Multi-Warehouse eCommerce Implementation

Common Scenarios & Considerations

In regards to multi-warehouse, the most common scenario is for vendors to have different warehouses, and most often buying groups place orders for different vendors. For example, Company A sells a specific item that is part of a particular category, such as a pool heater. You can then have another vendor selling pool cleaner, then another selling pool filter replacements. These last two will likely be ordered in bulk, meaning they will need to go to a third vendor with yet another warehouse location.

Whenever you are presenting the inventory data to the buyer this is important to keep in mind. They need to have accurate information in order to fully understand the status of their order. When you present lead time for shipments, they will need to know that some items may take longer based on where exactly they have to be shipped from.

Each location should present accurate and up-to-date inventory data to the buying group in order to achieve high customer satisfaction. This is especially true as a buyer may have different shipping locations as well. If they need a specific item to arrive somewhere by a certain date, having accurate information is critical. They may even need it overnight. Some orders might need to be ground shipments, or maybe some orders are so large that they need to be sent via LTL or truckload.

Being able to coordinate all different matters of an order automatically is very important in running a smooth operation in a streamline fashion. The more accurate the information you present per location, the more confident a buyer can be in their purchasing decisions. The happier the customer, the more likely they are to buy more off your marketplace.

You want your buyers to trust the integrity of your site, meaning you need to ensure that vendors collaborate with you in gathering accurate data. They also need to comply with a set process for either drop shipment or fulfillment.

Transferring Inventory

If you’re using internal warehousing or have vendors with multiple warehouses, it’s common to transfer inventory between locations. You’ll want to consider if your eCommerce platform allows your buying group to transfer inventory or if it can notify vendors so they can transfer inventory in their systems. This is an important logistical capability that enables them to utilize their inventory optimally.

Often, there will be runs set up for a weekly, bi-monthly, or monthly basis between the different locations. If you’re able to notify for an appropriate amount of time, then those transfers will already be scheduled, and then it’s just a matter of putting the inventory onto a transfer vehicle.

In addition, it’s also common for the location information to dynamically adjust for which warehouse will be fulfilling something based on the ship-to location. As such, an important thing to think about is the ability to provide rate quotes that are accurate and that the estimated delivery time is accurate.