The Common Components of Fulfillment Costs
Order fulfillment is one of the main jobs handled by a warehouse or distribution center. A warehouse handles every stage of the fulfillment process, including receiving products from the manufacturer, storing, picking, packing and finally shipping orders to end customers.
Every stage of this process comes with its own set of expenses, which add up to the total fulfillment cost per order. In this guide, learn about fulfillment costs and how to calculate them to get a better idea of exactly how much it costs your company to store and ship products. The fulfillment cost per order will also help you to determine whether or not outsourcing fulfillment to a third-party logistics (3PL) warehouse will save you money.