Logistics services explained
Fulfilment and distribution are two terms that are often used interchangeably within logistics, but they describe different parts of the supply chain.
Put simply, fulfilment is focused on getting individual customer orders picked, packed and delivered, while distribution is focused on moving larger quantities of stock through the supply chain to businesses, retailers or other locations.
Choosing the right logistics service
Both services can involve warehousing, inventory management and transportation, but the purpose and processes involved can be very different.
Understanding the difference between fulfilment and distribution can help you choose the right logistics solution for your business, or determine whether you need a combination of both.
Fulfilment is focused on receiving, processing and delivering individual customer orders. For ecommerce businesses, this usually means picking products from storage, packing them and dispatching them directly to the customer.
Distribution is focused on moving larger quantities of stock through the supply chain. This can include transporting stock to warehouses, retailers, wholesalers or other business locations.
Order fulfilment
Order fulfilment is the process of receiving, processing and delivering a customer's order.
For an ecommerce business, this typically starts when an order is placed online. The order is then sent to the fulfilment operation, where the relevant products are located, picked from storage, packed and dispatched to the customer.
For ecommerce businesses, an efficient fulfilment process is particularly important. As order volumes increase, managing every stage internally can become time-consuming and expensive.
Fulfilment process
A typical fulfilment process can include receiving goods into the warehouse, managing inventory, receiving customer orders, picking products, packing orders, dispatching parcels, managing deliveries, processing returns and updating stock levels.
Outsourcing ecommerce fulfilment allows a third-party logistics provider to manage these processes on your behalf, helping you scale your operation without having to invest in additional warehouse space, equipment and staff.
Bulk movement
Distribution refers to the movement of products through the wider supply chain.
Rather than focusing primarily on individual consumer orders, distribution is often concerned with moving products in larger quantities. This could involve transporting stock from a manufacturer to a warehouse, from a warehouse to a retailer, or between different locations within a supply chain.
For example, a manufacturer supplying products to a chain of retailers may use a distribution service to store pallets of stock and transport them to different retail locations as required.
Distribution services
Side-by-side comparison
While there is some overlap between fulfilment and distribution, there are several important differences.
Fulfilment generally deals with individual customer orders, often involving parcels containing one or several products. Distribution tends to involve larger quantities of goods, such as pallets or bulk shipments moving between businesses and locations.
Fulfilment is commonly associated with business-to-consumer ecommerce. Distribution is more commonly associated with business-to-business supply chains, including deliveries to retailers, wholesalers and other businesses.
Pick and pack is a central part of fulfilment. Distribution may instead involve handling pallets, loading containers and consolidating larger shipments for transportation.
Ecommerce fulfilment is primarily concerned with completing customer orders efficiently. Distribution has a broader role within the supply chain, helping businesses move stock from one location or organisation to another.
Warehousing explained
Another common source of confusion is the difference between fulfilment, distribution and warehousing. Although they can all take place within the same facility, they have different purposes.
In simple terms: warehousing stores it, distribution moves it, and fulfilment gets the customer's order to them. For many businesses, these services work together rather than operating independently.
Warehousing is primarily concerned with storing and managing stock.
Distribution involves moving stock through the supply chain, often in larger quantities.
Fulfilment involves processing individual orders and getting products to the end customer.
Combined logistics
Yes, fulfilment and distribution can and often should work together. In fact, businesses with more complex supply chains may need both fulfilment and distribution services.
A business could receive a large shipment from a manufacturer and store it within a warehouse. Some of that stock could then be distributed in bulk to retailers, while another portion could be used to fulfil individual ecommerce orders.
This means a logistics provider can potentially support different sales channels from the same operation. For growing businesses, combining warehousing, distribution, and fulfilment can also simplify logistics by reducing the number of suppliers and systems involved in managing stock.
Choosing the right service
The right solution depends on how your business sells and moves its products.
If your business operates across both ecommerce and retail channels, you may benefit from a combination of fulfilment and distribution.
Outsourced support
Managing logistics internally can become increasingly difficult as a business grows. More orders mean more stock to store, more deliveries to organise and more resources required to keep everything moving.
Outsourcing to an experienced logistics provider can give your business access to warehouse space, specialist equipment, logistics expertise and established processes without having to manage everything yourself.
At Burnside3pl, we provide warehousing, distribution and ecommerce fulfilment from our 100,000 sq ft warehouse in Teesside. With more than 35 years of experience, we help businesses manage their stock and logistics as they grow.
Common questions
No. Fulfilment focuses primarily on processing and delivering individual customer orders, while distribution generally involves moving larger quantities of stock through the supply chain.
A fulfilment centre is typically focused on processing customer orders, including picking, packing and dispatching products. A distribution centre is generally focused on storing and moving larger quantities of stock to other businesses or locations.
Yes. Fulfilment services commonly include warehousing and inventory storage alongside picking, packing and dispatch.
Yes. Businesses selling through multiple channels may use distribution for bulk deliveries to retailers while using fulfilment to process individual ecommerce orders.
For businesses selling directly to consumers online, ecommerce fulfilment is usually the most relevant service. However, businesses that also supply retailers or wholesalers may need distribution alongside fulfilment.
Talk to our team
Get in touch with Burnside3pl to discuss your warehousing, distribution and ecommerce fulfilment requirements.
Select the service you require.
Comprehensive storage, pick & pack, order dispatch, and transportation services for your business.
Container destuffing/loading, warehousing/pallet storage, stock management, and debagging services to optimize your logistics and inventory processes.
No sure which solution is right for you? Contact our team