Order Fulfilment and Pick and Pack

What is order fulfilment and pick and pack?

Order fulfilment is the process where a provider receives and stores your stock, then picks, packs and despatches orders to your customers. Pick and pack is the picking of individual items and the packing of each order ready for despatch.

How the fulfilment process works step by step

A professional fulfilment operation manages the physical movement of stock from arrival through to customer delivery. For ecommerce and retail brands, the key stages usually include:

• Receiving and putaway of stock: Stock arrives at the fulfilment centre, is checked against delivery information and moved into the correct storage location.
• Storage: Products are stored according to the requirements of the business, with stock locations set up to support accurate and efficient order fulfilment.
• Order capture and integration: Customer orders are received through ecommerce platforms, marketplaces or other sales channels and passed into the fulfilment system for processing.
• Picking: Warehouse teams locate the required products and pick the correct items for each customer order.
• Packing: Orders are packed ready for despatch, with packaging, documentation and any required inserts prepared to meet the brand's requirements.
• Despatch and carrier handover: Completed orders are handed to delivery partners for transport to customers. Where a fulfilment provider operates its own delivery vehicles, or uses a transport partner operating goods vehicles, the relevant activity must be covered by the correct goods vehicle operator licence where required.
• Returns handling: Returned items are received, checked and processed according to the retailer's instructions, including restocking, inspection or further action.

Choosing a fulfilment provider for ecommerce operations

Businesses outsourcing ecommerce fulfilment services need a fulfilment company that can handle their stock profile, order volumes, packaging requirements and customer expectations. Fulfilment companies vary in their systems, warehouse processes, sector experience and delivery arrangements, so the right provider depends on the operational needs of the brand.

Contract Transport Services helps businesses identify suitable fulfilment services providers through an independent procurement process. CTS does not own warehouses or vehicles and does not rank, rate or endorse operators. It checks providers before introducing them, giving buyers a shortlist to assess and appoint directly.

When to outsource to a fulfilment centre versus running fulfilment in-house

Many ecommerce and retail businesses start with internal fulfilment because it gives direct control over stock, packing standards and despatch decisions. For some sellers, this remains the right approach. A simple product range, predictable demand and lower order volumes can often be managed efficiently by an internal team without the cost and process change involved in appointing a fulfilment company.

As order volumes increase, the operational demands can change. A dedicated fulfilment provider can take responsibility for storage, order fulfilment and despatch activity, allowing management teams to focus on product, sales and customer relationships. This can be particularly relevant where brands experience seasonal peaks, sell through several channels or need additional capacity without committing to warehouse space and staff.

• In-house fulfilment may suit: lower order volumes, a small SKU range, straightforward packing requirements and businesses with available space and staff time.
• A fulfilment centre may suit: growing order volumes, seasonal peaks, multi-channel retail, marketplace selling and businesses needing to release warehouse space or internal resource.

The choice between fulfilment companies should be based on the practical needs of the operation rather than marketing claims. CTS helps businesses prepare a private operational brief and introduces checked providers that match the requirement. CTS does not rank, rate or endorse operators. The business then compares proposals and appoints a provider directly.

For brands reviewing ecommerce fulfilment services, it is important to understand how a provider will handle stock accuracy, order cut-off times, packaging requirements, returns and communication. A suitable fulfilment company should be able to explain its processes clearly and demonstrate relevant operational experience.

How pick and pack and fulfilment are priced

The cost of fulfilment varies according to the operation, product range and service requirements. The following are indicative observed UK market cost structures and are provided to help buyers sense-check proposals. They are not a CTS quotation, recommendation or fixed price guide.

Common fulfilment pricing components include:

• Storage: charges may be based on bins, shelf locations or pallets, depending on the size and handling needs of the stock.
• Goods-in and putaway: providers may charge for receiving deliveries, checking stock and placing items into storage locations.
• Pick and pack fees: these are often calculated per order, with additional charges where an order contains extra items or requires specific handling.
• Packaging materials: boxes, mailers, inserts, labels and other packing consumables may be charged separately or included within a service rate.
• Despatch and carrier costs: delivery charges depend on parcel size, destination, service level and carrier arrangements.
• Account or setup fees: some providers charge for onboarding, system configuration or account management.

The true cost of outsourced fulfilment is shaped by the detail of the order profile. Average items per order, number of SKUs, stock characteristics, order frequency and returns rate can all affect the workload and pricing structure. Buyers should compare proposals against their actual operating pattern rather than relying on a single headline fulfilment price.

What a fulfilment agreement should cover

A clear agreement with a fulfilment provider should set out the operational detail needed for reliable ecommerce fulfilment and pick and pack activity. The buyer should understand exactly what is included, how performance is measured, and how changes are managed as volumes develop.

• Services and scope: storage, pick and pack, order processing, despatch, stock handling and any additional fulfilment services required.
• Integrations: connections with ecommerce platforms and marketplaces, including order flow, stock updates and reporting requirements.
• Despatch cut-off times and SLAs: agreed processing times, service levels and responsibilities for meeting customer delivery commitments.
• Order and stock accuracy: expected standards for picking accuracy, inventory control, stock checks and reporting.
• Packaging and branding: requirements for packaging materials, inserts, branded presentation and customer experience.
• Returns handling: the process for receiving, inspecting, recording and managing returned items.
• Peak-season capacity: how additional order volumes will be handled during promotions, seasonal demand and growth periods.
• Liability and insurance: responsibilities for stored stock, damage, loss and relevant insurance arrangements.
• Pricing transparency and exit arrangements: clear charges, notice periods, and the process for transferring stock if the relationship ends.

Choosing and vetting a fulfilment provider

The right fulfilment company should match the practical needs of the business, rather than simply offer available warehouse space. Buyers should consider order profile, product type, sector experience, location, carrier options and whether the provider has the technology needed for accurate, real-time stock visibility.

Operational performance matters. Review picking accuracy, despatch performance, reporting, communication and the ability to handle changes in demand. A growing ecommerce brand may outsource its pick and pack operation to a fulfilment centre so it can increase sales and manage peak periods without investing in its own warehouse, staff and equipment.

Before appointing a fulfilment provider, buyers should also consider financial standing, relevant accreditations, insurance arrangements and references from comparable businesses. A provider should be able to demonstrate that its systems, people and processes are suitable for the volumes and service levels required.

Contract Transport Services (CTS) provides an independent, asset-neutral procurement service for businesses seeking fulfilment companies. CTS owns no warehouses or vehicles. It checks providers before presenting opportunities, including financial standing, insurance, accreditations and the DVSA operator licence of any delivery or transport partner involved.

CTS issues one private brief to a checked shortlist of suitable fulfilment providers. Buyers compare the responses and appoint directly. CTS does not rank, rate or endorse operators.