Shipping Steps in to Improve Order Fulfillment

We already know how Amazon is giving big traditional retailers a run for their money. But its fast, free delivery deals impact retailers of all sizes. These companies, particularly those with eCommerce channels, feel the pressure to improve order fulfillment.

Consequently, 3PLs and specialized shipping service providers now have come to the rescue.

As The Wall Street Journal reports, the demand for fulfillment services has ballooned in the past year. Retailers see the need to offer faster, cheaper delivery options. And they especially want it to keep customers from going to competitors on Amazon Prime.

Meanwhile, 3PLs see Amazon as a threat to their business, too. In a way, Amazon spurred a more competitive market in which 3PLs and specialized shipping companies offer more to help retailers improve order fulfillment.

Order Fulfillment in the Supply Chain

From a broad perspective, order fulfillment is the process of completing a sale. It starts with the customer query and ends with the delivery. In a way, order fulfillment is a major component and function of a supply chain. It is also one of the reasons for good inventory management.

If the supply chain describes the steps a product takes to go from fabrication to sourcing to warehousing and sale, then order fulfillment is the part of the supply chain that makes customers happy.

Your product may be good. But it isn’t the entire story. You need the processes of order fulfillment to make the customer happy not just about the product, but about buying from you.

Shipping Solutions Rush to Improve Order Fulfillment

As The Wall Street Journal mentions, a wide mix of companies have rushed to offer services to improve order fulfillment for SMB retailers and eCommerce sellers. The goal appears to be faster shipping.

FedEx launched its FedEx Supply Chain service in February to manage fulfillment for smaller retailers. It allows customers to reach 98% of Americans via two-day ground shipping. FedEx previously offered this level of service only to big customers, such as department stores. Other startups, such as ShipBob and Red Stag, offer fulfillment centers for multiple small retailers.

All these solutions rely on technology to streamline operations and balance inventory across warehouses with fast delivery as a major end-goal.

The market seems to be moving to where there will be more choices for smaller retailers to economize and improve order fulfillment by outsourcing shipping and warehousing.

This means businesses don’t have to rely on Amazon exclusively. But they will have more choices as time goes by, and if a company can integrate their inventory with a range of 3PLs and shipping solutions, they can more easily adapt to the shifting eCommerce landscape.