Blog - Fidelity Fulfilment

The Global Advantage: How Multihub Fulfilment helps your business grow

Written by Fidelity Fulfilment | Feb 9, 2024 3:30:18 PM

Multihub fulfilment is more than just a logistical term; it’s a strategic approach to handling global eCommerce orders. Unlike traditional fulfilment methods, multihub fulfilment involves partnering with a network of strategically located ‘hubs’, allowing for quicker and more cost-effective order processing.

Jump To:

  1. What is Multihub Fulfilment?
  2. Navigating Complexities of International Markets
  3. Optimising Costs and Resources
  4. Global Fulfilment Provider vs Multiple Companies
  5. Enhancing Customer Experience

 

 

Demystifying Multihub Fulfilment

 

What is Multihub Fulfilment?

Multihub fulfilment involves strategically distributing your products to fulfilment centres in key geographical locations. This allows your business to serve diverse markets efficiently. Unlike single-location fulfilment, which might lead to shipping delays and increased costs, multihub fulfilment ensures that products are stored closer to the end consumers. The result? Faster deliveries, and cost-effective shipping solutions.

How is this different from Traditional Fulfilment

To understand the benefits of multihub fulfilment, it’s essential to distinguish it from traditional fulfilment models. In traditional approaches, businesses often rely on a single centralised warehouse for storing and dispatching products. However, this model lacks the agility required for global expansion. Multihub fulfilment disrupts this norm by adopting a decentralised approach. It strategically places fulfilment centres in key regions, aligning with the geographical distribution of the target audience.

The Role in Scalability

Scalability is a critical factor for businesses aiming to expand globally. Traditional fulfilment models may struggle to cope with the surge in demand across different regions.

Multihub fulfilment, through the strategic distribution of inventory across various hubs, enables businesses to navigate the ebbs and flows of demand. This approach ensures a seamless and efficient fulfilment process, even during periods of rapid growth.

 

Navigating Complexities of International Markets

For businesses eyeing key markets in the UK, EU, and US, understanding the complexities of international commerce is essential. Multihub fulfilment streamlines this process by offering a localised approach to order processing.

  1. Adherence to Local Regulations: Multihub fulfilment recognizes and addresses the complexity of diverse shipping regulations in different regions. By strategically placing fulfilment hubs, businesses can ensure compliance with local laws, facilitating smoother operations and minimizing the risk of regulatory hurdles.
  2. Efficient Customs Procedures: Customs procedures can be a bottleneck for international expansion. Multihub fulfilment streamlines this process by decentralizing operations. Each hub can manage customs procedures more efficiently, reducing clearance times and ensuring timely delivery to end customers.
  3. Meeting Diverse Consumer Expectations: Multihub fulfilment places inventory strategically, allowing businesses to meet diverse consumer expectations effectively. Whether it’s faster shipping times, personalized packaging, or region-specific promotions, this approach enables businesses to tailor their fulfilment strategies to match the expectations of different consumer demographics.
 

Optimising Costs and Resources

An integral aspect of multihub fulfilment is its impact on cost-effectiveness. By strategically distributing inventory, businesses can significantly reduce shipping costs and fulfil orders more economically.

  1. Reduced Shipping Costs: Multihub fulfilment strategically distributes inventory, minimising shipping distances and costs. By placing products closer to end customers, businesses can capitalise on cost-effective shipping solutions.
  2. Inventory Management Savings: Centralised inventory management can result in increased operational costs and the risk of overstock or stockouts. Multihub fulfilment decentralises your inventory, allowing for more efficient management. Businesses can optimise stock levels in each hub, reducing holding costs and enhancing overall inventory control.
  3. Scalable Operations: Traditional fulfilment models may struggle to scale efficiently during periods of rapid growth. Multihub fulfilment, with its adaptability, ensures businesses can scale operations quickly. Whether dealing with a surge in demand in one region or expanding globally, this approach allows for resource optimisation without compromising performance.
  4. Faster Order Processing: Speedy order processing is not just a customer satisfaction factor but also a financial advantage. Multihub fulfilment accelerates order processing times by placing inventory strategically, resulting in faster order fulfilment. This efficiency translates to satisfied customers, repeat business, and, ultimately, a higher ROI.
 
 

Should I chose a Global Fulfilment Provider, or Multiple Companies?

 

One of the first choices you’ll face when expanding internationally is whether to opt for a fulfilment solution with a single partner, or to outsource your fulfilment to multiple companies. Here’s why a global fulfilment provider is your best option for expanding your eCommerce market:

Unified Control and Coordination

Global Fulfilment Provider: With a unified fulfilment solution, you gain centralised control over your entire network. This streamlined approach allows for seamless coordination between fulfilment centers, ensuring uniformity in operations, technology, and customer service.

Outsourcing to Multiple Partners: Opting for multiple fulfilment partners can result in fragmented control. Coordinating orders, inventory, and shipping processes across various partners can be a logistical nightmare, leading to potential delays, miscommunication, and increased complexity.

 

Consistency in Service Quality

Global Fulfilment Provider: Choosing a single company for your international orders ensures consistent service quality across all hubs. The company’s standardised processes and technologies are implemented uniformly, providing a global cohesive brand experience for your customers.

Outsourcing to Multiple Partners: Diverse fulfilment partners may operate using different systems and processes, leading to inconsistencies in service quality. Maintaining a high standard across various partners becomes challenging, potentially impacting customer satisfaction and brand reputation.

 

Cost-Efficiency

Global Fulfilment Provider: Consolidating your fulfilment needs with one company can lead to significant cost savings. Bulk negotiations, streamlined communication, and shared resources contribute to a more cost-effective solution compared to managing contracts with multiple partners.

Outsourcing to Multiple Partners: While outsourcing may provide flexibility, managing multiple contracts and relationships can incur additional administrative costs. Negotiating favourable terms with each partner individually may be less cost-effective in the long run.

 

Scalability and Flexibility:

Global Fulfilment Provider: A single company offering global fulfilment solutions provides scalability with a unified vision. As your business grows, the company can adapt its services to meet your expanding market and customer base.

Outsourcing to Multiple Partners: Scaling with multiple partners can be challenging, as each company may have different capabilities and limitations. Coordinating growth across various partners requires additional effort and may result in the inability to grow your brand quickly or effectively.

 
 

Enhancing Customer Experience Globally

Multihub fulfilment plays a crucial role in crafting an exceptional customer experience. By spreading products across fulfilment centres worldwide, businesses using multihub fulfilment can adapt their services to different cultures. It’s not just about sending a product; it’s about creating a special moment when the customer opens the box.

 

Personalised Packaging

A unified global fulfilment strategy enables businesses to incorporate those ‘small t0uches’ that create a memorable unboxing experience – such as personalised packaging, or additional marketing materials tailored to regional preferences. This adds a distinctive touch to each delivery. By aligning packaging choices with local tastes, businesses can help build a connection with customers, enhancing brand loyalty and recognition.

 

Region-Specific Promotions

Whether aligning marketing efforts with cultural events, holidays, or local trends, this approach allows for a tailored and culturally relevant marketing strategy. This not only attracts new customers but also strengthens relationships with existing ones, driving engagement and repeat business.

 

Faster Shipping Times

A swift and efficient order fulfilment process creates positive customer experiences. Customers appreciate timely deliveries, leading to increased satisfaction, repeat business, and positive reviews. The emphasis on faster shipping becomes a competitive advantage, setting businesses apart.

 
 
 

Ready to grow your business internationally? Choose Fidelity Fulfilment – your trusted global fulfilment provider. With strategically located sites in the UK, US, and EU, we’re the ideal partner to help you reach new markets.. Streamline your operations, reach customers worldwide, and experience the unmatched efficiency of our comprehensive multihub solution. Get in touch today to find out more.