Order Fulfillment Workflow: From Click to Doorstep

When a customer hits "Place Order," it triggers a cascade of actions that ultimately lead to a package arriving at their doorstep. Yet, many are unaware of the complex journey from that initial click to delivery. This process involves multiple steps that need careful coordination, and for new ecommerce sellers, it can quickly turn into a chaotic scramble. Here, we'll explore the full workflow of order fulfillment, breaking down each phase to help you streamline your operations and keep your customers satisfied.

The Order Fulfillment Timeline

The journey from order placement to delivery can be broken down into several key phases. Each phase has its own set of steps and time targets:

Order Processing: This involves receiving, validating, and fraud-checking the order. Ideally, this should take 0-30 minutes.

Picking: Locate and retrieve the items from their storage locations, typically taking 15-45 minutes.

Packing: Securely package the items, which should take about 5-15 minutes.

Labeling: Generate and apply the shipping label in 2-5 minutes.

Handoff: Get the package to the carrier, ideally on the same day or by the next morning.

Transit: The carrier moves the package, which can take 1-7 days depending on the distance and service level.

Delivery: The package reaches the customer, completing the final mile of its journey.

For domestic ground shipping, the total target from order placement to delivery is 2-5 business days.

Phase 1: Order Processing

Step 1: Order Received

Once an order is placed, it enters your system. For sellers on multiple platforms like Amazon, eBay, and Etsy, a multi-channel order management system can consolidate all orders into a single queue. This initial action triggers several automated processes:

• A confirmation email is sent to the customer.
• The inventory is updated to reserve items for this order.
• Payment authorization is verified.
• The order appears in your fulfillment queue, ready for the next steps.

Step 2: Order Validation

Before picking items, validate the order to ensure everything is correct:

• Payment Cleared: Ensure the authorization is successful. If not, hold the order and contact the customer.
• Address Valid: Validate the address through USPS or another carrier. If issues are found, flag the order for review and request corrections.
• Inventory Available: Check if the items are in stock. Decide whether to backorder or partially ship if not.
• Fraud Signals: Look for mismatched billing and shipping addresses or unusual patterns. Conduct a manual review if necessary.
• Special Instructions: Pay attention to any requests for gift wrapping or specific handling.

Address validation alone can prevent 3-5% of orders from bouncing back due to incorrect details, saving you reshipment fees and maintaining customer satisfaction.

Step 3: Order Routing

If you have multiple fulfillment centers, decide where to ship from based on:

Proximity to the customer to minimize shipping costs.

Availability of all items to avoid split shipments.

Capacity of the location to handle the order.

Labor costs at each location, if other factors are equal.

For businesses with a single location, this step is straightforward, as everything ships from one place.

Phase 2: Picking

Picking involves retrieving ordered items from storage, and it's where many fulfillment operations lose valuable time.

Picking Methods

• Single Order Picking: Ideal for fewer than 30 orders per day. It involves picking items for one order at a time, which can be slow but accurate.
• Batch Picking: Suitable for 30-200 orders daily, this method involves picking items for multiple orders in one trip, reducing walking time by 60-70%.
• Zone Picking: Effective for over 200 orders, this assigns pickers to specific zones, functioning like an assembly line.
• Wave Picking: Used for 500+ orders, this sophisticated method releases batches in waves, coordinated with carrier pickups.

Pick List Optimization

An optimized pick list should clearly indicate:

• The exact location to visit (aisle, shelf, bin).
• The specific items to pick (SKU, product name, image).
• The quantity needed.
• The order number associated with the items.

Organizing pick lists by location rather than order ensures an efficient path through the warehouse, minimizing random movements.

Common Picking Mistakes

Mistakes in picking can lead to costly errors. Common issues include picking the wrong item or quantity, damaging items during picking, or not finding items due to mislocation. Implementing barcode scanning can enhance accuracy from the industry average of 97% to over 99.5%, significantly reducing errors in high-volume operations.

Phase 3: Packing

With items picked, the next step is to package them securely.

Choosing the Right Package

Selecting the appropriate packaging is essential for protecting items while minimizing shipping costs:

• Soft Goods (Clothing): Use poly mailers, such as a 10x13 poly bag.
• Small Hard Goods: Opt for padded mailers, like bubble mailers.
• Fragile Items: Use corrugated boxes with void fill, such as air pillows.
• Multiple Items: Use right-sized corrugated boxes.
• Heavy Items: Double-wall corrugated boxes are best for items over 10 lbs.
• Liquids: Seal liquids in bags inside the box to prevent leaks.

The key is to use the smallest package that still ensures product safety, as extra space increases dimensional weight charges.

Void Fill Options

Different materials offer varying levels of protection and cost-effectiveness:

• Air Pillows: Cost-effective and recyclable, providing good protection.
• Packing Peanuts: Available in biodegradable options, offering good protection.
• Crumpled Kraft Paper: Recyclable and provides good cushioning.
• Bubble Wrap: Offers excellent protection but is less eco-friendly.
• Foam Inserts: Custom fit and reusable, providing excellent protection.
• Shredded Cardboard: An eco-friendly option made from recycled materials, offering fair protection.

The Packing Process

Select the appropriate box or mailer based on the item's size and fragility.

Line the bottom with void fill if using a box.

Place items centrally, away from the box walls.

Add void fill around and on top to prevent movement.

Include the packing slip and any marketing inserts.

Seal the package securely using the H-tape pattern for boxes.

Weigh the package for accurate label generation.

Packing Station Setup

An efficient packing station should have all necessary tools and materials within arm's reach, including a scale, label printer, tape gun, a variety of box sizes, void fill dispensers, and a bin for waste. This setup ensures that the packer can complete their tasks without unnecessary movements, maximizing efficiency.

Phase 4: Labeling

With the package sealed, the next step is generating and applying the shipping label.

Label Generation Workflow

Enter or automatically capture package dimensions and weight.

Select the appropriate shipping service based on delivery promises and cost.

Conduct rate shopping to find the best price among carriers.

Generate the label using carrier APIs, which also provide a tracking number.

Print the label using a thermal printer, which is the industry standard for speed and cost-effectiveness.

Apply the label on the largest flat surface of the package.

Rate Shopping Decision Matrix

When choosing shipping options, consider priorities such as cost, speed, and tracking capabilities. For instance, USPS Ground Advantage is cost-effective for packages under a pound, while FedEx or UPS offers faster delivery and better tracking for larger packages.

Label Printing Technology

Thermal printers are recommended for businesses shipping over 20 packages daily due to their speed and low per-label cost. They pay for themselves quickly and eliminate the need for ink replacements.

Phase 5: Carrier Handoff

Once labeled, your package is ready for handoff to the carrier.

Handoff Options

• Scheduled Pickup: Ideal for businesses shipping 10 or more packages daily. Cutoff times vary.
• Drop-off at Carrier Location: Suitable for 1-10 packages with cutoff times aligning with store closing.
• USPS Package Pickup: Free and suitable for any volume, aligning with mail carrier schedules.
• Carrier Retail Store: Best for occasional shipments, available during store hours.

Manifest / End-of-Day (EOD)

Create an end-of-day manifest after labeling all packages to inform the carrier of the expected number of packages and their tracking numbers. This step speeds up the pickup process and helps prevent package losses.

Phase 6: Transit

Once in the carrier's hands, the package undergoes several stages:

Origin Scan: Marks the package's entry into the carrier's network.

Sort at Origin Facility: Directs the package to the correct destination path.

Line Haul: Transports the package to the destination region.

Sort at Destination Facility: Prepares the package for local delivery.

Out for Delivery: The package is loaded onto a delivery vehicle.

Delivered: The package reaches the customer's door.

Transit Time by Service

Choose the appropriate service based on urgency and budget. Ground service typically takes 2-7 business days, while expedited options like Next Day Air cater to urgent needs.

Proactive Transit Monitoring

Active monitoring can prevent customer dissatisfaction. If a package lacks an origin scan within 24 hours, contact the carrier. If it remains stuck for over 48 hours, notify the customer of potential delays. Address any exceptions promptly to maintain trust.

Phase 7: Delivery

The final mile involves the carrier delivering the package to the specified location.

Delivery Confirmation

Various confirmation types can assure customers of delivery:

• Standard Tracking: Provides a delivery scan and timestamp.
• Signature Confirmation: Requires a recipient signature, ensuring delivery to the correct person.
• Photo Confirmation: Offers visual proof of delivery, available from some carriers.
• GPS Confirmation: Provides delivery location coordinates for added assurance.

Post-Delivery Actions

Even after delivery, follow-up actions are essential:

Notify the customer of delivery via email.

Trigger a review request a few days post-delivery.

Archive tracking data for analytics.

Log delivery performance metrics to identify areas for improvement.

Open a customer service window to address any issues or return requests.

Putting It All Together: A Realistic Timeline

Consider a well-managed order fulfillment workflow for a Tuesday order:

10:00 AM: Order placed, confirmation email sent.

10:02 AM: Payment verified, and address validated. Order enters the fulfillment queue.

10:30 AM: Items picked from the shelf.

10:40 AM: Items packed and sealed.

10:42 AM: Label generated, package ready for pickup.

10:43 AM: Customer receives a shipping notification.

2:00 PM: Carrier picks up the package.

8:00 PM: Origin scan confirms "In Transit" status.

Wednesday-Thursday: Package moves through the carrier network.

Friday 11:30 AM: Package out for delivery, customer notified.

Friday 2:15 PM: Package delivered, with photo confirmation.

Friday 2:16 PM: Delivery notification sent to the customer.

From Tuesday morning to Friday afternoon, the entire process takes three and a half days, ensuring a happy customer and a smooth operation.

Metrics That Matter

Tracking key metrics helps maintain an efficient fulfillment operation:

• Order-to-Ship Time: Aim for less than 24 hours to meet customer expectations.
• Pick Accuracy: Maintain over 99.5% accuracy to minimize costly errors.
• Pack Time per Order: Keep it under 5 minutes for labor efficiency.
• Label Error Rate: Target less than 0.5% to avoid reshipping.
• On-Time Delivery: Strive for over 95% to ensure customer satisfaction.
• Cost per Order Fulfilled: Monitor trends for profitability.

Efficient ecommerce operations treat fulfillment like a finely-tuned machine, continuously measured and optimized for improvement. Start by tracking these metrics, and you'll find opportunities for enhancement follow naturally.