What Do Fulfillment Centers Do?

In the rapidly evolving world of eCommerce, having a centralized warehouse for each brand is no longer practical. Instead, online retailers partner with fulfillment centers or third-party logistics (3PL) providers that boast a network of strategically located fulfillment centers. These centers play a pivotal role in storing products, processing orders, and ensuring that shipments reach satisfied customers promptly. Retailers focus on website management, marketplace presence, marketing, and selling, while fulfillment centers handle the logistics of getting products to consumers.

So, what exactly does a fulfillment center do? Let's explore the key steps a fulfillment center takes to ensure a seamless experience for both retailers and their customers.

1. Store Your Products

At its core, a fulfillment center functions as a quick-cycle warehouse. Unlike traditional warehouses designed for deep storage, fulfillment centers focus on maintaining optimal stock levels to meet demand for the upcoming months. Each center holds products for numerous retailer clients, each selling their products online.

By leveraging a network of fulfillment centers, retailers can strategically position their inventory across various locations, enabling them to fulfill orders from the center closest to the customer. This approach significantly reduces delivery times and enhances customer satisfaction.

2. Receive and Process Orders

When a retail brand receives a product order, it is automatically transmitted to the fulfillment center through an integrated software system. The fulfillment center processes the order by translating it into a series of tasks for the fulfillment team to execute.

3. Pick and Pack Orders

Once the order is processed, the next step is "pick and pack," a logistics term for assembling a ready-to-deliver package from warehouse shelves.

Picking

Trained staff, familiar with the warehouse layout, select each item in a customer's order and bring them to a central packing area. Advanced facilities utilize virtual mapping and barcode scanning to ensure precise product selection, minimizing errors.

Packing

Packing teams then determine the most efficient way to box the items, taking into account factors such as size, weight, and fragility. The goal is to optimize space while adhering to safety protocols to prevent damage during transit. Large, heavy, or fragile items might be packed individually, while smaller, durable items can be combined into a single package.

4. Label and Route Packages

After picking and packing, the package is sealed, and a shipping label is generated by the system. With Xparcel, this label provides the optimal route for the package to reach the customer in the most effective and economical way. The result is a package delivered efficiently to a happy customer.

Note:?3PL services often include distribution centers and may have their own last-mile delivery fleets. However, carriers, distribution centers, and last-mile services can also operate as separate entities working together in a coordinated effort.

5. Receive and Manage Returns

Fulfillment centers are not just about sending out orders; many also manage product returns. When a customer conducts a return, the fulfillment center inspects the product as instructed by the seller in order to issue a refund or replacement. Items that are unopened and undamaged are often restocked to minimize losses for the retailer.

Comprehensive Logistics Fulfillment Services

Modern eCommerce brands rely on logistics partners for efficient order fulfillment. With ShipNetwork, businesses gain access to a comprehensive 3PL service with a vast network of local fulfillment centers and carrier partners. By collaborating with us, you can focus on your brand's growth while we take care of the logistics.

Partnering with a fulfillment center or 3PL service is essential for online retailers looking to scale and enhance their customer experience. By understanding the role of fulfillment centers, businesses can make informed decisions that align with their logistics strategy.

Ready to optimize your logistics? Contact ShipNetwork today to discuss how our tailored 3PL solutions can support your brand's unique needs. Let's work together to streamline your fulfillment process and delight your customers!