Order Fulfillment in Simple Terms

One part of your supply chain helps ensure consumers receive your products more than any other part. If you answered anything other than order fulfillment, I think it’s time for a quick lesson in this critical component.

We want our readers to feel empowered to make the best choices for their businesses. That is why we want to explain the process of order fulfillment. By the end of this article, you will understand how the process works from beginning to end and even have a grasp of the dreaded variable.

Do You Know What Order Fulfillment Is?

Orderfillment is one of the many steps in the supply chain that ensures your products get into the hands of those that want them. To be slightly more technical, Wikipedia refers to it as “the complete process from point of sales inquiry to delivery of a product to the customer.”

There are five steps included in this process, but occasionally a sixth is added. Continue reading to find out what that sixth step is!

Inventory Receiving

The first step in the order fulfillment process is the act of receiving inventory. This step entails counting and logging inventory you receive from a third-party vendor or that you send to the warehouse.

The process of receiving inventory can look a bit different for every business, depending on how they choose to keep track of their products. Corporations may use advanced automated systems, while smaller businesses may opt for a more hands-on method.

Organizing Inventory

After receiving and logging the new inventory, it’s time to organize. This step entails placing the inventory in its designated storage location until it is ready to be shipped to the consumers. Although this step takes time to complete, it is simple and straightforward.

Order Processing

Once an order comes through, it’s time for the third step in the fulfillment process. Order processing is the act of reading over the order slip and gathering the products listed on it. The person processing the order will then ensure it is packaged up and ready for shipment.

Shipping The Order

Speaking of shipment, here we are at the fourth step in the process. Shipping the order can be considered the final step in most cases. It is the simple act of taking a package of goods and making it go on its way to the consumer.

The Variable

Lastly, we have what many business owners dread, the variable. And that variable is the act of return. Returns happen for numerous reasons, and are nothing to be ashamed of. They are simply a moment meant for educating yourself on how to improve.

When an item is returned, it must be processed in the system appropriately. That may include processing it back into your stock of inventory or updating your data channels to show a product or monetary loss. This process is different for every business because it simply depends on your standards for products that can return to standard inventory.

Manage Order Fulfillment With Overflo!

Do you find yourself struggling to manage your order fulfillment process? If so, then it’s time to outsource to Overflo!

We are a third-party logistics company that can help with a variety of needs, including warehousing, order fulfillment, and logistics.

Contact us today to learn more about our wide variety of services and receive a free rate quote!