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7 Crucial Benefits of Multiple Warehousing: Become A Local Competitor to Expand Your Business

Inventory management is a crucial and challenging part of supply chain management. How efficiently you take the goods to the market and how you deliver them according to customer demand determine the future of your business. As the eCommerce supply chain system is constantly improving, customers expect fast delivery and quality product supply.

Understanding your customers’ geographical whereabouts and order frequency is your reference point to track growth. If you are still managing all your inventories from a single location, chances are you might lose your customer base and experience plummeting growth in future.

When your business scale expands by crossing geographical barriers, it is necessary to upgrade your storage facility to multiple locations. Customers are more likely to search for options and services near to them. Here comes the necessity of maintaining a multiple-warehouse system.

Nitty-Gritty of Multiple-Warehousing: How it Helps in Fast Delivery 

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This is the right time to think about spreading your inventory to multiple locations. Reducing logistics risks is necessary to indulge in hassle-free trade. You might be a global brand, but extending your services and reach into the nooks and crannies of towns and villages signifies your business success. And for that, you should become a local competitor. 

Here are some benefits of multi-warehousing you must flip through to know how timely partnership with 3PL providers can help you track inventory management and be a local competitor:

Control and Regulate Shipping Cost

Customers mostly abandon their carts considering the inflation in shipping charges. They might find the product price feasible. But along with the shipping charge, the total pay might surpass the market price of the product. Then why should the customers choose you? The question is quite logical.

Reducing the delivery charge is necessary to hook potential customers. A local inventory storage centre helps you tackle the issue of shipping charges. Moreover, it will help you reduce delivery time. You should convince your customers that what you are providing is affordable and beneficial compared to the traditional market. 

Read More: Strategize Your Order Fulfilment Cycle to Improve Customer Experience

No Transportation Issues and Tax Regulations

Imagine your whole network lies in Mumbai, and your customers are spread across various parts of the country. Does it sound good to cross the borders each time they order a product? Is it affordable to you?

Stopping at every check post and paying taxes may ruin your profit margin. Moreover, the tax amount varies according to the nature of the product. If you are shipping large furniture items, electronic devices or glass items, extra packaging and controlled transportation are needed. And there are all the possibilities to find some tear and wear on the product when it finally reaches the doorstep forcing your customers to leave a negative review.

What if you have owned multiple warehouses in different parts of the country? Things would have been easy and smooth. 

  • No transportation charges
  • No Tax Amount
  • Fast Delivery
  • Quality Product Supply 

Helps in Sustaining Business During Pandemic Times

The logistics unit needs to be equipped to deal with tough times. Recent pandemic has inflicted doldrums all over the country risking logistics activities and curbing businesses. Borders remained closed for long, and orders were cancelled, and customers demanded refunds.

If you own multiple warehouses in different locations, supply management could be made more effective. If such risks come in the future, managing delivery inside the local market could be enhanced by managing multiple warehouses in different localities.

Reduces Product Shortages and Inventory Risks

Multiple warehouses help you sustain a continuous flow of goods without inflicting any hindrance in the supply unit. Additional stocks will be available in any of the warehouses situated across the country. This will help you reduce unprecedented shortages.

Let’s see how this functions in real. You have multiple warehouses across South India. Your headquarters is located in Delhi. If any of your warehouses in the south undergo product shortage, they can be easily restocked if you have neighbouring warehouses.

Otherwise, waiting for the inventory to reach the warehouse will take time, and you may lose some worthy customers. Hence, find a good 3PL service provider and expand your warehouse facilities right now to meet customer requirements and secure the future.  

Recommended Reading: Material Handling for Warehousing: Ensuring Efficient Operations

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You can Provide Customers Access to Curbside Pickup and Warehouse Visits

Local warehouses help customers choose a curbside pickup option. If your work demands constant mobility, you might not be able to wait for the delivery person. In such cases, customers can choose the curb-side-pick up option.

In addition, clients interested in your products and retailers can pay a visit to your warehouse if you run a local warehouse. This improves the reliability and transparency of your business.

Scope for New Market Strategy

If you are close to your customers, you can provide them with offers and discounts. Give them one-day delivery or sales discount on bulk orders or frequent orders. This will help you stand out from local competitors.

If you want to fulfil the urgent needs of customers, you need to stay close to them. They will definitely choose and recommend your service when they think about the next purchase.

Eliminates Carbon Emission and Pollution

Operating an ecologically balanced warehouse is necessary for this era where pollution is rising every day. Businesses need to be more conscious of the environment. Saving fuel and reducing carbon emission is also imperative to boost profit margin and eliminate contamination. Multiple warehouses or local warehouses help to control freight and reduce carbon emission. 

Also Read: Top 6 Inventory Management strategies to Boost Supply Chain Efficiency

Reach out to 3PL Solution Providers for Multiple Warehouse Needs

Can businesses afford multiple warehouses? If you have monetary benefits, it is easy to start in-house multiple warehouses. But running it might pose challenges in the long run. Managing internal business activities and running freight might spoil your focus when your business expands. Hence, partnering with a certified 3PL provider is always good to balance your business activities. From multiple warehousing to timely distribution, 3PL providers will take your brand to the nooks and crannies. 


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