How does the order fulfillment process impact inventory control decisions in warehouse operations?

Order
fulfillment services are automated processes that will process and fill orders for either
different areas of production or for customers. Because these services automatically distribute
product from warehouse to customer or from one internal bin to another, there must be very
strict oversight to ensure that reporting and inventory numbers are accurate.

Because of the automated order fulfillment process, inventory control decisions need to
include rigid requirements and measurements to ensure that everything is accounted for during
transportation. The issue that arises is that some orders can be processed and distributed prior
to being logged for inventory management. When that happens, there may be inaccurate quantities
for products in inventory.

Warehouse operations also have to be much quicker
in order to keep on top of the demand and immediate response time that is required of automated
order fulfillment. These systems necessitate rapid warehouse response times so that orders can
be distributed quickly. Additionally, there must be rigid reporting and standard operating
procedures to ensure that everything is tracked and tasks are performed in standard and
repeatable ways. These automated processes require quick turnaround and a high level of insight
and visibility into both the operations processes and inventory levels. If these things are met,
the automated fulfillment services can function properly.