A fulfillment center is a type of warehouse operated by a third-party logistics (3PL) provider that handles the complete order fulfillment process—from receiving inventory and picking orders to packing and shipping them. Unlike traditional warehouses, fulfillment centers are optimized for fast-moving e-commerce and often offer value-added services like gift wrapping or custom packaging.
In these times of booming e-commerce and growing demands for faster deliveries, everybody seems to be talking about fulfillment centers. But what is a fulfillment center, really? Is it just a fancy word for a warehouse – or something completely different? Let’s sort it out, shall we?
Yes, on the surface a fulfillment center is “just a warehouse”. It is a physical space where products are received, stored, picked, packed, and shipped. The difference is in the way it is managed. A fulfillment center is generally run by a provider of third-party logistics (3PL) offering their services and space to companies who want help with their last-mile logistics
Using an external fulfillment center as a part of your logistics process has several advantages, especially for smaller e-commerce companies. Here are some of them:
Dive into the Warehouse Management System: understand its purpose, how it operates, and how it can improve your warehouse operations.