Fulfillment Batching: Your Guide to Maximizing Efficiency for Business

Imagine you are dining in a restaurant at rush hour with several orders flying in and chefs working tirelessly. Keep that in mind and think about these scenarios:

Scenario 1: A kitchen where every dish and order is individually prepared from start to finish before moving on to the next.

Scenario 2: A kitchen where similar dishes and orders are grouped and prepared in batches.

As a hungry customer, which of the above would you choose? Unsurprisingly, most will choose scenario 2  where the chefs optimize their cooking process and get dishes to customers fast. This is exactly what ideal order fulfillment batching looks like.

Whether you’re a growing brand or a third-party logistics (3PL) provider, the ability to ”clear lines” efficiently is needed for you to compete and stay ahead of competition.

In this article, we'll explore what fulfillment batching entails and provide a step-by-step guide to implement it in your operations.

What is fulfillment batching?

Fulfillment batching is a strategic approach to order processing in which multiple orders are grouped and fulfilled together based on shared characteristics. It allows items for multiple orders to be picked in one sweep, thereby reducing time spent on individual orders and increasing overall productivity.

Fulfillment batching plays a crucial role in optimizing order processing by streamlining operations and improving efficiency. By processing multiple orders together, businesses can reduce handling time and labor costs, minimize errors, and enhance overall productivity. It also enables better resource allocation as orders are processed in a more organized and systematic manner.

Why Use Batching: Fulfillment Gone Wrong Case Study

Many brands and 3PLs struggle to fulfill different consumer orders efficiently, a common consequence of not using fulfillment batching. A prime example of a business constantly falling short of great order fulfillment is SKIMS.

There are several complaints online, like this shopper's TikTok video calling out the brand for sending another customer’s orders and personal information to them. Sharing your customer’s personal information with a third-party—in other words, a stranger—without their consent is prohibited under privacy laws such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States.

Another customer expressed frustration about SKIMS on Reddit for not shipping their order on time. Despite spending nearly $400 on various items, they only received a single clearance item while the rest of their order remained pending with no changes for multiple days. A commenter in the thread confirmed that SKIMS ships orders from separate warehouses at different times, leading to such issues.

Many other customers reported receiving their orders—even after getting a refund. SKIMS is at risk of serious financial consequences for inefficient ecommerce fulfillment. Per the Federal Trade Commission (FTC), customers aren’t obligated to return mis-delivered packages; they can legally keep them as gifts, which is a direct loss for the brand.

SKIMS' problems stem from a lack of inventory visibility and an inefficient order fulfillment process. How can you avoid these issues? The best option is to practice tried-and-true strategies like fulfillment batching and implement comprehensive fulfillment software like Extensiv.

Top 4 Benefits of Fulfillment Batching

Why do some brands deliver products fast and enjoy glowing reviews while others drown in negative reviews? The difference is an efficient supply chain supported by strategic practices like fulfillment batching.

This section highlights four benefits of fulfillment batching and demonstrates how it can elevate your ecommerce business or stand out as a 3PL warehouse:

1. Increased Operational Efficiency

Fulfillment batching optimizes warehouse operations by allowing pickers to collect items for multiple individual orders in a single trip and group orders based on shared characteristics and efficiently. A study by Supply Chain Management Review reported a 10% increase in the use of batch picking, from 29% in 2022 to 39% in 2023. This efficiency is beneficial for ecommerce operations with a high volume of small, multi-item orders.

2. Reduced Fulfillment Costs

When warehouses pack orders in batches, they use packing materials more efficiently, thereby reducing waste and labor expenses (which is often the largest cost in fulfillment operations). This is very useful to brands and 3PLs during peak seasons when labor is scarce and expensive.

3. Improved Order Fulfillment Accuracy

An efficient batch picking process can improve order fulfillment accuracy. Batching creates room for quality control checkpoints—which is impractical for a single-order picking system. Additionally, integrating zone picking, where pickers are assigned specific areas within the warehouse, can enhance efficiency and accuracy by allowing workers to become familiar with their designated zones.

4. Enhanced Consumer Satisfaction

Fulfillment batching impacts consumer satisfaction as it ensures speedy order processing and shipping. In this age of same-day and next-day delivery expectations, rapid order processing is non-negotiable. Improved accuracy from batching promotes faster delivery and fewer returns and complaints.

Make the Most of Fulfillment Batching with Extensiv

Extensiv's innovative software streamlines fulfillment batching for ecommerce brands and 3PL warehouses alike.

Supporting the unique requirements and workflows of different brands, Extensiv's warehouse management tool for private warehouses can help you automate and validate all orders fulfilled. This mobile/tablet-first technology provides inventory visibility and accuracy needed to grow your business from anywhere.

For 3PLs, we also offer Extensiv 3PL Warehouse Manager featuring a dedicated built-in shipping platform to manage high-volume, small package fulfillment. Say goodbye to error-prone manual processes and hello to seamless ecommerce and omnichannel fulfillment. Designed around 3PL best practices, Small Parcel Suite enhances order accuracy, boosts operational efficiencies, elevates customer service, and slashes shipping costs.

Our cloud-based WMS platforms automate every step from packing to shipping so your business can scale without compromising on quality. Extensiv’s solutions are packed with other resourceful features like real-time inventory visibility, easy integration with major platforms, and valuable performance insights.

Book a demo to discover how Extensiv can improve your fulfillment process, prevent inefficient batching, and boost your success!