Main Differences Between Fulfillment Centers And Warehouses

A fulfillment center is a place in which the seller, or a company that the seller employs to outsource their fulfillment a Third-party Logistics (3PL) provider, fulfills orders of customers placed through an online store or business-to retail fulfillment in which the seller delivers wholesale orders for big-box retailers.

The main role of a warehouse is simply to store inventory, while a fulfillment center is designed to enhance the customer experience around the process of ordering and having products delivered on time. You can browse https://shiphype.com/fulfillment-center/ to know more about fulfillment center in Canada.

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This is possible because sellers store their inventory in a 3PL fulfillment center located near their customers, helping to reduce shipping time and provide cost savings.

1. Long-term vs. Short-term Storage

A warehouse is a part of a 3PL’s fulfillment center, where it stores a seller’s inventory, however, the main goal of a fulfillment center is to easily manage the processes that happen between the time a customer places an order and the order is delivered to their home or business.

In the best case, inventory will not be in a fulfillment center for longer than 30 days. If inventory needs to be in a fulfillment center longer, this might be considered long-term storage, and most 3PLs will charge a higher warehousing fee. 

2. Facility Operations

A warehouse tends to be inactive because it’s used purely for storing inventory. An order fulfillment center is quite the opposite, bustling with activity constantly. 

A 3PL provides end-to-end order fulfillment solutions and at its fulfillment center including Receiving inventory, Picking, Kitting items if necessary, Packing boxes, and Operationally in a warehouse, the activity occurs only when inventory is added or sent out. There are rarely any additional services offered.