{"id":2088,"date":"2020-01-31T16:25:00","date_gmt":"2020-01-31T16:25:00","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/3-benefits-using-more-than-one-warehouse-ecommerce-fulfillment\/"},"modified":"2025-11-27T17:23:31","modified_gmt":"2025-11-27T17:23:31","slug":"3-benefits-using-more-than-one-warehouse-ecommerce-fulfillment","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/3-benefits-using-more-than-one-warehouse-ecommerce-fulfillment\/","title":{"rendered":"What is Distributed Inventory? 3 Benefits of Using Multiple Fulfilment Centers (&amp; How to Do It)"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p><a href=\"#\">What is distributed inventory?<\/a><\/p>\n\n\n\n<p><a href=\"#\">3 reasons to distribute your inventory across multiple fulfilment centres<\/a><\/p>\n\n\n\n<p><a href=\"#\">ShipBob\u2019s technology provides data-driven inventory location recommendations<\/a><\/p>\n\n\n\n<p><a href=\"#\">Conclusion<\/a><\/p>\n\n\n\n<p><a href=\"#\">Talk to a fulfilment expert<\/a><\/p>\n<\/div>\n\n\n\n<p>When outsourcing <a href=\"https:\/\/www.shipbob.com\/blog\/order-fulfillment\/\">order fulfilment<\/a> to a <a href=\"https:\/\/www.shipbob.com\/3pl\/\">3PL<\/a>, you may think the more warehouses you use, the more complexities you encounter. The reality is using a single 3PL with multiple locations offers many advantages.<\/p>\n\n\n\n<p>When it comes to <a href=\"https:\/\/www.shipbob.com\/blog\/choose-order-fulfillment-center-location-outsourcing-3pl\/\">fulfilment centre location<\/a>, one of the most important considerations is if it\u2019s near your customers. Since your customers likely don\u2019t all reside in a single geographic region, using one fulfilment centre can make it nearly impossible to efficiently reach the majority of people who buy from you.<\/p>\n\n\n\n<p>Instead, using <a href=\"https:\/\/resources.shipbob.com\/the-distributed-inventory-strategy\">distributed inventory<\/a> means each time an order is placed on your store, the <a href=\"https:\/\/www.shipbob.com\/blog\/distribution-center\/\">distribution centre<\/a> closest to that customer will <a href=\"https:\/\/www.shipbob.com\/blog\/why-your-ecommerce-store-automatically-send-orders-fulfillment-warehouse\/\">automatically fulfil the order<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-embed-handler wp-block-embed-embed-handler wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"How &amp; Why To Distribute Inventory\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/oiM38TSC1zg?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-distributed-inventory\">What is distributed inventory?<\/h2>\n\n\n\n<p><span>Distributed inventory is the splitting of physical goods across different fulfilment centres that are strategically chosen<\/span><span> to keep inventory closer to the end customer. This way, it is nearby when it\u2019s ready to be shipped to achieve a lower transit time and cheaper shipping costs.<\/span><a id=\"learn\"><br><\/a><\/p>\n\n\n\n<p>Instead of using a single fulfilment centre and <a href=\"https:\/\/www.shipbob.com\/blog\/centralized-inventory\/\">centralising inventory<\/a>, distributed inventory lets a merchant leverage the locations that are most optimal for the business, enabling each order to be routed to and shipped from the closest fulfilment centre.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-reasons-to-distribute-your-inventory-across-multiple-fulfillment-centers\">3 reasons to distribute your inventory across multiple fulfilment centres<\/h2>\n\n\n\n<p>Learn the top benefits of splitting your product quantities into <a href=\"https:\/\/www.shipbob.com\/blog\/differences-warehouse-fulfillment-center\/\">fulfilment warehouses<\/a> in different regions (and how to know which locations are the best for your brand). Note: While you can do this with an <a href=\"https:\/\/www.shipbob.com\/blog\/the-downside-of-on-demand-warehousing\/\">on-demand warehousing<\/a> solution, there are many risks. A professional fulfilment company that actually runs their own fulfilment centres is best.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-spread-risk-in-case-of-emergencies\">1. Spread risk in case of emergencies<\/h3>\n\n\n\n<p>Splitting inventory across warehouses helps you be prepared and have options in the event that your orders can\u2019t leave a particular fulfilment centre. A common example of a <a href=\"https:\/\/www.shipbob.com\/blog\/delivery-exception\/\">delivery exception<\/a> is bad weather that delays an order.<\/p>\n\n\n\n<p>There are many catastrophes and natural disasters that prevent shipping couriers from making it to the fulfilment centre or cause delays while in transit. At some point, a flood, wildfire, hurricane, earthquake, snow storm, or other force in nature will likely impact some of your orders.<\/p>\n\n\n\n<p>Though much less likely, there are possibilities of other disasters that affect what\u2019s inside a warehouse, such as an electrical fire. When you split your inventory across geographic areas, you will have backup inventory in other locations. Whether to prevent delays or lost stock, it can be better to be safe than sorry.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cShipBob has been a great ally as they have fulfilment centres all over the US, facilitating a 2-3 day delivery time for any customer in the US. This is helpful especially when weather challenges happen; being able to have different locations to ship from allows for a more seamless supply chain.\u201d<\/em><\/p>\n\n\n\n<p>Andrea Lisbona, Founder &amp; CEO of <a class=\"ProsemirrorEditor-link\" href=\"https:\/\/www.shipbob.com\/blog\/touchland\/\">Touchland<\/a><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-drive-down-shipping-costs\">2. Drive down shipping costs<\/h3>\n\n\n\n<p>While you may need to make a greater initial investment to purchase more inventory or ship units to additional locations than you would with only one fulfilment centre, there are cost savings to be realized elsewhere.<\/p>\n\n\n\n<p>When you ship from only one warehouse, it can take a long time to reach your end customer. With today\u2019s standard and expectation of two-day shipping, a longer time in transit can prevent your customers from buying from you in the first place or making a repeat purchase. Additionally, high shipping costs are one of the <a href=\"https:\/\/www.shipbob.com\/blog\/cart-abandonment\/\">top reasons for shopping cart abandonment<\/a>.<\/p>\n\n\n\n<p>Storing inventory closer to your customers helps <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/fulfillment-costs\/\">lower shipping costs<\/a>, because orders will travel a shorter distance. It is almost always less expensive to ship an order 30 miles than 3,000 miles. Of course, having access to a 3PL\u2019s network of <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/\">ecommerce fulfilment<\/a> centres lets you use multiple facilities without paying for the infrastructure, staff, and equipment yourself.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWith ShipBob, we have the option to use more of their warehouses to further reduce shipping costs. Because they have a lot of people to handle our orders and additional warehouses we can expand into, we can scale up with ease as we continue to grow quickly. If we ran our own warehouse, it would be much harder to hire people and we\u2019d inevitably outgrow the space.\u201d<\/em><\/p>\n\n\n\n<p>Oded Harth, CEO &amp; Co-Founder of <a href=\"https:\/\/www.shipbob.com\/blog\/mdacne\/\">MDacne<\/a><\/p>\n<\/blockquote>\n\n\n\n<p>Of course, if your order volume is on the low side, it may not make sense for you to distribute your inventory. You must consider whether <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-warehousing\/\">ecommerce warehousing<\/a> costs, transportation costs to <a href=\"https:\/\/www.shipbob.com\/blog\/logistics-centers\/\">logistics centres<\/a>, and the number of <a href=\"https:\/\/www.shipbob.com\/blog\/how-to-find-sku-number\/\">SKUs<\/a> you have would be offset by the reduced shipping costs and potential additional revenue made by offering better shipping options for more addresses.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-get-your-orders-shipped-to-customers-faster\">3. Get your orders shipped to customers faster<\/h3>\n\n\n\n<p>With customers today <a href=\"https:\/\/www.shipbob.com\/blog\/guide-offering-affordable-2-day-shipping\/\">expecting a two-day turnaround for their orders<\/a> (and many accepting nothing longer), using multiple <a href=\"https:\/\/www.shipbob.com\/blog\/warehousing\/\">warehousing and storage<\/a> locations lets you significantly reduce delivery times.<\/p>\n\n\n\n<p>If you use fulfilment centres in hubs like Chicago or Los Angeles, you can reach a large amount of the population in different areas of the country. It is easy to get the package <a href=\"https:\/\/www.shipbob.com\/blog\/same-day-shipping-delivery\/\">delivered the same day<\/a> to people who live in these cities, because the inventory is already close by. If your inventory is only in one of those cities, say, Los Angeles, then imagine how long it will take a package to arrive to your customers who live on the East Coast.<\/p>\n\n\n\n<p>Ultimately, the quicker a customer gets their order, the happier they are. If you can offer a quick turnaround time \u2013 without using <a href=\"https:\/\/www.shipbob.com\/blog\/expedited-shipping\/\">expedited shipping<\/a> and it costing an arm and leg \u2013 you will likely see a surge in sales.<\/p>\n\n\n\n<p><a id=\"3pls\"><br><\/a>\n[Download: <a href=\"https:\/\/resources.shipbob.com\/shipbob-2-day-express-booklet\">ShipBob\u2019s 2-Day Express Shipping: How to Drive Revenue Through Ecommerce Fulfilment<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-shipbob-s-technology-provides-data-driven-inventory-location-recommendations\">ShipBob\u2019s technology provides data-driven inventory location recommendations<\/h2>\n\n\n\n<p>If you partner with ShipBob for fulfilment and <a href=\"https:\/\/www.shipbob.com\/blog\/distribution-partner\/\">distribution<\/a>, our free proprietary technology and <a href=\"https:\/\/www.shipbob.com\/blog\/new-free-analytics-reporting-tool\/\">analytics tool<\/a> use your historical order data to display your current shipping speeds and costs, and compare those to what they would be if you used different fulfilment centres in ShipBob\u2019s network.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-embed-handler wp-block-embed-embed-handler wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"ShipBob Fulfillment Center Guided Tour - 3D 360\u00b0 VR Video\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/YdTbM4XlizY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>In the example below, a merchant is storing inventory and shipping orders exclusively out of our Moreno Valley, California fulfilment centre (MV) just outside of Los Angeles. This location is great for local customers, but the average <a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/shipping-zones\/\">shipping zone<\/a> is on the high side at 6.38 as seen on the chart to the left.<\/p>\n\n\n\n<p>If the merchant instead stored inventory in additional locations of Chicago, Illinois (CHI) and Bethlehem, Pennsylvania (PA) for a total of three locations, the average shipping zone would be reduced to 3.58 as seen on the chart to the right. Instead of 100% of orders being fulfilled out of Moreno Valley, California, only 28% would be, as the remaining 72% of orders would be fulfilled from the other locations that are closer to the end customer.<\/p>\n\n\n\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-6049\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/ShipBob-Inventory-Distribution-Tool.png?w=1280px\" alt=\"ShipBob Inventory Distribution Tool\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/ShipBob-Inventory-Distribution-Tool.png?w=700px 650w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/ShipBob-Inventory-Distribution-Tool.png?w=860px 768w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/ShipBob-Inventory-Distribution-Tool.png?w=1180px 1080w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/ShipBob-Inventory-Distribution-Tool.png?w=1400px 1280w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/ShipBob-Inventory-Distribution-Tool.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/p>\n\n\n\n<p>Additionally, the average fulfilment or shipping cost would go from $8.43 per order to $8.13 per order. While $0.30 may not sound like a lot, for a merchant with an average order volume of 5,000 orders per month, that is an extra $1,5000 they are paying per month, or $18,000 per year. And if they continue to grow, that number will only go up.<\/p>\n\n\n\n<p>With this tool, you can visualise your ideal inventory distribution and toggle between different locations to see which make the most sense for your business. As you can see on the map below (using the same example from above), the majority of orders are actually on the East Coast and not on the West Coast of the United States, which explains why costs and transit times are higher than they could be.<\/p>\n\n\n\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-6050\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Customer-order-map.png?w=1280px\" alt=\"Customer order map\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Customer-order-map.png?w=700px 650w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Customer-order-map.png?w=860px 768w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Customer-order-map.png?w=1180px 1080w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Customer-order-map.png?w=1400px 1280w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Customer-order-map.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cStoring inventory in different regions is key to reducing costs and transit times. From expanding into a second ShipBob fulfilment centre, we are excited to be able to offer 65% of our customers with 2-day ground shipping, up from 32% by only having a single West Coast facility. Soon, this will be 100%. Not only is this better for our customers but we also gain a 13% savings to our bottom line.\u201d<\/em><\/p>\n\n\n\n<p>Pablo Gabatto, Business Operations Manager at <a href=\"https:\/\/www.shipbob.com\/blog\/ample-foods\/\">Ample Foods<\/a><\/p>\n<\/blockquote>\n\n\n\n<p>ShipBob helps brands at every stage of growth. Many get started in just one fulfilment centre and revaluate their strategy as they grow. They can continue to expand into additional locations as they please, always choosing which ones they prefer. The <a href=\"https:\/\/www.shipbob.com\/blog\/distribution-metrics\/\">distribution metrics<\/a> ShipBob provides are always up-to-date to help you make the most intelligent decisions.<\/p>\n\n\n\n<p>Upon embracing a distributed inventory model, many businesses use a robust&nbsp;<a href=\"https:\/\/www.shipbob.com\/warehouse-management\/warehouse-management-system-wms\/\">warehouse management system<\/a> (WMS) to streamline the tracking and managing of stock across various locations, ensuring accuracy and efficiency as they scale.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\">Conclusion<\/h2>\n\n\n\n<p>To be successful in the competitive ecommerce space, many online brands <a href=\"https:\/\/www.shipbob.com\/blog\/distributed-warehousing\/\">distribute their inventory to multiple warehouses<\/a>. A good <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/outsourced-fulfillment\/\">outsourced order fulfilment provider<\/a> can help you determine the optimal fulfilment centre locations for your business based on your customers\u2019 addresses. Want a deep dive on distributed inventory? Watch a video recording of the webinar, \u201c<a href=\"https:\/\/resources.shipbob.com\/the-distributed-inventory-strategy\">How to Transform Your Logistics Using Distributed Inventory<\/a>.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-talk-to-a-fulfillment-expert\">Talk to a fulfilment expert<\/h2>\n\n\n\n<p>ShipBob is the premier <a href=\"https:\/\/www.shipbob.com\/blog\/retail-fulfillment\/\">retail fulfilment<\/a> partner for direct-to-consumer brands. With a robust network of fulfilment centres, best-in-class technology, and advanced analytics that help you make better decisions, we help you <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-optimization\/\">optimise your supply chain<\/a> while providing the best customer experience. Learn why thousands of ecommerce brands work with ShipBob today.<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\"><strong>Request a Quote from ShipBob<\/strong><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn some of the top advantages of splitting your inventory across a 3PL provider&#8217;s network of warehouses when you outsource fulfilment and how to do it.<\/p>\n","protected":false},"author":110,"featured_media":25592,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[2,5,7,8,11,13,15],"class_list":["post-2088","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-3pl-third-party-logistics","blogcategories-distribution","blogcategories-fulfillment","blogcategories-inventory","blogcategories-order-management","blogcategories-shipping","blogcategories-warehouse-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Inventory Distribution: 3 Benefits of Using Multiple Fulfillment Centers<\/title>\n<meta name=\"description\" content=\"Learn some of the top advantages of splitting your inventory across a 3PL provider&#039;s network of warehouses when you outsource fulfillment and how to do it.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shipbob.com\/au\/blog\/3-benefits-using-more-than-one-warehouse-ecommerce-fulfillment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is Distributed Inventory? 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