International logistics is evolving at a dizzying pace, driven by technological advances and changes in customs regulations. Ready to learn more? In this article, we delve into the main trends in order fulfillment and explain how new regulations are redefining global trade.
What is meant by “order fulfillment” internationally?
Order fulfillment is, in the most general sense, the entire process from inquiry at the point of sale to the delivery of a product to the customer. This includes inventory storage, order management, product preparation and packaging, and, of course, shipping. A well-structured fulfillment system ensures a smooth and efficient customer experience. Not only that, it also allows companies to reduce operating costs, improve delivery times, and facilitate inventory control.
Basic conventional order fulfillment strategies
- Engineer-to-order (ETO): The product is designed and built to customer specifications; This approach is most common for large construction projects and one-off products, such as Formula 1 cars.
- Build-to-order (BTO) or Make-to-Order (MTO) The product is based on a standard design, but component production and manufacturing of the final product is linked to the order placed by the final customer’s specifications; This strategy is typical for high-end motor vehicles and aircraft.
- Assemble-to-order (ATO) or Assemble-to-reques: The product is built to customer specifications from a stock of existing components. This assumes a modular product architecture that allows for the final product to be configured in this way; A typical example for this approach is Dell’s approach to customizing its computers.
- Make-to-stock (MTS) or Build-to-Forecast (BTF): The product is built against a sales forecast and sold to the customer from finished goods stock; this approach is common in the grocery and retail sectors.
- Digital copy (DC): Where products are digital assets and inventory is maintained with a single digital master. Copies are created on-demand, downloaded, and saved on customers’ storage devices, such as research papers.
But how are these strategies implemented today? The game is changing. In the next section, we explain how.
International order fulfillment trends
Order fulfillment is undergoing a transformation driven by technology, the needs of sustainability, and rising consumer expectations. Let’s look at the key trends that will shape the future of international logistics and order management.
Automation and Advanced Technology
One of the main trends that will define this year is the automation of logistics processes. Fulfillment is no longer just a matter of storing products and shipping them; technology is playing a key role in every step of the process. With the use of robots and automated storage and selection systems, companies can streamline order preparation, reduce human error, and increase operational capacity.
Fast and Flexible Deliveries
Today’s consumers demand increasingly faster and more flexible deliveries. Customer expectations regarding delivery times are changing rapidly, and most want to receive their products within 24 or 48 hours of placing an order. In this sense, companies must have fulfillment systems that can handle this increased demand for fast deliveries. A growing trend is the implementation of faster and more local logistics networks. Well-located distribution centers can reduce shipping times and costs.
Sustainability and Eco-Friendly Fulfillment
Sustainability is no longer an option for e-commerce companies; consumers are increasingly interested in supporting brands that implement eco-friendly practices in their processes.
In fulfillment, this translates into the adoption of more sustainable practices throughout the supply chain, from packaging to transportation.
Companies are beginning to use recyclable or biodegradable packaging materials and opt for electric or low-emission delivery vehicles to reduce their carbon footprint.
Additionally, consolidating shipments, rather than making individual shipments, also contributes to reducing the environmental impact.
Personalized Customer Experience
Fulfillment is not just a logistics process; it also directly influences the customer experience.
By 2025, companies must offer increasingly personalized shopping experiences. Consumers want products that are not only delivered quickly, but also arrive in a way that reflects the brand’s values.
This can include personalized packaging, the option to include special messages, or even the ability to choose the exact date and time of delivery. Technology makes it possible to personalize these experiences more efficiently than ever, and companies that successfully implement these options will be in a stronger position to build customer loyalty.
Cloud-Based Fulfillment
The use of cloud-based solutions for fulfillment management is another key trend. Cloud-based warehouses allow companies to efficiently manage their inventories, orders, and shipments from anywhere, with real-time access to all relevant information. Additionally, cloud-based data integration facilitates collaboration with suppliers and carriers, improving supply chain visibility and control. With the help of advanced platforms, large volumes of orders can be managed easily and efficiently, quickly adapting to market demands.
Simplified Returns Management
Returns are an inevitable part of e-commerce, and by 2025, returns management will be a key aspect of fulfillment. Consumers want a simple experience when returning products, so e-commerce companies must offer clear and fast processes for managing returns. One way to improve returns efficiency is to offer multiple options, such as returning to nearby collection points or having products picked up at the customer’s door. Simplifying this process improves customer satisfaction and, in turn, optimizes the company’s operating costs.
The future of the international game board: latest customs regulations
Customs regulations are evolving rapidly in response to the growth of international trade and the digitalization of logistics processes. The recent signing of the Memorandum of Understanding between the World Trade Organization (WTO) and the World Customs Organization (WCO) marks a milestone in international cooperation in customs matters. This agreement, signed at the World Economic Forum in Davos, seeks to harmonize regulations and facilitate cross-border trade through greater collaboration between the two entities.
One of the key aspects of this agreement is the improved exchange of information between the WTO and the WCO. The unification of customs data will allow logistics operators and exporting companies to adapt more quickly to changes in the classification of goods and the transposition of the Harmonized System (HS). This initiative will not only reduce the margin of error in customs procedures but will also optimize the application of international standards, offering greater predictability to companies operating in global markets.
Another key issue is the fight against illicit trade and the protection of intellectual property rights. The WTO and the WCO have agreed to share information and coordinate efforts on projects aimed at combating fraudulent activities, ensuring safer and more equitable trade. The implementation of these mechanisms will strengthen security in international transactions, benefiting both governments and companies that comply with regulations.
This agreement reinforces the trend toward the automation and digitalization of customs processes. In the immediate future, innovations in artificial intelligence and blockchain are likely to play a crucial role in the verification and management of customs documents, facilitating transparency and traceability of operations. Thus, logistics companies must be prepared to adapt to a constantly changing environment, where efficiency and regulatory compliance will be key elements for success in international trade.
