As you investigate the process of outsourcing to an order fulfillment service, begin by thinking about what you really need and want in a business partner to help grow your business. After all, the main goal is to increase sales and grow the organization both organically and externally.
On the surface, all order fulfillment services may look alike and offer similar services. However, when you take a closer look at their individual methods of delivering those services, you will find large differences. Remember that not all warehouses are created equal and the goal is to choose one that is most appropriate for you and your business.
It is essential to develop a list of criteria that will enhance your company’s operation. The ultimate question is what is important to your clients. In this post, we will discuss one of the most important factors to consider when choosing a fulfillment service provider… location!
While order fulfillment warehouses can be found in every state, it is essential to select a fulfillment warehouse that is close to your clients, rather than your place of business. By doing this, you will accomplish three critical actions –
- Lower shipping costs
- Reduced transit time
- More eco-friendly operations
Did you know that shipping costs are almost equal to the fulfillment warehouse fees? If your business and customers are primarily located on the West coast, then your warehouse should also be located on the West coast. If your scope is national, then a Midwest or central location makes the most sense. Shipment savings from a Midwest location are substantial. When shipping nationally from a central Midwest location, you can save as much as 7% in shipping costs versus an East coast or West coast operation.
In today’s world, when you’re competing with companies such as Amazon, clients expect quick delivery of their orders (especially internet orders). Your fulfillment center should be located in an area that can provide 1 to 3 business day transit times to the majority of your customers.
When your warehouse operation is located centrally to your clients, you can operate in a more environmentally friendly manner. Not only will you be saving money, you will also be reducing the amount of greenhouse gasses required to deliver your product to the customer.
Have you reviewed fulfillment services recently and found that a different factor was most important to your company? Let us know in the comments below!
*Ware-Pak is a full service warehouse located in University Park, IL with over 59 years of e-commerce fulfillment experience. If you’d like to learn more, please contact us.