Fulfilment is the totality of all activities that serve to supply the customer and fulfil other contractual obligations after the conclusion of a contract. Basically, the process can include a range of activities – but typically fulfillment focuses on storage, picking, shipping, and delivery. In some cases, services such as payment for goods, after-sales service and returns processing are also taken over. Other tasks that can be taken on are the maintenance of the online shop and the maintenance of the merchandise management system (ERP system).
In business, a purchase order is a binding order from a customer to conclude a sales contract. The word “order” is most often used in business when the goods are not handed over step by step between the buyer and the seller in exchange for payment, or when the services cannot be provided immediately, but when their delivery takes place later. For this reason, orders are not placed in physical retail, but mainly in mail order, distance selling and online trading, often by means of a product catalogue. In the catering industry, one can still speak of ordering, because drinks and especially food cannot be delivered immediately.
Depending on the nature of the products and production chains, there are different ways in which fulfillment is carried out and by whom. The proportion of fulfillment can often be optionally different depending on the type chosen. Fulfillment service providers have different service spectrums.
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These include, in particular:
- Acceptance of order
- Storage
- Picking
- Packaging
- Prepayment
- Dispatch
In addition, fulfillment may also include the following activities:
- Returns Management
- Spare parts
- Repair
- Disposal of returned goods
- Customer service
- Invoice
- Warning
Fulfillment tasks are often handled by specialized logistics service providers, who are then also referred to as “fulfillment centers”. The term fulfillment usually comes up in the context of e-commerce. In this case, the logistics service provider takes care of all the tasks that take place after placing an online order. The operator of the online store has delegated these tasks to the specialist. This is why it is referred to as business process outsourcing or “all-round carefree logistics”. In the context of e-business transactions, it is also referred to as e-fulfillment. In some cases, payment transaction services such as credit checks or the assignment of receivables are left to other providers.
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