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5 Reasons Why Distribution Centers Are Perfect for E-commerce Businesses

At such a time where people are going crazy over mobile usage, with all the ease and comfort it brings, distribution centers have become more than just options for e-commerce businesses, but rather a necessity.

E-Commerce has always been a colossal platform all across the globe. Individuals of every age love to shop from different online stores available today. More than physical store hopping, online shopping has become more popular over the years due to its convenience, immediacy, and simplicity. Today, with consumers demanding and expecting fast or same-day deliveries, the e-commerce industry has no choice but to grow–and in fact, it does at such an unprecedented rate! In turn, the need for distribution centers just keeps rising and developing over time. 

Given the surge in e-commerce businesses, order fulfillment, and inventory management, distribution centers are probably the most fitting facility to accommodate a series of product orders, and here are five reasons why:

1. Distribution Centers Drive Inventory Visibility Through Order Management Systems 

Order Management Systems or OMS plays an essential role in order fulfillment, as it is considered the front-end intelligence layer, harmonizing supply and demand resourcefully. The OMS actually integrates with a lot of other systems used in warehouses, facilities, and distribution centers, and these include warehouse management systems (WMS), enterprise resource planning (ERP) solutions, and store systems. With an OMS, all objectives or goals concerning order fulfillment will intelligently manage and control all stock positions, workforce or product availability, and transportation costs.

The primary goal of a distribution center is to store goods or products for relatively lesser periods of time as compared to warehouses. In such a short period of time, e-commerce businesses then have to ensure a seamless flow of operations, particularly order management, and what better way to do that than get a facility that does the job? Here at LS Commercial, our industrial properties are perfect for both long- and short-time storage, while also assuring clients seamless workflow.

2. Distribution Centers Are Customer-Centric

Serving as a bridge between suppliers and their customers are distribution centers, which are most commonly known to be customer-centric. Warehouse spaces are expected to store products and other goods efficiently. Meanwhile, distribution centers are assumed to meet customer requirements efficiently. E-commerce businesses that have fully-equipped and functioning distribution centers are believed to generate higher profit than those who do not!

3. Distribution Centers Are Versatile

Constantly adjusting and scaling your order fulfillment duties up or down in order to meet customer demands and expectations can pose a threat to any e-commerce business in particular. More than that, it can get pretty costly to acquire more space only to meet a demand that booms seasonally. With distribution centers, you don’t have to worry about these challenges anymore. 

Distribution centers are purposely made to accommodate a changing environment, depending on seasons, marketing, or promotions. Gone are the days of fearing change because distribution centers easily enable e-commerce businesses to adjust flexibly and accordingly to current customer demands.

4. Distribution Centers Are Equipped With The Latest Technology

Operations in a distribution center come off as more complex than those in warehouses, which only mean that distribution centers are equipped with more of today’s latest technology to manage and control order processing, warehouse management, inventory, and transportation, among others. As a result, e-commerce businesses have better understanding and tracking of each product or good that goes in and out of the facility.

5. Distribution Centers Promote Overall Efficiency

Distribution centers enable e-commerce businesses to perform seamless and efficient operations. Unlike other facilities, distribution centers have the capability to pick your products from rack and shelves, pack them individually, and ship to corresponding customers at a breakneck pace. Not only did you get to save money and time, but you also accelerate customer experience by delivering more than what is expected of you.

Looking for the perfect distribution center that can cater to all your needs? Check out our properties or contact us for more information.