Technology has touched virtually every facet of business, including order fulfillment, from packaging to delivering goods to consumers. Technological advances allow e-commerce platforms like Shopify and Amazon to receive and deliver orders more efficiently.
Some technologies handle all the complex processes involved in order fulfillment, while others allow customers to track their orders. At the forefront of technology-driven order fulfillment processes are warehouse management systems (WMSs). A WMS is software that centralizes order fulfillment. It helps businesses manage their inventory for seamless order picking, packing, and processing.
Organizations can manage their warehouses without technology. However, it is much more labor-intensive. Someone needs to manage stocking, sorting, and tracking inventory. Therefore, technology saves time and space. Scanners and tags help organizations manage sorting more efficiently and accurately.
An order management system (OMS) helps companies track inventory and fulfill orders. It manages an e-commerce store’s ordering, processing, and delivery, boosting accuracy over manual methods. An OMS eliminates the need for human intervention in inventory management. As a result, it minimizes human error-related back-orders (out-of-stock products). An OMS also streamlines order fulfillment by putting all key elements in a single manageable platform. Thus, a business can track fulfillment in real-time from order to delivery.
Customer relationship management (CRM) software makes communication in order fulfillment easier. Like an OMS, a CRM communicates order information to a WMS. It allows customers to place an order and change order information such as shipping address and quantity. A CRM also facilitates seamless order returns.
Next, smartphones have impacted order fulfillment. Warehouse personnel use smartphones to review their pick lists. They scan product barcodes using the phone’s camera and take them to the appropriate packing stations. Then, scanners confirm the picks and match products with specific orders.
Picking remains a demanding warehouse job. Technology allows pickers to find and retrieve the right products. Then machinery, such as forklifts, enables warehouse personnel to access products on high shelves. Other machinery includes conveyors, rails, and belts. Combined with technology, the machinery helps move products from their storage points to the packing stations and loading docks.
Robotics have also impacted order fulfillment. Robots can perform repetitive tasks such as picking, packing, and labeling orders. They also free up personnel to concentrate on matters that require a human touch, like customer communication. Speaking of freeing up personnel, robots help address labor challenges and staffing issues, especially during peak seasons.
Drones, like robots, have changed how organizations process orders. Some companies use drones to identify products, while others use drones to move them from storage to packing stations. Robots are versatile, unlike technologies like conveyors, which take up space and require separate infrastructure. They can be moved between facilities as changes in demand require. Amazon also continues working on plans to ship products using drones.
Technology, as applied to order fulfillment, serves many purposes. In addition to minimizing inefficiencies, it collects data that businesses can use to streamline order fulfillment and market their products. Insights on such things as order patterns, order volume, and customer preferences are hard to come by with manual order fulfillment, let alone act on.
With so many technologies available, deciding which to invest in can be overwhelming. It all depends on a company’s current and projected needs. A company dealing in heavy products and planning to scale may invest in forklifts or conveyor systems. Some businesses employ technology for strategic advantages, such as accuracy in order fulfillment, which leads to greater customer satisfaction.
