Receiving Order Management:
Order management is the concept for overseeing and managing all purchases a customer may make. NextGen3PL is able to keep track and manage all of these orders in one place. This includes packing and shipping the orders. Order management is important as it keeps the customer up to date with the status of their orders such as delivery time or possible delays. Similarly, it is important for the business as it helps manage order trends over time, such as customers buying behaviors, changes in volume, preferences, and locations. NextGen3PL order management also keeps track of their progress in fulfilling these orders. This includes orders that may have had mistakes, orders that cannot be fulfilled due to lack of inventory or inventory mismanagement, and returned orders.
Inventory Management:
Inventory management is how businesses’ eCommerce inventory is monitored. This includes how inventory is stored, stocked, and restocked when necessary.
It is important for the business to be aware of how their eCommerce fulfillment center is managing their orders because it can impact their inventory levels, and therefore their sales. Sometimes pallets of inventory may be left sitting on the dock, and although it is technically at the order warehouse it is not listed in the inventory as has not been unloaded. If the inventory is not unloaded, there cannot be sales.
Additionally, another challenge commonly seen in inventory management is a term called “shrinkage”. This term represents the possible loss, theft, or breakage of inventory throughout the e-commerce fulfillment process. It is common for e-commerce fulfillment centers to have an allowance for shrinkage included in their contracts. This allowance means that up to a certain percent, your business will eat the cost of the lost merchandise. Typically, there is between 2%-10% of shrinkage in warehouse inventory.
Here are some additional qualities NextGen3PL provides:
- Updating inventory frequently, within one to two days of receiving inventory shipment. This way all systems are up to date on current inventory.
- Giving businesses direct access to their inventory systems. This allows for real-time data that can be critical for businesses when trying to maintain a steady flow of inventory.
- Having a low shrinkage allowance. If your eCommerce fulfillment center takes responsibility for inventory that is lost or damaged in the warehouse, your business won’t have to account for shrinkage when calculating stock levels.