The eCommerce world is growing, and many business owners are seeing the value of strategic warehousing as part of their logistics. What is strategic warehousing and how can it affect your profitability and fulfillment rates?
Strategic warehousing services involve the complete process of outsourcing warehouse space, and relying on a 3PL provider for the movement of goods and managing fulfillment and delivery demands. It involves teams, technologies, equipment, and security measures.
Using this strategy can put them ahead of the competition and helps businesses save money when it comes to spending on logistics and management.
Let’s take a closer look at why warehousing services like this can be a boon to eCommerce businesses of all kinds:
The following are the reasons why strategic warehousing is best for your Ecommerce business:
Faster Delivery Times
By using a dedicated 3PL service, fulfillment times can often be reduced. Having to manage the logistics of warehousing and shipping can be tough, especially for newer businesses that don’t have the necessary capital or personnel to make this work. Outsourcing this work can accelerate your ability to meet demand and then scale.
Inventory Management is Optimized
The inventory is managed efficiently because there is a system that can track, monitor, and control the stock levels of a warehouse. The system makes you aware when there is a need to stock up or when there is a possible stock shortage.
This prevents overstocking and item stockouts, which can create possible losses for any business. Too much inventory can take up space and cost you money, while stockouts can force your market to look to your competitors.
It Makes Your Business Flexible and Scalable
Strategic warehousing allows your business to be flexible and scalable, because you can respond quickly to the changing market, customer demands, and even economic fluctuations.
Your warehousing system can be flexible enough to move specific goods and items into new areas where they have high demand, and order new products that are capturing another market. This means you can choose where you want to grow while responding to market changes too.
Improved Reverse Logistics
Another reason strategic warehousing is good for eCommerce is the chance to have an efficient reverse logistics system. This means that customer returns can be processed quickly and with very little fuss, which can improve customer satisfaction.
Reverse logistics will have a proper place to accept returns where the item can be checked for damage or delivery errors. They can then quickly process the customer refund and send the item for resale as a discounted item.
Reduction in Customs Delay
When an eCommerce business ships internationally, customs may be another challenge when meeting fulfillment targets and customer satisfaction. Some items can take a long time for clearance, and this can cause delays.
However, warehousing services can reduce the time, as the strategic placement of warehouses in specific ports and areas can quickly facilitate the custom clearance process.
The Best Business Match Indeed
For any eCommerce business, working with a warehousing services provider using strategic warehousing is the best and most economical way to meet fulfillment targets, grow your business, and improve customer satisfaction and service.
If you are located in the New Jersey area and are looking for a reliable 3PL partner, we recommend Snapl. They can help you with a wide array of warehousing and logistics services for your eCommerce business. Get in touch with them today to learn more about what they can do for you!
