If you're an e-commerce business owner struggling with the chaos and complexities of order fulfillment and shipping,  you must collaborate with a reliable fulfillment centre so that you will not be left behind in meeting your customer's expectations. In the entire game of supply chain, fulfillment centres act as the key players in streamlining order fulfillment, shipping, and deliveries. These are the pros that handle everything from receiving and storing products to packing and shipping them directly to customers. However, some businesses still do not know the significance of a fulfillment centre. It might be because they are not entirely familiar with the unique roles of these facilities in streamlining supply chain operations. And, this article guide is basically for such businesses, explaining everything about fulfillment centres—from their role in supply chain management to the benefits they bring to e-commerce businesses. 

What are Fulfillment Centres? 

Fulfillment centres are also known as third-party logistic providers. They play an integral role in the supply chain by handling order processing, picking, packing, and shipping for e-commerce businesses. From receiving goods and raw materials to storing them dedicatedly, packing, and shipping orders, fulfillment centres contribute to meeting customer expectations and drive business growth. The 3PL providers use various advanced technologies and automated systems to streamline processes, reduce the risk of errors, and ensure everything is done with proper accuracy. The most well-established fulfillment centres stay up-to-date with the latest trends and consumer expectations to serve their 100% best and stay ahead in the logistics industry. 

What Functions Do Fulfillment Centres Play? 

The fulfillment centres follow a structural workflow. Let's understand it below: 

Receiving and Inspecting: The first and foremost stage is when products arrive at a fulfillment centre. The products can be sent from businesses, retailers, or suppliers. Once the products are received, they are inspected to ensure they are in good condition. In case any product is damaged, the fulfillment centre owner either contacts that particular supplier or returns the items for replacement. 

Sorting: The next phase is to sort the products systematically according to their shipping destination. The correct items are separated based on customers' orders so that they must be available at the time of picking and packing. The sorting process also ensures that no damaged or incorrect items will be stored and called for packing later. 

Storing: After sorting, the workers in fulfillment centres store the products in a dedicated storage space. The items are stored efficiently, so they are easy to identify and retrieve when they are packaged. Different types of storage systems, such as shelving or racking, are used, often with specific locations assigned based on product type and demand. 

Order Processing (Picking and Packing): This is the most significant phase where one wrong move can lead to customer dejection and increase the risk of returns. In this phase, items are meticulously picked and packed according to the order requirement. Order processing is critical so fulfillment centres often use innovative technologies and processes to streamline the workflow. There's a software named inventory management system used by fulfillment centres to manage inventory and simplify order processing. Also, there's a process named kitting and assembly used by most fulfillment centres to streamline the production process by reducing the number of steps required to fulfill the order. 

Shipping and Delivery: The packed orders are loaded into trucks or any other vehicle assigned. After that, the vehicle departs to deliver orders directly to the customer. This entire process is done and monitored through a transportation management system. The software optimizes the movement of goods from a fulfillment centre to the customers, ensuring timely deliveries, route planning, shipment tracking, etc. 

Benefits of Collaborating with a Fulfillment Centre

As we read above, fulfillment centres offer a broad solution to streamline order processing and shipping operations, providing great growth opportunities. Let's dive deeper into how a fulfillment centre in Toronto brings a bucket of benefits to your e-commerce business:

Reduced Shipping Cost: A fulfillment centre's expertise in packaging, handling, and choosing the most appropriate carrier service ensures cost-effective shipping for all orders. 

Optimized and Smooth Operations: Fulfillment centres allow for quick and efficient order processing operations. They use advanced software like WMS and IMS to ensure accuracy, tracking, and automation. Moreover, their ability to adapt to changing demand fluctuations and provide unique solutions optimizes the entire workflow and allows for more streamlined operations. 

Expertise in International Shipping: Fulfillment centres have extensive expertise and a global network in handling international orders. They benefit from their international partnerships to optimize routes and deliveries for increased efficiency. Moreover, some fulfillment centres are strategically located, which allows for more timely deliveries. 

Enhanced Customer Satisfaction: By delivering orders timely and accurately, fulfillment centres achieve great customer satisfaction, which is beneficial for businesses to build their customer trust, improve retention rate, and embrace growth. 

Advanced Technology: Fulfillment centres leverage innovative technologies to ensure accuracy and precision at every step of order fulfillment. Additionally, the incorporation of technologies like WMS and IMS provides businesses with real-time visibility to track orders and gain data insights. 

Reduced Operational Cost: By partnering with a 3PL, businesses reduce the need to hire labour and resources and invest in the latest technologies, equipment, and machinery. Moreover, by outsourcing the order fulfillment task to a 3PL, businesses can focus on core activities like product development and marketing. 

To Summarize 

I hope this article has helped you understand fulfillment centres and how they help optimize entire supply chain operations. These facilities are not just meant to store and ship products; they provide extensive solutions to tackle the challenges of order fulfillment and stay ahead of the crowd. By partnering with a reliable fulfillment centre in Toronto, you can stay competitive in the market by offering fast and efficient delivery to customers, meeting seasonal demands, and thriving supply chain success.