Order processing is the chore or work-flow related with the packing, picking and delivery of the ordered goods to a shipper and is an important factor in order fulfillment. Order fulfillment operations or facilities are also commonly known as " Distribution centers" or "DCPs". There are wide variations in the degree of automation associated with this process, ranging from full automation to simply being able to electronically scan barcodes and date and time stamp each product, obtain an invoice and then be able to electronically enter data into a computer. This is a very labor intensive process that can best be handled by an experienced company that has years of experience in providing pick and pack services at an affordable rate. These type of operations are also highly competitive in the marketplace and therefore many companies turn to a company that is able to offer them an efficient and effective pick and pack service. A lot of these companies are also able to provide additional onsite and offshore fulfillment services.
The P&L or the financial part of the supply chain represents the money being spent to buy raw materials or over-stock products and for which customers have agreed to pay for a specific amount. This money is then invested in generating new sales. In order to make sure that warehouses are filled and that there is sufficient inventory on hand, companies that stock thousands of different kinds of products, thousands of different varieties of products is needed. It requires a sophisticated system in order to determine how much inventory is actually in-stock and still have room for emergency replenishment or if a particular category of merchandise is not moving.
Companies using automated warehousing and pick and pack processes are able to better manage their inventory levels because they are able to more accurately forecast future demand. By using sophisticated supply chain management systems and computer applications, companies are better equipped to respond quickly to customer demand. Using this information, the warehouse workers can ensure that inventories are in line with current demand by anticipating how orders will be fulfilled and how quickly supplies will be delivered to customers.