How Does A Fulfillment Center Operate?

It is often larger in size and scale than a typical warehouse that an individual company might own or rent. The main function of a fulfillment center is to manage the seller’s inventory, store the inventory, ship orders directly to customers and/or retailers, and assist sellers in managing the entire vital, yet often difficult fulfillment operation.

A fulfillment center is a hub for all of the logistics processes required to get a seller’s product to their customer. This is also known as the order fulfillment process. You can find the top fulfillment center in Canada via online.

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Inventory is stored conveniently in a 3PL’s fulfillment center in preparation to fill customers’ orders. After a customer completes a purchase, inventory is picked from the fulfillment center shelves, packed, and then prepared for shipment.

These business-to-consumer (B2C) orders fulfilled by a 3PL are often shipped directly to an individual home. Fulfillment centers can also be used for B2Borders, often a large volume product that is sent out to larger retailers.

When a seller outsources their fulfillment to a 3PL, the 3PL handles the processes on the seller’s behalf. This can include storage, receiving, packing, and shipping, negotiating lower shipping rates, handling high-volume needs, and often lower fulfillment costs than other order fulfillment services.

When a seller outsources its fulfillment to a 3PL it can make it easier to manage inventory, save time to allow the seller to focus on more important business tasks, and even improve customer satisfaction.