Let’s begin at the beginning, with a definition of wholesale. We found a good one at Google. “Wholesale is a business model where goods are sold in large quantities to retailers or other businesses, rather than directly to the end consumer. Wholesalers purchase products from manufacturers or distributors at a lower price per unit due to bulk buying and then resell them to retailers at a higher price, allowing retailers to mark up the price further for their customers. This creates a wholesale distribution chain where products move from manufacturers to wholesalers, then to retailers, and finally to consumers.”
Let’s imagine a hair shampoo manufacturer. The wholesale distributor does bulk purchasing from the manufacturer, and negotiates a low price. The wholesaler then engages in the distribution. The company receives a wholesale order, sells the ordered amount to the retailer, and the retailer negotiates the lowest possible price. The retailer buys the amount it needs, puts it on the store shelf and charges the consumer price.
Where does the wholesale fulfillment center come in? Rather than warehouse, take orders and ship the product, the wholesaler will establish a relationship with a fulfillment service. The wholesaler will have its product shipped and delivered to the B2B fulfillment service, where the product is put on the warehouse shelves waiting for ecommerce fulfillment orders. An order from a retailer comes in for a number of bottles of shampoo and the fulfillment service picks, packs and ships the product to the retailer.
What Role Does Technology Play in Wholesale Fulfillment?
Excellent technology is an absolute necessity in wholesale fulfillment. The warehouse management technology should be able to keep track of each SKU received and placed on the warehouse shelves and the inventory management technology must allow every client to follow their inventory through the process until it is delivered to the retailer.
The B2B fulfillment service has the responsibility of creating and implementing warehouse management software that records and keeps track of every client’s inventory. An excellent wholesale fulfillment service will have an ongoing record, telling the wholesaler exactly where the products are in the warehouse, what products are in the process of fulfillment, and what orders have been delivered to the retailer.
Best Practices in Wholesale Fulfillment Operations
The B2B fulfillment service uses inventory management technology to streamline order processing. A top-notch inventory management system will allow the wholesaler to log in at any time and see the orders, and the items on the shelves.
With regard to best practices in wholesale fulfillment operations, a focus on accuracy is #1. A wholesale fulfillment company will be passionate about inventory accuracy. The inventory management system, especially if it is proprietary and managed by an in-house team at the wholesale fulfillment service, will do everything necessary to enhance inventory accuracy. When a shipment arrives at the B2B fulfillment service, every item is counted. Every SKU is scanned into the system. The software knows the number and location of all of every client’s inventory. When sales are made, the system will have a record of every SKU shipped.
Challenges in Wholesale Fulfillment
International shipping can be a challenge in wholesale fulfillment as there are requirements. A wholesale fulfillment service will need to be well versed in handling international shipping. Depending on the items being shipped, there are regulations that must be followed. International shipping also requires the best and most stable packaging with the lowest dimensions.
A second challenge can be complexity. Wholesale fulfillment services must be able to manage order complexity as B2B fulfillment is complex, serving small store retailers as well as big-box retailers. Each retailer will have requirements with regard to delivery and the receiving of the products. These requirements must be recognized and carefully followed.
Strategies for Scalability
AMS Fulfillment is a mid-sized bi-coastal B2C and B2B fulfillment service with an excellent reputation and very satisfied clients and employees. The clients of AMS are able to scale their inventory based upon seasonal increases and decreases with no fees. Whether it’s more inventory or less inventory, AMS has the space and staff to accommodate the changes.
With regard to implementing integration solutions, the AMS website tells us that their ERP system integration enables automated data flow between the wholesale client and AMS. The company states that from inbound product receipts to inventory updates and order processing details, the integration solutions ensure that the client’s ERP remains in sync with their fulfillment operations.
What are the Advantages of Outsourcing Fulfillment?
There are many advantages of outsourcing fulfillment, with the topmost advantage being the technology and warehousing space of the fulfillment service. AMS Fulfillment is a full-service B2B fulfillment service as well as B2C fulfillment service. This means that everything from warehousing to customer service to returns management and much more can be efficiently handled by AMS staff. Outsourcing wholesale fulfillment allows the wholesaler to build stronger supplier relationships as there is increased efficiency and the end-retailer is satisfied. Therefore, the supplier has a steady stream of business.
Another significant advantage of outsourcing fulfillment is compliance in operations. AMS Fulfillment has been in the business for more than 20 years. As a mid-sized bi-coastal fulfillment center, AMS is very experienced in compliance with the requirements of international shipping as well as other regulations. With a wholesale fulfillment service, compliance is ensured.
Conclusion
In the world of ecommerce fulfillment, AMS Fulfillment is one of America’s top mid-size bi-coastal wholesale fulfillment services. AMS is both a B2B fulfillment service and a B2C fulfillment service. Wholesale distributors turn to AMS for accurate wholesale fulfillment because wholesale distribution has its complexities. Wholesalers turn to AMS Fulfillment as experience matters in B2B fulfillment service.
We invite wholesale distributors, looking for a reliable and experienced fulfillment service, to contact AMS Fulfillment. AMS has years of experience in ecommerce fulfillment, shipping to small retailers, big box companies and everything in between.
