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Product Fulfillment - manufacturing, warehousing, assembly and delivery

2004-08-31
 

Product Fulfillment is the process of product manufacturing, warehousing, assembly, quality control and delivery of product directly to customers without the finished product going back through the company that has created the product. Customer can place orders via the Web, e-mail, telephone or fax.

Contract Manufacturing Manufacturing and fulfillment requires a substantial investment in time, personnel, and capital. Large companies outsource both manufacturing and fulfillment. Fulfillment vendors work closely with contract manufacturers of their clients' choice. Supply chain management software are used for the coordination between manufacturers and fulfillment companies.

Kitting & Assembly Fulfillment vendors kit or assembly components from manufacturers to fulfillment the customers' orders. There are two common forms of kitting: pre-kited item or on-demand kit. Pre-kited item or off-the-shelf-kits are assembled from mass produced components and are held in stock. This gives the clients the lowest unit cost and gives the fulfillment vendors the quickest order process response time. On-Demand kit or kit-on-the-fly is only assembled when the order is presented. This form of kitting is most often used with on demand printing where the components are not drawn from inventory, but rather printed as needed.

Warehousing Physical goods are stored in a storage. Valuable items are usually stored in secure storage. While fulfillment companies have their warehouse and distribution centers, small businesses can store goods in their garages or basements.

Inventory Management The activities of inventory management involves in identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status.

Order Processing & Shipping Goods are delivered to customers in various shipping methods, ground, overnight, and etc. Customers specify shipping methods when they place their orders and the fulfillment company usually can adjust the shipping methods of the delivery. To ensure smooth operations, ordering process is customized to fit unique business needs of each client.



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