Fulfillment Service Pitfalls

fulfillment service – orders

Orders are one of the most frequently outsourced operations in the market today.  Successful outsourcing can plan a huge role in controlling operational costs, but it is critical that valuable customer relationships are not jeopardized in the process.  When evaluating the merits of one fulfillment service provider over another, there are several do’s and don’ts to consider.

If your warehouse fulfillment service company is planning a new system implementation or significant upgrade, be sure to plan your activities with great care.  The systems implemented in your warehouse can make or break your operations.   An unsuccessful system implementation may harm your immediate operations and cause a significant snowball effect of process issues, missed deliveries, and customer dissatisfaction.

Avoid the following fulfillment service pitfalls to improve your chance of a successful system implementation.

No evaluation of existing procedures:  Rather than simply replicating your existing processes and systems, be sure to ask the following questions upfront:  What parts of the operation can be removed to add efficiency?  What new processes and procedures are required or on the nice-to-have list?  The sooner the better to ask and answer these questions.

Lack of project management: A major systems implementation is not simply an IT project.  All fulfillment service departments are impacted by a new system so get the input and cooperation of subjects across all areas of the business, coordinated by a dedicated Project Manager.  Many new systems fail because companies don’t realistically plan for the project or effectively manage the designated implementation plan.

Insufficient training: It is important to remember that the software vendor will only provide documentation about how the fulfillment system works.  The specifics of how the system operates within the framework of your business and all training materials needs to be developed in-house.  A ‘train the trainer’ approach is commonly used and serves to create Subject Matter Experts of the new system.

Inadequate testing:  Everything must be thoroughly tested.  Involve key users from each functional area and run through all fulfillment service processes in full.  Create test scripts and use actual historical data in your test cases for authenticity.  Test interfaces to other systems and all peripheral functionality such as reporting, printing, query creation, etc.

Minimal data conversion planning:  Most warehouse management systems are data-driven so it is critical to build a solid plan for file and data table conversion (item SKUs, warehouse bin location schema, customer data, etc).  Aim to convert as much data as possible via programming instead of manual copy-and-paste data update.  Also determine upfront how much historical data needs to be converted to the new system.

 IN ESSENCE HERE IS AN OUTLINE OF SOME DO’S AND DON’TS OF FULFILLMENT SERVICE

Order Fulfillment service Don’ts

Never be afraid to ask questions and expect detailed answers in return. It is your right to know exactly how your fulfillment service provider will increase efficiency and make your company shine in front of clients. If you only get vague responses to direct questions, you should move to the next candidate.

Avoid order an fulfillment service that does not have a well-defined process of accountability. You need to know what happens when inventory is lost, shipped in error, or is damaged while in storage. Inventory losses can make a significant dent in profits, easily offsetting the benefits of outsourcing. Never do business with any fulfillment service provider that cannot make specific and equitable commitments in handling these types of loss.

Do not sign any fulfillment service contracts until the provider has been checked for financial stability and a history of delivering quality service to its customers. An order fulfillment service company may have a great operational strategy and provide all the right answers, but is not a good match if its business is on shaky financial ground or has a poor service reputation.

Order Fulfillment service Do’s

Consider the warehousing capabilities of the provider. Simply put, an inadequate amount of square footage means that the fulfillment service may not be able to support the client’s inventory needs.  If you expect future inventory growth, ask about additional warehouse space availability and the process and timing involved to increase capacity.

Check which ordering methods the provider can process. Customers today require multiple options when it comes to submitting orders, ranging from traditional phone orders to real-time email and online orders.  Ensure that your provider can process high-volume orders across multiple formats.

Investigate the internal procedures used to process orders from receipt to delivery. Ask to see documented process to ensure the provider has the infrastructure and operational flow to provide acceptable order turnaround.   Also ask how exceptions and outages are handled; problems will arise and it’s critical to know how your provider will respond.

Think about location. Select an order fulfillment service provider that has facilities strategically located for your customer base.

Keep in mind that customers don’t care if you outsource their orders for completion or not. They do care if their order is late or differs from what was ordered.  If you choose to outsource your fulfillment service, candidly assess these do’s and don’ts before contracting with any service provider.

If you are looking for a warehouse fulfillment service company with a proven track record of successful system implementation and operation, contact Best West Direct to request further information and request a follow-up communication from us.

fulfillment service