The Benefit of Order Fulfillment Companies
The benefit of using a fulfillment company includes: the fulfillment company will provide the service of a warehouse. The cost involved in renting a warehouse space that involves the moving of inventory into the warehouse and negotiating skills have been left to the fulfillment company to undertake on your behalf. The cost of leasing out a warehouse is in most cases a fixated fee. The liability of the warehouse is left to the fulfillment company to undertake.
Liabilities that are common in a warehouse operation includes the security for the inventory, the cost of auditing the stock in the go down, the cost of salary payment to the personnel working in the warehouse, the wear and tire of both the movable machinery, the general cost of utility bill has to be covered by the fulfillment company, the cases of vermin destruction cost and pilferage has to be covered by the fulfillment company. By turning the logistics to a fulfillment company you have actually shifted all the financial implication that includes the procuring of the warehouse to a fulfillment company. Make sure to research more on internet fulfillment services now.
The major reason why most prospective businesses would rather deal with a fulfillment company is the employee factor in management. The fulfillment company on normal cases will manage the payroll, benefits, taxes involved for the employees working to ensure that you as their client are let to focus on the core business. The time consumed in moving inventory is quite big and managing the workforce that is involved in ensuring that the goods are transported to the right location involves huge investment and experience. This can only be guaranteed through the leasing of a fulfillment company. This is something you'll want to learn more about.
A fulfillment company will most likely out of expertise position the warehouse closer to the customers thereby reducing the cost of logistics. The distribution time will have been reduced given the close proximity of the warehouse to the market. When distributing inventory across a vast territory, it would be prudent for the service to be brought closer to the people who may within a short time order and expect prompt delivery. The idea of relocating the warehouse would make the focus of the management to shift from its core business and incur unnecessary costs. But with the contracting of a fulfillment company, they will manage to offload such obstacles by taking up the inventory from the manufacturer and deliver them to their warehouse at no additional cost given the initial contract agreement. Here's a video on how order fulfillment works: https://youtu.be/2bMZEglBVp8