Aug 2, 2023 | Blog
The path to Shopify success is paved with efficient inventory management, streamlined order fulfillment, and the power of the perfect Warehouse Management System (WMS). Join us as we explore the vital role of a top-notch WMS in revolutionizing your operations. Because the right WMS can be the game-changer that propels your business to new heights of success.
What is a Warehouse Management System (WMS)?
Efficient inventory management systems are crucial for success. This is where a WMS comes into play. A WMS is a software solution that helps businesses optimize their warehouse operations, improve inventory control, and streamline order fulfillment processes.
What is Shopify?
Shopify is a leading eCommerce platform that empowers entrepreneurs and businesses of all sizes to set up online stores and sell products to customers worldwide. With its user-friendly interface, robust features, and extensive app ecosystem, Shopify has become the go-to choice for retailers, merchants, and sellers across the globe.
What Should a Shopify WMS Do?
A Shopify WMS should seamlessly integrate with your Shopify store and provide a wide range of functionalities to enhance your inventory management and order fulfillment processes. It should also offer features such as real-time inventory tracking, accurate order management, efficient replenishment capabilities, and comprehensive reporting and analytics. With a WMS, you can achieve optimal inventory control, streamline operations, and deliver exceptional customer experiences. And without it, your fulfillment might get backlogged or even miss entire orders!
Criteria for Choosing the Best Shopify WMS
When selecting a Warehouse Management System for your Shopify store, several key factors come into play. Here are some to consider:
Connection
A seamless integration enables real-time data synchronization, ensuring that your inventory levels, order statuses, and customer information are always up to date. With automatic updates flowing between Shopify and your WMS, you can eliminate manual data entry and the risk of data discrepancies. Whether it’s tracking inventory levels, monitoring order statuses, or accessing customer information, a reliable connection is vital for maintaining a cohesive and efficient workflow. This means the integration capabilities of your WMS partner should be robust.
Features
When evaluating different WMS options, thoroughly assess the features they offer. Each WMS provides different features so you should find the one that most aligns with your specific business needs and goals.
Start by evaluating the inventory tracking capabilities of the WMS. Look for features that enable real-time tracking of inventory levels, allowing you to have a clear view of stock availability and prevent stockouts.
Next, consider the order management features. A robust Shopify WMS should offer efficient order processing, including features such as order consolidation, batch picking, and order prioritization. The ability to manage multiple sales channels, synchronize orders across platforms, and automate order fulfillment workflows can greatly streamline your operations.
Barcode scanning capabilities are another important aspect to consider. Barcode scanning functionality enables faster and more accurate inventory management and order processing.
And lastly, integration with other sales channels is crucial if you sell across multiple platforms. Ensure that the WMS seamlessly integrates with other popular sales channels like Amazon, eBay, or Etsy. This integration enables centralized inventory management and order processing, preventing overselling or discrepancies between platforms.
Cost
Some WMS options may offer subscription-based pricing, where you pay a monthly or annual fee for access to the system. Others may charge transaction fees based on the number of orders processed through the WMS. But while it’s important to consider the cost, it’s equally crucial to assess the potential return on investment (ROI) that the WMS can offer. Calculate the efficiency gains, reduction in errors, and time savings that the WMS can bring to your business. Evaluate how these benefits translate into increased revenue, cost savings, and improved customer satisfaction. By weighing the potential ROI against the cost, you can make a more informed decision and choose a WMS that offers the best value for your investment.
Implementation
Look for a WMS provider that offers user-friendly setup processes and provides clear documentation to guide you through the implementation steps. The availability of reliable customer support is crucial in case you encounter any challenges or have questions during the implementation process. A well-supported and smooth implementation can contribute to a successful transition to the new WMS and ensure minimal disruption to your operations.
The Best WMS for Shopify
After careful consideration of the criteria mentioned above, one Shopify WMS stands out for its exceptional features and seamless integration: ShipHero. ShipHero offers a comprehensive and user-friendly solution for warehouse management, order fulfillment, and inventory control. Its robust feature set sets it apart as one of the best options for Shopify users. In fact, 10% of all Shopify Plus stores globally use ShipHero!
ShipHero provides real-time inventory tracking, allowing you to monitor stock levels and make informed decisions about replenishment. With efficient order management capabilities, you can streamline the entire fulfillment process, from picking and packing to shipping. The platform also offers comprehensive reporting and analytics, empowering you to gain valuable insights into your business performance and make data-driven decisions. Plus, its user-friendly interface is available on both mobile and web platforms!
To explore how ShipHero can transform your Shopify store, click here!
Key Takeaways
When selecting a WMS for your Shopify store, you can find the right WMS by considering these four factors: connection, features, cost, and implementation. These factors will determine the effectiveness and efficiency of your warehouse management and order fulfillment operations. And ShipHero emerges as a top contender in the WMS landscape due to its impressive array of robust features, seamless integration with Shopify, and user-friendly interfaces. With ShipHero’s commitment to excellence, you can confidently take your eCommerce business to new heights.
Frequently Asked Questions
What are the Advantages of using a WMS for an eCommerce Business?
Using a WMS for an eCommerce business brings numerous advantages, including improved inventory accuracy, enhanced efficiency in order fulfillment, reduced errors and mistakes, better visibility into inventory levels and customer experience, and streamlined reporting and analytics for informed decision-making.
How does WMS Improve the Efficiency of Order Fulfillment?
A WMS enhances order fulfillment efficiency by providing real-time inventory tracking, optimizing warehouse operations, automating tasks such as picking and packing, enabling accurate order management, and providing comprehensive visibility into order status and fulfillment processes.
How to Choose the Right WMS for Your eCommerce Business?
To choose the right WMS for your eCommerce business, consider factors such as seamless integration with your eCommerce platform (such as Shopify), robust inventory management features, scalability, user-friendly interfaces, efficient order management capabilities, and reliable customer support. Additionally, evaluate cost-effectiveness and compatibility with your specific business needs and goals.
Aug 2, 2023 | Blog
Businesses are only as efficient as the warehouses that store their stock and the software applications that keep track of supply chain logistics operations. Once your eCommerce business gets big enough that you can no longer fit all of the inventory in your garage, you must outsource processes such as warehousing and shipping to a third-party logistics (3PL) company. Successful 3PL enterprises manage their warehouse operations with warehouse management systems (WMS). These tools enable them to keep track of relevant information and control order management.
What is WMS?
WMS stands for warehouse management system. A WMS is software that helps you improve organization, visibility, and efficiency in your warehouse. Through integrations and automation, WMS helps you manage orders, stock levels, and shipments. WMS software with an intuitive user interface can be the solution you need if your current system makes it too time-consuming for employees to scan items and enter data about the locations and inventory levels of certain products. You can choose the features you need for your warehouse, and the WMS platform can integrate easily with the software that you already use for accounting and other business solutions.
What is eCommerce?
eCommerce is a general term for businesses that sell products on the online market. Some eCommerce businesses operate on well-known platforms like Amazon, Shopify, or Etsy, while others simply sell products through their own websites. Most eCommerce ventures start out as small businesses that offer a very limited number of products. In these cases, all of the picking and fulfillment of orders takes place in the business owner’s home or rented office space. If your eCommerce business has more customers than you have square feet of space in your garage, though, you will need to outsource order fulfillment and other warehouse processes.
Importance of Warehouse Management Systems for eCommerce Stores
In an eCommerce business, most of the work is taking place far from your location, perhaps in another state; this is just how the eCommerce industry works. Through your eCommerce platform, you see the customers place orders. When you integrate your eCommerce platforms with WMS, you get to see what is going on at the warehouse. It gives you a bird’s eye view of supply chain management. Just by viewing the analytics reports and watching the barcode scanning update itself in real-time on your dashboard, you get insights into what is going on with the movement of your products. You can follow the order tracking from the distributors all the way to your customers all over the world.
Efficiency and Productivity
The warehouse manager can quickly see how much more efficiently the warehouse operates once the companies have implemented WMS. With only a little bit of training, warehouse employees can use the WMS for all the tasks they need it for. Not every employee needs to be proficient in every functionality of the whole software suite. WMS enables warehouse workers to improve their speed and accuracy. Therefore, it enables warehouses and the eCommerce companies they serve to save on costs.
Inventory Management
Inventory management software, through ShipHero, NetSuite, or another major company, is a great addition to fulfillment centers. You will start to notice the benefits immediately. The software will help your warehouse and all of your employees improve their performance. Because of the reporting capabilities of WMS, you can start charting the improvement of your warehousing operations as soon as you install the software.
Order Accuracy
WMS is effective at reducing human error in all aspects of the warehouse’s operations, from putaway to packing. Mistakes in any area of the warehouse can lead to inaccurate order fulfillment. WMS can enable a 3PL warehouse manager to submit accurate orders to vendors, thus preventing overstocking. Retailers who use business software such as Oracle to manage their online sales marketplaces can also ensure that their customers are receiving the things they ordered with every delivery.
Cost Savings
WMS helps you save on shipping costs. For example, with greater order processing accuracy, you don’t have to do multiple deliveries just to ensure that one customer gets the correct box of products that he or she ordered. The employees’ mobile devices update their to-do lists in real-time. This enables each employee to fulfill more orders in a single shift. The WMS can quickly rearrange the workflow as necessary and communicate it to the employees in an understandable way.
Customer Satisfaction
Customers are loyal to certain brands not just because of the quality of the products but also because of the approach that the company takes to customer service. eCommerce brands with helping customer support, fewer errors in delivery, fewer delays due to stockouts, and more convenient shipping options can attract repeat customers as effectively as those whose products have the most snob appeal or sync with the latest trends. Installation of WMS is the first step to improved customer relationship management (CRM).
Scalability
Even when technology was not nearly as advanced as it is today, it was more cost-effective for businesses to operate on a large scale. WMS solutions make it easier to scale your business, whether your goal is to let the 3PL central team deal with all of the inventory control and supply chain optimization or to expand your operations into Europe, Canada, or anywhere else in the world. WMS offers you transparency about sales orders, workflows, and other steps in the supply chain, no matter how many different warehouse locations store your products.
Best WMS For eCommerce
ShipHero is the best WMS for eCommerce, but some other popular WMS are Edge, ShipBob, WooCommerce, and Magento. ShipHero offers you solutions for many different business processes. It includes multi-warehouse allocation management, inventory/order management, integrations with NetSuite and other major eCommerce partners. ShipHero has an advantage over its competitors when it comes to answering clients’ questions, knowledge of shipping management, and interacting smoothly with all of the devices and barcode scanners in the facility.
Understanding Different Types of Warehouse Management Systems
Not all warehouse managers should choose the same software solutions. Instead, you should consider the various pricing plans and decide which version of the WMS modules will help your warehouse staff complete their daily tasks and will provide important inventory information to help you focus on your business development planning goals and decisions. You should focus on paying only for the services you need and on a user experience that will make labor management easier by not alienating workers.
Standalone WMS
Standalone WMS is best for users who operate relatively small warehouses. It is a good choice if you don’t need one software suite to do everything. For example, maybe you already use QuickBooks for accounting, billing, and payroll, but you need the WMS to check the status of stock levels and replenishment. The size of your business makes a lot of difference regarding whether a standalone WMS is the solution to your inventory tracking problems.
Integrated WMS
Integrated WMS is useful for 3PL providers that manage multiple parts of the supply chain and must constantly keep their eyes on performance metrics. It handles everything from yard management and cross-docking to barcodes, batch counting, cycle counting, shipment tracking, and printing labels. Integrated WMS is useful for any 3PL company that employs complex fulfillment methods and deals with large amounts of stocks. Wholesalers and distribution hub warehouses alike can benefit from integrated WMS and the large number of features it enables you to access.
Cloud-Based WMS
If hardware is the backbone of your warehouse, then perhaps you should switch to cloud-based WMS carriers. Computer hard drives are easy prey for hackers. If hackers can guess one password, then they can breach all the devices on your network, and steal data that is worth more than all the goods in your warehouse. WMS with cloud storage is much better from a cybersecurity perspective.
On-Site WMS
If you have a mortal fear of Internet glitches, or if you just like to keep all the most important details stored on devices that bear your company’s logo, you can opt for on-site WMS. It has the same functions as cloud-based WMS and allows you to keep track of all the details of manufacturing and purchasing, even if it is not the wave of the future like cloud-based WMS.
How to Choose The Best Warehouse Management Software for Your eCommerce Business
Choosing the most appropriate WMS for your eCommerce business requires some research. Reading reviews of WMS platforms and watching promotional videos can only get you so far.
Evaluate Your Current System
Do you use any business software now? How well does it meet your needs? Which tasks are time-consuming to perform with your current WMS? How much do you pay for your current WMS, and how much return on investment do you get for it?
Identify Your Needs
In order to know what you want from a WMS, you have to know who you are as an eCommerce company. Some WMS were designed for warehouses that serve B2B operations and materials resource planning (MRP), while others are places for small businesses to park their lovingly crafted merchandise so that it can quickly reach their small but enthusiastic customer base. Which warehouse processes are you hoping to outsource?
Set Your Budget
One of the biggest mistakes you can make when buying business software is to pay for more features than you need. Don’t buy an iPhone or an Android when all you really need is a flip phone. When you set your budget at the beginning of the search, you cannot get too overwhelmed by the vast number of options. You can automatically eliminate the ones that are beyond your budget and only choose among the options that you know you can afford.
Check for Scalability
If you are still sending each package through UPS or USPS, will your WMS handle the distribution through automated processes? When you identify the needs of your business, you should think not only about your current needs but also your company’s short-term and long-term goals and how your needs will change as you achieve those goals.
Consider Integration Capabilities
How well the WMS integrates with other software applications that your company already uses is an important factor in your choice of WMS. Without seamless integrations, you will have to deal with time-consuming transfers of data and migration of files to the new system. This could consume a lot of time and cause disruptions to the operations of your warehouse.
Prioritize Ease of Use
The smartest WMS that can accurately predict what will happen at every point in the supply chain is useless if you and the employees of your warehouse cannot use it easily. User-friendly functions and an intuitive user interface are among the most important criteria for choosing a WMS.
Research Vendor Reputation
You should not base your entire decision on what you hear through the grapevine, but reading reviews of the WMS can help you decide. Look for reviews from companies that are similar to yours and pay more attention to general trends in the comments than to glowing praise or harshly-worded criticism.
Technical Support
Even the most user-friendly software will sometimes do things you don’t expect it to do, especially when you first get started using it. Technical support may be the second most important criterion after user-friendliness.
Request a Demo or Trial
No matter how many reviews you read, it is hard to know how easily you will get used to the software unless you try it out. If a WMS offers a free demo or trial, this is a mark of good customer service.
Assess Return on Investment (ROI)
Don’t automatically go for the cheapest WMS. Instead, think about how it will help you save on costs and increase your profits.
Key Takeaways
WMS can help your eCommerce business operate more efficiently, save on costs, and scale its operations.
FAQs
These are some common questions that eCommerce business owners have about WMS software.
What are Warehouse Management Activities?
Warehouse management activities are the tasks your employees must do to play their role in supply chain logistics. Warehouse management activities include cycle counting, putaway, and replenishment of stock levels.
How Much Does Warehouse Management Software Cost?
Most warehouse management software is available on a monthly subscription basis. The price per month varies according to which WMS software package you buy.
What are some Free Warehouse Management Software Options?
Some very simple business software applications are included with Microsoft Office, but these are only suitable for the smallest businesses. If your eCommerce operation is big enough to need warehouse space, you need a WMS subscription.
Contact ShipHero today for a demo.
Aug 2, 2023 | Blog
Outsourcing some of your operations to other organizations is a necessary part of the growth of eCommerce companies. Engaging the services of third-party logistics (3PL) solutions providers is supposed to help you save time and money, but it has its challenges, especially in the beginning. Fortunately, technology can make the process easier. Your 3PL company should choose a WMS (Warehouse Management System) platform that meets your requirements and those of your team and clients. There are plenty of 3PL WMS systems out there, but they differ in their efficiencies, integrations, and implementations. Choosing the best WMS software platforms can help you achieve success with your current clients and even attract a new, lucrative project.
What is WMS?
A WMS (Warehouse Management System) is a software solution that manages and implements warehouse processes in real-time. It is more comprehensive than just using fulfillment software. Warehouse management systems provide you with many different warehouse operations, such as order fulfillment, storage of goods, the printing of shipping labels, and managing workflows such as FIFO. Choosing the right warehouse management software suite can help warehouses operate more efficiently so that they can serve their customers more effectively.
What are 3PLs?
3PL stands for third-party logistics, and it is a common way of doing business in the eCommerce industry. In a 3PL setup, the company makes and ships the products at a warehouse that the eCommerce retailer company does not own. The company that owns the warehouse (the “third party” in third-party logistics) is in charge of fulfilling the orders and other warehouse functions. All WMS systems collect a lot of data regarding tracking, distribution, and other aspects of the supply chain. They also automate tasks to reduce labor costs and prevent miscommunications among workers. Some of them even have features that enable the software to make planning decisions, such as when to reorder certain products. Warehouses that engage in third-party logistics functionalities need WMS to serve their clients and their client’s customers efficiently so that they can stay competitive in the market.
Why is WMS Important for 3PLs?
WMS is important for 3PLs because a machine can keep track of more information at one time than a human being can, even a human being with a prodigious mind. When a warehouse implements WMS software, the WMS sends the relevant information to each employee’s mobile device. If your task today is order fulfillment in the shoe aisle, then your dashboard only shows you which shoeboxes you are responsible for picking, where to find them, and which truck to put them on so that the appropriate person can pack them. 3PL companies are also often in charge of ordering supplies, shipping orders to customers, and processing customer returns. Therefore, accuracy and traceability are of paramount importance for 3PL WMS.
How to Choose the Right WMS for Your 3PL
Choosing a WMS for your 3PL company is not something that you should do on a whim. You should research several 3PL WMS products from various companies before you make a decision. To do this, first, read some blog posts or a user guide or watch a demo video of the software’s features on the website of the WMS company. Write down the questions that come to your mind after your preliminary search for information about WMS products. Then call some WMS companies and ask your questions to someone in the sales or customer service department. Interacting with the company that makes the WMS is an important step because you want to make sure that the people who will help you set up and troubleshoot the WMS are helpful.
Scalability and Flexibility
WMS helps you be more accurate and efficient in the execution of your warehouse processes, even if you operate multiple 3PL warehouses in different parts of the country. You can use data to ensure that customers are receiving the package in record time. The WMS is always collecting and analyzing data about transportation costs and times so that the packages can reach the customers after the fewest number of steps and with the fewest errors. A WMS can do this as easily for just a few types of products as for a whole warehouse, and it can do it as seamlessly for multiple shipments of varying sizes as it can for a single order. Best of all, when there are glitches in the supply chain, the WMS can offer quick fixes, so you can easily work with the materials you have to meet the demands of the market.
Integration Capability
The best WMS for 3PLs integrates easily with a variety of business software platforms. You don’t have to buy the rights to access multiple new applications just to add WMS to your 3PL operation. If you use different software for invoices, charges, billing, reports, or other aspects of your business, WMS for 3PLs will integrate smoothly with your other software. WMS for 3PL plays well with others. When you implement WMS for 3PL, your warehouse employees will not notice any difference in their work device usage except that they will see the WMS logo on their portals and a longer list of options when they look at their dashboards.
Multi-Client Support
Your mission as a 3PL service provider is to partner with different companies in different areas of the country that use your warehouse location as a piece of their supply chain. Your clients have the goal of providing customer satisfaction and affordable prices for their customers, and your warehouse operations are tools that enable them to achieve that goal. Most 3PL providers store products belonging to a range of different companies in the same warehouse. Therefore, you must meet the needs of multiple clients simultaneously and ensure the timely delivery of all of their products. WMS for 3PL can help you fulfill that mission.
Real-time Visibility
The most significant relief that WMS brings to 3PL providers is that it enables warehouse managers to see what is going on in multiple areas of multiple warehouses all at the same time. WMS for 3PL gives you a bird’s eye view of the entire supply chain. You can see what is going on in different marketplaces, and you can use these insights to make wise decisions that benefit you and your clients. The real-time visibility that you get with WMS and transportation management systems (TMS) for 3PL can help you reduce errors and save on costs.
Automation Capabilities
Warehouse jobs have a reputation for being boring, monotonous, and dangerous, but automating some of your warehouse processes can help keep workers away from safety hazards and reorient their work toward tasks that require human judgment and communication while leaving the truly monotonous tasks to the robots. With WMS for 3PL, workers can enter input on devices, or simply watch the robots do their work as the machines do predictable tasks such as counting and stacking items or kitting products that customers frequently order together.
Advanced Inventory Management
Frequently reevaluating and modifying your warehouse workflows can help your warehouse stay efficient and competitive. For example, you can pick nonperishable products on a first in first out (FIFO) basis, while picking and shipping perishable food items, including those with a fairly long shelf life, on a first-expire-first-out (FEFO) basis. WMS can easily keep track of the complex organization of your warehouse and clearly and efficiently communicate it to workers on their devices.
Reporting and Analytics
Even the simplest WMS suites have robust reporting and analytics features. You can generate reports on demand or at regular intervals, and you can even watch the data update itself in real-time. You can use the reports generated by your WMS to make decisions about warehouse layout, reordering, pricing, and transportation routes, among other matters. You can even authorize the software to make certain decisions on its own based on the data. For example, you can rely on it to reorder a certain item whenever the stock level gets below a certain point.
Customer Portal
The most complete WMS for 3PL has a web portal not only for managers and employees but also for customers. Consumers who order products stored at your warehouse can track their orders in real-time. The customer portal can also help customers navigate the return process and provide necessary feedback.
Ease of Use
Business owners are familiar with the ups and downs of implementing new software or installing new devices at work. With the best WMS for 3PL, getting started working with the new WMS is as easy as downloading a game on your mobile phone and playing it. The user experience of WMS for 3PL is intuitive for employees and customers alike.
Vendor Support and Training
Even though it is easy to get used to the new WMS, many employees find it beneficial to have someone explain to them live how to use the features of the WMS. In addition to online training videos, we offer in-person training to help the employees in your warehouse and your company get used to using the WMS features that they will be using in their work on a regular basis.
WMS for Different Industries in 3PL
Different industries have different warehouse management needs. WMS suites are available that are suited to different industries, such as raw materials, wholesale goods, and retail distribution centers. If your 3PL company is in charge of various parts of the supply chain, then you should choose a WMS that is equipped to manage the processes of various kinds of warehouses.
Best Integration of WMS in 3PL
Most companies that seek to implement WMS are not small startups that have just recently gotten the idea that they want to store and distribute products. Rather, they are established 3PL service providers that have been in the supply chain logistics industry for years. They already use business software that works for them, so they need a WMS that integrates well with it.
Cost of Implementing WMS in 3PL
The days of installing software onto each individual device in your network from a CD-ROM are long gone. Not only is implementing business software, including WMS for 3PL, much faster than it used to be, but it is also less expensive. WMS for 3PL is available for a monthly subscription fee, with different packages available at different price points.
Pros of WMS for 3PLs
WMS can help 3PLs save on labor costs and shipping times because they enable warehouse managers to see what is going on at all parts of the supply chain. They reduce human error and lack of efficiency by tracking the progress of the work in real-time and updating the information on workers’ devices on an ongoing basis.
Cons of WMS for 3PLs
Once you get started with WMS, you will wonder how your warehouses ever managed to operate without it. All new software programs involve a learning curve, but it should not take long before the employees of your warehouse get used to using the new WMS.
Key Takeaways
Automation and analytics are key to operating a warehouse efficiently and ensuring that the supply chain operates in a streamlined manner. WMS can help your warehouse or 3PL operation reduce labor costs and increase the speed and accuracy of work.
FAQs
These are some common questions that 3PL service providers ask about warehouse management systems.
What is the Difference Between ERP and WMS?
ERP stands for enterprise resource planning. Warehouse management systems (WMS) are only one aspect of ERP.
What is the Pricing for an Extensive 3PL Warehouse Manager?
An extensive 3PL warehouse manager costs a monthly subscription fee that is higher than the subscription fee that you would pay for a simpler one.
Is There a Suitable 3PL Software for Small Businesses?
3PL software packages are available for businesses of all sizes. You can choose a 3PL WMS suite that fits the needs and size of your business.
Contact ShipHero today for a demo.
Aug 2, 2023 | Blog
The right software applications can provide solutions to many of the challenges that small or medium-sized businesses face. Software as a service is not new; since its first implementation several decades ago, it has become one of the most valuable resources to which businesses have access. Your company should put as much thought into the cloud-based services it engages as into the computer hardware that it buys. If you are operating a third-party logistics operation, then the right warehouse management system can help support the teams in your warehouse as they perform the warehouse processes for which your organizations are responsible.
What Is WMS (Warehouse Management System)?
A warehouse management system (WMS) is a software platform that warehouses use to help them with inventory management and order fulfillment. Its various functions help you with warehouse operations such as putaway, cycle counting, barcode scanning of items, and picking. It can improve inventory accuracy, labor productivity, and customer satisfaction.
The WMS is the operating system of the entire warehouse, but each employee and each piece of equipment interacts with the WMS functions in a different way. An employee in charge of bar code scanning will look at his or her dashboard to find the locations of the bins which are the focus of today’s assignment. As the barcoding employee scans each item to get it ready to pack or stock, the WMS automatically updates as each piece of input that comes in. When the employee finishes one task, the WMS displays new tasks on the employee’s mobile device.
What Is NetSuite?
NetSuite is a leader in business software and software as a service industry. It has been helping companies achieve success since the old days when computers were huge and software had to be installed onto a device from a floppy disk and then launched in multiple steps. NetSuite has evolved with improvements in computer technology, and today it remains a leader in a world where business software operates with much greater efficiency than it did in the days when people used to try to resolve computer issues by blowing on a floppy disk or a computer mouse to remove dust.
NetSuite WMS is only one of the many software products that NetSuite offers. Its other tools include software suites for accounting, payroll, customer relationship management, procurement, human resources management, and eCommerce. Its business software helps small startups meet their growth goals and enables medium-sized businesses to meet customer expectations about costs and value so that these companies can compete with mega-corporations.
The Need for a Specialized WMS Solution for NetSuite Clients
In its many years of developing its products, NetSuite has adapted to meet the needs and requirements of its users so that they can better serve their customers. Different industries have different software needs, though. If you are operating a third-party logistics (3PL) warehouse, then you need a WMS module. The dashboards, spreadsheets, and task management on a software module designed for a hotel or restaurant would not be an adequate substitute. Instead, you need software that compiles and analyzes inventory data efficiently so that you can know how many goods your warehouse has space for. You also need the WMS to optimize inventory visibility, so that it will be easy for the warehouse employees to see the products they are trying to find. WMS implementations are not interchangeable with other business software applications, so your 3PL operation should not use generic business software.
Understanding NetSuite’s Capabilities
If you only use the Microsoft applications that came included on your devices, or if you are constantly searching the web for free online templates of business documents, then you will be amazed at what NetSuite business software can do for your company’s operations, whether you are a small eCommerce business that only sells footwear or a distribution and fulfillment provider that serves multiple clients and operates multiple warehouses. The variety of NetSuite’s business software applications and packages is too large to list here, but the beauty of them is that they all automate the processes that can be done automatically and share relevant information with the appropriate parties across applications within the organization. Every time a customer makes a transaction or the WMS software makes a replenishment order, the employees who need access to this information to complete their tasks find this out immediately. NetSuite software reduces human error and enables people and devices to work more efficiently.
NetSuite is not the only business software out there, but its user-friendly setup sets it apart. It provides an intuitive user experience. It also offers customer support where live people will answer your questions about transactions, data analytics, automation of warehouse processes, and more. Much like Sage Intacct, NetSuite offers cloud-based software solutions. Software platforms that store data on a cloud instead of on your devices offer better protection against computer viruses and data theft.
Explanation of NetSuite’s Functionality in eCommerce
NetSuite products offer many opportunities for eCommerce businesses to streamline their operations and save on costs. It enables eCommerce vendors to partner with warehouses and third-party logistics providers. It can also help eCommerce companies with advertising and billing. For companies that handle their own shipping, NetSuite’s eCommerce software can track your shipments and keep customers up to date on the progress of their orders. It can also produce analytics reports about market trends and customer satisfaction, among other topics.
Role of NetSuite in 3PLs (Third-Party Logistics)
Third-party logistics (3PL) providers can benefit immensely from NetSuite business software applications. Some of NetSuite’s software suites are designed specifically for the 3PL industry. 3PL is where a company uses its warehouse to store and distribute products that belong to other eCommerce companies. All except the smallest eCommerce companies rely on 3PL to help them get their products to consumers. 3PL accounts for a growing share of NetSuite’s business software customers. Check out NetSuite’s blog for updates about what is new in the world of business software for 3PL providers.
Why ShipHero WMS Is the Best Solution for NetSuite Clients
NetSuite offers a vast array of business software products, but ShipHero WMS is the best choice for 3PL providers. It has features specific to all the tasks that 3PL warehouse employees do, and it integrates beautifully with the other NetSuite business software applications that you already use.
Special Features of ShipHero WMS that Make It the Ideal Choice
Analytics is one of the strong points of ShipHero WMS. It collects all the data you could ever want to know about your warehouse and the supply chain. ShipHero WMS compiles retrospective reports and can also engage in predictive analytics.
Benefits of Integrating ShipHero WMS With NetSuite
Automating warehouse processes is another commonly cited goal of clients who use ShipHero WMS. For example, it enables you to automate cycle counting, which would otherwise be a time-consuming process. It also enables you to automate replenishment. You can simply instruct the software to reorder a certain product when the stock level gets below a certain point.
Case Studies or Testimonials Demonstrating the Effectiveness of ShipHero WMS
The ShipHero website includes case studies about clients in the United States and Canada who have implemented ShipHero WMS. These include eCommerce companies that sell everything from clothing to tires to musical instruments.
Key Takeaways
If warehouses play any role in your business activities, even if yours is only a small eCommerce store, then ShipHero WMS is just what you need. It integrates smoothly with other NetSuite software suites, which are a popular choice for small and medium-sized businesses. User-friendliness, analytics, and automation are among the greatest strengths of ShipHero WMS.
FAQs
Each business that engages the services of ShipHero WMS has unique needs. These are some common questions that 3PL providers and eCommerce businesses have about ShipHero Warehouse Management Software for NetSuite.
How Does a WMS Integrate into an ERP Like NetSuite?
When you install ShipHero WMS, it automatically knows how to interact with NetSuite. The two platforms have been designed to work together. Therefore, you do not have to overhaul all of your business software simply because you have started using ShipHero WMS for NetSuite.
Is NetSuite a Data Warehouse?
NetSuite uses cloud-based data storage and was one of the first software companies in the world to implement this type of data storage. Since NetSuite stores your data on a cloud instead of on the hard drives of your devices, it gives you an extra layer of protection against cyber attacks. Besides cloud storage, NetSuite also has other robust cybersecurity features.
Does Oracle Have a WMS System?
Oracle has a WMS system, namely ShipHero WMS for NetSuite. NetSuite has been a subsidiary of Oracle since 2016.
Contact ShipHero today for a demo.
Aug 2, 2023 | Blog
The supply chain is so complex that even the biggest businesses outsource some of their processes to other companies. You must sign agreements with the manufacturers, vendors, suppliers, and logistics service providers to ensure that the service level agreements do what you want them to do. The provisions of these contracts vary according to the client’s market niche and the logistics services it needs.
What is a 3PL Service Agreement Template?
When a company hires another entity to provide logistics services for it, this is called third-party logistics, also known as 3PL. If you Google any topic related to logistics, you will find that most major companies in a variety of sectors use 3PL. In business, airtight contracts with lots of details are the surest way to avoid trouble. If you simply base your business relationship on a verbal agreement or vaguely written contract, you are asking for risk, conflict, legal disputes, and financial losses. Do not simply let a carrier start providing transportation, shipment, or delivery services for you without first signing a logistics contract.
A 3PL service agreement outlines the business relationship between your company (the client) and the company that will be providing logistics services for you. At minimum, this document should list the names and contact information of the parties (you and the logistic service provider) and the services the logistics service provider will provide. It should also contain clauses about when the agreement begins and ends, how much you will pay for the services, and the consequences if one of the parties does not fulfill its contractual obligations or is not in compliance with the terms of the contract.
In other words, a 3PL service agreement needs all the elements of business agreements. Therefore, downloading a PDF file of a 3PL service agreement template is a good place to start when drafting your agreement.
Drafting a Third-Party Logistics Agreement
No two business agreements are alike. The main limitation of using a downloadable 3PL logistics agreement template is that they are too generic. All business agreements must respect the law and serve as a basis for contract negotiations, but your 3PL logistics agreement should also include detailed definitions related to the specific activities in which the parties are agreeing to engage. For example, these documents should clearly identify the names and taxpayer ID numbers of the companies involved as well as the contact information of the employees or partners who are signing the agreement on behalf of the company.
Next, it is time to outline the main terms of the agreement. What will the service provider do for the client? How much must the client pay? Must the client provide the service provider with any equipment to fulfill its tasks?
The biggest failure of most do-it-yourself business agreements is their failure to address all the legal nuts and bolts. If contract templates contain these provisions at all, it is probably just a legal boilerplate that is not specific enough to protect you from liability in the event of a dispute or a breach of contract. For example, what is the deadline to give notice in writing if one party wants to terminate the contract early without paying a penalty? Which party is responsible for paying for the insurance that covers loss or damage to the client’s merchandise when it is in the custody of the carriers? The contract should also contain language about which state’s laws have jurisdiction to rule on lawsuits arising from the contract. Must the parties consent to arbitration in accordance with the provisions of the contract before they have the right to file a lawsuit?
3PL Service Agreement Template Sample Download
It is possible to find downloadable forms that you can use as a starting point for your agreement with a 3PL service provider. The details of the agreement will be different depending on the services you are outsourcing. For example, is the 3PL service provider warehousing your items in its own facility, or is it handling order fulfillment, inventory management, pick and pack in your company’s own warehouse? Is it tracking orders and reporting them to the client, or is it transporting shipments of freight directly to customers?
Key Terms in a 3PL Service Agreement
Your 3PL agreement should identify the parties to the agreement and specify when and how each party shall perform its duties. It should specify what changes to the agreement one party can do at its discretion, and which ones it can only do with the approval and consent of both parties, including but not limited to adding more parties to the contract or extending the term of the contract.
The 3PL service agreement should state the expectations about invoicing and payment. If one party loses its ability to continue the performance of its contractual responsibility, the contract should contain a reference to the first step each party should take. It should indicate which documentation is necessary to show receipt and approval of the contract. The dispute resolution portion of the contract is the most challenging to write.
Procurement Logistics
Procurement logistics is the phase of operations that deals with getting the materials you need to the right location. The supplies that clients might be procuring could be raw materials, parts to assemble in consumer goods, and even finished products to ship to consumers. The availability and cost of certain goods, especially raw materials, are sometimes outside the control of the parties to the contract. The contract should contain instructions for a system of notification and negotiation about the fluctuation of prices in response to the changing costs of materials.
Production Logistics
Production logistics deals with the aspects of projects that handle the production of goods and the processing of materials. You might wish to outsource this part of the project to facilities with a lot of specialized experience with these procedures. You can ensure that this part of the work meets safety standards when you outsource it to companies with the capabilities to produce goods at the volume, weight, sizes, and quantity that you need for reasonable rates. These companies will likely also have streamlined systems for pricing, tracking expenses, and collecting payments. You can simply trust that you will receive the products in the amount ordered and then pay the invoice and be sure that the workflow will proceed to the next stage smoothly.
Distribution Logistics
Distribution logistics deals with the manner in which the goods travel to the people all over the world who order them. In the interest of customer service, it is a good idea if you store your products in various warehouses. This requires the outsourcing of warehousing unless your company has enough resources to own and operate multiple warehouses.
Effective distribution logistics requires you to compile and study a lot of data. Consultants can analyze your data and give you advice about how best to meet the demands of customers while keeping your costs low. In addition to the consultant’s recommendations, you should solicit suggestions from customers about the accuracy of orders and the assistance they receive. You should also compile data about damages to property during the delivery process. If you take all of these KPIs into account, you can make the best decisions about your distribution logistics strategy.
Reverse Logistics
The purposes and intended results of reverse logistics are the same as any other aspect of logistics, except that the process moves in reverse. Customers send items back to distribution warehouses. The company processes the claims and sends payment back to the customers, or else sends them a replacement article to compensate for the defective one, in the case of exchanges.
This is the most common type of reverse logistics, but there are also others. For example, some categories of reverse logistics involve warehouses sending unsold or unsatisfactory products back to production plants. The efforts required for reverse logistics seem more burdensome than for other types because no one profits.
Critical Areas to Consider in a 3PL Service Agreement
A 3PL service agreement should be concise and readable. It should have the company name and contact information on a title page. The next part should be a checklist of instructions that the parties need to do to complete the agreement. This way, you can help the service provider achieve the agreement correctly and minimize delays.
Termination Rights
To be sufficiently detailed, a 3PL service agreement might be multiple pages long; this is just the nature of legal contracts. It is only fair if both parties have the choice to terminate the contract ahead of schedule. The contract should specify what each party must do to accomplish this and whether the other party is entitled to compensation.
Indemnification
The agreement should state the situations in which one party is not liable for financial losses incurred by the other party. These situations often include force majeure events, which are adverse events beyond the control of the parties. They include shortages of materials due to natural disasters or disruptions caused by wars.
Protection Against Double Payment
The agreement should include a detailed outline of the procedures for collecting payment. This ensures that the party receiving money gets their payment on time and that the payments collected are accurate. Insufficiently detailed agreements can lead to double payment and other mix-ups that can cause delays and confusion and harm the business relationship.
Key Takeaways
Outsourcing is the key to scaling your business, and you will need to rely on other companies to manage various parts of your supply chain logistics. Each company that provides logistics services with you should sign a 3PL service agreement to govern the business relationship between your company and the service provider. You can find 3PL service agreement templates available for download online, but you should modify them so that they are specific to the services you are outsourcing. It is also a good idea to have a business law attorney review your 3PL service agreement before you sign it.
Frequently Asked Questions
A truly successful business agreement must go through a few rounds of apparently picky questions to ensure that your agreement covers all of the situations in which you might need to resolve a dispute arising from the agreement. These are some questions that eCommerce business owners frequently ask when entering into service agreements to outsource their logistics services:
How Can I Ensure a Fair 3PL Contract?
It is the fine print about legal procedures that separates a fair contract for an unfair one. Anyone can write a contract agreeing that Party A will perform the following services for Party B, and Party B will pay Party A X amount of money, and the courts will probably enforce it. Fairness comes in the contractual procedures, though. What should they do to modify the terms of the contract if necessary? How should the parties repair a breach of contract? Which situations absolve the parties of liability if they cannot perform their contractual obligations? Should they resolve disputes through arbitration or litigation? If litigation is an option, which courts should have jurisdiction to rule on lawsuits arising from the contract?
What are Common Pitfalls in 3PL Contract Negotiation?
Money is the main reason that contract negotiations fall apart. Often, the service provider wants the client to pay more, or the client wants to pay less. In order to arrive at a price that is acceptable to both parties, they might have to change other terms of the contract.
How Can I Protect My Business in a 3PL Contract?
You can protect your business in a 3PL contract by making your contract as specific as possible instead of just using a generic one. You should also go over your contract with a lawyer before you sign.
Contact ShipHero today for a demo.
