warehouse vs fulfilment center

The Difference Between a Warehouse and Fulfilment Center

Published on: July 27, 2020

Sarah K.

The way consumers shop, and the way businesses operate or distribute materials is quickly evolving. One thing that has made shipping goods to consumers on time possible is through fulfillment centers. For some entrepreneurs, they may not realize it, but there are differences between warehouses and fulfillment centers that can benefit and hinder a company.

Knowing the Difference Between Warehouse and Fulfillment

A warehouse is typically a building or storage space that companies and businesses use to store their goods and products. Much of what’s stored are bulk items that are then shipped to stores or companies that sell their items. Warehouses have limited activity when it comes to the distribution of goods and products.

With fulfillment centers, businesses and companies can store and distribute their goods to consumers as soon as orders are received. This approach to storing and distributing products means that consumers can get their orders fulfilled quicker. Fulfilling orders quickly typically results in an increase in customer satisfaction.

Warehouse or Fulfillment Center – Which Is Best?

Understanding the difference between warehouse and fulfillment center is one thing; however, the next part is knowing which is better suited for your business and company.

To help determine which is the best option for you and your business operations, consider the following:

Time – Businesses looking to store their goods and merchandise in bulk, but also distribute in bulk, may go with a warehouse option. With a fulfillment center, if you are a business or a company that is continuously moving goods, or looking to meet orders in a timely fashion, a fulfillment center is the way to go. Fulfillment centers are also typically smaller in size than warehouses.

Multiple Orders – Going with a fulfillment center over a warehouse typically means your business operations are expanding, and goods and products need to be distributed faster. For a business, this is a good sign; however, it can be hard to fulfill these needs if there isn’t enough space. A warehouse is a good option if inventory isn’t moving as fast. With a fulfillment center, if you are looking to promise consumers same-day or next-day delivery, this is the option you want.

Budget – The renting of a warehouse can be costly, as there is a good chance there is heavy machinery and equipment in the space. With a fulfillment center, you don’t have to rent space out. You can even use your own home or space as a fulfillment center. This can help keep costs low.

Understanding one’s distribution needs are going to determine whether a fulfillment center is the best option for a warehouse. For businesses that are looking for a direct-to-consumer brand, a fulfillment center, is a way to go.

Enhancing Business Operations for Customer Satisfaction

For newer companies that aren’t established, it can be hard to fulfill last-mile delivery. Last-mile delivery is as it sounds; the last mile of the product or good getting to the consumer. With a fulfillment center, last-mile delivery can be met, which results in fast, accurate, and reliable delivery.

Consumers get their goods quicker, but with a fulfillment center, there is the ability to provide data-driven information. This means that inventories are automatically updated, which promotes a tech-driven approach to one’s business operations.

With businesses and companies with ample goods or large quantities of inventory, it can be hard to keep track of what is being moved from warehouse to store. Still, with a fulfillment center, this is all taken care of. How? With the help of software, businesses can keep track of their inventory in real-time. The way of the future is one that works with and embraces a data and tech-driven approach. Not adopting this approach can hinder one’s ability to progress and meet the needs of their consumers.

Fulfilling Your Orders with Bond

Success comes from teamwork, and Bond is a company that provides businesses with the ability to meet their delivery needs. Providing transparent and viable business practices, Bond works to make sure your customers’ needs are met. This includes providing businesses with the opportunity to enhance their consumer experience. From providing drop off returns to same-day and next-day delivery, Bond enables the most outstanding positive post-purchase experience.

Want to hear more? Talk to us today so we can start delivering tomorrow.

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