What are the most common challenges in order fulfillment?

Order fulfillment can present numerous challenges to businesses, but the most common are linked to inventory management and the precision of a business’s processes.

5 Common challenges in order fulfillment

Some of the most common order fulfillment challenges businesses face are the following:

1. Improperly filled orders

Sometimes, orders are filled inaccurately. Inaccurate order fulfillment may occur when an order is incorrectly recorded, or it might occur during the picking and packing phase. Either way, the end result is an upset customer or vendor.

2. Stockouts

Inventory management is central to efficient order fulfillment, but if you have frequent stockouts—particularly on items with high turnover—you’re likely to lose customers. Keeping enough items in stock to meet demand is key.

Tip: Stockouts are also an issue for MRO inventories. If you don’t have a replacement part in stock, it can prolong downtime if a piece of equipment fails.

3. Time-consuming packing

Once an order is placed, you need to make sure the items are picked from your shelves and packaged in a timely manner. Otherwise, the shipment is likely to arrive late, making customers wait longer than they want to.

Note: In general, if a customer doesn’t receive an item with in a week of ordering, they’ll be less likely to order from you again.

4. International orders

Shipping overseas is even more complicated. Not only can it take longer, but you also have customs and extra costs to contend with as well. Occasionally, an item may be sent back, meaning you’ll either have to try sending it again, or else refund the purchase.

5. Communication

Communication is central to efficient order fulfillment. You need to keep clear communication with:

• Your suppliers to keep items in stock,
• Your customers to handle their concerns, and
• Your own personnel to run things smoothly.

A failure in communication at any point could lead to delays and lost customers.

What are some solutions to these challenges?

Overcoming these challenges frequently comes from automating as much of the process as you can. A few ways to do this are:

• Using software to take orders, preventing errors in recording products purchased.
• Implementing a barcode system to track inventory and improve accuracy.
• Using software to automate inventory management and prevent stockouts.

Each of these solutions can help you streamline your inventory management processes and fulfill orders more quickly and accurately.