Order Fulfillment Best Practices
Operations

Order Fulfillment Best Practices

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Order Fulfillment Best Practices

Order Fulfillment

Efficient order fulfillment requires the right combination of processes, technology, and people. Use our WMS to implement these best practices and continuously improve your operations.

  • Update regularly based on feedback

  • Training materials

  • Visual work instructions

  • Standard Operating Procedures (SOPs)

  • Set daily goals

  • Share best practices

  • Discuss issues and solutions

  • Review previous day's performance

Continuous Improvement

  • Photo capture for issues
  • Real-time updates
  • Scan products and locations
  • Pick from mobile device

Mobile Integration

  • Exception handling
  • Performance dashboards
  • Inventory updates
  • Order status tracking

Real-Time Visibility

  • Route optimization
  • Pick list generation
  • Inventory allocation
  • Order import from e-commerce platforms

Automated Order Processing

Our Warehouse Management System streamlines fulfillment:

Integration with WMS

  • Customer complaints
  • Technology performance
  • Staff feedback
  • Where were bottlenecks?
  • What worked well?
    Review performance:

Post-Season Analysis

  • Carrier agreements: Negotiate capacity
  • Add stations: Temporary packing areas
  • Extend hours: Additional shifts
  • Increase inventory: Stock fast-movers
  • Hire temporary staff: 4-6 weeks before peak
    Prepare for demand spikes:

Seasonal Planning

  • If international → customs documentation
  • If value > $100 → require signature
  • If fragile → add bubble wrap
  • If weight < 1 lb → envelope
    Create automated rules:

Packaging Rules

  • Dimensional weight pricing
  • Customer preferences
  • Business rules engine
  • Real-time rate comparison
    Automatically select best carrier:

Rate Shopping

  • Features: Tracking, insurance, signature
  • Coverage: Service areas
  • Reliability: On-time performance
  • Cost: Compare rates
  • Speed: Delivery time requirements

Shipping Optimization

  • Supplier quality issues
  • Seasonal patterns
  • Reason codes analysis
  • Return rate by product
    Track returns to identify issues:

Returns Analytics

  1. Process Refund: Trigger financial transaction
  2. Update Inventory: Return to stock if applicable
  3. Determine Disposition: Restock, repair, or dispose
  4. Inspect Product: Check condition
  5. Receive Return: Scan return authorization
    Efficient returns processing:

Handling Returns

  • Continuous Training: Regular refresher courses
  • Feedback Loops: Learn from errors
  • Quality Control: Random audits
  • Two-Step Verification: Scan and visual check
  • Product Images: Visual confirmation on pick lists
  • Check Digits: Verify location and product codes

Error Prevention Strategies

  1. Pressure: Unrealistic productivity targets
  2. Fatigue: Long shifts without breaks
  3. Inadequate Training: Insufficient preparation
  4. Cluttered Locations: Disorganized storage
  5. Poor Lighting: Difficulty reading labels
  6. Similar Products: Confusing SKUs or appearance

Common Causes of Errors

On-Time % = (Orders Shipped On-Time / Total Orders) × 100

On-Time Shipment Rate: Meeting customer expectations

Cost = (Labor + Materials + Overhead) / Orders Shipped

Cost Per Order: Total fulfillment costs

Cycle Time = Ship Time - Order Time

Order Cycle Time: From order receipt to ship

Pick Rate = Total Orders / Total Labor Hours

Orders Per Hour: Track picker productivity

Accuracy = (Correct Orders / Total Orders) × 100

Order Accuracy: Target 99.5%+

Performance Metrics

  • Communication with management
  • Photo documentation
  • Real-time updates
  • Digital pick lists
    Smartphones and tablets for:

Mobile Devices

Modern beacon-based mobile navigation further enhances mobile picking by providing turn-by-turn directions to product locations.

  • Multilingual support
  • Increased productivity
  • Higher accuracy
  • Improved safety
    Hands-free, eyes-free picking:

Voice Picking

  • Hands-free operation
  • Lower error rates
  • Reduced training time
  • Increased pick rates (up to 300 lines/hour)
    Light-guided picking for high-volume operations:

Pick-to-Light Systems

  • Performance tracking
  • Proof of completion
  • Error reduction (99.9%+ accuracy)
  • Real-time inventory updates
    Benefits of scanning at each step:

Barcode Scanning

Technology Solutions

  • Confirm address label
  • Ensure proper packaging
  • Check product condition
  • Verify quantities
  • Match picked items to packing slip
    Implement verification steps:

Quality Checks

  • Trash/recycling bins
  • Tape dispenser
  • Scale for weight verification
  • Label printer at each station
  • All materials within reach
    Organize packing stations for efficiency:

Packing Stations

  • Foam: Custom protection
  • Paper: Eco-friendly, recyclable
  • Air pillows: Void fill, lightweight
  • Bubble wrap: Fragile items
    Select appropriate materials for product protection:

Packing Materials

  • Enhances customer experience
  • Improves sustainability
  • Lowers shipping costs
  • Reduces material costs
    Choose packaging that fits the product:

Right-Sizing Packaging

Packing Best Practices

  • By geographic destination

  • By product characteristics

  • By carrier pickup time

  • By order priority (rush, standard)
    Wave Strategies:

  • Priority handling

  • Better resource planning

  • Balanced labor utilization

  • Smooth workflow
    Advantages:

Orders released in waves throughout the day.

Wave Picking

  • Balance workload across zones

  • Need for order consolidation

  • Requires conveyor or cart system
    Considerations:

  • Parallel processing

  • Reduced congestion

  • Specialized knowledge of zone
    Advantages:

Warehouse divided into zones, pickers assigned to specific areas.

Zone Picking

  • Sort during or after picking

  • Limit batch size (8-12 orders)

  • Use mobile devices for real-time updates

  • Batch similar orders (size, destination)
    Implementation Tips:

  • Efficient use of labor

  • Increased pick rate

  • Reduced travel time
    Advantages:

Multiple orders picked simultaneously, sorted later.

Batch Picking

  • High-value products requiring special handling

  • Large, bulky items

  • Small operations
    Best For:

  • Best for low-volume operations

  • Lower productivity

  • High travel time
    Disadvantages:

  • Clear accountability

  • Easy training

  • High accuracy

  • Simple to implement
    Advantages:

One order at a time, complete pick to pack.

Picking Strategies

  • Dispatch scheduling
  • Tracking number generation
  • Rate shopping
  • Carrier selection

Shipping

  • Label printing
  • Documentation inclusion
  • Product protection
  • Appropriate packaging selection

Packing

  • Container selection
  • Quality checks
  • Quantity verification
  • Product retrieval from storage locations

Picking

  • Pick list generation
  • Zone assignment
  • Wave picking strategies
  • Batch processing for efficiency

Order Processing

Effective order processing relies on accurate inventory optimization to ensure stock availability and prevent backorders.

  • Priority assignment
  • Inventory availability check
  • Order validation and verification
  • Automated order import from multiple channels

Order Receipt

Understanding each step of the fulfillment process helps identify optimization opportunities.

The Order Fulfillment Process

Efficient order fulfillment is critical to customer satisfaction and operational success. This guide covers best practices for streamlining your order fulfillment process.

For additional resources on material handling and logistics best practices, explore the Material Handling Institute (MHI), the nation's largest material handling, logistics, and supply chain association.

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