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Why Businesses Opt for Warehouse Storage in Fulfillment Center

Why Businesses Opt for Warehouse Storage in Fulfillment Center
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Understanding Warehouse Storage & Fulfillment Center

To better understand why businesses prefer warehouse storage in fulfillment centers, let’s start by defining these terms. Warehouse storage refers specifically to the physical space where goods are stored before they are shipped to customers or redistributed to other locations. It’s important to note that warehouse storage serves solely for the storage purpose, meaning businesses are responsible for managing other aspects such as rental, manpower, logistics, and more. Fulfillment centers, on the other hand, are specialized facilities that handle the storage, packing, and shipping of products on behalf of businesses. In short, fulfillment centers settle the A-Z for businesses and are tailored to meet customized requirements.

Key Functions of Fulfillment Center:

1. Centralized Storage Hub in Fulfillment Center

Fulfillment centers serve as a centralized location for all your storage needs, consolidating inventory from multiple locations into one convenient facility. This centralized approach simplifies inventory management and allows for better organization and tracking of products.

2. Enhanced Storage Performance in Fulfillment Center

With advanced technology and efficient processes, fulfillment centers improve your current business storage performance. With optimized layout designs, automated inventory systems, and experienced staff, these centers ensure faster access to products, reduced picking times, and overall improved storage efficiency.

3. Cost-Effective Storage Solutions in Fulfillment Center

Fulfillment centers help lower the initial conservation costs that some products may require when stored in general stores. Through shared resources and economies of scale, businesses can benefit from cost-effective storage solutions without the need for large upfront investments in warehouse infrastructure and equipment.

4. Product Safety Measure in Fulfillment Center

Fulfillment centers offer a storage solution to keep your business’s items safe and secure, including temperature-controlled storage for temperature-sensitive products (items kept in air-conditioned storage) and quality control (QC) checks during the inbound process. Additionally, while some fulfillment centers utilize in-house systems, not all of them do, as some use outsourced systems.

5. Speed and Transparency in Fulfillment Center

Fulfillment centers prioritize speed and transparency in warehouse operations, ensuring timely order fulfillment and real-time inventory visibility. One crucial aspect is their adherence to Service Level Agreements (SLAs) to maintain the required speed. With advanced tracking systems and streamlined processes, businesses can monitor stock movement, track order status, and provide customers with accurate delivery estimates, enhancing overall transparency and customer satisfaction.

Key Features in Technology of Fulfillment Center

1. 24/7 Live Tracking of Order and Delivery Status

Fulfillment centers utilize advanced technology to track orders 24/7. Whether it’s a retail or online order, rest assured that it’s all managed by the fulfillment center. If any issues arise, customer support is readily available for assistance. This ensures seamless visibility into the progress of shipments for both businesses and customers.

2. Integration with Inhouse Warehouse Management Systems

Although not all fulfillment centers have their own in-house systems, it’s essential to consider this feature when choosing a provider. Fulfillment centers that utilize their own in-house warehouse management systems, including SKU management, offer several advantages. With an in-house system, the fulfillment center has better control over its operations and can tailor its systems to meet specific business needs. This ensures smoother operations, greater flexibility, and reliability in managing inventory, orders, and logistics.

3. Real-Time Inventory Monitoring 

Utilizing advanced inventory monitoring technology, fulfillment centers continuously track inventory levels in real-time. This proactive approach not only helps prevent out-of-stock (OOS) situations but also enables businesses to optimize stock levels, reduce excess inventory, and make informed decisions about purchasing and stocking strategies. This ensures that businesses can replenish stock promptly and meet customer demands without interruption, ultimately enhancing customer satisfaction and reducing costs.

Type of Storage in Fulfillment Center

In fulfillment center, different storage methods are utilized to suit the needs of various products. These solutions cater to items of all sizes, from large and bulky to small and delicate. Let’s explore the different types of storage options available and their specific functions

Multi-tier Racking Storage/Pallet Storage: 

This storage solution is ideal for bulky items such as furniture and electronic devices. It functions by utilizing multi-tier racking (pallet storage) systems, allowing fulfillment centers to efficiently store and organize large and heavy items. This optimization of warehouse space ensures easy access for retrieval and shipment, maximizing efficiency in handling bulkier products.

Shelf Storage: 

Shelf storage is suitable for small items commonly used in e-commerce businesses, ranging from the smallest accessories to products such as FMCG (Fast-Moving Consumer Goods), fashion items, and food products. The function of shelf storage is to organize items on shelves based on size, category, or other criteria. This facilitates quick and easy retrieval for order fulfillment, ensuring that products are readily accessible and can be picked and packed efficiently.

Temperature Control Storage (Air-Conditioned Storage)

This specialized storage option is designed for temperature-sensitive products such as pharmaceuticals and cosmetics. The function of temperature control storage is to maintain these products within specific temperature ranges to preserve their integrity and efficacy. By providing a controlled environment, fulfillment centers ensure that temperature-sensitive items remain in optimal condition throughout the storage and distribution process, minimizing the risk of spoilage or degradation.

High Value Items Storage: 

This storage area is dedicated to high-value items, such as luxury goods and valuable merchandise. The function of high-value items storage is to implement strict security measures to protect these items from theft or damage. Fulfillment centers employ access controls and secure storage facilities to safeguard high-value items. By storing these products securely, fulfillment centers provide assurance to businesses and customers that their valuable items are handled with the utmost care and attention, maintaining their quality and value.

Business that use Fulfillment Center for Warehouse Storage

  • E-commerce

Fulfillment center warehouse storage is essential for e-commerce businesses of all sizes. Whether you’re an online startup or a well-established online retailer, these centers offer scalable solutions to manage your inventory efficiently and fulfill orders promptly. With customizable services tailored to the unique needs of online businesses, e-commerce retailers can streamline their operations and focus on expanding their online presence.

  • SME and Large Corporations

 Fulfillment center warehouse storage caters to the needs of both small and medium enterprises (SMEs) and large corporations. Whether you’re a growing SME looking to streamline your logistics or a large corporation seeking to optimize your supply chain, these centers offer flexible storage options and comprehensive logistics support. From inventory management to order fulfillment, fulfillment centers provide the infrastructure and expertise to help businesses of all sizes thrive.

  • Retail Stores

Fulfillment center warehouse storage is also well-suited for traditional retail stores looking to enhance their supply chain efficiency. Whether you operate a single brick-and-mortar store or a chain of retail outlets, these centers offer cost-effective storage solutions and reliable logistics services. With seamless integration between your retail operations and fulfillment center storage, you can ensure timely replenishment of stock and meet customer demand with ease. Even better, some fulfillment centers, such as iStore iSend, provide customization services like store pick-up, made possible by their own in-house warehouse management system (WMS).

In summary, businesses are increasingly turning to fulfillment centers to modernize their warehouse storage and order fulfillment processes, outsourcing the back-end work to reliable providers. This strategic approach offers numerous benefits, making it a smart way to manage business operations.

If you’re ready to take the next step and enhance your business operations, iStore iSend offers tailored fulfillment solutions to meet your needs. Click “Contact us today” below to explore how our expertise can drive your business forward

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