Warehouse Management Magazine Digital Edition 2021

Page 52

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ulfillment Centers: Fulfillment centers are third-party-operated warehouses to which companies outsource their incoming orders for fulfillment. The center takes the onus of receiving, processing, and shipping the order to the end customer. They can be equipped with specialized material handling equipment, robotics, and automation for faster order fulfillment services. Benefits of these kinds of warehouses are: Retailers without adequate space can skip the complexity of finding and renting warehouse space.

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Costs are kept predictable, as businesses pay only for the services they use, i.e., if the business is slow, the costs go down and vice-versa. With the framework to ship and deliver orders to any part of the country, retailers can extend their customer reach without undue capital investment. Outsourcing order fulfillment can help companies concentrate on their core competencies, such as design, marketing, and selling their products.

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