7 Essential Checklists for Faster, More Cost-Effective Order Fulfillment

In today's competitive online shopping world, slow shipping can hurt your business. If customers have to wait too long for their orders, they might cancel their purchases, leave bad reviews, and stop buying from you.

In addition, the fulfillment process is becoming more complex, with evolving customer expectations and the need to integrate with multiple sales channels, all of which can strain resources and impact profitability.

This article lists 7 things to check for faster and cheaper shipping. These steps will help you keep your customers happy and grow your business.

1. Inventory Optimization

To maintain optimal inventory levels, focus on these key areas:

• ABC Analysis:
  Prioritize fast-moving items (A-items) for optimal storage and minimize holding costs for slow-movers (C-items). This also improves warehouse operations by placing high-demand items in easily accessible locations for quicker picking.
  
  
• Accurate Forecasting:
  Minimize overstocking and prevent costly stockouts through precise demand forecasting.
  
  If you have more than 6 months of order history and average more than 50 orders per week for certain SKUs, consider our advanced AI-powered forecasting tools to determine optimal inventory levels. Contact us for more information.

2. Efficient Warehouse Layout

A well-organized warehouse layout is crucial for efficient order fulfillment. Consider these strategies:

• Strategic Zoning:
  Group frequently picked items together in "hot zones" near the packing area to minimize travel time. For example, if electronics are a major product category, place popular items like smartphones, chargers, and headphones in the same zone.
  
  
• Optimized Pick Paths:
  Design pick paths (e.g., serpentine, U-shaped) to minimize backtracking and reduce travel distances. However, do keep in mind that some of the designed paths might be difficult to adapt to changing order volumes or product mixes. Frequent layout changes can be time-consuming and disruptive.

3. Order Picking Strategies

Choose the most efficient order picking method for your business: 

• Single order picking is suitable for low order volumes.
• Consider zone picking, wave picking, or batch picking for high order volumes, similar items in orders, etc.

Do not forget that efficient layout and picking strategies are interconnected. For example, batch picking often requires wider aisles to accommodate multiple picking carts

4. Transportation & Logistics

Optimize your transportation and logistics to minimize costs and maximize efficiency:

• Carrier Negotiation:
  Negotiate favorable shipping rates with carriers based on volume and shipping frequency.
  
  
• Route Optimization:
  Optimize delivery routes to minimize distance, fuel consumption, and delivery times.
  
  
• Shipment Consolidation:
  Combine smaller orders into larger shipments to reduce the number of deliveries and lower per-unit shipping costs.
  
  
• Intermodal Transportation:
  Leverage a combination of transportation modes (e.g., truck, rail, ship) to optimize cost-effectiveness and efficiency. 

*For shipments to or from Japan, consider partnering with Nippon Express for reliable and efficient solutions as we are one of the largest international freight forwarders in Japan with multiple mode 

• Also Read: Multimodal service from Japan to Europe 
• Also Read: Multimodal transport service from North America to Asia

5. Technology & Process Improvement

Leverage technology to streamline your order fulfillment process:

• Order Management System (OMS):
  Streamline order processing, manage inventory, and integrate with other systems for a seamless workflow.
  
  
• Warehouse Management System (WMS):
  Utilize a WMS to track inventory in real-time, manage orders, optimize picking routes, and gain valuable insights. A robust WMS should offer real-time inventory tracking, scalability, integration capabilities, and advanced reporting and analytics.

6. Outsourcing & Partnerships

You can certainly try to manage your own warehouse until your monthly order volume reaches a certain level where warehousing starts to take up too much time. Before outsourcing to a third-party logistics provider (3PL).

Consider outsourcing to 3PLs when:

• Rapid Business Growth:
  You're experiencing rapid growth and your in-house operations are struggling to keep up.
  
  
• Seasonal Demand Fluctuations:
  You face significant seasonal demand fluctuations that make it difficult to manage staffing and resources effectively.
  
  
• Geographic Expansion:
  You're expanding into new regions or countries and need to ensure fast and reliable delivery to customers in those areas.

7. Packaging & Shipping

Optimize your packaging and shipping practices for cost effectiveness and sustainability:

For example, use efficient packaging methods/materials to minimize shipping costs and reduce damage in transit. Sometimes, especially if your item is irregularly shaped, such as an umbrella or a bottle of wine, it is better to customize the box rather than use the standard box you can get over the counter. This allows the operators to pack your items efficiently and reduces the possibility of damage.

By implementing these strategies, you can significantly improve your order fulfillment process, enhance customer satisfaction, and gain a competitive edge in the e-commerce market.

Even after optimizing your fulfillment processes, still facing challenges? Don't worry. Contact Nippon Express's DCX Fulfillment Team. We provide expert solutions to optimize your entire fulfillment process. Click the button below to get started.

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