You cannot run your e-commerce business without storing your products and supplies.
There are two ways to maintain the warehouse for running your business.
You can either construct an in-house warehouse or hire warehousing service contractors.
It is a good idea to consider taking the help of the warehousing service contractor because with growth in business it is impossible to maintain in-house warehousing.
Here, in this article, you have to consider five important things while choosing the warehouse services:
1.Number of SKUs
Before start looking for the warehouse services, you have to determine the particular needs and requirements as follow:
- The storage solution you need
- The need for storage space
- Good compatibility with other products that are stored inside the warehouse
The warehouse service providers use SKUs so that they can easily track the items that are stored inside the warehouse.
The SKUs also help in calculating the storage charge and determine the space required for the optimum storage of your products.
The charges of storing products are dependent on the SKU or per-foot basis.
Charges of using the space are dependent on the per-SKU…For instance, if you are running a business of selling cereal, you need a spate storage system where you can store each box size.
Make sure that the box size is according to the size of the one cereal pack. Also, you should create a separate storage system according to the expiration date, packaging box size, and flavors.
In simple terms, you should create the storage space according to the variation in the products.
The large sizes of companies that have a large volume of SKUs need large storage space. Some warehouse service providers take only small quantity orders.
You have to take the help of the reputable warehousing service contractors who are ready to store huge volumes of inventory and you have to pay a small amount for their services.
Thus, if you are selling products that have a slow turnover rate and a large volume of SKUs, you should look out for the stand-alone warehousing system. The standalone warehousing is one of the cost-efficient solutions.
2. Wide Range of Products
Warehouses offer storage solutions for a wide range of products. Some warehousing service providers do not offer storage solutions.
For example, some warehousing service contractors do not allow storing of flammable goods and products.
Therefore, before choosing any warehousing service provider, you should consider what kinds of products you are selling.
There are two important factors that you need to consider while choosing the warehouse services: timeframe and cost.
You should make a wise decision while selecting the perfect warehousing system.
Some business owners sell seasonal goods and products such as umbrellas, jackets, blankets, etc.
The public warehouses can provide the perfect storage solution for seasonal products and services.
Thus, seasonality is another important thing that you need to consider while choosing a warehousing solution.
You can consider hiring the contract warehouses. These kinds of warehouses are ready to offer fulfillment services on a contractual basis.
These warehouses are good for long term storage solutions. The charge of storage in the contract-based warehouse is dependent on various factors.
4.Location of Warehouse
It is quite obvious that the location of the warehouse directly affects the shipping of products to the customers.
In simple terms, the location of the supply chain will affect the complete supply chain.
The business owners who have just started their business of selling products can easily determine the efficiency of selling products.
If you want to choose the optimum warehousing system for your products and services, you should consider choosing a service provider that is located near to the communication links or transportation hubs.
For example, for instance, food markets, railway stations, or ports. On the flip side, storage space in rural areas might be cheaper or located closer to transportation hubs.
5.New Technology & Software
The warehousing facility you ultimately decide to go with should be equipped with fulfillment software to help you better track inventory and order shipments.
Fulfillment software makes it easy to handle inventory management and warehousing operations.
It automates the different activities involved in the order fulfillment process, including collecting purchase orders, tracking shipments, managing inventory items, packaging, and labeling products at workstations, and delivering goods to customers.
Technology also allows you to connect your warehouse facility with your sales channels, so as soon as a customer places an order, it’ll automatically be routed to your warehouse where the staff will quickly begin processing it.
Another key benefit of offer with warehousing software is that it lets you track the order fulfillment process in real-time.