# What is Fulfillment?

What is Fulfillment? The entire process from receiving an order to delivery: pick, pack, label, ship.

## How it works in practice

Fulfillment is the 'moment of truth.' Customers don't see the advertising — they see the package. Fast, accurate packing means a positive experience.

## Related metrics

- 3PL — outsourcing
- SLA — a timing agreement
- Pick and Pack — the physical steps
- Returns — part of fulfillment

## Common misconception

'Fulfillment just means shipping a package.' It includes: inventory management, receiving, distribution, picking, packing, labeling, shipping, tracking.

## How to fix it

Fulfillment inefficient? (1) error rate — target < 0.5%, (2) order-to-ship time — target < 24 hours, (3) consider a 3PL above 100 orders/day.

## Real-world example

A cosmetics store: 80 orders/day, 6 work hours. A 3PL at $3.50/order saved $140/day. Positive ROI from day one.

## Where to start

Handle fulfillment in-house up to 50 orders/day. Above that, use a 3PL.

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Category: Operations · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/fulfillment