Warehouse and fulfilment centres are pretty much thought to be the same and are often used interchangeably. Though they serve the same purpose of holding inventory for the business and the services offered, they have very different connotations and mainly depend on the needs of the organisation.

How Do They Work

Companies providing warehousing solutions are designed to house inventory in bulk, for an extended period of time, in large centres or industrial spaces. On the other hand fulfilment centres handle the entire process of fulfilment from picking, to processing, to packing and finally shipping. They majorly serve as the hub for all logistical processes and are a part of the supply chain.

Large retailers mainly own warehouses to store excess inventory, leasing warehouses rather is a cost effective way for mid-size and small businesses. 3rd party logistics usually prefer fulfilment centres to fulfil E-commerce goals with streamlining operations.

What are the differences between warehousing and fulfilment centres?

1. Long-term vs. short-term storage:  For on-demand warehousing solutions, enough inventory products are needed for more than a month, prior to shipments. For turning over inventory quickly, meeting customer needs and expectations round shipping, the fulfilment centre takes the cut.
2. Operations: Operations for a warehouse looks static  and inactive but for a fulfilment centre, operations are much more complex, provided by 3PL, including a variety of order fulfilment services.
3. Order Frequency: Warehouse needs scheduling and are less active seen in opposition to fulfilment centres, who experience regular pickups for both domestic and international shipments and fulfilment

Warehousing and fulfilment centres offer different benefits for different business needs. At Shift, we handle countless operations and ship out millions of orders regularly. We offer you, being a 3PL company with expert-level experience in the domain, strategic solutions to our partners and therefore, creating one less problem for you!