Suppose you have a certain product that is doing really well…sales are skyrocketing, or you are at the point of expanding your business. The decision to purchase or manufacture larger quantities of product becomes easier when you can plunk fixed costs into your decision making tool. You won’t have to increase warehouse space to store the product, nor will you have to hire additional employees to handle the increase. Buying or manufacturing larger volumes becomes a viable option creating better prices for your suppliers…and increased margins for you. With a fulfillment company handling your order fulfillment services, you are ready for growth!
A fulfillment center could act as a consolidated purchaser if several clients sell the same product.
Purchasing power is increased and large volume discounts are attained. Again, increased margins for all involved.