The best insurance cover, well, ever

We secured insurance rates with our global partners and pass off the peace of mind to you and your customers. The most competitive insurance rates in e-commerce that also offset our planet’s carbon. Win, win.

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We’re not chefs, but we know how to bake it in.

Get every order fully insured with our global carriers. Set your coverage rate automatically baked into the cost, activate it, and watch those orders fly in.

All claims handled in Swap dashboard
Raise a claim with a couple of clicks, all from your easy to use dashboard. One partner. All your operations solutions. Who said life could be this easy?

Door-to-door coverage

We’ve got our eyes on your items at all times, which means you'll never again have to refund a customer because of a lost, damaged, or missing package.

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Warehouse Consultants

So you’re thinking about opening a new warehouse? Or optimizing your current warehouse operations? Either way, we have you covered.

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Introduction
Logistics & Inventory
Costs, Data, & Customer Experience
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We’ve outlined below some considerations for brands looking to expand to new warehouses or improve their current ones. Our team has 20+ years of experience in logistics for retail businesses of all shapes and sizes. We’re offering a free 30-minute consultation with our team of warehouse consultants.
Whether you’re opening your first warehouse, fifth or working with a 3PL, there are a lot of considerations to be conscious of. On the plus side, you can reduce shipping times and costs, increase customer lifetime value for regional customers, and reduce your carbon footprint with less distance required for packages.

We’ve laid out ten considerations for you to keep in mind when expanding your warehouse network:
Logistics & Inventory
Geographic Location
• Customer Proximity: Warehouses should be strategically located to minimize shipping times and costs. Analyze where most of your customers are and place warehouses near those regions.
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• Shipping Carriers: Ensure warehouses are near major transportation hubs (airports, seaports, railways) or regions served by reliable and cost-effective shipping carriers.
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• International Reach: If expanding globally, consider setting up warehouses in critical international regions to simplify customs and reduce shipping delays or enable a partner like Swap Global to help you sell into new markets effectively.
Inventory Management
• Stock Distribution: Brands must decide how to allocate inventory across multiple warehouses. Tools like demand forecasting and inventory management software can help ensure optimal stock levels at each location.
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• Centralised vs. Decentralised Inventory: Some brands may keep centralised stock and ship from one main warehouse, while others distribute inventory across multiple locations to reduce delivery times.
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• Inventory Tracking: Implement robust systems for tracking inventory in real-time across warehouses to avoid overselling or stockouts.
Technology & Automation
• Warehouse Management System (WMS): Use a robust WMS to manage and track inventory, automate fulfilment processes, and synchronise data across multiple locations.Ensure your warehouse systems are integrated with your eCommerce platform to provide real-time inventory updates and smooth fulfillment.
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• Integration with eCommerce Platform: Ensure your warehouse systems are integrated with your eCommerce platform to provide real-time inventory updates and smooth fulfillment.
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• Automation: Automated picking, packing, and shipping can reduce labour costs and improve efficiency. Depending on the warehouse size, consider robots, conveyor systems, or automated storage systems.
Shipping & Fulfilment Optimization
• Zone Shipping: Implement zone-based shipping strategies, where customers are assigned to the nearest warehouse for faster, cheaper delivery.
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• Fulfilment Costs: Shipping from multiple warehouses can lower shipping costs but also increase operational expenses due to maintaining multiple facilities. Analyse the trade-offs.
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• Returns Management: Consider how to handle product returns across warehouses. Should customers return products to the nearest warehouse or send everything back to a central location?
Logistics and Transportation
• Cross-Docking: Some brands may use a cross-docking strategy to transfer goods directly from receiving to shipping with minimal storage to speed up distribution.
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• Last-Mile Delivery: Consider partnerships with last-mile delivery companies to improve the final leg of delivery.Reverse Logistics: Plan for efficient return and restocking processes, especially if handling international returns.
Costs, Data & Customer Experience
Staffing and Training
• Labour Availability: Location matters not only for logistics but also for hiring qualified warehouse staff. Consider regions where labour is skilled and available at competitive rates.
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• Training: With multiple warehouses, standardised facility training is essential for consistent operations and service levels.
Cost Considerations
• Operational Costs: Each warehouse will have costs associated with rent, staffing, utilities, and technology. Forecast these expenses and balance them against potential savings from faster delivery and reduced shipping costs.
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• Tax and Regulatory Implications: Different regions may have different tax regulations. If operating across state or national borders, be aware of sales tax obligations, customs, and duties.
Data and Analytics
• Demand Forecasting: Use data analytics to predict demand in different regions and adjust inventory levels accordingly.
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• Performance Metrics: Track key performance indicators (KPIs) such as order accuracy, shipping time, and customer satisfaction to assess the effectiveness of multiple warehouses.
Scalability
• Growth Potential: Ensure the warehouse locations and infrastructure are scalable as your business grows. Can these warehouses handle increased order volumes during peak seasons?
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• Long-term Planning: Consider future expansion. Will these warehouses serve your needs as you expand into new markets or add new product lines?
Customer Experience
• Faster Shipping: One primary reason for opening multiple warehouses is to enhance customer experience by reducing delivery times. Ensure the locations achieve this goal.
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• Consistency: Customers expect the same level of service regardless of where their order is fulfilled. Implement procedures to ensure consistent fulfilment standards across all warehouses.
By carefully considering these factors, eCommerce brands can build a warehouse strategy that optimizes operations, cuts costs, and improves customer satisfaction while scaling efficiently.

Stay on top of the flock.

Subscribe to get the latest from the ecommerce operating system that reduces your tech stack to one login.

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