Order Fulfillment Entrepreneurs, Order Fulfillment, Warehousing, WSJ Article
Fulfillment warehousing services are on the rise. Entrepreneurs with growing business started in their garages are finding that it saves them money to outsource their warehousing and shipping to a 3rd party fulfillment company. The below article from the Wall Street Journal discusses the benefits to small companies of taking advantage of fulfillment warehouses.
ProPack has been doing order fulfillment for 20 years and is a proud member of this exciting and growing industry.
To find out more about ProPack’s fulfillment operations please visit us at www.propack.com.
Order Fulfillment 3PL, Batch Shipping, Order Fulfillment
The standard model for order fulfillment at a third party logistics warehouse is to receive, pick, pack and ship orders individually. The client transmits an order to the fulfillment warehouse, which in turn ships out the order and bills accordingly. Each order is treated as a separate unit of work, and efficient process flows are followed to ensure that competitive rates can be offered. This method is used for clients with many different SKUs (Stock Keeping Units) and those whose orders are rarely identical.
However, for clients shipping identical items hundreds of times per day, batch shipping can be invoked to speed up the process and thus save the client money. The advantage with batch shipping is that the order process is streamlined: items are packaged in bulk, focusing on just the packaging process. Shipping labels are printed out in the hundreds or thousands all at once. Then the packages are labeled and shipped out. This is all done in two or three areas of the warehouse specifically designed for the batching process. This efficiency leads to vast improvements in the average time taken to get an order out the door.
Batch shipping does not work for all client/inventory scenarios, but where one or several SKUs are used on several hundred shipments per day, batching can lead to significant savings for the client.
At ProPack, we’ve developed our own batch shipment technology to better serve our clients. Our batches can be highly flexible, with different SKUs, shipping service levels and charges. Through batching we can improve our processing several times over and offer better rates to those clients using the service. Our custom technology for batch shipping allows us to reduce costs and add value for our clients.
Learn more on our website at www.propack.com.