Supply chain management is something that every company that sells products has to deal with. Using a pick and pack warehouse is the best solution to the problem of logistics for both large and small companies. Once the products are sold those products must be delivered quickly, safely and efficiently for a company to ensure a profit on the sale.
The pick and pack technique is quite simple. A large pick and pack warehouse receives a bulk shipment of products that belong to a business that has a business relationship with the warehouse. The warehouse manager will then store the products on a pallet until they are needed. When customer orders come in through the Internet, by phone or by fax the products are picked up by warehouse workers who then pack them securely and ship them to the customer.
The savings that companies get by using a pick and pack warehouse occur at every point of the supply chain and add up to a lot of money over time. Instead of having to buy or rent a warehouse that will probably have a lot more space than the company needs a pick and pack warehouse provides just enough space for that company’s products whether they have a huge amount of products or a small amount of products. The company can save money on the cost of the products by buying in bulk and getting wholesale pricing discounts.
The company saves money during the ordering phase of the supply chain because it does not have to pay the costs of having customer service employees on site to help customers that have questions or need assistance placing an order. For one low flat per product fee the company gets great customer service for customers without a huge investment.
When it comes to the actual shipping of the items using a pick and pack warehouse can save companies a lot of money on shipping services and supplies. Instead of having an employee who doesn’t know much about shipping trying to effectively pack a product and ending up wasting materials companies can pay a low fee to get professional, well trained packers who can pack items safely and securely using a minimal amount of expensive packaging supplies. The items are then shipped with well known shipping services that give warehouses big discounts on the cost of shipping because of the huge volume of items that those warehouses ship.