Unravel the differences between warehousing and fulfilment. Gain insights into their roles, overlaps, and how they complement each other in an ecommerce operation.

Warehouse vs Fulfilment: Is There a Difference?

Warehouses and fulfillment centers are often mistaken for each other, but they serve different purposes. Knowing the difference helps you optimize your storage and shipping processes, saving time and money. It also ensures you can meet customer demands efficiently, improving satisfaction and loyalty.

We explain the difference between a fulfillment center vs warehouse, helping you determine which is best for your eCommerce fulfillment needs.

A warehouse is a large facility used to securely store goods and materials. It is designed for long-term storage and usually holds inventory in bulk. Warehouses are essential for maintaining a steady supply of products and managing stock levels.

There are different types of warehouses to suit various storage needs:

Public warehouses are available for rent by businesses. They are managed by third-party logistics (3PL) providers and offer flexible storage solutions without long-term commitments. These warehouses are ideal for small to medium-sized businesses that need temporary or scalable storage space.

Private warehouses are owned and operated by large companies for their own storage needs. These facilities are customized to fit their specific requirements and often incorporate advanced inventory management systems. Private warehouses provide greater control over storage conditions and inventory handling, making them suitable for businesses with consistent and high-volume storage needs.

Bonded warehouses are used for storing imported goods before customs duties are paid. These warehouses are operated under the supervision of customs authorities, ensuring compliance with import regulations. They are ideal for businesses dealing with international trade, as they allow goods to be stored duty-free until they are ready for distribution or sale.

Climate-controlled warehouses are equipped with temperature and humidity controls to maintain optimal storage conditions. They are perfect for storing perishable items like food, pharmaceuticals, and sensitive electronics. These warehouses ensure that goods remain in good condition, preventing spoilage or damage caused by environmental factors.

Automated warehouses utilize advanced technologies such as robotics, conveyor systems, and inventory management software. These systems streamline the storage and retrieval process, reducing human error and increasing efficiency. Automated warehouses are ideal for businesses looking to improve accuracy and speed in their eCommerce warehousing operations.

Distribution centers are specialized warehouses designed to receive, process, and ship products. Often confused with fulfillment centers, distribution centers focus on the bulk distribution of goods to retailers or other distribution points. Fulfillment centers are more customer-oriented, handling the entire order fulfillment process from picking to directly shipping orders to customers.

At a warehouse, you can expect to receive essential services such as inventory storage, where your products are kept safe and organized. Inventory management is also a key service, involving the tracking of stock levels and regular audits to ensure accuracy. They can also offer returns processing, where returned items are inspected and restocked if possible.

An eCommerce warehouse is a storage facility specifically designed to handle online retail inventory. It differs from other types of warehouses by focusing on smaller, more frequent shipments directly to consumers rather than bulk distribution. Unlike a fulfillment center, which manages the entire order process, an eCommerce warehouse primarily handles storage and inventory management.

A fulfillment center is a large facility that handles the entire order fulfillment process. This includes storing inventory, receiving orders, picking and packing products, shipping, and handling returns. Fulfillment centers are designed to streamline the process of getting products to customers quickly and efficiently.

Fulfillment centers come in various forms, each designed to meet different business needs. Understanding the types can help you choose the right one for your operations.

An eCommerce fulfillment center is a specialized facility that manages the entire process of receiving, processing, and shipping online orders directly to customers. It focuses on efficient order fulfillment to ensure quick and accurate delivery. It can be used by one or more eCommerce businesses.

B2B fulfillment centers specialize in processing and shipping large orders between businesses. They handle bulk shipments, ensuring that products reach retailers, wholesalers, or other businesses efficiently. These centers focus on meeting the unique needs of B2B transactions, such as handling large volumes and managing complex logistics.

These combine traditional warehousing and fulfilment services, managing both long-term storage and order processing. They offer a comprehensive solution for various types of businesses that need both storage and fast order fulfillment.

An eCommerce fulfillment center offers a range of services to ensure efficient order processing and delivery of your products to your customers:

Order fulfillment is the main service of an eCommerce fulfillment center. It includes everything from receiving orders to packing to shipping. This comprehensive process ensures that your products are accurately and quickly prepared and sent for delivery to your customers.

To achieve this, eCommerce fulfillment centers use advanced inventory management systems to track stock levels and order details. They have efficient picking and packing methods to ensure orders are processed swiftly and correctly. They will also coordinate with shipping carriers to guarantee timely delivery, keeping your customers satisfied.

Goods are usually sent from the warehouse to the fulfillment center, unless the fulfillment center offers long-term storage. When receiving products, the fulfillment center checks the items for accuracy and quality, updates inventory records, and stores the products in designated locations. This process ensures your inventory is accurately tracked and ready for order fulfillment.

eCommerce fulfillment centers can offer real-time inventory tracking, which allows you to monitor stock levels and movements. They also offer automated reordering to prevent stockouts and overstock situations. They will use advanced reporting tools to provide insights into inventory performance, helping you make informed business decisions.

One of the key differences between fulfillment centers and warehouses is shipping. Fulfillment centers focus on quickly processing and shipping individual orders directly to your customers. This ensures fast delivery times and enhances customer satisfaction.

Fulfillment centers often have partnerships with major carriers, allowing them to negotiate better shipping rates and pass these savings onto you. They also offer real-time tracking and updates, giving you and your customers visibility into the shipping process.  By handling all logistics, they reduce the burden on your business.

Fulfillment centers prioritize customer service. They often work round the clock to ensure orders are picked, packed, and sent on time to your customers, ensuring their satisfaction and boosting your brand reputation.

The center will handle every aspect of your fulfillment process, including returns management. They process returns quickly and efficiently, updating your inventory and keeping your customers informed. This comprehensive service ensures a smooth and positive experience for your customers.

Fulfillment Center vs Warehouse: Which Do You Need?

Deciding between a fulfillment center and a warehouse depends on your business needs. Some businesses may require both to balance long-term storage with rapid order fulfillment. Consider your size, product type, and desired delivery speed to make the best choice.

If you have a small business with low inventory turnover, a fulfillment center might be all you need. Larger businesses with extensive product lines often benefit from using both a warehouse and a fulfillment center, unless the center also offers long-term storage.

Consider the type of products you sell and their storage requirements. If you sell B2B products that have longer storage needs due to seasonal demands, a warehouse is ideal. Fulfillment centers are better suited for eCommerce products that need to be shipped frequently to customers.

Fulfillment centers are designed for rapid order processing and quick delivery. If your business relies on fast shipping to keep customers satisfied, a fulfillment center is essential. Warehouses are less focused on immediate delivery and more on storing products until needed.

At OPLOG, our omnichannel fulfillment center seamlessly integrates all the technology and resources needed for your B2B and B2C operations. We expertly handle everything from inventory management to order processing and shipping, ensuring your operational processes are smooth and error-free. Receive all the operational support you need to streamline your fulfillment and boost your customer satisfaction.

Master the language of global shipping with our guide on Incoterms: From DDP to EXW, learn how to navigate international logistics for smooth transactions.

DDP vs Other Incoterms

Incoterms are like the traffic lights of global commerce: they keep things moving smoothly, preventing misunderstandings.

International shipping can be complex, with various challenges and rewards. To ensure a smooth logistics operation, stakeholders use Incoterms, a global shipping language that outlines the journey of goods from factory to doorstep.

The shipping terms range from Delivered Duty Paid (DDP) to Ex Works (EXW), and choosing the right one depends on the specific requirements of the buyer and seller.

Understanding Incoterms is essential for stakeholders to know their responsibility and ensure a hitch-free logistics process.

DDP stands for Delivered Duty Paid, an Incoterm that defines the responsibilities and risks of buyers and sellers in international trade.

Under DDP, the seller is responsible for delivering the goods to the buyer’s place of destination and paying for all the costs and duties involved in the transportation and clearance of the goods.

DDP is the most favorable term for the buyer, as it transfers all the risks and obligations from the seller to the buyer. The buyer does not have to worry about additional charges or delays in delivering the goods, as the seller bears all the consequences. The buyer only has to pay the agreed price for the goods and receive them at the specified location.

However, DDP is also the most unfavorable term for the seller, as it exposes the seller to the highest level of risk and liability. The seller has to deal with the customs and regulations of both the exporting and importing countries, as well as arrange for the insurance and transportation of the goods.

The seller also has to bear the costs of any damages or losses that may occur during the goods' transit. Therefore, the seller should only use DDP when they have high trust and confidence in the buyer and the destination country.

DDP puts most logistics responsibility on the seller, with the buyer only having to pay and receive goods. Handling the logistics process in-house can make DDP a daunting task for sellers due to the many rules and regulations that govern international trade.

Partnering with a fulfillment partner would be the best option, as the 3PL fulfillment company takes care of picking up items, packaging them, and moving them to the desired countries.

When partial shipping is needed, shipping items in less-than-container load (LCL) is more accessible.

Maximizing Efficiency with Partial Shipping: A Logistics Solution for Smaller Loads

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Offering DDP can make business more appealing to international buyers who value convenience and predictability. Additionally, you have more control over the delivery process as you get to choose the carrier and can track the shipment progress.

Opting for DDP significantly reduces the number of logistics operations you need to handle. However, you lose some degree of control over the shipping processes. This is because, in DDP, you depend on the seller to manage the entire logistics process efficiently.

This can be a significant challenge, especially when working with a seller for the first time and needing to gain prior knowledge or experience of their logistics prowess.

In such cases, it is essential to make an extra effort to ensure that the seller can deliver the products on time and in the proper condition. You may also need to communicate your expectations clearly and establish a good working relationship with the seller to minimize risks and uncertainties.

For complete control over shipping processes, the best option would be EXW. More on this later.

How does DDP compare to EXW and DAP? These three incoterms share the responsibilities required of the buyers and sellers.

While DDP shifts most duties to the seller, EXW does the complete opposite, and it is commonly used during domestic trade.

It’s challenging to implement in international trade because the buyer has to manage the loading and export formalities in a different country with unfamiliar trade laws.

DAP is somewhere in between: it splits the costs and risks between the seller and the buyer.

Here’s a table highlighting the key differences.

Incoterms are commercial terms used in international trade contracts and shipping documents that outline the responsibilities and risks of buyers and sellers in cross-border transactions.

There are 11 Incoterms in the latest version (2020), divided into two categories:

· Rules for sea and inland waterway transport.

Let us use a practical example to give a perspective of how Incoterms work. Suppose a company in the Netherlands wants to buy 100 laptops from a supplier in China. They agree on the following terms:

· The price of the laptops is USD 50,000

· The Incoterm is DAP (Delivered at Place)

· The place of destination is the buyer’s warehouse in Amsterdam

· The seller is responsible for delivering the goods to the buyer’s warehouse, ready for unloading and clearing them for export

· The buyer is responsible for unloading the goods, clearing them for import, and paying for the duties and taxes

· The risk of loss or damage to the goods transfers from the seller to the buyer when the goods are available for unloading at the buyer’s warehouse

In this example, the seller would have to pack the laptops, transport them to the port of Shanghai, complete the export formalities, ship them to Amsterdam, and arrange local inland transport to the buyer’s warehouse.

The buyer would have to unload the goods from the truck, complete the import formalities, and pay customs duties and taxes. If the goods are damaged or lost during the transit or unloading, the buyer must bear the loss or claim the insurance.

Incoterms have different implications for the stakeholders' costs, risks, and obligations.

EXW (Ex Works): The seller delivers the goods at their premises or another named place, and the buyer bears all risks and costs involved in transporting the goods to the desired destination.

FCA (Free Carrier): The seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place, and the buyer bears all risks and costs after the delivery.

CPT (Carriage Paid To): The seller delivers the goods to the carrier, or another person chosen by the seller at an agreed place and pays the carriage costs to bring the goods to the named destination. The buyer bears all risks of loss or damage to the goods from the point of delivery.

CIP (Carriage and Insurance Paid To): The seller is responsible for delivering the goods to a carrier or any other individual nominated by the seller at a pre-agreed location. The seller must also bear the cost of carriage and insurance to take the goods to the designated destination. Moreover, the seller is accountable for insuring the goods during transit. However, the buyer assumes all risks of loss or damage to the goods once delivered.

DAP (Delivered at Place): The seller is responsible for delivering the goods to the buyer at the specified destination. This includes placing the goods at the buyer's disposal on the arriving means of transport and ensuring they are ready for unloading at the named place. The seller is accountable for all risks associated with transporting the goods to the named place.

DPU (Delivered at Place Unloaded): When a seller delivers goods to a buyer, the risk is transferred to the buyer once the goods are unloaded from the means of transport and made available at the agreed-upon destination. The seller is responsible for all associated costs and risks of transporting and unloading the goods at the destination.
DDP (Delivered Duty Paid): The seller is responsible for delivering the goods to the buyer. This means they must make the goods available to the buyer at the named destination. The goods must be cleared for import and be ready for unloading upon arrival. The seller is responsible for all the costs and risks involved in bringing the goods to the place of destination. This includes the cost of transporting the goods and any fees associated with clearing the goods for export and import.

FAS (Free Alongside Ship): The responsibility of delivering the goods lies with the seller until they are placed alongside the vessel at the named port of shipment. This means the seller is accountable for any costs and risks of damage or loss to the goods until that point. However, once the goods are placed alongside the vessel, the buyer must bear all costs and risks of loss or damage to the goods from that point onwards.

FOB (Free on Board): The seller is responsible for delivering the goods on board the vessel nominated by the buyer at the named port of shipment. Alternatively, the seller may procure the goods already delivered to the vessel. Until the goods are on board, the seller bears all the risks of loss or damage. From that point onwards, the buyer bears all the costs and risks of loss or damage to the goods.

CFR (Cost and Freight): The seller contracts for and pays the costs and freight necessary to bring the goods to the named destination port. The buyer bears all risks of loss or damage to the goods from the point of delivery.

CIF (Cost, Insurance, and Freight): The seller contracts for and pays the costs, freight, and insurance necessary to bring the goods to the named destination port. The seller also contracts for insurance cover against the buyer’s risk of loss or damage to the goods during the carriage. The buyer bears all risks of loss or damage to the goods from the point of delivery.

It is important to note that Incoterms should not be chosen by one party alone. Instead, both parties—the buyer and seller—should engage in a joint decision-making process through negotiation and agreement to determine the most suitable Incoterms for their needs and interests.

Certain Incoterms may be more advantageous for the buyer or seller, depending on the situation. For instance, EXW (Ex Works) is the most favorable term for the seller, as it transfers all costs and risks to the buyer once the goods are available at the seller's premises.

On the other hand, DDP (Delivered Duty Paid) is the most advantageous term for the buyer, as it transfers all costs and risks to the seller until the goods are delivered to the agreed destination.

Therefore, it is crucial that buyers and sellers carefully evaluate the pros and cons of each Incoterm before settling on one. Specify the version of the Incoterms as listed in Incoterms 2020. By doing so, you avoid any confusion or disputes arising from differing interpretations or expectations.

It could be tricky balancing international logistics, business expansion, and revenue growth. It gets trickier when you throw in shipping options and how they work.

OPLOG has a team of fulfillment specialists who can help you choose the most appropriate Incoterm based on specific requirements, trade routes, and product types.

Our global omnichannel fulfillment network handles transportation, customs clearance, and deliveries, so you spend less time on fulfillment and shipping and more on capturing new markets across different locations.

Moreover, we use technology to finesse your supply chain operations from suppliers to warehousing and set last-mile delivery standards.

Do you need to get started with international shipping? Let's talk.

Get in Touch with our Fulfillment Experts

DDP vs Other Incoterms: Making the Right Choice For Your Business

Partial shipping: boosts efficiency & savings for small shipments. Benefits, challenges & future prospects explored.

Maximizing Efficiency: Partial Shipping

A concern for businesses committed to fulfilling customer orders promptly is usually logistics costs.

Why pay for the whole truck when you can pay for the part? Why delay order fulfillment when you can take advantage of fast delivery services? Why risk the damage when you can avoid the hassle?

For example, a business owner who must ship products across borders or different cities could have two options: rent a full truckload (FTL) and pay for the entire space, even if you do not use it all, or share a less-than-truckload (LTL) with other shippers and pay for the weight and dimensions of your freight, plus some extra fees.

Both options could be quite expensive and inefficient. However, there is a third option: Partial shipping. It is like a hybrid between FTL and LTL, but with more efficiency and fewer drawbacks.

In this blog post, we will explore the concept of partial shipping in logistics and show how it can help maximize efficiency and save money and time, especially for smaller shipments.

·        What is Partial Shipping?

·        Determining the need for Partial shipping

·        The future of partial shipping in logistics

Partial shipping is a mode of transportation that allows freight shipment on a truck that is shared with other shippers. Unlike full truckload (FTL) or less-than-truckload (LTL) shipping, partial shipping does not require filling up the entire trailer or paying for the space that isn’t in use.

Instead, you only pay for the space that the freight occupies, which can range from 10 to 30 feet in length or up to 30,000 pounds.

For example, a mobile phone retailer places an order for the delivery of 5,000 smartphones from Vietnam. However, there are only 3,000 smartphones in stock, but the remaining 2,000 are backordered.

Using Partial Shipping, the company goes ahead with shipping the 3,000 available immediately, then plans to ship the 2,000 separately when available. This approach prevents delays in the entire order processing.

For this process to be seamless, this company requires the services of a 3PL company that offers partial shipping services.

Logistics companies or 3PL partners are the key stakeholders in the success or failure of the process. And how it works solely depends on their delivery network and efficiency.

Here’s a breakdown of how partial shipping works:

Step 1: Place an order for partial shipping with a logistics company specializing in this service. Provide the freight details, such as the size, weight, value, destination, and delivery time.

Step 2: The logistics company locates a suitable truck that meets order requirements and has enough space for freight. Your freight will be separated from that of other shippers'.

Step 3: The logistics company picks freight from your location and loads it onto the truck. The freight is secured and appropriately labeled to avoid any confusion or damage. The truck driver receives the instructions and the route for the delivery.

Step 4: The truck delivering your items will transport them directly to the desired destination without stopping or transferring them at other terminals or hubs. On arriving at the destination, the truck driver will unload the items and obtain proof of delivery from the recipient.

Step 5: The logistics company invoices for the partial shipping service based on the space your items occupy on the truck. You pay only for the space used, not the whole truck or the weight of the freight.

What are the benefits of partial shipping?

Partial shipping offers several benefits for businesses dealing with smaller loads or shipments. Here are some key advantages:

One of the challenges of retail brands is meeting customers' demands, especially during peak seasons.

Partial shipping provides a window to provide fast delivery of some readily available items. Customers receive essential parts of their order sooner, leading to better overall satisfaction.

This practice is beneficial for high-demand items that customers need urgently. Partial shipping helps reduce delivery times and increase customer satisfaction, which is essential for any business.

Why pay for the whole truck when you can pay for the part? Partial shipping is cost-effective if you do not require a full truckload. It allows sharing transportation costs with other shippers, reducing the overall shipping costs.

Traditional shipping companies would request full pay for a full truck to ship out items, which challenges growing businesses' revenue. This is because the space in the truck or container is beyond their needs.

With partial shipping, you can transport smaller quantities of goods at a lower cost, eliminating the need to pay for the whole truck when only a part is required.

As businesses evolve, so do customer demands, which can change frequently.

Your logistics operations and last-mile delivery must be responsive and adaptable to keep up with these changes.

One way to achieve this is by using a partial shipping approach. Partial shipping allows you to ship smaller quantities of products, regardless of whether it fills an entire truckload or not.

This approach provides greater flexibility, allowing you to ship goods more frequently, reduce lead times, and respond faster.

Smaller shipments can be more efficiently transported when consolidated. However, this is only possible with logistics operations that support partial shipping.

You can save time and money by opting for faster deliveries instead of waiting for a full truckload with multiple shipments.

This is particularly useful for time-sensitive products that must be delivered soon. Additionally, you can lower the environmental impact of transportation and reduce your carbon footprint by minimizing the number of vehicles on the road.

Access to LTL (Less-Than-Truckload) Services

Regarding shipping goods, LTL (Less Than Truckload) services are often an excellent choice for smaller shipments. One of the most significant advantages of LTL is that it offers a cost-effective solution for businesses that need more goods to fill an entire truck.

This is because LTL is primarily concerned with maximizing the truck space available by combining multiple shipments from different customers into one load.

In addition to cost savings, LTL focuses on operational efficiencies such as accurately classifying shipments, loading and unloading cargo, and maintaining a competitive rate structure.

Working with a 3PL partner like OPLOG gives you access to optimized routes and delivery schedules for faster transit times and more flexible pickup and delivery options.

Partial shipping can reduce warehousing costs through on-demand warehouse storage, as businesses can ship goods more frequently, avoiding the need for extensive storage space.

On-demand warehousing lets you scale up, down, or sideways without commitments to a long-term lease. With this fulfillment model, you can negotiate with multiple warehouses across geographical locations, building a global fulfillment network that is cost-effective and demand-responsive while maximizing last-mile delivery that meets customer expectations.

On-Demand Warehousing Making Your Fulfillment Flexible

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For efficient international shipping, partnering a 3PL fulfillment service with a global warehouse network for efficient international shipping can streamline logistics operations, reduce costs, and maintain access to emerging markets.

Partial shipping is a great way to protect your freight from damage. This is because it reduces handling and exposure.

Full truckload (FTL) shipping can expose your freight to wear and tear, especially if it needs to be packaged or secured well. On the other hand, Less-Than Truckload (LTL) shipping can increase the risk of damage or loss, especially if your freight is mixed with other shippers' products or handled by different carriers.

Partial shipping solves these problems by keeping your freight on the same truck and separated from other loads.

Partial shipping can also have some disadvantages, such as:

It is important to note that the shipping cost can vary depending on the size and weight of your freight. Partial shipping costs more per unit than Full Truckload (FTL) or Less-than-Truckload (LTL) shipping.

With FTL shipping, you may enjoy a lower rate per mile if your shipment fills up the entire trailer. On the other hand, LTL shipping can offer you a lower rate per pallet if your shipment is small and light.

Finding partial shipping can be more challenging than FTL or LTL shipping, and it largely depends on your freight's location and demand.

In high-volume areas or common destinations, FTL shipping is usually readily available, while in low-volume areas or unique destinations, LTL shipping may be more widely available.

However, partial shipping may be less available if your freight is in a remote area or has a rare destination.

Depending on the required service and options, partial shipping is not as flexible as FTL or LTL shipping.

FTL shipping gives you more control over pickup and delivery times, the route and driver, as well as the security and tracking of the freight. On the other hand, LTL shipping provides more options for accessorial services, delivery appointments, and guaranteed delivery times.

However, partial shipping may have more limited service levels and availability depending on the logistics or fulfillment partner choice.

Determining the need for partial shipping

To determine if you need partial shipping, ask yourself the following questions:

·        Do you often receive orders that contain more than one product or a large quantity of products?

·        Do you have products that are frequently out of stock or have long lead times?

·        Do you have multiple warehouses or fulfillment centers in different regions or countries?

·        Do you want to offer your customers more flexibility and convenience in their delivery options?

If you responded positively to any of the above questions, then choosing partial shipping could be a viable option for your brand. However, it is essential to keep in mind that this approach presents some challenges, such as keeping track of inventory, updating order statuses, and managing shipping costs.

Therefore, consider the following factors before implementing partial shipping:

·        How will you track each product's inventory levels and availability across warehouses or fulfillment centers?

·        How will you update the order status and notify customers of each shipment and its tracking information?

·        How will you handle returns, exchanges, or cancellations of partial orders?

·        How will you calculate and optimize each shipment's shipping costs and fees?

To tackle the potential obstacles, consider partnering with a global 3PL fulfillment service capable of handling partial shipments. Such a service can equip you with the necessary technology, infrastructure, and expertise to manage freight efficiently and effectively.

OPLOG's tech-powered fulfillment service offers international partial shipments with omnichannel functionality for real-time order and delivery tracking, streamlining your operations.

The future of partial shipping in Logistics

The logistics industry is poised for significant developments driven by technological advancements, sustainability initiatives, and evolving supply chain management practices. Integrating artificial intelligence, machine learning, and automation is expected to be pivotal in optimizing various aspects of partial shipping operations.

These technologies will contribute towards improved route planning, enhanced load optimization, and real-time tracking, all of which will increase the efficiency of the partial shipping process.

·        Implementing data analytics will become increasingly significant, allowing logistics companies to predict trends in demand, shipment volumes, and other crucial factors. This data-driven approach will enable informed decisions and optimize shipping processes more effectively.

·        Sustainability is a vital factor in shaping the future of logistics, and partial shipping is an effective way to reduce the number of vehicles on the road and optimize transportation resources. This aligns well with the broader trend towards sustainable and eco-friendly logistics practices. The logistics industry will likely see a continued emphasis on implementing green initiatives, and partial shipping will play a key role in meeting the demand for more environmentally responsible shipping solutions.

 ·        In urban areas where efficient and sustainable delivery options are crucial, innovations in last-mile delivery solutions will complement partial shipping. Technologies such as drones and electric vehicles may become more prevalent in the last-mile delivery of partial shipments.

Partial shipping is an efficient and cost-effective mode of transportation for businesses that need to ship smaller loads of goods.

With the help of a reliable logistics company or a 3PL partner, you can take advantage of the benefits of partial shipping and streamline your supply chain operations.

As the demand for faster and more flexible shipping options increases, partial shipping will likely become an increasingly popular solution for businesses looking to optimize logistics processes.

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Fill rate measures the percentage of customer demand met from stock, indicating supply chain effectiveness.

OPLOG Glossary | Fill Rate

Fill rate is a key performance metric in logistics that measures the percentage of customer orders fulfilled entirely and on time.  

Fill rate, in the context of inventory management and order fulfillment, refers to the percentage of customer demand or orders that can be fulfilled from available inventory at a given time. It measures how well a company or supply chain can meet customer orders with the stock on hand.  

The fill rate is calculated by dividing the total number of items or orders fulfilled by the total number of items or orders requested and multiplying by 100 to express it as a percentage. It provides insights into the effectiveness of inventory management and the ability to satisfy customer demand.  

A high fill rate indicates that a company can meet a significant portion of customer orders promptly and, on the whole, suggests high customer service and operational efficiency. Conversely, a low fill rate implies that a company needs help to fulfill customer orders due to stockouts, backorders, or inventory management challenges. 

Fill rate

What is the fill rate?

How to calculate the fill rate?

How to evaluate the fill rate?