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What is fulfillment?
Fulfillment is a process that encompasses the entire processing of orders and the fulfillment of customer requests. Fulfillment includes the storage, picking, packing and shipping of goods.
What services are included in fulfillment?
Storage: The fulfillment service provider provides storage space in which the products are stored until they are ordered.
Picking: When an order is received, the corresponding products are selected from the warehouse and prepared for shipment.
Packing: The selected products are carefully packed to ensure safe delivery.
Shipping: The packaged goods are shipped to the customer, often using different shipping methods.
Returns management: Fulfillment service providers also process returns and ensure efficient handling.
When is fulfillment worthwhile?
In principle, fulfillment is suitable for companies of all sizes. It allows them to concentrate on their core competencies while the time-consuming logistics activities are placed in the hands of specialists.
What does fulfillment cost?
A blanket answer is not possible here, as the costs vary depending on the provider and the company's requirements.
As a rule, the costs usually consist of storage, order picking, packaging material and shipping.
Large fulfillment service providers can often take advantage of economies of scale to ensure their competitiveness.
What is a fulfillment center?
A fulfillment center is a specialized warehouse used by fulfillment service providers. This is where customers' products are stored, the flow of stock is organized and picking and shipping is carried out. Fulfillment centers are often almost completely automated to ensure an efficient process.
How does fulfillment work?
Fulfillment begins when a company sends its own goods to a fulfillment center. Here, the products are stored and entered into a warehouse management system. When an order is received, the staff at the fulfillment center select the relevant products from the warehouse, pack them and send them to the customer. The customer then receives the delivery - in the event of a return, this is also processed by the fulfillment center.
