Consumer buying habits have shifted drastically over the past decade. Consumers have an increased desire to receive products as soon as possible, direct to their door.
Online marketplaces, including Amazon FBA, have played a huge role in shifting customer expectations towards one-day or two-day fulfillment to their door as a standard.
There are many benefits of decreasing the time it takes for your customers to receive their product dock to the door. More companies are moving towards normalizing their product mix across strategically placed distribution centers to keep inventory closer to their key customers. The main benefits of decreasing customer lead time, by creating a national supply chain footprint include:
- Your company can compete with regional brands and execute deliveries as fast as any national player, or local small business
- Customers get what they want, faster
- JIT inventory practices become easier to manage, mitigating the risk of stock-outs or factory shutdowns
- Customers with asset equipment can pick up your product in their backyard, with their power units, saving greatly on Otherwise brokered freight in a single-DC model
- Decreased transit time, if not expedited service, offers transportation cost savings
Compete Nationally by Delivering Within 48 Hours
Many shippers find that having a presence on the West Coast East Coast and Midwest gives them the opportunity to deliver to a majority of their customers within two days. Based on the product mix, commodity type, and special handling requirements, additional facilities can be added to adhere to more sophisticated or customized supply chain solutions that place your products in the hands of your key customers as quickly as possible.
By creating a national 3rd party distribution network, modern shippers are increasing customer satisfaction, mitigating regional competition, and are shipping more like companies 10X+ their size.
Want to learn more about Amazon FBA? Read our latest blog on using a “Pre-FBA” model to lower storage costs.