The Importance Of The Right Order Fulfillment Center

Order fulfillment centerFor many of the thousands of small businesses that are operating with cost reductions in mind in order to streamline their operations, the importance of choosing the right order fulfillment center for your customers is crucial.  Many business owners might wonder why the location of their fulfillment center is important, and how location combined with the ability to get your orders to customers in a timely and professional manner, make up so much of a good decision for your business.  First of all, choosing the correct fulfillment center that is right for your customers will save you money.  An order fulfillment center is a third party business that houses your inventory in their own warehouse and uses their employees to receive the orders placed by your customers, then pack the products into boxes and contact the shipping method the customer has chosen in order to get the order to them quickly.  The positioning on this warehouse in close proximity to the customer is the deciding factor that dictates how long it will take for that order to be received, and the price that the customer will have to pay in order to get it there.  The decision to utilize a fulfillment center is generally a wise one for many online businesses, as it eliminates the headaches and expenses of running your own warehouse and employing people to do the shipping fulfillment itself.  By instead using cooperative space within a fulfillment company’s warehouse, you as a business owner are able to avoid the long leases and expenses of warehouse space that you are responsible for, and attempting to project the amounts of space you will need for future sales.  Long leases can cripple a business that needs to expand to larger spaces, and a lack of sales can bankrupt a business locked into leasing a space that they do not need.  Through a contract with a fulfillment company, you will pay for the space and services that you need each month.  While this alone is generally a good decision, you will also be able to position your inventory closer to your customers, and on major transportation lines where your corporate headquarters is not currently located.  By reducing the amount of distance between your inventory and your customers, you will not only pay less per order in shipping charges but also get the products to the customers quicker.  Inventory stored in an east coast warehouse and sold to an east coast customer will incur a lower charge for shipping than if that same inventory was positioned in a warehouse on the west coast.  That same order would also take twice as long to be received in many cases.  For this reason, many fulfillment companies like Ship My Orders maintain warehouses on both the east coast and the west coast, allowing inventory to be pulled from the warehouse that is closest to the customer if products are stored in both locations.  By using a system like this, every order placed will incur the lowest shipping charges as well as be received in the shortest time possible.  Both your customers and your bottom line will thank you.

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