Distribute Inventory
In Multiple Warehouse Locations
If you can’t keep up with one warehouse, adding more over a larger geographic area seems like a bad idea. Would it multiply your problems? Not necessarily.
There are certainly pros to keeping your inventory under one roof. But with some careful analysis and the right partner, inventory distribution might be just what your business needs.
If you’re trying to fulfill national orders (direct to consumer) D2C or B2B, you could be disappointing your customers and spending more on shipping and handling than you need to. It’s no surprise that in a recent survey, 68% of consumers prefer online shopping over other methods.
Splitting inventory into multiple fulfillment centers, also known as distributed inventory, can help you combat rising shipping costs, meet customer expectations for fast delivery, and build resilience into your supply chain.

Start the process by analyzing each product’s supply chain from material sourcing to retail partners. Many cities boast of being within a day’s drive to a large percentage of the US population. Also, you may not need to mirror the same inventory at every location or in the same quantities.
Depending on the products’ shipping modes and velocity, an east and west coast fulfillment center may be enough, and an improvement over centralized fulfillment. You may find competitors store inventory in several major cities for a faster shipping response. You can avoid national rates and take advantage of local and zonal shipping fees with shorter shipping distances.
Start with your fastest-moving inventory that could benefit from quicker fulfillment. It’s likely to break down by the old 80/20 rule. That means about 80% of sales come from 20% of the top products. Items with lower demand or value could still be fulfilled from one or fewer warehouse locations. Also consider warehouse receiving and how finished products are when they arrive. For example, it may be wise to locate fastest-moving inventory near a port so they can be stocked faster.

Inventory
Distribution
View overlapping regions and identify the best product fulfillment centers to serve the most customers.

Warehouse Location Optimization
Identify your most common destinations, typically major metropolitan areas. Locating inventory in warehouses nearby can better reach end customers and retailers.

Fast Moving
Inventory
Shipping high-demand products faster and with lower costs improves the bottom line and gives customers a reason to return.
Outsource to a 3PL for
Access to Warehouse Space
It’s difficult logistically to distribute inventory without a partner. The costs can be high to build multiple warehouse locations for a single organization. Work with a fulfillment partner with multiple 3PL locations. WSI owns and operates more than 13 million square feet of warehouse space throughout the United States. Distribute inventory quickly and at a lower cost. We offer fulfillment as a service, allowing businesses to avoid investment and operating expenses.


Benefits of Distributing Inventory to Multiple Warehouses
Working with a trusted 3PL to manage inventory and fulfillment in several locations supercharges your operations. If you’re wondering if it’s time to distribute inventory, consider these aspects:
Partner with a 3PL
to Distribute Inventory
When you’re looking for a partner to help you manage inventory and fulfillment for multiple locations, you should consider a few things.
First, look for a partner with hands-on management rather than a provider that acts as a 4PL and outsources operations. Every WSI warehouse is managed in-house, so there’s a high level of oversight and accountability to make sure your standards are met.
With a single management team over the WSI network, you have the option to share training materials, customer success teams (remote and local) and labor flexing for peaks across multiple sites. All this will happen behind the scenes, so you benefit from the power of WSI’s network.
Second, understand the technology and software your partner brings to the table. It’s what makes seamless inventory management possible. Your partner should have a solid order and warehouse management system for complete visibility and transparency for your inventory and fulfillment.
WSI uses Manahattan Active WMS, one of the top-rated products in the market, and the Enspire OMS. With these tools, we know where every item is and where it’s going.

Call the Inventory
Distribution Experts
Inventory Management and fulfillment has never been more critical or challenging. Changing consumer expectations, supply chain disruptions, labor shortages and other ongoing obstacles require a new way of looking at how you’re serving customers.
If you’re considering distributing inventory to serve customers better with lower costs, Connect with WSI to learn about our customized services, experienced team and superior technology.