Difference Between Fulfillment Centers and a Warehouse

Many times, lack of awareness results in the usage of the terms “fulfillment centers” and “warehouse” interchangeably. Some of the functions may be similar but the physical differences are noticeable. Let us understand the basic differences between fulfillment centers in Los Angeles and a warehouse.

A warehouse is a huge, spacious building used to store finished goods until it is ready for redistribution to the consignee. The size, shape, and function of a warehouse are dependent on the type of inventory that it is expected to store. There are several types of warehouses. These are-

·        Private Warehouse

·        Public Warehouse

·        Automated Warehouse

·        Climate-controlled Warehouse

·        On-demand Warehouse

·        Distribution Center

Fulfillment centers, on the other hand, are similar to a warehouse in Los Angeles with a difference that it stores the inventory for a short time until it is redistributed to the customer.

Where warehouses usually serve B2B Customers, fulfillment centers are known to serve primarily B2C customers and eCommerce businesses.

In a warehouse, inventory is shipped in and out on a shipping pallet and the majority of operations related to logistics in a warehouse takes place at a freight carrier.

A warehouse aims to ensure efficient and safe long-term inventory storage which may be for long periods. It stores inventories for extended periods. Conversely, a fulfillment center processes the order in a minimum possible time. These centers work under the aegis of a 3PL Company in Los Angeles and store inventory for no more than a few months. They carry out a streamlined and expedient process to meet their fulfillment solutions. These centers are adept at managing operations for multiple small businesses and eCommerce retailers.

Thus, the differences between these two entities are very ambiguous and that is the reason both terms are sometimes used interchangeably.