Inventory Control vs Inventory Management: Key Comparisons

Jul 16, 2025 | Blog

Ever wondered why some businesses seem to always have the right products in stock while others struggle with empty shelves or overflowing inventory? The answer lies in understanding inventory control vs inventory management. Both of them are necessary for businesses to thrive, but they serve different roles in optimizing operations.

Inventory control and inventory management are often used interchangeably, despite their distinct roles. In this guide, we’ll clarify how these two concepts differ, how they complement each other, and how you can leverage both to streamline your processes and boost efficiency.

What is Inventory Control?

Inventory control refers to the process of managing the movement and storage of inventory to make sure that a business has the right amount of stock at the right time. This involves tracking inventory levels, organizing storage, and maintaining a balance between demand and supply. 

The goal of inventory control is to minimize waste, reduce holding costs, and avoid both stockouts (when stock runs out) and excess inventory. It also ensures product visibility at every stage.

For example, an eCommerce business sells handmade candles. The business owner uses an inventory control system to track how many candles are in stock. The owner also organizes the storage of raw materials and finished products in clearly labeled bins, which improves accuracy and minimizes time spent searching for items.

That way, the business owner is able to monitor and organize his inventory properly.

What is Inventory Management?

Inventory management, on the other hand, is the broader strategy that encompasses all aspects of inventory oversight. It includes everything from purchasing and stocking to tracking inventory, fulfilling orders, and maintaining inventory levels.

A well-thought-out inventory management system (IMS) involves:

• Demand forecasting
• Supplier management
• Stock categorization
• Order fulfillment optimization

Inventory management is all about the processes that keep products moving smoothly from suppliers to the warehouse and, eventually, to the customer, which overall contributes to operational efficiency.

Now, the candle business owner uses a responsive inventory management system with demand forecasting to predict which products will be in high demand during the holiday season. Then, he coordinates this with the suppliers, based on this forecast. 

Simply saying, it is the inventory strategy that you implement to ensure that the right products are ordered, stocked, and available for customers at the right time.

What’s the Difference Between Inventory Management and Inventory Control

We know that the terms may sound similar, but they serve distinct functions. To make things clearer, let’s break it down into key areas.

In short, inventory control focuses more on the physical aspects of warehouse management, while inventory management is the one that oversees the whole process. 

How Inventory Control Complements Inventory Management

Now, inventory management won’t work without inventory control and vice versa. These two systems work hand-in-hand to ensure smooth operations and strategic growth. 

Here’s how.

Inventory control focuses on the day-to-day tasks, such as tracking stock levels in real time and managing the movement of goods in and out of the warehouse. 

On the other hand, inventory management provides the strategic framework by aligning stock levels with business goals and customer demand, forecasting future demand, and planning for replenishment. 

Inventory control feeds real-time data into inventory management, which helps improve overall stock accuracy, better predict demand, and optimize the reordering process.

Without it, inventory management would lack the necessary real-time insights, leading to inefficient decision-making and stock imbalances. Together, these systems ensure that you have enough stocks while balancing daily operations and long-term growth.

Challenges in Inventory Control and Inventory Management

However, even with the best systems in place, both inventory control and inventory management come with their own set of challenges. 

• Stockouts and Overstocks: Too little stock results in missed sales opportunities, while too much stock increases holding costs and the risk of obsolescence. Rely on demand forecasting and just-in-time (JIT) strategies to prevent overstocking or understocking.
• Supply Chain Disruptions: Global events or transport issues can lead to shortages or delays. Diversify suppliers and have contingency plans to help mitigate these issues.
• Maintaining Accuracy and Real-Time Visibility: Discrepancies between actual and recorded stock can arise due to human error or system failure. Solutions like RFID, barcode scanning, and cloud-based systems ensure precise tracking and visibility.
• Managing Lead Times and Supplier Reliability: Unpredictable suppliers can affect inventory levels and ordering strategies. Work with reliable suppliers and maintain buffer stock to manage delays effectively.

Keep on track with these challenges, so you’re one step ahead of the game.

Which Software Should You Choose?

So to say, inventory control and inventory management are easier to manage with technology. Look for features like real-time tracking, demand forecasting, sales channel integration, and detailed reporting.

But before picking a software, choose which type of inventory software solution matches your business needs:

• Inventory Management Platforms: These are standalone solutions focused on tracking stock levels, managing reorders, and providing data-driven insights. They’re ideal for small to mid-sized businesses looking for a cost-effective way to maintain accurate inventory records.
• Enterprise Resource Planning (ERP) Systems: ERPs like NetSuite provide an all-in-one solution that integrates inventory with accounting, HR, and customer management. These systems are suitable for larger organizations seeking centralized control over multiple business functions.
• Specialized Control Tools: These systems are specifically designed for warehouse control, picking optimization, or demand planning. They are often used to augment existing platforms with high-performance capabilities in key operational areas.

If you’re looking for a comprehensive, scalable solution that delivers real-time performance and operational excellence, ShipHero can help you optimize your fulfillment process and drive business growth. It comes with native NetSuite integration, real-time synchronization, optimized pick routes, and robust analytics for scalability and operational excellence. 

That way, you can streamline your operations and focus on what matters most, which is to grow your business.

Get a free quote today.

Key Takeaways

• Inventory control focuses on daily tasks and tactical decisions, while inventory management covers long-term strategies for stocking, forecasting, and order fulfillment.
• Both are needed to improve operational efficiency, minimize costs, and ensure customer satisfaction.
• Technology plays a key role in integrating these functions to enhance visibility and accuracy in inventory processes.

Frequently Asked Questions

Can Technology Integrate Inventory Control and Inventory Management?

Yes. Modern inventory software like ShipHero integrates both inventory control and inventory management systems. This integration allows seamless communication between the systems, which helps provide real-time updates and maintain accurate data.

Can a Business Use Inventory Control without Inventory Management?

It’s true that inventory control can function independently in a smaller business or simpler operations, but you need an inventory management strategy for long-term success, growth, and scalability.

Can Inventory Control Prevent Stock Discrepancies?

Yes, inventory control can greatly reduce stock discrepancies by improving the tracking and monitoring of products. However, it’s most effective when supported by an inventory management strategy that handles forecasting, procurement, and sales.

Maximize Your WMS ROI and Build A Business Case

Jul 16, 2025 | Blog

In a world where margins are tight and customer expectations are sky-high, investing in a warehouse management system (WMS) helps keep orders fulfilled around the clock. 

However, the real question isn’t whether to invest in a WMS; it is how to justify the investment and calculate the true return it delivers.

Businesses that build a strong business case and track measurable outcomes from their WMS implementation consistently play their cards right than those that don’t. They scale faster, experience fewer fulfillment errors, and save significantly on labor and inventory costs. 

This article will help you build that case, calculate the ROI of a warehouse management system, and demonstrate long-term business value.

Key Metrics to Measure and Calculate Warehouse Management System ROI

To justify the investment in a WMS with measurable benefits, start with the right metrics. 

• Labor Cost Reductions: A robust WMS improves labor productivity by automating repetitive tasks and optimizing pick paths. This directly evaluates labor cost reductions through WMS automation.
• Inventory Turnover Rate: Real-time tracking and better forecasting allow businesses to forecast demand and inventory needs more accurately.
• Order Accuracy and Fulfillment Speed: WMS technology analyzes the impact of WMS on order accuracy and fulfillment speed, reducing shipping errors and delays.
• Inventory Accuracy: A good WMS reduces stock errors and inventory discrepancies by improving visibility across all SKUs.
• Space Utilization: Companies that optimize warehouse layout for better space utilization often delay or eliminate the need for expansion.
• KPI Tracking: ShipHero customers track key performance indicators (KPIs) to assess success using built-in dashboards and reporting tools.

One ShipHero customer reported a 30% increase in their picking efficiency. Their staff now picks 70-80 orders in an hour, thanks to ShipHero’s iPad-enabled picking process.

How to Build a Business Case and Calculate WMS ROI

A strong business case isn’t just about numbers. It’s about clearly showing the value of WMS implementation across every part of the operation.

Short-Term vs Long-Term ROI

Short-term ROI refers to immediate, quantifiable improvements in areas like:

• Reduced labor costs
• Faster order processing
• Lower fulfillment error rates

Long-term ROI, on the other hand, reflects sustained gains over months or years, such as:

• Improved scalability
• Richer data for strategic planning
• Greater customer satisfaction and retention

For example, a brand might see a 30% labor savings within the first quarter, but the long-term cost savings of a WMS come from optimizing processes over the years and avoiding major expansion costs. 

Direct vs. Indirect ROI

Direct ROI is quantifiable, easily measurable financial gains that result directly from WMS implementation. These could be:

• Reduced labor hours
• Fewer returns due to increased order accuracy
• Lower picking and packing costs

Indirect ROI, on the other hand, is intangible, benefits that may not show up immediately on a financial statement but significantly impact business performance over time. This includes:

• Improved customer satisfaction from faster, more accurate deliveries
• Stronger brand reputation
• Improved morale from streamlined workflows

Most businesses struggle to assess the long-term cost savings of a WMS because they hyperfocus on the direct ROI to justify the initial investment. But indirect ROI underscores the strategic, long-term value of a WMS.

ROI on Peak Season Warehouse Management

Peak seasons are high-stress, high-stakes, but a WMS helps implement automation to streamline warehouse operations and minimize chaos.

Challenges include:

• Increased order volume
• Temporary labor shortages
• Inventory shortages

ShipHero clients using our WMS manage multiple warehouses more efficiently, especially during the holidays, enabling them to meet SLAs and reduce overtime. 

WMS advantages include:

• Faster pick-pack-ship processes
• Smarter replenishment systems
• Real-time tracking to improve inventory management

Real-World Examples of WMS ROI

Below are case studies proving how WMS can drive measurable gains in efficiency, accuracy, and fulfillment speed.

Case Study 1: Improving Labor Efficiency

James Enterprise, a veteran in the sales and distribution industry, turned to ShipHero’s WMS to overcome inefficiencies such as batch processing, error-prone paper pick tickets, and latency issues. 

They needed a solution that could scale with them while reducing costs and streamlining fulfillment. Implementing ShipHero helps them as follows:

• 38% increase in productivity through improved picking and packing efficiency
• Automated complex manual processes
• Gained real-time visibility across inventory and operations

Case Study 2: Inventory Accuracy and Stockout Reduction

B2C business Vareya transitioned to ShipHero’s end-to-end Warehouse Management Software to consolidate its fragmented systems into one cohesive platform. Previously, they struggled with software that didn’t communicate, leading to inventory blind spots, delayed shipments, and frustrated customers.

ShipHero’s robust reporting improves inventory management with real-time tracking and reduces stock errors and inventory discrepancies. 

Vareya and its clients now receive instant notifications when stock is low or an item hasn’t shipped, allowing them to respond quickly and avoid disruptions. 

Case Study 3: Faster Order Fulfillment

In less than two years of implementing ShipHero’s WMS, lifestyle brand American Tall’s orders increased by over 400%. It was the most intuitive solution they had tried, helping them keep up with order fulfillment while their business grew.

Meanwhile, Deliverzen, a growing 3PL provider, used to struggle with bottlenecks that made handling increased order volumes nearly impossible. ShipHero WMS helped scale operations to meet surging customer demand. The results?

• Doubled daily order processing from 3,000-4,000 to 7,000-8,000 orders
• 70% reduction in customer service tickets
• Streamlined high-volume shipments through the Bulk Ship feature
• Optimized labor allocation using WorkforceHero and the Labor Cost Dashboard

“ShipHero has helped us scale without worrying about system breakdowns. It’s reliable and gives us peace of mind,” Drew Horner, Owner of Deliverzen.

Pros and Cons of Using a Warehouse Management System

Before making the leap, here’s a balanced look at what your business can expect when implementing a WMS:

Pros:

• Improves inventory management with real-time tracking
• Enhances labor planning and allocation
• Accelerates order fulfillment
• Enables businesses to integrate the WMS with existing enterprise systems

Cons:

• Upfront investment can be significant
• Requires staff training and change management
  ROI may vary based on business size and operational complexity

Key Takeaways

• A well-implemented WMS delivers measurable ROI through labor savings, order accuracy, and inventory visibility.
• Both direct and indirect ROI should be considered when building a business case.
• Real-world examples show how WMS solutions like ShipHero drive cost savings and support scalability.

Frequently Asked Questions

Is It Possible to Measure WMS ROI Accurately?

Yes, though it depends on your baseline metrics. Leading platforms like ShipHero provide detailed dashboards that allow you to monitor warehouse performance and measure results post-implementation.

Is It Worth Integrating WMS with Other Business Systems?

Absolutely. When you integrate the WMS with existing enterprise systems like ERP or CRM platforms, you streamline data flows and enable better cross-functional decision-making.

Is Training Necessary for Maximizing WMS ROI?

Yes. Training is critical. Without it, your team can’t fully leverage features like automation, real-time tracking, or KPI dashboards. Training also ensures you track key performance indicators (KPIs) to assess success from day one.

Complete Guide to Optimizing Warehouse Operations in 2025

Jul 16, 2025 | Blog

Rising labor costs, surging demand for faster shipping, and ongoing supply chain disruptions are making warehouse efficiency more critical than ever. If your operations aren’t optimized, you’re not just losing money—you’re falling behind.

The solution? Streamline your workflows to gain a major edge. Faster order fulfillment, fewer errors, and happier customers all contribute to higher profitability.

Embracing automation along with AI-driven inventory management and real-time tracking can set you apart in an increasingly competitive market. 

This guide breaks down the top strategies to cut costs, improve accuracy, and build a smarter, more efficient warehouse in 2025.

Why Cost Saving is Important in Warehouse Operations

Cost savings in warehouses go beyond cutting expenses—they enhance profitability, efficiency, and competitiveness. Optimizing resources eliminates waste in warehouse processes, improves output, and strengthens market positioning. 

Lower costs allow for reinvestment, innovation, and adaptability in a changing market. Additionally, cost reduction efforts uncover inefficiencies, drive operational improvements, and support long-term growth. 

Financially responsible operations attract investors and provide critical insights for strategic decisions. Prioritizing cost efficiency ensures a more resilient, scalable, and competitive warehouse operation for sustained success.

8 Tips to Reduce Warehouse Cost

Reducing warehouse costs requires a strategic approach that balances efficiency with operational effectiveness. 

Businesses must focus on optimizing labor, energy use, inventory management, and logistics while leveraging automation. This can reduce operational costs to stay competitive. 

Here are eight key strategies to help cut costs without compromising productivity.

Labor Management Optimizations

Labor is one of the largest expenses in warehouse operations. Businesses are turning to automation to reduce these labor costs efficiently through scheduling, automation, and cross-training. 

Optimizing workforce scheduling, investing in staff development, and leveraging AI-driven tools can boost productivity while minimizing inefficiencies.

For example, companies like Amazon and Walmart have successfully integrated robotic automation to assist workers, improving efficiency while lowering labor costs.

Energy Efficiency Improvements

Energy costs are rising, making efficiency a priority. According to the U.S. Department of Energy, LED lighting can cut energy use by up to 75%. 

Warehouses can reduce expenses by switching to LED lighting, installing motion-sensor controls, and upgrading to energy-efficient systems that minimize energy consumption.

Companies like UPS have adopted solar power and smart energy management systems, significantly lowering operational costs.

Inventory Optimization Techniques

Poor inventory management leads to overstocking, obsolescence, and excess storage costs. Techniques such as demand forecasting, just-in-time (JIT) inventory, and real-time tracking helps businesses maintain optimal stock levels and reduce errors by tracking inventory in real-time. 

Inventory management software like NetSuite and Fishbowl helps reduce holding costs by providing accurate, real-time insights that monitor inventory levels to avoid overstocking.

To reduce overstocking and improve inventory accuracy, consider implementing advanced inventory management technologies. This resource covers the key technologies in inventory management that can streamline your processes.

Warehouse Consolidation

Warehouse consolidation involves merging storage facilities or optimizing warehouse layout to save space and reduce rental expenses. 

Companies with multiple warehouses often benefit by centralizing operations, reducing transportation costs, and streamlining inventory distribution. For example, FedEx implements warehouse consolidation strategies to cut logistics costs while maintaining service speed.

Automated Storage and Retrieval Systems (ASRS)

ASRS uses automation to manage inventory storage and retrieval, reducing labor costs and improving space utilization. While the initial investment is high, ASRS offers long-term savings by increasing efficiency and minimizing picking errors. 

Industries such as pharmaceuticals and e-commerce benefit from ASRS by streamlining high-volume fulfillment while improving accuracy and reducing costs. Companies like DHL have successfully implemented these systems to enhance efficiency and meet growing demand.

Transportation and Logistics

Transportation expenses are a major cost factor in warehouse operations. Businesses can decrease transportation costs through route optimization software, fuel-efficient vehicles, and freight consolidation. 

For instance, route planning tools like OptimoRoute help companies reduce fuel consumption and delivery times. 

According to a study published on ResearchGate, optimized routing of communal vehicles can significantly reduce fuel consumption and CO₂ emissions. Emerging trends such as electric trucks and AI-driven logistics management are further improving cost savings.

Security Measures

Theft, loss, and damage contribute to increased warehouse costs. Effective security measures, including surveillance cameras, RFID tracking, and controlled access systems, help prevent losses. 

Employee training on security protocols also plays a critical role in reducing internal theft. Many retailers, such as Target, have integrated RFID technology to enhance inventory tracking and reduce shrinkage.

Optimized Picking Process

Inefficient picking processes lead to higher labor costs and slower fulfillment. This technique streamlines order picking and packing processes to reduce labor costs and fulfillment time. 

Companies like Zappos use AI-driven picking systems that optimize warehouse workflows and improve warehouse productivity with advanced tools.

While implementing automation and AI-driven solutions offers significant benefits, it’s important to consider the cost of a Warehouse Management System (WMS) when planning your technology budget. This investment can streamline operations and reduce long-term expenses.

How Should Your Operational Expenses Look Like?

An optimized warehouse budget ensures profitability while maintaining efficiency. A well-structured breakdown of operational expenses helps businesses identify areas for cost reduction and efficiency improvements.

Ideal Breakdown of Warehouse Operational Expenses

While costs vary by industry, a typical warehouse budget includes:

• Labor Costs (50-60%) – Salaries, wages, overtime, benefits, and training expenses.
• Rent & Real Estate (15-20%) – Lease or ownership costs, property taxes, and facility maintenance.
• Energy & Utilities (5-10%) – Electricity, heating/cooling, water, and energy management systems.
• Equipment & Maintenance (5-10%) – Forklifts, conveyors, automation, and repair costs.
• Inventory Holding Costs (5-15%) – Storage space, depreciation, insurance, and shrinkage.
• Technology & Software (3-8%) –  Warehouse Management System (WMS), security systems, and automation software.
• Logistics & Transportation (10-15%) – Freight, fuel, route optimization, and last-mile delivery.

Cost Benchmarks Based on Industry Standards

• Labor Costs – Efficient warehouses maintain labor costs below 55% of total expenses.
• Space Utilization – Warehouses should maintain at least 85% utilization to avoid unnecessary rental costs.
• Energy Efficiency – Investing in energy-saving solutions can reduce utility costs by up to 30%.
• Inventory Turnover – The ideal turnover rate is 5-10 times per year, minimizing holding costs.

Warehouse Cost Optimization Checklist

• Optimize Workforce Efficiency: Implement automation, flexible scheduling, and cross-training.
• Reduce Energy Waste: Upgrade lighting, HVAC, and insulation for cost savings.
• Maximize Space Utilization: Plan warehouse space for efficient material flow using vertical storage, ASRS, and warehouse consolidation strategies.
• Invest in Smart Technology: Upgrade technology for better operational control by implementing WMS, RFID tracking, and predictive analytics.
• Streamline Logistics: Use freight consolidation, route optimization, and real-time tracking.
• Monitor Key Metrics: Track cost per order, labor productivity, and energy usage.

By adopting the right technologies, including WMS, you can maximize your ROI. This guide on WMS ROI provides insights into how such investments pay off over time through improved accuracy and reduced costs.

Key Takeaways

• Optimize Costs & Efficiency – Reduce labor, energy, and logistics costs through automation, workforce management, and smart inventory control.
• Leverage Technology – Implement AI-driven WMS, ASRS, and IoT solutions to improve accuracy, space utilization, and overall productivity.
• Monitor & Adapt – Evaluate warehouse performance regularly by tracking key metrics and adjusting strategies to stay competitive and profitable.

Frequently Asked Questions

Is Route Optimization Software Beneficial for Transportation Cost Savings?

Yes, route optimization software is beneficial for transportation cost savings. It reduces fuel consumption, shortens travel time, and minimizes vehicle wear by identifying efficient delivery routes. Businesses using route optimization can cut fuel expenses by up to 20% and improve on-time delivery rates by avoiding traffic and optimizing delivery orders. 

Can Energy-Efficient Lighting Lower Warehouse Operating Costs?

Yes, energy-efficient lighting can lower warehouse operating costs. LED lights use up to 75% less energy than traditional bulbs and last longer, reducing both electricity and maintenance costs. Smart controls like motion sensors further enhance savings. Most warehouses see ROI within two years through reduced utility bills and improved sustainability.

Is Cross-Training Employees an Effective Cost-Saving Measure?

Yes, cross-training employees is an effective cost-saving measure. It increases workforce flexibility, reduces the need for overtime or temporary hires, and minimizes downtime by allowing employees to cover multiple roles. This approach improves productivity and helps businesses adapt to changing demand while lowering labor expenses.

Expert Tips to Prepare for Peak Shipping Season 2025

Jul 15, 2025 | Blog

Is your warehouse ready for the holiday rush? As the peak shipping season approaches, logistics managers everywhere are gearing up for one of the busiest times of the year. 

The peak shipping season is the annual surge in shipping volume, driven by events like the holiday shopping rush, special sales events, and seasonal goods. This season can make or break a company’s ability to meet customer expectations. But with the right preparation, you can manage resources effectively during peak demand, avoid shipping delays, and keep your customers satisfied. 

Let’s dive into expert tips to help you navigate the complexities of peak shipping season in 2025.

Types of Peak Shipping Season

Just like a sports season has different games, peak seasons vary in nature and timing. Think of each peak season as a different “game” with each one requiring its own strategy to win. Here’s a breakdown of typical peak shipping periods in various industries:

• Retail’s holiday season (November to December): The busiest time for retailers, driven by Black Friday, Cyber Monday, and Christmas sales, which creates a surge in orders and shipping demands.
• eCommerce Black Friday events (late November): eCommerce sees high demand during Black Friday and Cyber Monday, which requires businesses to plan ahead for increased shipping volumes and optimize carrier selection and delivery routes to ensure quick deliveries.
• Agricultural harvest seasons (fall): Agricultural shipments peak during harvest time in the fall, increasing demand for timely deliveries of fresh produce and seasonal goods. This period often requires businesses to prioritize high-demand products for fast shipping.

Top Ways to Prepare for Peak Shipping Season

Be proactive and prepare in advance so you can anticipate challenges and streamline operations. 

Plan Beforehand

Businesses need to develop comprehensive logistics to ensure a smooth peak season. Forecasting shipping needs based on historical data allows you to coordinate with suppliers and assess inventory levels well in advance. You can also plan months ahead to avoid a last-minute rush and ensure stock levels are adjusted, carrier capacity is coordinated, and potential bottlenecks are identified. 

Doing so optimizes carrier selection and delivery routes, schedules shipments to avoid bottlenecks, and streamlines order fulfillment to prevent delays. Consider implementing peak season inventory management strategies to help forecast and manage your inventory effectively during this busy period.

Provide a Heads-Up to Your Customers

Communicate with your customers about potential delays or extended shipping times. Do this through email campaigns, website banners, or social media posts. Communicating clearly with customers about shipping timelines allows customers to manage their expectations, enhance satisfaction, and reduce service inquiries. 

Collaborate with Reputed 3PLs

Partnering with third-party logistics providers (3PLs) can enhance your business’s ability to manage peak season workloads. When you select 3PLs with a proven track record, strong technological capabilities, and a wide geographic reach, you can ensure timely deliveries and efficient operations during high-demand periods. 

Outsourcing logistics functions to these experts not only reduces costs but also increases efficiency. This partnership enables you to scale quickly, improve service levels, and navigate the complexities of peak season more effectively.

Communicate with Suppliers

Ensure solid communication with your suppliers well in advance of peak season by holding regular meetings or using shared digital platforms to keep everyone aligned. When you have proactive communication with suppliers, it helps maintain steady inventory levels, avoids delays in product availability, and ensures smoother operations during peak. Regular communication with suppliers anticipates potential disruptions and creates backup plans, which ultimately improve efficiency and prevent disruptions.

Implement Trending Supply Chain Technologies

Adopting modern supply chain technologies, such as real-time tracking systems and automated inventory management, can greatly enhance efficiency during peak season. These technologies reduce manual errors, speed up processing times, and improve overall operational efficiency. 

Businesses that automate the shipping process to reduce manual errors can enhance the reliability of deliveries and adjust shipping strategies based on real-time data. Using ShipHero’s shipping management tools can help optimize your shipping processes and ensure smooth operations throughout the peak season.

Store Inventory at Multiple Warehouses

Distributing inventory across multiple warehouse locations helps ensure faster shipping to key regions. When you choose warehouse locations near high-demand areas or major transportation hubs, you can reduce delivery times, lower shipping costs, and ensure quicker delivery to customers. 

Leverage Multiple Carriers

Using multiple carriers ensures flexibility and better coverage by allowing businesses to assess factors like:

• Cost-effectiveness: Choose carriers that offer competitive rates to ensure a balance between cost savings and reliable service.
• Service quality: Evaluate the carrier’s reliability, on-time delivery performance, and customer support for smooth operations.
• Coverage area: Ensure the carrier has an extensive network that reaches all the regions where your customers are located to minimize delays and expand delivery capabilities.

This approach helps avoid bottlenecks, ensures faster delivery times, and maintains reliable service, especially when demand spikes during peak season.

Start and Finish of the Peak Shipping Season in 2025

The peak shipping season in 2025 will likely begin around Halloween (October 31) and will run through New Year’s Day (January 1). This period includes major holidays and events, such as:

• Halloween
• Thanksgiving
• Black Friday (November)
• Christmas
• New Year’s Day

Be prepared for these dates so that your business can have efficient shipping and operations. To help you stay on top of deadlines, make sure to review the holiday shipping deadlines for major carriers in 2025.

Prepare Yourself for the Peak Shipping Season with ShipHero

ShipHero is a powerful solution designed to streamline warehouse operations during the peak shipping season. With features like inventory forecasting, which helps predict future demand and optimize stock levels, and order management, which efficiently tracks and processes orders from start to finish, ShipHero ensures smooth and timely operations even during high-demand periods. 

Start preparing for the 2025 peak shipping season today with ShipHero, and let us help you optimize your logistics and improve operational efficiency.

Key Takeaways

• Proactive planning helps minimize last-minute issues during peak season.
• Clear communication with customers and suppliers is essential for success.
• Partnering with reliable 3PLs and leveraging modern technologies can enhance efficiency.
• Distributed inventory and multiple carriers ensure faster deliveries and reduced costs.

Frequently Asked Questions

How Long Does Peak Season Last?

Peak shipping season typically spans from October to January, covering major retail events and holidays. Understanding these key dates helps businesses plan for increased shipping volumes.

Should You Hire More Staff During Peak Shipping Season?

Yes, hiring temporary staff can help manage increased demand during peak shipping season, depending on your operations and staffing needs.

Pros of hiring more staff include quick scaling, flexibility, and reduced employee burnout. However, cons involve the time and resources needed for onboarding and training, as well as potential challenges with consistency and high turnover, which can impact productivity.

How Early Should You Start Preparing for Peak Shipping Season?

Preparation should start 3-6 months before peak season. In the first 3 months, assess inventory, review past performance, and refine logistics plans. In the next 1-2 months, secure staffing, finalize supplier and carrier agreements, and implement necessary upgrades. In the final month, conduct training, test systems, and ensure everything is ready to handle the surge.

What is the Role of Technology in Inventory Management? Important Types

Jul 15, 2025 | Blog

Any e-commerce business knows that inventory management is not just a back-office task. It is the lifeline that keeps operations flowing and customers satisfied. 

Fast forward to today, modern inventory management systems do so much more than count what’s on the shelves. They cut down on mistakes that cost real money, help businesses run leaner, predict what customers will want next, and grow right alongside your company. 

Simply put, when you bring in the right tech tools, you set up your business to be more profitable and efficient at every level.

In this article, we explore how technology is reshaping inventory management and which types matter most.

What is Inventory Management?

Inventory management is the process of overseeing and controlling the flow of goods from supplier to customer. It includes ordering, storing, tracking, and selling inventory, ensuring businesses maintain just the right amount of stock.

Think of it as the foundation of a profitable, customer-first logistics strategy. Without it, even the best marketing or sales efforts will falter due to fulfillment issues.

If done right, it prevents overstocking and stockouts while ensuring smooth operations across the supply chain.

Key Technology Used in Inventory Management

The right tech stack can transform inventory management from a guessing game into a data-driven powerhouse. Here are the tools making that happen:

Warehouse Management System (WMS)

A Warehouse Management System is the operational heartbeat. It is a software used for optimizing and automating core warehouse functions like order fulfillment, stock control, and shipment tracking.

ShipHero’s own WMS, for instance, helps businesses manage stock across multiple locations, process orders faster with automated systems, and streamline warehouse operations with technology. 

Robotics Technology

Robotic systems enhance stock accuracy with barcode scanning and scan products with handheld devices for efficiency, accelerating fulfillment, and minimizing delays. They pick, pack, sort, and even transport goods, reducing labor costs and error rates.

Think Amazon-style automation, but something more accessible to businesses of all sizes.

LiFi (Light Fidelity) Technology

LiFi uses visible light to transmit data at high speeds, offering a secure alternative to Wi-Fi. It supports real-time updates and ultra-fast communication between devices, improving both speed and reliability of inventory data flow. 

It is especially useful in environments sensitive to electromagnetic interference, like pharmaceutical or aerospace warehouses.

RFID (Radio Frequency Identification) Technology

RFID allows for wireless communication between inventory tags and scanners. It drastically reduces the need for manual checks, making inventory tracking seamless.

Businesses can monitor inventory using RFID technology, automate stock replenishment processes, and implement barcoding and RFID systems for accuracy.

Automated Picking Tools

Automated picking systems use guided vehicles, robotic arms, or pick-to-light systems to fetch items with minimal human input. This is ideal for fast-moving warehouses where accuracy and speed are mission-critical.

This technology reduces human error with automation, improves fulfillment speeds, and optimizes warehouse space with advanced software.

AI and Machine Learning

Today, AI and ML are increasingly being used to forecast demand, adjust stock levels automatically, and analyze performance trends.

For example, a system might notify managers of low stock automatically or predict seasonal demand spikes based on historical data, allowing proactive planning and smarter purchasing.

Rising Trends in Inventory Management

Here are the trends shaping the future of inventory tech:

Internet of Things (IoT)

IoT uses connected devices to improve stock visibility and record inventory movements digitally. Smart shelves, sensors, and trackers ensure that businesses know exactly what they have (and where it is) at all times.

Cloud Infrastructure

Cloud-based inventory systems allow teams to synchronize inventory data across all platforms and access it from anywhere. This flexibility makes it easier to scale, collaborate, and stay responsive in a fast-moving market.

Predictive Analytics

Predictive tools analyze inventory performance with data analytics and forecast future needs with remarkable accuracy. This enables better decision-making, reduces stockouts, and eliminates excess inventory.

Benefits of Using Technology in Inventory Management

From cost savings to customer satisfaction, here are the key benefits companies can expect when they adopt modern inventory tools.

Increased Profitability and Reduced Costs

By automating core functions and reducing waste, businesses lower labor costs and inventory losses. Simply put: more efficient operations = higher margins.

Improved Loyalty and Customer Satisfaction

On-time deliveries, accurate stock updates, and fast fulfillment improve customer experience, leading to repeat business and stronger brand loyalty.

Better Market Position

Tech-supported businesses can outpace competitors and adapt to market changes faster, all thanks to faster order processing and accurate fulfillment.

Increased Scalability

Technology supports growth by allowing companies to manage more SKUs, warehouses, and sales channels without compromising accuracy or speed.

Manual vs. Tech-Supported Inventory Management

The main difference between manual and tech-supported inventory management is efficiency and accuracy. Here’s a quick look at their differences:

How to Choose the Right Inventory Management Technology

With so many options available, the key to choosing the right technology is to align your tech stack with your specific operational goals, growth plans, and support needs.

Identify and Specify Your Inventory Goals

Are you trying to reduce stockouts, control stock flow, or improve fulfillment times? Clarifying your goals helps narrow down the best tools.

Research and Compare Different Technology Options

Consider your current scale and your growth plans. Then, look for platforms that integrate inventory data with ERP systems, offer customization, and have solid user reviews. 

Analyze Support and Services Offered

Don’t overlook service quality because it’s what makes or breaks implementation. From onboarding to troubleshooting, good tech partners offer dedicated support. 

Key Takeaways

• Inventory management technology like ShipHero transforms business operations by automating tasks, reducing costs, and enabling real-time visibility across the supply chain.
• The integration of advanced tools like WMS, RFID, robotics, and AI enables businesses to make data-driven decisions, forecast demand accurately, and eliminate costly errors.
• Choosing the right tech requires aligning business goals with functionality and support.

Frequently Asked Questions

How Does Barcode Scanning Help with Inventory Management?

Barcode scanning enhances stock accuracy and accelerates stock entry and retrieval. This minimizes manual errors and ensures faster processing.

How Do Automated Inventory Tracking Systems Work?

To make sure inventory is always up to date, these systems use sensors, RFID, or barcode technology to track inventory levels with real-time updates. They can also automatically notify managers of low stock.

How Can Mobile Apps Be Used in Inventory Management?

Mobile inventory apps allow staff to update stock levels in real-time, scan products with handheld devices, and monitor inventory from anywhere. Essentially, they boost flexibility and responsiveness.