Fulfillment Operations

Explore practical order fulfillment, 3PL operations, reverse logistics, and cold-chain guidance for brands evaluating fulfillment partners and fulfillment workflows.

Dunnage

Dunnage: What is it, Types, and Its Importance

Dunnage is one of the common logistics terms popularly used by eCommerce businesses, logistics companies, and regular customers. However, there is still some confusion lurking around the term, so, here is a blog with all you need to know about dunnage and its importance for e-commerce businesses. Content Topic All You Need to Know About Dunnage What is Dunnage? Common Types of Dunnage Importance of Dunnage in Shipping Under the Umbrella  Let Fulfillment Hub USA Handle Packing and Shipping for You!  Frequently Asked Questions About Dunnage  All You Need to Know About Dunnage Dunnage is a common term used to describe different packaging materials like kraft paper, bubble wraps, plastic bracing, boards, blocks, crinkle paper, fillers, and more. It is used to support and secure items throughout the process of shipping and handling.   It plays an essential role in protecting the items from any type of damage. Although e-commerce businesses have an effective return and refund process, it is always a good idea to avoid returns. According to a report published by Statista, 30% of online shoppers return the purchased product due to shipping damage. Therefore, it is essential to use proper packaging components to ensure the safety of the parcels. What is Dunnage? Dunnage refers to a protective material used to render safety to goods during the shipping process. In packaging, it includes a wide range of materials ranging from packing peanuts to solid plastics, to bubble wrap in order to provide cushioning to the items. It helps to secure cargo and protect loads. The right usage of packing materials can render amazing benefits to your business and can help yield significant savings. It can be made using different types of materials for different uses. The primary intent to use it is to protect items during shipping. Common Types of Dunnage Now that you know what dunnage is, let’s have a look at its common types. People use different materials as packaging to render protection to the shipping items. From standard plastic elements to eco-friendly twine and wood chips, shippers use a wide range of elements. All the packaging components are good, but some provide better protection. Here is a list of common types that you can use for your order fulfillment.    Solid Plastics  It is one of the strongest and best dunnage materials and is popularly used in high-value, industrial shipping. Solid plastics are expensive as compared to other types; however, it is the best for high-value products that need robust protection.   Solid plastics are often molded while packing to ensure consistent dimensions for the product and the containers or boxes that are used to ship them. It is expensive but can satisfactorily protect bulky and large equipment.   Bubble Wrap  We all have used it. Bubble wrap is one of the most popular ever-present dunnage and it is best for protecting delicate items. One of the amazing things about bubble wrap is that you can use it repeatedly as long as the bubbles are in good condition, which makes it good for the environment.   Kraft Paper  It is recycled paper that is usually stuffed and crinkled in a package. It is another one of the most commonly used packing materials as it is reusable, cheap, eco-friendly, and effective. You can rip the craft paper according to your requirements to fill it in the empty space or wrap it around products.    Air Pillows  One of the most effective dunnage materials is air pillows. These are actually plastic pillows that are filled with air to give cushion and keep the product from sliding. Air pillows are usually used to fill the gap or missing space. This material is lightweight which keeps it from adding cost and bulk to your shipments.   Shredded Cardboard  Old cardboard boxes are set into new boxes in order to provide extra protection to fragile items. If you have a machine, you can recycle the old cardboard boxes and convert them into flexible sheets. You can use these sheets to wrap around delicate items and provide extra protection. They are popularly used for bottles. One of the biggest advantages of shredded cardboard is that they are eco-friendly and you can recycle them further.   Packing Peanuts  It is a classic box infill and is popular dunnage. These small foam balls can adequately fit in all spaces and can absorb remarkable impact. The only drawback of this dunnage is that they stick to the products and get often pulled out of the bags. If it is important for you to use packing peanuts, consider using modern cornstarch options. You can recycle them and they are easier to control.   Steel  It is one of the most expensive dunnage choices and is only used for high-value shipping. If the products are heavy, you can use this dunnage to restrict heavier items from damaging light-weight products.   Corrugated Paper  It is another famous choice for dunnage materials. One of the best things about this is that it has high-tech constructions which help to ensure that the material can hold different weights and protect the product against moisture. It is one of the most amazing sustainable packing options.   Molded Foam  It is a common dunnage material option used to set inside the product’s box. Molded foam is popularly used in packing electronic items or sensitive items to keep them from moving around. It provides full shock absorption which in turn provides extra safety to the sensitive products.   Custom Dunnage  Shippers need custom dunnage solutions for fragile materials with specific dimensions. If you have specific requirements, you can contact the dunnage providers. Custom dunnage can help you provide extra protection to shipments. You can even use custom packaging components so that everything fits properly and the product is extra safe. Importance of Dunnage in Shipping Items have to go through different phases and environmental conditions during shipping. Therefore, shipping companies use dunnage in order to provide extra protection to items during handling and transport.  Physical Protection  Packages have to go through a long and complicated process during shipping in order to reach the destination. Dunnage provides adequate protection when the parcels are

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Backorder

Everything You Need to Know about Backorder – Definition, Causes, and Tips

In the modern-day interconnected world, customers are almighty. They search, select, and swipe their way to purchase the products they like. In such a just-in-time, instant gratification era, people hate to see out-of-stock notifications. Nevertheless, sometimes due to issues in the supply chain, an item goes out of stock. Now you must be thinking, what to do if any products are out of stock? It’s simple – Backorder. Sellers use backorder as a way to deal with the situation of being out of stock. However, it is not ideal. Consumers do not like to wait to get the products they like. If you are an e-commerce retailer and have high backorder rates, it means there are issues with your inventory management. Here is an article with all you need to know about backorder meaning, causes, and tips to deal with it. All About Backorder in Inventory Management Purchasing goods online has become a common practice at the present time. The number of digital buyers is growing every day. According to a report published by Statista, there were 1.66 billion digital buyers across the globe and this number is expected to rise rapidly. The figure reflects the need of managing inventory adequately to avoid situations like ‘backorder’ or ‘out of stock.’  If you are struggling to restock products onto your warehouse shelves or manage your inventory restocking, then you have two options. Either you can accept backorders or mark the products as out of stock. We will talk you through about backorder in this article.    What is Backorder? When an item is in backorder, it means currently it is out of stock, but is expected to be delivered as soon as it is back in inventory by a specific date. Businesses sell backordered products and also give the assurance to deliver the products to the buyers.   Backordering any product means the customer can purchase the item now and get it delivered on a future date when it is back in stock. In the case of backordering, an item cannot be packed and shipped at the time of ordering due to a lack of physical products in the inventory. It makes them different from just in-time inventory and discounted inventory.   Difference between Backorder and Out of Stock  Out of stock implies that a particular product is currently unavailable in the inventory and there is no fixed date for resupply. On the other hand, backordered means that the product is not present in the stock currently but there is a fixed date for the product to arrive.   To succinctly describe, it is the difference between “This item is out of stock” and “This item cannot be shipped until a particular date.”   In the case of backordering, it might take some time but you will definitely get the product. On the other hand, in the case of ‘out of stock’, there are probabilities that the product might be permanently unavailable. There are also the cases when seller has no idea when the product will be back.   Causes of Backorders There are various causes of backorder. Some of them are out of control, while others are preventable. Below mentioned are some of the common causes of backorders. Lack of Inventory Control If a business firm does not have adequate stock levels or it is unable to keep proper track of the inventory movement, then there are higher chances of backorders. In the modern-day world, the trends are changing rapidly and the number of SKUs for each online store is increasing. Under such situations, it is essential to use the right inventory management system to ensure a smooth flow of operations. In the contemporary competitive era, there is higher importance of an accurate inventory management system for a business. A good or tech advanced inventory management software can help you monitor your inventory properly. It can keep you from running short on stock for your products. Low Safety Stock Safety stock refers to the extra number of items you keep in inventory to handle supply failure or emergency cases that can lead to inventory unavailability. If there is a lack of a products’ safety stock, you may face situations of out-of-stock or backorder. Unusual Demand When there is an irregular high demand for a product on an online store; there are higher chances of backorders. In many cases, it is quite difficult to predict the unprecedented surge in demand despite decent sales forecasting. There could be various reasons for unusually high demands like seasonality, influencer marketing, or affiliate marketing. Moreover, the introduction of a new sales channel can also boost the product demand. Supplier or Manufacturer Issues If your manufacturer runs out of the raw goods needed to manufacture the products, then you need to shut down the business for a long period of time. It can also keep you from hitting your production goals for a long time period. In such a situation, your online store may face the issue of backorder. Know More Tips to Minimise Backorders Though backorders are unplanned and inevitable in some cases, there are some measures you can use to reduce the chances of them occurring. Here are some tips to help you minimize backorders. Set Reorder Points A reorder point refers to the minimum quantity of products that a business should keep before the need to reorder more units of a product from the manufacturer. A simple formula to calculate reorder is by adding the available safety stock and lead time demand. At Fulfillment Hub USA, we have 5-in-1 cloud-based software that allows you to calculate reorder points for each product. Moreover, it also alerts you when there is a need to restock inventory. It is always a good idea to increase the reorder quantity during upcoming promotions, product launches, and flash sales. Moreover, you should also pay attention to your historical data as it can help you get an idea about the months when sales are high and you would need additional inventory. Monitor the Inventory Levels of Popular Products Popular products or the ones high in demand may sell out quickly as compared

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Packing Slip: What Is It and Why Is It Important?

Packing Slip: What Is It and Why Is It Important?

Have you ever noticed a packing slip when you order something online? It does seem like a simple, meaningless document but holds immense value when it comes to order-fulfillment operations.   A packing slip has a role to play from the beginning of the order-fulfillment process to the successful delivery of the product. So, let’s jump into what it is and why it holds so much importance in the supply chain.  A to Z of Packing Slip  A packing slip sounds like a simple term, but it holds immense importance in the logistics industry. It is a crucial document for multiple departments and both sellers and buyers. Additionally, a packing slip is a reference document for many supply-chain procedures. It is often misunderstood with an invoice and shipping label. The confusion occurs due to similar information shared in the packing slip, invoice, and shipping label. Continue reading to learn everything about packing slips.  What Is Packing Slip?  A Packing slip or a packing list is a document that contains complete details of the order for both the consumer and seller. It includes in-depth information about the shipped product. As a result, it helps to understand the delivery details, cross-check products, the quantity of the items, and more.   A packing list is a crucial document for the warehousing and shipping department. Additionally, it helps buyer or receiver of the product to ensure proper delivery of the product.  Difference Between Packing Slip and Invoice Packing Slip and Invoice are similar but not the same. They look alike and travel from sellers to buyers. However, they both serve different purposes.   An invoice is the financial document of the order, while a packing list is a confirmation that the physical goods are received.   They both are intended for different persons; a packing slip is sent to the person receiving the product, whereas an invoice is received by the person responsible for making the payment.   A packing slip is vital for companies with multiple orders to keep track of the shipment, while an invoice always reminds every one of the due payments. An invoice is mainly for the accounting team or company owners. On the other hand, a packing list is for the warehouse and shipment team. With this, both teams are aware of the goods that are being sent and received. They both play an essential role in the order-fulfillment process, and they both serve their purposes well if managed accurately. However, for this to happen, you should consider partnering with a tech-integrated 3PL like Fulfillment Hub USA.  What Should a Packing Slip Include? It should contain all the essential and relevant information and needs to be precise as much as possible. Details mentioned on a packing list differ for companies based on their services and products. However, some information is fundamental for all:   Shipping Address and Contact Info   The basic yet important details are the shipping address and contact information of the seller and buyer. This information is crucial for the shipping and tracking of any package.   List of Items Ordered   This list comes in handy when the buyer wants to check if they have received what they have ordered. There are different methods for this, but a packing slip makes the work easier.   List of Items Undelivered    It is a rare occurrence that there is no communication between buyer and seller for order fulfillment. However, if it occurs, a packing slip can help. It includes list of items that weren’t shipped but ordered.   Quantity of Each Product   Sellers and buyers requires a quantity column. Seller keeps track of the number of items sent, and buyers can cross-check if they have received the exact amount they have ordered. This list also saves up space in the slip and avoids repetition.   SKU of Each Item    SKU of any product helps sellers keep track of their inventory and identify the product if any issue from the receiver arrives.   Slip Number or Purchase Order Number   This number is crucial to make sure the correct order is shipped and received. With PO number, sellers and the shipment and warehouse team keep check of the right order delivery. Apart from the above-mentioned details, other details are not mandatory, but sellers use them, depending on their slip template. For example, if a seller is using different delivery methods, then mentioning the name of the method on the invoice will help them keep track of their shipment. In addition, packing slip can include product description, company name, and logo, any special instruction or note, name and address of the shipper, etc. Importance of Packing Slip Packing lists are crucial for every e-commerce business. It helps maintain transparency and clarity along with many other benefits:     Physical Evidence   It is the physical evidence of shipped goods; a proof that items mentioned in the order are the ones that are being sent. This way both, seller and buyer keep track of the items of the shipment.   Enhanced Management   The order-fulfillment process needs to be accurate for smooth fulfillment operations. Use of accurate packing slips with real-time updates helps to ensure a proper flow of the order-fulfillment process.   On-Time Delivery   Timely delivery is everything. A packing list makes it easy for the warehousing and shipment team to check, re-check, and cross-check every order as it contains all the prominent information. This way the process becomes faster and order delivery is on time.   Maintain Transparency   A packing slip provides end-to-end transparency in the supply chain. It helps both sellers and buyers verify products and keep check of lost or damaged goods. Additionally, keeping track of the refund/replacement process becomes easy.  Know More Packing Slip In a Nutshell Packing Slip is important for both, sellers and buyers. It also provides an additional opportunity for companies to strategize effective branding while enhancing customer experience. However, there are different criteria that your customer’s experience will base their judgment on, including affordable delivery. Fulfillment Hub USA provides you and your customers affordable delivery with numerous shipping carrier integration. We trickle down all the discounts that we get from shipment companies to you and in turn, make your customers happy. This way, we help you

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Guide To Logistics Services

Your Simple Guide To Logistics Services

Imagine this: You have set up your e-commerce business and successfully completing orders, managing warehouses, shipping, managing your logistics services, and focusing on marketing. With your excellent performance, you gain the trust of customers and receive a large chunk of orders. Uh, oh, but you don’t have enough space to keep the stock, your warehouse staff is unable to manage daily tasks due to less space and more workload. This makes your job difficult enough to drop your branding and marketing plans and focus on administration work only.   This is sad, isn’t it? So, what do you do now? This is where logistics service providers come into the picture. But who are they? What do they do? Let’s find out! All About Logistics Services Logistics services is a common term in the supply-chain industry. They decide how accurately and quickly products can be delivered to the customers. Here’s everything about logistics services and 3PL providers. What are Logistics Services?  Before we understand logistics service providers and their role in the industry, let’s have a look at what logistics services are and why do you need to manage them accurately. Logistics Services are crucial for an order-fulfillment process. It consists of inventory management, security, picking, packing, shipping, safe delivery, returns management, and many more. In simple terms, everything that you do after receiving an order to safely deliver it to the customer is a kind of a logistic service. In-house Vs Third-Party Logistics Services There are two ways you can utilize these services: in-house fulfillment and third-party fulfillment. When you do everything in-house, you manage every process by yourself whether it is managing inventory or delivering products safely. As a result, the risk of mishap occurrence increases, and you get less chance to market, plan, strategize, and forecast. Moreover, when you manage everything on your own, juggle between tasks, keep track of every single step of every package, there’s a high chance that you can make mistakes, and lose it all. No customer wants to receive a wrong product, poor packaging, or late delivery. So, if you fail to manage things accurately, you lose sales, customers, trust in the market, and ultimately, your business. To save yourself from losing your customer’s trust and your business, consider partnering with a tech-driven logistics provider. Who Are Logistics Service Providers? A logistics service provider is a company that offers various supply chain services for an order-fulfillment. They specialize in multiple domains of the supply chain and are experts in handling everything precisely. As a result, your workload reduces, and you have ample time to focus on other important aspects of your business. They are also known as third-party logistics providers (3PL) or fulfillment partners. There are various providers available all over the globe, and selecting the right fulfillment partner is critical for your business growth. A 3PL company offers a wide range of services including: Inventory Management and Storage Multiple Sales and Shipping Carrier Integration Freight Services E-commerce and Wholesale Order Fulfillment International and Domestic Shipping Warehouse Solutions Other services depend on the expertise and licenses available to a fulfillment center. Why Do You Need a Logistics Service Provider for a Successful E-commerce Business?? As we have already established that a fulfillment center helps you reduce your workload, but what else? Let’s look at some of the top benefits that you can expect when you partner with a logistics provider: Expertise A logistics service provider is an expert in the industry and helps you resolve your logistics problems easily. Moreover, their expertise and guidance can assist you set up your base as a trustworthy e-commerce seller and can help you scale. Growth Partnering with a reputed fulfillment center like Fulfillment Hub USA guarantees your growth in the industry. They have all the necessary tools to fasten your order-fulfillment process, resulting in quick delivery and build customer’s trust. Team-Work Logistics providers manage everything accurately with a team of experts. This leads to minimized errors and smooth operations. Tech-Driven Leaders in the industry are tech-driven. Tech-integration makes a lot of processes easy to manage, and it always keeps you ahead of your competitors. Network Your network expands when you partner with a 3PL provider. In terms of shipping, a 3PL has strong ties to major shipping carriers, which in turn benefits you in terms of discounts, and you can pass them on to your customers as well. Cost and Customization A fulfillment center helps you save money. Along with shipping, you save a lot on space, staff, security, freight, customs, equipment, technology, and more. In addition to this, they always have many fulfillment plans; you can choose the one that suits your business needs or opt for customization. When you partner with a logistics provider, you avail a lot of benefits and set your business up for growth. However, when you are selecting a fulfillment partner, it is as important to check whether they are tech-integrated or not as it is important to establish your business requirements upfront. Let’s find out how tech integrated logistics providers can help you in your business growth. Know More Why Should You Opt for a Tech-Integrated Logistics Provider? The entire fulfillment landscape has evolved with technological advancements. The latest tech integration always helps businesses process orders quickly and scale effectively. A tech-integrated logistics provider has many benefits. Some of them are: Real-Time Updates A tech-enabled 3PL provides you software integration that helps you stay in the loop of your order fulfillment process by updating you everything in real-time. It lets you stay alert about your order and inventory. Better Customer Support Transparency in the system with the software helps you answer your customers better in case of any query. As a result of this, you meet your customer’s expectations with ease. Faster Order Fulfillment Tech integration enables 3PL to stay updated. This helps each team to process faster with the updated information and allows you better order fulfillment. Adequate Business Management Software integration is profoundly helpful on the path

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Delivery-Exception

Delivery Exception: What is it and How to Handle it

In the contemporary internet-oriented era, the trend of online shopping is growing every day. Online shoppers expect their parcels as soon as possible and when the delivery gets delayed, they are disappointed. Shipping carriers try their level best to deliver the orders on time. However, there are many instances in which they are unable to deliver the parcels. It is essential for shipping careers to stay prepared for this type of situation as it can affect customer satisfaction. Such a situation is known as a delivery exception or shipment exception. Here is an article with all you need to know about shipment exceptions, and how to deal with them. Nitty Gritty of Delivery Exception For online shoppers, nothing is more frustrating than delayed delivery. According to a study, 69% of customers are less likely to shop again from a retailer if the item they ordered earlier is not delivered on time or within two days of the decided delivery date. &nbsp Delays in delivery are known as delivery exceptions. They can negatively impact customer satisfaction and retention rate. Fulfillment Hub USA works with top-notch shipping carriers to ensure on-time delivery of goods to the customers. Additionally, it reduces the chances of carrier issues. However, no one can do anything about natural calamities or some other exceptions that can cause a delayed delivery. Continue reading the article to find out what are shipment exceptions.&nbsp What is a Delivery Exception?   A delivery exception refers to the status when a shipping carrier cannot complete the delivery of parcels at a determined time because of a delay in transit. There could be various reasons for the same ranging from issues with a delivery address to issues with carriers.&nbsp Keep in mind that a shipment exception does not mean that the product will not be delivered or will be necessarily too late. It simply means that the expected delivery date of the parcel will be missed or dramatically impacted.&nbsp Main Causes of Delivery Exceptions  No matter how reliable the order tracking system you have, a lot of things can happen with parcels when they are in transit. It can cause delayed delivery which in turn leads to frustrated customers. &nbsp According to a study, around 40% of shoppers consider delivery as the most important decisive factor in the overall shopping experience. Though shipment exceptions are unintentional and also unpreventable in most cases, they can cause customer dissatisfaction. Now that you know what a delivery exception is, let’s dive into its major causes.&nbsp Federal Holidays  There are higher chances of shipment exceptions if there is a national holiday either in the destination country or in the origin country. On federal holidays, shipping carriers do not operate. Due to the day off, it is normal for the shipping carriers to delay the delivery of the parcel. &nbsp Customs Delays  International shipping includes a lot of challenges. Many times, the customs hold the packages for a longer time and it can lead to missed or delayed delivery dates. Make sure to have the correct tariff codes as it can help to make the shipping process seamless and hassle-free. &nbsp Missing or Damaged Labels  It is common to have delayed delivery when the shipping labels are damaged or the barcode is unscannable, or the address is wrong. When the essential details are unscannable or illegible, it leads to generate a delivery exception code. The same thing happens if the label on the parcel has an incorrect address. &nbsp Weather Conditions  In case there is a natural disaster like an earthquake or flood that damages the delivery route or makes it unpassable, then there is a delay in the order delivery. These types of shipment exceptions are unpredictable and are out of control. &nbsp If you use different warehousing services, you may be able to deliver the order to your customers from different locations. In order to deal with situations related to weather conditions, most shipping carriers keep contingency plans to resume the shipping services in affected areas. &nbsp Incorrect Address  If the delivery address present on the label of any package is wrong, incomplete, undeliverable, or unclear, then there are higher chances of delivery exceptions. It is one of the most common exceptions in international shipping. &nbsp Missed Drop-Off  It is another common shipment exception. It happens when a parcel reaches your apartment or home but no one is present to receive the parcel. In such cases, the delivery person attempts delivery the next day.  &nbsp Know More Possible Outcomes of Delivery Exception In case any of the above-mentioned events transpire, it is possible to avoid delays in the delivery. Here are some possible outcomes of shipment exceptions.&nbsp Package is Delivered on Time  In some cases, the shipment exception is only a notice that there are chances of delay in the delivery of your parcel due to different reasons. However, the parcel arrives on time. &nbsp Late Delivery of Package  The delays caused by shipment exceptions are usually short. In most cases, the parcel arrives the next day. For example, if no one is present at the delivery location to receive the parcel, the delivery person will attempt delivery the next day. &nbsp Package is Returned  In case the shipping carriers cannot deliver the package due to a shipment exception, then they return it to the seller or the sender. &nbsp Tips to Handle Delivery Exception  In the modern-day competitive era, big brands like Flipkart and Amazon have set high standards of delivery. It has led to higher customer expectations for delivery. Therefore, it is essential to understand what your customers actually want and when they want to receive the item. &nbsp Ecommerce businesses should smartly respond to the shipment exception depending on the main causes of the exception. Below mentioned are some tips to follow if you notice chances of exceptions while the order or parcel is in transit.&nbsp Contact the Carrier  You can easily track the location of a parcel when it is in transit. It can help you to figure out the reasons for delivery exceptions. In such cases, it is a good idea to contact the carrier directly. They

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