Why Businesses Need Fulfillment Centres For their Storage Needs
Whether you are a new entrepreneur with a thriving e-commerce business or you’ve been selling products for years now, for sure, you’ve encountered some storage dilemmas and even from having your warehouse. Aside from product distribution and warehouse logistics problems, there are businesses too that needs a big storage space for old and new documents of their companies that cannot be easily thrown away. You do know how costly and unwise it is to build your own warehouse, and realistically speaking, not everyone can afford it. But worry not because you can always seek help and find a good product or document storage solutions through a fulfillment center.
Samuel, who sells digital Singapore printer online, opted to partner with a fulfillment center based in Singapore so he won’t need to lease a storage space for his units and orders, “I am just starting in the business, and I don’t think I can pay for the expensive monthly rent for my products. When I learned that I can just outsource, I grabbed the opportunity and saved a lot of money in the process. If I built my own warehouse, it would be very expensive to buy my own lot and build a building for the storage. With fulfillment centres, they help me with the long-term storage and even let me offer my product without a shipping fee because of the help they offer for circulation and distribution.”
“Outsourcing allows you to use the latest technology. Technological innovation is one of the best reasons for outsourcing your fulfillment program. A fulfillment center can provide turn-key e-commerce and web-based solutions, including customized real-time reports for monitoring your orders, inventory and shipments. Why invest in expensive software or programmers yourself when a fulfillment center has already made these investments? Outsourcing allows you a more cost effective solution. The cost of doing your own fulfillment is generally higher than it appears. Your true cost includes the storage space, racking, moving equipment, utilities, payroll, packing supplies, software, security, insurance, taxes, maintenance, etc. But with outsourcing, you have no capital expenditures – like forklifts, shelving or storage buildings. Also, the overhead costs incurred by a fulfillment center are distributed across multiple clients and projects, effectively making these costs very minimal for everyone. In addition, you only pay for the specific services the fulfillment center performs for you - storage, kitting, assembly, picking and packing, shipping, etc. This makes your fulfillment expenses more predictable and improves cost control, whether your projects are infrequent or ongoing,” wrote Keith Beaty shared the article The Top Five Benefits of Fulfillment Outsourcing for formaxprinting.com
And there’s more. These centers have the right equipment and the staff to address the need of your business, “Fulfillment centers hire and manage the staff, buy the equipment required by the warehouse to operate – everything from forklifts, racks, coolers, freezers, and tables to assembling equipment, and they ensure that the inventory, invoice, and packages are handled with care – correctly shipped to the right persons while meeting all deadlines. Since fulfillment centers ship on a regular basis, they can often get good rates that the small business owner would not be able to secure. Likewise, the centers are handling shipping for numerous customers at one time, so they are able to buy shipping materials at wholesale prices and cut costs even more,” wrote Jennifer Craig in the article “Could Your Business Benefit from Using a Fulfillment Center?” for wesst.org