Shipive, a 3pl and Warehouse solution company, allows retail and eCommerce enterprises to acquire wholesale products in quantities that may not fit in a physical retail shop or be purchased by an end customer online. Large bulk purchases enable these companies to negotiate cheaper pricing with their suppliers, increasing their profit margins when selling to clients. They can also retain inventory on hand as demand changes to guarantee that items remain in stock.
Here are some justifications why you need warehousing service
For most sorts of organizations that deal in physical commodities, warehousing is an integral aspect of the supply chain. This might be consumer firms storing a product that will eventually be sold to a retail client or business-to-business (B2B) organizations keeping items that will eventually be sold to business customers. The warehouse solutions industry makes life easier when safely storing and forwarding shipments on time.
(i) Seasonal production:
We know that certain commodities are produced during a specific time of year, such as agricultural goods, harvested during a specific season, such as summer, winter, or monsoon. Still, the need for consumption occurs all year. As a result, suitable storage or warehousing for these items is required to ensure year-round supply.
(ii) Bulk production:
Because of borderless economies and globalization, production typically occurs throughout the year to fulfil domestic or present demands and meet future desires. Manufacturers make things in bulk to reap the benefits of economies of scale since ordering and transporting costs may be reduced by acquiring big quantities of raw materials.
(iii) Non-stop production::
Continuous or regular manufacture of commodities, often known as non-stop production, needs an appropriate supply of raw materials. Given the future uncertainties and country-specific problems such as traffic jams, poor climatic conditions, insufficient infrastructure facilities such as bad roads, water logging, and road blockage. It becomes critical to have a sufficient supply of raw materials in the warehouse to ensure continuous production.
(iv) Seasonal/irregular demand:
In our routine life, we use certain things which are needed seasonally, like umbrellas in the rainy season and woolen garments in winter. But the sale of these items happens annually as manufacturers cannot close their factories. Therefore, it requires a storage facility to store these items to make them available whenever required.
(v) Ensuring supply near the place of consumption:
The fact is that agricultural and industrial goods are produced at separate locations but consumed throughout the nation. Therefore, traders (suppliers, wholesalers, or retailers), to meet the expected and unexpected demands of the customers, stock enough quantities of raw materials in the warehouses. Further, they fear losing customers in case of stock out.
(vi) Price consistency:
As we all know, a scarcity of anything in the market leads to higher prices; similarly, an abundance of products in the market results in full prices. As a result, appropriate stock must be kept in warehouses at all times to ensure consistency in the pricing of commodities. Traders can balance the supply of commodities and their pricing by doing so.
For all your eCommerce fulfillment requirements, connect with Shipive, As we provide you with the best service, rates, and care.