Fulfillment in Ukraine
A segment of B2B services and growth of e-commerce among consumers are actively developing in Ukraine. It sets new tasks for the business: to organize the storage of products, pack and deliver an order as soon as possible. The order fulfillment service exists as a solution on the western market. Such a format of interaction appeared in the Ukrainian market recently, but it is already in great demand among all types of businesses.
The word “fulfillment” is of American origin, from “to fulfill”. For the first time, fulfillment services were launched by Amazon in 1997, starting with two warehouse complexes. Today Fulfillment by Amazon has a large demand in the B2C and B2B segments.
Fulfillment service is a transfer of all processes for orders and deliveries to final consumers for outsourcing. Thus, the companies that provide that service take full responsibility for receiving and processing the orders; receiving payments from the clients; storage of goods in warehouses; collecting and packaging of products; transportation and delivery of parcels to consumers; return logistics.
The list of B2B fulfillment services has minor differences, that most often related to the volume of orders. By working with specialized companies, an entrepreneur can always discuss what will be included in the list of provider responsibilities.
Fulfillment is especially reliable for small and medium businesses that want to focus on their main activity. As a rule, cooperation with fulfillment companies increases the quality of the provided services.
Fulfillment enables you to:
- reduce the expenses on order processing;
- raise the level of customer service;
- reduce the expenses on personnel recruitment and IT support;
- use the operator’s warehouses. There is no need to buy or rent the property.
This service is provided on the Ukrainian market by specialized fulfillment companies, courier services and 3PL providers.
Fulfillment companies on the Ukrainian market
Despite the fact that the fulfillment is newest activity among logistics outsourcing market, the direction evolves and expands at an accelerated pace. The fulfillment centers are built in large Ukrainian cities.
At the moment there are less than 10 companies that provide service in Ukraine. Among the most popular are Zammler, Nova Poshta, Ekol, Denka Logistics, and others. Fulfillment is most in-demand in Kyiv and regional centers.
Fulfillment by Zammler
Zammler was the first company which started to provide fulfillment services in Ukraine. Today the company owns a huge warehouse complex of class A with a working area of 12 500 m². The fulfillment center is located in 17 kilometers from Kyiv. A large number of employees are working there. WMS is used for inventory management.
Zammler fulfillment offers:
- Acceptance of goods from the supplier to the warehouse and further storage.
- Provision of call-center functions for promt orders processing.
- Packaging and completion of products.
- Automatic delivery cost calculating.
- Delivery of the customer’s order to the door with the choice of the most optimal courier service.
- Provision of reports.
- Reverse logistics.
- Receiving payments from clients.
- Organization of high-quality photos of products for online stores.
The company offers services in Ukraine and for the international market.
Fulfillment by Nova Poshta
An independent branch NP Logistic is engaged in the provision of fulfillment services for Nova Poshta.
Within the fulfillment service the company offers:
- Safe storage of goods.
- Orders completion.
- Ability to work with loads of different assortments and overall dimensions.
- Storage and processing of orders in modern warehouses of class A.
- The possibility to pay for the service upon completion.
- Optimal rates (from 18 UAH per order).
- Mobile application with the ability to track the status of an order.
NP Logistic owns two modern fulfillment centers with a carrying capacity to 50 000 orders per day.
Warehouse function in fulfillment
A warehouse plays a key role in order fulfillment, since the main function of fulfillment is the storage of goods and their operational collecting on site.
The capacity and location of the warehouse are the important criteria in choosing of a partner for fulfillment outsourcing. Most of the Ukrainian consumers prefer to receive the goods at least in the next day after placing an order. If a fulfillment center has a low carrying capacity, it will not be able to process the orders quickly. This will lead to a decrease in delivery speed. Small and medium businesses usually have a small number of orders per day. A location of the fulfillment center plays a critical role for them because it is inexpedient to transport small volumes of goods from one city to another.
How much the fulfillment costs
The companies set up the fulfillment tariffs individually for each partner.
There are 3 methods of prices formation on order fulfillment:
- Packages of services. A customer pays a fixed sum monthly. The package depends on the volumes which cannot be higher than a certain level.
- For each performed operation. All actions of fulfillment partners are distributed according to the list of actions – goods acceptance, collecting, delivery to the door. Within the framework of one order, an entrepreneur pays for the entire list of actions at the prescribed rates.
- Interest payments that depend on business capacity. The fulfillment price with this method is fundamentally different from the payment for the performed operations. The service for execution and processing of orders is defined as a single one, regardless of the number of actions. As a rule, this method of cooperation is chosen by a large business, since the final cost depends on the capacity of sales – the higher they are, the lower are the prices.
Find a reliable fulfillment company on the WareTeka platform and scale your business without any logistics problems.