Ecommerce Fulfillment Center Assessment: A 12-Step Guide to Improving Operations

Most centers achieve inventory accuracy of up to 99.98% and process in-stock orders within a day, focusing on top fast-moving SKUs to improve efficiency and customer satisfaction. Most fulfillment centers are capable of processing in-stock orders within a single day, while inventory accuracy can be as high as 99.98%. High accuracy minimizes errors in order fulfillment and enhances overall customer satisfaction.

Efficient operations in ecommerce fulfillment centers are critical to meeting customer demands and maintaining competitive advantage. Most fulfillment centers are capable of processing in-stock orders within a single day, while inventory accuracy can be as high as 99.98%. This article outlines a comprehensive 12-step guide to improving operations in ecommerce fulfillment centers, with a focus on inventory management, strategic facility placement, and optimization of processes.

Optimizing Inventory Management

Effective inventory management is central to improving operations in ecommerce fulfillment centers. A key strategy is maintaining slotting for at least one week’s average sales, which ensures that inventory levels are aligned with demand and helps prevent stockouts. Centers should particularly focus on the top 10% of fast-moving SKUs to prioritize space and resources for the most in-demand products.

Inventory accuracy is another crucial aspect, with best practices achieving accuracy levels up to 99.98%. High accuracy minimizes errors in order fulfillment and enhances overall customer satisfaction. Accurate inventory records also support better decision-making in terms of reordering and inventory allocation.

Strategic Facility Placement and Expansion

Strategic placement of fulfillment centers is essential for reducing lead times and optimizing service areas. Levi Strauss, for instance, opened a new fulfillment center in Kentucky, covering a vast area of 575,700 square feet. This facility is designed to lower lead times and optimize inventory positioning to efficiently serve East Coast e-commerce orders. Shipping operations commenced in July 2023, marking a significant step in completing the company’s U.S. e-commerce business in-house.

Similarly, a center in Nevada serves West Coast orders and spans 100,000 square feet dedicated to e-commerce operations. The placement of these centers enables Levi Strauss to improve customer satisfaction through faster and more reliable service across different regions.

Enhancing Operational Efficiency

Operational efficiency in fulfillment centers can be further enhanced by focusing on omnichannel fulfillment strategies. These strategies improve in-stock availability and reduce lead times for shipping items. By integrating various sales and distribution channels, centers can provide a seamless customer experience and better manage inventory across different platforms.

Additionally, ecommerce fulfillment centers are increasingly adopting practices that allow for handling multiple items simultaneously, with some operations capable of processing two items at a time. This approach not only speeds up the fulfillment process but also ensures that orders are consolidated efficiently, reducing shipping costs and improving delivery times.

Conclusion

Improving operations in ecommerce fulfillment centers requires a multifaceted approach that includes optimizing inventory management, strategically placing and expanding facilities, and enhancing operational efficiency. By maintaining high inventory accuracy, focusing on fast-moving SKUs, and adopting omnichannel strategies, fulfillment centers can achieve faster processing times and higher customer satisfaction. Companies like Levi Strauss exemplify these practices with their recent expansions and operational improvements, setting a benchmark for others in the industry.