Distribution centers (also known as fulfillment centers) and warehouses are huge buildings having spaces to accommodate business goods. But there are a lot of differences between these two in terms of the services provided. Keep reading to find out which is the best place to keep the selling goods of your business.
All About Distribution Centers
Distribution centers or fulfillment center in USA are tangible locations from which third-party providers attend customer demands for various retail companies. Generally, it is used for online businesses by e-commerce retailers for a stipulated amount of time.
Functioning & Storage Facilities
These are mainly used to fulfill orders from high production-yielding companies. The products that are ordered via the company website are directly shipped to the customer’s provided address. Here, the distribution providers take charge of the whole shipment process to the customer’s specified location. Distribution or fulfillment centers are actively operational due to the facilities provided.
Shipment and Pick-Up Facilities
A distribution center is usually handled by a distribution provider who signs a contract with the respective company and takes care of its shipment and pick-up facilities. There are various facilities that a distribution center can provide, for example, receiving and shipping goods, packing the products, marking and labeling the products that are to be sent, taking care of the returns, and many more.
All About Warehouses
Warehouses are storage units, where usually a company’s end products are stored. It is only limited to keeping the yielded products. A warehouse offers no such shipment facilities.
Functioning & Storage Facilities
Warehouses accommodate produced goods that can be sold in the future when their demand rises. But the shipment has to be done by the company itself in case of an order. Operations at warehouses are static, i.e., there is no regular movement of goods being transported.
Shipment and Pick-Up Facilities
Usually, warehouses do not provide shipment facilities as such. The company has to arrange its shipment procedure.
To Conclude
A warehouse will only cater to your storage facilities, while a fulfillment center will give you additional benefits. Depending upon your needs, you have to decide whether to buy a fulfillment center or a warehouse. There are various warehouse fulfillment center handled by US freight companies that cater to your additional shipment needs.
