In the eCommerce industry, warehousing and fulfillment centers have become crucial stages of the logistics cycle. Today, modern warehousing relies on technology-driven automation, simplifying storage, retrieval, picking, and labelling of products for delivery. This definitive handbook on warehousing will guide you through leveraging inbound and outbound logistics to effortlessly run your eCommerce business.
The core concept of warehousing is the safekeeping and managing of goods during their transit from the point of production to the eventual distribution to customers. Therefore it is a very crucial stage where storage plays a pivotal role in bridging the gap between production and consumption.
A logical way for small and emerging businesses to explore warehousing solutions is to outsource logistics to third parties and manage their inventory from such facilities.
For larger eCommerce businesses, the warehousing process differs slightly. In these cases, products are stored in inventory within dedicated facilities until an online order is placed. Once the order is received, the products are shipped directly to consumers from the warehouse. However, modern warehouses go beyond just storage; they have become dynamic hubs that offer various value-added services. These services include order fulfillment, packaging, and quality control.
Any business that sells physical goods needs to manage the movement of goods from makers to consumers. Here are some of the key elements of warehousing logistics for the eCommerce industry-
After completing the warehousing process, the order is now ready for dispatch. But now begins the next stage in logistics processes – the supply chain. The smooth functioning of a supply chain hinges on efficient warehousing, and effective warehousing relies on seamless supply chain management.
Warehouses play a strategic role in optimising supply chains by facilitating long-term storage, order fulfillment, and quick inventory turnover. These services can be managed in-house by retailers or outsourced to third parties.
The eCommerce industry often faces logistical challenges, even with efficient warehouse operations and optimised supply chains. Let us know more about such challenges and the various options to solve these issues. Warehousing plays a pivotal role in addressing these challenges and providing solutions:
eCommerce businesses hence need to have a great warehouse solution partner to gain a competitive advantage. The choice of various warehousing options are –
1. Public Warehousing: Ideal for businesses seeking cost-effective solutions and flexible storage options without long-term commitments. You will need to explore the storage costs and security aspects to commit to public warehousing.
2. Private Warehousing: For businesses with consistent and predictable storage needs, private warehousing offers dedicated space and full control over operations. Again cost will play an important role. Storage costs and the number of SKUs that can be held becomes important.
3. Shared Warehousing: A collaborative model where multiple companies share warehouse space and resources, reducing costs and promoting synergy. Its location is also important to determine the ROI of this category of warehousing.
4. Temperature-Controlled Warehousing: Suitable for industries dealing with perishable goods, pharmaceuticals, or food products that require specific storage conditions. Considering they are niche services, the cost and SKUs play a key role in choosing this category of service provider.
5. Distribution Centers: Strategically located distribution centers enable businesses to optimise inventory management and reduce shipping times.
Thus, despite the number of options available as warehousing solutions, selecting the ideal partner would be subject to all or some of the above factors. However, a very effective way to adopt warehousing solutions is by selecting self-managed warehouses.
Technology-driven solutions are a business’s best friend in the field of logistics and supply chain. A mid-way solution which matches the need for privacy and a controllable environment, establishing a Warehouse Management System (WMS) is a win-win solution. A WMS integrates various warehouse operations, such as inventory tracking, order fulfillment, and labour management, into a cohesive platform. It enhances efficiency, reduces errors, and empowers businesses with real-time insights to make data-driven decisions.
To the question of ‘what is warehousing,’ the number of solutions that the logistics and supply chain facility can offer is unbelievable! Warehousing management systems define the flow of inventory, order fulfillment, packing, labelling and dispatch with zero room for error.
Understanding the key components of warehousing logistics, its interconnection with supply chains, and the solutions it offers to address challenges empowers businesses to make informed decisions. With the right warehousing solution and a robust Warehouse Management System in place, organisations embark on a journey of logistics excellence, delivering products to customers with harmony and precision in this fast-paced world of commerce.
Warehousing is a solution that directly impacts the efficiency of a supply chain in terms of the storage it can offer, its location and its ability to handle operations.
The major challenges businesses face are – inventory optimisation, last-mile delivery, technology integration, reverse logistics, and risk mitigation. Warehousing solutions address each of these challenges with technology-based solutions.
Businesses can choose from various warehousing options, such as cost-effective temperature-controlled warehousing for perishable goods and distribution centers for strategic inventory management.
In recent years, eCommerce has grown to be a vital component of global retail. This trend, which has been going…
The COVID-19 pandemic has changed the approach of business in managing operations, inventory management, sales, marketing and more. Inventory management…
There are a lot of steps and processes that go into the logistics operations. Managing them all and ensuring that…
Physical inventory refers to all the goods you have in stock in your shop, warehouses, or any other place you…
A change in market trends brings along new needs, requirements, and strategies for business models to adapt to the market.…
The movement of products and services from the site of production to the site of consumption is referred to as…