Benefits of Multi-Warehouse Inventory Systems
As the online shopping world grows and the demand for fast delivery increases, many companies realize that one warehouse isn’t enough. That’s where multi-warehouse inventory systems come in. Managing your inventory well is critical for your business, no matter your industry, and you need the proper inventory software to track your product’s whereabouts and coordinate delivery services.
However, even if you have advanced cloud-based inventory management software in place, it’s still a good idea to build multiple warehouses for your products as your business expands. This is especially true of national or global companies, such as Amazon, that build their name around fast, reliable delivery services.
What Is Multi-Warehouse Management for Businesses?
A multi-warehouse inventory system generally becomes necessary when your brand needs more space to store inventory, you want to cover a wider geographical area or find a way to get your products to customers faster. This system essentially refers to an inventory management solution that uses two or more warehouses to store and track inventory.
What Types of Businesses Benefit From Multi-Warehouse Inventory Systems?
We believe that if your business falls into any of the following categories, a multi-warehouse inventory system may be a good idea.
- eCommerce businesses: In the world of eCommerce, customer satisfaction is everything. If your business caters primarily to online shoppers, having a system in place that ensures fast, reliable product delivery to a customer base scattered all over the country (or even the globe) requires maintaining multiple warehouses, each within reasonable proximity to your customers.
- Businesses carrying heavy items: If you carry a significant quantity of heavy products, such as items exceeding 10 pounds, you’re likely burdened with higher packaging and shipping costs. Multiple warehouses can lessen the delivery time and distance for your products, so you can save money on shipping in the long run.
- Businesses carrying perishable items: If you need to ship items such as food, beverages or plants to customers across the country or state, it’s a good idea to use multiple warehouses. This allows you to ship products to customers faster and spend as little time as possible in holding facilities.
- Businesses covering a wide geographical territory: In general, businesses with global or national customer bases tend to spend more on shipping and handling than those with local customer bases. Multiple warehouses reduce shipping costs and also ensure faster product delivery and better customer service.
Benefits of Multi-Warehouse Systems: The Bottom Line
There are many reasons a business should opt for a multi-warehouse inventory system, but most tie directly to business or brand expansion. You can use multi-warehouse management software, such as cloud-based multi-warehouse inventory management technology from Finale, to easily manage these warehouses. Contact us for your free trial today!