Saving Time and Money with a Multiple-Warehouse Strategy

September 6, 2018 | Multi-Warehouse Inventory Control | By Jesse James | 0 Comments

Saving Time and Money with a Multiple-Warehouse Strategy

How splitting your inventory between multiple locations speeds up delivery and reduces shipping costs

Ecommerce business owners are often faced with a dilemma: host all inventory in a single warehouse to keep supply-chain management simple, or utilize multiple warehouses to save on shipping. The problem is, you need both.

You’ll never compete with larger retailers if you can’t offer fast delivery speeds at low cost, and you’ll never survive if you can’t manage a complicated supply chain.

This is why we’re excited to announce the opening of our second warehouse in Memphis, TN. This facility will allow you to offer your East Coast customers two-day ground shipping at a competitive price while still utilizing our shockingly simple shipping software to automatically select the closest warehouse and most affordable option for the customer’s location and order.

Why use a multi-warehouse strategy?

When an ecommerce brand is looking to target a growing national or global audience, hosting all the product at a single warehouse can cause massive shipping delays and crazy-high transport costs. It can also become incredibly inefficient and in some cases, detrimental to the product. Our customers like WYLDER need to offer their probiotic coffee as fresh as possible to every customer, coast to coast. Waiting a week for delivery just won’t cut it.

In fact, 73 percent of shoppers expect affordable, fast deliveries and 24 percent of customers will actually cancel an order for slow shipping. In a nutshell, unpredictable or long shipping times lead to the swift death of an online retailer.

With the opening of our Tennessee warehouse, in addition to our LA-based warehouse, your customers can receive the same fast, affordable shipping regardless of where they live.

A couple highlights:

  • The new warehouse brings the max in-country shipping time to three days, with 90 percent of the U.S. in a two-day shipping zone.
  • Having inventory in both warehouses easily saves 20 percent of shipping costs.

So how do you manage your supply chain when using multiple warehouses?

Here’s the simple answer: you don’t.

Unless your business plan includes you managing shipping 24/7, attempting to manage inventory between multiple warehouses and shipping services will inevitably lead to inventory issues and communication problems.

This is where a 3PL comes in. ShipRelay’s software will automatically select the closest warehouse and most affordable shipping solution for your customer’s location. In addition, it will sync all your sales channels and keep track of inventory across warehouses and locations, allowing you to match the service of the largest retailers without having to build your own infrastructure.

This is really only the beginning. We’ve got big plans for an East Coast warehouse, which will allow our customers to offer two-day shipping to 95 percent of the U.S.—stay tuned.

Learn more about how ShipRelay can help you fulfill orders from multiple warehouses and expand your ecommerce business here.

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