Businesses that sell products make use of order fulfillment to deliver and manage products. This distribution process can be a simple mail room in an office or a large warehouse with thousands of products. It's a complex process that just gets more complicated with business growth.
Several types of order fulfillment exist. The first is ETO, or engineer-to-order. This type of order fulfillment describes the process of designing a product by customer specifications, and then shipping it off to the customer who put in the order. An example would be with a specialized jet plane. With enough money, one can have a jet plane engineered to order according to specific guidelines.
Not all the products you buy will be shipped to you. You probably already have computer programs, games, and applications that you paid for over the Internet. This is another type of logistics operation that is known as digital copy. Managing digital downloads with things such as piracy in mind is a difficult process that must be handled with attention to detail.
You can imagine the tough time that some retailers have in guessing what their supply and demand will be. This is a classic tale of made-to-stock logistics. In this operation, a retail store will try to forecast a demand for the product and buy it in advance. Whether or not the product actually sells is the defining moment. A proper forecast will avoid buying too much or too little inventory. New DVD releases are an example of MTS services that are used quite frequently.
Order fulfillment can also include returns of a product. Returns on a product are governed by the rules set by the business who sold the product. It's best to have a rock-solid plan on what you will accept and to cover any loopholes. Perishable items and things such as underwear are examples of items you wouldn't want to accept. A logistics company will be able to find the best possible way of handling the returns, shipment, and replacement if necessary.
Inventory is tracked in every business to calculate supply and demand, make forecasts, and to quickly find items when they must be shipped. Large warehouses will have electronic tracking systems to make the process easier. With the proper programs in place, finding a product and shipping it out only takes a matter of minutes even in a large warehouse. Compare this to looking at paper records and searching without confidence.
Closing Comments
Order fulfillment is a service that is best expedited through the use of a third party logistics company. These services are found in every major city, and even in some smaller locations where business is conducted. Review several companies and take them up on a free consultation to see what they can do.
Several types of order fulfillment exist. The first is ETO, or engineer-to-order. This type of order fulfillment describes the process of designing a product by customer specifications, and then shipping it off to the customer who put in the order. An example would be with a specialized jet plane. With enough money, one can have a jet plane engineered to order according to specific guidelines.
Not all the products you buy will be shipped to you. You probably already have computer programs, games, and applications that you paid for over the Internet. This is another type of logistics operation that is known as digital copy. Managing digital downloads with things such as piracy in mind is a difficult process that must be handled with attention to detail.
You can imagine the tough time that some retailers have in guessing what their supply and demand will be. This is a classic tale of made-to-stock logistics. In this operation, a retail store will try to forecast a demand for the product and buy it in advance. Whether or not the product actually sells is the defining moment. A proper forecast will avoid buying too much or too little inventory. New DVD releases are an example of MTS services that are used quite frequently.
Order fulfillment can also include returns of a product. Returns on a product are governed by the rules set by the business who sold the product. It's best to have a rock-solid plan on what you will accept and to cover any loopholes. Perishable items and things such as underwear are examples of items you wouldn't want to accept. A logistics company will be able to find the best possible way of handling the returns, shipment, and replacement if necessary.
Inventory is tracked in every business to calculate supply and demand, make forecasts, and to quickly find items when they must be shipped. Large warehouses will have electronic tracking systems to make the process easier. With the proper programs in place, finding a product and shipping it out only takes a matter of minutes even in a large warehouse. Compare this to looking at paper records and searching without confidence.
Closing Comments
Order fulfillment is a service that is best expedited through the use of a third party logistics company. These services are found in every major city, and even in some smaller locations where business is conducted. Review several companies and take them up on a free consultation to see what they can do.
