Fulfillment, or logistics outsourcing, is becoming a key tool to allow companies to focus on strategic areas of growth. Its importance is expected to grow by around 14 per cent each year, reaching US$272.14 billion in 2030. [1]

Despite challenges such as rising inflation, the conflict in Ukraine and increased international tensions, the Polish e-commerce market has been growing rapidly in recent years and is predicted to be worth PLN 187 billion by 2027.[2] As a result, companies are beginning to feel a new need to expand their operations. As a result, they are increasingly choosing to work with companies offering so-called fulfilment services, which take over responsibility for logistics processes, allowing them to focus on core competences such as marketing, sales or procurement.

Fulfillment is an end-to-end solution that delegates some or all of the order handling tasks to a specialist logistics company. As part of this process, it takes care of warehousing, monitoring stock levels, receiving and processing orders, picking and packing products, shipping and handling them, managing returns and processing payments and customer service. In addition, it prepares customer activity reports with information on sales, returns or complaints. Some companies also offer repair, refreshment or disposal services for returned products.

- Fulfilment services allow businesses to remain flexible in their inventory management. By not having to maintain large warehouses of finished goods, they can save on storage costs and avoid the risk of building up excess stocks. By effectively monitoring their status in real time, they can manage the availability of goods more efficiently and prevent situations where they run out. With over 14,000 active SKUs (Stock Keeping Unit - a special code assigned to each product in the assortment, allowing more efficient stock management) on the stand, we need to balance the key elements of cooperation: the size of the stand, the speed of supply from warehouses in the European Union, the variability of orders for individual components or assembly kits. This type of cooperation at the Geis Poznań branch is what we do with one of the best-known leaders in the automotive market,' says Mariusz Cierluk, Geis PL Branch Director.

Using fulfilment services not only saves businesses time and energy, but also has a positive impact on the quality of customer service. With a professional approach to order fulfilment and fast delivery of goods, a business can provide them with an excellent shopping experience, thereby increasing customer loyalty and building a positive brand reputation.

Warehousing in fulfilment

One of the key elements of fulfilment is the warehouse, which is a specialised logistics centre that provides a comprehensive service for e-commerce orders. How exactly does the use of this type of service work?

Once the goods are received at the warehouse, the quality and quantity of the delivered products are checked. The next step is to register the goods in the facility management system, which often optimises the location and availability of goods. In addition, it constantly monitors stock levels and can automatically inform you of the need for replenishment. Thanks to the orderly stacking of goods provided by the organisational systems, easy availability and fast order picking is ensured. Once an order is placed, the products are packed according to the customer's preferences and then dispatched. The fulfillment warehouses also handle the processing of customer returns - from accepting the returned goods, to verifying them, to deciding whether to put them back in stock or communicate any damage.

- The comprehensive warehouse fulfilment service that we provide as Geis is the key to efficient logistics, for example in the plumbing and heating industry. The process of packing a shipment of goods of this segment involves several steps. Firstly, once all the products have been collected, they need to be protected from any damage that may occur in transit. Specialised packaging such as heavy-duty cardboard boxes, protective foam, bubble wrap, etc. can be used for this purpose. Fragile items can be further protected by using soft materials. Once the products have been placed in the packaging, the contents should be accurately described and the package should be marked with appropriate labels. This information can include the product name, catalogue number, quantity and operating or assembly instructions. Once carefully checked, the packages are ready for delivery. With advanced inventory management systems and an experienced team, we ensure that products are ready for shipment in a timely manner. Our fulfilment service allows customers to focus on developing their business without worrying about logistics and order processing, which we take care of,' adds Rafał Augustyniak, Geis PL Branch Director.

In addition, warehousing services enable companies to adapt efficiently to changing market needs. With the ability to increase or decrease storage space according to emerging trends or seasonal product interest, companies can effectively respond to dynamic market changes. In addition, more efficient management of resources, access to advanced infrastructure and technology, and increased operational efficiency through better utilisation of warehouse and technological resources directly influence the growth of companies.

Fulfillment, is not only the answer to the challenges of modern commerce, but also a key solution that enables companies to focus on their core business areas. In an era of increasing competition and changing customer preferences, outsourcing logistics is becoming an essential tool for effective management and business development. Thanks to the flexibility, professionalism and comprehensive services offered by fulfilment, companies can effectively meet the needs of their customers, build a strong brand and achieve success in a dynamic market environment.

[1] Report "E-commerce Fulfillment Services Market Size, Share & Trends Analysis Report By Service Type (Bundling, Shipping), By Application (Consumer Electronics, Clothing & Footwear), By Sales Channel, By Organization Size, And Segment Forecasts, 2023 - 2030." Grand View Research, Inc
[2] Report "Prospects for the development of the e-commerce market in Poland 2018-2027", Strategy&Polska