At some point, every business must delegate tasks to become more efficient and productive. As business owners, it’s challenging to let go of control, particularly for small businesses. However, the quicker you realize that sharing responsibility and handing over responsibility for some tasks is beneficial, the greater success you’re likely to experience.
For the majority of eCommerce businesses, it becomes increasingly challenging to store inventory as the company grows. Without adequate storage space, the order fulfillment process is likely to suffer, leading to a substandard customer experience.
While you might be able to fulfill orders at present, it’s important to consider inventory management, as well as how you’ll package and ship your goods in the long-term. Although you don’t have to commit to outsourcing order fulfillment entirely, there are many benefits to storing your products in a fulfillment warehouse.
What is a Fulfillment Warehouse?
A fulfillment warehouse or fulfillment center differs from a traditional warehouse because it is geared toward storing fast-moving consumer goods (FMCG) rather than holding items for a long time.
Fulfillment companies offer specialized services to retailers, eCommerce businesses, and other organizations to improve their supply chain efficiency. Depending on an organization’s needs, a fulfillment service can handle everything from order processing to delivering goods to end-users.
Using logistics technology, expert warehouse management, and optimized distribution strategies, fulfillment companies offer streamlined and efficient services.
Benefits of Using a Fulfillment Warehouse
Reduced Operating Costs
Unlike with traditional warehousing, in a fulfillment warehouse, you only pay for the space you use. This is far more cost-effective than renting large spaces that you don’t get year-round use of. You won’t suffer financially because your business experiences sales fluctuations depending on the season.
If you elect to use other services besides storage, you will be charged a regular fee. Because of economies of scale and optimized processes, fulfillment centers can offer affordable pricing for their services.
As an industry, warehousing is estimated to be worth $22 billion. Because of the potential for cost savings, warehousing and fulfillment businesses are thriving.
Utilizing the Latest Warehousing Technology
Most fulfillment warehouses use sophisticated technology and inventory control systems. By storing your products in a fulfillment warehouse, you can leverage this technology to your business’ advantage, resulting in reduced costs.
To make the most of this technology, you may want to outsource other aspects of fulfillment to the warehouse. Tasks such as order and payment processing, inventory management, shipping and handling, product tracking, and order returns can be taken care of using the fulfillment center’s advanced technology.
Improved Customer Satisfaction
Besides reduced shipping costs, your orders are likely to be packed and shipped faster with a more efficient and streamlined fulfillment process. Fast delivery times and a smooth order process can improve customer satisfaction.
Additional fulfillment services can also give your customers more variety concerning their shipped orders. For example, your fulfillment company may offer same-day delivery, next-day delivery, or other customer-specific requests through an effective distribution strategy. These offerings are often backed by 24-hour customer service.
More Time to Focus on Your Core Competencies
As important and interesting as it may be, eCommerce fulfillment can be a major headache. Storing your products in a fulfillment warehouse can alleviate the pressures associated with inventory management and shipping. It can free up a significant amount of time to focus on the critical challenges your business faces.
It’s extremely difficult to grow and improve your business if you’re engaged with secondary tasks. Safe in the knowledge that your goods are being stored and managed, you can put your efforts into strengthening the core strengths of your business.
With more inventory space and access to first-rate fulfillment processes, there is potential for expanding your client base and increasing sales.
Safety and Security of Inventory
A major worry for businesses that don’t have a dedicated storage space is safety. Valuable inventory could be stolen because of a lack of security. Also, a freak accident or unsuitable air quality could damage your items. These reasons alone are enough to warrant storing your products in a warehouse.
It’s common for fulfillment warehouses to have protected facilities. They are generally well-built and fitted with alarms, video surveillance systems, and sprinkler systems. Some provide climate-controlled storage spaces for fragile goods.
Access to Expert Staff and Special Handling
Fulfillment warehouses are managed by experienced staff who are skilled in warehouse operations. Your products and orders are in safe hands with trained professionals.
Certain products require special handling and storage. Perishable items or those containing sensitive chemicals need to be carefully managed at every supply chain step. A good fulfillment company ensures products are handled, stored, picked, packed, and distributed correctly.
Optimize Your Fulfillment Process through Strategic Outsourcing
As technology advances and eCommerce continues to flourish, customer demands rise. To consistently meet expectations, businesses must concentrate on productivity and efficiency.
Through strategic outsourcing, businesses can optimize their fulfillment processes, leading to a greater ROI in the long-term.
If you need advice regarding distribution and logistics, contact Asiana USA today. As a world-class shipping company, we can provide guidance on what processes in the supply chain best suit your business. Call us at (855) 500-1808 to learn more about our services and how we can help you grow your business.