What is it?
Pick and Pack Service (or Order-Fulfillment) refers to a less-than-case-quantity (LTCQ) shipping process.
This process is designed for those customers that ship to smaller more fragmented markets and smaller customers. This is a growing sector and here is why:
- Retail space is limited but variety is growing. With less space per item retailers need LTCQ replenishment due to limitations of cash and space.
- E-Commerce: Consumers seldom purchase a case of product. It is almost always individual items.
- With SKU Proliferation a major factor for manufacturers and with the retailers demanding faster replenishment (and a broader range of sku) the ability to force case quantity purchases, even to Distribution Centres, is diminishing. LTCQ has become more evident further up the supply chain and not simply at the retail end.
SKU – Stock Keeping Unit (a unique item in inventory).
For example: T-shirt, Style Number 12345, Size MED, Colour, WHITE.
All three elements are required to be defined to identify an item as unique. A UPC label for example will always be style, size and colour specific.