Product Fulfillment is the process of product manufacturing, warehousing, assembly, quality control and delivery of product directly
to customers without the finished product going back through the company that has created the product. Customer can place orders
via the Web, e-mail, telephone or fax.
Contract Manufacturing
Manufacturing and fulfillment requires a substantial investment in time, personnel, and capital. Large companies outsource both manufacturing
and fulfillment. Fulfillment vendors work closely with contract manufacturers of their clients' choice. Supply chain management software are
used for the coordination between manufacturers and fulfillment companies.
Kitting & Assembly
Fulfillment vendors kit or assembly components from manufacturers to fulfillment the customers' orders. There are two common forms of kitting:
pre-kited item or on-demand kit. Pre-kited item or off-the-shelf-kits are assembled from mass produced components and are held in stock.
This gives the clients the lowest unit cost and gives the fulfillment vendors the quickest order process response time.
On-Demand kit or kit-on-the-fly is only assembled when the order is presented. This form of kitting is most often used with on demand printing
where the components are not drawn from inventory, but rather printed as needed.
Warehousing
Physical goods are stored in a storage. Valuable items are usually stored in secure storage. While fulfillment companies
have their warehouse and distribution centers, small businesses can store goods in their garages or basements.
Inventory Management
The activities of inventory management involves in identifying inventory requirements, setting targets, providing replenishment techniques
and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status.
Order Processing & Shipping
Goods are delivered to customers in various shipping methods, ground, overnight, and etc. Customers specify shipping methods when they place
their orders and the fulfillment company usually can adjust the shipping methods of the delivery. To ensure smooth operations, ordering process
is customized to fit unique business needs of each client.
Related Topics
Choosing a Fulfillment Company
Choosing a Fulfillment House - Fees and Pricing
Literature Fulfillment - Choosing Fulfillment Services
How Drop Shipping Works
Drop Ship Your Way to Wealth - Problems With Stocking Inventory
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