American Western Distribution

Why Order Fulfillment is So Important to Your Business

Companies often feel like the hard work is done once they get someone to place an order. After all, the money is in the bank, and that is what business is all about. The truth is, the order fulfillment process is one of the most important aspects of running a business. If a company does not have proper order fulfillment services in place, they will not stay in business for very long. That’s why it is incredibly important for businesses to analyze their warehouse fulfillment processes to make sure that everything is up and running as it should.

Fulfillment Matters to Customers

According to a Bain/Mainspring study, customers choose vendors based on the performance of their product fulfillment service. Once a company wins someone over with strong order fulfillment services, they often keep that customer for the long term. This is good news for businesses that want to make the big bucks. It is estimated that vendors spend around $50 to acquire a new customer. They don’t have to spend money to woo repeat customers, though, and repeat customers typically spend more on future purchases than they spend their first time shopping with a company. That means that companies who have a solid product fulfillment service in place can make a lot of money after that initial $50 investment.

Strong Order Fulfillment Reduces Inventory

Companies that have a strong product fulfillment service in place can manage their inventories more effectively. This helps them cut costs. They ship items out immediately and keep track of all shipments. Then, they know what products they need to order. This helps them run a much more efficient and profitable business. It also helps them continue to get products out to customers in a timely fashion.

Keeps Money Flowing

The order fulfillment process keeps money flowing into a business. If there is a holdup in the chain, the flow of money will stop. This makes it impossible for companies to pay employees, manufacture new products, and provide storage for their inventories. With that in mind, it is important that companies spend time on their warehouse fulfillment strategies.

Order fulfillment services keep companies in business. It is essential that companies have a strong warehouse fulfillment plan in place so they can optimize their profits. Otherwise, they will let their competitors take money right out of their hands.

Posted on Tuesday, June 7th, 2016 at 1:21 pm and is filed under Fulfillment.