Managing your goods as a business owner has never been easier. With so many storage options, all you need to do is understand their features and decide on an option. As two similar yet different storage systems, warehouses and fulfillment facilities are usually mixed up.
While they are both storage facilities, everything else between them is different. To understand both systems better, and learn their differences, we made this article. Keep reading and decide what option is better for your business.
Explanation of warehouses
The large facility filled with tall shelving units and a lot of items is called a warehouse. It is meant strictly for storing your business goods over long periods. For example, you ordered a seasonal product, and it has to stay in storage until the time comes.
There is no quick tempo working dynamics. All that needs to be done is to bring new items to the shelving or move them from one place to another using a forklift. As soon as there is a high demand for a product of yours, you pick them up and they are ready for sale.
Most of the time warehouses are used by large companies that work with a lot of products.
For example, if you have specialized in wholesale, you need a place to keep your goods. In addition, if you have arranged trades with companies that include a lot of products, a warehouse is the right choice.
However, if you have a small firm that still needs space for its products, you can simply rent a portion of a warehouse. That way, you save your finances and keep your business going.
Explanation of fulfillment facilities
While the warehouses were only meant to keep your goods until their demand rises, fulfillment facilities are completely the opposite thing. Unlike keeping the goods for a long time, these facilities are meant to keep your items shortly and manage their sales.
The fulfillment centers work with the company to have their items brought to their customers as soon as an order takes place. Most of the goods are sold from fulfillment. For that reason, the products from the warehouse go there, and not the opposite.
People cannot visit your warehouse and purchase from there, while they can easily contact your fulfillment and get what they need. That is why there is a constant high tempo working dynamics. Employees at the fulfillment are receiving products, packing orders, handling transportation, and taking care of possible returns.
In addition, these centers are equipped with the latest software used to keep track of everything and hold the analytics. China fulfillment nowadays have some of the best software/organization.
What is the right thing for you
By learning the purpose of each facility and especially learning their differences, you should already know what is better for your situation.
In case you only need a place to have your items stored, then having a warehouse on a lease should be the better option. However, if you see that you are losing too much time on processing orders, finding the best fulfillment near you should be your move.