Location is Key
When it comes to choosing a fulfillment center for your products and packaging, location is key. There are number of reasons why this is the case, but ultimately the goal is to make sure that your products are getting where they need to be at the best cost with the best materials AND with minimal waste.
Transportation
Transportation costs can get hefty when it comes to shipping your products:
Both inbound and outbound transportation cost is the #1 reason location matters. Consider where your customer base is located. The closer you are to your customers, the lower your outbound transportation cost. This is a no brainer, but the other consideration is inbound transportation cost. What might be a good location from a customer standpoint may not be a good location for inbound transportation.
The Local Economy
The environment in which you select your distribution center has an effect on many areas. First of all, cost of land and resources. Additionally, you must consider the local laws and taxes.
Just as in the case of labor, many cities are experiencing tight real estate markets. Fulfillment companies located in tight real estate markets may not be able to find the seasonal or expansion space they need and at a rental rates that allow them to be competitive in the market.
Storage Requirements
Different types or products require different types of environments during the supply chain process.
From hazardous materials, flammable product and food items, many companies manufacture products that have strict storage and firefighting requirements. Is the location you’ve chosen properly suited to handle your unique needs? And how will they handle the different requirements for products that require a chemical/foam system versus a water based system? Always be sure to also take any environmental concerns into consideration, are there any streams, ponds, etc. in close proximity? Asking these questions now will help you avoid disaster later.
Proximity to Your Product
No matter how big your company is, it’s important to have a close eye on the end product. Being close to where things are packaged is useful incase you need to get hands on.
It goes without saying that a fulfillment company lets you store, organize, and ship your orders more efficiently. They’ll do all the work of receiving, storing, and managing your products, and they’ll provide easy access for tracking your current stock levels.
PDA Is In Your Neighborhood
At PDA, we have owner-operated logistics centers covering all of North America. Because our owners are integrated in their community, their business, and the packaging industry as a whole, we are able to provide better outcomes for our customers.
