For many, the term ‘fulfillment’ is still unfamiliar. That’s why, in this article, we’ll take a deeper look at the activities within a fulfillment center. It’s about more than just warehousing. But what exactly does it entail? Discover it step by step below!
Warehousing
Shelf Storage
We start with the most obvious step: a fulfillment—or more specifically, an e-fulfillment (from ‘e-commerce’)—partner will take over all logistics-related tasks for your (web)shop or business. A key logistical aspect is, of course, storing goods.
Storage can take place in different types of locations, such as:
- Shelf storage
- Pallet locations
- Temperature-controlled storage
- Stacking bins
- Lift systems
- …
A fulfillment center invests in software, hardware (racks, computers, packing tables, etc.), and mobile equipment (forklifts, stackers, pallet jacks, picking carts, conveyor belts, etc.) to store and manage your goods in optimal conditions.
Additionally, a significant investment is needed in a robust WMS (Warehouse Management System). This is the heart of any warehouse, the software that must efficiently manage all the tasks below. Choosing the right WMS is crucial—at Webship, we’ve chosen to develop our own system and make it available for other warehouses as well (more info at https://webship.online).
Incoming Goods Inspection
A crucial step in the entire process is receiving and inspecting incoming goods. A reliable fulfillment partner is prepared to handle both full container loads and individual packages. After physically receiving a shipment, the next step is checking quality and quantity.
Manually Unloading a Container
A fulfillment center is equipped with the necessary hardware and software to make inspections seamless. Often, barcode scanners are used to register incoming goods into the WMS. When a product arrives at our warehouse for the first time, we conduct an automated product measurement to record its dimensions and weight in our database. Later, this data is used to minimize errors and optimize warehouse space.
After the inspection, the product is stored in the warehouse. Often, mobile storage locations are used as temporary holding areas before the goods are placed in their final locations. These final locations can be determined by the warehouse software based on weight, dimensions, and product history.
💡 Important: When handling food products, additional checks are required to register expiration dates and/or batch numbers to ensure correct system entry.
Order Picking & Packing
Once an order is placed (and paid for) in your webshop, it should ideally be automatically forwarded to your logistics partner. Whether a connection is possible depends on the software used by both the fulfillment center and your webshop. At Webship, we offer integrations with:
- WooCommerce
- Magento 2
- Shopify
- Lightspeed
- CSV file imports
Once the orders are in the WMS, fulfillment employees can start processing them. The most efficient picking route is chosen, allowing one or more orders to be picked at once—either digitally or on paper. These orders are then ready for packaging.
Final Quality Check at the Packing Table
At the packing table, a final verification takes place. Based on barcodes (if available), the items are scanned again, order by order. If no barcode is available, an additional weight check can be done. Does the total weight match the known product weights in the system?
Now, the packer can start. If the dimensions of each product in the order are known, the system may suggest the most suitable packaging. If dimensions are unknown, the packer must determine the best packaging and protective materials manually.
Generating Shipping Labels
The final step is to generate one or more shipping labels for the order. A fulfillment center typically works with multiple shipping partners to offer the most cost-effective rates per region (and per weight). At Webship, we currently collaborate with four shipping partners: bpost, DPD, PostNL, and GLS. This broad selection ensures a suitable solution for every order (whether a parcel or a pallet) at a competitive price (see ‘volume contracts with couriers’).
Inventory Management
Selling a lot through your webshop? Great! Unfortunately, that also increases the risk of stock shortages—which is something you want to avoid at all costs. Selling a product that is no longer in stock can be frustrating, but even worse is having stock available but not selling it because your webshop incorrectly displays it as “out of stock.”
Your online inventory must always be synchronized with your physical stock. This is only possible if your inventory software is directly connected to your webshop. It should automatically update stock levels when processing orders, receiving new goods, or making adjustments (e.g., unforeseen corrections). There are many moments when stock levels might change, and these updates must be reflected in your webshop in real time.
A fulfillment partner takes over this responsibility. The fulfillment center ensures that stock levels in the WMS (Warehouse Management System) are always accurate. Additionally, cycle counting can be implemented. This means that during order picking, stock levels are also checked—two tasks in one. Instead of performing a full inventory count once a year, small daily stock checks keep inventory accurate and discrepancies can be quickly detected. Managing stock manually can be overwhelming, but a fulfillment center can handle this efficiently thanks to its expertise and infrastructure.
Volume Contracts with Couriers
Another key role of an e-fulfillment center is negotiating the best shipping rates with one or more couriers and/or transport companies. By consolidating volumes, fulfillment centers can secure favorable contracts that individual webshops would never be able to obtain.
As mentioned earlier, we have volume contracts with bpost, DPD, PostNL, and GLS. By bundling the shipping volumes of multiple clients, we can, for example, send a package up to 2kg from Belgium to the Netherlands for just €3.99. Shipping at such low rates is typically impossible unless you’re a large player like Coolblue or Bol.com!
Negotiating Packaging Materials
It’s not just shipping costs that matter—packaging and protective materials are equally important. We all know Rajapack, but there are better alternatives in the market for high-quality yet affordable packaging materials. A fulfillment center usually has a trusted supplier for cardboard boxes, shipping bags, and filling materials.
By centralizing purchases, fulfillment providers can once again lower costs and pass those savings on to their clients. Every new client at a fulfillment center contributes to further reductions in packaging costs due to economies of scale.
Returns Management
Efficiently handling returns is another crucial aspect of fulfillment. Fast return processing is essential for maintaining customer satisfaction. A customer initiating a return is often already frustrated, and if the return process is slow or inefficient, they may never shop with your business again.
However, if you provide excellent service and quick resolution, you may be able to win the customer back.
Returns Processing
Processing a return at a fulfillment partner works similarly to receiving and inspecting incoming goods. A quality and quantity check is performed, and the return is recorded in the WMS (Warehouse Management System). At that moment, you, as the fulfillment client, receive a notification that a return has been processed—potentially including additional details.
In many cases, there are two possible outcomes:
- Restocking the return (either as a regular product or as a discounted item).
- Destroying the return (e.g., if the item is unsellable).
Customer Service
An e-fulfillment center doesn’t just handle logistics—it can also manage direct interactions with your customers. The so-called ‘first-line support’ can assist your customers immediately with frequently asked questions and inquiries about their shipments.
This allows you to focus entirely on growing your business without the daily hassle of logistics and repetitive customer inquiries.
Want to Learn More?
Webship has developed a calculator that estimates the cost of outsourcing logistics for your webshop. Feel free to try the calculator to evaluate your specific situation. It calculates an average ‘all-in’ price (including storage, inventory management, picking, packing, shipping, etc.), giving you a clear view of the actual fulfillment costs.
Do you have questions about fulfillment pricing, or would you like to receive a quote? Contact Webship at hallo@webship.be.
