When it comes to e-commerce business, accuracy on orders is one of the most relevant indicators to track, as it is directly related to the trust between the brand and its customers. However, there is a lot of work to be done to prepare the order before it is delivered, and reducing common picking and packing problems is really challenging at times.
Improvement in order accuracy can be improved through correct systems and processes. It will also help provide satisfaction to the customers. And consistently improving this accuracy on the order through simple steps can surely be beneficial for each e-commerce business.
We’ll be discussing some steps to help improve order accuracy now.
Order Accuracy Definition
Order Accuracy simply means the percentage of orders from businesses that are processed without any error until it arrives at their destination. It is a very vital metric that affects customers’ satisfactory experience.
Sending incorrect orders to the customers does not only give negative feedback on the business, but is also a big waste of time, labor, and money.
Computing Accuracy Rate
Order accuracy is an important indicator that needs to be continuously monitored and improved.
To get it, you will be needing to find the exact number of orders you have successfully fulfilled, then have it multiplied by 100.
Accurate Rate = (Total orders fulfilled accurately/Total orders fulfilled) * 100
Let’s dive into an example. Imagine you have fulfilled 100 orders and 3 of them had problems. The order accuracy rate will be 97%. Here’s the computation:
Accurate Rate = (97/100) * 100
Accurate Rate = 97%
How To Identify a Good Accuracy Rate
Retail fulfillment includes very vital processes and human interaction. Thus, a 100% accuracy rate on orders may be possible, but every e-commerce’s goal is close to perfect.
The most successful Direct-to-Consumer (DTC) brand order accuracy is between 96% and 98%. In case your business is within that radius, you might as well try some steps to improve the accuracy to get your game up and running against your competitors.
If your store is reaching 95% or less, then it means that you need to make a way to step up your name and increase it further. This will help avoid customers being discouraged from buying again from your business.
Ways To Enhance Order Accuracy
Regardless of whether you are aiming to improve your order accuracy, or badly needing to increase it, finding ways to prevent any error with your order processing is really important. Here are some ways to enhance order accuracy rate:
- Set Your Order Accuracy Goals
Without solid instructions, it’s easy to reduce the accuracy of your order or remove it from the list of key indicators to track. Take the time to set optimization and improvement goals.
Start by understanding your current order accuracy rate, then followed by setting up sensible goals. When forming a team, be clear about your goals and how each team member can help improve your assignments.
- Work on Inventory Management Process Improvement
The inventory management process portrays a big role in maintaining a high accuracy rate for orders.
Order problems are often due to inadequate inventory in the warehouse, poor inventory management, or insufficient inventory to fulfill the order.
By investing in inventory management software and other tools, you can easily track your inventory, anticipate future needs, and automate tasks such as setting reorder points to prevent out-of-stocks.
- Enhancing Picking and Packing Process
Through the fulfillment process, most of the problems with the order happen during the picking and packaging stage. Therefore, take the time to assess the improvements in your distribution center to reduce error rates.
Working with your team will give you feedback on what you can improve, adjust, or automate with every fulfillment operation to reduce common mistakes such as wrong color and size.
Having organized slots can help with the improvement of accuracy in terms of orders. This is through preventing confusion of order pickers. You can also speed up order picking by avoiding guesswork about the location of a particular item.
- Execution of Correct Fulfillment Center Technology
Another way to enhance the order accuracy rate is by implementing fulfillment center technology, which surely helps in decreasing the amount of labor needed for the shipping process.
Here’s when Warehouse Management System (WMS) comes into place. This will let you automate the order processing process which will give a big positive impact on the speed and accuracy of orders.
Implementing WMS also provides complete visibility into real-time inventory and inventory levels, employee productivity, and in-warehouse fulfillment workflows.
Delivering orders accurately to new customers is one of the most important indicators of success in e-commerce. While you can adopt strategies to improve order accuracy, revenue is one of the easiest parts of an e-commerce brand’s business to outsource the fulfillment process to professionals.
Here at Chicago Shipper, we look forward to helping you save time on logistics operations and we want to provide you with the best fulfillment technology you can have for your business.
Learn more about how Chicago Shipper works and do not hesitate to reach out for additional inquiries.