- by Best Inc.
Optimizing your eCommerce fulfillment process is essential in ensuring the success of your business as it can impact the customer experience and your business operations. If you are wondering how you can increase the efficiency of your business, we have curated several tips that you can use to improve your fulfillment process.
Understand Your Order Fulfillment Cycle Time
Understanding the order fulfillment cycle time is one of the first steps you should take when optimizing your eCommerce order fulfillment process. This will help you gain valuable insight into how effective your current process is and how it is currently affecting your customer satisfaction rate. While there are many factors that will inevitably lengthen your fulfillment time, such as international shipping, you should aim to keep the fulfillment cycle time as low as possible to improve customer satisfaction.
Here are some metrics to look at when understanding your order fulfillment time. From here, you can identify the parts of your eCommerce fulfillment process that need improvement. They include:
- Promised customer order cycle time
- Actual customer order cycle time
- Cash to cash cycle time
- Supply chain cycle time
Implement an Effective Return Policy
Your eCommerce order fulfillment process does not end when the customer receives the order. It only ends when the customer is satisfied with the order. Thus, it is important for any eCommerce business to consider instances when the customers want to return their order, exchange a product, or request for a refund. Identifying the needs of customers will help you implement an effective return policy for their satisfaction. Often, an effective return policy will also motivate customers to make an order.
Set Aside Safety Stock
To minimize the risk of running out of stock, you should always set aside safety stock. Having safety stock counters variation in demand and helps to cushion sudden spikes in orders. However, it can get tricky when determining the level of safety stock to hold while minimizing storage costs and considering product expiration dates. To accurately calculate for the optimal level of safety stock, you should use statistical methods that refer to past data to measure demand spikes.
Automate Your Order Fulfillment Processes
Manual data entry work is one of the most tedious and time-consuming parts of order fulfillment. For repetitive tasks like this, it will greatly benefit the business to invest in automation software. Not only will automation increase employee productivity, it will also reduce human error and increase operational efficiency. With the repetitive tasks out of the way, you can focus your efforts on the other aspects of order fulfillment to further satisfy the customers.
If you need help in optimizing your eCommerce order fulfillment process, finding an efficient and reliable eCommerce fulfillment partner is a great way to do so. Contact Best Inc. today for quotes and to find out how we can best support your business in eCommerce fulfillment.