A business that performs its own fulfillment -- or a business that performs third-party fulfillment such as a fulfillment house or fulfillment center -- takes control of the critical operations between point of sale and final delivery.
It then optimizes these inventory, picking, packing, and shipping operations to enhance efficiency and reduce costs. By performing inventory and fulfillment more efficiently, the business is not only able to fulfill more orders in less time but also limit the costs of every order, thereby making every order more profitable.
The business that can pick, pack, and ship most efficiently stands to win the most orders and derive the most value from them.
Inventory and fulfillment optimization also adds value for customers. Customers who have confidence they’ll receive an accurate, hassle-free order as quickly as possible are more likely to buy.
Many small and medium-sized businesses use models such as drop shipment that outsource fulfillment. While these models save on labor and facilities, they carry an opportunity cost: The business loses its ability to optimize orders.
Fulfillment houses and fulfillment centers step in here. Their value proposition is performing fulfillment with great efficiency, and selling that as a service to other businesses. Third-party fulfillment underscores the standalone value of efficient fulfillment.
Consider that some of the world’s most successful businesses are built almost exclusively on optimizing fulfillment operations. Some online retail giants have essentially replaced sales staff with ecommerce websites and instead dedicate resources to managing warehouses and picking, packing, and shipping better than the competition can.
Whether a business is controlling its own fulfillment or selling fulfillment as a service, efficient picking, packing, and shipping holds enormous value.
The business that can pick, pack, and ship most efficiently stands to win the most orders and derive the most value from them. And a Warehouse Management System helps a business pick, pack, and ship most efficiently.
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Essent is the leading provider of fully-integrated business management software solutions and services for process-intensive industries and the largest trading network for the promotional products industry. The Essent family of fully-integrated products and services combines best practices, business processes, software automation, and network communications to deliver unparalleled, unified business management solutions. Since 1980, Essent has offered the systems, service, software, and support critical to success in today's highly-competitive marketplace.