Why Does the Location of The Fulfillment Centers Important?

With the rise of e-commerce and the rapidly changing economy, terms like fulfillment centers and order management have become a part of the common vocabulary. Fulfillment companies essentially offer storage, transportation, and delivery services to all brands with an online shopping portal. Their importance in the field of successful order fulfillment is of significant nature. And the most important aspect of these warehouse and storage units is their location. In fact, the whereabouts of a fulfillment center can become a primary source of growth for the business houses they cater to.

Read on to find out what makes the location of a warehousing and fulfillment center so crucial.

Transportation: Shifting the goods from the major manufacturing unit to the storage space and their delivery to the recipient’s address requires a strong transportation network. If your fulfillment service is positioned far from the main transportation channel, there is a surge in the overall expenses. Besides, the farther it is from the nearest airport, railway junctions, and ports, the longer it will take to successfully complete the order delivery. 

Availability of the workforce: No job can be finished on time without an efficient workforce. Any fulfillment service requires a considerable number of helping hands when it comes to sorting, order picking, and related processes. If the distance between your fulfillment center and the main hub of labor is too great, the chances of creating a strong staff base and pooling labor become thinner. 

Costs and Expenses:  Though the direct link is a little hard to find, the overall costs and expenses that you need to bear are closely related to the location of your distribution center. The estimated prices can increase massively if you do not take the location into consideration. Be it transportation or labor costs. The location affects the three most important aspects of setting up a fulfillment center.