When you’re searching for a fulfillment company, location matters. While some regions may offer cost savings over areas that have higher rent and labor rates, the best way to choose a location for your warehouse is to take a strategic look at all of your fulfillment needs.
We specialize in helping businesses find order fulfillment companies all throughout the United States, Canada and Europe. If you know the best location yourself, simply choose the area below to learn more about the best fulfillment centers in local areas and get connected for price quotes.
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And if you don’t know the best location for your fulfillment center, these are the things you should consider before choosing.
Inbound and Outbound Freight Affect Fulfillment Center Location
The location of your supplier and/or manufacturer has a direct impact on the best location for your fulfillment center. Any movement from your supplier or manufacturer to your warehouse adds costs to your overall business model, unless of course your supplier will ship free freight to anywhere you select (this isn’t very common, unfortunately). Therefore, minimizing any inbound transportation costs (cost to ship your product from production facilities to your warehouse) is important because less inbound freight expense will need to be passed on to your customers in the form of higher product costs.
For example, if you sell your products throughout the US and production is in the US, there may be a benefit to selecting a warehousing partner near your production facility. This isn’t always true, however, because you also have to consider your outbound freight dynamics as well as some other factors.
Outbound freight costs are the costs to get your products shipped from your warehouse to your end customers. Sometimes, end customers will ship product on their own account and/or will pay for the outbound freight and aren’t as particular about minimization of costs. However, most of the time, outbound freight costs can directly impact your sales. Especially in the case of e-commerce fulfillment of orders, potential customers may drop out of the online shopping cart if shipping charges are higher than they are willing to pay.
If you have data on where your end customers are located, then you can draw conclusions on the best location for your fulfillment center. For example, if your sales are highly oriented towards the Northeast, then you will benefit from an outbound shipping perspective to choose a warehouse in the Northeast. However, if your sales are scattered throughout the US, or if you expect to sell throughout the US but don’t know where the sales will take place specifically, then locating in the central US could be best.
Multiple Location Fulfillment Providers
Sometimes, choosing a warehouse with multiple locations is best for your business. When you have a high volume of sales that justify split locating your inventory, if speed to delivery (less than 2 day ground shipping), or if you have another specific requirement such as the need to comply with Amazon Prime shipping status, having more than one location might be a requirement.
A Fulfillment Center Near Me Could be Best
In some cases, there could be other factors that impact the ideal warehouse fulfillment center location. For example, if you need to have more oversight over operations and/or wish to maintain a more direct relationship with your fulfillment center, locating a company near your physical location could be beneficial. Another benefit to hosting your fulfillment locally is the ability to visit your inventory and the people who manage it. To keep tabs on what you have, what you need and build a relationship with the people representing you and your business.
FulfillmentCompanies.net provides a comprehensive list of pre-screened fulfillment companies that can help you achieve all your fulfillment needs in any given region. Whether you need inventory at one central location or many, we can help you find it.
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