What is a virtual warehouse?

Advantages and challenges of virtual warehousing for companies that sell online

When we buy online, we expect the shipment to be fast in order to receive what we have ordered in the shortest possible time. For this reason, online stores must be able to guarantee particularly fast deliveries in order to compete with the giants of e-commerce.

This is one of the reasons why virtual warehouses are becoming increasingly popular. In fact, with a virtual warehouse, supply chains work as a connected network. When an order arrives, the network is consulted to identify the best way to fulfil the order as quickly as possible, regardless of where the requested product is stored.

What is a virtual warehouse?

A virtual warehouse is software that provides a complete view of goods and materials for logistical purposes such as inventory.

Virtual storage allows inventory to be physically housed anywhere — a distribution centre, a temporary facility, the back of a store, etc. — and distributed as needed.

What are the advantages of a virtual warehouse?

Virtual warehouses allow for a major reduction in inventory management costs, even starting from low investments and allow them to improve customer satisfaction and brand reputation by being able to offer precise and rapid shipments at any time of the year (even in the most complicated periods, such as Christmas or summer).

Furthermore, the virtual warehouse has the following advantages for companies:

1. Reducing transport costs

Distribution centres can be built closer to production units, thereby reducing transport costs.

2. Decreasing safety stock

Safety stock must always be present in the management of a warehouse. However, with a virtual warehouse, the minimum stock level can be significantly reduced.

3. Real-time inventory data

Sharing inventory data in real time allows you to minimise backlogs. in tempo reale i dati d’inventario permette di minimizzare gli arretrati.

4. Lower inventory costs

Inventory costs are reduced due to easier and more reliable inventory forecasting.

5. Faster order fulfilment

This translates into offering a better service to customers due to reduced delivery times.

What are the most common challenges faced by a virtual warehouse owner?

The virtual warehouse brings a series of advantages, but also brings a series of challenges where you must be prepared to be able to manage each situation appropriately:

• you have to find the best system to manage the stock virtually
• inventory transfers between channels must be managed appropriately
• you need to have a strategy in case the required product is not readily available in specific channels
• find the right inventory configurations and appropriate warehouse locations for each specific case
• you need to be able to deal with fluctuations in inventory transfer costs between locations

Aldieri and a virtual warehouse: what we can do for you

We are constantly looking for the most effective, modern and innovative solutions to guarantee our customers flexible and streamlined warehouse management without giving up on the personalisation of processes. We manage spaces and solutions completely dedicated to the world of electronic commerce and we provide spaces to be used as virtual warehouses.

For example, even in the most critical moments and market conditions, during the typical seasonal peaks, we guarantee the continuity of our service thanks to expert and skilled staff, dedicated customer service, satellite stores and maximum flexibility.

Need a quote?

We're on the job for you 24 hours a day, 7 days a week and we can process quotes in less than 30 minutes if it's particularly urgent.

Do you need a consultation for your company? For cases that require more complex solutions, we create special working groups able to offer you the most suitable solution for your needs.

Contact us!