{"id":9751,"date":"2020-05-15T14:23:02","date_gmt":"2020-05-15T06:23:02","guid":{"rendered":"https:\/\/www.zhenhub.com\/?p=9751"},"modified":"2022-10-07T18:24:34","modified_gmt":"2022-10-07T10:24:34","slug":"benefits-of-distributed-inventory","status":"publish","type":"post","link":"https:\/\/zhenhub.com\/blog\/benefits-of-distributed-inventory\/","title":{"rendered":"Distributed Inventory: 4 Benefits of Using Multiple Fulfillment Centers"},"content":{"rendered":"<h1><b>What is <\/b><b>Distributed Inventory<\/b><b>?<\/b><\/h1>\n<p><span style=\"font-weight: 400;\">Distributed Inventory<\/span><span style=\"font-weight: 400;\"> is an eCommerce fulfillment strategy that involves outsourcing to a single 3PL provider with multiple distribution centers. When a customer places an order online, the seller\u2019s 3PL partner taps its warehouse that has the closest proximity to the buyer to handle product delivery.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Partnering with a fulfillment center for <\/span><span style=\"font-weight: 400;\">distributed inventory<\/span><span style=\"font-weight: 400;\"> services effectively maximizes profit by reducing storage and shipping costs. This is especially applicable to retailers who have a broader target audience in terms of geographical reach.\u00a0<\/span><\/p>\n<h2><b>The Benefits of <\/b><b>Distributed Inventory<\/b><\/h2>\n<h3><span style=\"font-weight: 400;\">High-Volume Order Capability<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Retailers trying to scale their businesses are likely to experience shipping costs that exceed warehouse costs. In this case, the most cost-effective solution is to run operations from multiple fulfillment centers. Taking advantage of strategically located warehouses is a smart way to manage inventory since best-selling items can be stored and shipped from additional warehouses, while less popular products do not have to collect dust at company expense.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Online stores with high volume orders can also get access to better inventory management as 3PLs with multiple warehouses typically have their own <\/span><a href=\"https:\/\/zhenhub.com\/wms_improve_warehouse_performance\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">software<\/span><\/a><span style=\"font-weight: 400;\"> for transparency and efficiency purposes.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Fast and Low-Cost Shipping<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When it comes to <\/span><a href=\"https:\/\/zhenhub.com\/2020-beginners-guide-to-ecommerce-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">eCommerce shipping<\/span><\/a><span style=\"font-weight: 400;\">, Amazon is indeed the standard. The retail giant\u2019s two-day shipping had set today\u2019s consumer expectations. This eventually pushed other online stores to explore and consider expedite shipping. By doing <\/span><span style=\"font-weight: 400;\">distributed inventory<\/span><span style=\"font-weight: 400;\">, retailers can leverage on their shipping partner\u2019s warehouse locations to ensure orders travel less distance and therefore cost less.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Cross-Border Deliveries<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">By <\/span><a href=\"https:\/\/zhenhub.com\/signs-to-switch-3pl-providers\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">choosing a 3PL provider<\/span><\/a><span style=\"font-weight: 400;\"> with multiple distribution centers worldwide, entrepreneurs can expand their businesses and open their online stores to an even bigger market. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Distributed inventory<\/span><span style=\"font-weight: 400;\"> is also the best fit for eCommerce shops that are already shipping overseas but are looking to cut costs and reduce transit time. This makes it easier for sellers to carry out cross-border deliveries while still meeting the demand for fast shipping. Imagine how much money an American merchant can save if a warehouse in Australia can fulfill an order their customer placed from Down Under for them.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Oversized and Overweight Product Shipping<\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/blog.nexcess.net\/ship-large-heavy-items\/\" target=\"_blank\" rel=\"noopener noreferrer\">Larger and heavier products<\/a> tend to take up more warehouse and truckload space, which is already quite expensive. Using <\/span><span style=\"font-weight: 400;\">distributed inventory<\/span><span style=\"font-weight: 400;\">, retailers can save on storage and delivery costs as items will have to go through fewer shipping zones and are less likely to get stuck in warehouses.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While there is no one way to approach inventory and shipping management, merchants who evaluate order volume and geographic market location can better choose the right 3PL provider. With a detailed cost-benefit analysis and an understanding of market geography, distributed inventory has the power to increase the eCommerce conversion rate and accelerate business growth.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Are you looking to take your online shop to a global scale? Let <\/span><a href=\"https:\/\/zhenhub.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">ZhenHub<\/span><\/a><span style=\"font-weight: 400;\"> help you out! We have strategically located warehouses across the world designed to bring you affordable storage, reliable <\/span><a href=\"https:\/\/zhenhub.com\/warehousing-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">fulfillment services<\/span><\/a><span style=\"font-weight: 400;\">, and an optimal distribution network. <\/span><a href=\"https:\/\/cloud.zhenhub.com\/signup\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Sign up now<\/span><\/a><span style=\"font-weight: 400;\"> and discover how we can make the order fulfillment process a breeze for you and your customers!\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is Distributed Inventory? Distributed Inventory is an eCommerce fulfillment strategy that involves outsourcing to a single 3PL provider with multiple distribution centers. When a customer places an order online, the seller\u2019s 3PL partner taps its warehouse that has the closest proximity to the buyer to handle product delivery.\u00a0 Partnering &#8230; <a title=\"Distributed Inventory: 4 Benefits of Using Multiple Fulfillment Centers\" class=\"read-more\" href=\"https:\/\/zhenhub.com\/blog\/benefits-of-distributed-inventory\/\" aria-label=\"Read more about Distributed Inventory: 4 Benefits of Using Multiple Fulfillment Centers\">Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":10727,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","inline_featured_image":false,"_uag_custom_page_level_css":"","advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"categories":[7,17],"tags":[],"class_list":["post-9751","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inventory","category-warehousing"],"author_meta":{"display_name":"vince","author_link":"https:\/\/zhenhub.com\/blog\/author\/vince\/"},"featured_img":"https:\/\/zhenhub.com\/wp-content\/uploads\/2020\/05\/z_Zhub_decb2_blogbanner02-1-300x160.png","featured_image_src":"https:\/\/zhenhub.com\/wp-content\/uploads\/2020\/05\/z_Zhub_decb2_blogbanner02-1-600x400.png","featured_image_src_square":"https:\/\/zhenhub.com\/wp-content\/uploads\/2020\/05\/z_Zhub_decb2_blogbanner02-1-600x600.png","author_info":{"display_name":"vince","author_link":"https:\/\/zhenhub.com\/blog\/author\/vince\/"},"uagb_featured_image_src":{"full":["https:\/\/zhenhub.com\/wp-content\/uploads\/2020\/05\/z_Zhub_decb2_blogbanner02-1.png",1280,684,false],"thumbnail":["https:\/\/zhenhub.com\/wp-content\/uploads\/2020\/05\/z_Zhub_decb2_blogbanner02-1-150x150.png",150,150,true],"medium":["https:\/\/zhenhub.com\/wp-content\/uploads\/2020\/05\/z_Zhub_decb2_blogbanner02-1-300x160.png",300,160,true],"medium_large":["https:\/\/zhenhub.com\/wp-content\/uploads\/2020\/05\/z_Zhub_decb2_blogbanner02-1-768x410.png",768,410,true],"large":["https:\/\/zhenhub.com\/wp-content\/uploads\/2020\/05\/z_Zhub_decb2_blogbanner02-1-1024x547.png",1024,547,true],"1536x1536":["https:\/\/zhenhub.com\/wp-content\/uploads\/2020\/05\/z_Zhub_decb2_blogbanner02-1.png",1280,684,false],"2048x2048":["https:\/\/zhenhub.com\/wp-content\/uploads\/2020\/05\/z_Zhub_decb2_blogbanner02-1.png",1280,684,false],"gb-block-post-grid-landscape":["https:\/\/zhenhub.com\/wp-content\/uploads\/2020\/05\/z_Zhub_decb2_blogbanner02-1-600x400.png",600,400,true],"gb-block-post-grid-square":["https:\/\/zhenhub.com\/wp-content\/uploads\/2020\/05\/z_Zhub_decb2_blogbanner02-1-600x600.png",600,600,true],"crp_thumbnail":["https:\/\/zhenhub.com\/wp-content\/uploads\/2020\/05\/z_Zhub_decb2_blogbanner02-1.png",150,80,false]},"uagb_author_info":{"display_name":"vince","author_link":"https:\/\/zhenhub.com\/blog\/author\/vince\/"},"uagb_comment_info":0,"uagb_excerpt":"What is Distributed Inventory? Distributed Inventory is an eCommerce fulfillment strategy that involves outsourcing to a single 3PL provider with multiple distribution centers. When a customer places an order online, the seller\u2019s 3PL partner taps its warehouse that has the closest proximity to the buyer to handle product delivery.\u00a0 Partnering ... Read more","coauthors":[],"tax_additional":{"categories":{"linked":["<a href=\"https:\/\/zhenhub.com\/category\/inventory\/\" class=\"advgb-post-tax-term\">Inventory<\/a>","<a href=\"https:\/\/zhenhub.com\/category\/warehousing\/\" class=\"advgb-post-tax-term\">Warehousing<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Inventory<\/span>","<span class=\"advgb-post-tax-term\">Warehousing<\/span>"]}},"comment_count":"0","relative_dates":{"created":"Posted 6 years ago","modified":"Updated 3 years ago"},"absolute_dates":{"created":"Posted on May 15, 2020","modified":"Updated on October 7, 2022"},"absolute_dates_time":{"created":"Posted on May 15, 2020 2:23 pm","modified":"Updated on October 7, 2022 6:24 pm"},"featured_img_caption":"","series_order":"","_links":{"self":[{"href":"https:\/\/zhenhub.com\/wp-json\/wp\/v2\/posts\/9751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zhenhub.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zhenhub.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zhenhub.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zhenhub.com\/wp-json\/wp\/v2\/comments?post=9751"}],"version-history":[{"count":1,"href":"https:\/\/zhenhub.com\/wp-json\/wp\/v2\/posts\/9751\/revisions"}],"predecessor-version":[{"id":13490,"href":"https:\/\/zhenhub.com\/wp-json\/wp\/v2\/posts\/9751\/revisions\/13490"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zhenhub.com\/wp-json\/wp\/v2\/media\/10727"}],"wp:attachment":[{"href":"https:\/\/zhenhub.com\/wp-json\/wp\/v2\/media?parent=9751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zhenhub.com\/wp-json\/wp\/v2\/categories?post=9751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zhenhub.com\/wp-json\/wp\/v2\/tags?post=9751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}