Tag Archives: Order Fulfilment

What is Order Fulfilment?

This Process refers to the steps a company
takes from the moment they receive the order, to the company processing the
order and then releasing the order which will end up in the customer’s hands.
There is another term associated with order fulfilment and it’s called a
fulfilment service. This service is usually defined as a company that works
to fulfil the order fulfilment steps on behalf of another company, mostly
being an online seller. Therefore the company fulfilling this service becomes
the third party intermediary.

Order Fulfilment



The process usually involves warehousing
the product, picking and packing it, shipping it and then sending the receiver
an automated email that will notify them one the package is in transit. And the
definition provided usually applies to different types of orders ranging from
large Business – to – Business type of orders to Direct – to – Consumer
individual orders.



  • Order fulfilment is a major aspect for a
    company that really wants to succeed and stay in business. It is an aspect that
    requires the company to pay attention to the processing of orders, to the needs
    of the clients, being able to manage their time and the quality assurance of
    their products. Therefore, it is an area that requires people who are
    insightful and technical business knowledge that will help to achieve each and
    every request completion.


Steps of Order Fulfilment


There are 5 steps involved in the handling
of order fulfillments.


1. Receiving the inventory


The inventory can be handled in 2 ways; the
company can keep the inventory in – house or it can outsource to a third party
eCommerce fulfillment service. If the company chooses to store in – house, it
will be responsible for examining the inventory, doing a stock take of its
inventory, labeling the inventory and managing the system inventory. If it
opted to outsource, the third party company will do those tasks.


2. Storing the inventory


After the inventory has been received and
recorded, the next step is in its storage. And how the inventory will be stored
is very important to the company. This is because it will determine the
accuracy and speed of order fulfillment operations for the company. The
inventory should be categorized in different sections in order to maximize the
speed for which the delivery will be sent out. Products that are known to sell
at a faster rate or the “hot stuff’ should also be categorised together and
easy to reach.


3. Order processing


Once an order has been placed by the
customer, the company will now get the order and sent it to its fulfilment
warehouse. For most companies, they provide a shopping cart that will be
automatically received by the fulfilment warehouse. After it is received,
workers will then pick the products from the shelf and then taken to the order
processing station. Once the product is here, it will be inspected for any
damages, then it will be scanned, packing slips are added, boxed and sealed and
then, and then moved to the shipping station.


4. Order shipping


When the order arrives at the shipping
station, it is prepared to be delivered to the customer. The shipping station
will first and foremost weigh the package, size it and then determine the best
shipping method to be used in delivering the order. There are specific
requirement that might be sent to the customer which will make the shipping
process a bit complex. This process will more often than not involve a third
party to perform this step. And it becomes the duty of the shipping station to update
on the progress of the delivery of the order to keep both the company and the
customer notified and tack the order till point of delivery.


5. Returns


What determines a customer to buy a product
is the ability of the customer to return the product and get a refund.
Therefore a company should have the ability to handle the returns effectively
as this will be critical to their overall business and more specifically, their
fulfilment operations. It is then imperative for the company to establish both
internal and external return. The company’s website should clearly state where
and how they can return the product while internal policies should tell the
company stuff how to handle the returned product once they get back to the
store.

Order Fulfilment



This is just a simple explanation of what
order fulfilment is but it does not go to show the intricacies involved in the
whole process because sellers are not the same and thus will need to be
tailored for each.