The constantly evolving product demand has made suppliers choose virtual warehousing to deliver orders to customers as soon as possible. Decentralization of the supply chain is the key to meeting increasing consumer demand. Virtual warehousing allows inventory to be physically housed anywhere such as a distribution center, a temporary facility, or the back room of a store, and then distributed on an as-needed basis.
Virtual warehouses are a type of distribution and fulfillment center. Distribution of products stored in these virtual warehouses is done through 3PL services to fulfill orders faster and meet customer expectations.
With virtual warehousing, all your
distribution centers or fulfillment centers are considered as a network and
this network is then considered for fulfillment. So, when an order
arrives, the network is consulted, irrespective of where the product is stored
to identify the best possible way to fulfill the order based on the
geographical location of the customer, as quickly as possible.
A virtual warehouse is made more
efficient with the use of a platform that provides visibility to inventory
assets in real-time. A virtual warehouse can be used to serve omni-channels and
create a more efficient supply chain network. This helps to increase profit
margins while reducing business costs.
Advantages of using virtual warehousing services
The warehouse is an integral part of any retail supply
chain and its retail operations. The Indian Warehousing Market is expected to be
an estimated $12.2 billion in 2020,
growing to $19.5 billion by 2025.
·
Cost-reduction
The location of a warehouse is becoming increasingly
important to facilitate free cargo movement and to ensure time-bound
operations. By outsourcing to 3PL services, the need to maintain a physical
structure, security, maintenance, permits, and many other costs, are avoided.
·
Efficient
Logistics Supply
The shipping time and cost associated with a
traditional physical warehouse are in efficient and expensive. Virtual warehousing enables
faster fulfillment of customer orders because distribution centers can be built
closer to customers. These methods reduce costs and ensure faster delivery
times that customers expect from retailers.
·
Avoid
Dependency on a Single Distribution Center
With virtual warehousing built on an inherently
distributed network of inventory, retailers can avoid having a single point of
failure. Retailers can, therefore, increase the pool of inventory available to
them without the costly process of investing in more warehouses and buying more
stock.
·
Inventory
Flexibility
Frequent changes in product demand often lead to
insufficiencies in available inventory. A virtual warehouse provides
flexibility to access multiple distribution centers for the same type of inventory.
With a virtual warehouse, it becomes easier to cope with fluctuating customer
demands because you don't have to stock more than what is needed.
·
Sustainability
Virtual warehousing ensures an optimized supply chain
by not holding unnecessary stock that may go out of season quickly, thus
reducing waste. This is beneficial for the environment and to promote
sustainability. With visibility and accurate inventory by location provided
through virtual warehousing, decisions can be made for effective forecasting of
inventory to counter erratic and seasonal demands.
Safexpress, one of the largest and fastest logistics companies in India, with its existing 42 3PL locations, is well-equipped to cater to the need for fast
and efficient delivery fulfillment for their customers. With its multi-state
warehouse and robust IT systems, operational efficiency and inventory visibility
are easily achievable to promote fast last-mile delivery and order fulfillment.
In Conclusion
The Indian government, with its supportive policies, such as the establishment of logistic parks and free trade warehouse zones, is expected to spur the market growth for virtual warehousing services in India.
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