What are we marketing here ?

______________________________________

______________________________________

Are we marketing "Warehousing" or "Order Fulfillment" ?

It is time to figure out what exactly are we marketing when we say "Marketing Order Fulfillment Services". It is important to establish as to what words will seekers of such services be typing in the search engines when all they want is a warehouse company who can undertake shipping and handling for them.



Some of the terms that have been thrown out there are: 3PL Warehousing, Order Fulfillment, Distribution and Warehousing, e-Fulfillment, Public Warehousing, Warehouse Services and so on.



It is important that the companies offering all the above services agree on a key term that relates to the market segment they are targeting. In my opinion the market segment is broken up as follows:

• 3PL Warehousing : Stands for third party logistics warehousing. This term is most appropriately used when you need a finer control over trucking, shipping and warehousing. For large companies which need more control over their logistics operation, 3PL warehousing will actually translate into getting into a long term contract with a warehousing company. The warehousing company will in return customize their services as per the needs of client. The customization can entail using customized warehouse management system, having dedicated floor space and having the operations customized as per the client's requirement. This arrangement is also know as contract warehousing. The main difference here is that such an arrangment requires a long time commitment from the client.
  
  Usage: Used mostly in context of providing warehousing services to very large customers, looking for customized services and willing to work on a long term basis.
  
  Synonyms: Warehousing and Distribution, Contract Warehousing
  


• Order Fulfillment : Order fulfillment, my personal favourite, is most often used when working with a e-commerce company. Order fulfillment should entail the full cycle of receiving orders online and also processing returns. The client in most cases will be ambiguous of how its being done internally. The only aspect revealed to the client is the cost structure of price for storage, picking and handling and shipping. Also, returns are priced seperately. Once the client agrees on the price structure, behind the scenes a lot of consolidation is done by the fulfillment company. Therefore, many different companies are sharing the same warehouse resources.
  
  Usage: Used mostly in context of ecommerce companies and small to medium sized wholesale distributors.
  
  Synonyms: e-Commerce Fulfillment, Fulfillment House, Public Warehousing

Who are our customers ?

In my opinion there are only two sectors 3PL warehouses serve.

1. Large companies looking to outsource their warehousing. These companies typically are manufacturers or large wholesale distributors. They can also be large retail chains. Go with the term 3PL warehousing.
   


2. Small and Medium sized e-retailers and wholesale distributors. These are the guys who need back to back order fulfillment services. This is the market that will see double digit growth in the coming years. Go with the term Order Fulfillment.

Therefore when marketing the services your warehouse provides, lets keep this distinction in mind.