The Top 10 Benefits of Using a Fulfillment Warehouse

fulfillment warehose with stocked shelves

Warehouses and fulfillment centers are growing in popularity so much that the industry will need an additional 452,000 workers this year. This is a result of more and more businesses learning the benefits of working with a fulfillment warehouse. 

So what do they know that you don’t? Don’t let your competitors get the edge over you. 

We have 10 benefits your business will experience when you start using a fulfillment service. 

1. Lower Operating Costs

What percentage of your monthly budget goes towards the storage, packing, and shipping of your products? What if you could reduce these costs?

By working with the fulfillment center, your business needs less space. You can move your business to a smaller facility. The employees that currently manage shipping operations can focus their efforts elsewhere. 

The money you used to spend on these fulfillment efforts can now get allocated to other areas of your business.  

2. Improved Business Focus

Your focus should be on growing your business. This means refining and perfecting your core competency. This most likely isn’t shipping your product. 

So let the experts focus on their specialty while you focus on yours. When you work with a fulfillment center like this one here, you can focus on developing your products and customer service.  

3. Access to the Best Technology

If you run a small or growing business, then your budget for technology is limited. This often means not being able to buy the latest and greatest out there. 

You can change this though by working with a well-established fulfillment service. Look for a fulfillment service that prioritizes innovation. 

Now you can benefit from the latest technology and best practices without having to invest a ton of your resources. 

4. Improve Scalability

Right now, you can only scale up as much as you can afford. This means being able to afford a bigger warehouse and more employees. 

Instead, outsource your fulfillment and scale faster. Fulfillment centers have large warehouses for their customers, so it is easier for you to grow and take up more space. They also have the staff ready to get to work. 

Now you are not limited by high prices of locally available warehousing. 

5. Benefit from Experience

Managing a supply chain from start to finish has many moving parts and is a lot more complicated than people realize. Often, business owners learn the ropes the hard way by making many mistakes. 

These mistakes can result in budget-busting corrections. Stop wasting time and money and work with the experts. 

Outsourcing your fulfillment means your supply chain will hit the ground running. Now you have the edge over your competition. 

Your fulfillment service can recommend options that you may not be aware of. Or they can react to problems faster to reduce the impact. 

6. Avoid Market Fluctuation

When you work with the right fulfillment service, you can change and adapt your supply chain to changing market conditions. This process of change is much slower when you manage the process yourself. 

Outsourcing results in lower risk and better return on investment for your business. 

7. Seasonal and Sales Fluctuation Flexibility

Is your product sensitive to season demand? If so, it can be tough to manage your inventory. During certain time of the year, your warehouse is overflowing with inventory. Then at other times of the year, it is practically empty. 

This can be frustrating since it feels like you are wasting money on warehouse space during dead times. Or you are paying a premium for additional warehouse space during busy times. 

Instead, stop this endless cycle of headaches by outsourcing your warehousing and fulfillment. Your service will be able to accommodate the influx of inventory with ease. You can negotiate pricing that works with your changing needs.

8. Grow New Markets

You want to move to a new market, but your current fulfillment setup isn’t conducive. A perfect example of this is international shipping. 

To begin shipping internationally, you need to learn how this logistics process works. It can get confusing quick with every country having different requirements for customs and port procedures. 

A fulfillment service can handle all of this for you. They will arrange the shipments and prepare the paperwork. Your shipments will travel through the already establish supply chain channels. 

9. Differentiate Your Brand

What if you could process and get orders to customers faster? Customers remember when a business gets their order to them quickly and correctly. 

Remember that advanced technology and expertise we mentioned? Well, here is where it shines. Your fulfillment center will efficiently get your shipments out. They will also fill orders correctly. 

This sort of service will make your business stand out among your competitors. Now you are using your fulfillment as an opportunity for brand awareness

10. Improve Your Customer Service

Building on the previous benefit, your fulfillment isn’t a back-end process. It is a chance to interact with your customers and give them a satisfying experience. 

For instance, shoppers want their items RIGHT NOW. But this sort of fast shipping can be expensive.

When you work with a fulfillment warehouse, you can benefit from reduced shipping costs. Now you can offer your customer fast shipping. 

Another service shoppers love is free shipping. When you outsource your fulfillment, you may find that your shipping costs are low enough, that now you can offer free shipping. 

Hire a Fulfillment Warehouse

With all of these benefits, why haven’t you started working with a fulfillment warehouse yet? Start by looking at your budget and needs. 

Then, look at a few different services. Ask them how they can assist you today, and how they can accommodate your future growth. You want a fulfillment service that is a partner with your business.

Protect your inventory in your warehouse and store. See how to prevent shrinkage of inventory in your business.

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