The Difference Between Logistics, Warehousing, and Fulfillment and Which to Choose for Customer Orders (2024)

Maybe you’re running out of storage space. Perhaps you’re falling behind on customer orders. Or it could be that you keep losing track of inventory. Whatever it is, you need help getting client orders out the door.

In looking for a partner who can provide optimal support for your needs, you keep coming across terms like logistics, warehousing, and fulfillment. What’s the difference between these services, and does a company need all three?

What are Logistics?

Logistics is a broad category that encompasses the “how” of your company’s materials and goods. Logistics includes transportation between locations, movements within a company, and inventory control. For example, how will we get the finished products out of inventory and into the customer’s hands? Or, how do we transport raw materials from the offsite warehouse and move them into the production line?

Almost all companies need logistics of some sort. But not all logistics companies provide the same type of support. For example, some logistics companies only focus on transporting materials, while others may offer warehousing and order fulfillment services.

What is Warehousing?

Warehousing is the part of logistics management that’s rooted in the “where.” As you’d probably guess, warehousing is all about where materials are stored. It’s the process of keeping finished products and raw materials where they need to be — either before they are sold or before they become part of the production process.

As part of the process, warehousing companies receive orders, check, and inventory goods. Warehousing can be valuable if you need a little — or a lot — extra space. Some warehousing companies may offer logistics services or fulfill product orders. But you’ll want to check with them to make sure.

What is Order Fulfillment?

Order fulfillment is a type of logistics centered around satisfying customer orders. The process starts when a customer places an order, but it doesn’t always end when they receive it. If a buyer wants to return the product, that’s part of order fulfillment too.

Why an Offsite Fulfillment Warehouse is Ideal for Customer Orders

An offsite fulfillment center like Point B can meet all your logistics, fulfillment, and warehousing needs for all your customer orders. Specific benefits include:

  • The ability to scale – You don’t need to worry about where to store things when you’re ordering products. You can even ship the products directly to the warehouse.
  • Keeping popular products in stock – An inventory management system will alert you when you’re getting low on crucial items so you can reorder before you run out.
  • Virtual shelves that match physical inventory – Depending on your website design, you may be able to connect the inventory management system directly into your e-commerce site. The benefit? Customers only order what’s available, and sold items are automatically subtracted from inventory.
  • Accurate, cost-effective packaging and shipping – Partnering with a fulfillment center can translate to fewer mispicks for more accurate orders — and usually fewer shipping costs.
  • Customer service support – Chances are you’re not eager to spend your time resolving shipping issues such as lost packages or damaged products. A fulfillment company can deal with the issues, so you have more time for the fun stuff.
  • Streamlined to other marketing services – If you work with Point B for order fulfillment, we can also source promotional items and print materials you may need for your inventory.

Choose Point B for Logistics, Warehousing, and Fulfillment

If you’re struggling to keep up with customer orders, Point B can help. As one of Minnesota’s top partners for order fulfillment services, we support businesses of all sizes with warehousing and logistics for customer orders.

The Difference Between Logistics, Warehousing, and Fulfillment and Which to Choose for Customer Orders (2024)

FAQs

The Difference Between Logistics, Warehousing, and Fulfillment and Which to Choose for Customer Orders? ›

If your operations require fast turnaround and direct shipping to customers, a fulfillment center is likely more suitable. However, for long-term storage and bulk inventory without immediate distribution needs, a warehouse may be more appropriate.

What is the difference between logistics and fulfillment? ›

E-commerce order fulfillment: This process involves picking, packing, and shipping orders. It is important to have a smooth and efficient order fulfillment process to minimize delays and errors. Logistics: This refers to the transportation of goods from the warehouse to the customer.

What is the difference between logistics and warehousing? ›

Warehousing involves the safe and secure storage of inventory. Logistics, on the other hand, focuses on the effective movement of goods from one place to another. It involves properly managing the flow of goods between the point of origin and the end of the destination.

What is the difference between a fulfillment center and a warehouse? ›

Warehousing companies simply store products to be used at a later date, while fulfillment centers house products briefly, pick and pack orders, and make sure they get into the hands of your customers in a timely matter.

What is the difference between warehousing and warehouse? ›

Difference Between Warehouse and Warehousing

A warehouse can be any physical building that is designed to keep items secure. Warehousing is the process of using and optimizing an inventory warehouse, which includes product maintenance, and handling, and other warehouse services.

What is customer order fulfillment? ›

It is the process of receiving goods, then processing and delivering orders to customers. The order fulfillment process starts with a customer placing an order and ends once they receive it. However, if the buyer wants to return a product, order fulfillment manages the return transaction as well.

What is the difference between order and fulfillment order? ›

From the time a customer places an order until the pick, pack, and ship process occurs to when items are delivered to a customer, they are all order fulfillment services. While order management manages the entire inventory lifecycle, order fulfillment focuses on managing customer orders.

What are 3 key parts of warehousing logistics? ›

The three key parts of warehousing logistics are inventory management, order fulfillment, and facility operations. Inventory management involves maintaining accurate inventory records, optimizing stock levels, and ensuring proper organization and accessibility of goods within the warehouse.

What is the role of warehousing in logistics? ›

Warehousing gives businesses access to shipping and logistics experts who can improve their supply chain and streamline their operations. They can delegate order fulfillment tasks to warehouse staff and focus on the core aspects of growing their business.

What are the warehouse and logistics processes? ›

Warehousing and logistics often combine into one term. At the same time, those processes are two sides of the same coin. On the one side warehousing is focused on the storage of goods and products. Logistics is primarily the process of managing, shipping, and delivering these goods for the final clients.

What is warehousing and fulfillment services? ›

Warehouses store inventory, while fulfillment centers focus on efficient order processing and shipping. Fulfillment centers prioritize quick order fulfillment and fast delivery, while warehouses provide long-term storage.

What is an example of a fulfillment warehouse? ›

So, your fulfillment center is the physical location(s) from which a third-party logistics (3PL) provider stores and fulfills customer's online orders for e-commerce merchants. For instance, Amazon runs fulfillment centers to fulfil e-commerce orders for Amazon sellers.

What is the difference between Amazon warehouse and Amazon fulfillment center? ›

What is an Amazon fulfilment centre? The name reflects the function: Amazon fulfilment centres are charged with fulfiling customer orders. In other words, Amazon warehouses not only store products but also serve as distribution centres where associates pick, pack, and ship orders quickly and efficiently.

What is warehousing in simple words? ›

Warehousing is the process of storing physical inventory for sale or distribution. Warehouses are used by all different types of businesses that need to temporarily store products in bulk before either shipping them to other locations or individually to end consumers.

What are the four major types of warehousing? ›

Types of Warehouses
  • Private Warehouses. Private warehouses are owned and managed by suppliers and resellers to fulfil their distribution activities. ...
  • Public Warehouses. ...
  • Bonded Storage. ...
  • Co-operative Warehouses. ...
  • Distribution Centres.

What is the difference between warehousing and distribution? ›

A warehouse is used for storing products while a distribution center, apart from storing products offers value-added services like product mixing, order fulfillment, cross docking, packaging etc. A distribution center stores products for relatively lesser periods compared to a warehouse.

Is Amazon warehouse considered logistics? ›

Amazon's advanced logistics, transportation, and fulfillment capabilities move your products faster and more reliably from manufacturers to customers around the world.

What is the difference between fulfillment and shipping? ›

Shipping is the process of transporting goods from one place to another. Fulfillment is the process of ensuring that all the necessary steps are taken in order to deliver the goods to the customer. This includes packing, labeling, and arranging for a carrier to deliver the goods.

What does logistics mean in delivery? ›

Logistics refers to the synchronized processes that manage how your products are acquired, stored, and transported to their final destinations. Shipping is often one of many facets of logistics.

What does it mean when a package is in fulfillment? ›

If your order is “in fulfillment” that most likely means that it's been processed and is currently being prepared for shipment. Once fulfillment is completed, an order has been delivered to the customer and the process is complete.

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