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What is Fulfillment - Definition, Product Fulfillment and Service Fulfillment


What is Fulfillment Fulfillment is the process of following through a transaction from ordering through delivery. Fulfillment procedures differ significantly dependent on whether customers request products or services. Fulfillment falls into two broad categories - product fulfillment and service fulfillment.

Product Fulfillment

Product Fulfillment is the process of product manufacturing, warehousing, assembly, quality control and delivery of product directly to customers without the finished product going back through the company that has created the product. Customer can place orders via the Web, e-mail, telephone or fax.

Service Fulfillment

Service Fulfillment doesn't involve delivery of physical goods. For instance, Membership fulfillment is a typical example of service fulfillment. Service Fulfillment is the process of making particular services available to the subscribed members. Service fulfillment involves setup of customer profiles in computer systems, coordination with various service providers, quality control and delivery of services to the customers, for instance e-mail customers username/password for accessing membership computer systems, or mail the membership cards to the customers.

Choosing a Fulfillment Vendors

Choosing fulfillment companies for your business is a complex decision making process. Besides the cost and quality of the services there're more fulfillment specific requirements to take into consideration. The type of goods to be delivered, the volumes of orders, warehouse locations and the dependence of fulfillment activities on other business processes all impact the fulfillment services you will choose.

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