In the world of e-commerce, being ahead of your competition means that you have to fulfill your customer’s orders in the shortest time possible. The most effective way to achieve that is through improving your method of inventory. How you manage your inventory will greatly affect how you perform your most important duty that will contribute to the revenue generation of your e-commerce business.
One of the best strategies to implement to reduce your shipping and delivery time is distributing your inventory through multiple warehouse facilities or fulfillment centers. Using distributed inventory, the nearest warehouse to the customer who placed the order will fulfill it. It is an option that any and every e-commerce business operation should invest in, especially the growing ones.
If you are an e-commerce business owner looking to be more competitive, you will learn in this article about how using more than one warehouse can help with that, among its other advantages. Here’s how having multiple warehouses can change your e-commerce business.
Reduces labor and transportation costs
The point of having multiple warehouses is to keep your inventory at a location where orders can easily reach a customer in the shortest time possible. When the distance between the product source and its final destination is reduced, it also cuts down transportation and labor costs. Although you will have to spend more on purchasing inventory and shipping units to additional locations, you can have savings that you can have elsewhere.
A good choice that you can consider is leasing warehouses for rent facilities in locations where your target customers are. Of course, you will have to base your warehouse locations on the data of your customers, so ensure that you have a working data collection method in place.
Prevents inventory shrinkage and lowers risk
Operating multiple warehouses is also an effective contingency plan in case of emergencies. Common emergencies like a delay of delivery and shipping due to inclement weather conditions or lack of stock items can be prevented. You can ship other products from your other warehouses to fulfill an order that has been delayed, or you may choose a freight forwarder like US to Australia shipping. It’s always important to have a backup so you can adapt and make quicker decisions during difficult times.
Improves customer experience
Having multiple warehouses also improves customer experience, particularly for growing businesses. Shipping costs decrease as shipment size increases, so it’s a more efficient alternative to move large volumes between key fulfillment centers rather than shipping small orders from your centralized warehouse. Most customers prefer quick and affordable delivery, and splitting your inventory between strategically-placed warehouses will give them that.
Increase in productivity
Having the ability to deliver your products faster with reduced cost increases your efficiency and productivity. Soon you will be able to have the returns on the investment you made for your other warehouses. It also automates some of the processes that are part of your operations from order processing and stock control to shipping.
These are the positives that you can gain from having multiple warehouses. However, for this to work, you need to maintain good warehouse practices to have that consistency and continue your improvement and progress to be a more competitive e-commerce business.
Princellaine Alibangbang is a freelance digital marketer aiming to help businesses promote their brands. Aside from digital consulting, she has started her online business, Princess’ Corner, which she hopes to prosper in God’s perfect timing. She also dreams of opening a charity to support the education of the unfortunate yet striving Filipino people.