orderfyllelse

Orderfyllelse, or order fulfillment, is the end-to-end process that turns a customer order into delivery of goods. It encompasses receiving and processing orders, managing inventory, picking and packing, shipping, and handling returns. Depending on business models, activities may also include procurement, warehousing, and reverse logistics, and fulfillment can occur in multiple locations such as a company’s own warehouses, third-party fulfillment centers, or via dropshipping from suppliers.

Core steps typically include order receipt and validation, inventory allocation, picking, packing, labeling, and shipping. The choice of carrier and shipping method, last-mile delivery arrangements, and delivery tracking are integral to the process. In omnichannel settings, the same product may be fulfilled from different locations to meet demand efficiently and to provide convenient delivery options for customers.

Technology plays a central role through systems such as warehouse management systems (WMS), order management systems (OMS), and transportation management systems (TMS), often integrated with ERP platforms. Automation, barcoding or RFID, and data analytics contribute to accuracy and speed. Common performance metrics include order cycle time, fill rate, on-time delivery, order accuracy, inventory accuracy, cost per order, and the percentage of perfect orders.

Fulfillment strategies vary: in-house fulfillment, third-party logistics (3PL), fourth-party logistics (4PL), and dropshipping. Trends in the field include omnichannel optimization, micro-fulfillment centers, automation, and real-time visibility to improve speed and cost efficiency.

See also: supply chain management, logistics, e-commerce, 3PL, dropshipping.