1 / 4

Factors to Consider When Choosing an Order Fulfillment Center

It comes as no surprise that people now take quick shipping for granted when placing online orders for goods. The location of a warehouse may not seem important, but it has a direct impact on your success as an online retailer. Location is crucial in cutting down on commute time, saving you money, and enabling you to serve your customers more quickly. If you want to keep up with your competition, your entire company must be customer-focused. You can be constrained to your local region if you decide to manage order fulfillment yourself.

Preeti25
Download Presentation

Factors to Consider When Choosing an Order Fulfillment Center

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Factors to Consider When Choosing an Order Fulfillment Center It comes as no surprise that people now take quick shipping for granted when placing online orders for goods. The location of a warehouse may not seem important, but it has a direct impact on your success as an online retailer. Location is crucial in cutting down on commute time, saving you money, and enabling you to serve your customers more quickly. If you want to keep up with your competition, your entire company must be customer-focused. You can be constrained to your local region if you decide to manage order fulfillment yourself. If your goal is to expand your clientele and grow your business, this may not be the best course of action. In order to provide faster and more cheap shipping, you might choose a good fulfillment site with greater access to the people you want to target by outsourcing to a third-party logistics (3PL) provider. Consider the following selection criteria for warehouse sites if you're ready to improve your e-commerce firm. A. Shipping costs

  2. Your shipping costs are based on a variety of factors, including the weight of the package, its distance from point A to point B, its size and the type of packaging. The number of packages you send out each day also impacts your shipping costs. The best way to reduce these costs is by choosing a fulfillment center that's close to your customer base so you can ship smaller packages at lower costs. You'll also want an order fulfillment center that offers affordable rates for small- and medium-sized businesses as well as large ones. B. Productivity Productivity is a key factor when choosing an order fulfillment center. The productivity of your fulfillment center can be compared to other companies that are in the same industry or geographical area. A high level of productivity means that your company will be able to handle more orders and make more money. Productivity is measured by the number of cases processed per employee per hour, or cases per employee hour (CPEH). RFPs should clearly state how CPEH will be measured. Productivity also affects your profit margins, so it’s important that you find an order fulfillment center with high levels of productivity. The impact on profitability depends on whether you have a fixed labor cost model or variable labor cost model for billing each order placed through the company's website or by phone. In addition to making sure each order is fulfilled quickly and accurately, having high levels of productivity at any stage during fulfillment can save your business time and money overall -- which means less stress as well! C. Services provided ● Pickup and delivery. ● Packing services. ● Customer service. ● Shipping insurance. ● Customer feedback. ● Customer relationship management. ● Tracking (inventory, order placement, sales). ● Customer satisfaction/retention/loyalty programs (promotional codes, coupons). D. Location Location is an important consideration when choosing a fulfillment center. If you have customers in a certain area, it may be more convenient to choose a delivery company that is close to them. On the other hand, if you ship to many different areas, it would be more efficient for your business to choose a shipping company that has multiple locations throughout the country.

  3. When considering location for your ecommerce fulfillment center, keep these things in mind: - Delivery speed is a major factor when choosing an ecommerce fulfillment center. You want to make sure that your customers get their products as quickly and efficiently as possible, so they can use them to buy more of what you’re selling. When looking for the right fulfillment center, it’s important to consider how long it takes for your orders to be shipped out after being placed. Depending on which delivery company you choose, this time period could vary significantly. For example, some fulfillment centers offer ground shipping while others prefer air freight services (which take longer). If you have specific requirements regarding delivery speed or other factors like cost and sustainability, then you can look into these options before making your final decision about which center will work best for your business overall. - - E. You can choose a delivery company that suits your needs best. If you’re looking for a company that has great customer service, look for one with a good reputation for shipping. A great example of this is when companies offer free tracking and insurance on all deliveries, which makes it easier on customers who order from them because they don’t have to worry about anything going wrong with their purchase.

  4. You also want to make sure the company has plenty of experience in what they do, so look for one that has been around for many years and has developed relationships with many other clients over the years too! There are many factors to consider when choosing an order fulfillment center, but you can find the one that suits your needs best. It’s important to do research before making any decisions about shipping or logistics services so you know what kind of service level you can expect from each company.

More Related