One of the ways that ecommerce businesses try to prevent out-of-stock situations is by maintaining safety stock (also known as “buffer stock”) that they can use in the event of a sudden surge in demand or a production or supply chain delay.
Although keeping safety stock can be an effective strategy for combatting stockouts, it comes at a cost – as it can be expensive to store this extra inventory in warehouses for a protracted period of time.
Some 3PLs, however, offer inventory storage solutions, which enable your ecommerce business to efficiently store your inventory in the 3PL’s facilities until you need it. For example, MCF provides convenient, “pay-as-you-go” storage in Amazon’s network of fulfillment centers.
By maintaining optimal levels of safety stock in your 3PL’s storage facilities, you can be certain that – no matter what supply chain conditions and constraints you face – your ecommerce business will have enough inventory on hand to meet demand.