Increasing Order Accuracy in Your Fulfillment Center
Scott Hothem • December 16, 2013
A fundamental pillar of a strong fulfillment center is accuracy. Order accuracy is the one tangible, logistical element that ties your company to your consumer. As soon as a customer places an order for your product, whether your fulfillment provider recognizes it or not (and they should), a bond is formed. You’ve spent too much time, money, and effort enticing customers to purchase, just to have the ball dropped when they actually open their wallets. Breaking this trust with your consumer can be absolutely detrimental to your business and your brand. Besides damaging your company’s reputation, it has a significant impact to your margins and bottom line. A study by MHI shows that 39% of retail companies face a key challenge with inaccurate order delivery dates.
Fulfillment accounts for 50-60% of your labor expenses, far and away the most intensive and expensive costs your distribution center will incur. However, the massive significance of fulfillment operations in keeping your customers satisfied more than justifies this steep investment. And as with any investment, keeping tabs on the efficiency of the fulfillment performance is the only way to earn a return and avoid unnecessary delay and expenditures.
Observing your distribution center during a shift can provide a handful of reasons for your poor order accuracy results. In particular, two areas are likely having the greatest impact on your accuracy, or lack thereof. Stocking activity is typically a major component in fulfillment errors. A study by intelligrated.com shows that stocking activity is responsible for nearly a quarter of all order fulfillment mistakes.
Ideally, stocking is done before picking, synchronizing, or slotting. Performing these activities in this particular sequence will reduce the instances of having unavailable merchandise. Further, providing more slots for high-velocity items and separating similar type items from each other are two easy ways to reduce fulfillment errors. According to a Supply Chain Quarterly survey, stocking practices were a leading factor in 76% of companies with accuracy issues.
In addition to stocking activity, picking motions pose a tremendous threat to order accuracy. Creating the most efficient picking motion possible will alleviate many of the mistakes within your supply chain. Items that are difficult to reach or heavier products that are organized incorrectly increase the likelihood of inaccurate picking. Creating distinct zones for different types of products and balancing such zones with the appropriate equipment can reduce these concerns. Optimizing the picking protocol for a mid-sized retailer can improve order accuracy by 34%, as stated in a 2012 case study by Logistics Planning.
Given the urgency and utmost importance to deliver the correct order to your customers, there are proven methods you can put in place to increase your order accuracy. Partnering with a qualified fulfillment provider can be an effective way to enhance your order accuracy and has a direct correlation to your customer service, brand reputation, and bottom line.
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Retail compliance is the process of meeting a retailer's specific shipping, labeling, packaging, and delivery requirements. By following these requirements, brands can avoid costly chargebacks, improve supply chain efficiency, and build stronger relationships with retail partners. Key Takeaways Retail compliance ensures products are shipped according to each retailer's unique requirements. Non-compliance can lead to chargebacks, shipment delays, and strained retailer relationships. An experienced 3PL can help brands maintain compliance while simplifying omnichannel fulfillment. Why Is Retail Compliance Important? As brands grow, selling through major retailers often becomes an essential part of their distribution strategy. However, every retailer has its own standards for how products should be prepared, labeled, shipped, and delivered. These requirements—commonly referred to as retailer routing guides or vendor compliance standards—are designed to improve efficiency throughout the supply chain. Failure to follow these guidelines can result in costly penalties, delayed shipments, rejected deliveries, or additional handling fees. Over time, repeated compliance issues can also damage relationships with retail partners. By prioritizing retail compliance, businesses can reduce operational risk while ensuring products reach store shelves on time and as expected. What Does Retail Compliance Include? Retail compliance encompasses a wide range of shipping and fulfillment requirements that vary by retailer. These standards may include barcode labeling, carton labeling, pallet configuration, Advance Ship Notices (ASNs), routing instructions, packaging specifications, appointment scheduling, and delivery windows. Because every retailer has different expectations, maintaining compliance requires consistent warehouse processes, attention to detail, and the ability to adapt to changing requirements. Businesses working with multiple retail partners often rely on standardized fulfillment processes and technology to help ensure every shipment meets customer-specific specifications. What Happens If You Don't Meet Retail Compliance Requirements? Even small mistakes can become expensive. Incorrect labels, missed shipping windows, inaccurate documentation, or improperly configured pallets may result in retailer chargebacks or rejected shipments. These issues not only increase costs but also create additional work for customer service and warehouse teams. Beyond the immediate financial impact, repeated compliance failures can affect supplier performance ratings and make it more difficult to strengthen relationships with key retail partners. For growing brands, avoiding these issues is critical to maintaining operational efficiency and protecting profitability. How Can Businesses Improve Retail Compliance? Successful retail compliance starts with well-defined warehouse processes and the right technology. Accurate inventory management, standardized picking and packing procedures, barcode verification, and integrated shipping systems all help reduce errors before products leave the warehouse. Regular employee training and ongoing quality checks further improve consistency. Many businesses also partner with an experienced third-party logistics (3PL) provider that specializes in retail fulfillment. A knowledgeable 3PL understands retailer-specific requirements and can adapt warehouse operations to meet changing compliance standards. How Does Technology Support Retail Compliance? Modern warehouse technology helps automate many of the processes required for compliant retail shipments. Warehouse Management Systems (WMS) can verify inventory accuracy, manage order workflows, and support labeling requirements, while Transportation Management Systems (TMS) help ensure shipments follow retailer routing instructions. Barrett Distribution utilizes a Tier 1 Warehouse Management System, transportation management software, and customer reporting tools to support accurate, efficient fulfillment operations. These technologies provide real-time visibility into inventory and order activity while helping customers manage complex omnichannel supply chains. Why Partner with a 3PL for Retail Compliance? Managing retail compliance internally can become increasingly complex as a business grows. An experienced 3PL provides the operational expertise, technology, and standardized processes needed to support multiple retailers while maintaining consistent fulfillment performance. This allows brands to focus on growing their business instead of managing constantly changing retailer requirements. Barrett Distribution supports omnichannel fulfillment by managing both business-to-business retail distribution and direct-to-consumer ecommerce fulfillment. The company also provides value-added services such as labeling, palletization, retail ticketing, ASN management, and vendor compliance support to help customers meet retailer expectations. Is Retail Compliance Worth the Investment? Absolutely. While maintaining compliance requires ongoing attention to detail, the long-term benefits far outweigh the costs. Businesses that consistently meet retailer requirements are better positioned to avoid chargebacks, improve operational efficiency, strengthen customer relationships, and scale into additional retail channels. Whether you're shipping to a handful of regional retailers or managing nationwide distribution, retail compliance is an essential part of building a reliable and efficient supply chain. Frequently Asked Questions What is retail compliance? Retail compliance is the process of meeting a retailer's specific shipping, labeling, packaging, and delivery requirements to ensure products are received without delays or penalties. Why is retail compliance important? Retail compliance helps businesses avoid chargebacks, reduce shipment delays, improve operational efficiency, and maintain strong relationships with retail partners. What happens if a company doesn't meet retail compliance requirements? Failure to comply with retailer standards can result in chargebacks, rejected shipments, delayed deliveries, additional handling fees, and lower supplier performance ratings. Can a 3PL help with retail compliance? Yes. Experienced third-party logistics providers, including Barrett Distribution, help businesses manage retailer-specific requirements through standardized fulfillment processes, advanced warehouse technology, and value-added services that support compliant retail distribution.
Businesses should consider storing inventory in California when they need faster delivery to West Coast customers, want to reduce shipping costs, import products through Pacific ports, or are expanding into western U.S. markets. A strategically located California warehouse can improve transit times, strengthen supply chain resilience, and support both ecommerce and retail fulfillment. Key Takeaways Storing inventory in California helps businesses reach West Coast customers faster while reducing shipping costs. California is an ideal distribution hub for importers, ecommerce brands, and companies expanding into western markets. Partnering with an experienced 3PL provides scalable warehouse space, advanced technology, and omnichannel fulfillment capabilities. Why Should Businesses Store Inventory in California? As customer expectations for fast, affordable shipping continue to grow, warehouse location has become a strategic business decision. If a significant portion of your customers are located on the West Coast, storing inventory in California can reduce delivery times and improve the overall customer experience. California is home to one of the largest consumer markets in the United States and serves as a gateway for both domestic and international distribution. Positioning inventory closer to customers allows businesses to fulfill orders more efficiently while reducing transportation costs. Whether you're supporting ecommerce growth, replenishing retail stores, or expanding into new markets, California offers the infrastructure needed to build a more responsive supply chain. When Does It Make Sense to Add a California Warehouse? Not every business needs a West Coast distribution center, but there are several situations where adding one can create measurable value. If your business ships a high volume of orders to customers in California and neighboring states, a regional warehouse can significantly shorten transit times. Companies importing products from Asia may also benefit from storing inventory closer to major ports, reducing inland transportation costs and simplifying inbound logistics. A California warehouse also becomes valuable as businesses grow beyond a single fulfillment location. Expanding to a multi-node distribution strategy helps position inventory closer to customers, improving delivery performance while reducing reliance on expedited shipping. How Does California Improve Delivery Speed? California's location makes it an ideal hub for serving customers throughout the western United States. Rather than shipping every order from a centralized warehouse on the East Coast or in the Midwest, businesses can fulfill orders from inventory already positioned closer to demand. This often translates into faster ground shipping, more predictable delivery windows, and lower transportation expenses. For ecommerce brands, these improvements can help meet customer expectations while maintaining profitability. Why Is California Important for Importers? California is home to some of the nation's busiest ports, making it a natural entry point for imported goods. Businesses sourcing products from Asia can often reduce transportation complexity by receiving inventory closer to where it first enters the country. This can shorten the time between arrival and availability for fulfillment while creating opportunities to optimize inventory flow. For companies managing global supply chains, a California warehouse can play an important role in improving overall distribution efficiency. Can a California Warehouse Support Both Retail and Ecommerce Fulfillment? Yes. Most growing businesses fulfill orders across multiple sales channels, including ecommerce websites, online marketplaces, wholesale customers, and retail partners. An experienced third-party logistics provider can manage these channels from a single fulfillment operation while maintaining inventory visibility and operational consistency. Barrett Distribution specializes in omnichannel fulfillment, supporting both business-to-business retail distribution and direct-to-consumer ecommerce fulfillment through customized warehouse solutions designed around each customer's operational requirements. The company's nationwide network includes facilities in California, allowing businesses to strategically position inventory closer to West Coast customers. How Does Technology Improve California Warehouse Operations? Modern fulfillment depends on technology that provides visibility throughout the supply chain. Warehouse Management Systems (WMS), transportation management software, and real-time reporting help businesses monitor inventory, track orders, and measure operational performance from a single platform. Barrett has invested in a Tier 1 Warehouse Management System, customer dashboards, transportation management technology, and embedded analytics that provide customers with real-time insight into inventory, orders, and fulfillment performance. These tools help businesses make informed decisions while maintaining inventory accuracy and service levels across multiple warehouse locations. Is a California Warehouse Right for Your Business? If your customers are concentrated on the West Coast, your products are imported through Pacific ports, or you're looking to improve delivery speed without increasing shipping costs, a California warehouse may be the right next step. Regional inventory placement can strengthen supply chain performance, improve customer satisfaction, and provide the flexibility needed to support continued growth. When paired with an experienced logistics partner, a California fulfillment center becomes more than just a storage location—it becomes a strategic asset that supports long-term business success. Frequently Asked Questions When should I store inventory in California? Businesses should consider storing inventory in California when they serve a large West Coast customer base, import products through Pacific ports, or want to reduce shipping costs and delivery times. Does storing inventory in California reduce shipping costs? Yes. Positioning inventory closer to West Coast customers can reduce shipping distances, lower parcel costs, and decrease reliance on expedited transportation. Can a California warehouse support both B2B and ecommerce fulfillment? Yes. Many third-party logistics providers, including Barrett Distribution, support both retail distribution and direct-to-consumer ecommerce fulfillment from California facilities. What types of businesses benefit from California warehousing? Ecommerce brands, consumer products companies, apparel businesses, health and beauty brands, food and beverage companies, and retailers can all benefit from California's strategic location and transportation infrastructure. Barrett supports customers across these industries through customized logistics solutions.
Reducing fulfillment errors starts with implementing standardized processes, leveraging warehouse technology, training employees consistently, and partnering with an experienced third-party logistics (3PL) provider. By improving inventory accuracy and quality control, businesses can minimize costly mistakes while delivering a better customer experience. Key Takeaways Standardized warehouse processes and employee training help reduce picking, packing, and shipping errors. Warehouse technology, including a Warehouse Management System (WMS) and barcode scanning, improves inventory accuracy and order visibility. Partnering with an experienced 3PL can help businesses achieve consistent fulfillment performance while scaling operations efficiently. Why Are Fulfillment Errors So Costly? Even small fulfillment mistakes can have a significant impact on a business. Shipping the wrong item, sending an incomplete order, or delivering a package late often leads to additional shipping costs, product returns, customer service inquiries, and dissatisfied customers. As order volumes grow, these issues become more difficult to manage without the right processes in place. Businesses that prioritize fulfillment accuracy not only reduce operational costs but also strengthen customer trust and brand loyalty. What Causes Fulfillment Errors? Most fulfillment errors can be traced back to process gaps rather than isolated mistakes. Inaccurate inventory records, manual data entry, inconsistent picking methods, poor warehouse organization, and insufficient employee training all increase the likelihood of errors. As businesses expand into multiple sales channels—including ecommerce, retail, wholesale, and marketplaces—the complexity of fulfillment grows. Without standardized workflows and real-time inventory visibility, even well-managed operations can experience declining accuracy. Identifying the root cause of fulfillment errors is the first step toward building a more reliable operation. How Can Warehouse Technology Improve Fulfillment Accuracy? Technology plays a critical role in reducing fulfillment errors by replacing manual processes with automated workflows and real-time visibility. A modern Warehouse Management System (WMS) helps ensure associates pick the correct products, maintain accurate inventory records, and track every stage of the fulfillment process. Barcode scanning further improves accuracy by verifying products before they are packed and shipped. Barrett Distribution utilizes a Tier 1 Warehouse Management System along with transportation management software, customer dashboards, and embedded analytics to provide customers with real-time visibility into inventory, orders, and operational performance. These tools help businesses make faster decisions while maintaining high levels of inventory accuracy. Why Are Standardized Warehouse Processes Important? Technology alone cannot eliminate fulfillment errors. Consistent operational processes are equally important. Standardized receiving, putaway, picking, packing, quality inspections, and shipping procedures help ensure every order is handled the same way regardless of volume or seasonality. Clear workflows also make employee training more effective and reduce the likelihood of human error. Experienced fulfillment providers continually evaluate their processes to identify opportunities for improvement, helping maintain consistent service levels as customer demand changes. How Does Employee Training Reduce Fulfillment Mistakes? Warehouse associates are essential to fulfillment accuracy. Comprehensive onboarding, ongoing training, and clear performance expectations help employees understand operational procedures while reinforcing quality standards. Regular coaching and continuous improvement initiatives can further reduce errors by addressing process issues before they become recurring problems. Creating a culture where accuracy is valued alongside productivity often leads to stronger long-term operational performance. Why Is Inventory Accuracy Essential? Accurate inventory is the foundation of successful order fulfillment. When inventory records don't match what's physically available, businesses risk overselling products, delaying shipments, or shipping incorrect items. Maintaining inventory accuracy through regular cycle counts, real-time inventory updates, and disciplined warehouse processes helps prevent these issues before they affect customers. Greater inventory visibility also allows businesses to make more informed purchasing, forecasting, and replenishment decisions. Can a 3PL Help Reduce Fulfillment Errors? For many businesses, partnering with an experienced third-party logistics provider is one of the most effective ways to improve fulfillment accuracy. A qualified 3PL combines proven warehouse processes, experienced operations teams, advanced technology, and continuous improvement programs to help reduce errors while supporting business growth. Barrett Distribution emphasizes operational excellence through standardized processes, quality management, technology investments, and continuous improvement initiatives designed to improve inventory accuracy and fulfillment performance. The company also supports omnichannel fulfillment, allowing businesses to manage both retail and direct-to-consumer orders through customized logistics solutions. How Can Businesses Continuously Improve Fulfillment Performance? Reducing fulfillment errors isn't a one-time project—it's an ongoing process. Leading organizations regularly monitor key performance indicators (KPIs), review error trends, and identify opportunities to improve warehouse operations. By analyzing fulfillment data and refining processes over time, businesses can maintain high accuracy even as order volumes increase. Working with a logistics partner that prioritizes continuous improvement can help companies adapt to changing customer expectations while maintaining consistent service quality. Frequently Asked Questions What is the most common cause of fulfillment errors? Common causes include inaccurate inventory records, manual processes, inconsistent warehouse procedures, and insufficient employee training. How does a Warehouse Management System reduce fulfillment errors? A Warehouse Management System improves inventory accuracy, guides warehouse associates through standardized workflows, and verifies products using barcode scanning to reduce picking and shipping mistakes. Can outsourcing fulfillment improve order accuracy? Yes. An experienced 3PL can provide standardized processes, advanced warehouse technology, and dedicated operations teams that help reduce fulfillment errors while supporting business growth. Barrett Distribution offers customized omnichannel fulfillment solutions designed to improve operational accuracy and efficiency. Why is inventory accuracy important for fulfillment? Accurate inventory helps prevent stock discrepancies, backorders, incorrect shipments, and delayed deliveries while improving customer satisfaction and operational efficiency.
