5 Ways to Reduce Waste in Order Fulfillment

Aorder fulfillment servicesre order fulfillment costs threatening to sink your business? Order fulfillment costs can quickly eat into profits if not properly managed. Consider these five ways to reduce waste in your order fulfillment process and you could see huge improvements in your profit margins:

  1. Eliminate excessive inventory. Overproduction of product causes waste all around. If your product is perishable, it may sit on warehouse shelves so long that it expires. And even if it’s not perishable, all that warehouse space is going to cost you while it sits around not making you money. Order only what you need, and ensure that you have a place to store any overage. If you have product in the warehouse that’s been sitting for longer than six months, look for ways to sell it at significantly discounted prices to clear out storage space and save costs.
  2. Practice quality control. Products which have been improperly manufactured or packaged can create a big problem. Ensure that you have a quality control checklist that you share with your employees and any companies that you outsource with. Better yet, work with your outsourcing company to see what quality controls they have in place to ensure accuracy. Product that can’t be sold can’t make you money.
  3. Rein in unnecessary staff. Interviewing, hiring, and training staff for fulfillment positions can be counterproductive. Many companies find that their business ebbs and flows month-to-month or season-to-season. This is where outsourcing your fulfillment tasks instead of doing them in house can save you a lot of money.
  4. Reduce wait times. Are your employees waiting around on the floor for a shipment? Is there a huge delay between the time your vendor delivers one product part and another? Work with your vendors and suppliers and work out timetables. The less downtime you have, the better.
  5. Don’t forget logistics. Have you considered how products will get from the manufacture to the packager and then on to customers? Transportation is one of the biggest headaches in order fulfillment. Know how and when product components will leave your warehouse, who will be on hand to assemble them, and how and when the packaging and eventual shipping will happen. As they say, the difference is in the details, and nowhere is that clearer than in one’s profit margin.

At Ohio Valley Goodwill Industries, we have been helping companies just like yours reduce waste in order fulfillment for years. In fact, we’ve got over 100 years of business experience that we put to work every day for our customers. Our motivated workforce is skilled in assembling, packaging, kitting and fulfillment work, and we have the satisfied customers to prove it. Come take a free tour of our facilities to see our operation for yourself, and start reducing what you spend on fulfillment.