What to Look for When Choosing Order Fulfillment Companies
The supply chain is the overall process that explains how a product is created and then how it finds its way to the customer which order fulfilment being just a portion of it. This is among the processes that have a direct impact on the level of customer satisfaction achieved. In order fulfilment, the process starts with receipts of a customer’s order which is the packaged and sent. In the onset of technology the placement of order and other activities of a business can be conducted online. The ability of doing business online has increased the visibility within the chain which allows all the processes to see what is happening. The problem arises when a company has a whole list different products that they manufactures and they have to invest a lot of manpower to deliver which bring up the need for them to outsource this function.
The ability of an order fulfillment company to meet the customers’ orders is among the first things one should gauge before choosing the company to work with. Since order fulfillment has more optimized results if it is conducted via an online platform, one look for an order fulfilment company that has an e-commerce platform or that has the expertise to run an existing one. It is via this platform where customers are able to place their orders as well as track the status of the order. The order fulfilment company should also have sound communication system that allows them to reach both the customers and the manufacturing company in case of anything that comes up.
It is also prudent to look into the pricing of this order fulfilment company so that one can determine the impact the outsourcing will have on the price of the product to be delivered. While some charge a fixed monthly rate, other charge according to the transaction while others charge according to the weight of the commodity being delivered. The company should analyze the plan that best suites their needs depending on the nature of the goods being delivered. Another aspect that would really come in handy for the manufacturer is if this order fulfillment company offers storage as part of the price as this will help the company offset the costs that inventory attracts. This aspect is very critical because inventory costs are relatively high with some being ordering and packaging costs.
The company should also interrogate the manner in which the order fulfilment company deals with errors once they occur and the error rate of the company thus opting for companies with the least error rate. Some of the errors that could take place are delivering the wrong commodities to a customer or delivering the wrong quantities to a client. The ability to notice the errors correct them when they occur is also something that an order fulfilment company should have in place.