Multi-warehouse inventory refers to a system of managing and tracking inventory across multiple warehouse locations.
Instead of having all inventory stored in a single warehouse, a business with a multi-warehouse system distributes its stock across several warehouses.
Storing your product at multiple locations not only makes the shipping faster but also saves you good fortune.
Importance of Multi-Warehouse Inventory System
You just can’t keep all your eggs in one basket. Having multiple warehouses, not only proves to be efficient in terms of time and money but also plays a major role in covering a wide geographical area.
Let us go through the reasons why the companies go through why the companies opt for multiple warehouses
Reduce transportation and labor costs
The idea of having multiple warehouses is to keep them at a location from where orders can easily reach the customer in a short period in that geographical region.
When the distance between the product source and final destination is decreased, it cuts down the transportation cost and so is the labour cost.
Prevents Inventory Shrinkage and Lowers Risk
Having multiple warehouses always serves as a backup in case of unfortunate events occur.
It’s always possible that sometimes, any particular warehouse of yours runs out of stock and due to natural calamity, you can ship products from other warehouses.
In situations like these, other warehouses play a critical role in delivering the products to customers.
Exceptional Service Standard
Who doesn’t want their products in their hands just in time? When you deliver products in a short span of time to your customer, you have already raised the bar of your service delivery standards.
Customers will be looking to prefer you more over others because of reduced cost and faster delivery.
New Marketing Strategies
When you have time and money by your side, you can focus on creating a good marketing strategy and generating revenue.
You can offer a subscription with benefits like one-day delivery or a maximum discount.
You can also provide customers with options to deliver products as gift wraps to their loved ones at their location.
Increased Productivity
The ability to deliver products faster to the customers and that too with reduced cost increases your efficiency and productivity.
You achieve higher returns on the investment involved in setting up the multiple warehouses.
Having multiple warehouses also automates a few processes from order processing and stock control to shipping, order fulfillment, and replenishment.
No Hassle in Reordering
The most critical issue eCommerce shops face is the reordering of similar products by a large number of customers.
There can be a situation when a particular product starts dissipating from a particular warehouse and you need to make a call to the supplier to replenish it as soon as possible.
Just imagine the time it would take for the product to be replenished which could result in losing your potential customer.
Having multiple warehouses makes sure that, if one warehouse shrinks, the other can easily provide backup.
By this, at least your customer can easily order that same product and you get the customer satisfaction.
Why Bagisto?
Here we got a few insights into why companies opt for multi warehouse inventory systems. This is why Bagisto is fully equipped with multi warehouse inventory system allowing you to manage your inventory sources.
You can even create multiple channels and assign either common warehouse to all channels or particular to a channel. By setting priority among warehouses, you make sure that you have never to run out of stock.
Whenever the system detects stock insurgency, it automatically sets to other warehouses. This saves your time and effort in constantly re-checking the stock.
Fulfilling orders of your customers with the help of multiple warehouses proves to be a win-win situation for both the customers and you.
Storing your product at multiple locations not only makes the shipping faster but also saves you good fortune.
Today, when eCommerce has taken over the online shopping experience and with every company trying to push their limits for ultimate customer satisfaction, you just can’t rely on a single warehouse for order fulfillment.
If you are an eCommerce beginner, having multiple warehouses can be the very first step for your business scaling and growth.
Warehouses present at different regions allow you to ship your products to the customer faster.
