Being centrally located in the US Midwest, while leveraging relatively lower overhead costs for long term large-scale warehousing and fulfillment, are key aspects of the VHC Brands strategy to maintain and build relationships with well-known, brand-name US retailers.
In today’s business environment, total cost factors can help drive success or can lead to failure. These cost factors now outweigh traditional measures such as location, as shoppers increasingly opt for online shopping and fast delivery to their home or business.
The new era of Drop Ship E-commerce Shopping has created opportunities unlike past, population-located retail clusters and near-by support services. Retailers must now respond to the location of their individual shoppers across the country, rather than expect those shoppers to visit and purchase in their retail store locations.
Likewise, continued advances in the scale of e-commerce, and the scale of freight/logistics networks, has rendered many traditional measures of location value meaningless. Wherever a shopper happens to be using their phone or tablet or PC, and wherever Amazon and others can verify a valid delivery address, be it rural, suburban, or urban, is now a viable location to complete a transaction.
As retailers scale beyond and into what was traditionally the core business of 3rd party shippers such as UPS and FedEx, USPS, DHL and others, these retailers are able to demand systematic, nationwide, and higher levels of operational efficiency from their top vendors. The new metrics of fulfillment operational excellence outweigh regional or national location issues with regard to the vendor’s delivery capability. The new retail model is “pick up anywhere, deliver anywhere.” Add to this metric: “And do it very swiftly.”
Vendors that support these retailers and respond timely, are considered more valuable partners than those vendors who may also offer great product, but do not support the product with strong operational metrics in inventory, fulfillment, and speed of completion of orders.
To support a robust e-commerce fulfillment strategy, VHC has partnered with Meadows Business Park to strategically plan a series of long-term high-volume Fulfillment Centers within the park. VHC expects its Kirbyville/Meadows Business Park location(s) to employ 50+ year-round, full time team members in 2019 and 2020.