What does the warehouse and fulfillment services do? The terms warehousing and fulfillment services (or distribution centre) are often used interchangeably but can have very different meanings. Both are large buildings with inventory for goods-selling industries; however, the cases of use and the services provided are often quite different. Let’s break down each option to better understand the best eCommerce shipping solution for your business. When we talk about warehouse fulfillment, we talk about a company that stores products for a long time. A warehouse is a large storage centre or industrial space designed to hold inventory in bulk. You will see devices like forklifts and containers, in which the shelves will be high and will store large quantities of products.
There are business-oriented warehousing providers that primarily place large quantities of bulk or B2B eCommerce orders. Some large retailers will have their warehouse store additional inventory, while others will rent space in a warehouse with eCommerce businesses. Leasing warehouse space is generally more effective for small to medium-sized retailers, although prices depend on available lease terms. Due to the expansion of warehouses and high demand for construction, many logistics warehouse tenants expect to see a 10% increase starting in 2021. Some small e-commerce sellers may choose to rent a more cost-effective space, such as a local locker or inventory storage unit if the home does not have space. This way, they keep a little inventory on hand and get more when less.
What is a fulfillment centre? The fulfillment centre is the physical location from which third-party logistics (3PL) providers (also known as fulfillment providers) fulfil customer orders for eCommerce retailers. A fulfillment centre exists to help customers receive timely orders online and free e-commerce companies from managing this crucial-yet-cumbersome process. How does fulfillment centres work? The operation of the fulfillment services involves the task of helping to deliver online orders to your home - also known as the order fulfillment process. The inventory of the eCommerce business is strategically stored in the fulfillment centre of 3PL in preparation for fulfilling the customer's order. After the buyer completes the purchase at the e-merchant store, the inventory is selected, and the packs are packed, then labelled for shipment. Fulfillment centres can process both business-to-business (B2B) orders - usually, business-to-customer (B2C) orders sent in bulk to a retailer of large box boxes, which are sent directly to one individual customer home. When the seller outsources eCommerce fulfillment, 3PL carries out the store owner's completion process. This includes everything from inventory management to negotiating rates with warehouse and shipping services. Order fulfillment processes can save a lot of time managing inventory, improving customer service, and focusing the seller on more strategic tasks. What is a fulfillment warehouse? The fulfillment warehouse is often used interchangeably with the term "fulfillment centre." A lone warehouse is quite different from this. A warehouse is usually a place where inventory is stored, while fulfillment has many functions other than warehouse storage. What is the difference between warehousing and fulfillment centres? Let’s look at some of the specifics of these two buildings that keep inventory. Long-term vs. short-term storage While the fulfillment centre of 3PL has a warehousing component - the merchant's inventory is stored at its designated locations - the main goal of the fulfillment centre is to turn inventory quickly. Ideally, inventory should not sit in a fulfillment centre for more than a month, or the merchant may end up paying a higher warehousing fee. However, sellers must send
more inventory to their fulfillment centres to ensure there is always enough product on hand before shipment. The role of the warehouse or on-demand warehousing solution is to store products, while the role of the fulfillment centre is to meet customer expectations around shipping effectively. When retailers store inventory in fulfillment centres near their customers, this has become possible to reduce shipping costs, shipping times, and shipping zones. Also Read: How to handle warehousing and fulfillment services for your eCommerce business? Operation Unlike more static or passive warehouses, the fulfillment centre has a constant movement and is a more complex operation. 3PL in the fulfillment centre offers a variety of order fulfillment services, including: ● ● ● ● ● ● ●
Inventory received Creating shop listings and selecting products Shoot and collect items Packing boxes Shipment labelling Shipping order Managing returns
As far as what is going on in the warehouse in operation, the main action is when the inventory is added or moved. Many additional services are not provided. Frequency of deliveries by shipping carriers The fulfillment centre works to ensure that customers' orders are completed as soon as possible, so they need a shipping carrier to take at least daily shipments. This ensures that orders are delivered on time as promised to customers. Depending on the specific services provided by the company , fulfillment warehouse services may be required to place customer orders for any guaranteed same-day or next-day shipping options selected by customers at a specific time each day. Retail fulfillment companies will have a cut off time to place orders. For example, customer orders placed in the local time in the afternoon will be processed at the fulfillment centre and shipped the same day. In contrast, a warehouse usually requires a scheduled, less frequent pickup, as it is more efficient to store cargo and boxes rather than create separate shipping labels by wrapping them in pallets.
Freight companies try to provide inventory for PTL and LTL freight shipments from various pickup locations, which can delay the pickup / delivery time, so traders can walk long distances from the preparation to the store. The benefits of using a fulfillment centre What are the high benefits for online sellers using fulfillment companies? Remove storage inventory and packaging As long as you’re a brick-and-mortar retailer, managing physical space may not be ideal. It is no surprise that many eCommerce businesses seek to store inventory or avoid the hassle of dealing with e-commerce warehousing. Also, if you don't want to pack your bags every day and go to the post office, a fulfillment centre is a great option. The number one hint that it is time to use the fulfillment centre will no longer maintain your growing order volume. Supplement providers help you worry less about packing supplies and post office fee lines and give you more time to grow your business. Focus on the big picture Packing boxes and shipping are important to meet the customer's expectations of the customer's order. They are usually tasks that you can easily outsource. So, they must stay laser-focused on the tasks they can only do, and that will help them make money and make money. Time to meet orders and instead focus on marketing, customer service and product management can help make eCommerce businesses more strategic and less operational. There will never be enough time in the day, but using a business fulfillment centre can help merchants become more active in other business areas.