What is warehouse fulfillment and how can SMEs benefit from it?

admin July 25, 2020

Warehouse fulfillment refers to the use of a logistics system to control the receipt and dispatch of goods while managing inventory to ensure a smooth business operation. In other words, in a self-owned or leased warehouse, various goods are stored and kept, loaded and unloaded, moved and distributed with the condition of the goods being impeccably maintained. This is then classified and recorded according to quantity and quality.

A good Fulfillment system should be integrated into a business’ entire sales system while remaining linked and coordinated with other logistical activities.

The basic functions of fulfillment management

The basic process of fulfillment involves the receiving, shipping and inventory-taking of items. This is then followed by sorting, packaging, distributing and information processing. Additionally, a modern fulfillment management system will use advanced technology to utilize the warehouse space.

The significance and advantages of an order fulfillment system

In an era of ever-rising labour and warehouse rental costs, it is critical for businesses to improve both the quality and efficiency of their transportation logistics. Through an efficient and integrated fulfillment system, businesses will enjoy the following benefits:

1. Improved efficiency and flexibility in the distribution of goods
  Through an improved fulfillment system, businesses can reduce periods of inactivity while waiting for raw materials and, therefore, shorten the purchase cycle. An improved fulfillment system also significantly improves the accuracy of shipping, which increases efficiency and avoids production delays. Most importantly, it provides businesses with the flexibility needed to quickly respond to market changes.
2. The ability to make use of inventory data
  An order fulfillment system, linked to a warehouse management system, creates a large amount of inventory and order data. Through establishing a database, businesses can have a clearer overview of responsible parties across the fulfillment process. If something goes wrong, the responsible party can easily be identified by examining records and transaction logs, hence improving administrative efficiency.
3. Optimization of warehouse space
  The biggest weakness of SMEs in order management is that their volume of restocking items and shipments are different each month. Frequently additional space will be needed during special promotions and/or anniversary sales, while in a fixed-sized warehouse, there will be underutilized space during low seasons.

With a third-party fulfillment system, less time and labour is needed for inventory-taking. Additionally, unoccupied warehouse space can be better utilized, increasing a business’ overall flexibility.

Boxful Fulfillment allows SMEs to adjust the size of their warehouse rental space on a monthly basis according to differing marketplace dynamics. This gives businesses the flexibility to pay less if they require less warehouse space during quiet months. All you need to do is send us a confirmation message one day in advance and Boxful will arrange all the necessary work for you, helping you save on warehouse rental and transportation costs.