What is the Order Fulfillment Process?
Introduction
Our question is, how are eCommerce orders filled by a full-service fulfillment company? What exactly is the order fulfillment process? We are going to go through the process from the time the eCommerce seller’s products arrive at the fulfillment company’s warehouse to the delivery of the product into the customer’s hands. There are many possible steps between delivery to the warehouse and delivery to the customer, especially if the fulfillment company is full-service.
AMS Fulfillment is a full-service company that has been in the business of order fulfillment for more than 20 years. We fill many roles for our clients as product fulfillment is a lot more than pick it, pack it and ship it. What sets AMS apart as a fulfillment company is the many services we provide and the partner relationship we establish with our clients. In addition to our client services, we are a B Corporation, committed to our employees, our communities, our environment and our clients as stakeholders in our business and our decisions.
In this writing we will be pointing toward how the order fulfillment process at AMS compares to other fulfillment companies. We’ll talk about our technology-driven approach, our very accurate and advanced inventory management, our multi-channel capabilities, our commitment to cost-effective solutions and our scalability, our automated picking and packing systems and our determination to be a partner to our clients, focused on growth.
The Order Fulfillment Process & What Sets AMS Apart
The process of filling orders involves receiving the inventory, placing it in the warehouse, receiving and processing the orders, shipping the product to the buyer, and handling returns. Let’s review these key stages in the order fulfillment process.
Receiving Inventory
The first step in fulfillment is when the seller’s products arrive at the AMS warehouse. There is a receiving team at every warehouse, and their job is to accept the shipment and do a count, scanning or counting every stock-keeping unit (SKU) received and conveying to the client an accurate number of what has been received. AMS calls it “down to the unit accuracy” and we count by unit what we receive.
Obtaining an accurate count of the products, knowing exactly what SKUs are in the inventory and knowing exactly where the products are in the warehouse and in what quantity… these things are the first task of the Receiving Team. The data will be entered into the Warehouse Management system and the Inventory Management system.
Our technology systems will be fully integrated with the technology of our clients, so when the products arrive at the warehouse, the Receiving Team will be able to see exactly what the eCommerce seller, our client, has shipped. The systems will be talking with each other. In this way we can verify that the numbers are correct, right from the start.
Storage & Inventory Management
At AMS, scanning the SKU allows us to put-away inventory in a client-specific location, it allows us to sort the products and if our client wants the products shipped FIFO, which means first expiry first out, we will easily be able to know which products to ship first.
AMS has an in-house technology team, and this team has developed proprietary software for warehouse management, inventory management and shipping. We are able to receive products quickly and accurately, and accurately manage the storage of those product and facilitate the readiness of the products for the next stage. We know that our clients depend on us for efficiency, accuracy and security in receiving, storing, and picking the correct product.
Order Processing
The next step is processing the orders. When the eCommerce buyer clicks the pay button, the order goes into the integrated systems of the seller and AMS. The orders will show up for our pick and pack team and the next step in the order fulfillment process begins. The products are moved to the proper location, convenient to the packing station, and order processing continues.
The team members will pick and scan the product. There may be sorting required prior to packing, or there may be some unique customization or other requirements of the clients. Kitting is an option at this stage, wherein a group of related products are put together into a kit and shipped together. This happens when the eCommerce company sells them as a kit. In any case, this is the stage in the order fulfillment process where the product will be appropriately packed. AMS offers biodegradable packaging and of course the safety of the product is foremost. Some of our clients will provide brand-specific packaging, which our team will use according to client specifications. When the package leaves the packing station it will be safely, efficiently, properly packed and labeled, and ready for shipment to the buyer. The AMS Inventory Management system, integrated with that of the client, will show that the order is ready for shipping.
Shipping and Delivery
The eCommerce order is picked from inventory and identified by SKU in the Inventory Management system. The product is appropriately packed following client wishes. Next, the packed and labeled product will be placed in the hands of the Shipping Team.
The shipping team will look at the criteria that must be met, i.e. days in transit, client budget and product handling requirements if any. AMS has very good relationships with and knowledge of the major carriers. We also know and utilize many other carriers including local carriers. The AMS in-house IT Team has developed proprietary shipping software that makes the search for carriers that meet the criteria. In this way, AMS not only gets the package to the buyer on time, we also get the lowest possible cost for the client. And finally, with the integration of AMS software and the client’s software, the buyer will see that the package is on the way.
Returns Management
The buyer has their product, and in most cases the order fulfillment process is complete. But, there is one more thing that eCommerce sellers do have to deal with, and that takes place if the buyer is dissatisfied and decides to return the product. The ideal situation in this case is when a return label is included with the product.
The customer will communicate with the seller and per the returns agreement, the customer will ship the product back as a return. When the returns team receives the product, they will proceed in accordance with the wishes of the client/eCommerce seller. There are many options that can take place, and the best and preferred option is to examine the return, find it in good condition, and return it to inventory to be sold to another buyer.
AMS will handle the return by examining it and returning it to inventory, re-packaging it if needed, refurbishing or repairing it if possible and preferred by the client, moving it to an alternate sales channel, donating it to a community organization, recycling it if possible, or disposing it in the most environmentally conscious manner.
Common Challenges in Order Fulfillment
There are plenty of challenges in the order fulfillment process and due to our years in the business, our technology, and our expertise, we do very well through the most common challenges. Shipping delays do happen for various reasons including weather and supply chain issues, and if the product is late in arriving, the buyer will have cause for dissatisfaction. AMS is top notch when it comes to shipping, and due to our relationship with the major carriers and our expertise, shipping delays are infrequent.
Some other fulfillment challenges could be due to inventory errors or mismanagement. These things do happen, although very rarely at AMS. Other challenges could be due to inefficiency, problems in handling returns and customer service. We know that eCommerce sellers do have to deal with these challenges and we can honestly say… not at AMS. AMS clients can rest easy knowing that their fulfillment service will be efficient and accurate, and their customers will be well served by AMS’ customer service team.
What Sets AMS Fulfillment Apart
When we ask what sets AMS apart from others, several things come to mind. We have talked about our experience and years in the business, and these things have led to the following:
Commitment to Accuracy – From the time our client’s inventory arrives at the appropriate warehouse to the delivery into the hands of the buyer, we keep track of every SKU.
Technology & Innovation – How do we keep track of every SKU? We do it with a proprietary warehouse management system and an inventory management system that gives our teams and our clients real-time data.
Scalability – We have the capacity to handle fluctuations in demand, whether an increase in inventory or a decrease. AMS is able to scale with our clients, providing the space to grow and expand.
Customer Service Excellence – Our customer service team offers person to person communication and support for our clients’ customers. We not only are able to serve our clients’ customers, we expertly serve our clients as well. AMS takes pride in our Client Services team. This Team communicates with and serves our clients as if we are a partner in their business.
Sustainability Initiatives – AMS’s commitment to eco-friendly fulfillment practices is very much respected and appreciated by AMS’ clients. Recycling is very thorough, keeping as much out of the landfill as possible, including stretch plastic. AMS provides and offers biodegradable packaging to our clients and every effort is made to reduce energy use in our warehouses and offices.
Compliance Expertise – AMS is expert at meeting regulatory requirements with regard to storage and shipment of the products of our clients including hazardous goods and international shipment.
How to Get Started with AMS Fulfillment
It is easy to get started with AMS! Potential clients can go to the AMS website and click on the “Let’s Connect” tab [https://www.amsfulfillment.com/quote/]. There is an inquiry form as well as the AMS phone numbers, (800) 931-4267 and (661) 775-0611. Our experts will respond, answer questions and open the door to getting started.
Conclusion
As readers have seen, AMS Fulfillment is truly a full-service fulfillment company with more than 20 years of experience. We know the order fulfillment process and we are top notch at receiving, warehousing, order fulfillment with all of its nuances, and return management.
We provide advanced technology, automation, multi-channel fulfillment, customizable packaging, inventory management, scalability and flexibility, B2B and B2C expertise, a top-notch Client Services team and the benefit of our sustainability efforts. AMS is a B Corporation, and this sets AMS apart as a fulfillment service that puts people before profit.
