Fulfillment: Implementation process of a new client
Do you feel that logistics are out of your control? Thinking about streamlining your own business? Entrust your logistics to a fulfillment expert! But be consistent and careful from the start. The implementation process is a complex task that requires not only enough time. This is the only way to eliminate future potential risks and problems.
Shopify Server recommends contacting your 3PL provider at least 4 months before starting cooperation. Especially if you are entering a period when the demand for your product will increase rapidly – seasonality, discount or successful marketing promotion. You can use our guide to choose the ideal fulfillment provider. In the implementation process itself, you will go through the following steps step by step.
Step 1: Quotation for fulfillment
We understand that price is one of the most important factors when choosing your fulfillment partner. But just as every e-shop is different, so too is the portfolio of services it provides, including pricing. The optimal price offer is made based on your information, this is the only way to ensure the most suitable price level, tailored to your business. At this point we also recommend a financial comparison of your current solution with the fulfilment service offered.
Patrik Babinec adds: “Don’t rely on all-in rates and make sure you price all processes in the warehouse. This way you get an overview of all processes from loading, through storage, unloading and transport.”
Step 2: Agree and sign the contract
No professional cooperation can do without contractual guarantee. It is important to establish and clarify common goals and expectations and then transfer them into contractual documentation. The agreed terms must then be defined, understood, agreed and signed. This prevents potential complications for both parties involved. The contract usually also includes a complete final price list, which becomes binding once the contract is signed.
Step 3: Choosing carriers
Do you prefer speed or price for order delivery? Will you be using ground, air, sea or other shipping options? Are you shipping to the Czech Republic, EU or worldwide? The answers to these and other questions will help you choose the right carrier and products for your needs. By partnering with a fulfillment specialist, you can take advantage of volume discounts with your chosen carriers. There are other aspects associated with this that need to be set up well, e.g. sending cash on delivery, etc.
Step 4: System connection
You can communicate with the external warehouse in several IT ways. It all depends on the technical equipment and readiness of the chosen partner. It makes a difference if you have to send your orders manually by email, by exporting and sending CSV files to an FTP server or via API connection. It is the latter method that brings a number of advantages, including full automation and real-time, 24/7 data transfer.
Patrik again adds: “It’s good to make sure you know what the cost of the linking is and who will pay for it, and also prepare for the fact that there will be flexibility and adjustments needed on the e-commerce side at the beginning as well.“
Step 5: User application
Are you worried about losing control of your warehouse management by moving products to an external warehouse? In most cases, fulfilment partners have web applications where you can find out a lot of information about your goods and you don’t have to worry about losing control. In most cases, you will get access to the aforementioned user application where you can keep track of your orders, complaints and returns. You can control and manage your SKUs, set critical quantity levels for reordering products from a supplier/manufacturer, or enter and control receiving. Ideally with the ability to set up different competencies according to user roles. But it all depends on what and how advanced the fulfillment partner application provides.
Step 6: Warehouse operations
individual B2B and B2C orders will be picked, packed, what packaging and filling material will be used, etc. After the physical receipt of the goods, the warehouse will usually carry out a quantity check of the goods announced; fulfillment companies may also offer a quality check for an additional fee. Before loading, both parties must be sure that sufficient storage space is available for efficient processing.
Logistics outsourcing is a significant milestone that will affect the future of your business. The cooperation of both parties involved – you and the fulfillment partner – is extremely important for optimal cooperation. Therefore, invest enough time and energy to set common goals and at the same time be sure that your future partner treats you individually and on a professional level. Successful setup of the individual steps is a guarantee of quality that will ultimately be felt by your customers.
