Apr 21, 2023 | Blog
Inventory accuracy is pivotal for businesses dealing with tangible products. It encompasses the processes of monitoring, computing, and enhancing the stock levels of goods. Regardless of whether you manage a quaint boutique or a sprawling warehouse, a clear grasp of your inventory is vital for a streamlined and profitable operation. Inaccuracies in your inventory system can result in stock mismatches, delayed fulfillment, and unhappy customers.
What Is Inventory Accuracy?
Inventory accuracy is the alignment between a company’s physical stock levels and its recorded inventory data. It’s about ensuring that the actual quantity of an item in the warehouse matches the number in the company’s records. Many companies grapple with this issue, but there are strategies to boost inventory accuracy formula keep rates. Businesses employ inventory control methods like routine stock counts, the adoption of an inventory management system, and the integration of barcodes or RFID tech to monitor inventory items, SKUs, and storage bins.
Why Is Inventory Accuracy Important?
- Ensures Accurate Inventory Valuation:
Inventory accuracy plays a pivotal role in guaranteeing precise inventory valuation. This valuation is integral to a company’s financial reporting, influencing the computation of costs, profits, and net earnings. When businesses maintain accurate inventory records, they can determine their inventory’s true value, leading to more trustworthy financial statements. This accurate inventory important also offers insights into the impact of their inventory management on their financial health.
- Avoids Over or Understocking:
Excess stock or stockouts can be detrimental. While overstocking results in higher holding costs and reduced profits, stockouts can cause missed sales opportunities and dwindling customer satisfaction. Accurate inventory records empower businesses to make informed decisions about restocking, discounting, and optimizing excess inventory and space.
Dead stock is unsellable inventory, often due to overstocking, subpar inventory management, or changing customer preferences. It consumes capital, takes up space, and elevates holding costs. Proper inventory management identifies and addresses dead stock, facilitating better inventory forecasting and customer demand understanding.
Errors in inventory data can disrupt order fulfillment, causing backorders and shipping delays. This tarnishes the customer experience and brand reputation. Ensuring inventory accuracy helps businesses maintain adequate stock levels, ensuring timely order fulfillment and enhancing customer satisfaction.
Inventory Accuracy Challenges
Achieving consistent inventory accuracy is a daunting task for businesses across sectors. Common challenges include manual data entry mistakes, outdated inventory tracking tools, disorganized warehouses, inefficient restocking processes, and inadequate employee training. However, remedies like warehouse and inventory management software,, barcode or RFID tech, routine physical stock counts, better warehouse organization, and comprehensive staff training can address these issues. Embracing best practices in inventory reconciliation and understanding the nuances of accounting in inventory valuation can aid companies in upholding inventory accuracy and averting financial setbacks.
If you’re grappling with these challenges, ShipHero is here to assist. Our warehousing and fulfillment solutions offer clarity and control over inventory planning and execution, leveraging best practices to minimize errors, maintain inventory accuracy and enhance inventory accuracy.
How to Calculate Inventory Accuracy rate
To determine inventory accuracy, one must compare the actual physical stock levels with the company’s recorded data. This comparison helps businesses gauge inventory inaccuracies and the reliability of their inventory records and pinpoint discrepancies. Here’s how to compute inventory accuracy:
- Choose a time frame for the calculation, be it weekly, monthly, or quarterly.
- Conduct a physical stock count during this period, ensuring it aligns with the time of updating inventory records.
- Compare the physical count with the recorded data to ascertain record accuracy. The difference between the two gives the variance.
- Use the formula: Inventory accuracy = (1 – (variance / recorded inventory)) x 100. For instance, if the documented stock count is 1,000 units and the actual count is 950 units, the variance is 20 units. Thus, the inventory accuracy is 96%, meaning the records are accurate for 96% of the stock.
- Analyze the results and address any discrepancies. This might involve adjusting records, probing the reasons for discrepancies, or introducing new inventory management strategies.
What Is a Good Inventory Accuracy Rate?
The ideal inventory accuracy rate varies based on the industry, product type, and business requirements. Generally, a rate of 95% or above is commendable. However, sectors like pharmaceuticals or electronics might demand even higher rates due to their value and regulatory standards. Regular monitoring and corrective measures can help businesses consistently enhance their accuracy rate and refine their own inventory management system.
How to Improve Inventory Accuracy
Inventory tracking inventory counting is indispensable for businesses handling tangible goods. Yet, it can be intricate, especially when dealing with vast quantities. Inventory shrinkage, the gap between recorded and actual stock levels, can adversely affect a company’s financial health. Delays, shortages, and overstocking often stem from inventory shrinkage. Pinpointing its root causes is crucial for rectifying these issues and refining inventory management.
Human error and errors, like data entry mistakes or mislabeling, are primary culprits behind inventory shrinkage. Other factors include suboptimal inventory management practices, such as insufficient tracking systems or ineffective restocking processes. Technologies like RFID and barcode scanning can mitigate these issues by minimizing manual errors and offering real-time inventory insights.
Effective inventory management, encompassing precise counting and tracking, is paramount for business success. By adopting an inventory management system, businesses can automate tracking, curtail manual inventory errors made, and gain real-time stock visibility. This not only prevents inventory shrinkage but also ensures accurate order fulfillment. Warehousing and supply chain operations also benefit from precise inventory tracking and efficient order processing.
Cycle counting is another effective strategy. It involves periodic partial stock counts throughout the year, offering a more accurate and efficient counting method compared to an annual full stock count. By adopting cycle counting, businesses can grasp their inventory reconciliation tasks better and spot discrepancies promptly. Ensuring meticulousness during cycle counting minimizes errors, ensuring up-to-date and accurate records. This method lightens the load of a full stock count, conserving time and resources. By integrating cycle and traditional physical inventory counting, in their warehouses, businesses can bolster their inventory accuracy, diminish shrinkage, and fine-tune their inventory management processes.
Key Takeaways
Inventory accuracy, while essential, comes with its set of challenges, from manual data entry blunders to inefficient restocking processes. So, how can we overcome these hurdles and boost our inventory accuracy? While hiring a psychic might be an intriguing yet costly option, a more pragmatic approach calculating inventory accuracy involves adopting inventory management software, conducting routine physical stock counts, leveraging barcode or RFID technology, enhancing warehouse organization, and offering comprehensive staff training.
So, here’s to all the meticulous inventory trackers! May your stock levels always be spot-on and your backorders a thing of the past!
Inventory Accuracy FAQs
What Causes Inventory Inaccuracy?
Several factors can compromise inventory accuracy. Manual data entry mistakes can skew inventory levels, leading to overstocking or stockouts, missed sales opportunities, and elevated holding costs. Outdated [inventory tracking systems](https://shiphero.com/blog/article/inventory-tracking/) and disorganized warehouses can exacerbate the issue of inaccurate inventory amount, causing delays in order fulfillment. Moreover, ineffective restocking processes and insufficient training can further erode inventory accuracy, impacting profitability and customer satisfaction.
What is Inventory Accuracy Percentage?
This metric gauges how closely a company’s documented stock levels align with the actual physical stock. It’s computed by contrasting the actual physical stock count with the recorded data, dividing the difference in physical inventory counting by the recorded count, and multiplying the result by 100 to get a percentage. For instance, if the documented stock count is 1,000 units and the actual count is 950 units, the inventory accuracy percentage is 95%. This indicates that the records are accurate for 95% of the stock.
What is the Average Inventory Accuracy?
The typical inventory accuracy varies based on industry, business scale, and specific inventory management practices. Research indicates that the average accuracy rate for most businesses hovers around 65%. This suggests ample room for improvement for many businesses. By embracing best practices and routinely monitoring and improving inventory accuracy, businesses can progressively enhance their accuracy rates.

Apr 21, 2023 | Blog
Struggling to maintain a balance called stock control, in your stockroom? Overstocking or running out of products to meet customer demands? It might be time to refine your inventory control system.
What Is Inventory Control?
Inventory control systems focus on overseeing and managing a company’s stock to maintain the right amount of goods. The primary objective is to reduce costs while ensuring there’s enough inventory to satisfy customer needs. This involves monitoring inventory levels, predicting demand, and making decisions about ordering, stocking, and shipping products.
Why Is Inventory Control Important?
Accounting Accuracy
Inventory control guarantees accounting precision by offering insights into a company’s inventory levels and cash flow. Accurate data allows businesses to make informed decisions about purchasing, stocking, and shipping. With precise records, businesses can determine the number of goods sold, gross profit, and net income.
Organizational Control
Techniques like cycle counting and ABC analysis offer organizational inventory control techniques, helping businesses manage their stock levels efficiently. Proper practices, including safety stock and reorder points, ensure businesses have the right amount of products to meet customer demands without overstocking.
Quality Control
By diligently tracking inventory levels, businesses can spot discrepancies or quality issues. This ensures the quality reputation of a business and boosts customer satisfaction. Using Point-Of-Sale (POS) and Just-In-Time (JIT) inventory tracking systems ensures smooth inventory movement throughout the supply chain. Investing in such technologies provides insights into stock control and timely replenishment.
Challenges of Inventory Control
Human Error
Manual data entry can lead to mistakes. These errors can result in incorrect stock levels, increased costs, poor inventory management and missed sales opportunities. An effective inventory control system, using barcode or RFID technology, can minimize these errors.
Finding the Time and Resources
Setting up proper inventory control, can be resource-intensive. Regular stock counts, demand forecasting, and data analysis can be challenging for resource-limited businesses. However, investing in inventory management software can streamline the process, saving time and resources.
Visibility
For businesses with intricate supply chains or multiple locations, maintaining visibility into raw materials and stock levels can be challenging. Collaborating with suppliers and implementing effective purchasing practices can help maintain visibility and ensure a smooth supply chain.
Inventory Control vs. Inventory Management
While inventory management oversees the entire inventory system, perpetual inventory control system focuses on ensuring accuracy and minimizing costs. It emphasizes optimizing stock levels for profitability.
Examples of Inventory Control in Practice
Periodic Inventory System
This manual inventory account system involves regular physical stock counts. It’s suitable for small businesses with limited products.
Retail Operating System
Designed for retail businesses, this system tracks real-time inventory levels, monitors sales, and reorders products automatically to meet customer demand.
Perpetual Inventory System
This real-time system uses barcodes or RFID technology for tracking. It ensures accurate records and optimal stock levels.
Spreadsheet to Control Inventory
A basic tool for small businesses, spreadsheets can also track inventory, stock levels and sales trends. However, they can be error-prone and lack real-time tracking.
Effective Inventory Control Process Tips
- Consistency in Labeling: Use barcodes or QR codes for easy identification and reduced errors.
- Real-Time Tracking: Use inventory control software like ShipHero for real-time monitoring.
- Set Reorder Points: Based on sales history, set reorder points to avoid stockouts.
- Back-up Data: Regularly back up your inventory data to prevent data loss in case of a system failure. Consider using cloud-based inventory management software to store your data securely and enable remote access to your inventory records. This can also help businesses optimize their supply chain management by providing access to inventory data for multiple vendors and destination points.
- Regular Audits: Conduct regular physical inventory counts to identify any discrepancies between the actual physical inventory levels and the recorded levels. This can help you identify any issues with your inventory control process and take corrective action to improve accuracy and efficiency.
Inventory Control Systems to Consider
Inventory control and inventory management systems are vital for product-based businesses. ShipHero’s Warehouse Management Software offers a comprehensive solution, providing real-time tracking, automated replenishment, and detailed analytics.
Lead Time in Inventory Control
Definition and Importance
Lead time in inventory control refers to the duration between placing an order for goods and their actual arrival. It is a crucial metric as it influences various aspects of an inventory management system, including stock levels, order quantities, and safety stock calculations.
Factors Affecting Lead Time
Several elements can impact lead time:
- Supplier Factors: Delays can occur if a supplier doesn’t have sufficient stock or if they have inefficient processing and dispatch systems.
- Logistical Factors: Transit issues, such as transportation delays, customs processes, and shipping method, can extend lead times.
- Demand Variability: If an item experiences sporadic or unexpected demand, it might affect how quickly replenishment orders can be processed and received.
Managing and Reducing Lead Time
Businesses aim to reduce lead times to optimize inventory levels and reduce holding costs. Some strategies include:
- Establishing Strong Supplier Relationships: This can lead to priority treatment and faster processing times.
- Opt for Local Suppliers: Choosing suppliers closer to the business location can drastically reduce transportation time.
- Efficient Order Processing: Streamlining the order process within the business can reduce internal delays.
Dead Stock
Definition and Implications
Dead stock refers to various types of inventory items that have remained unsold for a lengthy period and are unlikely to be sold in the future. These items can tie up capital and occupy valuable warehouse space, preventing the storage of more profitable items. Moreover, the longer items remain in storage, the higher the likelihood they will become obsolete or spoil (in case of perishable items).
Causes of Dead Stock
Several reasons can lead to the accumulation of dead stock:
- Overordering: Purchasing more stock than demand requires.
- Changing Market Trends: Products may no longer be in vogue or may become obsolete.
- Inadequate Marketing: Failing to adequately promote or market a product can lead to decreased sales.
Managing and Reducing Dead Stock
To manage dead stock:
- Inventory Analysis: Regularly review inventory to identify slow-moving items.
- Discounting: Offer promotions or discounts to encourage sales of stagnant items.
- Bundle Sales: Package dead stock items with popular items to increase their sales appeal.
- Return to Supplier: If possible, return unsold items to suppliers.
Understanding both lead time and dead stock is essential for effective inventory management. By managing these aspects, businesses can optimize their most efficient inventory control processes and ensure profitability.
Inventory Control FAQs
What Is Basic Inventory Control?
It’s the process of using inventory control procedures overseeing product quantity and location within a business, ensuring optimal stock levels while minimizing costs.
What Is FIFO and LIFO in Inventory?
FIFO (first in, first out) are inventory control methods and LIFO (last in, first out) are inventory costing methods. FIFO sells the oldest items first, while LIFO sells the newest items first.
What Is Good Inventory Control?
It involves managing stock levels effectively, tracking inventory accurately, forecasting demand, using efficient replenishment processes, and employing inventory control tools. Regular audits and data analysis are also essential.

Apr 21, 2023 | 3PL Warehouse Management, Blog, Warehouse Management Software, Warehouse Operations
In today’s digital age, the Internet of Things (IoT) revolutionizes how businesses manage their warehouses. With the rise of smart technologies, warehouse management is now more efficient and cost-effective than ever before. Let’s look at IoT and how it can be applied to warehouse management.
What is IoT?
In simple terms, IoT is a network of physical devices interconnected to the Internet, enabling them to capture and transmit data.
IoT devices are changing how warehouses operate by providing an unprecedented level of real-time data analysis. eCommerce businesses and 3PLs can use this real-time data to track inventory movements, monitor environmental conditions, and inform business decisions.
As such, IoT devices are a significant development for warehouse management, leading to increased accuracy, efficiency, and improved overall operations.
Benefits of IoT in Warehouse Management
We can already see the massive benefits of using IoT in warehouse management. Not only does it provide a precise method of inventory management, but it also increases safety and security, decreases costs and waste, and makes data easily accessible for analytics purposes. Let’s dig a little deeper into the benefits of IoT in warehouse management – exploring what advantages could be awaiting you just around the corner.
Improved Inventory Management
When it comes to warehouse management, detailed data analytics can be a game changer. IoT solutions allow you to monitor every action and process all data, even for individual products in specific locations.
This wealth of information allows you to forecast what’s needed and what needs to be improved in scheduling your inventory effectively. Optimizing your warehouse space and minimizing the time it takes to locate products can drastically improve your business’s efficiencies. With the right data analytics tools and strategies, you can stay one step ahead and develop a solid plan for future inventory success.
Real-Time Monitoring and Tracking
Beacon technology can achieve real-time monitoring and tracking of products. These small devices have an in-built battery that allows for continuous Bluetooth connectivity, enabling the precise tracking of assets. With this technology, businesses can streamline inventory management and better understand the movement of their products.
Increased Operational Efficiency
With the help of IoT devices, businesses can increase their operational efficiency and streamline inventory and warehouse management. Automating these processes minimizes costs, saves time, and improves overall performance.
Through real-time data analysis and intelligent insights from IoT, businesses can identify areas for improvement and make informed decisions that further optimize their operations. By utilizing these advancements, companies can reduce their expenses on labor and increase their productivity, ultimately leading to a more profitable outcome.
Reduced Costs and Waste
Reducing costs and waste has become a top priority for businesses. Implementing IoT warehouse solutions can go a long way in achieving this goal. By monitoring conditions and providing predictive maintenance, these solutions help detect early symptoms of equipment defects, thus reducing risks, downtime, and accidents.
In addition to mitigating potential losses, intelligent warehouses are highly efficient in resource utilization, resulting in increased revenue and reduced management expenses. As such, it’s easy to see why more and more companies are turning to IoT solutions to optimize their warehouse operations.
Enhanced Safety and Security
By expanding the use of smart sensors, warehouses can prevent accidents caused by human error. These sensors can alert workers to potential hazards such as overloaded racks or close encounters with forklifts.
Smart locks, cameras, and motion sensors can prevent fraudulent activities and product theft, enhancing security measures. These technological advancements can limit the risk of unforeseen circumstances and provide a secure environment for employees to work and maintain inventory. Enhanced safety and security measures benefit the company and ensure the well-being of those included in every step of the process.
IoT Applications in Warehouse Management
IoT applications, such as inventory tracking and sensor networks, have revolutionized warehouse management, resulting in more efficient and accurate inventory management. These applications have transformed traditional warehouse operations by allowing managers to track inventory, monitor equipment, and optimize processes in real time. Let’s look at the IoT applications in warehouse management and discover what opportunities await us!
Inventory Tracking
Warehouse management is an essential component of any company’s operations, and with the advent of IoT technology, the process has never been more efficient. One such application is RFID technology for tracking inventory. Unlike barcodes, RFID tags can store an enormous amount of data such as size, manufacturer, expiry date, serial number, production line, and much more.
Plus, RFID readers can scan up to 200 tags at once, a rate far superior to traditional barcode scanning methods. The result is improved inventory tracking and efficient management, ultimately reducing costs and increasing customer satisfaction.
Sensor Networks
Another significant advancement is using sensor networks to monitor temperature, humidity, and other environmental factors. This technology enables warehouse managers to better track the goods in and out, ensuring that products are stored under optimal conditions.
Integrating these sensors into the supply chain allows managers to follow items in any delivery step and monitor the temperature and humidity in transit. Sensors are also commonly deployed for light movement, moisture, and temperature sensing. Companies can proactively minimize supply chain risk by adopting sensors to moniter driver life.
Automated Guided Vehicles (AGVs)
Another approach to improving warehouse productivity is autonomous technology, such as automated guided vehicles (AGVs). They navigate an IoT warehouse using floor stickers, LiFi technology, vision cameras, and wires. The quickest route to any location is calculated by automated guided vehicles, and the inventory is restored without human supervision.
Predictive Maintenance
Predictive maintenance is a technology that uses IoT sensors to monitor equipment and machines’ working conditions. Combining this data with powerful machine learning algorithms can prevent breakdowns of forklifts or other material handling equipment, ensuring optimum production and minimal maintenance costs and downtime.
The smart sensors collect information about temperature, humidity, and leaks. A server can send commands to adjust HVAC systems or engage actuators automatically while connected to one system. This technology provides a valuable solution to the issue of costly, unexpected repairs that disrupt workflow and ultimately lead to losses in profits.
Revolutionizing Warehouse Management
The Internet of Things has revolutionized warehouse management, and the undeniable advantages should be explored, especially as it relates to inventory tracking, cost reduction, efficiency, and security.
The success of businesses today comes down to understanding customers’ needs and ensuring that suitable systems are in place to increase productivity and efficiency. IoT technologies offer many advantages when implemented correctly, and it has opened a new era of possibilities for warehouse management.
Our ultimate goal at ShipHero is to help warehouse managers maximize their operations by offering a platform that simplifies processes and helps them stay ahead of the competition. So, don’t let your business wallow in outdated operational systems when you could be one step ahead with the leading WMS!
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.
Let us know how we can help you today by scheduling a call HERE.
Apr 17, 2023 | newsroom
ShipHero has recently announced the launch of WorkforceHero as part of our industry-leading cloud-based Warehouse Management Software (WMS). As a new feature within the WMS, our clients can now leverage the data within the system to manage on-the-floor workers better, readjust priorities and track compliance throughout the day.
“What we asked ourselves was, how much is knowing what your warehouse team is doing at any given time worth to you?” Aaron Rubin, CEO of ShipHero, said. “We like to think that, as warehouse managers or even C-level executives, we know exactly what’s happening in the warehouse at any given time. But the truth is, that’s not the case.”
Improve Productivity by Taking a Big Picture Approach
WorkforceHero is designed to provide your operations team with an overview of what’s happening in your warehouse at any given moment. With that broad picture in mind, you can then use the data in ShipHero, knowledge of the priorities for the day, and your own expertise to:
Pre-assign and re-assign tasks
You know what projects need to be completed and which SLAs have to be met the minute you step on the warehouse floor. With WorkforceHero’s easy-to-read dashboard, your team can easily see who is on shift for the day and assign different tasks to each worker. Then, when they clock in, they’ll see exactly what they should be doing. This will help to eliminate any early shift confusion because jobs have already been assigned. And as priorities shift, you can re-assign different tasks to keep everything on track.
Maintain timekeeping, including breaks and lunches
WorkforceHero offers an easy clock-in, clock-out interface with the quick scan of a badge. This will keep track of employee in and out times and is also used to track breaks and lunches. The system will flag any employees who are not compliant so that you can easily see where and with whom issues need to be addressed. This increases employee accountability too.
Review performance records to find strengths and weaknesses
ShipHero already records a lot of data relating to picking and packing. With WorkforceHero, you can leverage this data to find your best pickers and packers and build teams that can fly through special projects. You can also identify team members who may need more training or oversight to increase overall productivity and help them succeed.
Create dynamic teams
With data comes insight, and WorkforceHero offers plenty. Use productivity data to keep your shifts well-balanced. Even out your pickers, packers, and water spiders to optimize productivity and efficiency throughout the day, no matter what’s on the docket.
Use Better Insights to Lower Labor Costs
WorkforceHero’s focus is to find ways for your teams to work smarter, not harder. With higher productivity levels brought about by pairing the right folks together, changing tasks and focus as priorities shift, and identifying areas for improvement, you can lower labor costs too. As a big chunk of your P&L, we know that finding some savings on labor can seem nearly impossible. But with WorkforceHero, you have the data and insights you need.
Plus, it will give your workers a better understanding of what is expected of them throughout the day and keep them motivated to move on to their next task. With the “ask for a job” feature, part of WorkforceHero’s touchscreen interface, you can decrease downtime between jobs. No employee likes to feel like they’re “stuck” during the day or have to search high and low for a manager. With “ask for a job,” you’ll be able to see which employees need a new assignment and provide direction quickly.
Provide Visibility to Off-Site Stakeholders
Another great benefit of WorkforceHero is its level of visibility. Anyone with the right permissions will easily be able to see what’s happening in the warehouse at any given moment. This is especially helpful for key stakeholders who may not visit the warehouse often or for those with multiple warehouses to oversee.
“Recently, a CEO told me of an experience he had during a winter storm,” Rubin said. “One of his warehouses needed to close due to weather, but he could still see what was happening in other facilities and determine how best to allocate resources and prioritize based on limited staff. That’s a huge shift in visibility that many owners just don’t have.”
WorkforceHero Works for Us, Too
Just like with ShipHero’s WMS, we’re confident in the importance of WorkforceHero because we’ve tested it ourselves. “We created the feature, first and foremost, to improve the productivity in our own facilities,” Rubin said. “We quickly saw how valuable this tool could be to our SaaS clients and started working on ways to make it available to everyone.”
We’ve seen great gains in productivity, especially with less downtime between projects and more autonomy for employees since they’re controlling their clock-ins and outs and break/lunch times. WorkforceHero has made it easier than ever to identify trouble spots and address them fast.
Rule the Warehouse with WorkforceHero
You know your teams work hard, but with WorkforceHero, you can now give your operations teams even more data and insight into increasing output and optimizing their team’s performance. Implementing WorkforceHero is fairly easy and just requires a call with our Client Support team to make sure all the jobs and roles are input correctly.
If you’re already a ShipHero WMS client, we invite you to reach out to Client Support now. If you’d like to learn more about ShipHero and WorkforceHero, schedule a demo with our Sales team today!

Apr 14, 2023 | Blog, Warehouse Management Software, Warehouse Operations
In today’s competitive automation market, managers and COOs are tasked with making decisions that will enable their 3PL to stay ahead of the curve. By leveraging digital twins, warehouses can meet ever-changing customer demands and save time and money. In this blog post, we’ll explore how digital twinning works and examine if it could be the future of automated warehousing for your 3PL.
What are Digital Twins?
A digital twin is a virtual replica of a physical warehouse that can be as simple or complex as needed. For example, suppose your warehouse workers move a pallet from one area of the warehouse to another. In that case, it shows in real-time on your digital twin software by gathering real-time data from sensors within the facility.
The use of digital twin technology allows for better oversight of the performance of an asset (a warehouse in this case), identification of potential faults, and informed decision-making regarding maintenance and the asset’s lifecycle.
Essentially, digital twins are computer programs that take real-world data and produce simulations or predictions of how a physical object or system will be affected by those inputs.
That way, you can optimize your operations without experimenting in the physical space. Plus, digital twins can act as prototypes for products that don’t even exist yet. They’re a powerful tool for 3PLs who want to stay on the cutting edge of automation technology.
The Importance of Automation
Finding enough skilled workers to keep pace with demand is challenging for most warehouse operations. Fortunately, we’re in the midst of a technological evolution allowing us to automate many of these processes.
Thanks to the Internet of Things (IoT) and artificial intelligence (AI) breakthroughs, warehouses can now handle changing eCommerce demands. Warehouse automation is now mainstream, and businesses that don’t invest in it risk being left behind.
The Benefits of Digital Twins for Warehouse Automation
Digital twins connect assets with data to create a complete picture of what’s happening. They allow teams to collaborate more effectively and make better decisions by analyzing past and present conditions and predicting future issues. Using simulation and 3D visualization, companies can understand how different scenarios might play out before they even happen. Just look at some of the benefits of digital twins.
- Improved efficiency: Using digital twins can identify inefficiencies in the warehouse operation and suggest improvements, such as optimizing the warehouse layout, reducing worker travel time, and reducing order picking and packing time.
- Predictive maintenance: Monitoring equipment health and predicting when maintenance is required can reduce equipment downtime and extend its lifespan with digital twins.
- Real-time monitoring: Digital twins allow warehouse managers to monitor inventory. Warehouse managers can use digital twins to track inventory levels in real-time and detect any errors in real-time, improving visibility and reducing errors.
- Risk reduction: A digital twin can identify risks and hazards in a warehouse, such as collision risks, allowing managers to mitigate them.
- Cost reduction: Using digital twins, warehouses can improve profitability by optimizing processes and workflows.
Challenges of Digital Twins in Warehouse Automation
One big hurdle is how disruptive the adoption process can be for an organization. Digital twins can transform the way warehouses operate, but getting there involves change that touches many areas of a company. It’s like going through a renovation — the result can be amazing, but the construction process can be pretty disruptive.
- Data quality: To be effective, digital twins require accurate and current data. Simulated results can be inaccurate when the data is incorrect or incomplete.
- Complexity: Developing and maintaining digital twins can take significant time and resources, requiring specialized skills and knowledge.
- Integration: Integrating digital twins can be challenging, requiring careful planning and execution.
- Cost: Implementing digital twins requires the use of hardware, software, and trained staff, all of which can be costly.
The Future of Digital Twins and Warehouse Automation
As eCommerce continues to increase, companies are scrambling to find ways to stay ahead of the competition in the fulfillment game. And that’s where digital twins and warehouse automation come in. They have the potential to revolutionize the way warehouses operate, making them faster and more efficient than ever before.
But the impact of digital twins doesn’t stop there. The technology has already proven itself in industries ranging from healthcare to manufacturing, and even entire cities are starting to leverage it for more intelligent infrastructure. It’s safe to say that the future of digital twins is something to keep an eye on, as it will continue transforming how we live and work.
As we move into this digital age, these virtual counterparts of people, products, equipment, buildings, and cities become increasingly prevalent. From facility management to vehicle customization, digital twins provide a revolutionary path to streamline and optimize warehouse operations. The eagerness for cutting-edge technologies will only propel digital twins’ capabilities further in such endeavors.
Leveraging Digital Twins
Digital twins are a powerful technology that can revolutionize warehouse automation, and it’s no surprise, given all of the advantages they offer. Utilizing digital twins enables warehouses to streamline all aspects of tracking inventory, which, in turn, virtually eliminates human error from the equation. Ultimately, digital twins have the potential to become an industry standard for warehouse automation capabilities quickly.
ShipHero’s WMS is a comprehensive solution that helps retailers leverage comprehensive inventory and order management to reach peak efficiency channel-wide. With its user-friendly interface, deep integrations, and customizations, ShipHero can help you free up your warehouse team’s valuable time so they can work on high-value tasks instead of manual data entry. Click now to learn how to integrate ShipHero’s WMS in your warehouse!

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.
Let us know how we can help you today by scheduling a call HERE.