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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.
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.
The process is surprisingly seamless:
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
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
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.
Most companies see a return on investment within 12 to 24 months, depending on the system and order volume.
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.
Yes. Advanced systems feature adjustable grippers, sensors, and packaging logic to safely handle delicate or irregularly shaped products.
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.
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.
Applying the best practices for wave management allows for maximum efficiency in managing daily warehouse operations. Start with these:
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.
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.
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:
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:
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.
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:
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
Wave picking keeps operations structured, which allows you to process more orders per shift without expanding your physical footprint.
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.
With batch pick lists, scanning, and real-time tracking, wave picking drastically reduces errors in item selection and order completion.
Fewer errors, faster picks, and optimized labor use = lower costs. Wave picking helps you do more with fewer resources.
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.
Yes. Wave picking can scale down for smaller operations to help them improve organization, reduce picker confusion, and streamline fulfillment.
No. Only certain WMS platforms, such as ShipHero, offer full wave picking functionality, including automated order grouping, routing, and inventory syncing.
Absolutely. Wave picking was designed for fast-paced, high-volume environments where timing, accuracy, and scalability are critical.
Thanks to recent technological advancements and the demands of omnichannel retail today, RFID technology is now seen in a whole new light within the speed-driven logistics landscape.
Here's what's driving all the attention: businesses today are under incredible pressure. Customers want their orders to be fast and accurate, and they want to know exactly where their order is at all times.
With rising costs, unpredictable supply chains, and customers who expect instant updates, businesses are increasingly turning to RFID technology for faster fulfillment, real-time accuracy, and smarter operations.
But is RFID truly the future of logistics? Or are we simply getting caught up in another tech trend?
In this article, we break down what RFID inventory management really is, how it works, and what makes it superior (or not) to traditional barcode systems. We'll also explore the benefits, challenges, and use cases that matter most to fast-scaling eCommerce businesses and 3PLs.
RFID (Radio Frequency Identification) inventory management uses radio waves to automate identification and tracking processes throughout a warehouse or supply chain. Compared to manual spreadsheets or barcode-based systems, RFID is faster, more scalable, and more dynamic.
Instead of having your team manually scan barcodes one by one, each item is tagged with a unique electronic identifier (RFID tag). This allows teams to track inventory wirelessly and with greater precision.
You don’t have to shut down your operations to do a cycle count or use math formulas to determine the ideal order quantity. With RFID, your team gains real-time, accurate insights into the location and quantity of everything. All without the need for line-of-sight scanning.
In short, RFID inventory management enhances accuracy in inventory management, reduces manual counting and human errors, and improves visibility across supply chains.
Here’s how an RFID inventory management system works in practice:
RFID makes an even more measurable impact when used for:
Before we dive deeper into RFID's benefits, let's break down the essential building blocks that make it all possible. Here are the three core components that power the system:
RFID tags are the identifiers attached to each inventory item. Tags can be embedded in labels, hangtags, or packaging and support item-level tracking for precise data.
They come in two main types:
RFID readers can be handheld devices or fixed-position scanners placed at warehouse entry points, loading docks, or packing stations.
Their ability to read data from multiple items simultaneously allows for faster cycle counts, pallet scanning, or outbound processing. However, its signal strength and reliability can be affected by nearby metal objects or liquids.
This is where all the raw tag information captured by RFID readers gets translated into actionable insights.
Modern RFID systems integrate with warehouse management systems and enable seamless integration with ERP systems, providing:
Very accurate, especially if implemented correctly. In fact, a study by Auburn University’s RFID Lab found that RFID systems can increase inventory accuracy from a rate of 63% to 95%.
This increased precision helps businesses:
Still, RFID isn't bulletproof.
Metal surfaces and liquid products can interfere with radio signal transmission, potentially causing read errors or missed detections. Although these issues are usually mitigated by strategic tag placement or the use of specialized tags designed for challenging environments.
Here’s how RFID stacks up against traditional barcode systems:
Ultimately, the choice between RFID and barcode technology depends on your operational requirements, budget constraints, and the value placed on automation versus initial investment costs.
RFID offers significant advantages. But like any tech investment, it comes with a few hurdles. If you're considering RFID for your warehouse or fulfillment center, it’s important to weigh both the benefits and the potential roadblocks.
RFID isn’t a plug-and-play solution. But for businesses with high throughput or complex inventory needs, the long-term ROI can outweigh the initial friction.
The total cost of a complete RFID system for most mid-sized businesses can range from $10,000 to over $100,000. But this can vary depending on the size and complexity of your operations. To give you an idea:
Yes, but with caveats. Metal and liquid materials can interfere with RFID signals. But specialized RFID tags, shielding materials, and strategic tag placement can address most of these challenges.
Yes, of course. RFID inventory management can benefit small businesses, particularly those handling high-value items and fast-moving inventory.
A phased implementation (starting with one location or SKU category) can make RFID more accessible for smaller operations.
If you're about to take your eCommerce business to the next level, selecting the right 3PL (Third-Party Logistics) partner is an essential success factor. Not only do they help manage your day-to-day operations and fulfillment but having a reliable 3PL can also streamline customer service, reduce costs, and drive growth. We'll outline key considerations so you can confidently choose a 3PL that meets all your unique needs!
3PLs are the real MVPs of eCommerce. By leveraging 3PLs, merchants can offload a sizable portion of their supply chain management and never worry about fulfilling orders on time. With 3PLs handling everything from warehousing to order fulfillment and shipping coordination to retail distribution, exchanges, and returns, merchants can sit back and let their 3PL do all the heavy lifting. In the end, 3PL partners mean more time for merchants to focus on other areas of their business rather than managing their own warehouses or logistics.
3PL has revolutionized eCommerce, allowing businesses to choose the right 3PL partner and focus on maximizing sales rather than worrying about supply chain management. If you're considering a 3PL partner for your business, be sure to weigh these factors on how to choose a 3PL provider that's right for you!
When you’re on the hunt for a 3PL, how do you decide which provider is the right fit? Capability is key: if your third-party provider doesn’t have the capacity and expertise to cover all your bases, from fulfillment services and reverse logistics to subscription box solutions, you may be in for a bumpy ride. Keep an eye peeled for providers offering flexibility and feature-rich integrations with your eCommerce platform – that way, as consumer demand continues to skyrocket, you can rest assured knowing you've picked a partner able to roll with the punches. With capability and scalability in spades, there won't be any supply chain kinks that they can't help you iron out!
When it comes to stability in the logistics industry, you deserve the best. That's why it pays to look for a 3PL with a track record of adapting to a changing market – ensuring your business that potential innovations won't rock their stability down the line. Plus, multiple locations allowing for shorter shipping times and increased national reach is a bonus – so you can have confidence that your supply chain needs are taken care of! An esteemed reputation for providing top-notch service is worth considering when it comes to peace of mind.
How do you ensure your 3PL has the best reputation around? Find a partner that knows the importance of making connections! It's not just about happy customers - it's about happy vendors, carriers, and employees. A great 3PL will take the time to understand your business needs, so communication is key here - make sure they take their engagement levels seriously and bring in their expertise. With a compatible culture and shared values, you can be sure they'll exceed expectations every step of the way.
When it comes to safety, what you should look for in a 3PL is the same thing you’d do when checking the brakes on a cart: check twice and confirm. Spot-check that your 3PL has the most up-to-date PCI, FDA, and DEA certifications and a HAZMAT Shipping Certification. After all, safety first!
With a third-party logistics provider, customer service and attention to detail often make or break the relationship. The good news is that experienced 3PLs will rise to the occasion to provide business solutions that leave you nodding your head in approval, like how easy it is to calculate savings and track delivery times. Plus, with omnichannel retail taking over the market, you'll want to find a partner that knows how to navigate through these complexities and provide top-tier customer experiences. Look for someone with an impressive track record, a reusable approach, and expertise in handling similar operations.
If you're feeling cramped and think it might be time to upgrade your operations, outsourcing is an ideal option. You only need the perfect third-party logistics provider who can make scaling up a breeze. Your provider can help you address peak demand without investing in physical infrastructure and personnel. Don't forget to ask them one crucial question: “What’s the maximum amount of scalability you offer?” That way, you'll know just how easily they can pick, pack, and ship your goods should demand suddenly skyrocket.
Third-party logistics can help your business stand out by providing customized solutions tailored to your unique needs. Each provider will offer a unique blend of software integrations, postponement strategies, and tailored production techniques - so make sure you work with an experienced 3PL who can leverage these things. Once you kick off the process, you'll be able to tap into cost savings while still providing excellent service.
When it comes to 3PL providers, there's no room for inaccuracy. If your 3PL can't keep its inventory and orders accurate, you're in for a world of customer disappointment and not-so-fun losses. Make sure the 3PL partner you pick employs a robust Warehouse Management System that keeps order and inventory accuracy levels high. It's worth all the effort to find the right provider because, in this business, accuracy is everything!
Responding quickly and effectively when issues come up is a key factor of success for any company or individual. It can be the difference between a smooth-running operation and one that consistently trips up on large and small snags. Since no one can predict the future, understanding the importance of being responsive helps ensure that whatever comes your way is addressed in an efficient and timely fashion. Don't leave your customers hanging - make responsiveness a priority! After all, how would you feel if you were constantly waiting around for answers?
In this ever-changing technological era, how do you choose the right 3PL provider for your business? Well, it's simple: get yourself one that provides enterprise-level tech. Nothing says 'sophistication' quite like having a streamlined order-to-delivery process – and that's exactly what advanced technology solutions can give you. And while you might not require such complex systems now, who knows how future-proof you'll want your business to be in the near future? So don't take any risks - ensure your 3PL has robust technology from the get-go!
You don’t have to worry about how much a 3PL costs; in fact - it could save you money! Bulk ordering from the same vendor can save your bottom line with discounted rates. And who knows, if you’re persuasive enough, you might even command better terms for yourself. You won’t need to invest in warehousing and haulage tech, labor costs, and the like - 3PLs can do everything for you. That means no more spending money on expensive mistakes and worrying about how to handle logistics without help.
Taking your eCommerce business to the next level is no small feat and choosing your 3PL partner can be a make-or-break factor. Your 3PL can help you manage operations, streamline customer service, reduce costs, and drive growth, but how do you know they're right for you? Well, that's where due diligence comes in. Weigh out all the options mentioned in this blog, and don't settle until you find one with enough experience and savvy to fuel your eCommerce rocket ship. When it comes to WMS, ShipHero has the goods. So, if ShipHero WMS powers your 3PL, rest assured that your business will be on its way to success in no time!
So, there you have it! If you want to learn more about all things 3PL, check out our guide here, which dives deeper into this fascinating world! These are just a few reasons why choosing the right 3PL is essential to your business success.
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‍About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With thousands of brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.
Stay informed about everything in third-party logistics by following ShipHero on LinkedIn and subscribing to our newest blogs and updates.
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Pick and pack fulfillment is a major part of your order processing and inventory management efforts. Improving your picking and packing process means improving your warehouse operations’ speed and accuracy. Better speed and order accuracy, in turn, leads to fewer returns and happier customers.
In this guide, we’ll cover everything about achieving business success with pick and pack fulfillment. Read on to learn more!
Here’s a breakdown of what you can look forward to while reading ShipHero’s Guide to Picking & Packing in an eCommerce Warehouse:
There are some common myths and misconceptions when it comes to using a 3PL provider. Here are a few you may have heard: ‍
Myth: "It's too expensive to use a 3PL."
‍In reality, using a 3PL can actually save your business money in the long run. A 3PL has economies of scale and can often negotiate better rates for things like warehousing and transportation. And by outsourcing logistics to a 3PL, you'll have more time and resources to focus on growing your business, which can ultimately lead to more revenue.
‍Myth: "A 3PL will take over my business."
‍A 3PL is there to support your business, not take it over. The idea is to work together to create a logistics solution that works for you. You'll still be in control of your inventory and customer relationships.
‍Myth: "I'll lose control of my inventory."
‍When working with a 3PL, you'll have access to real-time inventory data, giving you more control and visibility over your inventory than ever before. Plus, 3PLs often have advanced inventory management systems in place, which can help you keep track of your inventory and reduce the risk of stockouts.
‍Myth: "A 3PL can only handle basic logistics tasks."
‍3PLs have a wide range of capabilities, and many offer a variety of services beyond just storage and transportation. For example, many 3PLs can also handle things like order fulfillment, reverse logistics, and even eCommerce integration.
Companies choose to work with a 3PL provider despite the misconceptions surrounding the use of 3PL because it is often the most cost-effective solution for their needs. Not only can 3PLs negotiate better rates for warehousing and transportation, but they have also put in the money to develop a logistical infrastructure. While companies like Walmart might have the capacity to spend the cash required for such an infrastructure, many other companies do not. In addition to this, they are also logistics experts and can help you strategize the best approach for your business.
Let’s go back to Sarah who runs “Fashion Avenue”. Before using a logistics provider, her business was growing quickly, and she found herself spending more and more time on manual tasks. Despite her best efforts, she was struggling to keep up with the volume of orders and was frequently running out of stock. But her day-to-day changed when she decided to partner with a 3PL logistics provider. The 3PL provider was able to take over the handling of her inventory, packing, and shipping orders, and coordinating with carriers. This freed up Sarah's time and resources, allowing her to focus on growing her business. Ultimately, picking a 3PL logistics provider saved Sarah both time and money. And it can do the same for your business as well. Â
A 3PL logistics partner is a comprehensive and integrated solution for your logistics needs, providing a wide range of services such as warehouse management, inventory control, transportation management, and other logistics services. They are a partner in your business and work closely with you to create a logistics strategy unique to your specific needs. On the other hand, a Broker is a middleman who connects shippers with carriers and other logistics providers. A broker is not responsible for the physical handling or storage of goods and typically provides less visibility and control over the logistics process.
3PL logistics partners are the go-to solution for many industries that require a full-service logistics provider. They rely on the expertise and resources this logistical partner has to offer. Industries such as e-commerce and retail, manufacturing and production, healthcare and pharmaceuticals, food and beverage, automotive, industrial and heavy machinery, fashion and apparel, and chemical and hazardous materials all extensively use 3PL logistics partners to manage their logistics operations.
Managing a 3PL logistics partner effectively is crucial for a smooth and successful logistics operation. You should clearly communicate your logistics needs, goals, and expectations to the 3PL logistics partner, including setting performance metrics and service level agreements (SLAs) that both parties agree on. Performance should be continuously monitored against the agreed-upon metrics and SLAs, and regular data and reports requested to help measure performance, identify trends and make informed decisions.
Monitoring the performance of third-party logistics providers is critical to ensure that your logistics operations run smoothly and meet your business needs. So how do you monitor your 3PL partner's performance?
Your business and your customers deserve the best. They depend on you to get their orders shipped on time and in one piece. Moving to a third-party logistics company for these needs allows you to keep your promises to those who buy your products. With this partnership, your orders can get there faster, with fewer mistakes, at a lower cost than if you were trying to achieve the same on your own. Meaning a 3PL solution is your ticket to keeping up with the competition!
Integrating with a 3PL logistics provider is a process that requires clear communication, collaboration, and planning. Start by reviewing your logistics needs, goals, and expectations with the 3PL logistics partner, including setting performance metrics and service level agreements (SLAs) that both parties agree on. Have a plan which outlines the logistics processes and procedures and includes details such as inventory management, shipping, and returns. Finally, monitor the performance of the 3PL logistics partner against the agreed-upon metrics and SLAs, and look for opportunities for improvement.
A 3PL will handle the warehousing, shipping, and fulfillment of orders for an eCommerce business. This can include tasks such as receiving and storing inventory, picking and packing orders, and arranging for shipping and delivery. Using a 3PL provider can also help eCommerce businesses focus on their core business, such as product development, marketing, and customer service, instead of worrying about logistics operations.
eCommerce integrations refer to the connections and links established between an eCommerce platform and other software systems or tools used to manage and run an online business. These integrations can help automate and streamline business processes. Here are a few examples of eCommerce integrations:
As eCommerce needs continue to evolve, choosing the right 3PL consultant has become increasingly important for business owners. A good 3PL consultancy will guide you through selecting the best features and services, understanding pricing structures, managing your inventory, and creating efficient supply chain processes beyond contract negotiations with carriers and fulfillment centers.
When considering potential consultants, keeping these strategic elements in mind can help you land one that makes sense for your specific situation. This blog post will unpack How to Choose the Best 3PL Consultant options to fit your business needs!
Third-Party Logistics (3PL) is a business outsourcing service in which a company contracts out its logistics and distribution functions to another company. 3PL providers handle many logistics functions, such as transportation, warehousing, and inventory management, allowing the outsourcing company to focus on its core competencies. 3PL providers can also offer value-added services such as packaging, assembly, and reverse logistics.
3PL consultants are professionals who specialize in helping companies optimize their logistics operations by using third-party logistics providers. They work with companies to understand their logistics needs and help them find the right 3PL provider to meet them.
Experienced consultants typically have a deep understanding of the logistics industry and can provide a range of services and resources, such as:
3PL consultants typically work with companies in several key stages:
For those who would like comprehensive logistics operations management, full-service consulting is the way to go. Working with a 3PL consulting service can be tailored to address a client's specific needs and goals. This covers everything from the initial assessment and planning to implementation and ongoing monitoring of the company's operations.
For projects that require short-term assistance, project-based consulting works well for quick results. Advisory services give the advantage of having a specialist available when needed throughout an organization's lifetime, while retainer-based consulting locks in a set number of hours per month from the consultant for support and advice. Whatever need arises, there is likely an option to match it!
When evaluating and selecting a new 3PL vendor, a 3PL consultant typically uses a set of objective criteria to ensure that the vendor is a good fit for the company's specific needs.
These criteria will help the consultant ensure that the vendor is a good fit for the company's specific needs and can help the company achieve its logistics goals.
The scope of a 3PL consultant's work is comprehensive, ranging from helping companies assess the pros and cons of outsourcing versus insourcing to evaluating existing 3PL relationships and improving upon them to tendering and negotiating with new potential providers.
With their expertise and market knowledge of logistics, 3PL consultants are equipped to provide insights into various solutions that can help businesses streamline their operational efficiency and reduce warehouse and fulfillment services costs. By assessing and asking the right questions and selecting and using the right contract logistics solutions that match the needs of a specific business, these consultants ensure businesses can remain competitive in the ever-evolving market.
A 3PL consultant can be essential in helping a company find the right vendor for their logistics needs. To ensure that the selected vendor is the best fit, the consultant follows a disciplined methodology that begins with defining the company's requirements and researching and identifying potential vendors.
The consultant then evaluates and shortlists them, issuing a Request for Proposal (RFP) to solicit detailed responses from each. Once these are evaluated, the consultant selects the best vendor and helps with the implementation process.
Finally, they review and monitor the performance of the new vendor toward meeting business goals. In this way, companies that use 3PL consultants gain access to an accounting professional who can help them make informed decisions regarding their supply chain strategies, goals, and objectives.
The deliverables for a 3PL consultant when selecting a vendor can vary depending on the specific project and the company's needs. However, in general, a consultant's deliverables may include the following:
Choosing the best 3PL consultant for your company can be a challenging task, but there are several key factors to consider that can help you make an informed decision.
Selecting the right 3PL partner for a company's logistics operations is an important task that should not be taken lightly. A consultant must have both IT and Industry IQ to choose the most suitable vendor.
IoT IQ ensures that the selected vendor has all the technical capabilities needed, such as integration with existing systems, security, scalability, support, and maintenance.
Meanwhile, industry knowledge is necessary to recommend suitable vendors that align with the company's goals and evaluate their performance against competitors in the market.
A consultant possessing a strong technical understanding and industry insights can help make sure that the right 3PL partner is chosen and guarantee successful collaboration between both parties.
Here are some key takeaways from the information provided about 3PL consultants and the 3PL selection process:
Businesses need to look for a 3PL consulting firm that can provide them with an integrated eCommerce logistics solution. This will allow the company to manage its inventory better, understand pricing structures, and create efficient supply chain processes. Choosing the best 3PL consultant can be overwhelming, with so many options available. But by considering these strategic elements, you can find a consultancy that fits your business needs perfectly!
A 3PL (third-party logistics) provider offers outsourced logistics services, which involve the management of one or more facets of procurement and fulfillment activities.
3PL consulting evaluates the economics of outsourcing some or all of the business's warehouse operations to a third-party logistics provider.
ShipHero is the best third-party logistics (3PL) software for businesses looking to be maximally efficient, cut costs, and offer complete customer visibility. ShipHero’s WMS solution can dramatically amp up your warehouse output by 30% while substantially reducing mis-ships and smoothing task optimization, simplifying your shipping processes. With ShipHero, you’ll have the tools to navigate an increasingly competitive industry successfully while being equipped with reliable insight into every action to improve operations, build customer satisfaction, and ensure your business reaches its full potential.
To evaluate the ROI of 3PL consultants, assess the cost savings and operational efficiencies they bring to your business. This includes improvements in supply chain processes, reductions in shipping costs, better inventory management, and increased customer satisfaction.
A successful 3PL consultant should help streamline your logistics to result in long-term savings and growth.
A 3PL specialist is an expert in third-party logistics, focusing on optimizing the supply chain by selecting, managing, and overseeing relationships with 3PL providers. They help businesses improve their logistics operations to ensure efficient inventory management, transportation, and fulfillment, all while minimizing costs and enhancing service quality.
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Your business deserves the best. And you can’t get that unless you utilize business processes that work for you. Software is the top resource for “shortcuts” in our world today. When many of us encounter a problem or a task which is terribly manual, what's the first thing we do? Find an app or software to fix that problem. Your warehouse management processes can be handled the same way whether you are a third-party logistics provider, or looking for a third-party logistics provider. Here we’ve included insight into the top 3PL WMS softwares available to enhance your business and how to maximize the benefits they offer. Enjoy!
As you likely know, 3PL stands for Third-Party Logistics. In the context of warehouse management systems (WMS), 3PL refers to a service provider that manages the storage and distribution of goods on behalf of a company. When it comes to WMS, a 3PL provider can use the software to manage their client's inventory, track and trace goods and shipments, and optimize warehouse operations for their clients. This can include receiving, storing, picking, packing, and shipping of goods, as well as providing real-time visibility into inventory levels and order status. The 3PL provider takes care of the physical handling of goods, while the WMS software helps them to manage the inventory, orders, and logistics operations, such as tracking and reporting.
3PL WMS software is a comprehensive and sophisticated warehouse management system designed to streamline and optimize the operations of third-party logistics companies. It encompasses a wide range of functionalities, such as inventory management, order fulfillment, transportation management, and analytics, all aimed at increasing efficiency, reducing costs, and improving the overall performance of the warehouse.
With its advanced features and intuitive interface, 3PL software empowers logistics providers to effectively manage their warehouse operations, from receiving and storing goods, to picking and shipping orders, to tracking and reporting on inventory levels. This technology is an essential tool for companies that rely on third-party logistics providers to manage their warehouse and supply chain operations, as it enables them to gain real-time visibility into their inventory, improve their operational efficiency, and enhance customer satisfaction.
Implementing 3PL software is just the first step in maximizing the benefits it can bring to your warehouse operations. To truly get the most out of your software, it's essential to customize it to your specific needs. This means configuring the system to optimize it for your warehouse operations, such as automating repetitive tasks, creating custom reports, or integrating with other software. By customizing the software to your specific needs, you'll increase efficiency and get the most out of the software.
Another key tactic to keep in mind is continuously monitoring and analyzing data. By regularly monitoring the system's performance and analyzing the data it generates, you'll identify areas for improvement and make adjustments as needed. Additionally, you can use the data to make informed decisions and optimize your operations. By doing this, you'll keep your warehouse operations running smoothly and efficiently.
Much 3PL software also has mobile apps that allow you to access and manage your warehouse operations from anywhere, at any time. This can be especially useful for warehouse managers and supervisors who are always on the go. Utilizing this mobile capability can help you stay on top of your warehouse operations even when you're away from the office.
Another benefit of 3PL software is the ability to plan and optimize your inventory. The software can provide real-time data and analytics, which will help you keep track of what products sell well and what products don’t. This will allow you to make informed decisions about what products to order and how much of each product to stock. By doing this, you can optimize your inventory and reduce the costs associated with overstocking or stockouts.
Finally, good 3PL software can also help you improve customer service. By providing real-time data on inventory levels and order fulfillment, you'll provide accurate and up-to-date information to customers. This will allow you to resolve any issues quickly and improve customer satisfaction.
ShipHero’s WMS can do all this and more, check us out!
Whenever you start with new software you must define what you need the software to do for your business. That way, once you have identified software that fits your needs, you can set it up to improve your business processes based on the KPIs you need to see improvement from. This software is often used for automating repetitive tasks, creating custom reports, or integrating with other software. And don’t forget your team. Training your team on how to use the software is crucial to ensure the smooth implementation and operation of the system. Once implemented, monitoring and analyzing the data generated by the system will help you identify areas needing adjustment and a regular maintenance cycle will ensure continuous uptime.
When purchasing a 3PL WMS software, it's essential to look for specific features which will enable you to optimize your warehouse operations and gain a competitive edge in the market. Here are a few lesser-known tips and tricks to keep in mind:
The cost of 3PL WMS software can vary widely depending on the vendor, features, functionalities, warehouse size, and number of users, and it can range from a few thousand dollars for a basic system to tens of thousands of dollars for a more advanced solution, you should also consider the ongoing costs such as maintenance, support, updates, and additional modules. Do your research, compare different options, consider the benefits the software will bring to your operations, and find the one which best fits your needs and budget, considering also that some vendors may offer lower upfront costs but have higher ongoing costs, while others may have a higher initial price but offer more features and support.
ShipHero's WMS (Warehouse Management System) software streamlines and automates the process of managing warehouse operations with its advanced features and intuitive interface. You can easily track and manage inventory, fulfill orders, and optimize operations for maximum efficiency and productivity. Using ShipHero's WMS software saves you time and money because you can customize ShipHero's WMS software to meet the specific needs of your business whether managing a small stockroom or a large distribution center. The software also provides real-time visibility into inventory and operations, allowing you to quickly identify and address any issues that may arise. This avoids stockouts, reduces errors, and improves customer satisfaction.
WithoutWire's WMS software is a cloud-based solution that helps companies manage and optimize their warehouse operations. It offers a range of features such as inventory management, order fulfillment, and real-time tracking to help businesses increase efficiency and productivity in their warehouse operations. WithoutWire software has a focus on the fashion and apparel industry, offering specific features tailored to this market such as style and size matrix management, and pre-pack functionalities. They also utilize RFID tracking and automated warehouse robots to enhance their speed.
Logiwa provides a range of features such as inventory management, order fulfillment, real-time tracking, and advanced reporting to help businesses increase efficiency and productivity in their warehouse operations. This software offers advanced features such as multi-client and multi-warehouse management, and integration with multiple sales channels and shipping carriers, which can help companies to streamline their order fulfillment operations, and manage more complex logistics operations. Additionally, Logiwa WMS also offers an advanced barcode scanning functionality and mobile device compatibility, which allows for real-time inventory tracking and warehouse operations management.
Synapse WMS provides a range of features such as inventory management, order fulfillment, real-time tracking, and advanced reporting to help businesses increase efficiency and productivity in their warehouse operations. Synapse software offers advanced features such as multi-channel integration, EDI integration, and RFID scanning, which can help companies to streamline their order fulfillment process, and manage more complex logistics operations. Synapse also offers a more robust analytics and reporting functionality, which can help businesses make data-driven decisions about their warehouse operations.
This company focuses on leveling the playing field within shipping. Their software will search all carrier rates so you can select the best service for the best price. It is a multi-carrier shipping platform built for eCommerce businesses that help business owners know their products will be shipped in good hands. Plus through their software, you can track shipping from any carrier and you have access to performance indicators to measure their efficiency. Please note, while this is not a WMS software, it is focused on relieving your stress when it comes to your shipments so it’s a worthwhile platform to consider.
Choosing the right 3PL WMS software requires a strategic approach that involves defining your business objectives, researching different software options, considering scalability, and looking for automation capabilities and integration options. By taking the time to carefully evaluate different options and considering the key factors that are essential to your business, you can ensure that you select a 3PL WMS software that is tailored to your specific needs and will help you achieve desired outcomes such as increased efficiency, reducing costs, and improved performance of your warehouse.
The WMS you choose for your company should not only fit your needs but also be easy to use. The goal here is to find software that gives you more power and time back in your day. While the initial setup of any software can be painful, the WMS you choose will likely have a consultant to help walk you through every step of the setup. If you want to speak to an eCommerce WMS expert, come chat with us at ShipHero!
A Tier 1 WMS, or Warehouse Management System, is a type of software that is typically used by larger organizations or those with more complex warehouse operations. These systems tend to have a wide range of functionalities and capabilities and are typically more expensive than other types of WMS software. They are often used by companies that operate multiple warehouses, have a high volume of SKUs or require advanced features like RFID and real-time tracking. They also tend to integrate with other enterprise systems such as ERP, CRM and eCommerce platforms. Tier 1 WMS solutions are often provided by large, well-established software vendors, and are known for their robustness and scalability. They are designed for large companies with a significant investment in warehouse operations and logistics.
There are several different types of third-party logistics companies (3PL), but the four main types are:
It's worth noting that some providers may offer a combination of these services and that the line between these categories can sometimes be blurred, depending on the specific 3PL provider and the services they offer.
The integration of artificial intelligence (AI) and robotics, IoT devices, and cloud technology is revolutionizing the warehouse management system (WMS) industry. AI and machine learning algorithms are used to optimize warehouse operations and provide real-time data and analytics. Robotics are used to automate tasks such as picking, packing, and transportation. And IoT devices allow for real-time monitoring and tracking of inventory and equipment, and cloud-based WMS allows warehouse managers to access their data and control their operations from anywhere at any time and also allows for easy scalability. These trends enable warehouse managers to optimize their operations, improve efficiency, and reduce costs.
Whether you’re an established eCommerce brand or have just started, you know that the tools you use are important to making your business run. And one of the most important tools you can have is software that works.
The right Warehouse Management System (WMS) will handle automation rules, receiving, picking, packing and rate shopping in just a few simple steps. ShipHero does this by making the complicated, easy - not simple, just easy.
We’ve been working to provide our clients and prospects with more than just awesome software - we want to share our best practices and the lessons our clients have learned as they use our WMS to grow their own brands. If you want to learn more about warehouse management systems, you’ve come to the right place. Read on for a complete guide on warehouse management systems in 2023.
Warehouse management is the process of overseeing all operations and activities in a warehouse. This generally includes receiving, picking, packing and shipping goods, planning workloads, training staff and handling customer returns.
While warehouse management is barely visible to customers, it’s integral to ensure goods are delivered on time. Good warehouse management ensures every activity is run as efficiently as possible, from maximizing inventory storage to organizing goods for easy picking to ensuring returns are handled professionally.
However, running a warehouse can be costly, especially for smaller eCommerce businesses. Instead of managing their own warehouses, they sometimes hire third-party logistics (3PL) companies. Outsourcing warehouse operations helps eCommerce businesses focus on expansion and sales instead of spending considerable time and resources to manage inventory and take customer orders.
A warehouse management system (WMS) is software that assists you in the warehouse management process. A warehouse management system gives you real-time updates on your inventory levels, warehouse team productivity and order fulfillment progress.
Warehouse management systems are essential for managers because they can use them to gauge work performance and spot improvement areas. They also provide managers with the data and reports to make informed business decisions.
The best warehouse management systems assist your company with five key processes:
One of the primary purposes of a warehouse is to receive and store inventory items from a manufacturer or distributor. Warehouse management systems let you scan and organize each new item upon arrival and storage, so you’ll know which items have arrived and where they're stored.
Inventory tracking ensures you get real-time updates on your stock levels. This helps in determining how many items you can sell and whether you should order more items based on accurate forecasts of consumer demand.
As your eCommerce business grows, inventory tracking will become even more important because you may handle hundreds of goods and dozens of different product types simultaneously. Manual inventory tracking is more prone to human error and may result in costly mistakes.
When employees pick and pack items, they take the goods from warehouse shelves and pack them for shipping. Warehouse management systems can generate picking lists that instruct your warehouse team to pick items as efficiently as possible.
Your warehouse management system also automatically generates shipping labels, which packers attach to products after packing them.
Warehouse management solutions let you track the shipping progress in real time. You can also show the shipping progress to customers so they know where their items are at any time.
Your warehouse management system should provide advanced reporting features that cover order fulfillment accuracy, staff inventory forecasting and warehouse expenses.
Automating report creation means you don’t have to spend much time gathering data. Instead, you can immediately use the insights from these reports to improve your warehouse operations.
Warehouse management systems are useful for any company that operates a warehouse, regardless of industry. Here are examples of industries that can benefit greatly from WMS:
Manufacturers need to have good warehouse management systems because they have complicated warehouse operations that may involve combining multiple materials into new goods.
A WMS can help manufacturers track each material as they’re sent in for processing and alert the staff to reorder when stocks are running low to keep production running. The system can also regulate production line speed based on consumer demand forecasts, preventing overstock or understock.
Managing a retail chain is challenging because you operate multiple stock rooms in each store. A warehouse management system helps retail business managers by tracking items as they move from your main warehouse to individual stores. It also monitors stock levels in each store and puts orders in whenever an item is running low in stock.
Food and beverage warehousing is trickier than most because products often need to be stored at specific temperatures and have expiration dates. A WMS for F&B manages shelf placement to ensure everything is stored in its appropriate places. It also regulates picking and packing to guarantee all items shipped don’t expire before they reach store shelves.
Warehouse management is at the core of every third-party logistics company, and they need a warehouse management system to excel in their job. Many 3PLs use adaptable warehouse management software to meet the various demands of their clients and juggle multiple warehouse operations simultaneously.
Some third-party logistics companies even choose a baseline warehouse management system and develop their own modules according to their needs, creating client-specific dashboards tailored to every job.
You should use a WMS because manual warehouse management is prone to human error, especially if you run a large eCommerce business.
Here are five other reasons why you should use a WMS:
Warehouse management systems work by monitoring and automating key warehousing processes. Here’s a look at how warehouse management systems help you in those areas:
Tracking the goods that enter and exit your warehouse is one of the primary functions of a WMS. For incoming items, the WMS will register them in the system and send the products to the appropriate shelf or container for storage.
For outgoing items, the WMS will show you which shipping service is delivering the products and provide real-time tracking information. The WMS can also show the tracking information to the customer, so they know when their products will arrive.
A WMS helps you track and manage physical inventory levels in the warehouse. When inventory stock starts to get low, the WMS can notify you to order more from the distributor or supplier before stock runs out.
When a customer order comes in, your warehouse crew picks and packs the items to get them ready for shipping. Warehouse management systems create picklists to help your team pick items faster. The WMS also creates shipping labels, so the items can be ready for shipping as soon as they’re packed.
Real-time warehouse reporting is one of the greatest strengths of a WMS. You can easily get insights into your warehouse's operation by generating real-time reports. Instead of spending hours gathering data, you can immediately use this information to make informed decisions and improve your warehouse team’s performance.
While it may be a considerable investment, a warehouse management system pays for itself in many ways. Here are eight great benefits you’ll get by implementing a WMS:
Inventory control involves managing your warehouse’s inventory levels to prevent understock and overstock. Automating inventory control through a warehouse management system means you don’t have to spend time checking inventory levels regularly. Instead, your system will notify you when it’s time to order new products.
Transparency and traceability are essential for both businesses and customers. Tracking where products are in real-time allows you to identify bottlenecks and delays in the supply chain. On the customer side, real-time product tracking ensures they know when their items are arriving.
Some product safety regulations also require your goods to be easily traceable to prevent fraud and counterfeiting. From a safety standpoint, knowing where a product comes from and where it’s going also makes product recalls easier when necessary.
The relationship might not be immediately clear, but a warehouse management system contributes to customer service. Your WMS gives you real-time updates on how many items are in stock and which ones are out of stock, which means customers likely won’t order something that’s out of stock.
Warehouse management improvements help you ship products quicker, satisfying your customers’ demands for fast deliveries.
There are many tasks in your warehouses or distribution centers, like picking and packing orders, loading trucks and handling returns. Your WMS can create these tasks and assign them to the relevant employees immediately based on where they are in the warehouse.
Your software’s task management features also prevent workers from walking from one end of the warehouse to another when completing their work by assigning them to well-defined work zones, increasing overall warehouse efficiency.
Containerization is when you merge multiple individual shipments into a single container to ship together. You can save on shipping costs by sending multiple items in one big batch.
Your WMS assists in containerization by choosing which items go into which container, ensuring they stack well and nothing gets crushed or damaged in transit.
A warehouse management system increases the overall order processing and fulfillment speed by making product picking, packing and shipping more efficient. You can deliver more items to more people by increasing order speed, increasing total revenue and customer satisfaction.
Without a WMS, you may need to create shipping labels manually, which takes a lot of time and effort. A warehouse management system can automatically generate shipping labels, so your warehouse team only needs to attach them to packages before sending them to the carrier.
Labor management features provided by a WMS track your warehouse staff performance in real time, giving you insights into how your team works. Tracking labor lets you identify possible logistics bottlenecks, pinpoint improvement areas and learn which employees may need extra training to succeed.
There are four warehouse management system types, each with unique benefits and drawbacks. Here’s a look at each WMS type:
A standalone warehouse management system is the most basic WMS in this list because it only offers warehouse management features and nothing else. A standalone WMS is usually installed on-premise, meaning the vendor will come to your warehouse and install a physical server for the WMS.
Standalone warehouse inventory management software is typically the most affordable due to its limited features, but it may not be enough if you need extra functionality from your WMS. Standalone warehouse management systems are best for businesses without a large software budget and limited warehousing needs.
A cloud-based warehouse management system means the vendor provides its services through the Internet without any physical on-premise installations. Cloud WMS users usually pay a subscription fee to use these services instead of an upfront expense, making them more affordable for new businesses without large premises.
Cloud-based WMS is scalable, meaning you can pay for extra accounts and features if necessary. It’s also easier to update since the vendor can do it online. However, as with most cloud-based services, you need a strong and stable Internet connection to make the most out of a cloud-based WMS.
ERP (enterprise resource planning) is a software bundle that merges numerous business functions like accounting, inventory and human resources in one package. It’s a good choice if you want to merge all your company information into one dashboard that’s accessible by all employees.
While ERP systems often have a warehousing or inventory management module, it’s not the system’s core functionality. Additionally, implementing ERP is often expensive and time-consuming, so you may be better off implementing dedicated warehouse management software if you can’t commit to full ERP implementation.
Supply chain management systems work at a much broader scope than a WMS but generally still provide warehousing features. These modules work best for companies that work with numerous supply chains, like manufacturers and retail businesses.
Choosing the best WMS means picking the one that caters to all of your warehousing needs at a reasonable price. Here are five tips to help you pick the right WMS for your business.
You should first identify what you need out of warehouse inventory management software. Create a list of feature priorities based on your requirements as a guide when shopping for warehouse management systems. Don’t blindly follow the latest warehouse technology trends because what other companies need may not be what your company needs.
Ensure you have a budget before shopping for a warehouse management system. Search for popular WMS providers online, and estimate how much you’re willing to spend on the features you need.
These days, manual demand forecasting can be unreliable, and you may find yourself out of stock in periods of high demand or overstocked in periods of low demand.
If your product demand fluctuates according to the seasons, it might pay to choose a WMS with demand forecasting. A warehouse management system’s demand forecasting can use historical sales to predict popular product demands, letting you increase or reduce orders based on the forecasts.
Purchasing a warehouse management system isn’t a one-and-done deal. You need to build a relationship with the vendor because they’ll provide technical support and apply updates regularly. To pick the right vendor, note how helpful their representatives are and how in tune they are with your needs and requirements.
When shopping for warehousing software solutions, make sure they provide you with room to grow. Ask your vendor representative about how much scalability and customizability their software has – this ensures it can meet your business needs even when your company grows.
A warehouse management system makes your warehouse processes more efficient through various features like automated reports, pick list generation and shipment tracking.
While a good WMS offers many benefits, it’s often a major financial commitment, so you need to choose the right one before implementing it. To do so, you need to identify your company’s needs, define a budget and pick the right WMS provider that can scale with your business.
You can improve warehouse management by measuring your current performance and identifying areas for development. From there, you enhance your warehouse management by:
A WMS (warehouse management system) assists you in the warehouse management process by giving you real-time inventory updates, automatic report creation and demand forecasting, among other features.
The cost of a warehouse management system varies depending on the vendor and the features you choose. Expect to pay at least $1,500/month for an entry-level cloud warehousing system.
The secret to success with any eCommerce business is to keep your customers happy. Rapid order fulfillment, free shipping, and excellent customer service are some of the best ways to do that. When determining an eCommerce business plan, many fail to factor in (or underestimate) product returns.
Returns are a necessary evil for any eCommerce business, and if you don’t handle them properly, they could swiftly break you. Frequent returns negatively impact your profit margins but also destroy conversion rates, bring down customer loyalty, and threaten the survival of your business as a whole. Developing and enforcing a strong returns policy is a must if you want your business to be successful. Counteracting return fraud should also be a focus to further prevent lost profits.
In this article, we’ll cover the ways in which your return policy impacts sales and how to change your policy to benefit your business. We’ll also cover some of the best eCommerce return practices to make sure that returns don’t ruin your business.
To a certain degree, keeping your customers happy is about transparency. Customer expectations in the world of online shopping are high considering they can switch to a competitor’s site or Amazon in just a few seconds.
The customer experience in today’s world is critical to success. Your customers want to know that the products they are purchasing are of the highest quality and they are getting the best value for their money. Customers want to know their order will be processed quickly and efficiently and that they can contact customer service with questions or concerns, which will be resolved in a timely manner. They also want to know what your return policy is upfront, before clicking “buy”.
Your eCommerce return policy affects your business more than you may realize. According to research, about 67% of online shoppers will check a company’s return policy before buying. What do customers like and dislike about return policies? Let’s take a look:
As an eCommerce business owner, you need to account for all variables when it comes to profitability. While it might cost your company money to offer free returns, doing so could, in turn, boost your sales. In fact, customers are twice as likely to make a large purchase (over $1,000) online if free returns are offered.
To give you an example of what a good return policy can do for your business, consider the Zappos model. They were the first eCommerce retailer to offer a 365-day, free two-way shipping, and returns policy. What’s more, the free return shipping policy allowed customers to return their shoes for any reason. This was absolutely unheard of in 1999.
According to Zappos’ VP of Services and Operations, the company’s best customers have the highest return rates (up to 50% of everything they purchase) but they also spend the most money which makes them the company’s most profitable customers. At first glance, it may sound like their return policy is hurting business but, over time, those loyal customers end up spending more, which offsets their returns.
Simply put, a lenient return policy (when properly executed) can make a huge difference for your business and for your profit margins by creating a more loyal customer base.
In order to improve your returns policy, you first need to gain a better understanding of who is returning your goods and why. Here are some of the most common reasons for returns:
In addition to identifying why certain items are being returned, it is also helpful to develop customer profiles to determine who is making the most returns and how to prevent it from damaging your business. For example, some customers intentionally take advantage of lenient return policies by purchasing items to wear once and have no intention of keeping them after. There are also others who order multiple sizes and options for the sole purpose of trying them on at home.
Having developed a better understanding of your customer base and the most common reasons for returns, you can now work on developing a stronger return policy.
Now you understand that the majority of customers will check a company’s return policy before making a purchase. It is also important to note that nearly 50% of customers will continue buying from a company if they have a hassle-free return policy. So, how do you create a return policy that improves your profit margins while also retaining your customers?
Here are some simple tips to help you develop a strong return policy that wins over customers while keeping return rates low:
Your customers want to know that if they aren’t satisfied, they’ll be able to return the item easily. For example, if you sell footwear, your return policy can state that all shoes can be returned within 30 days if they’re still in good condition.
A clear return policy makes it easy for customers to understand which products can be returned and which can’t. If you have products that have a separate return policy, be sure to list them on the product page so customers are aware of any special return policies.
Your customer shouldn’t have to search for it. A strong return policy should show that you stand behind your product to instill confidence in your business to build trust with the consumer.
You should personalize your return policy to your business and products. While there are templates available to help you craft a return policy, they’re meant to be customized to your brand’s unique return policy.
Avoid phrases like “you must” and “you are required to.” You want your returns process to be easy, not scary.
Some customers expect immediate refunds or a gift card when returning a product. Your return policy should list out the steps involved during the return process so they know how it all works. Make it clear whether you offer an exchange for returned products or if you provide store credit or a full refund.
The bane of any online retailer’s return policy is deciding between full refunds or store credit. While there is no one clear answer as to which one to choose, we recommend surveying your customers to see what they’d prefer.
Tell the customer whether they need to use the original packaging or if they can use their own. Tell them if they need to include the order slip and if they can print a return label online.
If they understand the return policy, they can communicate it to your customers quickly and efficiently. If your staff is confused about the returns policy, it could lead to negative interactions with customers when they try to return products.
No company is perfect but having a strong returns policy will prevent returns from destroying your business. Even with a strong policy, however, you should be prepared to take a hit now and again. If you make a mistake with shipping or packaging, you may be forced to eat the cost yourself for the sake of keeping your customer happy. Unlike physical stores, customers can’t just walk in and return a product at no cost to you. Always keep the customer and your long-term bottom line in mind.
The term reverse logistics is sometimes used interchangeably with returns, but they are not quite the same. Technically speaking, reverse logistics refers to monitoring the life-cycle of a product after it arrives at the customer’s door. This includes the ways the product can be reused, how it should be disposed of, and other ways to create value with an expired product – it also involves the return of products from the end consumer back to the manufacturer.
In order to develop a reverse logistics procedure, you need to first think about the different stages a product goes through during a return. First, you’ll need to consider the physical shipping of the returned product – how you will get it from the customer back to the warehouse. Next, you may need to test the returned item to identify existing flaws and document any problems. Then, you’ll need to repair, recycle, or restock the item.
To help you get a better understanding of the reverse logistics portion of your company’s supply chain, there are four key analytics to consider:
Once you’ve gathered this information, you can gain a deeper understanding of your company’s reverse logistics and use that information to optimize your workflow. Improving the efficiency of your reverse logistics system provides numerous benefits, including the following:
When you plan ahead for returns and implement a system to ensure that orders are fulfilled correctly, you can minimize related costs for administration, shipping, quality assurance, tech support, etc.
By implementing a reverse logistics system, you can increase the speed with which orders and returns are processed which keeps your customers happy.
A poor return policy can prevent a customer from coming back, but a strong policy instills confidence in the brand and makes customers more likely to purchase again, even after you’ve made a mistake.
By using a reverse logistics system to gather data on returns, sellers can decide how best to use returned products to reduce losses. You could fix and restock the product, scrap it for parts, or repurpose it in another market.
Handling returns in a quick and efficient manner is the key to keeping your customers happy. With a strong returns policy, you can minimize the damage caused by shipping errors, manufacturing defects, and other issues that necessitate a customer return. When your customers feel like they can trust your company to correct errors in a timely manner, they will be more likely to become repeat customers.
Fulfillment starts as soon as your customer hits the checkout button on the eCommerce platforms and purchases the products in their shopping cart. Once the site confirms the order, the chain moves forward. Small-scale eCommerce stores often store their inventory in their garages. At the same time, as you go up the scale, vendors usually employ the services of inventory storage facilities and warehouses. Upon confirming the purchase, service providers package, label, and ship the products to the destination address.
Shipping can be pretty challenging to handle on your own, especially if you have a growing business. This is the point where third-party logistics (3PL) companies can be a big help. They optimize the fulfillment process and cater to your needs, and even help you minimize logistics costs. Various companies have different shipping policies and shipping rates, such as Amazon Prime, which offers overnight shipping.
But not every business can pull this off. This is why your company’s shipping policy should be based on a combination of your budget and your customers’ needs.
There are many factors that eCommerce merchants have to account for when it comes to shipping. All the seemingly small details contribute to your overall shipping costs and total transit times. These factors ultimately determine customer satisfaction and directly impact your business’s reputation and future growth. Since your company’s eCommerce shipping strategy is so important, it's worth investing time and resources to conduct proper research. Here are some of the best practices that online stores employ for shipping, to help you decide which one may suit your business best.
An effective way to reduce shopping cart abandonment is to provide some incentive to your customers. Companies usually use discounts and coupons to their customers for this purpose. Offering free shipping to your customers makes them feel more comfortable about placing an order.
Contrary to what the name might suggest, free shipping isn’t actually free. Either you take the hit and pay for the fees outright, or the fee is absorbed in a way that customers pay for it. You can do this by incorporating shipping costs into the sale price of your products. This way, you can offer free shipping without compromising your own profits.
Another popular shipping strategy among online vendors is charging real-time carrier rates. This process is transparent and gives your customers a little wiggle room. How? Well, let's say you partner up with multiple carriers. You can now let customers pick and choose the shipping option that best suits their need.
Shipping labels like FedEx, USPS and DHL have different shipping costs, and no one carrier offers lower rates across the board - the pricing depends on numerous factors. eCommerce platforms such as Shopify integrate real-time shipping rates of these carriers into their dashboard so that they are easy to handle. Customers can then choose what works for them, whether it is overnight shipping, two-day shipping, or flat-rate mail.
If you don’t want the hassle of calculating shipping prices for each package, then flat-rate shipping is another reliable option. As the name suggests, this shipping option charges a single rate for each shipping order, regardless of the size or nature of the product.
This option is most suitable for businesses that sell a small variety of products with similar dimensions and weights. However, be sure not to set a very high flat rate for the items - it might scare away the customers. Postal services like USPS usually have several flat-rate shipping options.
If your customer base is near to your inventory storage facility, then offering local delivery is one way to go. Keep in mind, though, that this only works for local customers. You can set up the local delivery zone through the use of zip codes - customers within this area qualify as local customers.
Suppose you are catering to a large customer base outside your local area. In that case, you can still offer the local customers this option by putting an appropriate button at the checkout. The local delivery option can be set to be free of charge or at a low flat rate, depending on your budget. This option is best for strengthening your local customer base.
An essential part of devising your shipping strategy is determining your shipping costs. If you partner up with a shipping label, couriers base their shipping rates on a number of factors. These factors range from the package weight and size to the origin and destination address. The bigger the product is and the farther away you have to send it, the more you'll typically end up paying for shipping.
Before settling on your company’s shipping rates, be sure to assess the following factors:
One thing eCommerce merchants should focus on is their profit margins - they determine the success of your business. Shipping fees are a significant part of the total fulfillment expenses - deal with them improperly, and you could end up losing money. Before you set up the total price of a product, consider all the little expenses like shipping costs, credit card fees, and packaging, in addition to the cost of the product. Your sale price should leave room for profit after taking care of all of these expenses.
From a historical perspective, packaging and shipping were just ways to get the products to the customer. The up-gradation of technology and the evolution of business strategies have now transformed packaging and shipping into a marketing opportunity. And why not - telling your brands’ story with your product packaging and creating a memorable unboxing experience is a brilliant opportunity.
Packaging inserts and other items could take the whole experience up a notch when the customer unpacks their order - think of unboxing videos online and the publicity they gather! Of course, this type of marketing is another shipping expense and would add to the total costs.
While you can utilize packaging for marketing purposes, don’t lose sight of its original purpose - the package still has to securely hold all the goods. Of course, the safety level for each product depends on its nature. For example, you can ship sweaters and other clothing items in poly mailers, and they would be secure. But for fragile items with higher value, you might need to invest in sturdy boxes and maybe even packing peanuts.
While the nature and size of the product help determine your packaging needs, your customers’ values and preferences also need to be accounted for. Eco-friendly packaging options are often pricier than the standard options, but they appeal to the growing number of eco-conscious consumers. This is why it pays to at least provide eco-friendly packaging as an option to customers.
Insurance and tracking help increase customer loyalty among online shoppers. They help secure your products and provide you with a safety net in case of any mishap. Shipping labels often provide relatively inexpensive or even free options for insurance and tracking. Like UPS and USPS Priority Mail, some carriers offer free coverage for mail orders above a specific amount.
International shipping requires proper customs documentation that details the nature and the size of the shipment. More often than not, international shipping also comes with specific regulations and tariffs. Of course, these fees add up to the total shipping cost. Suppose you are catering to a global customer base. In that case, it’s wise to set your shipping policy so that it includes these costs. If you let the customer know of the customs fee beforehand, they won’t be surprised at the unexpected charges once they receive the parcel.
Now that you have an idea of what constitutes the shipping expenditures, the next step is to determine whether to offer free shipping or not. Free shipping options are attractive to customers and directly impact conversion rates, but can your business afford to eat the costs and offer them? Well, several factors determine the feasibility of this decision.
The most important factor to consider is your company's available budget and revenue. If your profit margins are high, offering free shipping probably won’t hurt you. Moreover, package dimensions, and the destination’s zonal distance are also factors to consider. Don't forget to further account for the shipping rates of the shipping company you have partnered up with.
So far, we have discussed costs on the business owner’s end. Your customers are another critical determinant of your decision to offer free shipping. For example, if your target audience isn't really interested in free shipping, then you won't have to offer it in the first place. Of course, you can only determine how important free shipping is to them after doing some A/B testing. To sum things up, every company’s needs are different. As such, their decision to offer free shipping may vary.
Offering free shipping to your customers might not be feasible for every business. Sometimes, you end up losing more money than you make by taking this route. So, how can you realistically offer free shipping without breaking the bank?
‍Here are some pointers:
If you want to offer free shipping, first determine how it affects your business. As stated earlier, you can utilize shipping as a marketing opportunity. If so, then free shipping expenses can be considered as marketing expenses. This is a profitable investment if it drives your sales up.
If free shipping isn't doing much for your sales though, then the shipping costs might be an addition to the Cost of Goods Sold (COGS), and you may need to adjust your sale prices accordingly. Of course, new businesses might need to experiment a bit with free shipping to truly understand its impact. Test it first to determine whether the shipping expenses are a marketing expense or COGS.
One way to realistically offer free shipping is to limit the free shipping to specific zip codes and areas. For example, a US-based business might offer domestic free shipping. Still, since shipping to other countries like Canada and Australia comes with tariffs and customs fees, the free shipping offer might not extend to those countries. Shipping carriers base their rates on the zonal distance of the shipment, so it might be expensive to offer free shipping to far-flung areas. The point is to establish your free shipping policy on your carrier’s shipping rates and limit free shipping to nearby areas.
To offset your free shipping expenses, you can increase the rates of expedited shipping. This only works if your expedited shipping option is attractive enough. As an example, between free shipping with 10-day transit time and expedited shipping with 2-day transit time, chances are both options will attract a fair share of customers. So, you’ll be able to offer free shipping to the customers by surcharging the expedited shipping rates.
Setting a shopping threshold for free shipping is among the best practices employed by eCommerce platforms that offer free shipping. Amazon Prime is such an example. The logic behind it is simple enough. Customers must have a fair number of products in their carts before they can take advantage of free shipping. The profit margin from the sold goods covers the free shipping expenses.
eCommerce sites like Shopify have integrations or built-in shipping cost calculators that determine the total shipping costs based on several factors. These include the shipping partner, package dimensions and weight, the zonal distance between the point of origin and the destination, and the transit time.
You can calculate the total cost of shipping through several determinants - some companies use shipping software for these calculations. These shipping costs include packaging fees, transit fees, and in the case of international shipment, tariffs and customs fees. The transit fees depend on the carrier rates that differ for normal, flat-rate, and expedited shipping options.
eCommerce stores either go for self-fulfillment or employ the services of a third-party logistics (3PL) company. In the latter case, the fulfillment partner handles shipping by teaming up with different couriers. Once the eCommerce store confirms the order, the fulfillment partner sources the product from an inventory storage facility, packs it, and sends it out for shipping. The courier then ships the product to the destination.
The cheapest shipping option for a small business is the mail service. USPS is a great shipping carrier with affordable rates. If you want to cut down on the transit time, you could partner up with a third-party logistics company - they also sometimes offer discounts.
eCommerce shipping is a vital part of the supply chain, and one of the most expensive stages too. To avoid hefty transit costs, delayed orders, and unhappy customers, optimizing the shipping process is vital. A powerful eCommerce shipping solution like ShipHero can help you meet your business goals and optimize your shipping process.
Warehouse picking is an important part of any eCommerce business that is big enough that you have to store products in a fulfillment facility. Your goal is to choose the most efficient method for your warehouse picking process. Factors to consider include optimization of safety for warehouse workers and warehouse managers and increasing warehouse efficiency to reduce operating costs.
There is not one single best warehouse picking strategy for every business or every warehouse. For some types of products, such as perishable or nonperishable foods, it makes sense to use a first in, first out (FIFO) strategy to reduce waste, with the caveat that the warehouse pickers check the expiration dates on the food packages and ensure that the product will reach the customer before the expiration date. Last in, first out (LIFO) could be a better strategy if the products are not food and if the product line changes quickly, with new products being the most popular.
Warehouse order picking is the same thing as order fulfillment or product fulfillment. It is where warehouse workers, with the help of technology, find the items requested in a customer’s order in the warehouse and prepare them for their trip to the customer.
Choosing the best picking methods has a major impact on supply chain logistics. When you organize your warehouse so that warehouse workers do not have to travel to different areas and zones to find the pallets they need, the order fulfillment process goes much more quickly.
A well-thought-out order picking system makes warehouse workers more productive and improves worker morale. It is also safer. When workers are not going back and forth between different areas in the warehouse, there are fewer possibilities for accidents and injuries.
The less time it takes warehouse pickers to find the pallets they need, the sooner the products can leave the warehouse and continue their journey to the customer. The fewer steps the warehouse has to go through to ship the products, the less expensive the shipping is for the customer. Competitive shipping costs are important to the success of any eCommerce business.
The benefits of an efficient warehouse picking system are obvious for businesses that have their own warehouses. If you use efficient picking methods, you will be able to fulfill orders quickly with fewer errors.
These are the seven most popular picking methods in the order fulfillment process. Which method you should choose varies according to the layout of your warehouse and the types of products you ship.
Zone picking is a popular picking strategy. To implement this picking method, you must divide the warehouse into zones and dedicate each zone to a certain category of products. Items that customers often order together should be near each other in the same zone. For example, mouthwash should go in the oral care zone, because customers often order it with toothpaste and dental floss. It should not be in the “liquids in plastic bottles” zone, because customers do not typically order mouthwash in combination with pancake syrup and salad dressing.
Batch picking is a practical picking strategy for large warehouses. The warehouse managers assign a group of similar orders to a given employee for a given day. The effect is that each employee spends most of the day within one zone or within several adjacent zones.
Discrete picking is a great way to reduce errors if you have a small warehouse with a limited number of SKUs. A warehouse employee just goes through the list of items in the order and picks them one by one, even if it means traveling among different areas of the warehouse in a non-linear way. It is efficient and error-proof because human workers find it intuitive, like following a grocery shopping list.
In the wave picking method, an employee might be assigned to pick items from many different zones to fulfill all of his or her orders for the day. In wave picking, however, the management divides the day into “waves,” which are time slots during which certain employees are in certain zones. If Brenda is assigned to zone A from 9:00 until 10:30, she picks all of her zone A items for all of her assigned orders for the day during that time slot. Then she goes to zone B during the next wave and gets all of the day’s zone B items. This method is efficient because it reduces travel and errors. At the end of a wave, warehouse workers can double-check their lists to ensure they have picked all the necessary items from the relevant zone.
This order picking process is a combination of zone picking and batch picking. The warehouse managers divide the warehouse into zones. They also base each employee’s daily assignments on limiting that employee’s movement among zones during his or her shift.
This fulfillment method is a combination of zone picking and wave picking. The management divides the warehouse into zones. They also assign each worker to spend certain time blocks throughout the day in certain zones.
This warehouse picking strategy combines the zone method, the batch method, and the wave method. The warehouse has different zones for different items. The workers can go to different zones at different times of the day if their orders require this. Meanwhile, in any given shift, some workers are assigned to fulfill orders where all the items are in the same zone.
Choosing an efficient picking strategy is just one of the ways that you can improve the efficiency of your warehouse and your entire supply chain. Your choice of technology and the instructions you give to workers for implementing your chosen strategy also make a difference. Efficient management of a warehouse comes down to choosing the best strategies for managing time, space, and resources.
Using the right technology makes the order fulfillment process more effective. For example, devices that respond to voice commands can help employees find their items quickly and keep their eyes focused on one piece of equipment at a time. You should also provide multiple ways for employees to enter SKU numbers, in case one method experiences a glitch.Did you know that faulty equipment contributes to a large share of workplace accidents? Proper maintenance of pallets, forklifts and other pieces of equipment in the warehouse can prevent injuries that lead to costly workers’ compensation claims and, in severe cases, to OSHA fines. When you revisit your picking strategy, also be sure to inspect your warehouse equipment.
Goal setting has clear advantages in every industry, including warehouse fulfillment. Setting productivity goals for individual employees can help the entire warehouse perform more efficiently. Setting unattainable goals makes worker morale worse. Collect data to see how many items, on average, one employee can retrieve from one zone during one wave. If it is less than you had hoped, the solution could be to change the layout of the zone or even the length of the waves. Productivity should not just be a buzzword; managers should facilitate worker productivity instead of just bossing their employees around.
The warehouse layout is one of the factors that can reduce travel time and increase fulfillment speed. Another factor is the picking strategy you use, such as zone picking or batch picking.
The most frequently picked SKUs should be in easily accessible locations. This way, workers can reach them quickly, and the workers who replace the empty pallets of these products will not have to get past a lot of other pallets to replace them.
Warehouse logistics requires a lot of planning. Choosing the right layout for your warehouse and the right picking method can help you fulfill the greatest possible number of orders accurately and safely.
These are some common questions that warehouse managers ask about warehouse picking methods and the benefits of each method.
You can improve your pick rate by setting up an error-proof layout in each zone. This way, employees in that zone can quickly learn which items are where.
Discrete picking is most practical for small warehouses with a limited inventory. Larger warehouses should use zone picking, batch picking, wave picking, or some combination of these.
Picking and packing quickly takes practice. It also helps to have the most efficient warehouse picking method for your fulfillment center.
What is a third-party logistics provider (3PL) and how could it improve your business? In a world of continual shipping restraints and high customer expectations, a 3PL could be your solution. Below we will detail exactly what you can expect from using a 3PL and the benefits you’ll gain when using one for your business. Let’s dive in!
A 3PL is a company that offers outsourced logistics and supply chain management services to businesses. These services can include transportation, warehousing, inventory management, and other related functions. When contracting with 3PLs you are provided a cost-effective solution for companies that do not want to invest in their own logistics infrastructure, allowing them to focus on their core competencies. Have you ever felt unsure of what to do next when you encounter a logistical problem? That’s another area 3PLs can help. They often have specialized expertise and technology so you can optimize your supply chain operations and improve efficiency.
The infrastructure within a 3PL is rather impressive. They have poured their revenue into streamlining logistical operations with technology many others couldn’t afford to utilize if they tried to create their own logistics infrastructure.
With this infrastructure, they utilize a wide range of processes and resources to manage logistics and supply chain operations for their clients. These processes can include:
To support these processes, 3PLs often invest in sophisticated technology. These technologies allow them to automate and streamline logistics operations, so they can provide real-time visibility into inventory levels, delivery schedules, and other key metrics to their clients. Often, they will also utilize a wide range of resources, such as a fleet of vehicles, warehouses, and equipment, to support their logistical processes. These technologies and resources work in tandem with a skilled workforce that includes logistics experts, transportation planners, warehouse managers, and inventory analysts who work to optimize their client's supply chain operations.
Lastly, a main part of most 3PL processes includes working closely with their clients to understand their specific logistical needs and to develop customized solutions that align with their business goals. They also continuously monitor and analyze logistics trends and market conditions to identify opportunities for cost savings and process improvements. Basically, they are like a logistics superhero your business can call upon to make their logistical operations as efficient as possible!
When you're setting up your business with a 3PL provider, they'll need some basic information from you in order to get things moving. They'll need to know all about the products you're shipping, like their dimensions, weights, and any special handling requirements. They'll also want to know your current and projected shipping volume, so they can plan accordingly. Additionally, they'll need to know your preferred shipping methods and carrier preferences, and any specific delivery requirements, restrictions, or compliance requirements you might have.
Third-party logistics is a service in which a company outsources its logistics and distribution functions to a third-party provider. This provider takes on the responsibility for all or some of the company's logistics operations, such as transportation, warehousing, and distribution.
Order fulfillment, on the other hand, refers to the process of receiving, processing, and delivering customer orders. This process includes tasks such as receiving the order, picking and packing the items, and shipping the order to the customer. Order fulfillment can be handled by a company's own logistics and distribution team or by a third-party provider.
In summary, 3PL is a broader term that encompasses all logistics and distribution functions, while order fulfillment is a specific aspect of logistics that refers to the process of fulfilling customer orders. A company may use a 3PL provider for both logistics and order fulfillment, or it may handle logistics in-house and use a separate 3PL provider for order fulfillment.
Third-party logistics companies offer a wide range of benefits over traditional drop shipping methods. One of the biggest benefits of 3PL services is the level of control and visibility they provide. With a 3PL provider, businesses have real-time access to inventory levels, shipping costs and information, and other logistics data, allowing them to make informed decisions about their entire supply chain. This level of control and visibility is often not possible with drop shipping, where businesses may have limited visibility into the logistics process. 3PL providers also bring specialized knowledge and expertise in logistics and supply chain management. They have the resources, technology and experience to optimize the entire logistics process, which can result in cost savings, improved efficiency, and increased competitiveness in the market.
Are you tired of spending countless hours and resources managing logistics and supply chain operations for your business? Are you looking for a way to streamline your logistics processes and improve efficiency? Then look no further than third-party logistics.
By outsourcing logistics and supply chain management to a 3PL, you can free up valuable time and resources to focus on your business's core competencies. A 3PL can handle the transportation, warehousing, and inventory management on your behalf, allowing you to focus on growing your business.
They can also help you save money by finding more cost-effective solutions for logistics and supply chain management. They have the expertise and technology to optimize logistics operations and improve efficiency, which can result in significant cost savings for your business.
Moreover, a 3PL can help you improve delivery times and increase customer satisfaction by optimizing logistics operations to meet customer demands. They can also help you improve inventory management by implementing inventory management systems that provide real-time visibility into inventory levels and stock management.
By outsourcing logistics and supply chain management, you can also take advantage of their networks of resources, such as transportation and warehousing facilities, and their skilled workforce, which includes logistics experts, transportation planners, and inventory analysts. Partnering with a 3PL will help your business grow. Instead of spending precious time and revenue packing orders, you can get those same orders to your clients faster and cheaper!
Here are several signs that indicate a business could benefit from using a third-party logistics provider:
If any of these sound familiar, your business will absolutely benefit from a third-party logistics solution!
Are you curious about the inner workings of a 3PL fulfillment center? It can be difficult to understand the process if you're new to outsourcing shipping. But the truth is, the 3PL fulfillment process is not as mysterious as it may seem. Let’s dive into the ins and outs of what happens in a 3PL eCommerce warehouse from the moment a customer clicks “submit order” on your online store to the final delivery.
An eCommerce platform is the software that powers your online store. Many 3PL companies have an eCommerce platform integration that will connect seamlessly with your store. This means when a customer is ready to check out and provides their billing and shipping information, this information is then processed by your 3PL partner. It goes to the fulfillment center where it is received and the order begins its journey.
As the 3PL provider begins to check the inventory for the order they will often consult inventory management software which is usually connected to both your eCommerce platform and your overall inventory. That way the 3PL provider can know right away if the product is available, and can update stocking levels for you both to view. Â
Once the inventory is confirmed, the 3PL provider's team will pick the items from the warehouse shelves. They use barcode scanning or other identification methods to ensure that they are picking the correct items and quantities. After the items are picked, they are packed and prepared for shipment. This may include packaging the items in protective material, creating shipping labels and invoices, and any other necessary preparation for shipping. After the order is packed, the 3PL provider will ship the order to the customer using the shipping method specified on the order. The 3PL provider may also provide tracking information to the customer so they can track their order during transit.
To achieve same-day shipping, a 3PL company requires a combination of strategic warehouse locations, fast and efficient order processing, real-time inventory management, expedited shipping options, and effective communication with the customer. Having strategically located warehouses that are close to major population centers allows the 3PL provider to quickly and efficiently ship items to customers within a certain radius. To achieve same-day shipping, the 3PL provider typically offers expedited shipping options such as overnight delivery or express shipping.
When a customer initiates a return, the 3PL provider will typically receive the returned product and inspect it to make sure it's in good condition. If there's an issue with the product, the 3PL provider will contact the customer to resolve it. Once the return is approved, the 3PL provider will then process the return by updating the inventory, and if necessary, restocking the product.
Convinced yet? We know now that 3PLs stand out from other logistical solutions because they offer tailored solutions, specialized expertise, scalability, sophisticated technology, access to resources and handle reverse logistics processes. Plus they work closely with their clients to understand their specific logistics needs and develop customized solutions that align with their business goals. Which means you have more time to become the next big thing!
The main role of a 3PL is to handle the logistics functions that a company does not want to handle or cannot handle in-house. This can include transportation, warehousing, and distribution, as well as other logistics-related services such as inventory management, order fulfillment, and reverse logistics. By outsourcing logistics and distribution to a 3PL provider, a company can focus on its core competencies and business operations. This can help the company to save costs, improve efficiency, and increase its competitiveness in the market.
There are four types of 3PLs. First-party logistics (1PL) refers to in-house transportation services where a company handles its own logistics and distribution functions without the involvement of any additional parties, such as a florist using their own delivery van to drop off purchases to local buyers. Second-party logistics (2PL) involves the use of outside logistics providers, such as courier services like USPS, FedEx, or UPS, which are not integrated with the company when contracted. Third-party logistics companies create an integrated system that allows for real-time data sharing between the company and the 3PL, resulting in a streamlined, efficient, and reliable long-term solution in complete synchronicity with the business. Fourth-party logistics (4PL) is much like a 3PL, but logistically the company's relationship with the consumer is often brokered by a middleman.
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