Warehousing

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Warehousing

Warehousing is the central piece of E-Fulfillment. Except for drop shipping, where the product is shipped from the production facility, every web-retailer needs a warehousing system. And even in that situation, the factory itself may be seen as a kind of temporary storage facility. But, dropshipping is limited in its use and often only a short-term solution for smaller entrepreneurs. But, webshops tend to expand rapidly. Once this growth happens, it is important to have a good warehousing system. The workload of managing that system can be overwhelming. Delegating this to a professional warehouse can be an efficient solution for meeting those needs.Professional warehouses provide e-commerce businesses with added flexibility in storage options. Plus, they have experienced staff and modern ICT solutions. Flexibility in this context means renting more space when there is a higher volume of orders incoming and reducing the space once it slows down. This way you pay only for the space you actually use. In the long term, this may save you a lot of money.

Logistics

Nowadays warehousing is more than just the storage of goods. It includes everything between receiving the goods and delivering them to the consumer. This means that professional warehouses handle all logistics behind storage, packaging or repackaging and distribution of products. The benefit of using them comes from the volume of products they handle. A centralized warehouse handles the storage needs of hundreds of webshops and is thus able to get better rates for things like shipping or handling of goods. Think of it as buying things in bulk, the quantity allows for a better deal on many of the aspects of warehousing and distribution.

Storage Flexibility and Safety

Modern warehouses offer storage and management for a wide range of products and volumes of them.
They will have enough space to offer the client options on downsizing or upsizing their storage space as the circumstances dictate it, and have a strong safety policy. To reduce losses to a minimum, modern warehouses use a variety of tagging methods and software systems that keep track of the stored goods. They will oftentimes be registered inside a centralized software system with a barcode-like tag, which is then scanned for precise information on the location and status of the product once the need arises.

A good modern warehouse will have an integrated bonded warehouse or customs entrepot. This type of warehouse allows the storage of goods that fall under customs duties. It allows the client to store those goods without paying the taxes up-front. Instead, the client has the opportunity to sell the product before paying the duties. This can be beneficial especially when doing re-exporting business. In that case, you don’t even have to pay the fees associated with importing goods.

To handle all the working parts of warehousing modern warehouses need software systems. These systems handle the registration and tracking of goods. This means that a central WMS will gather information on the goods stored within the warehouse. That information is then available through scanning. The benefit of this method is the availability of statistical information. The client usually has access to relevant information on his business through the system. This includes things like sales numbers or returns. That can be a particularly big advantage for fine-tuning your business.

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