What is an order fulfillment center?

What is a fulfillment center?

What is a fulfillment center?

A common question that is asked by business owners who are seeking ways to improve their businesses by streamlining operations or cutting costs is “what is a fulfillment center, and how can it help my business?” The answer is pretty simple, a fulfillment center is an independent business that specializes in the warehousing of inventory, the managing of orders that are placed through a shopping system, and the processing of those orders for shipping.  All of these services are preformed for clients of the fulfillment business, essentially acting as the entire warehousing and shipping departments.  In the past, these types of activities were difficult to outsource, causing businesses to need to allocate funds toward warehouse space and dedicated employees who maintain the inventory as well as processing the internal orders.  Since the advent of online order processing, the information regarding an order can be processed in real time from anywhere in the world, the only thing necessary is a connection from the shopping cart software to the fulfillment center computers.  The orders are received just as they would be internally, and the shipping process begins from the moment the order is confirmed.  The only difference is that your inventory is not held in a warehouse you own or rent, and the order is not processed by employees you need to train and pay.  Instead, your orders are processed by a dedicated team of professionals who work for your business as well as other businesses just like yours, allowing you to only pay for what you need as opposed to speculating on the number of employees necessary or the size of a warehouse.  Your costs are lower, your responsibility is minimized and your ability to scale up or down is fluid.

Many businesses are seeing the fulfillment center as the next level of automation with regards to the sales process, the advent of online shopping through websites being the first.  When people began to be more comfortable with online shopping, retailers began to realize that for many purchases they did not need to present the product to their customers in a physical location.  By eliminating the un-necessary physical portions of their business, the prices that were necessary to charge in  order to cover those costs were reduced, creating a situation where it was not only more convenient to shop online, but also more inexpensive.  The only element left to being forced to maintain by a business was the actual processing of the orders, and through the utilization of fulfillment centers businesses are able to not bear the expenses and responsibilities of the warehouse and shipping departments either.  Instead, a business is able to remain completely virtual, with the ownership and management of the business able to concentrate on the aspects of growth that are necessary instead of the management of employees.  With the utilization of a fulfillment center, a business can now be truly virtual.

If you are interested in learning more about the Ship My Orders fulfillment centers, contact our representatives today.