Running an eCommerce business means moving a lot of pieces from one place to another. Though supply chain management is not a driving force to get into eCommerce, it is one of the crucial aspects as it manages everything from customer delivery to inventory management.
eCommerce businesses are provided with a few of the methods they can choose from for eCommerce warehousing, fulfillment, distribution, and shipping. They either outsource their fulfillment to the best logistics companies in india or on-demand warehousing. It enables them to keep their product closer to their end customers. This way, they occupy a lot of time and space and don’t have to invest in their own warehouse.
This guide will tell you that whether the idea of on-demand warehousing is risky or smart innovation for eCommerce business.
What Is On-Demand Warehousing?
On-demand warehousing includes the best logistics companies in india that help businesses in storing their inventory and fulfilling orders temporarily in warehouses having extra space.
The Primary On-Demand Warehousing Processes include some of the 3pls having contracts with the top warehousing companies in india, while some of them use garages and other buildings that are not assigned for fulfillment.
It arises a simple question of whether eCommerce organizations should trust the middlemen who do not have their own warehouses?
Advantages Of On-Demand Warehousing
The concept of on-demand warehousing was first initiated by Amazon. Since then, its popularity has always been increased. Businesses tend to experience multiple benefits like:
Provide Warehouse Spaces
eCommerce organizations do not look for real estate while commencing their business, and lack of space makes them opt for a temporary solution like selecting from the best logistics companies in india. Also, looking for a warehousing space requires a vast investment. These warehousing companies allow you to slot or organize a warehouse, thereby maximizing space and monetizing underutilized space. Above all, you will incur less wastage.
Provides Consistent Success
With an increase in the eCommerce business, the need for warehousing solutions also increases. We know that demand forecasting is not always predictable but when eCommerce businesses have contracts with 3pls, they continue to increase their share of total retail sales.
Provides Instant Delivery
With the help of warehousing companies, businesses can enjoy the benefit of same-day shipping and effortlessly covers the last hour mile. It is also useful when a business wants to use a city center in a particular location if you do not find it anywhere else or only required for a short timeframe.
Provides Scalability
For eCommerce organizations, selecting a fulfillment solution that scales with them at every growth stage is crucial. It supports them every time they excel in order with more space, tools, resources, and expertise.
Having contact with the best logistics companies in india eliminates the business from focusing on the entire fulfillment process. They control everything that is happening with your products and orders in their fulfillment centers. It restricts the organization from losing space, instead helps them to expand into additional space and locations. Furthermore, they work efficiently to optimize their warehouses either through batch picking or other supply chain optimization.
Conclusion
We always think twice before getting comfortable with having just any shared warehouse space storing your eCommerce Inventory. Outsourcing fulfillment is an incredibly arduous task as it is relatively tough to give up control. That is why on-demand warehousing is a smart innovation for eCommerce sine it provides a transparent experience with full visibility into the fulfillment process. From real-time inventory tracking to free distribution metrics reporting, eCommerce solutions tend to acquire everything.
Also, it enables them to build a long-term relationship with the logistic partner and grow your business consistently. They will work together and find solutions to the problem even before it has arrived and implemented them in supply chain efficiency. It benefits the eCommerce business in the very long run.