Contents
- What is fulfillment?
- How does fulfillment work?
- Benefits of fulfillment
- Who needs fulfillment?
- Fulfillment services
- How to work with fulfillment operators?
What is fulfillment?
Fulfillment is a comprehensive logistics service provided on an outsourcing basis. This solution allows entrepreneurs and companies to avoid the need for significant investments in organizing their own logistics. For example, online stores can avoid renting their own warehouses and instead delegate these responsibilities to a fulfillment operator, who takes on all processes from order processing to delivering the product to the end customer.
How does fulfillment work?
The workflow of fulfillment operators includes several key stages:
- Product packaging;
- Shipping of goods;
- Customs clearance;
- Quality control and defect checking;
- Handling returns from customers.
Fulfillment frees entrepreneurs from routine tasks, allowing them to focus on business development, increasing sales, and marketing.
Benefits of fulfillment
Fulfillment is ideal for new online stores and companies that are not ready to invest in organizing logistics. This service becomes especially useful when scaling a business, expanding geographic sales, or entering new markets. Moreover, the cost of fulfillment services is often lower than renting a warehouse and paying the salaries of in-house staff.
According to a DataInsight study, fulfillment is actively used by:
- Vendors operating on marketplaces;
- Brands and large networks transitioning from offline to online;
- Small shops and manufacturers needing additional logistics services.
Who needs fulfillment?
Fulfillment is suitable not only for startups but also for larger companies looking to optimize their logistics processes. This is particularly relevant when it comes to:
- Simplifying operations when entering new markets;
- Reducing costs associated with hiring and training staff;
- Increasing efficiency when working with marketplaces.
Fulfillment operators also offer favorable conditions, allowing businesses to pay only for actual services, making them accessible to most businesses.
Fulfillment services
Fulfillment companies offer a wide range of services that may vary depending on the specific operator. The main services include:
- Delivery of goods to the warehouse;
- Receiving and inspecting goods;
- Storage of products;
- Order picking and packing;
- Delivery of orders to customers;
- Handling returns and customer service;
These services allow businesses to focus on their core operations, leaving logistics to the professionals.
How to work with fulfillment operators?
Selecting a reliable fulfillment operator is critical for successful business operations. It is important to establish a contract and set up communication between your business's IT systems and the operator's systems. This simplifies integration and allows you to track all operations in real-time.
It is also necessary to consider that fulfillment operators may not accept certain goods, such as perishable products or items prohibited for sale. For successful cooperation, it is important to establish document flow and monitor service quality through video monitoring systems. This will ensure that your goods are in safe hands.