web analytics
Warehousing Distribution | XL Logistics Blog

Streamline Fulfillment With Warehousing Distribution

Posted on 22. Jul, 2013 by in Warehousing

One of the biggest problems with a business that sells physical items is inventory storage.  Besides the costs of renting the storage area, there is also the problem of fluctuating inventory.  What happens if you suddenly need a lot of space?  Conversely, what do you do when sales fall and you cannot justify the costs of the storage?  These are the problems that warehousing distribution deals with.

Whether a company manufactures products, and then stores them for immediate availability, or whether they stockpile items from another manufacturer for the same purpose, warehouse distributing can provide a cost-effective part of the total delivery strategy.  Another benefit is that you can further streamline your distribution channel by let the warehouse perform the fulfillment as well.

One particular benefactor of a warehousing system is an online business.  The sales portion of the business can be conducted completely from a home office.  If the business takes advantage of warehousing, they need not acquire office space at all.

Here is how the entire process can work.  An online business stocks inventory at a warehouse.  Simultaneously, the business is advertising these products on their website.  As each customer makes a purchase, the transaction is sent to the payment-clearing house, the business is notified of a sale, and the warehousing distribution acts as a fulfillment center, mailing the product to the client.  In this way, the business can operate with a very low overhead, quickly fill customer demands, and generate revenue in a very streamlined fashion.  It can be that simple.

If you are reading this on any other blog than XL Logistics Blog or via my RSS Feed, it is stolen content without credit.
You can find me on Twitter via @LogisticsDan
Come and visit our blog at http://xllogisticsblog.com/

Share Button

Tags: ,

No comments.

Leave a Reply

CommentLuv badge