Choosing the right fulfillment facility matters deeply for DTC founders, retail brand marketers, and procurement leads evaluating 3PLs or kitting partners. As your brand scales, partnering with a fulfillment facility that offers speed, accuracy, and reliability lays the foundation for growth and customer satisfaction. This detailed guide breaks down what a fulfillment facility is, the standard workflows it follows, key pricing drivers, and the critical SLAs you should expect—helping you make informed decisions to move fast and ship accurately in today’s competitive ecommerce and retail markets.    

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What Is a Fulfillment Facility and When Should You Use One?

A fulfillment facility (also commonly known in U.S. English as a fulfillment centre; see the       Cambridge Dictionary definition) is a third-party logistics (3PL) partner that stores inventory and manages the entire order lifecycle. This comprehensive process covers everything from receiving inbound goods, inventory management, order picking and packing, shipping, through to returns. Additionally, many facilities offer value-added services such as custom kitting, assembly, and printing to enhance brand presentation and customer experience.    

Unlike a warehouse, which primarily stores inventory, a fulfillment facility integrates warehousing with operational execution around order fulfillment. This includes supporting EDI/ASN compliance (e.g., 940/945 transaction sets), handling outbound shipments, and enabling real-time system visibility.    

When Should You Use a Fulfillment Facility?

Evaluating your need for a fulfillment facility depends on your brand’s growth stage and operational complexity. Consider outsourcing fulfillment when:

  • E-commerce volumes grow beyond manageable in-house operations, requiring consistent same-day or next-day order pick and pack capabilities.
  • Retail distribution channels expand, needing professional compliance with retailer routing guides, advanced shipping notice (ASN) accuracy, and electronic data interchange (EDI) support.
  • Inventory accuracy is critical to prevent costly stockouts, oversells, and costly expedited shipments.
  • Complex product assortments such as subscription boxes, promotional bundles, or multi-SKU kits require precise assembly with branded inserts and custom packaging.
  • You want to refocus internal resources on marketing, brand growth, and product development rather than logistics execution.

Outsourcing to a dedicated fulfillment facility lets your brand leverage established operating procedures, real-time inventory management, and experienced teams without sacrificing control. Clear SLAs (service-level agreements) and KPIs (key performance indicators) help maintain transparency and accountability throughout the supply chain.    

For a deeper dive into how third-party logistics providers support ecommerce growth, you can review All Points’ 3PL guide for e-commerce and Amazon sellers or foundational content on fulfillment operations offered by industry resources such as       Inbound Logistics and Adobe Business.    

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Standard Fulfillment Facility Workflow: Step-by-Step SOP

     A well-structured fulfillment facility follows a dependable, repeatable workflow that ensures orders ship fast, accurately, and with premium packaging. Below is a thorough breakdown of the standard operating procedure (SOP):    

1. Receive Inbound Inventory (Dock-to-Stock Process)

  • Appointments are scheduled to receive shipments during designated dock hours, maximising efficiency.
  • All inbound shipments are verified against expected ASNs and purchase orders to confirm SKU counts, lot numbers, and expiry dates where relevant.
  • A thorough dock-to-stock process ensures inventory moves quickly from receiving docks to put-away locations such as pallet racks, shelving, or bins within the warehouse management system (WMS).
  • Any discrepancies in counts or damage are promptly reported to vendors or suppliers for resolution.
  • This step typically targets a dock-to-stock time of less than 24 hours to reduce stockout risk and keep availability up.

   

2. Perform Inventory Accuracy Checks and Cycle Counts

  • Ongoing cycle counts and reconciliation maintain real-time data integrity and enable root-cause corrective actions (RCCA) for variances.
  • ABC analysis drives frequency: A-items (fast movers) undergo daily or weekly counts; less active SKUs may be counted monthly.
  • Advanced scanning and barcode validation minimise human error and oversell risk.

   

3. Order Ingest and Wave Planning

  • Orders stream into the fulfillment facility through API or EDI connectors, integrating with ecommerce platforms and ERPs seamlessly.
  • To meet promised delivery SLAs, wave picking is scheduled around carrier cutoff times, order priority, and shipment value.
  • Special orders requiring retail compliance labelling or tickets are flagged during planning.

   

4. Pick Orders According to Prioritized Wave Planning

  • Picking employs barcode scanning with validation for each SKU to ensure accuracy, aiming for 99.5%+ pick accuracy as a standard.
  • Facilities utilise single, batch, or zone picking depending on order profiles and SKU velocity.

   

5. Pack Products Using Custom Kitting and Printing

  • Products are carefully packed following SOPs that balance protective materials with dimensional weight (DIM) optimization to reduce shipping costs.
  • For brands requiring bespoke assembly, custom kitting, inserting branded materials, or one-to-one marketing collateral, these services happen under one roof to reduce handling errors. Learn more about integrated custom kitting and assembly solutions offered by All Points.
  • For regulated products, lot and expiry captures are performed at packing and shipping.

   

6. Ship with ATL-Based Network—2-Day Reach to ~80% of U.S.

  • Shipping operations integrate with contracted carriers using rate-shopping software to balance cost and SLA compliance.
  • Same-day shipping options are offered based on cutoffs to accelerate delivery speed and improve customer satisfaction.
  • Automated tracking notifications and carrier integrations deliver full visibility to brands and end customers.

   

7. Manage Returns and Replenish Stock

  • Returns (RMAs) are inspected quickly for resellability, dispositioned accordingly, and restocked to inventory.
  • Quality holds and damage reports help flag systemic issues.
  • Replenishment orders to suppliers or production are triggered as needed to maintain SKU availability.

   

8. Provide Visibility Through Inventory Management System and EDI Compliance

  • Real-time dashboards enable brands to monitor order status, inventory levels, and exceptions promptly.
  • Retail compliance transactions such as EDI 940 (ship notice) and 945 (warehouse shipping advice) ensure seamless cross-docking with major retailers.
  • Root-cause analysis and continuous improvement initiatives address any SLA misses to enhance performance over time.

   

For an expanded understanding of fulfillment operations and how they contrast with warehousing alone, see expert insights at DCL Corporation and Autostore System’s A-Z guide.    

Key SLAs and KPIs for Fulfillment Facilities

Maintaining clear SLAs and KPIs is essential for ensuring peak fulfillment performance and partnering accountability. Below is a table outlining critical metrics, industry standards, All Points’ targets, and why each matters for your brand.    

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Agreeing on SLA definitions, measurement windows, and reporting cadence upfront with your 3PL partner enables proactive issue management and continuous improvement.    

Pricing Drivers for Fulfillment Facilities

Cost structures of fulfillment facilities can vary widely based on these main drivers:

  • Inventory Volume and SKU Complexity:
    More SKUs and pallet volume increase storage footprint and handling time. Complex SKUs requiring special handling or temperature control add premium charges.
  • Pick and Pack Labour Intensity:
    Single-item orders with simple packing are more cost-effective. Bundled or multi-line orders, fragile item packing, and custom inserts increase labour and material costs.
  • Kitting and Assembly:
    Value-added activities such as creating promotional bundles, subscription boxes, or assembly require additional labour hours and quality checks. Learn more about our         custom kitting and assembly solutions.
  • Packaging Materials and Custom Printing:
    Branded boxes, boxes with printing, paper inserts, and variable-data printing often come as pass-through or time-and-material charges.
  •  Storage Type and Footprint:
    Pallet racking, bin storage, temperature-controlled space, or high-bay warehouses all command different rates. Seasonal overflow impacts pricing and capacity.
  • Shipping Zones and Carrier Contracts:
    Shipping costs are heavily zone-dependent. A fulfillment facility located in Atlanta (ATL) benefits from reduced zone miles—lowering outbound shipping costs and improving ground transit times.
  • Value-Added Services:
    Returns processing, relabelling, ticketing, quality inspections, and retail compliance (EDI 940/945) add complexity and cost.
  • Systems and Integration Complexity:
    Initial onboarding, integration of APIs or EDI, testing, and implementation effort influence move-in fees and monthly charges.

   

     Evaluating total landed cost rather than just per-pick fees is crucial for understanding your fulfillment investment and negotiating better contracts. Check out All Points’       e-commerce order fulfillment services for pricing insights tailored to online brand profiles.    

Risks to Watch and How to Mitigate Them

Clear contract language on SLAs, penalties, and escalation paths further safeguards your brand from fulfillment risks.    

The Atlanta Advantage for Fulfillment Facilities

Atlanta’s strategic location makes it a logistics hub with several notable benefits for brands choosing a fulfillment partner based there:

  • Two-Day Ground Shipping Reach to 80% of the U.S. Population:
    This vast geographic coverage enables brands to promise and deliver faster shipping speeds without resorting to expensive air freight.
  • Cost Savings on Outbound Shipments:
    Reduced zone miles translate to lower transportation costs, which can be passed on to your customers or improve your margins.
  • Carrier Density and Mode Flexibility:
    Atlanta hosts a concentration of ground carriers and diversified linehaul options, ensuring service continuity even during peak seasons or disruptions.
  • Inbound Freight Efficiency:
    Major port access and domestic suppliers feed into Atlanta’s freight networks, enabling consistent dock-to-stock rhythms for your SKUs.

   

As an Atlanta-based operator, All Points leverages these locational advantages to ensure rapid same-day pick and pack options, over 98% on-time shipping, and lower overall fulfillment costs for our clients.    

What You Get with All Points

Selecting All Points as your fulfillment facility partner means gaining end-to-end operational excellence combined with value-added services designed specifically for DTC and retail brands:    

  • End-to-End Ecommerce Fulfillment:
    From receiving and inventory control to picking, packing, shipping, and returns management, backed by real-time visibility. Explore our reliable e-commerce order fulfillment services designed for your business needs.
  • Custom Kitting and Print Under One Roof:
    Subscription boxes, influencer kits, promotional bundles, and branded inserts all produced alongside fulfillment operations for fewer handling errors and faster turnaround. Learn more about our integrated custom kitting and assembly solutions.
  • Operator-Grade Process Controls:
    Documented, detailed SOPs; barcode scan validations at pick and pack; frequent cycle counting; KPI scorecards; and retail EDI (940/945) compliance ensure you meet brand and retailer expectations.
  • Atlanta-Based Network:
    Benefit from a supply chain hub that enables two-day reach to approximately 80% of the U.S., reducing transit times and shipping costs.
  • Partnership Mindset:
    We focus on delivering the best total value—accuracy, speed, and brand presentation—rather than simply competing on price. Our team’s expertise includes premium kitting and printing for leading brands like Porsche case study available.

   

Ready to Streamline Your Fulfillment?

Accelerate your brand’s growth and delight your customers with fast, accurate, and beautifully packaged shipments. Contact All Points today to:    

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FAQ

Q1: What is the difference between a fulfillment facility and a warehouse?
A warehouse primarily stores inventory. A fulfillment facility manages the full lifecycle of orders—receiving, inventory accuracy, picking, packing, shipping, returns, and value-added services like custom kitting and printing.    

Q2: How soon can I onboard to All Points’ fulfillment facility?
Typical onboarding timelines range from 4 to 6 weeks, covering scoping, SOP setup, system integrations and testing, site preparation, and initial inventory receiving. Faster onboarding is often possible for simpler SKU catalogs.    

Q3: What SLAs does All Points guarantee?
All Points delivers 99.5%+ pick accuracy, dock-to-stock within 24 hours, and over 98% on-time shipping. Same-day pick and pack options are available depending on order cutoff times.    

Q4: Does All Points handle custom kitting and printing?
Yes, All Points integrates custom kitting, assembly, and branded printing in-house—reducing touchpoints, errors, and lead times between vendors.    

Q5: How does Atlanta’s location benefit shipping speed?
Our Atlanta location enables two-day ground transit to approximately 80% of the U.S., enabling cost-effective shipping while meeting or exceeding customer delivery expectations.    

Disclaimer

All content is provided for informational purposes only and does not constitute legal, financial, or professional advice. Actual service levels and pricing depend on specific contract terms, brand requirements, and market conditions. Please contact All Points directly for a customized consultation tailored to your fulfillment needs.    

Additional Resources:

   

This comprehensive overview equips DTC founders and brand operators with operator-level insights necessary to select the right fulfillment facility partner for scalable growth and operational excellence.

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Conclusion

Choosing the right fulfillment facility is key for DTC brands to scale efficiently. This guide covers workflows, SLAs, pricing drivers, and Atlanta’s logistics advantage—helping you partner with a 3PL that ensures fast, accurate shipping, custom kitting, and real-time visibility for superior customer satisfaction and growth.

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