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Reasons Why Your Business May Need a Distribution Warehouse This Year ?

Reasons Why Your Business May Need a Distribution Warehouse This Year

You've been running your growing business out of a small warehouse or industrial space for a few years now. With increasing demand for your products, you may be realizing that your current setup has become a bit cramped and disorganized. If getting accurate inventories or fulfilling orders in a timely manner has become more difficult recently, it could be a sign that an investment in a full-fledged distribution warehouse is necessary this year to support your company's expansion plans.

Better Organization of Inventory

Operating with limited storage and organization systems makes misplacing product inventory or important records more likely. An organized distribution warehouse environment with pallet racking, barcoding, and warehouse management software provides structure that helps prevent items from getting lost and allows for precise tracking. For any merchant that deals with a wide catalog of physical products, utilizing these organizational systems makes scaling up inventory to meet higher demand much simpler.

More Efficient Fulfillment and Shipping

Fulfilling orders with speed and accuracy is vital for any e-commerce or wholesale business model. But if your staff has to hunt down products stored in various corners of a small overflowing facility each time an order comes in, it really slows down processing times and leads to mistakes. A distribution warehouse optimized for order fulfillment will have established processes and material handling equipment like conveyors and forklifts to pick, pack, and ship orders smoothly no matter the volume. In 2021, worldwide, retail e-commerce sales amounted to approximately $4.9 trillion, and that number has only grown in 2024.

Space to Grow Your Inventory

You may have found your current building hitting maximum pallet capacity during peak sales seasons, forcing you to turn down opportunities to stock new product lines that could be profitable. A full-sized distribution warehouse provides the square footage and vertical storage potential necessary to expand your catalog of items. With infrastructure like heavy power supplies and loading docks built in, introducing light assembly or additional value-added services down the line remains an option as well.

Transitioning order fulfillment and inventory storage into a dedicated distribution warehouse this year is an investment, but it can provide the organization, efficiency, and capacity needed to drive your business growth into the future. If the lack of space or struggles with accuracy are becoming an obstacle, it's likely time to consider making the switch. Getting set up now will have you ready to scale up smoothly and meet higher demand next year. Call FulFillPlus now if you're ready to learn more about investing in distribution warehouse services.