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E-Commerce, Fulfillment, Team Taylor, Warehousing
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Fulfillment Guide Now

Are you thinking about partnering with a third-party logistics (3PL) company? If you are new to outsourcing fulfillment, what goes on in warehouses and fulfillment centers may seem daunting. But the fulfillment process doesn’t have to be such a mystery! Our team is taking a look at the journey of an order through 3PL fulfillment.

Receiving


Your 3PL can’t ship orders if they don’t have your inventory! The receiving of your product is one of the top warehousing operations that must happen before your 3PL can start fulfilling orders for your online store. Receiving refers to the acceptance of incoming inventory, followed by its storage. Once your 3PL receives the products, they store your items in warehouses and fulfillment centers. Each SKU has a separate dedicated storage location, either on a racking shelf, in a bin, or on a pallet.

Picking 


The fulfillment process begins once your customer places an order. As soon as an order is sent to your 3PL through their WMS, it is assigned to the picking team. Using the most efficient picking pattern, the picker receives a picking list of items, quantities, and storage locations at the facility to collect the order products from their respective areas. 3PLs understand that your goal is to minimize cost per order for fulfillment services. The picked items for each order are scanned and set aside for packaging.

Packing 


After the picker has collected all the products for the order, it’s time to get them securely packed up and ready for shipping. Items are compiled and placed – along with dunnage and any other extra materials – into the appropriate box or bag. The printed shipping label is then affixed. Take place at this stage to ensure what was ordered is what was picked. Checks include order accuracy, packaging appropriateness, and labeling accuracy.

Shipping


You may rely on your 3PL to manage parcel shipping on your behalf; if your volumes are modest, there could be a significant cost advantage to shipping under your 3PLs negotiated agreements with carriers. The 3PL will negotiate rates based on its aggregate volume across many different clients. 

3PL Fulfillment


While these are the primary functions of online order fulfillment, just about every aspect of the process is customizable. Many 3PLs offer additional value-added services such as kitting and packaging.

Your 3PL Provider


Learn more about how partnering with Taylor can help your business scale and how their non-siloed operation system, which is comprised of top-of-the-line logistics services, can help your supply chain. 

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Fulfillment, Taylor Information, Team Taylor, Warehousing
Taylor logistics Inc. warehouse awards

Taylor would like to congratulate the March 2020 monthly warehouse award winners from our team in Bellevue, NE. These awards are given based on productivity and QA points. Congrats to all!

As always, we are continuing to put the health and safety of all employees at the forefront of operations.

Most Improved- Forrest Mitchell



Picking- Forrest Mitchell & Mike Berry



Putaway- Freddy Marquez



Receiving- Roger Cozad



Loading- Nate Juhl



Safety Award- Josh Mather


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Fulfillment, Packaging, Team Taylor, Warehousing

As a supplier or manufacturer, you may need to manage regular demand, seasonal spikes, and special promotions with strategies that allow you to meet your customer’s in-store requirements without burdening your inventory pipeline. Custom displays, created in the warehouse just before shipping, are a proven working strategy. Not only do custom displays help with your inventory pipeline, but they are an essential marketing tool for several suppliers on retail floors.

A lot of displays have come through Taylor’s facilities across a variety of industries and a wide range of customers. From temporary projects to those that are more permanent, and they range in size from large pallet and floor displays to small counter-top displays. To evolve with special project demands, Taylor has launched a new team, the ISDT team or In-Store Design Team. This newly organized unit was created to be solely designated to the operation and building of point-of-purchase (POP) display units.

Along with the creation of the ISDT, Taylor offers other unique warehousing and fulfillment capabilities. Taylor has created a non-soiled operation system comprised of top of the line logistics services for their customers. Taylor’s transportation group, in alignment with their brokerage department, can manage inbound and outbound transportation using the most efficient modes. Taylor aligns all processes with design and technology allowing them to be there for you throughout the entire process to the retailer. 

Advantages of retail display building service:

Heightened Retail Visibility


One-Stop-Shop


Bold, Vibrant, Inviting Presence


Brand Awareness


Ready For Market

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Data, E-Commerce, Fulfillment, Warehousing
Taylor Logistics Fulfillment Services

Gathering the right data and calculating the right key performance indicators (KPI) is a no-brainer when it comes to improving fulfillment operations. KPIs help to identify bottlenecks, plan out warehouse operations, and measure overall customer satisfaction. If you partner with a third-party logistics provider (3PL) to outsource order fulfillment, they should be instrumental in helping establish relevant key performance indicators and provide you with detailed reports. Whether the goal is to improve efficiency, reduce delivery time, or increase levels of customer satisfaction, there is an appropriate metric to measure progress and performance. The next question is what specific fulfillment metrics you should put in place to enable further discussion, which is what we’ll look at next.

Customer Metrics


On-Time Shipping Percentage: This refers to the percentage of orders which are shipped on time. Because as many as 70% of customers are less likely to shop with a retailer who does not meet the promised delivery window, this is a significant number to track. 

Total Order Cycle Time: This refers to the average processing time from the moment a customer places an order to the moment that it is shipped. It includes all processes that fall within that window. As customers become more and more accustomed to same- and next-day delivery options, understanding how your operation performs and how you can improve your performance matters. 

Internal Order Cycle Time: This specifically refers to the amount of time that it takes for your operation to process an order internally. Measuring the moment an order is released into the warehouse for processing to the moment that it is shipped. 

Perfect Order Percentage: Perfect order percentage looks at several different metrics to determine what percentage of orders damage-free, ship on-time, complete, and with correct documentation. By understanding your perfect order percentage, you can take action to improve your order accuracy and other pain-points within your operation.

Inbound Metrics


Take note of what’s coming into your warehouse—if you don’t account for what’s coming in, it’s impossible to be accurate about what’s leaving. Specific KPI’s for inbound metrics include:

Dock-to-stock cycle

Inbound orders received

Lines received

Outbound Metrics


It’s all about ensuring a quick turnaround from receiving your products to shipping them off to where their destination. This is where contract packaging services come in to play for your warehouse. Specific KPI’s for outbound metrics include:

Order fill-rate

Orders picked per hour

Lines picked per hour

Line fill-rate

Outbound order fulfillment

Financial Metrics


Taking stock of pertinent financial metrics can make all the difference when it comes to determining your long-term strategy. Make sure that you’re cutting lesser-valued services and streamlining your operations where you can. Specific KPI’s for financial metrics include:

Distribution costs (as a sales percentage and per unit shipped)

Inventory days of supply

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Fulfillment, Warehousing

Warehouse: 

A warehouse typically refers to the establishment that a customer’s products are stored for a specified period. Warehouses generally are less high-energy than distribution centers. Sorting items, shipping them out, and replenishing stock are all a part of the daily functions. Distribution centers can act as warehouses too, but warehouses can’t double as a distribution center. Warehouses can be designed to receive goods directly from railways, airports, or seaports, and are usually equipped with forklifts and even cranes for moving and organizing products. 


Distribution Center (DC):

A distribution center is slightly more complex than a warehouse in that it’s a more high-velocity operation as opposed to a static warehouse. Meaning that a distribution center offers more services to clients, whether they’re internal or external. A DC is generally thought of as demand-driven. 


Fulfillment Center (FC):

A warehouse facility focused on order fulfillment in which the company fulfills its obligation to send a person a finished good. Typically refers to services of a store, either brick, and mortar or e-commerce: orders received, packaged, and shipped to end consumers. 


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