Flexible fulfillment and the supply chain

The necessity for a supply chain that was adaptable enough to prepare and send an order from any distribution centre or even from a physical shop gave rise to the idea of flexible fulfillment.

Because they can plan ahead for the space, stock, and resources needed to fulfil demand and keep prices down, businesses that operate with predictable sales volumes have more reliable logistics systems. Whether you like it or not, the e-commerce boom has made this reality obsolete. E-commerce logistics management is extremely tough since, in addition to being exposed to more unpredictable variables, demand is also more volatile, making order management more complex.

In this article, we'll go into further detail on flexible fulfillment and provide an example of how a more adaptable logistics system aids firms in achieving their core goal—delivering orders to consumers in any situation.

Flexible Fulfillment – what is it?

flexible fulfillment is a logistics approach that focuses on customising order preparation to a more sophisticated need so that these orders may be shipped from any warehouse, retail, or distribution centre.

Delivering any order at whatever cost is the main objective. On occasion, this may even be accomplished through individual shipments; businesses take a financial hit in order to avoid damaging their brand's reputation by cancelling orders owing to a shortage of inventory. It is crucial to design a flexible logistics strategy that can respond to shifts in demand because of this.

In the contemporary environment, where e-commerce dominates, many firms struggle to handle changes in demand, either because the order volume is lower than expected or because they can't adjust to a rapid increase in demand. Similarly, the internet has made it possible for sales channels to become more globally accessible than ever before, but it's not always feasible to physically store the complete inventory across all nations and areas. flexible fulfillment has evolved to enable businesses better adapt to the specific aspects of Logistics 4.0 in this dynamic, unpredictable environment.

The best way to find flexible fulfillment

Flexible logistics are essential to meeting client or other distribution hubs' requests. What does this mean, then? Orders that weren't originally assigned to warehouses or distribution locations must be able to be prepared.

The logistics strategy of businesses with several distribution centres dispersed across multiple geographies is continually changing and evolving. Consider a company that has a distribution centre in the US and one in Europe that is entirely responsible for processing and dispatching orders within that area. An item will be shown as sold out if it is not currently in stock at the given location. Therefore, the sale will be lost because the consumer won't be able to buy it.

As long as the item is really in one of the company's centres, a flexible fulfillment approach, on the other hand, will make the stock appear to be available in all nations. This will allow for the delivery of that order, although from a more remote location and at the expense of the order's profit, which will be smaller due to the increased cost of transportation. The only goal is to provide the consumer with the required product in whatever way possible.

One of the most crucial elements in the supply chain is flexibility. Being adaptable is associated with flexibility, and in the context of logistics, this implies having the storage infrastructure and operational procedures required to meet changing customer and market needs.

Another trend in this regard is the practise of "shipping from store," which involves using a physical store as a distribution hub. This implies that a retailer can package an order and send it to the client if the item is in stock. Another option is to use the location as an order pickup location, which is typical of omnichannel strategies.

Linking actual shops and warehouses with WMS

Flexible fulfillment entails managing a higher number of items, which increases the complexity of the procedure. A warehouse management system (WMS) that digitally integrates all of a company's distribution locations and enables complete product traceability is necessary to address this.

Let's look at an example case study: A single warehouse management system, our Easy WMS, is used by 3PL Casintra to oversee and manage all operations at its five warehouses in Spain. In this way, it can arrange 2,000 SKUs and collaborate online with clients owing to its cloud connection.

The management of stock in physical locations is another consideration when striving for flexible fulfillment and an agile supply chain. The Store Fulfillment module of Easy WMS synchronises picking, replenishment, transfers between stores, refunds, and real-time inventory control between the warehouse and physical stores. Any real store may function as a tiny distribution centre using this module to prepare and send orders to clients.