Home3 Minutes to Understand What Is Order Fulfillment Process

With the growth in demand of cross-border eCommerce in Malaysia for import-export, the order fulfillment process and procedure set by the logistics providers are continuously improving to achieve maximum efficiency. When we are talking about order fulfillment, it is most closely related with eCommerce fulfillment. In the Malaysian cross-border eCommerce industry, goods shipped from businesses are the most commonly dealt with.

SnT Order Fulfillment Process

Inbound

inbound process

  1. Stock deliveries from suppliers are received on a regular basis.
  2. Once the received stock has been unloaded from the trucks, their amounts and product types (SKU codes) are checked for quality and tallied before being keyed into the electronic inventory system (eHub).
  3. After being keyed into the system, storage locations are allocated and the received stock is stored.

Outbound (B2C)

outbound process

  1. An order is placed on the marketplace, for example Shopee, Lazada, Zalora or a Brand.com.
  2. Order received is immediately reflected in our system through integration with marketplace platforms.
  3. Picker that is equipped with a scanner will proceed to pick and scan the items.
  4. Once picked and scanned, the inventory will be updated on a real-time basis.
  5. Picked items will be brought over to a QC (Quality Control) table for a QC process before being packed and ready for delivery.

Orders can then be tracked under our eTrax system, where it provides live updates on the whereabouts of the parcel and the time when the parcel has been delivered.

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Product Return Process in Order Fulfillment Process

Apart from receiving new shipments from businesses, a small portion of goods that are being received would be the returned orders from the consumers back to the businesses. This is a common case, mostly due to product conditions or others. In short, the order fulfillment process is simply the process that is carried out from the moment an order is placed up until it reaches the consumer (who placed the order).(Shipbob, n.d.).

order fulfillment process/

This process consists of Warehouse Management (incoming and storage), Order Processing (pick and pack) and Delivery (shipping).

When an order is placed at an eCommerce store, the shipping and delivery details are usually set up beforehand. The information provided by the buyer (consumer) would be sent to the business where they will share the details with either an integrated logistics provider of the eCommerce site or in most cases, a third-party logistics company (3PL) that specializes in cross border logistics.

5 Steps in Order Fulfillment Process

1. Receiving

Receiving refers to the acceptance and storage of the incoming goods at the fulfillment center. The initial process of what the logistics provider would typically go through after receiving an order is checking the stocks to ensure the received orders’ stock count are accurate and are as stated in the order sheet. Then, there will be a pre-inspection to check the condition of the orders whether they are damaged or in a good shape and send a report to the sender if necessary.

2. Storage of The Inventory

The received inventory then will be scanned or keyed in on stock keeping units (SKU) to record and sort them out by locations, number of sales and total volume of orders. If no SKUs are attached, the logistics provider would be required to attach their own SKU to the order for stock keeping and tracking purposes. After the process is completed, the orders would be stored in bins or shelves according to SKU in order to easily organize and categorize them. This will ease up and help the next step of fulfillment which is picking and packing to be done faster.

3. Picking

At the time we receive an order placed online, it starts being processed. The products will be prepared to be shipped, beginning by picking them accordingly from shelves or bins by the warehouse operators (this also applies to the process of returning orders).

4. Packing

By the end of the picking process before proceeding to the next step, we will run 1 round of Quality Control (QC). After the products are being picked, the warehouse operators will pack the goods by wrapping them using suitable materials like poly bags, boxes, bubble mailers, packing tape, air fills or bubble wraps. This is to ensure the protection that the products will have during the transit to the shipping station.

5. Shipping

The packed goods are now being moved to a staging area where orders are weighed and prepared for shipment. Most cross-border logistics fulfillments in Malaysia are being transported by sea freight, which is more of an economical option but it takes a longer time to complete and to reach the customers. Meanwhile, a quicker but more costly shipping method that is being used by cross-border logistics providers would be air freight. Typically, businesses provide shipping options to the consumer and shipping fees are applied and/or discounted where it is due (eFulfillment service, 2013)

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References:-

  1. https://www.shipbob.com/ecommerce-fulfillment/#:~:text=Ecommerce%20fulfillment%20is%20the%20entire,to%20the%20customer’s%20shipping%20destination.
  2. https://www.efulfillmentservice.com/2013/01/what-is-order-fulfillment/
  3. https://learn.g2.com/order-fulfillment