Storage

FULFILMENT STORAGE SOLUTIONS

Table of Contents

What is Fulfilment Storage?

What is 3PL storage?

How much does fulfilment storage cost?

 

What is Fulfillment Storage?

Fulfillment storage, also known as order fulfillment storage, is a vital component of e-commerce and logistics. It involves the warehousing and management of products to enable efficient order processing and shipment.

Key Aspects of Fulfillment Storage:

1. Strategic Warehousing:

1. • Companies store their inventory in strategically located warehouses to facilitate prompt order fulfillment and ensure timely delivery to customers.

2. Inventory Management:

1. • Effective fulfillment storage systems utilize advanced inventory management techniques to track stock levels, monitor product availability, and prevent overstocking or stockouts.

3. Technology Integration:

1. • Many fulfillment storage solutions incorporate technology and automation to enhance processes. This includes tools for inventory control, order picking, and packing, ensuring accuracy and efficiency.

4. Order Processing:

1. • When an order is placed, fulfillment storage allows for rapid processing. Items are quickly picked from shelves, packed, and prepared for shipment, minimizing delays.

5. Responsive Supply Chain:

1. • By streamlining the storage and fulfillment process, businesses can create a more responsive supply chain, meeting customer demands promptly and effectively.

6. Scalability:

1. • Fulfillment storage solutions can easily scale to accommodate growing inventory needs, making it suitable for businesses of all sizes, from startups to large enterprises.

By utilizing fulfillment storage, companies can enhance their operational efficiency, reduce shipping times, and improve customer satisfaction, ultimately driving growth in the competitive e-commerce landscape.

 

What is 3PL Storage?

3PL storage, or Third-Party Logistics storage, refers to the warehousing and inventory management services provided by third-party logistics companies on behalf of businesses. This service allows companies to outsource their storage and distribution needs to specialized logistics providers.

Key Features of 3PL Storage:

1. Outsourced Warehousing:

1. • Businesses partner with 3PL providers to store their inventory in strategically located warehouses, optimizing shipping times and costs.

2. Comprehensive Solutions:

1. • 3PL storage includes a range of services such as:
     • Storage and Inventory Management: Efficient tracking of stock levels, replenishment, and organization.
     • Order Fulfillment: Picking, packing, and preparing orders for shipment to customers.
     • Shipping and Distribution: Coordination with carriers for timely delivery.

3. Focus on Core Operations:

1. • By outsourcing logistics functions, businesses can concentrate on their core competencies, such as product development and marketing, rather than managing warehousing and shipping.

4. Expertise and Infrastructure:

1. • 3PL providers bring specialized knowledge and established infrastructure, allowing businesses to leverage advanced technologies, best practices, and efficient processes without significant capital investment.

5. Scalability:

1. • 3PL storage solutions are adaptable, making it easy for businesses to scale their operations based on demand fluctuations without the burden of managing physical storage space.

6. Cost-Effectiveness:

1. • Outsourcing to a 3PL can reduce overhead costs associated with maintaining warehouses, staffing, and equipment, ultimately leading to greater efficiency and savings.

By utilizing 3PL storage services, businesses can enhance their supply chain efficiency, improve customer satisfaction through faster delivery, and maintain flexibility to respond to changing market demands.

How much does fulfilment storage cost?

The cost of fulfillment storage can vary widely depending on several factors, including:

Volume of Inventory: The amount of space required to store your products will significantly impact the cost. Larger volumes typically lead to lower per-unit storage costs.

Storage Duration: The length of time your products remain in storage will influence the overall cost. Long-term storage may result in discounted rates, while short-term storage might incur higher fees.

Location: Fulfillment centers in different regions may have varying costs due to factors such as labor rates, real estate prices, and operating expenses.

Additional Services: The services you require beyond basic storage, such as order processing, pick and pack, kitting, or returns management, will increase the overall cost.

Fulfillment Provider: Different providers have varying pricing structures and may offer different levels of service. It’s essential to compare quotes from multiple providers to find the best deal for your specific needs.

Here are some common pricing models:

• Per-unit storage: You pay a fixed fee for each unit stored, regardless of the product’s size or weight.
• Square footage: You pay based on the amount of warehouse space your inventory occupies.
• Tiered pricing: You receive discounts for higher storage volumes.
• All-inclusive packages: You pay a fixed fee for a bundle of services, including storage, order fulfillment, and shipping.

To get an accurate estimate of fulfillment storage costs, it’s recommended to:

1. Assess your inventory: Determine the volume and size of your products.
2. Identify your storage needs: Consider the duration of storage and any additional services required.
3. Request quotes: Contact multiple fulfillment providers and compare their pricing structures.
4. Factor in hidden costs: Be aware of potential additional fees, such as handling charges or surcharges for peak seasons.

 

Storage Solutions

Let us take the strain off running a warehouse or distribution centre.

Our flexible storage solutions can take the strain off your supply chain from the physical cost of a storage facility together with the following overheads associated with storing goods.

Warehouse Cost

• Rent / Mortgage
• Business Rates
• Electricity and Heating
• Service Charges
• Insurance

 

Equipment

• Racking
• Forklifts
• Handling Equipment
• Packing Stations
• Electronic Equipment

 

Staff

• Salaries
• Training
• Insurance
• Equipment
• Health and Safety

 

Misc

• Insurance
• Software
• Additional Accountancy
• Expertise
• Security

Just a few of the costs associated with running a warehouse for storing goods, why not outsource to experts in the field, our experience together with fully equipped warehouses and storage facilities in the UK and abroad can get your orders quicker to your customers and with our discounted rates cheaper than completing the job in house.

Our storage is calculated on a per item per week basis, this means that our customers know exactly on a weekly basis how much their storage cost will be, we bill weekly to accurately reflect what stock is in the warehouse when it is billed, our storage costs start at a super low £0.010 per item per week.

Use our handy calculator below to work out how much it will cost to store your goods with Buzee Fulfilment centre, simply choose the product format and quantity of item you wish to store with us for an instant price for your ecommerce storage.