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Challenges in the order fulfillment process

Mar 11, 2025 - Doug Shaffer
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Challenges in the order fulfillment process
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Fast and accurate order fulfillment processes are essential for customer experience and sustained profitability. However, many businesses struggle with challenges that cause serious disruptions in daily operations. Some of these fulfillment challenges are common and manageable, while others might indicate that it's time to outsource or switch to a more reliable 3PL provider.  

In this blog, we explore the most common challenges in the fulfillment process, how they can impact your business and when it may be time to find a better solution.

Common challenges in the order fulfillment process

Staying competitive in rapidly changing industries and marketplaces requires innovative and tech-enabled solutions. This is especially true with fulfillment, an essential part of the customer’s experience with your brand. Listed below are common challenges that can impact the process. 

Inventory accuracy and stockouts

Real-time visibility of stock levels prevents overselling, stockouts and significant fulfillment delays. If your available inventory levels do not match what you actually have in stock, then you risk losing customer trust. Effective inventory management is a requirement for seamless order fulfillment.

Challenges in the order fulfillment process

  Common challenges In-house solutions When to outsource
Inventory accuracy and stockouts
  • Discrepancies between inventory records and actual stock.
  • Over-reliance on manual tracking methods leads to errors. 
  • Stockouts result in lost sales and backorders.
  • Implement real-time inventory tracking.
  • Automate inventory updates with software.
  • Conduct regular cycle counts and audits.
  • Frequent inventory miscounts cause order delays. 
  • Lack of automation or real-time tracking. 
  • It might be time to change providers if: 3PL provider doesn’t provide transparent stock reporting.
Slow shipping and high costs
  • High carrier fees and rising transportation costs. 
  • Inefficient warehouse operations slow down order processing.
  • Difficulty integrating cost-effective shipping solutions.
  • Optimize warehouse layout for faster picking. 
  • Negotiate better carrier rates. 
  • Implement order batching and shipping consolidation.
  • Struggle to offer competitive shipping speeds. 
  • Shipping costs are cutting into profit margins. 
  • It might be time to change providers if: 3PL lacks access to preferred carrier rates.
Returns and reverse logistics
  • Slow returns processing, delaying refunds or exchanges. 
  • High return rates in industries like fashion and electronics. 
  • Lack of structured reverse logistics.
  • Improve return policies and communication. 
  • Implement return tracking for better visibility. 
  • Quality control to reduce return rates.
  • The returns process is costly and time-consuming. 
  • Lack of real-time tracking for returned goods. 
  • It might be time to change providers if: 3PL provider doesn’t offer structured returns management.
Scaling for demand spikes
  • Order delays due to insufficient warehouse space or staff. 
  • System failures during high-traffic sales events. 
  • Poor inventory forecasting leads to stock shortages.
  • Forecast demand using historical data. 
  • Implement temporary staffing during peak seasons. 
  • Upgrade warehouse management systems.
  • It might be time to change providers if: 3PL struggles to handle seasonal spikes. 
  • Customers frequently experience delayed deliveries during peak periods. 
  • Lack of automation to scale efficiently.
Omnichannel fulfillment
  • Managing inventory across multiple sales platforms.
  • Ensuring accurate order processing across different channels. 
  • Limited integration between marketplaces, ecommerce and retail locations.
  • Invest in integrated order management software. 
  • Standardize processes across sales channels. 
  • Improve data synchronization between platforms.
  • It might be time to change providers if: 3PL provider lacks omnichannel support. 
  • No real-time visibility across sales channels. 
  • High rate of order errors across multiple platforms.

Slow shipping and high costs

Balancing customer expectations with profitability is a challenge. Customers want and expect fast and affordable shipping options, including two-day or even same-day delivery. This can create challenges involving high carrier fees, transportation costs and inconsistent shipping times. 

Returns and reverse logistics

Managing returns is just as important as fulfilling new orders, especially in industries where returns are more common. The most common returns and reverse logistics challenges are associated with inefficient restocking processes and unclear return policies. Unfortunately, poor return experiences can lead to a loss of customer trust and higher operational costs.

Scaling for demand spikes

Businesses must remain flexible and scale during demand spikes while maintaining cost control and service quality. An effective fulfillment strategy should enable businesses to scale during growth, peak sales seasons and promotional events.

Omnichannel fulfillment challenges

Most modern brands sell across multiple platforms, including direct-to-customer (D2C), business-to-business (B2B), retail stores and online marketplaces. Each channel presents its own unique challenges and requirements. Omnichannel order fulfillment must integrate and deliver a consistent brand experience across all channels.

Is it time to start outsourcing or change 3PLs?

Many businesses struggle to decide whether in-house or outsourced fulfillment is best. For those already working with a provider that isn’t delivering optimal results, they might struggle to find a better way to improve outcomes. 

Switching to a scalable, technology-driven fulfillment partner like Cart.com can help eliminate inefficiencies, reduce costs and ensure consistent and optimal customer experiences.

Partner with Cart.com

The best fulfillment strategies are efficient, accurate and scalable. Whether you intend to manage fulfillment in-house or outsource to a 3PL, you can overcome barriers to success.

If your current strategy is failing to deliver results, we can help. Contact our team today to learn how we can help your company navigate challenges in the order fulfillment process.