How Can Pick And Pack Services Help My Business?
Posted On January 23, 2015 by
Pick and pack is a popular supply chain management technique. Executed by a pick and pack provider, this service is a great option for small businesses that don’t have the capacity to store and manage inventory in their current location. It is the process of pulling product from your inventory, packaging it and shipping it to your customers. A good pick and pack system can tell you exactly where each inventory item is quickly without having to wander the aisles looking for the items you need for a specific order. Great systems will even offer intelligent picking routes that can really boost efficiency.
A typical pick and pack fulfillment house infrastructure includes five key elements:
- A warehouse facility
- Automated inventory control system
- Staff and equipment for pick and pack
- Shipping capability
- Great customer service
An effective pick and pack system enables you to pick in a single pass route; pick multiple orders at the same time; use wireless devices to map your route and pick the specific products you need; go digital and eliminate printed pick tickets; and reduce human error.
Companies lose money when orders are shipped and something was missed or a wrong item was picked. With the right system, this can be avoided. Each order can quickly be double checked with a barcode scanner to ensure that what is being packaged matches exactly what was ordered. The automated system allows you to print the shipping label with the click of a button to prepare the package for immediate shipment.
The entire process entails sending or storing your company’s products at the pick and pack warehouse. These products are then stored on pallets in a climate-controlled facility until orders are placed by customers. When orders are received, employees pack up the products and ship them directly to your customer. This encompasses the entire supply chain management process for your company.
The faster you can complete filling your orders the more you can sell and grow your business. Most small businesses are not equipped with the warehousing and technological capability that a fulfillment house has to pick, pack and ship orders. That’s why finding the right partner to work with can save you time and money without sacrificing service. Due to the large volume of combined inventory from their clients, fulfillment companies are able to negotiate the most competitive rates with carriers that small businesses can’t match. They allow small companies who do not have the financial resources to invest into their own fulfillment house to compete with bigger companies who maintain their own. For a new company, these experts are able to deliver a client’s product to market quickly without the time and investment needed to develop their own in house fulfillment infrastructure.
The web-based inventory software fulfillment companies and third party providers offer their customers allow business owners and managers to access their inventory any time to review their orders, current product levels, shipping times and costs making it easy for them to stay on top of turnover trends and any customer issues that may arise.
When using pick and pack you only pay for a portion of the warehouse space as opposed to an entire facility. A small per item charge covers the costs of the services provided, saving a small business the cost of hiring and training customer service personnel and training warehouse staff. Small businesses usually benefit the most because they have a smaller operating budget and need to keep overhead costs low while filling up to thousands of orders per day.
These services are especially helpful for those small businesses that need to manage growth. A pick and pack fulfillment center gives smaller businesses the large scale operational capability without stifling cash flow needed for daily operations allowing them to concentrate on growing other areas of their business. This also gives them more time to focus on product development and their business models as opposed to spreading their resources to thin by having to operate a fulfillment center.