How Does the Right 3PL Warehouse and Distribution Strategy Impact Your Bottom Line?

When it comes to e-commerce, your product matters, but getting it to your customer as soon as possible often boils down to exactly what will make you successful. You should look at your business as some form of competing race car. The product itself and your business are excellent and have an excellent equivalent, but your fulfilment centre and fulfilment staff are your pit crew.

This is precisely the role that a strategic 3PL warehouse and distribution specialist plays. It's more than just warehousing your boxes; they build an intelligent solution that will save you money and make your customers happy. Any business seeking rapid and reliable service, and more particularly west coast ecommerce fulfillment, invests in more than just a cost but an intelligent distribution strategy. Montage Fulfilment explains exactly how an intelligent solution leads to profits.

1. Location, Location, Location: How to Cut Shipping Costs

“The most immediate cost savings realised as a result of smarter 3PL warehouse and distribution strategy implementation will be achieved through eliminating the distance your boxes will have to travel.”

The Zone-Jumping Power

The cost of shipping will be dependent on the regions that the merchandise passes through from the initial source. It should be known that as your package moves further and further away from your source, it will get more and more expensive. Conversely, a good 3PL would recommend locations very near your customers.

Example on the West Coast: Just suppose that your customer base primarily consists of people on the West Coast. It would be very lucrative for your business if you were a west coast ecommerce fulfillment. That would enable your products to be shipped much closer to your customers. You would eliminate costly shipping regions, thus making every single package shipped from your centre absolutely free.

2. Scalability and Efficiency: Not an inch of waste

As an owner, you end up paying for your warehouse space when there isn’t much business, and then you have nowhere to put your products. That’s exactly where a 3PL provider steps in and resolves your issue perfectly.

Paying For What You Use

A good 3PL warehouse and distribution solution has enormous warehouses that service dozens of different customers. This enables them to readily offer you more space during peak times and less space during slow times. You will be charged just for the amount of space and labour you use.

Outcome: It is because of this flexibility that you don’t end up with massive fixed costs for renting your own warehouse space, which would remain half-empty for half the year. Your inventory costs will match your sales cycle absolutely.

3. Speed = Sales: Customer Satisfaction

Having a good distribution strategy will not only help you save money but will also help you generate money, as it will generate customers for you. The Two-Day Expectation As per today’s market demands, customers expect deliveries within two days. A good 3PL strategy will make sure of it. 

Moreover, satisfaction with deliveries will be even higher with quicker shipping. Conversely, customer service problems are more expensive. These problems will be fewer with an efficient 3PL strategy. 

Fewer Returns 

When it comes to the 3PL warehouse and distribution solution, there are fewer returns because there are high-tech systems at work that make sure they pick the correct product and box it up properly. The fewer problems there are with an order and the less chance there is for it to be broken during shipping, it stands to reason there will be fewer expensive returns for your business, which will directly impact your profit margin. 

Conclusion 

Having an optimal 3PL warehouse and distribution solution at your disposal is an instrumental approach towards optimising your bottom line, as it aims towards reducing expensive shipping costs with intelligent location decisions, preventing unnecessary overhead costs with scalable solutions, and increasing sales with faster and more reliable fulfilment. https://sites.google.com/view/kiaraaagarwal22/home https://www.tumblr.com/kiaaraagarwal/803262276398383104/what-are-the-5-must-ask-questions-for-any