of the territory they cover.
Preparing for the future
SMEs can optimize order fulfillment by investing in automation and maintaining accurate inventory levels. With a watchful eye and a little help from technology, businesses can serve customers effectively and establish a positive reputation. SMEs may benefit from outsourcing in some cases, while in others, keeping everything in-house may be more effective. Ultimately, businesses must plan to continually evaluate their processes and make adjustments to ensure the best possible customer experience.