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Pack orders are the backbone of most e-commerce businesses. Packaging plays a very crucial role in e-retailing, web-based business, as well as small/home based retailing. Order fulfillment is an integral part of e-retailers’ order management or work-flow and is the chore related to the packing, boxing and delivery of purchased items to an authorized shipping carrier.

Order fulfillment operations or facilities are also commonly known as “distribution facilities” or “DFO’s.” There are many types of these DFOs that include pick and pack facilities, including trucking and transportation companies, agents, packers, and independent fulfillment companies. In addition, a great number of companies offer on-line lead filling and pick and pack services. These businesses process orders from online customers before they enter the hands of actual distribution companies.

The picking and packing process can be completed in different ways. The most common methods include manual pick and pack, semi-automatic pick and pack, automatic pick and pack, as well as robotic systems. Each of these has its own advantages and disadvantages, depending on the size of the enterprise, the type of merchandise, and the expected end date of delivery. Each method has its own set of pros and cons, and the best method will depend upon several factors.

* An accurate inventory count is essential for a smooth pick and pack process. Many companies make the mistake of assuming that an accurately Inventory count will solve all of their pick and pack problems. It will not. A poor inventory system will result in goods being put into storage, on back-up, or sold to the first customer that needs them. On the other hand, a properly implemented inventory management system will also ensure that goods are picked and packed in the most efficient manner possible.

* An accurate inventory count will eliminate the chances of goods being mistakenly returned. It is likely that at least one customer will return a product that was incorrectly picked or packed. This will cause loss, time, and money for the company as they must seek to return the goods to the customer, recondition them, and ship them again to that customer, all of which costs money.

* Outsourcing the pick and pack process will allow the fulfillment company to focus on other functions. This allows the fulfillment company to concentrate on managing inventory, completing orders faster, and increasing productivity. Fulfillment companies may not be able to meet all of the volume requirements. It is important for the company to have the right amount of pick and pack warehouses to meet each shipment’s demands. The fulfillment company may have to rent facilities, purchase packing materials and supplies, and even have employees dedicated solely to the pick and pack process. Outsourcing allows the company to focus on these functions and provides additional services that increase revenue.

* The pick and pack process are only as effective as the person doing it. When an in-house employee handles the task, they are limited by their own skill set and experience. When the ecommerce fulfillment company is handling the pick and pack, they are trained and experienced to handle any situation that may arise.

* It is important to contract with a company that is well-established and can offer long-term contracts with minimal upkeep fees. Some ecommerce warehouses offer a pick and pack process for a flat fee monthly or even yearly. Others charge one flat fee for all picks and packs regardless of volume or time frame. A good ecommerce fulfillment company should be able to provide excellent service with little or no maintenance fees.

* Ecommerce fulfillment companies also provide a streamline of operations. Pick and pack warehouses usually have one certified picking professional and one freight professional. This streamline allows for increased productivity, efficiency and reduced labor costs. When labor costs are reduced, it means more money in the company’s pocket and there are fewer expenses that can be attributed to labor costs. Efficiency is key to reducing costs.

* The pick and pack process are completed quickly. Customers expect their orders to arrive on time and in one piece. When an order is picked and packed by an employee, the warehouse will often times fill the order before it is received. This will slow down the pick and pack process and has implications for customer satisfaction. When an in-house employee handles the picking or packing process, it takes them longer to get the job done and this affects the entire shipping process.

By outsourcing the picking and packing, a warehouse operator is able to increase productivity. The warehouse will be able to serve a wider variety of customers and provide a quicker response time to those customers. In addition, an ecommerce fulfillment company can reduce the cost of inventory by providing better pricing on purchased products. It can also help decrease the cost of shipping when that shipping is done through an ecommerce fulfillment company. When inventory is reduced, it can also reduce the cost of logistics expenses, something that all companies should consider.