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Pick and Pack - How it Can Benefit Your Ecommerce Business Why is it important to properly learn how to pick and pack? The answer is quite simple - your product must reach its intended customer in the most efficient manner possible. Order fulfillment is the work-flow or system related to the picking, packing and shipping of the packed goods to the ultimate destination and is an integral component of order fulfillment. Proper order fulfillment operations or facilities are usually called "distribal warehouses" or "DFL's." These warehouse operations often serve as a distribution point for raw materials and finished goods before they are shipped to end-users. In the past, DFLs were either vertical or horizontal stockrooms. Vertical stockrooms had single doors, usually fixed in a dead-locking position and accessed from only one side of the warehouse. Horizontal stockrooms contained a number of fixed doors. When a customer placed an order, one of the DFL operators would enter the inventory data into the computer, select a zone that corresponded to the customer's order and punch in the appropriate quantities. After the order is processed, the operator would then manually wave pick and pack all ordered items in accordance with the quantity entered and then pack each item according to the labeling on the back of each box. With the advent of the electronic age and the widespread use of the Internet, it is now possible to achieve improved efficiency by using an electronic pick and pack system. Electronic systems combine warehouse automation with a highly complex software interface that enables DFLs to rapidly pick and pack products while simultaneously recording detailed information about inventory, goods in transit and other pertinent information. Such systems allow for the safe and convenient storage and retrieval of goods and enable businesses to quickly increase their ability to move goods and services to new locations. When properly used, it can eliminate much of the manual labor involved in picking and packing. The need for personnel in this function, however, remains critical. It is also important for companies to recognize the importance of utilizing a skilled and properly trained employee in the picking and packing process. This will not only improve productivity and profitability but also reduce costs associated with training. In addition to paying wages to full-time employees, fulfillment centers also must pay for employee benefits such as health insurance and other fringe benefits that are related to work. To further reduce operational costs and maintain a strong cash flow, many fulfillment companies offer a pick and pack distribution service. This service allows companies to receive shipments at a much lower cost than through traditional packaging methods. This cost-effective option enables a company to receive shipments at the warehouse and pick and pack them at the distributor's site or facility. This method provides for the transportation of goods at a much lower total cost than traditional packaging methods and it offers a flexible means of receiving and distributing goods. Apart from offering a cost-effective alternative to traditional packaging, a pick and pack process enables a company to manage its inventory much more efficiently. This results in an increase in efficiency and lower overall inventory costs. When an order is filled and picked by skilled personnel using a pick and pack process, it takes significantly less time for the goods to be transported to its destination. This can result in an increase in customer satisfaction and a boost to profit margins when goods are delivered on time and in full. An efficient warehousing and pick and pack process will also minimize the chance for goods to be incorrectly packed or damaged during shipping. Although there are several advantages associated with using a pick and pack system, some disadvantages remain as well. The largest disadvantage associated with this type of ecommerce fulfillment is the increased costs associated with employing fully trained employees to perform this function. Also, full staffing of warehouses and fulfillment centers can require a company to invest in additional space and furniture. If a company uses trucking or ship-building companies to fill these positions, the additional expenditures could make the capital expenditures prohibitive. Furthermore, the increased costs may make it difficult for small businesses to meet minimum order requirements. The pick and pack method enables companies to benefit from rapid shipment of orders without the additional costs and labor required with full staffing. This method may not be appropriate for all types of ecommerce businesses and it should be considered carefully before companies begin to use it in their operations. It should be implemented in situations where it is practical and applicable. Also, it should be implemented according to the type of merchandise and the manner in which it is to be picked and packed. Allowing suppliers to pack orders for you can greatly simplify your business by taking some of the burden off of picking and packing orders.
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