Order Fulfillment for Your T-shirt business: Improve Efficiency
The fulfillment in a T-shirt business of the order can be laborious, time-consuming, and also contains some extremely tedious work. In this article, we will cover how to significantly improve customer satisfaction rates with a fast and efficient order fulfillment process by using the strategies.
Order fulfillment for your business
Why is order fulfillment in T-shirt business important?
Why is order fulfillment important?
In today's marketplace, especially when people compare services offered by giant electronics sellers like Amazon, customers will demand a state-of-the-art experience from your store. So, determining your online T-shirt business’s success will significantly contribute to a fast and efficient order fulfillment process.
However, PeopleVox's E-Commerce Fulfilment Report says 63% of businesses admit they do not always deliver on time, of which 34% think one of the main reasons for this is not availability.
Shockingly, 1 in 5 businesses admitted that they did not know the cost of their shipping mistakes. Each order fulfillment error can cost from $ 35 - $ 50, according to Multichannelmerchant estimates. So if you deliver hundreds of packages a month, it could risk up to tens of thousands unnecessarily.
Efficient order fulfillment is not only crucial to customer's happiness, but it also plays a crucial role in helping you reduce mistakes and manual input, saving both time and money, and continue to scale your business successfully.
The challenges T-shirt business face with order fulfillment:
First of all, checking your current order fulfillment is the first thing you should do. Considering your workflow, your T-shirt business is facing many problems and being prevented from shipping orders quickly by which areas. Then you can work to fix them!
You are having trouble identifying what is causing your bottlenecks? In the next section, we will suggest ways data audits help reveal where your problem is coming from.
Firms' ability to effectively order fulfillment is often hampered by the common challenges in the following categories:
- Demand planning (including stock-outs or excess stock)
- Manage inventory and report inventory levels
- Executing the supply chain, including the time frame it takes to re-order stock can happen
- Pick and pack
- Shipping and collection
- Returns, including both the customer’s process and handling incoming returns
Data Tracking: Key Metrics for improving your T-shirt business order fulfillment
As your order history grows, the data collection becomes more and more powerful over time. It can help you discover trends, common delays or mistakes, and clearly give you a direction in optimizing your efficiency.
You can also discern the difference between before and after by measuring the effectiveness of your implement changes. The following metrics should be monitored by you:
- Order fulfillment cycle time - the most important metrics to be tracked. The overall goal is to ensure high service standards while reducing your execution cycle time as much as possible. How to calculate it will be explained below!
- Percentage of shipments delivered on time
- Order fulfillment cost (per order)
- Order error rate
- Inventory turnover - is also one of the key metrics to track for good demand planning and purchasing performance. Dividing the cost of sales by the average inventory level is the calculation for it.
- Refund rate
- Handling returns - How much it will cost your T-shirt business to process returns (money and time)?
- Customer retention rate
- Customer satisfaction level
How to calculate your T-shirt business order fulfillment cycle time?
Calculate your order fulfillment cycle time
Your order fulfillment cycle time is the time it takes you to fulfill an order. Calculating it will give you a tangible, measurable metric that tracks your overall workflow improvements, helping you to see if your effectiveness has actually increased.
To calculate the order fulfillment cycle, usually used a common formula is: Source time + Production time + Delivery time = Total order fulfillment cycle time.
The source time: From the moment a customer places an order online to the moment your T-shirt business becomes aware that your T-shirt business has the right materials/products in stock and is in stock to begin ordering.
Production time: The amount of time it takes to manufacture, fulfill, and pack the order. These will only include the time required to select and package the product if you do not manufacture your own products.
3 clear strategies to improve your order fulfillment in T-shirt business
Now it is time to increase your efficiency by making improvements. Below, we will cover 3 different strategies for you. However, you cannot finish all of them at once. Before adopting any strategy, you should research and consider the cost (including time and human resources). Then you can then decide which implementation works best for your T-shirt business.
Remember - your goal is to maintain service standards while reducing your order fulfillment cycle times as much as possible!
Clear strategies to improve your order fulfillment
Manage inventory accuracy
After customers place an order from your store and only later find out that the product they want is really out of stock and they have to wait, this will inevitably make them unhappy. This is why for the order fulfillment process, inventory management plays a very important role. To make sure customers can't order products that are out of stock, you'll need to perform a real-time cycle count and synchronize the current stock with your store. However, you cannot do these manually.
Inventory management is crucial to your order fulfillment process
This is why inventory management software comes in handy. A system that easily integrates with your direct selling platform without requiring a complicated setup is something you should start with. This allows you to manage your inventory across multiple platforms (like Kingify, Shopify, Printful, etc) with near real-time updates to an unlimited number of channels and level management products on many warehouses.
Make sure you carefully research the features offered and consider the needs of your T-shirt business in order to choose the most suitable inventory tool. The following requires will need to be considered:
- What are your organization methodology and your inventory size?
- Are you a multichannel seller/do you have plans to be?
- Do you need synchronization across multiple warehouses?
- Do you need software that can be integrated and interoperable with other tools?
- Can the tool scale as your store size grows?
Having considered the above, you should have a clear idea of what you need for your inventory system in hand. Now, let's start researching a system that's right for your store.
Automation: smart order fulfillment processing for T-shirt business
As discussed, one of the key factors in improving your order fulfillment cycle time is order processing. If this is done incorrectly, it can lead to high order error rates (and high costs).
So how can you reduce your order fulfillment error rate? Eliminate the need for manual and administrative change in your order-processing system. For instance: If the package weighs more than a certain quantity or needs to be shipped internationally, your staff may need to change carriers or shipping methods. During the processing of your order, a myriad of situations can happen, and making a change to each of these orders will be done manually based on your employee. But this all costs time, and labor.
To eliminate the time spent checking and manually adjusting individual orders for your employees, process automation will help you with this. Kingify's smart shipping rules are the solution. The system will automatically apply the correct options by checking the specified conditions after the order has been processed. This also means picking, packing, and shipping each order is all your employees need to do. Learn more about the automation of your order fulfillment processing here.
Warehouse organization for T-shirt business
In fact, picking orders is the most labor-intensive job in a warehouse. During a pickers' workday, they usually walk 60-80% of the time. You can significantly increase your efficiency in picking and packaging by optimizing your warehouse organization. It may take some time and trials, but the return on investment over the time saved can be enormous. Especially if you haven't considered this before!
So how can you speed up the pickup process without compromising the accuracy of your order?
Re-organize your warehouse
One method for managing the picking process in your distribution centers is “slotting optimization”. It is the “process of deciding where items should be placed in the picking area so that the popular items are stored close together and in close proximity to the starting point of picking to reduce walking time.”
Order fulfillment warehouse
First of all, you need to know where to place the product. To determine which products need to be placed near your picking or packing area, use ABC analysis.
This analysis is based on the idea that 80% of your inventory (products that are sold and shipped the most) comes from only 20% of your total inventory. From there, ABC analysis classifies your stock into 3 categories:
A - This category will contain your most frequently used, ordered, and shipped items, accounting for 80% of your total shipping or 20% of your total. This Category A stock should be located in accessible locations, ensuring your staff can quickly and easily pick up their items without any additional assistance.
B - The second best item and sold regularly. They will account for 15% of all moves or 30% of total inventory. Since this volume is regularly sold, arrangements should be made to ensure easy access. However, it does not need to be located near the pick-up or packing stations.
C - Stock that doesn't often move in a warehouse will be Category C, accounting for 5% of the movement but usually containing 50% of the total stock. This means they can be stowed in the furthest place and stored in more inaccessible areas.
How are you currently managing to reduce order fulfillment cycle times and improve your order fulfillment process in a T-shirt business? Share your best tips and enlighten us in the comments!
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