How does a fulfillment center handle merchandise differently from a distribution center?

Fulfillment centers primarily focus on processing orders and delivering products directly to customers, which is a key distinction from distribution centers. Distribution centers typically manage inventory for later shipment to retail locations or warehouses, emphasizing bulk handling and transportation efficiency rather than direct-to-consumer shipping.

By delivering directly to customers, fulfillment centers are set up to handle individual orders rather than bulk shipments, which allows them to cater to e-commerce businesses that require quick and accurate order processing. This model is essential in today’s market, where consumers expect fast delivery times and personalized service.

In contrast, the other choices do not accurately represent the operational characteristics of fulfillment centers. For example, fulfillment centers do utilize technology for inventory management and order processing, operate at various scales depending on the business needs, and maintain inventory to fulfill customer orders efficiently. Therefore, the direct delivery aspect highlights the unique role that fulfillment centers play in the supply chain.