The phrase ‘fulfillment automation’ can bring to mind dystopian images of robot-only warehouses and driverless trucks, but the reality is much more nuanced.
Automated fulfillment processes are gradually making their way into dozens of workflows across the supply chain, including order fulfillment, inventory management, warehouse management, and more.
Automatically routing customer orders to the fulfillment center closest to your customer? That’s eCommerce fulfillment automation at work. Processing returns at the click of a button? That’s automation, too.
We’re going to explore how 3PL partnerships can enable automated order fulfillment at scale – and where ShippingTree can help!
What is automated fulfillment?
Automated fulfillment is when various technology and software systems are integrated throughout the order fulfillment process to streamline the preparation of customer orders. With eCommerce businesses under pressure to meet rapid turnaround times to deliver orders fast, fulfillment automation offers a way significantly reduce inefficiencies in the order fulfillment process and eliminate many incidences of human error.
There are a variety of ways a fulfillment operation can integrate automation technology. For example, robots can accurately map picking sites in a fulfillment center and direct personnel to different SKUs using the most direct travel routes, which saves considerable time on each pick.
Over time, the data you gather from fulfillment automation will tell you not only the efficiency and cost savings you’re achieving, but also identify where slowdowns are happening that are limiting the speed of your fulfillment operation. This helps your eCommerce business to build a lasting competitive edge and scale effectively as you grow.
The benefits of automated eCommerce fulfillment
Better operational efficiency
Automating various order fulfillment processes speed up key workflows by removing delays and bottlenecks between different stages. For example, a software integration between your eCommerce platform and your warehouse management system ensures swifter order processing and pushing customer orders directly to your fulfillment center, rather than waiting for manual data entry. This could be the difference between an order making a shipping cut-off, or having to wait until the following day for shipment.
Moreover, automating fulfillment processes makes it possible for eCommerce businesses to eliminate repetitive tasks and manual tasks that take up valuable staff time, maximizing productivity and freeing those personnel up for more complex cognitive tasks that add value.
Plan for future demand
Understanding your business’s growth trajectory is the key to avoiding growing pains that impact customer satisfaction. Automated fulfillment can support scalability and reduce costs by avoiding the need to continually increase and train labor to keep pace with order volume. Automated order fulfillment can be easily scaled up or down to handle fluctuations in order volumes, such as during peak season or major sales events, meaning you aren’t leaving resources on the table during leaner periods.
Predictive analytics can also help analyze historical data to help manage demand accurately. For example, brands can adjust inventory levels to avoid stockouts or excess inventory and better manage warehouse space by viewing past quarters and understand where inefficiencies or poor forecasting created bottlenecks in the fulfillment process.
Improved customer satisfaction
eCommerce fulfillment automation speeds up the entire fulfillment process from order processing to the shipping process, helping brands to achieve speedier delivery and meet customer expectations for rapid shipping. Moreover, removing order uploads and other repetitive tasks from your fulfillment warehouse creates much more reliable and consistent workflows that minimize human error, meaning customers are more likely receive a ‘perfect order’ – orders that contain the right number of items, with the right paperwork, delivered on-time to the right address. In modern eCommerce, a perfect order is now the table stakes; without it, building customer loyalty is impossible.
How can automation streamline the order fulfillment processes
Inventory management
Automated inventory tracking and management provide eCommerce businesses with real-time visibility into inventory levels cross locations, which informs better inventory planning to prevent stockouts or excess inventory, which can hurting sales opportunities and affect storage capabilities. Being able to plan exactly when fresh inventory is arriving, how many units you have, and where best to store inventory in your warehouse increases your ability to optimize warehouse space, which frees up room for more stock and faster access to SKUs.
Order processing
Manually transferring orders to fulfillment centers via spreadsheets is slow and time-consuming, robbing your fulfillment operations of opportunities to fulfill orders as soon as they are placed. During busy periods like peak season, this can create bottlenecks and result in orders waiting in the limbo. Automated order processing ensures that orders are routed to the fulfillment center which is able to fulfill and ship to the customer in the fastest possible timeframe, improving customer satisfaction and keeping your sales channels moving.
Picking, packing, and shipping
Order picking and packing are notoriously manual aspects of order fulfillment, requiring warehouse staff to travel long distances around a warehouse or distribution center to pick SKUs and pack them according to the unique characteristics of each order. Automated picking and assisted picking is gradually making its way into fulfillment operations to save on physical labor costs and reduce the risk of injury, with guided vehicles (AGVs) and robots now able to pick items from shelves. AI and machine learning are also playing a larger role in the cartonization process, with software programs able to assist workers in choosing the right packaging to lower shipping costs and keep items safe in transit.
Returns management
Today’s customers expect swift returns and exchanges from online shopping – and will quickly grow frustrated if eCommerce brands cannot follow through with a seamless post-purchase experience. Manually processing RMAs and asking customers for additional information will bog down your customer support team and reduce bandwidth to handle more complex support tickets. Automated returns management via online portals allows for a self-service approach to the returns process This saves eCommerce businesses valuable time and resources, while also priorizing convenience and flexibility for the customer.
Why you should partner with a 3PL to access automated fulfillment
Setting up and maintaining the infrastructure necessary for fulfillment automation – including software platforms, robotics, conveyor belts, and more – is too time-consuming and expensive to be cost-effective for the majority of eCommerce businesses. Most brands simply don’t have the economy of scale to benefit from these investments
One of the biggest benefits of partnering with a fulfillment partner is that you can avoid these upfront costs. Because 3PL facilities are shared by multiple clients, they can spread the cost of an automated order fulfillment system and continuous improvements between their customers. You get to benefit from automation, but without the financial burden.
Automating the fulfillment process also allows you to focus on what your business does best. Investing time into marketing and sales initiatives, new product development, and the customer experience is vital for growing businesses to attract customers and build loyalty. Outsourcing automated fulfillment to a 3PL allows you to concentrate on these activities, instead of your fulfillment operation.
Automated fulfillment with ShippingTree
Seamless integrations
Whether you’re managing sales across multiple channels or leveraging a suite of business tools and platforms, your 3PL should be able to integrate seamless with your existing platforms. This can include your ERP, your returns management system, and your subscription tools.
ShippingTree offers robust integrations with major ecommerce platforms like Shopify, Brightpearl, and ReCharge. Plus, its well-documented, open API enables seamless data sharing and complete control over the types of data brands want visibility into.
Ecommerce businesses can easily filter and view company metrics, as well as receive standardized reports for products, order lists, inventory, billing, and more.
Real-time inventory management
Without real-time inventory management, brands are at the discretion of their fulfillment partner to keep them updated about low stock levels, stockouts, and inventory performance. Having a 3PL that enables instant, real-time visibility into inventory minimizes the amount of time requesting information and ensures accurate inventory management.
ShippingTree’s intuitive dashboard makes it easy for your team to keep an eye on every aspect of your fulfillment operation. Complete with an inventory snapshot, brands can easily identify when products are on hand, getting packed/in production, available for picking, and inbound to the warehouse.
Automated order processing
Fulfillment bottlenecks develop when orders stall and need manual intervention to keep things moving. When your 3PL uses an advanced order management system that can keep things moving automatically, orders will be routed directly to your warehouse the moment they’re placed – no manual steps required.
ShippingTree ensures that your orders are always moving to the next stage with powerful in-house software that guarantees rapid turnaround from order processing to delivery. Plus, shipments will always originate from the warehouse closest to your customers, so you save valuable dollars on shipping and get orders to your customer’s doorstep faster.
Customizable shipping method rules
ShippingTree’s platform empowers merchants to automate shipping method selection by setting custom rules based on specific conditions. For instance, merchants can prioritize faster shipping for urgent orders or choose cost-effective options for less time-sensitive shipments. Additionally, if certain carriers or service levels fall short of expectations, ShippingTree offers the flexibility to blacklist them.
Looking to learn more about ShippingTree’s automated order fulfillment? Get in touch with us today.
