Why is order fulfilment efficiency important?
Order fulfilment efficiency directly affects your inventory carrying costs, which determine profitability and liquidity at any given time. It also affects the customer experience and how much time you can afford to spend on other activities, like growing your business.
Fulfilment optimisation is essential for healthy business growth and brand reputation. If you fail to deliver orders on time, accurately, and in full, your customers will start talking. And it won’t be good things they’re saying.
The faster and more accurately you can fulfil customer orders, the happier your customers will be and the less time and money you’ll have to spend on managing inventory.
With that said, here are my top seven tips for improving Shopify order fulfilment efficiency.
1. Use the right tools and equipment
Invest in the right warehousing equipment early – even if you haven’t got a warehouse yet.
Some of the basics you’ll need early on include:
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Warehousing tools – For larger businesses, this can mean barcode scanners, forklifts, and mobile picking carts. For new stores, it can just mean somewhere clutter-free to receive goods and pack orders.
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Shipping tools – One of the earliest time savings you can make in ecommerce is to streamline your shipping process with courier label printers, tape guns, and an optimised shipping station.
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Storage equipment – How you store your inventory directly affects how fast you can find it, pick it, and put it away. Invest in shelving, bins, bin dividers, and other storage equipment as soon as your stock on hand demands it.
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2. Implement automation software
Much of the fulfilment process can be improved with automation, and there’s software available for just about every function you need.
Some examples of order fulfilment automation software include:
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Inventory management software
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Warehouse management software
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Shipping software
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ERP software
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Speak to an accountant or financial advisor that knows your industry well. Ask for recommendations on your tech stack and when to invest in new software. Read reviews on sites like Capterra, G2, and TrustPilot to see which software vendor is best for your business.
3. Find the right order-picking methods
There are numerous order-picking methods to choose from – the trick is finding the one that’s best for your specific needs.
The aim is to select a method that minimises fulfilment time, maximises picking accuracy, and prevents unnecessary downtime during the picking process.
Research methods online – there are a dozen or so to choose from – and implement the method you think will work best. Experiment with different approaches and try hybrid methods until you know exactly which strategy enables optimal order picking.
4. Optimise warehouse layout
There are many hidden expenses that come with expanding or changing storage locations. The procurement of service providers takes time and money in itself.
That’s why it’s always best to first consider if you can make better use of the space already available to you.
Start by mapping out your warehouse. Think about how you might make better use of your shelves – perhaps by splitting them in half or adding bin dividers.
Then consider where your best-sellers are located. Keep fast-moving products closer to the packing area where possible. Ensure aisles are clear and there are obvious picking paths for every SKU.
5. Accurately communicate lead times to customers
A major part of order fulfilment is just managing customer expectations.
Make it clear on your website how long shipping is likely to take – and make sure this estimate is accurate. Send regular updates to customers as their order is processed, dispatched, and delivered. Respond to shipping enquiries promptly.
Once a customer has paid for an item, they will be very upset if it does not show up when it’s supposed to. Keeping good on your delivery promises will reduce the number of emails in your inbox and ensure your brand sustains a reputation for being reliable and honest.
