After driving an old, beat-up car for years, I finally made the decision to upgrade my transportation. I had set aside a little money every month to use as a down payment, and I was ready to make a new car my own. I searched loads of car dealerships in my area, but one business stood out to me in particular. The salespeople were kind and not pushy, and they had a reputation for fair deals. I worked with them to find the right car, and the paperwork was a breeze. This blog is all about upgrading your transportation, and why you shouldn't be afraid to take the plunge.
Upgrading My Transportation
What Businesses Need To Know About The IFS Model
Lauri Kivela
Inventory fulfillment services help companies to store, handle, and ship their products. Online stores that sell physical products tend to be the primary users of IFS. Rather than holding products in their own warehouses and handling shipping, these companies use fulfillment centers to keep and ship their products. Here are three things you should know about this approach to fulfillment.
Benefits
The IFS model has several advantages. First, you can save money on shipping costs because the inventory fulfillment services have economies of scale and usually obtain lower shipping rates. Secondly, fulfillment centers have systems to handle lots of orders quickly and accurately. Thirdly, you can save money on warehousing by using the IFS firm's facilities. Even if you need a specialized solution like temperature-controlled warehousing, there is usually a provider that can handle the job.
Example Use Case
Suppose a small business owner runs an online store that sells handmade jewelry. The company might use an inventory fulfillment service to store its jewelry at a fulfillment center. A customer orders a necklace. Subsequently, an employee at the fulfillment facility pulls the necklace from the storage area, packs it according to the store's instructions, produces a shipping label and enters the tracking data, and sends it to the customer through the chosen carrier.
The online store doesn't have to worry about storing the necklace, paying for and storing boxes and bubble wrap, or taking the shipment to the carrier. Instead, the inventory fulfillment services provider handles each step. The online store has to provide a sufficient inventory of the product to meet demand. It also has to accurately record the quantities in inventory and track them as they come out. Typically, the IFS will have an API that allows you to connect the inventory figures to your online presence.
Challenges
Unsurprisingly, there are some challenges with the IFS model. Foremost, you will give up some control over the process. Especially if the IFS company is facing heavy demand, such as during the peak of the holiday shopping season, fulfillment could slow. You won't be able to surge employees to boost the process.
Secondly, companies need to maintain sufficient inventories at the fulfillment center. Otherwise, they risk products going out of stock.
Finally, you'll need to weigh the costs and benefits of paying a third party. The IFS model usually works best for businesses with small markets or limited resources or that see brief demand surges during specific periods.
Contact an inventory fulfillment services provider to learn more.
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