Fulfillment network
A fulfillment network is the set of all locations a retailer can fulfill orders from, such as warehouses, stores, micro hubs and suppliers, managed as one connected system.
Definition
A fulfillment network is the set of all locations a retailer can fulfill orders from, such as warehouses, stores, micro hubs, dark stores and suppliers. Instead of working separately, these locations are managed as one system with shared inventory data and one logic that decides which location fulfills which order.
Types of fulfillment locations
- Managed facilities: warehouses and stores the retailer operates directly.
- Suppliers: partners outside the retailer’s control, for example in dropshipping.
- Facility groups: locations bundled by region, format or capabilities, so rules apply to all of them at once.
Centralized vs. distributed fulfillment
In a centralized model, most orders ship from one or a few warehouses. A distributed fulfillment network uses every suitable location, including stores, to fulfill orders closer to the consumer. This shortens delivery times and cuts shipping costs, but requires real-time inventory and routing across all locations.
How to manage a fulfillment network
- Real-time stock for every location.
- Order routing that picks the best location for each order.
- Store processes for picking, packing and handover.
- Delivery promises based on what the network can actually fulfill.
Fulfillment networks and omnichannel
A connected fulfillment network is the foundation for ship-from-store, click-and-collect and ship-to-store. Without it, these services depend on manual coordination and break down as order volume grows.