The Procurement Glossary » Order Fulfillment

Order Fulfillment

Inventory & Logistics

Definition

The process of receiving, processing and delivering orders to the requester or customer.

Explanation

Fulfillment spans picking, packing, shipping and delivery confirmation. Its speed and accuracy define the buyer or customer experience, and it is a common outsourcing target (to 3PLs) for scale and reach.

Example

Same-day fulfillment from the local depot gets urgent parts to the site within hours.

Related terms

• Warehouse Management — The control of storage operations — receiving, put-away, picking, packing and dispatch — to move goods efficiently and accurately.
• Third-Party Logistics (3PL) — Outsourcing logistics activities — warehousing, transport, fulfilment — to a specialist provider.
• On-Time In-Full (OTIF) — A delivery metric measuring the share of orders delivered both on the promised date and in the complete quantity.
• Logistics — The management of the movement and storage of goods — transport, warehousing, handling and delivery.

Frequently Asked Questions

What is Order Fulfillment?

The process of receiving, processing and delivering orders to the requester or customer. Fulfillment spans picking, packing, shipping and delivery confirmation. Its speed and accuracy define the buyer or customer experience, and it is a common outsourcing target (to 3PLs) for scale and reach.

Can you give an example of Order Fulfillment?

Same-day fulfillment from the local depot gets urgent parts to the site within hours.

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