7 Common Challenges of Order Fulfilment and How to Overcome Them

Have order fulfilment issues? You’re not alone.

Order fulfilment issues include inventory mistakes, picking and packing errors and shipping delays. This article breaks down each of these common challenges of order fulfilment and gives you the solutions. Improving the customer experience through personalised packaging, easy ordering processes, efficient returns management, and prompt delivery is crucial to standing out in the competitive eCommerce market.

Takeaways

• Proper inventory management including tracking and real-time updates is key to preventing stockouts and overstocking and a smooth order fulfilment process.
• Technology such as warehouse management systems and automated picking and packing can reduce errors, costs and fulfilment time.
• Integrating multiple sales channels through one order management system gives you visibility and control over inventory, orders and customer data to achieve better order fulfilment and customer satisfaction.

Common Challenges of Order Fulfilment

1. Inventory Management

Order fulfilment relies heavily on inventory management and it’s the foundation for everything that follows. Being able to maintain accurate inventory levels can mean the difference between a happy customer and a lost sale.

Maintaining the right stock level to prevent stockouts and overstocking requires a fine balance and requires precision and foresight. Inventory management software that integrates with all sales channels can give you real-time visibility and auto-update stock levels to make this task easier.

Common issues include order inaccuracies, shipping and handling charges and customer loyalty. Human error, supply chain disruptions and s impact order fulfilment. For example, poor preparation for seasonal demand can result in overstocking or understocking which affects order fulfilment efficiency and creates fulfilment challenges.

An order management system (OMS) with pre-built integrations can connect all sales channels from one central platform, notify users of new orders and sync stock levels with online marketplaces. This kind of system can also batch pick by grouping ‘batch-able’ orders and reduce foot travel for warehouse operatives.

Having visibility of inventory movement and quantities across fulfilment locations is key to inventory control as it allows you to optimise operations and meet customer demand. Standardising product naming conventions and inventory management processes can help you control inventory.

Datapel is a tool that eliminates manual tasks and gives you real-time visibility of the fulfilment process. It also simplifies inventory management and enhances fulfilment processes. Tackling these issues will get you a smoother order fulfilment process and happy customers.

Inventory Accuracy

A smooth order fulfilment process is built on accurate inventory data. Inventory discrepancies can lead to accepting orders based on the wrong stock resulting in backorders and longer lead times. Standardising processes and advanced inventory technology is a key to tackling these issues.

These systems can improve inventory accuracy so the data reflects true stock levels and prevent fulfilment challenges.

Stock Availability

Having stock available is another key to order fulfilment. Building strong relationships with your suppliers and having contingency plans can help mitigate supply chain disruptions. Managing inventory across multiple channels efficiently prevents stockouts and over-ordering.

Syncing inventory means backordered items are tracked and fulfilled when available and customers are kept informed and happy.

2. Picking and Packing Errors

Customer satisfaction is impacted by the picking and packing stages which are critical in the order fulfilment process. Errors in these stages can result in delays, returns and unhappy customers. Common mistakes include misspicks due to human error, paper-based processes that increase the margin for error and lack of order prioritisation.

Batch picking is a process where multiple similar orders are picked at the same time, it speeds up the process by eliminating multiple trips to the same picking location. Technology such as warehouse management software and barcode scanners can simplify these processes and improve accuracy and efficiency.

Operational costs can spiral and fulfilment deadlines can be missed due to inefficient picking processes, especially during peak periods. Labour costs are a big issue, labour accounts for 50-70% of the warehouse budget. Picking off paper lists can result in:

• Lost or unfulfilled orders
• Inventory records are not updated automatically
• Redundancy in order picking especially in larger warehouses resulting in picking extra products

Automated systems can optimise pick routes and packing processes and reduce overall fulfilment time.

Packing mistakes such as using the wrong packaging materials can result in product damage in transit and require replacements and refunds. Over-packing increases material and shipping costs and under-packing results in damaged goods and returns. Using the right materials and methods in the packing process will prevent these issues and keep customers happy.

Inefficient Picking Processes

Labour-intensive picking processes can blow operational costs and miss fulfilment deadlines, especially during peak periods. Labour costs are a big issue, labour accounts for a big part of the warehouse budget. Picking off paper lists can result in lost or unfulfilled orders and doesn’t update inventory records automatically. Redundancy in order picking happens more often in larger warehouses where multiple people are handling the same order resulting in mistakes like picking extra products.

Bad picker routes like picking one order per run wastes time and resources and delay order fulfilment. Automated systems can optimise pick routes and packing processes and reduce overall fulfilment time. Investing in an automated storage and retrieval system (AS/RS) can save floor space and improve putaway and picking processes.

Packing Mistakes

Packing mistakes such as using the wrong packaging materials can result in product damage in transit and require replacements and refunds. Over-packing increases material and shipping costs and under-packing results in damaged goods and returns.

Using the right materials and methods in the packing process will prevent these issues and keep customers happy.

3. Shipping Issues and Costs

Shipping is critical to meet customer expectations and satisfaction. Consumers today expect delivery services to be fast, free and flexible so supply chains need to be efficient and transparent. An order management system helps manage courier integrations and deliveries by providing automated shipping updates, real-time tracking and centralised management of courier relationships.

Moving to a multi-carrier strategy for shipping orders has benefits such as increased flexibility, cost savings and faster delivery times. Noncompliance with carrier regulations can result in delays or refusal of shipments. This can complicate the fulfilment process.

Choosing the right carrier is key in eCommerce order fulfilment because last-mile delivery costs account for a big chunk of total shipping costs. Fast and cost-effective shipping options is a major differentiator for top eCommerce brands.

Smart shipping rules can automatically determine which courier service to apply to orders based on parcel weight, order value, destination and specific product rules. A multi-carrier strategy benefits eCommerce businesses by having access to multiple carriers, simplifies and speeds up delivery time and automatically determines the best carrier for the job based on smart rules.

Shipping internationally adds another layer of complexity. Cross-border eCommerce sales are expected to account for a big chunk of all online sales. Fashion, consumer electronics and hobby items are the most commonly purchased across borders because they are light and small.

After Brexit, additional regulations were implemented for shipping to and from the EU. These regulations now require a lot of paperwork. The introduction of the Import One-Stop Shop (IOSS) has simplified the process of selling to the EU. This allows multichannel retailers to expand their international operations further.

Carrier Selection

Carrier selection is key in eCommerce order fulfilment because last-mile delivery costs account for a big chunk of total shipping costs. Fast and cost-effective shipping options is a major differentiator for top eCommerce brands. Smart shipping rules can automatically determine which courier service to apply to orders based on:

• parcel weight
• order value
• destination
• specific product rules

A multi-carrier strategy benefits eCommerce businesses by:

• Having access to multiple carriers
• Simplifies and speeds up delivery time
• Automatically determines the best carrier for the job based on smart rules.

International Shipping

International shipping adds another layer of complexity for many eCommerce businesses. Cross-border eCommerce sales are expected to account for a big chunk of all online sales. Fashion, consumer electronics and hobby items are the most commonly purchased across borders because they are light and small.

4. Order Processing Delays

Order processing delays can result to:

• Customer dissatisfaction due to longer wait time for order receipt
• Ripple effect, affecting subsequent steps like picking, packing and shipping
• Higher return rates, adding to overall fulfilment delays and costs
• Processing delays as stockouts or overstocking issues are resolved
• Verifying customer information, confirming payment and preparing orders for picking and packing, affecting customer satisfaction.

The risk of processing errors can be minimised by having efficient verification systems that ensure customer details and payment information are accurate. Timely order processing and smooth fulfilment timeline depend on fast payment confirmation.

Automation in order processing can reduce manual errors which can streamline the fulfilment process. Using automation tools and equipment like pallet flow rack systems and forklift trucks can speed up warehouse processes and fast-track the fulfilment process.

Order processing can be made more accurate by:

• Order fulfilment software
• Monitoring and improving performance metrics
• Automating the order processing to reduce manual errors
• Using tools and equipment like pallet flow rack systems and forklift trucks to speed up warehouse processes

By doing these you can streamline your eCommerce fulfilment services and the fulfilment process and order processing.

Verification and Payment Confirmation

The risk of processing errors can be minimised by having efficient verification systems that ensure customer details and payment information are accurate.

Fast order processing and smooth fulfilment timeline depend on fast payment confirmation.

Automation in Order Processing

Automation in order processing can reduce manual errors which can streamline the fulfilment process. Using automation tools and equipment like pallet flow rack systems and forklift trucks can speed up warehouse processes and fast-track the fulfilment process.

Order processing can be made more accurate by using order fulfilment software and monitoring and improving performance metrics.

5. Return Handling Issues

Efficient returns management is key to customer satisfaction and avoiding negative reviews. 80% of consumers rank returns as highly important to their overall order experience. Businesses can’t afford to ignore this part of the fulfilment process. But return handling has its own set of challenges, long processing time, unclear return policy and inefficiencies in restocking returned items. Addressing these issues can maintain customer loyalty and prevent negative reviews.

A major pain point for customers is:

• lack of communication in tracking returns,78% of customers rate their most recent return experience as inconvenient
• generous return policy while customer friendly can strain eCommerce resources across different departments
• eCommerce return fraud like wardrobing and product swapping is a growing concern that businesses need to address
• offering fast refunds is highly valued by customers, some are willing to pay for faster refunds.

Efficient returns management can streamline the reverse logistics process, reduce calls to call centres and increase customer satisfaction. Implementing trackable return labels, offering free home pick-ups and setting clear expectations for refunds can improve the return experience for customers. Prioritising returns by value can fast-track the restocking of profitable items, so high-value items are returned to inventory quickly.

Returns Management

Implementing trackable return labels can reduce calls to call centres and reverse logistics. Some of the strategies to consider:

• Offering free home pick-ups to reduce the time it takes for customers to return items
• Tracking eCommerce returns with smart labels to alert the operations team about incoming returns so processing and restocking can be faster
• Setting clear expectations about the time to credit in return policy to increase customer satisfaction by providing transparency and reducing uncertainty.

Prioritising returns by value can fast-track the restocking of profitable items, so high-value items are returned to inventory quickly. This can recapture revenue more efficiently and minimise the impact of returns on overall inventory and operational costs.

Restocking Returned Items

Restocking returned items quickly can prevent revenue loss and reduce additional operational costs and lost sales. The time lag between receiving a return and restocking it is a major challenge for eCommerce operations and products can be out of the sales cycle for extended periods.

Prioritising restocking high-value returns can recapture revenue more efficiently and get profitable items back in the sales cycle quickly.

6. Managing Multiple Sales Channels

To effectively maximise sales in today’s eCommerce landscape, it is essential to manage multiple sales channels to reach a wider customer base. Omnichannel fulfilment requires businesses to cater to different platforms, online marketplaces, DTC websites and physical stores.

But this comes with its own set of challenges, managing inventory, shipping preferences and returns across different platforms. Centralised order management integrates the sales process with inventory, ordering and fulfilment to have complete control and visibility.

Multichannel listing software in order management systems provides:

• Complete visibility and control of all orders in one place
• Automated alerts for new orders
• Stock levels updated across all eCommerce channels automatically
• Inventory management efficiently
• Prevention of overselling and stockouts

This level of integration is key to having consistent inventory data and to fulfil orders efficiently.

Supply chain technology offers:

• Better visibility of shipping status
• Clear chain of custody tracking for international shipments
• Proactive communication throughout the order fulfilment process to manage customer expectations and build trust.

Order Tracking

Having multiple sales orders in one platform gives customers a better experience by giving them detailed insights into the order journey from warehouse to delivery. Real-time order tracking is a key feature of a multichannel order management system, customers can track their orders and get updates at every stage of the fulfilment process. This transparency will improve customer satisfaction, manage customer expectations and build trust.

Supply chain technology offers:

• Better visibility of shipping status
• Clear chain of custody tracking for international shipments
• Proactive communication throughout the order fulfilment process to manage customer expectations and build trust.

Inventory Synchronisation

Synchronising inventory across all channels is key to having real-time visibility and reducing overselling and stockouts. Consistent stock data across all channels is important to avoid discrepancies and to maintain customer trust.

A robust omnichannel fulfilment platform allows businesses to integrate orders, inventory and customer data across channels, to have a smooth and efficient order fulfilment process. Datapel, an OMS software solution can integrate with multiple WMS systems, sales channels and inventory systems. This integration allows users to have all the data in one place.

7. Warehouse Issues

Solving common warehouse problems, a part of the order fulfilment process can boost efficiency. To avoid issues like wrong order picking, lost orders and damaged reputation warehouse organisation is key. A messy warehouse layout can waste space and increase labour costs as employees spend more time searching for items. Manual stock control systems become more error-prone as more customers and orders are added, making it hard to scale and manage.

To handle the entire eCommerce order fulfilment process in-house requires more staff, more space and more technology. This makes it hard to scale without big investment and planning. Lack of accountability in the picking process makes it hard to measure staff efficiency and track order progress. Barcode scanning software can improve stock checks, inventory putaway and picking accuracy, pallet locations, and racking and inventory locations.

Inventory traceability is simplified by using product usage and stock flow reports. This will allow you to track stock movement in the warehouse and order allocation.

How to optimise warehouse layout:

1. Review and adjust item locations regularly.
2. Minimise human memory for item retrieval.
3. Use floor and vertical space efficiently.
4. Put high-demand items near the packing area for faster fulfilment.
5. Easy access for employees and safe inventory storage.
6. Create picking routes to reduce order preparation time and increase productivity.

By doing this you will improve warehouse efficiency and reduce fulfilment delays and errors.

Poor Layout and Organisation

The fulfilment process can be slowed down by a disorganised warehouse layout that leads to poorly managed item locations and inefficient use of space. Fixed warehouse locations can’t put high-demand items near packing areas, resulting in inefficiencies. An optimal warehouse layout should maximise floor and vertical space for easy employee access and safe inventory storage.

Relying on human memory for item locations takes more time to train new staff and can lead to inefficiencies. Delays in order fulfilment and wrong shipments can happen because of misplaced items. Inefficient picking routes also increase order preparation time and overall productivity will suffer. To optimise warehouse layout review and adjust item locations regularly and implement systems that minimise human memory for item retrieval.

Scalability Issues

When operations can’t keep up with business growth warehouse scalability issues arise and inefficiencies in managing more orders. Businesses need to scale efficiently to handle more sales channels, products and orders while managing costs and service levels.

Tech-enabled delivery orchestration software can optimise routes and leverage omnichannel fulfilment. An OMS can create an Advanced Shipping Notification (ASN) within the platform so the warehouse can track incoming deliveries. A WMS can have a 3D model of the most efficient warehouse layout to organise the layout.

Tech can help businesses scale and handle more orders. Implementing tech-enabled delivery orchestration software and warehouse management systems can optimise routes, and leverage omnichannel fulfilment and overall warehouse efficiency. An OMS can create an Advanced Shipping Notification (ASN) within the platform so the warehouse can track incoming deliveries. A WMS can have a 3D model of the most efficient warehouse layout.

Summary

Order fulfilment is the key to a successful eCommerce business. By solving inventory organisation issues, picking and packing errors, shipping issues, order processing delays, return handling difficulties, multiple sales channels and warehouse management problems you can improve the fulfilment process. By using advanced technology, optimising processes and communicating clearly with customers you can deliver on time and accurately and increase customer satisfaction and loyalty. Try these to overcome fulfilment challenges and grow your eCommerce business.

FAQs

How do I improve my inventory accuracy?

Implement standardised processes and advanced inventory management technology so the data reflects true stock levels and no fulfilment issues.

What are the benefits of multi-carrier shipping?

Multi-carrier shipping gives you more flexibility, cost savings and faster delivery times and allows you to auto-select the best courier for each shipment. Try it now.

How can automation help in order processing?

Automation can reduce errors, streamline order processing and increase accuracy and faster warehouse operations and overall efficiency.

Why is returns management important?

Returns management is important because it helps maintain customer satisfaction and prevent negative reviews by improving the return experience with trackable return labels, free home pick-ups and clear refund expectations.

How do I manage inventory across multiple sales channels?

You can manage inventory across multiple sales channels by using a central order management system and multichannel listing software. This way you have complete visibility and control of all orders in one place and consistent inventory data and prevent overselling and stockouts.