Ecommerce – pick, pack dispatch fulfillment

Maximising E-Commerce Fulfillment Efficiency: Understanding Daily Order Dispatch Capacity

In the fast-paced world of e-commerce, order fulfillment is the lifeblood of customer satisfaction and ultimately your business success. How many orders can an e-commerce business dispatch per day? The answer varies widely depending on operational processes, product types, software integrations, and even the niche or industry in which the business operates. This article provides an in-depth look at the factors that influence daily dispatch capacity, examines different business niches, and highlights key statistics from reliable sources.

1. The Importance of Fulfillment Efficiency

Meeting Customer Expectations

Modern consumers demand quick, accurate deliveries. According to a 2022 survey by the National Retail Federation (NRF), nearly 70% of online shoppers are less likely to shop again if they receive a delayed or inaccurate order. Efficient dispatch processes directly impact repeat purchases and customer loyalty.

Competitive Advantage

In a crowded e-commerce market, fulfillment speed can be a differentiator. Fast, reliable shipping is often the deciding factor that convinces a customer to choose one retailer over another.

2. Key Factors Affecting Daily Dispatch Capacity

2.1 Workforce and Labor Management

• Staffing Levels: The number of trained pickers and packers on the floor dictates how quickly orders can be processed.
• Seasonality: Peak seasons (e.g., Black Friday, holiday shopping) require additional temporary or flexible labor to meet surging demand.
• Employee Training: Well-trained staff can reduce errors and increase picks per hour, boosting overall output.

2.2 Warehouse Layout and Size

• Picking Routes: Efficient layouts minimise travel time for pickers, allowing them to complete more orders in less time.
• Storage Methodologies: Utilising high-density storage, organised SKUs, and clear labeling can significantly speed up picking rates.

2.3 Technology and Automation

• Warehouse Management Systems (WMS): A robust WMS can automate tasks like order consolidation, pick-path optimisation, and real-time inventory management, improving dispatch times.
• Picking Technologies: Tools such as pick-to-light, voice picking, or autonomous mobile robots can dramatically increase picking speed and accuracy. According to a 2021 report by MHI (Material Handling Industry), automation solutions can increase picking productivity by up to 70%.

2.4 Product Complexity

• Size and Weight: Large or bulky items often require special handling or multiple staff members, slowing dispatch.
• Fragility: Delicate products (e.g., glassware, electronics) require careful packing, adding steps to the workflow.
• SKU Diversity: A high SKU count means more picking variety; complex orders with multiple SKUs take longer to pack.

3. Software Tools & Automation

3.1 Warehouse Management Systems (WMS)

A feature-rich WMS provides:

• Real-time Inventory Visibility: Prevents overselling and ensures accurate picking.
• Optimised Order Routing: Groups similar orders or SKUs together to reduce travel time.

3.2 Enterprise Resource Planning (ERP) Integration

When your ERP system integrates seamlessly with your WMS and e-commerce platform (Shopify, WooCommerce, Magento, etc.), you reduce manual data entry and synchronisation delays. This can significantly cut down on fulfillment bottlenecks.

3.3 Automated Packing Solutions

Automated packing systems can fold, seal, and label parcels, reducing repetitive tasks. While these solutions can be capital-intensive, they can pay off quickly for businesses shipping thousands of parcels daily.

4. The Role of Processes & Workflow

4.1 Batch Picking vs. Order-by-Order Picking

• Batch Picking: Grouping similar SKUs across multiple orders increases efficiency, especially for businesses with many small orders.
• Order-by-Order: Ideal for high-value or customisable products that require special attention per order.

4.2 Quality Control and Error Reduction

• Double-Checking: Implementing scanning or barcoding systems helps ensure correct items are picked. A mis-ship or out-of-stock scenario not only costs extra shipping but also harms brand reputation.

4.3 Shipping Cut-Off Times

• Earlier vs. Later Cut-Offs: Later cut-off times are customer-friendly but can constrain your dispatch processes if you’re not prepared with adequate staffing and efficient workflows.

5. Product Type & Packaging Requirements

5.1 Perishables and Cold Chain

Food and pharmaceutical products often require temperature-controlled environments and faster turnarounds to maintain product integrity.

5.2 Apparel and Fast Fashion

Typically easier to pack, but returns rates can be high. Rapid dispatch is crucial to meet fast fashion’s ever-shortening product cycles. According to Statista, the average fast-fashion brand may dispatch up to 10,000 orders per day during peak seasons if fully optimised.

5.3 Customised or High-Value Items

Jewelry, custom-printed merchandise, or electronics with multiple components can slow the process, as they need additional QA steps or specialised packaging.

6. Industry-Specific Considerations

1. Electronics Retailers
   
   • Complex SKU Management: Many models and parts.
   • Higher Fragility Concerns: Extra time for testing or secure packaging.

2. Health & Beauty
   
   • Regulatory Labeling: Requires correct placement of labels like batch numbers and expiration dates.
   • Small, Lightweight Items: Generally quick to pack, but volume can be high.

3. Automotive Parts
   
   • Large, Odd-Shaped Items: May require specialised storage and handling.
   • Detailed SKU Identification: Mistakes can be costly given the variety of parts.

4. Luxury Goods
   
   • Branding: Premium unboxing experiences can slow dispatch due to custom packaging.
   • Security Concerns: Extra verification steps to prevent fraud or theft.

7. Practical Benchmarks & Industry Statistics

• Average Picks per Hour:
  – A standard, manual picking environment often manages 50–80 picks per hour.
  – Automated environments can exceed 120–200 picks per hour, according to the 2022 Council of Supply Chain Management Professionals (CSCMP) report.
  
• Order Dispatch Volume:
  – Small to medium enterprises (SMEs) with minimal automation might handle anywhere from 100 to 500 orders per day.
  – Larger, highly automated fulfillment centers for fast-moving consumer goods (FMCG) or fast fashion could process 5,000 to 10,000+ orders per day.
  
• Error Rates:
  – Manual processes can see error rates of 1–3%.
  – Automated scanning and sorting solutions can reduce errors to below 0.5% (MHI study, 2021).
  

8. Enhancing Daily Dispatch Capacity

1. Refine Your Warehouse Layout
   
   • Implement ABC analysis (A items = fast-moving SKUs, B items = moderate, C items = slow) to position the most common picks in accessible zones.

2. Invest in Training
   
   • Cross-train staff so they can handle multiple roles (picking, packing, returns), adding flexibility during peak times.

3. Adopt Scalable Technology
   
   • Start with a robust WMS and add automation in phases (conveyor belts, sorting systems, etc.) as your order volume grows.
   • https://shiphero.com/
   • https://storefeeder.com/

4. Optimise Picking Strategies
   
   • Evaluate batch vs. wave vs. zone picking methods and choose what suits your order profile best.

5. Leverage Data
   
   • Continuously analyse pick times, packing times, and error rates. Use business intelligence (BI) tools to spot inefficiencies and take corrective actions quickly.

9. Conclusion

The number of orders an e-commerce business can dispatch daily is influenced by a complex interplay of workforce efficiency, technological investments, product complexity, and industry-specific challenges. While some niches (like fast fashion or FMCG) can feasibly ship thousands of orders per day with high levels of automation, others dealing with bulkier or more specialised products may find their optimal capacity in the hundreds.

Ultimately, systematic process optimisation, careful product handling, and data-driven decision-making are the keys to scaling dispatch capacity without sacrificing accuracy or customer satisfaction. By continually refining picking strategies, investing in the right software and training, and paying close attention to the nuances of your product niche, you can find—and push—the upper limits of your daily dispatch capacity.

Sources & Further Reading:

• MHI (Material Handling Industry) Annual Industry Report: mhi.org/publications/report
• Council of Supply Chain Management Professionals (CSCMP): cscmp.org
• National Retail Federation (NRF): nrf.com/
• Statista: E-commerce Facts & Figures: statista.com

This in-depth analysis should serve both new and seasoned e-commerce entrepreneurs in planning their fulfillment strategies to maximise output while maintaining quality, customer satisfaction, and sustainable growth.