Properly managing online orders can be a major headache for any ecommerce business. Delays and inaccuracies can derail your operations, leading to unhappy customers and lost revenue.
However, thanks to technology, order processing has evolved over the years making it more efficient, cost effective, and optimized. One key advancement in this area is order streaming.
Order streaming in ecommerce is an approach to warehouse order picking and management that can streamline your workflow, minimize errors, and speed up delivery times.
Let’s dive into how order streaming works, why it’s crucial for your business, and how it can elevate your ecommerce operations and boost customer satisfaction.
What is order streaming?
Not to be confused with entertainment streaming, order streaming is a cutting-edge approach to managing orders in ecommerce fulfillment centers—designed to enhance efficiency and reduce downtime. Unlike traditional batch processing, where orders are grouped and processed together, order streaming processes each order individually as it comes in.
Made possible with the help of a powerful warehouse management system (WMS), this method ensures a continuous stream of work for employees and optimizes omnichannel fulfillment. Therefore, eliminating operational lulls and allowing for real-time prioritization of orders, regardless of the sales channel they originate from.
Transitioning from traditional methods to order streaming
Transitioning from traditional warehouse management methods to modern order streaming techniques represents a significant evolution in ecommerce logistics. Traditional methods often lead to delays and inaccuracies, especially with increasing order volumes.
On the other hand, order streaming offers several benefits:
- Increased efficiency: By eliminating wait times associated with batch processing, order streaming speeds up the fulfillment process, resulting in quicker deliveries and happier customers.
- Enhanced accuracy: Real-time processing reduces errors by giving each order individual attention, ensuring correct picking and packing.
- Improved inventory management: Inventory levels are updated in real-time, preventing overselling and stockouts, and enabling better inventory planning.
- Scalability: Order streaming handles fluctuations in order volume effectively, managing peak periods without overwhelming the system. This flexibility is crucial for growing businesses and those with seasonal demand spikes.
- Cost reduction: Streamlining the fulfillment process reduces labor costs and minimizes the need for manual intervention. Automated systems can handle higher order volumes with fewer resources.
That being said, order streaming isn’t a necessity in all cases. For example, consider a fulfillment center vs a warehouse. You wouldn’t necessarily require the capabilities of order streaming in a traditional warehouse setting where inventory is primarily stored.
“We need partners that can move fast, and one of the most important things they can give us is time back. Being able to quickly get an inventory report or order status from the ShipBob dashboard is very convenient, and the speed at which they operate and receive inventory also helps us get our product into customers’ homes more quickly.”
How does order streaming compare with traditional processes?
Order streaming changes traditional warehouse management and ecommerce fulfillment by addressing the limitations of traditional methods like wave and waveless processing.
Wave processing
Wave processing is a conventional method where orders are grouped into batches, or “waves,” and processed together at scheduled times.
Wave picking or batch picking can lead to inefficiencies as orders wait for their wave to start, causing delays that can accumulate, especially during high-demand periods like holidays.
In contrast, order streaming processes each order as soon as it’s received, allowing for faster fulfillment and fewer bottlenecks.
Flexibility is another area where wave processing falls short. High-priority orders must wait until the next wave, which can be problematic for businesses requiring quick turnarounds, such as same-day delivery services. Order streaming, however, can prioritize urgent orders immediately.
Waveless processing
Waveless processing is a more modern approach, continuously picking orders without batching. While it resembles order streaming, it often lacks the same level of real-time data integration.
Order streaming updates inventory and order status instantaneously. For instance, an online store using order streaming can reflect stock levels immediately after each order, reducing the chance of selling out-of-stock items.
Both methods are scalable, but order streaming typically adapts better to sudden spikes in demand. If a flash sale increases orders tenfold, order streaming systems handle this surge more smoothly because they are designed for constant, real-time operation.
The impact of order streaming on the workforce
Order streaming enhances ecommerce warehousing operations, resulting in faster delivery times and improved customer satisfaction.
By processing orders in real-time, businesses can meet customer expectations for quick deliveries, fostering loyalty and repeat business. That being said, the benefits extend beyond customer satisfaction, significantly affecting logistics and ecommerce workforces in other ways.
Upskilling and new opportunities
When a company adopts order streaming technology, the workforce is required to upskill. Employees need to learn how to use these advanced systems, which creates new job opportunities and career paths.
For instance, workers who previously managed manual tasks might now focus on overseeing automated processes or analyzing data to optimize operations.
This shift not only provides employees with valuable new skills but also opens doors to more specialized roles within the logistics sector.
Integrating automation and human workforce
Balancing automation with human labor is key to a successful logistics operation. Automation can handle repetitive tasks like sorting and picking, while human workers are essential for roles that require judgment, problem-solving, and customer interaction.
A good approach here is using automated systems for bulk picking and deploying human workers for quality control and exception handling.
For example, while an automated system may handle the bulk of order picking, human workers can ensure packages are correctly labeled and address any issues that arise, adding a layer of quality control.
ShipBob’s leading approach to ecommerce order fulfillment
At ShipBob, we do our best to stand out in the ecommerce order fulfillment industry by keeping track of trending developments and adapting to innovative solutions within the supply chain.
We leverage advanced technology, offer a comprehensive fulfillment network, and provide detailed analytics to secure reliable order processing for businesses of all sizes.
Next-level fulfillment tech for efficient order fulfillment
ShipBob uses the latest third-party logistics (3PL) technology to streamline order fulfillment processes. Our advanced systems reduce manual errors and speed up operations, enhancing overall efficiency.
“Shipping 80,000 units during a short period of 5 weeks during the holiday season is something that a professional fulfillment partner is set up to handle, not a small business.”
Bryan Perla, CEO of Little ELF
Distribute at leisure with ShipBob’s unmatched fulfillment network
ShipBob’s extensive fulfillment network of over 50+ facilities allows businesses to distribute inventory to multiple strategically located warehouses across the world. This minimizes shipping times and removes the extra cost by reducing the distance between products and customers.
Be in the know at all times with reports & analytics
ShipBob offers comprehensive reporting and analytics tools for in-depth insights into fulfillment operations. These tools enable businesses to track performance metrics, costs, monitor inventory levels, and make data-driven decisions.
“Our 3PLs before ShipBob also were a total black box when it came to pricing — we’d just get one invoice with no line items, which made it impossible to work out what was what. With ShipBob, it’s very transparent billing and pricing, and now we know exactly what we’re being charged.”
Jonathan Byrt, Director & Co-founder at memobottle
Get started with ShipBob
Interested in unlocking seamless fulfillment and streamlined logistics with ShipBob? Connect with our team to get started with our outsourced fulfillment solution, implement our propriety WMS in your own warehouse, or leverage a combination of both for hybrid fulfillment.
Order streaming FAQs
Here are answers to commonly asked questions about order streaming.
How does order streaming work in ecommerce fulfillment?
Order streaming in ecommerce fulfillment processes orders in real-time, allowing businesses to handle and ship orders continuously rather than in batches. This approach reduces delays, increases accuracy, and enhances efficiency.
What role does order streaming play as part of warehouse management?
The continuous flow of order streaming minimizes delays and reduces errors. Integrating order streaming into warehouse management systems delivers timely picking, packing, and shipping. That makes deliveries faster and customers more satisfied.
Does order streaming impact delivery times and customer satisfaction?
Yes, order streaming significantly impacts delivery times and customer satisfaction. Real-time order processing reduces delays, leading to faster deliveries. Moreover, order streaming ensures inventory levels are up to date so that customers aren’t faced with unexpected out-of-stock situations after placing an order.
