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Understanding WMS for 3PLs and Multi-Client Fulfillment

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Imagine a colossal warehouse bustling with activity, full of synchronized movement, where goods arrive from various vendors, are stored efficiently, picked accurately, and shipped on time. Amidst the ceaseless flux of goods, from exotic spices to the latest tech gadgets, lies the beating heart of this operation—a Warehouse Management System (WMS). This digital maestro, unseen yet instrumental, ensures everything runs like clockwork. Particularly for Third-Party Logistics (3PL) providers and operations managing multi-client fulfillment, a WMS is a strategic linchpin that turns chaos into order.

What is WMS for 3PLs and Multi-Client Fulfillment?

A Warehouse Management System (WMS) for Third-Party Logistics (3PLs) and multi-client fulfillment is a powerful software solution that optimizes warehouse operations by offering detailed visibility and control over inventory, labor and space utilization. Think of it as a control tower for your warehouse operations, allowing you to track inventory in real-time, automate complex processes, and manage tasks effectively. In the context of 3PLs and multi-client fulfillment, WMS goes a step further, handling the unique demands and logistical complexity of managing numerous clients with diverse requirements simultaneously.

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The Need for a WMS in 3PL Operations

Managing a 3PL operation without a robust WMS is like navigating an ocean without a compass—nearly impossible. WMS is vital for 3PL operations because it brings a method to the madness of managing varied inventory for multiple clients. It enhances inventory accuracy, reduces order fulfillment errors, and expedites delivery times, all crucial for maintaining client satisfaction and competitiveness in the logistics industry.

The Move to 'Hybrid' Warehousing

The logistics landscape is undergoing a transformative shift towards 'hybrid' warehousing, a blend of traditional warehousing practices with more flexible, on-demand models. The driving force behind this change is the evolving consumer demand and the surge in eCommerce. To thrive in this new era, 3PLs must offer flexible, efficient, and cost-effective solutions to their clients. This is where a WMS shines. By integrating advanced functionalities like artificial intelligence and machine learning, a WMS for hybrid warehousing can streamline operations, forecast demand, optimize labor, and manage complex inventory requirements, enabling 3PLs to stay agile and responsive.

How Does a WMS Help a 3PL Business Win New Clients?

A robust WMS is a game-changer. It can help 3PL businesses attract new clients by showcasing operational efficiency, transparency, and superior service delivery. An advanced WMS demonstrates to potential clients that your business can manage inventory accurately, fulfill orders efficiently, and adapt to sudden demand changes swiftly. And, a WMS provides real-time data, analytics, and reports that enhance visibility into operations, a feature that's highly appealing to clients who want complete control and insight into their supply chain.

Key Features of a Good WMS for 3PLs and Multi-Client Fulfillment

Inventory Visibility

A quality WMS system offers comprehensive inventory management. This is particularly crucial for 3PLs and multi-client fulfillment businesses, where managing goods from different clients, products ranging from regular items to hazmat and cold storage, require meticulous control. High inventory visibility in WMS software enables easy tracking of products, whether it's a pallet of apples in cold storage or a container of electronics. The system should support the FEFO (First Expired, First Out) method, allowing businesses to manage perishable goods effectively.

Efficient Order Management

The ideal Warehouse Management System will integrate seamlessly with marketplaces and shopping carts, facilitating omnichannel order fulfillment. The system should support a seamless returns process, handle multiple orders simultaneously, and provide real-time updates on order status. The aim is to bolster customer service by ensuring timely, accurate order fulfillment, which in turn drives customer satisfaction and repeat business.

Real-Time Data and Transparency

In the world of 3PLs and multi-client fulfillment, data is king. A powerful WMS software will provide real-time data, offering invaluable insights into warehouse operations. This transparency extends to everything from inventory levels, staff productivity, order status, and returns. Logistics providers can use these insights to fine-tune processes, identify bottlenecks, and ensure maximum operational efficiency.

Scalability and Customization

Every warehouse, whether in the heart of a bustling city or the country's outskirts, has unique needs. The best WMS solutions offer scalability and customization options to match the unique requirements of different businesses. Whether you're a 3PL catering to varied industries or a business managing multiple warehouses, your WMS should scale with your needs. It should also offer customization options, whether it's workflows, reporting, or user interface, ensuring the system aligns with your operational processes and the market dynamics.

Notable WMS Solutions for 3PLs

ShipHero: A High Performing WMS Which Simplifies eCommerce

ShipHero is revolutionizing the world of 3PL logistics with its powerful and highly efficient warehouse management system (WMS). As a leading provider in the industry, ShipHero boasts features designed to optimize your supply chain operations, from real-time inventory management, advanced order routing, automation rules, to omnichannel support. The user-friendly interface and integrations with popular eCommerce platforms are a testament to ShipHero's dedication to making logistics more manageable for businesses of all sizes. Whether you're a small startup or a large corporation, ShipHero's scalable solution is tailor-made to meet the diverse needs of 3PLs.

OrderFlow: A Cloud-Based Platform for High-Volume Fulfillment Operations

OrderFlow is a cloud-based WMS software solution designed to enhance productivity and efficiency in high-volume fulfillment operations. One of the platform's key strengths is its robust integration functionality, allowing seamless access to data from various touchpoints in real-time. Its reporting tools offer actionable insights and transparency to aid in decision-making. A notable feature is the detailed invoicing module, providing accuracy in billing, crucial for the financial health of any business. Interested parties can request a demo to experience its functionality firsthand.

Extensiv: Enabling Omnichannel Fulfillment for 3PLs & Brands

Extensiv is a software platform that addresses the needs of 3PLs and brands for omnichannel fulfillment. Its technology provides comprehensive reporting and data integration options, which ensure transparency and accuracy. The platform is known for its easy-to-use nature, even as it provides extensive functionality. Prospective users can take advantage of a demo to experience the efficiency and productivity that Extensiv can bring to their operations.

HighJump: A Premier 3PL Software Solution

HighJump (now Korber) is a well-established player in the 3PL software solutions arena. This platform boasts a variety of modules and tools designed to address the specific challenges faced by 3PLs. From billing and invoicing modules to comprehensive reporting tools, HighJump provides all the necessary elements for success. The platform focuses on ROI, offering cost-efficient solutions designed to boost the bottom line. HighJump's logo is a familiar one in the industry, symbolizing its long-standing reputation for quality service.

Logiwa: Transforming Logistics Operations with Advanced Analytics

Logiwa is a WMS platform that differentiates itself through its advanced analytics and reporting tools. Designed for high-volume D2C and B2C fulfillment 3PLs, the software offers a host of modules that cater to the needs of such operations. The Logiwa experience includes options for customizing functionality based on individual business requirements. Its robust integration capabilities make it a top choice for businesses seeking a solution that can adapt to their workflows. Logiwa also provides periodic updates, ensuring its users always have the most up-to-date tools at their fingertips.

Overcoming Challenges of Multi-Client Fulfillment for eCommerce

Customized Operations for Each Client

Each client brings a unique set of requirements, and the one-size-fits-all approach doesn't work in multi-client fulfillment. A 3PL WMS offers functionalities that allow operations to be customized for each client, ensuring accuracy and customer satisfaction. It’s all about having options and the flexibility to adapt to client needs.

Efficient Inventory Management

Inventory management can be a tricky area in multi-client fulfillment. Efficient handling of storage locations and ensuring optimal use of resources are paramount. A 3PL software offers sophisticated inventory management capabilities, providing visibility and traceability for everything from high-demand items to slow movers.

Accurate Order Fulfillment

In the world of eCommerce, errors in order fulfillment can cost not just money, but customer loyalty. A good 3PL WMS will reduce such errors, streamline order fulfillment, and integrate with shopping carts to ensure accurate, efficient fulfillment for all clients, regardless of the volume or complexity of orders.

Streamlining Warehouse Operations

Streamlining warehouse operations is another significant advantage of implementing a 3PL WMS. From labor allocation to real-time updates, a WMS brings a level of efficiency and transparency that boosts productivity and cost-effectiveness.

Integration with eCommerce Platforms

Integration with various eCommerce platforms is a key functionality of good 3PL software. This allows for real-time information exchange, ensuring inventory levels are accurate across all sales channels and order fulfillment is efficient.

Dealing with High-Volume Returns

Handling high-volume returns is a part of the eCommerce reality. A 3PL WMS can automate and streamline this process, minimizing costs and improving customer service levels.

Real-Time Visibility and Reporting

3PL WMS offers real-time visibility and comprehensive reporting capabilities, providing critical insights for decision making. This level of transparency is vital for maintaining trust with clients and ensuring operations run smoothly.

Exception Management

Exception management is another area where 3PL software shines. It can quickly identify and address anomalies, preventing minor issues from escalating into major problems.

Implementing Advanced Technologies

Implementing advanced technologies like AI and machine learning is made easier with a 3PL WMS. These technologies can optimize various aspects of multi-client fulfillment, from demand forecasting to labor allocation.

Ensuring Scalability and Flexibility

Scalability and flexibility are crucial in the ever-evolving eCommerce landscape. A 3PL WMS can scale to meet the growth of your business and offers the flexibility to adapt to changing market dynamics, ensuring you're always one step ahead.

Things to Consider When Choosing a 3PL Warehouse Management System

Customization

Every business is unique, and your WMS should reflect that. Look for a system that offers customizable functionalities to meet your specific requirements. This might include personalized workflows, adjustable interfaces, or tailored reporting tools.

Scalability

Your 3PL software should be able to accommodate your business's growth. Scalability ensures that as your operations expand — whether in terms of volume, locations, or complexity — your WMS can easily adapt to the increasing demand.

Integration Capabilities

A WMS that can seamlessly integrate with other systems is a major advantage. This includes your eCommerce platforms, shopping carts, and other logistical or financial software. This not only enhances accuracy but also optimizes overall efficiency.

Real-time Inventory Visibility

In the dynamic world of eCommerce, real-time inventory visibility is critical. A quality WMS will provide a real-time view of your inventory across all storage areas, ensuring efficient management and transparency

Advanced Analytics and Reporting

Data-driven decisions are key to success in today's business landscape. Look for a WMS with advanced analytics and comprehensive reporting capabilities, providing insights to improve operations, forecast demand, and reduce errors.

Ease of Use

A user-friendly WMS can significantly reduce training time and increase productivity. Make sure the system is intuitive and easy to use, with a user experience design that is approachable for all levels of users.

Client Portals

Client portals are an excellent way to provide your customers with real-time visibility into their inventory and orders. This transparency boosts customer satisfaction and trust in your services.

Billing Capabilities

Efficient and accurate billing is critical for any business. Choose a WMS with comprehensive billing capabilities to ensure accurate invoicing and improved cost control.

Support and Service

Ensure the software provider offers robust support and service. From initial implementation to ongoing updates and troubleshooting, having a reliable support team can make all the difference.

Cost

Finally, consider the cost of the WMS. While it’s an investment, you need to ensure that the cost aligns with your budget and the ROI justifies the expense.

How WMS Impacts Your Warehouse Operations

Implementing a WMS can have a profound impact on your warehouse operations. It optimizes various processes, from order fulfillment to inventory management, enhancing overall productivity. Real-time inventory visibility reduces the chances of stockouts or overstocking, while advanced analytics help in informed decision-making. The integration capabilities allow for seamless data exchange, reducing errors and ensuring accuracy. With the support of a WMS, your warehouse can work like a well-oiled machine, ready to meet the ever-evolving demands of the eCommerce landscape.

Key Takeaways

A robust Warehouse Management System (WMS) tailored for 3PL and multi-client fulfillment is no longer a luxury—it's a necessity. This technology, with its ability to offer real-time inventory visibility, seamless integration, scalability, and customized functionalities, provides businesses with the tools they need to exceed customer expectations and stay competitive. In the end, the choice of a WMS could be the catalyst that propels a business to new heights, just as the right technology choice enabled the transformation of warehouses from simple storage spaces to complex, multi-faceted operations centers that we see today.

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Frequently Asked Questions

What is the Fulfillment Process of 3PL?

3PL fulfillment involves storing products, processing orders, packaging goods, and shipping them to customers on behalf of another business. It includes receiving goods at the warehouse, storing them efficiently, managing inventory, picking and packing orders when a customer makes a purchase, and ensuring the product reaches the customer in a timely manner. Some 3PLs also manage returns and handle customer service related to delivery.

What are the Four Types of 3PL?

The four types of 3PL providers are:

  1. Standard 3PL Provider
  2. Service Developer
  3. The Customer Adapter
  4. The Customer Developer

What is the Difference Between Fulfillment and 3PL?

Fulfillment generally refers to the process of receiving, processing, and delivering orders to customers. It's one part of the broader supply chain process. 3PL, on the other hand, refers to third-party logistics providers who can handle multiple aspects of the supply chain process, which can include fulfillment, but also encompasses other services such as warehousing, transportation, and inventory management. In other words, fulfillment is a subset of what a 3PL provider can offer.

the process

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April 2, 2024

What is a 3PL Warehouse Management System?

A 3PL Warehouse Management System (WMS) is a software solution that helps companies manage and optimize their warehouse operations. It provides a centralized platform for handling tasks such as inventory management, order fulfillment, shipping, and receiving.

What is the 3PL Warehouse Management System?

It’s an essential tool for third-party logistics providers that lets them efficiently manage their clients' warehouse operations.

A key challenge third-party logistics providers face is managing the vast amount of inventory stored in their warehouses. The 3PL Warehouse Management System addresses this challenge by providing a comprehensive set of tools and functionalities to effectively manage and control warehouse operations.

At its core, the 3PL WMS is a software application that integrates with the existing warehouse infrastructure and automates various processes like inventory management, order fulfillment, and shipping. It provides real-time visibility into inventory levels. And it helps logistics providers optimize storage space and ensure accurate stock levels.

Moreover, the 3PL WMS enables efficient order processing by automating tasks like order picking, packing, and labeling. It provides warehouse staff with detailed instructions on how to fulfill each order, and this minimizes errors while improving overall productivity.

Another key feature of the 3PL WMS is its ability to track and trace goods throughout the warehouse. By using barcode scanning or RFID technology, the system can accurately track the movement of inventory from the moment it arrives at the warehouse to the moment it leaves for delivery.

Furthermore, the 3PL WMS offers advanced reporting and analytics capabilities. They can generate reports on key performance indicators like order accuracy, on-time delivery, and inventory turnover. This helps businesses identify areas for improvement.

In addition to these core functionalities, the 3PL WMS can be customized to meet the specific needs of different industries and clients. For example, it can support temperature-controlled storage for perishable goods or provide specialized picking algorithms for eCommerce fulfillment.

In conclusion, the 3PL Warehouse Management System is a powerful tool that enables third-party logistics providers to efficiently manage their clients' warehouse operations. By automating key processes and providing real-time visibility into inventory, the system helps improve productivity, accuracy, and customer satisfaction. It’s an indispensable asset for logistics providers in today's complex and competitive business environment.

To further understand the scope and benefits of third-party logistics, explore our detailed guide on 3PL services, which highlights how these services streamline operations and enhance efficiency.

Benefits of 3PL Warehouse Management Systems

Implementing a 3PL Warehouse Management System can bring numerous benefits to a company.

Firstly, it provides real-time visibility into stock levels and locations to reduce the risk of stockouts and minimize excess inventory.

Secondly, a 3PL WMS improves order fulfillment efficiency by automating processes like order picking and packing. This leads to faster order processing times and improved customer satisfaction.

Additionally, a 3PL Warehouse Management System lets companies optimize their warehouse space utilization. By providing insights into optimal storage locations and recommending efficient picking routes, it maximizes the storage capacity and minimizes unnecessary movement.

Lastly, a 3PL WMS enhances supply chain visibility by providing real-time tracking and reporting tools. This lets companies monitor the flow of goods, identify bottlenecks, and make data-driven decisions to improve overall efficiency.

Ecommerce businesses require specialized inventory management solutions to meet the dynamic demands of online retail. Learn more about ecommerce inventory management software that complements 3PL WMS for seamless integration and enhanced efficiency.

Key Features of 3PL Warehouse Management Systems

A good 3PL Warehouse Management System offers a range of features to support warehouse operations. These features include:

  • Inventory tracking and management
  • Order management and fulfillment
  • Picking and packing optimization
  • Automated labeling and barcode scanning
  • Real-time reporting and analytics
  • Integration with other supply chain systems

Choosing the right inventory management software is crucial for optimizing warehouse operations. Discover the best inventory management software options that can seamlessly integrate with 3PL WMS to provide comprehensive inventory control.

What are 3PL WMS Requirements?

When considering a 3PL Warehouse Management System, it's important to assess the specific requirements of your business. Some key considerations include:

  • Scalability: Is the system able to handle your current needs and accommodate future growth? 
  • Integration: Can the 3PL WMS seamlessly integrate with your existing software and systems? 
  • User-friendly interface: Is the system intuitive and easy for your staff to navigate? 
  • Flexibility: Does the system support customizable workflows and configurations? 
  • Support and training: Does the vendor offer adequate support and training resources?

Real-time Visibility & Reporting Tools

A key advantage of a 3PL Warehouse Management System is real-time visibility into warehouse operations.

Companies can access up-to-date information on inventory levels, order statuses, and overall performance at any time so businesses can quickly identify and address bottlenecks.

Implementing a 3PL Warehouse Management System

Following these steps will help you carefully plan and integrate a 3PL Warehouse Management System:

  1. Assess your current warehouse processes and identify areas for improvement. 
  2. Research and select a suitable 3PL WMS solution based on your business requirements. 
  3. Collaborate with the vendor to customize the system according to your specific needs. 
  4. Train your staff on how to effectively use the new 3PL WMS. 
  5. Gradually transition operations to the new system, ensuring minimal disruption to day-to-day activities. 
  6. Regularly assess the system's performance and make necessary adjustments as your business evolves.

Things to Look for When Choosing 3PL WMS Software

When choosing a 3PL Warehouse Management System, it's important to consider the following factors:

  • Usability: Ensure the system has an intuitive interface that can be easily navigated by your staff. 
  • Scalability: Choose a system that can accommodate your current needs while also allowing for future growth. 
  • Integration: Check if the 3PL WMS can seamlessly integrate with your existing software and systems. 
  • Customizability: Assess whether the system allows for customizable workflows and configurations to suit your business processes. 
  • Vendor Support: Research the vendor's reputation and availability of support resources.

How much does a 3PL WMS Cost?

The cost of a 3PL Warehouse Management System can vary depending on factors like the size of your business, the features you want, and the vendor you choose. Some vendors offer pricing models based on the number of users or the volume of goods processed. Request quotes from different vendors and consider the long-term ROI when evaluating the cost of a 3PL WMS.

Key Takeaways

  • Improves Efficiency and Accuracy: A 3PL WMS automates various warehouse processes such as inventory management, order fulfillment, picking, packing, and shipping, leading to improved efficiency, minimized errors, and enhanced productivity. This contributes to faster order processing times and heightened customer satisfaction.
  • Enhances Visibility and Optimization: The system offers real-time visibility into inventory levels and warehouse operations, enabling companies to reduce the risk of stockouts, minimize excess inventory, and optimize warehouse space utilization. This visibility also facilitates data-driven decisions to improve overall efficiency and effectiveness.
  • Customizable and Scalable: A 3PL WMS can be tailored to meet the specific needs of different industries and clients, including features like temperature-controlled storage for perishable goods or specialized picking algorithms for eCommerce fulfillment. It's designed to accommodate current needs and scale with the business as it grows.
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Frequently Asked Questions

What is the role of a 3PL Warehouse Management System?

A 3PL WMS helps companies manage and optimize warehouse operations, including inventory management, order fulfillment, and reporting.

How can a 3PL WMS benefit a company?

A 3PL Warehouse Management System can improve inventory accuracy, order fulfillment efficiency, warehouse space utilization, and supply chain visibility.

What features should I look for in a 3PL WMS?

Key features include inventory tracking and management, order management, picking and packing optimization, real-time reporting tools, and system integration capabilities.

How much does a 3PL WMS cost?

The cost varies depending on factors like the size of the business, desired features, and the vendor chosen. It's important to request quotes and consider long-term ROI.

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April 2, 2024

Best 3PL Companies in Canada You Should Know About

If you're looking for the best 3PL companies in Canada, you've come to the right place. This article will introduce you to some of the top players in the industry and provide valuable insights into the world of third-party logistics in Canada.

What is Third-Party Logistics (3PL)?

Before going into the specifics, it’s important to understand what third-party logistics or 3PL is.

In simple terms, 3PL refers to the outsourcing of supply chain management functions to a specialized company. These companies handle various aspects of logistics like transportation, warehousing, and distribution on behalf of their clients.

By entrusting their logistics operations to a 3PL provider, businesses can focus on their core competencies while benefiting from the expertise and resources of the 3PL company. It's a win-win situation that has gained popularity across industries.

In the transportation arena, 3PL providers play a crucial role ensuring the smooth movement of goods from one location to another. They have extensive networks of carriers and can negotiate favorable rates that save their clients money. Additionally, 3PL companies have the expertise to optimize routes, track shipments in real-time, and handle any unexpected issues that may arise during transit.

Warehousing is another area where 3PL providers excel. Most have strategically located warehouses equipped with state-of-the-art technology and systems to efficiently store and manage inventory. This helps businesses reduce their warehousing costs and benefit from extra scalability and flexibility. With advanced inventory management systems, businesses have real-time visibility into their stock levels, ensuring timely replenishment and minimizing stockouts.

And beyond transportation and warehousing, 3PL provider services can include order fulfillment, packaging, labeling, and even customer support. By leveraging these additional services, businesses can enhance their overall supply chain operations and improve customer satisfaction.

A key advantage of partnering with a 3PL provider is access to their expertise and industry knowledge. 3PL companies are always up to date on the latest trends, regulations, and best practices in logistics. They can provide valuable insights and recommendations to optimize supply chain processes across many industries.

Another benefit of working with a 3PL provider is scalability. With a 3PL partner, businesses can easily scale up or down their logistics operations without significant investments in infrastructure or resources. They can adapt quickly to market demands and seize new opportunities.

In conclusion, third-party logistics, or 3PL is the outsourcing of supply chain management functions to specialized companies. These companies handle transportation, warehousing, and distribution on behalf of their clients, letting businesses focus on their core competencies. 3PL providers offer expertise, cost savings, scalability, and value-added services, making them an attractive option for businesses across industries.

To have a better understanding of how 3PL companies operate and the diversity of services they offer, consider reading our comprehensive overview of 3PL companies, which provides insights into selecting the right partner for your logistics needs.

Overview of 3PL Operations in Canada

In Canada, the 3PL market is vibrant and competitive. With its vast geographical area and robust trade relationships, the country presents numerous opportunities for logistics companies.

Canadian 3PL providers offer a wide range of services, catering to industries like retail, e-commerce, manufacturing, and healthcare. From managing inventory and order fulfillment to overseeing transportation networks, these companies play a vital role in the supply chains of businesses across the country.

Understanding the 3PL Market in Canada

The 3PL market in Canada is constantly evolving to meet the changing demands of businesses. As companies seek to optimize their supply chains and provide seamless customer experiences, the role of 3PL providers becomes increasingly important.

A Key factor driving this growth is the rapid expansion of e-commerce. As more and more Canadians turn to online shopping, businesses need efficient and reliable logistics solutions to fulfill customer orders quickly and accurately.

Range of Services Offered by 3PLs in Canada

Canadian 3PL companies offer a comprehensive range of services to meet the specific needs of their clients. Common services include:

  • Transportation management
  • Warehousing and distribution
  • Inventory management
  • Order fulfillment
  • Customs brokerage
  • Reverse logistics

These services can be tailored to suit small startups, large corporations, and everything in between. By leveraging the expertise of 3PL providers, companies can streamline their operations and gain a competitive edge in the market.

To explore the specific services provided by third-party logistics providers and how they can transform your supply chain, explore our detailed discussion on 3PL services, offering a closer look at how these services streamline operations for businesses of all sizes.

Benefits of Using a Third-Party Logistics Company in Canada

Partnering with a 3PL company in Canada offers several benefits for businesses:

  1. Cost savings: Outsourcing logistics functions eliminates the need to invest in infrastructure, technology, and personnel. 
  2. Improved efficiency: Streamlined processes and faster order fulfillment improve the customer experience. 
  3. Scalability: Seamless operations give businesses the confidence to grow. 
  4. Focus on core competencies: Businesses have more time for future planning. 
  5. Access to expertise: Businesses get valuable insights they can use to improve their customer experience or bottom line.  

Overall, partnering with a 3PL company in Canada is transformative for businesses, offering a pathway to reduce operational costs, enhance efficiency, achieve scalability, maintain a focus on core business areas, and leverage expert insights.

These combined benefits create a formidable foundation for businesses to thrive and expand in the highly competitive Canadian marketplace.

Small and medium-sized enterprises seeking to capitalize on these benefits should explore our detailed guide on 3PL for small businesses. This resource is tailored to help smaller companies understand how to effectively utilize 3PL partnerships to enhance their logistics operations and support growth.

Top 3PLs in Canada

Several 3PL companies in Canada stand out for their industry expertise, reliability, and customer satisfaction::

  • McKenna Logistics: A comprehensive logistics provider offering tailored warehousing, distribution, and supply chain solutions across Canada. They specialize in various industries, including food and beverage, health, and beauty, emphasizing regulatory compliance and inventory accuracy.
  • Sci Logistics: Known for innovative supply chain solutions across technology, healthcare, and retail sectors, SCI Logistics boasts an extensive national network. They offer e-commerce fulfillment, reverse logistics, and specialized temperature-sensitive product services, emphasizing technology-driven approaches.
  • ShipHype: ShipHype stands out as a flexible 3PL service catering to small and medium-sized businesses, offering fulfillment services across Canada and the U.S. Their services are designed to seamlessly integrate with major e-commerce platforms, providing cost-effective solutions for inventory management and shipping.
  • Go Direct Global: A dynamic 3PL provider offering a wide range of services including fulfillment, distribution, and logistic solutions tailored to meet the needs of businesses expanding in global markets. Their expertise in customs brokerage and international shipping makes them a valuable partner for companies looking to navigate the complexities of global trade.
  • McIntyre Group: With a focus on providing innovative logistics and staffing solutions, McIntyre Group offers a unique blend of services that include warehousing, transportation, and comprehensive supply chain management. They are recognized for their flexible and customized approach to meeting the diverse needs of their clients.

Each of these 3PL companies in Canada brings its unique strengths to the table, from extensive national networks and fast delivery capabilities to specialized services and global reach. Choosing the right 3PL partner depends on a business’s specific logistics needs, growth goals, and the strategic value the 3PL can provide in facilitating efficient and effective supply chain operations.

How to Start Working with a 3PL in Canada

If you're considering partnering with a 3PL company in Canada, here are a few steps to get started:

  1. Evaluate your needs: Assess your current logistics requirements and identify areas where a 3PL provider can add value. 
  2. Research potential partners: Look for 3PL companies that have experience in your industry and a proven track record of success. 
  3. Request proposals: Ask your shortlisted companies for pricing, service offerings, and key performance indicators. 
  4. Conduct interviews: Schedule meetings with the potential 3PL providers to get a better understanding of their capabilities, communication styles, and compatibility with your business. 
  5. Make a decision: Based on your evaluations and interviews, select the 3PL company that aligns best with your requirements and values. 
  6. Establish clear expectations: Once you've chosen a 3PL partner, communicate your expectations clearly and establish strong lines of communication to ensure a smooth working relationship.

In conclusion, the best 3PL companies in Canada offer a range of services to optimize supply chains and fulfill the unique logistics needs of businesses. By partnering with a reputable 3PL provider, businesses can unlock new efficiencies, lower costs, and gain a competitive advantage in the Canadian market.

Key Takeaways

  • 3PL's Essential Role: Outsourcing logistics to 3PL providers allows businesses to focus on their core operations, leveraging the 3PL's expertise in supply chain management.
  • E-commerce Growth Impact: The increase in online shopping in Canada has raised the need for 3PL services for effective logistics support.
  • Wide Range of 3PL Services: Canadian 3PLs offer diverse services, including transportation, warehousing, order fulfillment, and more, adaptable for all business sizes.
  • Advantages of 3PL Partnerships: Collaborating with a 3PL in Canada leads to cost savings, improved process efficiency, scalable operations, and access to logistics expertise, enhancing market competitiveness.
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FAQs

How much do 3PL services cost in Canada?

The cost of 3PL services in Canada varies based on factors such as the scope of services required, volume of shipments, and industry-specific needs. It's best to request quotes from multiple providers to get an accurate estimate.

Can small businesses benefit from partnering with a 3PL company?

Absolutely. 3PL providers offer scalable solutions, making them suitable for businesses of all sizes. Small businesses can leverage the expertise and resources of 3PL companies to optimize their logistics operations and compete more effectively in the market.

How do I know if a 3PL company is the right fit for my business?

Choosing the right 3PL partner requires careful consideration. Look for companies with experience in your industry, a strong track record, and the ability to meet your specific requirements. Conducting thorough evaluations and interviews will help you gauge compatibility and make an informed decision.

Can 3PL companies handle international logistics?

Yes, many 3PL providers in Canada can handle international logistics. They can handle customs clearance, freight forwarding, and global transportation, ensuring a smooth flow of goods across borders.

Are 3PL companies equipped to handle specialized industries such as healthcare?

Absolutely. Many 3PL companies in Canada specialize in niche industries, such as healthcare and pharmaceuticals. They have the necessary certifications, infrastructure, and experience to ensure compliance with industry regulations and safely handle critical goods.

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April 2, 2024

Top 5 Best Third-party Logistics (3PL) Companies

Many businesses turn to third-party logistics (3PL) companies for their shipping, warehousing, and fulfillment needs, but it can be overwhelming to choose the right 3PL provider for your business with so many available options. Any of these five 3PL companies would be a great place to start:

The Five Best 3PL Companies

  1. ShipHero: ShipHero is a comprehensive Warehouse Management System (WMS) designed to optimize eCommerce operations by simplifying picking, packing, and shipping processes. It boasts features like inventory management, order tracking, automation rules, and seamless integrations with major eCommerce platforms.
  2. For businesses operating in or expanding to the Canadian market, understanding the nuances of logistics in Canada is essential. Explore our insights on 3PL services in Canada to navigate the complexities of Canadian warehousing, shipping, and fulfillment strategies effectively.
  3. ShipBob: It offers top-notch fulfillment services aimed at helping direct-to-consumer eCommerce brands stay competitive by allowing them to focus on business growth and delivering exceptional customer experiences
  4. C. H. Robinson: C.H. Robinson stands out as a global logistics platform, offering comprehensive solutions across various industries.
  5. XPO Logistics: The company has a strong focus on utilizing proprietary technology to efficiently move goods through its network, emphasizing the de-risking of supply chains for companies​.
  6. UPS: United Parcel Service, Inc. (UPS), founded in 1907, has grown from a small messenger company to a Fortune 500 global shipping and supply chain management powerhouse.

If you know what a 3PL is and why you might need it, then you have five places to start your search. If you don’t know much about 3PLs, keep reading.

What are Third-party Logistics?

Third-party logistics refers to the outsourcing of logistics activities to a specialized company. These companies handle tasks such as transportation, warehousing, inventory management, and order fulfillment on behalf of their clients. By partnering with a 3PL provider, businesses can streamline their supply chain processes and focus on their core competencies.3PL companies offer a wide range of transportation services. They generally have a network of carriers and can negotiate favorable rates for shipping goods. By road, air, rail, or sea, these companies have the expertise to ensure that products reach their destination efficiently and on time. They also handle all the necessary documentation and customs clearance, taking the burden off the businesses.Warehousing is another crucial aspect of logistics that 3PL companies excel in. They have strategically located warehouses equipped with the latest technology and infrastructure to store goods safely and efficiently. These warehouses are often equipped with advanced inventory management systems that allow businesses to track their inventory in real-time. This ensures that businesses always have visibility into their stock levels and can fulfill customer orders promptly.Inventory management is a complex task that requires careful planning and execution. 3PL companies have dedicated teams that specialize in managing inventory. They use sophisticated software systems to track stock levels, monitor expiration dates, and optimize storage space. By outsourcing this function to a 3PL provider, businesses can minimize the risk of stockouts and reduce carrying costs.Order fulfillment is the final step in the logistics process, and 3PL companies play a crucial role in ensuring orders get delivered accurately and on time. 3PL companies often have efficient order processing systems in place to handle everything from picking and packing to labeling and shipping. With their expertise, businesses can provide their customers with a seamless and reliable order fulfillment experience.Overall, partnering with a 3PL provider offers numerous benefits for businesses. It lets the business tap into the expertise and resources of a specialized logistics company, optimize their supply chain, and improve customer satisfaction. By outsourcing logistics activities, businesses can focus on their core competencies and gain a competitive edge in the market.If you're new to the concept of third-party logistics and curious about the breadth of services they offer, our comprehensive overview on 3PL services breaks down everything from warehousing to order fulfillment, equipping you with the knowledge to make informed decisions.

Overview of 3PL Companies

3PL companies come in all shapes and sizes, offering a wide range of services to cater to different business needs. While some 3PL providers specialize in specific industries or regions, others offer comprehensive solutions that can be tailored to any business. The top 5 best 3PL companies on our list have proven track records, extensive networks, and a reputation for delivering exceptional results.

What Kinds of Businesses Use 3rd Party Logistics Companies?

eCommerce businesses, retailers, manufacturers, and distributors are among the industries that commonly use 3PL providers. Startups and small businesses often choose 3PL companies to handle their logistics needs so they themselves can focus on growth and core competencies. Larger corporations also benefit from outsourcing logistics tasks; they can streamline their operations and gain access to specialized expertise. Startups and small businesses often face unique challenges in logistics and supply chain management. Dive deeper into how a 3PL can be a game-changer for small businesses by visiting our detailed guide on 3PL services for small businesses, offering insights to streamline your operations and focus on growth.

Core Competencies of 3PL Providers

The top 5 best 3PL companies mentioned above excel in certain core competencies that set them apart from their competitors. These core competencies include:

  1. Extensive network and transportation capabilities
  2. Advanced technology and tracking systems
  3. Efficient warehousing and inventory management
  4. Excellent customer service and communication
  5. Customizable solutions tailored to specific business needs

Fulfillment Centers & Warehousing Locations

When choosing a 3PL provider, it is crucial to consider their fulfillment center locations and warehousing capabilities. The top 5 best 3PLs above have strategically located warehouses across the country, allowing for faster and more cost-effective shipping. These companies have invested in state-of-the-art warehousing facilities that prioritize efficiency, security, and scalability.

Sales Channels & eCommerce Platforms Supported by 3PLs

eCommerce businesses rely heavily on effective supply chain management to ensure timely order fulfillment. The top 5 best 3PL companies integrate seamlessly with popular eCommerce platforms such as Shopify, WooCommerce, and Amazon. They also support multiple sales channels, including marketplaces like eBay and social media platforms. By leveraging the capabilities of these 3PL providers, eCommerce businesses can enhance their customer experience and boost sales.

Customer Satisfaction with 3PL Companies

When selecting a 3PL provider, consider their track record of customer satisfaction. The top 5 best 3PL companies have a proven history of delivering a high level of service and exceeding customer expectations. They have earned positive reviews and testimonials from their clients, showcasing their commitment to excellence.

How to Get Started with a 3PL Service

If you decide to partner with a 3PL provider, the onboarding process is generally straightforward. It typically involves:

  1. Evaluating your logistics needs and goals
  2. Researching and shortlisting potential 3PL companies
  3. Contacting the selected companies and discussing your requirements
  4. Requesting and reviewing proposals
  5. Selecting the best-fitting 3PL provider for your business
  6. Signing the necessary agreements and contracts
  7. Collaborating with the 3PL company to set up systems and processes

By following these steps, you can start leveraging the benefits of 3PL services and optimizing your supply chain management.

Mistakes to Avoid When Choosing a 3PL Provider

While selecting a 3PL provider, avoid these common mistakes that can lead to poor service or unsatisfactory results:

  • Not thoroughly researching the reputation and track record of the 3PL company
  • Choosing a provider solely based on cost, without considering the quality of service
  • Overlooking the compatibility of the provider's technology with your existing systems
  • Not clearly communicating your business requirements and expectations
  • Entering into long-term contracts without a trial or pilot period

By being aware of these common mistakes, you can make an informed decision and select a reliable and suitable 3PL provider.

Understanding the Pricing Structure of 3PLs

The cost of 3PL services can vary depending on the volume of shipments, storage requirements, and the complexity of logistics operations. 3PL providers typically use a pricing structure that includes fixed costs like warehousing fees, and variable costs based on the services used. Carefully review the pricing details provided by potential 3PL providers so you know it aligns with your budget.

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Key Takeaways

In conclusion, partnering with a reputable 3PL company can significantly optimize your supply chain and enhance your overall business operations. The top 5 best 3PL companies stand out due to their extensive networks, advanced technology, superior customer service, and customizable solutions. When choosing a 3PL provider, consider factors such as industry expertise, technology capabilities, and customer satisfaction. By avoiding common mistakes and understanding the pricing structure, you can make an informed decision and select the right 3PL provider for your business.

Frequently Asked Questions

What does 3PL stand for?

3PL stands for Third-Party Logistics. It refers to the outsourcing of logistics and distribution by companies to third-party firms that specialize in warehousing, transportation, and fulfillment services. These third-party providers manage all or a significant portion of a company's logistics functions, allowing businesses to focus on other areas without the need for extensive logistics infrastructure or expertise.

Is it necessary to use a 3PL company?

While it is not mandatory, utilizing a 3PL company can provide numerous benefits, particularly for businesses that require efficient supply chain management.

How do I choose the right 3PL provider for my business?

Consider factors such as reputation, industry expertise, technology capabilities, and customer satisfaction when selecting a 3PL provider. Additionally, ensure their services align with your specific business needs.

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July 17, 2025

Detailed Guide to Automated Warehouse Picking Systems for 2025

While your team is still walking aisles, your competitors are cutting pick times in half with automation. Guess who’s shipping faster and stealing market share?

Automation isn't the future anymore. It's the present. For growing eCommerce brands or fulfillment centers under pressure to deliver faster, cheaper, and more accurately, automated warehouse picking systems are no longer a luxury. They're a necessity.

In this guide, you'll learn how automated picking systems work, the types available, how to choose the right one, and how ShipHero can help you streamline fulfillment processes with confidence.

What Are Automated Warehouse Picking Systems?

Automated warehouse picking systems use software, robotics, and real-time data to locate, retrieve, and prepare items for shipment, without relying solely on human labor. Instead of employees walking long distances and manually selecting items, automated systems bring items to workers or direct them with tools like lights, voice commands, or mobile robots.

For example, in the eCommerce space, brands use Goods-to-Person (GTP) systems to increase operational efficiency and efficiently handle large catalogs of SKUs. In retail, where seasonal order surges can overwhelm manual processes, automated solutions help companies double their picking speed and maintain consistent fulfillment even during peak demand.

How Does An Automated Picking System Work?

The process is surprisingly seamless:

  1. An order is received from your store (e.g., Shopify, Amazon).
  2. Your WMS (like ShipHero) routes the order.
  3. The picking system (robot, light, voice, etc.) guides or performs the retrieval.
  4. Items are packed and shipped.

This flow is driven by smart software that integrates with warehouse management systems and supports key warehouse processes, including picking, packing, and tracking real-time inventory.

Want a deeper look at the tech behind it? Read this guide on warehouse automation software.

Types of Automated Picking Solutions

There’s no universal solution for warehouse automation. The best picking system depends on your space, order volume, and the variety of products you offer. Some work better for high-SKU, high-volume operations; others are ideal for smaller, more focused setups. Below, we break down the top systems and which warehouse types they’re best suited for.

Goods-to-Person (GTP) Systems

GTP systems deliver inventory directly to a stationary picker, eliminating walking marathons. This setup enhances inventory management, reduces physical strain on workers, and improves worker safety.

It also optimizes order accuracy by minimizing human error. By minimizing walking time and keeping pickers in one place, GTP systems significantly boost pick rates while also cutting down on labor fatigue.

Pick-to-Light Systems

Pick-to-Light is an automated solution that uses LED light bars to guide workers to the right location for picking items, enhancing accuracy, speed, and efficiency while reducing errors.

When paired with Pack-to-Light and Receive-to-Light, your entire workflow is streamlined. Pack-to-Light ensures precise packing, while Receive-to-Light optimizes inventory storage and retrieval. Together, these technologies simplify inventory management, reduce labor costs, and accelerate fulfillment.

At ShipHero, we offer all three solutions, Pick-to-Light, Pack-to-Light, and Receive-to-Light, under one roof, seamlessly integrating with your existing systems to optimize warehouse operations. The combination can help boost efficiency by 20% while also cutting costs by up to 30% for batches of 10 to 30 orders.

Voice Picking Systems

Pickers wear headsets and follow voice commands to locate items, like a GPS for your warehouse. This hands-free approach automates repetitive tasks, shortens training time, and reduces picking errors, even in noisy environments. It also improves accuracy, even in noisy environments where traditional methods might fall short.

Autonomous Mobile Robots (AMRs)

AMRs, or autonomous mobile robots, navigate the warehouse floor independently, delivering items or bins to human workers or packing stations.

Unlike fixed systems, AMRs offer greater flexibility and adapt to varying warehouse sizes, support scalable operations, and offer the flexibility to grow without major infrastructure changes. They’re also highly scalable, which makes them a smart choice for warehouses looking to grow or adjust operations without major infrastructure changes.

Automated Storage and Retrieval Systems (AS/RS)

These are high-tech racking systems equipped with robotic cranes or shuttles that automatically store and retrieve inventory. They’re especially well-suited for large warehouses with high inventory turnover, where speed and space efficiency are critical.

Businesses that need to maximize vertical storage find these systems invaluable, and industries such as pharmaceuticals, automotive, and electronics often benefit the most from their precision and scalability.

Benefits of Automated Order Picker

Still not convinced? The real-world benefits speak for themselves. Automation significantly reduces human error, particularly in fast-paced warehouse environments where accuracy is crucial. It also speeds up fulfillment, often cutting pick times in half or more.

By streamlining operations, businesses can lower labor costs by either reducing headcount or reassigning team members to more valuable tasks.

By transitioning to automation, companies often see dramatic improvements in efficiency and cost savings. For example, automation can reduce warehouse labor costs by up to 60%, allowing businesses to reallocate resources and scale more effectively.

Challenges of Using an Automated Picking System

It’s not always smooth sailing when implementing automated picking systems. One of the biggest hurdles is the high initial investment, as hardware, software, and integration can come with a steep upfront cost.

Staff training is another challenge, as teams need time to learn how to use the new technology effectively. There can also be short-term disruption; installation and onboarding may temporarily slow down operations. But the long-term gains are often worth it.

For example, James Enterprise struggled with paper-based picking and processing delays before switching to ShipHero’s Warehouse Management System.

The transition required workflow changes and staff training, but with proper planning, such as going paperless, reorganizing their layout, and utilizing smart pick paths, they boosted productivity by 38%. New hires cut their pick time from 55 to 34 seconds in just five days, proving that smart automation pays off.

How to Choose the Right Automated Order Picking System

Finding the right automated picking system starts with understanding your specific needs. Warehouse size plays a big role, as larger spaces often benefit most from solutions like AMRs or AS/RS that can cover more ground efficiently. If your business manages a high variety of SKUs, systems like GTP or voice picking can offer the flexibility and accuracy you need.

For those working with tighter budgets, starting with light-based or voice-guided systems can provide a solid foundation without breaking the bank. Regardless of your starting point, scalability is crucial; your system should be able to grow in tandem with your business. Partnering with ShipHero ensures you get expert, customized guidance and future-proof solutions designed specifically for your operation.

Best Practices for Successful Warehouse Picking Automation

Implementing warehouse picking automation isn’t just about installing new tech; it’s about doing it strategically. To get the most out of your investment and avoid common pitfalls, follow these proven best practices:

‍Best Practices for Successful Warehouse Picking Automation

  • Set clear goals. Know what success means—faster picks, lower costs, or better accuracy.
  • Train your team. Ensure staff are confident in using the new tools.
  • Monitor performance. Track KPIs, such as error rates and pick speed, to identify issues early.
  • Start small. Test automation in one area before scaling across the warehouse.

For example, Black Wolf Nation and its 3PL arm, ONE23 Fulfillment, partnered with ShipHero to scale their operations. By adopting ShipHero's warehouse management software, they increased their order volume from 10,000 to over 25,000 per month in less than a year. This strategic implementation allowed them to efficiently manage growth and expand into the 3PL space.

Key Takeaways

  • Automated picking systems boost warehouse efficiency, accuracy, and cut labor costs by up to 60%.
  • Choosing the right system depends on your space, SKU variety, and growth goals.
  • Strategic implementation, including starting small, training teams, and tracking performance, is crucial to achieving long-term success.

Frequently Asked Questions

What is the Average ROI Timeframe for Automated Picking Systems?

Most companies see a return on investment within 12 to 24 months, depending on the system and order volume.

Are Automated Systems Suitable for Small Warehouses?

Yes. Many automated systems are designed to be scalable and cost-effective, which makes them ideal for small warehouses. Solutions like Pick-to-Light and voice picking can start small and expand as your operation grows.

Can Automated Picking Systems Handle Fragile or Irregularly Shaped Items?

Yes. Advanced systems feature adjustable grippers, sensors, and packaging logic to safely handle delicate or irregularly shaped products.

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July 17, 2025

What is Wave Planning in a Warehouse Management System?

Warehouse management systems make daily warehouse operations efficient. And wave planning is at the heart of it.

As part of the supply chain industry where efficiency is of utmost importance, the fast-paced environment of warehouse management requires every aspect of operations to work on schedule. This is where wave planning comes into play and brings efficiency to the table.

It integrates with warehouse management systems and streamlines end-to-end warehouse operations to meet customer expectations of fast shipping and real-time updates.

What is Wave Planning in a Warehouse?

Wave planning batches orders for optimized picking routes, shipping, and priority. It supports operational workflows and integrates with warehouse wave picking strategies to maximize productivity, reduce errors, and improve overall daily warehouse output.

This turns warehouse operations into an organized process of handling and systematizing hundreds of orders a day.

Best Practices for Wave Management

Applying the best practices for wave management allows for maximum efficiency in managing daily warehouse operations. Start with these:

Prioritize Orders Strategically

Not all orders need to be shipped at the same time. Some can wait, others can’t. Strategic planning means prioritizing orders based on shipping deadlines to ensure they are shipped out and delivered on time. This increases customer satisfaction and overall operational efficiency. To better understand the core workflows that make this strategy effective, explore how we have explained the six key warehouse processes.

Leverage Real-Time Data

Accessing real-time data allows you to monitor every wave that’s happening, from orders getting picked up to those that are delayed. This lets you take action accordingly, especially when spotting issues as they are happening.

Minimize Downtime

Downtimes are red flags in wave management. They are equal to unproductivity and possible shipment delays, both affecting operations to meet quotas and customer satisfaction.

Reduce idle time in operations with these methods:

  • Ensure all inventory is ready and accessible
  • Auto-launch waves per order category
  • Monitor pickers and packers, and reassign them as needed
  • Set up alerts for any disruption so they’re solved ASAP
  • Use smaller, targeted waves for more flexibility

Plan for Peak Periods

High-demand periods like holidays, promotions, and occasional spikes can cause chaos, especially if you don’t have a plan in place. That chaos can overwhelm your normal operations and lead to delays and unsatisfied customers.

Avoid this by ensuring scalability for peak periods with effective wave planning:

  • Forecast orders based on past data
  • Use shorter, more frequent waves that are easier to adjust
  • Separate waves according to categories & priority
  • Have a backup plan to keep operations in place despite delays or failures
  • Utilize real-time monitoring for immediate actions on issues

If you’re preparing your warehouse for high-volume fulfillment, it may be worth exploring how automated warehouse picking systems can make wave execution more efficient and adaptable.

Use Defined Picking Zones

Warehouses have different zones to which pickers are assigned.

Having specific picking zones gives structure to the picking process, making it easier to execute even through high-volume orders.Having defined picking zones helps:

  • Reduce travel time for pickers and allow more time to fulfill orders
  • Balance workload among staff by assigning them according to the volume of orders
  • Pickers become knowledgeable about their zone, making work easier and more efficient

How Does Wave Management Handle Unexpected Changes in Order Volume?

Wave management gives you the flexibility to adapt quickly when an unexpected change occurs during operations.

A common issue often faced in wave management is the sudden changes in order volume. This disrupts the flow of current waves and may have an avalanche effect on the whole operation if not solved immediately.

Here’s how wave management adjusts operations to meet demand fluctuations:

  • Adjusts the wave by splitting large ones into smaller waves
  • New orders are added quickly to the system
  • Reassign workers to high-volume zones through alerts.

How Does a WMS Simplify Wave Management?

A warehouse management system creates an overall plan that controls the flow of a warehouse's production. Using tools and automation, a WMS simplifies and streamlines wave management to execute warehouse operations from fulfillment to packing and delivery.

What is the Difference Between Wave Planning and Wave Management?

The main difference between wave planning and wave management is that the former is where the strategizing happens, while the latter is the execution and overseeing that the plan takes place.

Wave planning is the strategic part of grouping what orders should be fulfilled together, setting the time for wave releases, and adjusting them based on warehouse capacity and labor availability.

Wave management is the main operational part where the production happens. It tracks the real-time progress of wave execution to ensure things are running smoothly according to plan.

Digital vs. Wholesale Waves

The main difference between digital and wholesale waves lies in their order size, wave planning, and operational goal. Due to their differences, each wave type requires different planning and strategy.

Digital waves service the B2C channel, are high in volume, and often have small, single-item orders that require urgent or same-day deliveries. The wave strategy used is frequent and short for flexibility. For this wave type, warehouse managers use WMS-integrated mobile devices for tech support

Meanwhile, wholesale waves are for bulk orders, often for retail distribution, resellers, or B2B supply chains. Wholesale waves have a lower order volume with large shipments and more flexible timelines.

Key Takeaways

  • Wave planning creates more efficient warehouse operations by grouping together orders based on routes, delivery time, and priority.
  • Prioritizing orders and minimizing downtime are important, especially during high demand and peak periods.
  • Strategizing happens in wave planning while executing the strategy happens during wave management.

Frequently Asked Questions

Can Wave Planning be Used in Warehouses with Small Inventories?

Yes, it can be used if they have large volumes of orders per day, orders with time-blocked pickups, or group orders with shipping deadlines.

Are There Specific Industries where Wave Planning is Most Beneficial?

Yes. eCommerce and retail, grocery and food distribution, healthcare and pharmaceutical, industrial supply, and consumer packaged goods industries are industries that benefit from wave planning. These are industries with high order volume, delivery sensitivity, and high operational complexity.

Can Wave Management Improve Same-Day Shipping Capabilities?

Yes, wave management is designed to make warehouse operations, including same-day shipping, possible. Wave management creates a structure that speeds up the order fulfillment, speeding up the process for all warehouse operations, such as same-day shipping.

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July 17, 2025

What is Warehouse Wave Picking? Definition and Essential Tips

Your warehouse isn’t slow because your team isn’t working hard. It’s slow because they’re working inefficiently. When every picker is chasing orders in random directions, you lose time, increase errors, and risk customer satisfaction.

Wave picking fixes that by turning chaos into coordination. By grouping orders for optimized picking routes and releasing them in scheduled “waves,” you can streamline picking, reduce walking time, and enhance picking speed, especially in high-volume eCommerce environments.

In this guide, we’ll explain what wave picking is, how it works, and how to use it to run a faster, leaner, and more accurate warehouse.

What is Wave Picking?

Wave picking is a warehouse picking strategy where orders are grouped and released in scheduled “waves” throughout the day. Each wave organizes orders based on factors like delivery time, product type, or warehouse zone, to help your team pick faster, move smarter, and stay organized. When paired with automated warehouse picking systems, wave picking becomes even more powerful, and minimizes manual effort while maximizing speed and accuracy.

For example, a warehouse might group all orders that need same-day shipping into a morning wave, while standard shipping orders are picked in the afternoon. This keeps the flow structured and reduces chaos on the floor.

Brands using wave picking have seen measurable results. A study published in Acta Logistica found that accurately batching and releasing orders in structured waves reduced cycle times by more than 13% compared to unplanned methods, proving how it standardizes warehouse processes and improves resource utilization. This demonstrates how even modest changes in picking structure can lead to significant gains in warehouse efficiency.

How Does Wave Picking Work?

Wave picking operates through a structured, three-phase process: pre-wave, wave, and post-wave.

Each stage plays a critical role in coordinating order fulfillment, from organizing batches of orders to guiding pickers efficiently through the warehouse and ensuring fast, accurate packing and shipping. Understanding how each phase works is key to unlocking the full efficiency potential of wave picking.

Before picking begins, the warehouse management system (WMS) organizes inventory for efficiency by grouping orders into waves based on factors like shipping deadlines, SKU type, or zone. It then generates batch pick lists, allocates resources, and ensures that equipment and carts are ready, laying the groundwork for a smooth picking process using proven picking strategies.

Good Company, a 3PL provider, exemplified this by leveraging ShipHero's multi-item batch feature. This streamlined their pre-wave setup, enabling them to group multiple orders with shared items into single picking runs. This drastically reduced picker travel, and as they scaled from 500-600 to 6,000-10,000 units daily within 18 months, allowed them to halve their pick time. This demonstrates the immense power of an optimized pre-wave process.

Performing Wave Picking

Once a wave begins, pickers follow optimized routes through the warehouse to collect items. The goal is to reduce backtracking and congestion by assigning pickers to specific zones or paths.

E-Commerce Xpress, an eCommerce fulfillment provider, has significantly streamlined its picking process by adopting ShipHero's Warehouse Management System (WMS). Their previous manual methods caused inefficiencies and excessive picker travel. By using ShipHero's multi-batch order feature, they transformed their picking phase. This technology groups multiple orders into single runs, creating highly optimized routes and eliminating unnecessary trips. The result was profound: E-Commerce Xpress could fulfill 200 orders in just 2 hours with one person, a task that previously required four staff members 4-5 hours. This showcases how wave picking handles peak operational loads and supports multi-order fulfillment with ease.

Post-Wave Picking

After items are picked, they move to packing and shipping. This phase includes labeling, verifying accuracy, and dispatching the final product. A well-organized post-wave process ensures orders are completed on time and without mistakes.Consider Vareya, a 3PL and fulfillment company, which dramatically improved its post-wave efficiency and client satisfaction by adopting ShipHero's Warehouse Management System (WMS). Previously, Vareya struggled with disconnected systems, resulting in significant errors and excessive paperwork. By migrating to ShipHero, they automated workflows and shipping labels, ensuring efficiency and accuracy in packing and dispatch. This allowed them to triple business volume and meet customer service levels consistently.

How to Do Wave Picking Effectively

To get the full benefits of wave picking, it’s essential to follow proven best practices that align your people, tools, and workflows. From using the right technology to organizing pick paths and handling carts efficiently, these core strategies—like those in our warehouse picking strategies guide—will help you maximize speed, accuracy, and productivity in every wave.

Use a Warehouse Management System (WMS)

A powerful WMS like ShipHero automates wave creation, drives real-time decision-making, and optimizes paths. It ensures every wave is precisely executed and synced with inventory.

Calculate optimal picking routes

Calculating optimal picking routes is one of the most effective ways to reduce travel time on the warehouse floor, a major contributor to inefficiency. By using route optimization software, pickers follow the shortest and most logical paths through the facility, thereby avoiding unnecessary backtracking and congestion. This not only speeds up fulfillment but also reduces fatigue and boosts overall productivity, especially in high-volume environments where every second counts.

Define cart handling strategies

Efficient cart handling is key to successful wave picking. Organizing carts by order, zone, or SKU reduces sorting time and speeds up packing. This keeps the workflow smooth, reduces errors, and enhances overall fulfillment efficiency.

Types of Wave Picking

Wave picking comes in different forms, each suited to specific warehouse needs. Whether you’re handling large SKU volumes, urgent orders, or multiple zones, choosing the right strategy can boost speed, accuracy, and efficiency.

By Product Type

Organizing wave picking by product type allows warehouses to group similar SKUs into the same wave. This reduces picker travel time, as items are often stored near each other, and enables faster, more efficient picking by creating consistent, repeatable paths through the warehouse. It’s especially useful for high-assortment operations where grouping like products streamlines the process.

By Order Priority

Wave picking by order priority ensures that urgent orders, such as express shipments or VIP customers, are grouped and processed first. By releasing these high-priority orders in the earliest waves, warehouses can ensure faster turnaround times and meet strict delivery deadlines, thereby maintaining high customer satisfaction and consistent service levels.

By Picking Zones

Dividing the warehouse into picking zones allows each wave to focus on a specific area, reducing unnecessary movement and streamlining the picking process. Assigning pickers to dedicated zones allows waves to run simultaneously in different zones, reducing congestion and enabling scalability in operations.

4 Benefits of Wave Picking in a Warehouse

Wave picking is a fulfillment strategy designed to group orders into scheduled "waves" based on factors like shipping deadlines, product locations, or customer types.

This method is especially valuable in high-volume or time-sensitive operations where precision and speed are critical. Below are four key benefits of using wave picking in your warehouse:

Improved Warehouse Efficiency and Storage

Wave picking keeps operations structured, which allows you to process more orders per shift without expanding your physical footprint.

Faster Order Fulfillment

By reducing idle time and unnecessary movement, wave picking streamlines the entire fulfillment process. After adopting ShipHero’s WMS, American Tall saw a 275% increase in picking efficiency and cut fulfillment errors by 50%, allowing them to scale operations by 400%—clear proof of how structured picking methods lead to faster, more reliable order delivery.

Minimal Operational Errors

With batch pick lists, scanning, and real-time tracking, wave picking drastically reduces errors in item selection and order completion.

Reduced Overhead

Fewer errors, faster picks, and optimized labor use = lower costs. Wave picking helps you do more with fewer resources.

Wave Picking vs. Batch Picking

The main difference between wave picking and batch picking lies in their timing and level of structure. Wave picking organizes and releases orders at scheduled times throughout the day, which is ideal for high-volume warehouses where precise timing and a smooth workflow are essential. This method offers a structured approach that reduces errors and supports scalability, but it requires more upfront planning and a reliable warehouse management system.

In contrast, batch picking allows warehouse staff to pick multiple orders in a single trip without being tied to a specific schedule. It’s a simpler, more flexible method that’s well-suited for smaller operations with lower order complexity.

While batch picking is easy to implement and has a lower barrier to entry, it becomes less efficient when dealing with large volumes or time-sensitive orders. Choosing the right approach depends on your warehouse size, order volume, and fulfillment goals.

Key Takeaways

  • Wave picking organizes orders into scheduled groups, improving speed, accuracy, and flow in high-volume warehouse environments.
  • Using a WMS like ShipHero automates waves, optimizes routes, and significantly reduces fulfillment time.
  • Tailored strategies—by product type, order priority, or zones—help warehouses boost efficiency and scale smarter.

Frequently Asked Questions

Can Small Warehouses Benefit from Wave Picking?

Yes. Wave picking can scale down for smaller operations to help them improve organization, reduce picker confusion, and streamline fulfillment.

Do All WMS Platforms Support Wave Picking?

No. Only certain WMS platforms, such as ShipHero, offer full wave picking functionality, including automated order grouping, routing, and inventory syncing.

Is Wave Picking Suitable for High-Volume eCommerce Warehouses?

Absolutely. Wave picking was designed for fast-paced, high-volume environments where timing, accuracy, and scalability are critical.

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