Jul 28, 2023 | 3PL Warehouse Management, Blog, Economics of 3PL, Fulfillment
Shipping costs can quickly add up and devour your budget, but it doesn’t have to be this way. The trick is to avoid common pitfalls that lead to inefficient processes and additional charges. In this post, we’ll explore some common mistakes that should be avoided at all costs to save money on fulfillment – equipping you with the know-how needed for sound business decisions moving forward.
Invoice Errors
Did you know that 5% of invoices contain errors and inaccuracies? The root causes of these mistakes are often common shipping issues like accessorials and late fees. When rate errors go undetected, a shipper may be overcharged an average of 3%-5% of the total invoice.Â
For example, if you look at the FedEx Invoice below, the total charges are $1,831.17. If 5% of those charges are riddled with inaccuracy, then you’d be paying $92 in unnecessary overages – which adds up.
Accessorial Charges
These costs are not always clear-cut and can fluctuate depending on the carrier. Our in-depth article on accessorial charges outlined three key lessons businesses can use to minimize mistakes and unexpected fees.
- Know all your costs, even the hidden ones, and ask about accessorial fees upfront.Â
- Analyze your shipping invoices regularly to catch any billing mistakes early.Â
- Plan ahead for peak surcharges to save your business significant money on shipping costs.Â
See more details in our guide to managing accessorial charges.
Late Fees
Inefficient systems can often delay the clearing of invoices, which results in unnecessary late fees. For example, both UPS and FedEx have instituted late payment fees. To avoid incurring these fees, make sure that payment is received by UPS within 14 days of the invoice due date and for FedEx, within 15 days of the invoice date. If payment is not received by the due date, both carriers charge a late payment fee of 6% of the total past-due balance. FedEx places delinquent accounts on cash-only status, which could cause delays in your shipments and the loss of applicable discounts.
Shipping companies are responsible for ensuring an effective system to avoid late charges and penalties. Failure to meet the terms of the agreement can also result in carriers charging additional interest fees.
Know Where Your Charges Are Coming From
When a shipper hires a transportation company to move their goods, an invoice or bill is created for each job. These documents contain important information about the shipment, the services provided, and any additional services rendered. For carriers, it compiles all charges from every Bill of Lading associated with the shipment.Â
Your Bill of Lading Should Include the Following:Â
- Purchase order or account number
- Shipment date
- Shipper’s name and address
- Recipient’s name and address
- Number of units being shipped
- Description of what’s being shipped
- Declared value of goods being shipped
- Shipment packaging – cartons, crates, pallets, etc.
- A notation if the product in the shipment is hazardous
- Exact shipment weight
- Pickup or delivery specifications
Common Shipping Errors
Shipping errors are an unfortunate reality in the fulfillment industry. Every 3PL wants to ensure a seamless pick, pack, and ship process, but mistakes can and do happen. It’s important to be vigilant and watch for common errors.
Incorrect Measurements, Dimensions, and Packaging
Small mistakes in measurements, dimensions, and packaging can lead to expensive surcharges for shipping. Even slight errors can cause significant charges to accumulate. It’s important to remember that shipping fees are calculated based on the greater value of weight or size, which means DIM weight can also affect shipping fees. Measuring and weighing packages accurately is crucial to avoid these unnecessary expenses.
Measurements and Dimensions
UPS, for example, if your package dimensions don’t match your labels, the mislabeled packages will be subject to a shipping correction fee. If you get charged with a shipping charge correction audit fee, you’ll have to pay the greater of the following:
- $1.00 per mislabelled package during the applicable invoice period; or
- 6% of the total shipping charge corrections during that invoice period
So, invest in a reliable scale and WMS to avoid incorrect estimates and unnecessary fees. This will ensure your measurements match your carrier’s, reducing the risk of unexpected charges. Giving incorrect delivery details might seem insignificant, but it can quickly snowball into a logistical nightmare.Â
Packaging
Rather than trying to save money by using cheap materials or skimping on protective measures, investing in better packaging will ultimately save you money in the long run by reducing re-shipping fees caused by transit damage.Â
Keep packages as small as possible and minimize inserts to minimize your costs further. Standardizing packaging is also important in reducing costs, helping you to streamline the process and minimize materials. Following these tips can significantly reduce your packaging costs without compromising quality. With so much at stake, taking shipping accuracy seriously is essential.
You Don’t Have a Diverse Carrier Mix
To avoid high shipping costs, diversify your carrier mix. Relying solely on one carrier may leave you vulnerable if they face capacity issues, raise prices, or go out of business. Without other options, you may have to pay expensive fees to ship your goods.Â
Why You Need a Multi-Carrier Platform
Cost Effective: To save on shipping costs, choose carriers that fit your budget and take advantage of available deals and discounts. Comparing rates on a single platform is easy and helps you make informed decisions. Let the software do the work for you.
Saves Time: Input package details into your WMS and let technology compare rates from various carriers. You’ll have diverse shipping options to select the most affordable and efficient.
Reduces Disruptions: Using a multi-carrier platform can prevent shipping delays by seamlessly switching to another carrier if one experiences trouble.
Handling Unique Scenarios: When you use multiple carriers, it’s possible to choose a more affordable option for free shipping and give customers the choice to upgrade for faster delivery times.
Not Using a WMS
When managing logistics operations, using a warehouse management system is not just a nice-to-have; it’s a must. Manually determining the cheapest rate based on address, weight/dimensions, and shipping speed is tedious and complex. Not to mention the risk of shipping errors and lost time.Â
With ShipHero’s Rate Shopping, you can access the most up-to-the-minute shipping rates from major carriers. Buy the label at the cheapest price. It’s time to take advantage of a WMS.
Utilize Technology and Automation
A WMS is not just about the convenience of having everything in one place – but the benefits of automation. By reducing the need for personnel in the shipping process, companies can save money, reduce processing time, and improve accuracy. With fewer jobs for staff, there’s also less risk of data entry errors and lower costs because you need less help to run your 3PL.
By utilizing warehouse management software, you can accomplish the following:
- Combine and streamline shipments to improve shipping efficiency.
- Reduce mistakes to cut shipping costs significantly.
- Access to numerous carriers and compare prices to find the most affordable option.
- A single dashboard provides complete visibility of all your shipments.
- Ensure real-time updates on shipment status for your customers.
- Improve service levels and reduce customer churn to achieve customer satisfaction.
From Errors to Accuracy
To manage carrier costs accurately, it’s essential to take the time to verify that invoices are correct and up-to-date and ensure that your fulfillment systems are processing payments promptly. It’s also important to consider the non-monetary shipping costs, including accurate measurements, dimensions, and packaging. This can help you avoid costly surcharges and ensure your deliveries are successful. Finally, implementing a warehouse management system can save you time, prevent shipping delays, compare prices, and reduce errors.
Key Takeaways:Â
- Inaccurate invoices can result in overcharges of 3%-5% of total invoice values.
- Auditing invoices thoroughly and double-checking for accuracy is important to avoid invoice errors.
- In-depth knowledge of accessorial charges can minimize mistakes and unexpected fees.
- Efficient fulfillment systems are necessary to avoid late fees and interest charges.
- Avoid costly overcharges by ensuring accurate and timely payment of carrier bills.
- Accurate measurements, dimensions, and packaging are crucial to avoid expensive surcharges.
- Diversifying carrier mix can prevent shipping delays and expensive fees.
- Using a warehouse management system can save time, reduce errors, and compare prices.
Jul 7, 2023 | 3PL Warehouse Management, Blog, Economics of 3PL, Fulfillment
Are your outbound shipping costs eating your 3PL’s profits? Today, we will cover five critical factors affecting your shipping costs and provide actionable tips to help you reduce them. We’ll give insights on everything from delivery speed to special handling fees to ensure you make operational decisions that save time and money.
Factor 1 | Weight and Zone
For products shipped domestically within the US, two key factors come into play: the destination zone and the package’s weight.Â
Zone
Carriers have established nine zones across the US, with the origin address as Zone 1. Your shipping fees increase as your package moves further from its origin. Here are the current zones with their mileage differences from the source.Â
- Zone 1: 1-50 miles
- Zone 2: 51-150 miles
- Zone 3: 151-300 miles
- Zone 4: 301-600 miles
- Zone 5: 601-1000 miles
- Zone 6: 1001-1400 miles
- Zone 7: 1401-1800 miles
- Zone 8: 1801 miles or greater
- Zone 9: US territories & APO or FPO addresses
WeightÂ
When it comes to shipping packages, weight matters, it’s a simple concept: the heavier the package, the more you’ll have to pay to get it where it needs to go. But it’s not just about weight; the package’s dimensions also play a significant role.Â
It’s a tricky balance – you want your package to be the right size to hold your products but not so large that it triggers DIM weight surcharges. Investing in a packaging design strategy is worth the time to determine the optimal package size and weight to avoid unnecessary expenses. It’s a small step that can significantly impact your bottom line.
Shipping Calculators by Carrier:
International
If you’re not taking advantage of duty relief programs for international shipping, you’re leaving money on the table. The numbers don’t lie – Section 321 alone can save you up to 20% on duty fees, and that’s a significant amount. So, what exactly is Section 321 all about?Â
Section 321 of the Trade Facilitation and Trade Enforcement Act has revolutionized the eCommerce shipping costs for shippers from Canada or Mexico sending goods into the U.S. to individual customers. With tax and duty exemptions, faster clearance, and reduced paperwork, shippers have remarkable advantages at their fingertips.
Section 321’s duty-free entry for goods valued at $800 USD per person per day is a smart way for businesses to grow, as it offers savings for brands looking to get their items to American consumers. While certain products are restricted, these regulations should not deter businesses from enjoying the benefits Section 321 can bring.Â
Factor 2 | Delivery SpeedÂ
The persistent and aggressive growth in eCommerce demands a seamless process to satisfy customers’ needs, and delivery speed is an essential aspect of any business that hopes to keep up with customer demands in today’s marketplace.
Margin integrity is crucial if you want to stay profitable. At ShipHero, we understand that maintaining a delicate balance between cost and delivery speed is essential for our margins to remain healthy. It hasn’t been an easy process, and we’ve made our fair share of mistakes.
Nevertheless, we’ve learned that customers expect two-day delivery from Amazon but are generally willing to wait three to four days for other businesses. However, specific expectations, such as real-time tracking, still need to be met.
90% of customers want immediate updates and real-time order visibility. Adopting technological solutions can improve delivery experiences and lower consumer inquiries.
32% of global shoppers will abandon their carts if an estimated shipping time is too long. Rising standards are forcing 3PLs and carriers to reevaluate traditional distribution models.
Fulfillment Trends
Get ahead of the trend by utilizing micro-fulfillment centers (MCFs) to cut delivery times. MCFs are strategically placed in urban areas and stocked with popular products, making it easy for customers to pick up their online orders. This gives shippers the flexibility to meet rising consumer expectations promptly.Â
Although setting up these local centers can be challenging and pricey, it pays off in the long run by reducing shipping costs and providing an efficient and cost-effective service. Leading 3PL companies are already reaping the benefits of this strategy and improving their overall performance.
Last Mile Delivery
Last-mile delivery accounts for 53% of the total shipping cost, and 3PLs simply can’t afford to miss the mark here. The final stage of the delivery process is where customer satisfaction and profitability are either made or broken. Unfortunately, too many managers responsible for supply chain and digital functions face significant challenges in this crucial area.Â
But fear not; there are solutions. By partnering with the right players, businesses can meet and exceed their customers’ expectations while boosting their bottom line. That’s why we offer Veho’s efficient and cost-effective last-mile delivery solutions.Â
By prioritizing necessary orders and reducing failed deliveries, Veho can make money while delivering the high level of service customers deserve while saving your 3PL money on last-mile delivery.
Factor 3 | Warehouse Teams and the Packing Process
When it comes to the efficiency of a warehouse, it’s essential to have a well-oiled team handling the packing process. After all, warehouse teams can make or break the whole operation. Here are some questions to ask yourself regarding your teams.
Are you investing in training your team?
Training is crucial for a proficient team, minimizing staff turnover, and boosting profits. It should cover SOPs, equipment handling, inventory management, customer order systems, and obtaining certification for specific tasks.
How efficient is your packing station?
Regularly assess your packing station’s efficiency to identify areas for improvement and reduce labor costs. Implement one-touch stations and focus on ergonomic design and workflow to optimize productivity and reduce errors.
Are you optimizing your picking paths?
Optimizing your picking paths might be the key to unlocking higher profit margins for your business. It’s simple – a slower picking process leads to increased picking costs, inevitably leading to higher product prices for your customers.
Are you using automation?
While a 95% to 98% order accuracy rate may seem reasonable, it still allows for a 2% margin of error or potentially even worse outcomes. These errors can result in significant financial losses for your warehouse.Â
Fortunately, implementing warehouse automation can reduce human error and improve inventory control. This will significantly enhance picking accuracy, bringing it closer to 100% and ultimately saving you money by reducing mistakes and mispicks.
Are you analyzing the correct data?
Measuring data is crucial to improve business operations. Knowing your warehouse’s key performance indicators (KPIs) is essential. Collecting and analyzing the correct data identifies inefficiencies and avoidable expenses. You’ll need to track everything from receiving through shipping to get a complete picture of your operations.
Here are a few KPIs to consider:
- Inventory Days of Supply: The day’s sales of inventory (DSI) is a financial ratio that indicates the average time, in days, that a company takes to turn its inventory, including goods that are a work in progress, into sales.
- Parcel Bill Accuracy: Review your parcel bill charges regularly to avoid overcharging. Request detailed bills from carriers if you spot any errors. This information can be helpful when renewing shipping contracts.
- Receiving Efficiency: This metric determines how well the receiving area performs overall. It is determined by the volume of inventory received/ number of hours worked. So, for example, you may receive 2000 goods per week and only have two employees at 40 hours each. So in this example, it would be 2000/80 = 25 goods per hour being processed.
- Order Picking Accuracy: Accuracy in order picking is vital to ensure that orders are shipped correctly. Mistakes can be costly and time-consuming, so tracking this metric is crucial to keep customers happy and avoid the hassle of correcting errors.
- Warehouse Capacity Utilization: Warehouse capacity means the space available to store things. Businesses need to use the area efficiently and save money on warehouse operations.
To understand your warehouse capacity utilization, you can calculate it in a few easy steps. Ideal utilization is 80%, which is average to maximize your warehouse space. To calculate your warehouse’s usable space:
-
- Measure the total square footage, clearance height, and unusable areas (offices, bathrooms, break rooms).
- Subtract the unusable square footage from the total to get the usable square footage.
- Multiply it by the clearance height to obtain the usable volume in cubic feet.
Factor 4 | Special Handling FeesÂ
As a shipper, you’re no stranger to handling fees for hazardous materials and fragile items. But did you know that these fees can have both advantages and disadvantages? Let’s take a closer look at how they can impact your bottom line.
Hazmat
- Revenue Generation: Shippers can generate extra revenue through Special Handling fees, which help cover the expenses of safely transporting fragile or hazardous items. These fees contribute to the overall profitability of the shipping industry.
- Risk Management: To transport hazardous and delicate items safely, shippers should charge special handling fees, conduct inspections, and employ trained personnel. Risk management practices are essential to ensure secure transportation.
- Competitive Advantage: Shipping companies specializing in hazardous and delicate items can become industry leaders by charging extra for their expertise. This draws customers seeking experienced shippers with a deep understanding of complex shipments.
Shipping hazmat and fragile items can be profitable, but shippers must address customer concerns and competition while complying with regulations.
Fragile
When it comes to shipping fragile items, there’s no room for error. After all, damaged items don’t just impact your bottom line – they can also significantly affect your reputation. That’s why taking proactive steps is essential to ensure your items arrive at their destination in one piece. One way to do this is by enlisting the help of your special projects team to assemble kits or pre-assemble your items.
Factor 5 | SurchargesÂ
Surcharges are a necessary evil in shipping and logistics, so they can be the bane of your bottom line if you’re not careful. That’s why it’s essential to be informed and proactive about the different types of surcharges your product lines may encounter.Â
Navigating outbound shipping can be a complex and costly process for 3PL operators. Negotiating base rates with carriers is just the beginning; understanding accessorial charges and selecting the best base rate based on package specifications is key to mitigating costs. The challenge lies in the surcharges associated with specialized services, which can drive up costs and make it challenging to predict expenditures.Â
Additionally, general rate increases can significantly impact carrier base rates for 3PLs. However, the right approach and tools can reduce shipping expenses. By utilizing shipping cost strategies, analyzing costs, and planning, surcharges can be minimized.Â
How to Reduce Shipping Charges
Size and Weight
It is important to be mindful of shipping charges, as they can quickly add up and cut into your profits. One way to reduce these costs is by considering the size and weight of your parcels. Oversized boxes or improper packaging can result in higher fees. Look for carriers that offer the correct type of flat-rate shipping or the fees that make the most sense for you and your products.
Additionally, be aware of dim weight pricing (as we discussed at the top of this article), which considers the box’s length, height, and weight. This can sometimes result in extra fees for light packages that take up a significant amount of truck space.Â
Team Training
Reducing shipping charges is crucial for businesses of all sizes, and optimizing warehouse operations can help achieve this goal. Proper software training is essential to maintain consistency with the packing team and reduce unnecessary costs.Â
A warehouse management system (WMS) like ShipHero can provide automation that streamlines business operations, but it needs to be used accurately. Your WMS training program should cover all aspects of the hardware and software and the different methods used to manage goods efficiently within the warehouse. By emphasizing the importance of WMS training and implementing consistent warehouse practices, your business can reduce shipping costs and improve overall efficiency.
Equipment
Troubleshooting internal errors such as incorrect scales and improperly stocked packing stations can also enable you to minimize touchpoints and increase automation. With automation rules, packers can always use the appropriate box when shipping specific products. These steps allow you to confidently assert control over your shipping process and save valuable business resources.
Automation
We offer a variety of automation rules to help businesses save money on shipping charges. Our VIP customer treatment rule ensures that your most valuable customers receive a gift SKU or marketing insert with their orders, express shipping, and prioritized order processing. Our pre-sale item rule helps businesses save by setting a partial shipping flag for orders that exceed a specific dollar amount.Â
Additionally, SKU-specific notes can be assigned to certain items, which is handy for fragile items that require special handling. Finally, we automate box type selections, streamlining the packing process and saving businesses time and money on shipping. With the proper automation rules, businesses can significantly reduce shipping charges and improve their bottom line.    Â
3PL Profitability
To summarize, consider all five critical factors mentioned in this post to reduce your outbound shipping costs: destination and origin, delivery speed, warehouse team processes, special handling fees, and surcharges.Â
With the right tools and expertise, you can ensure that your 3PL profitability remains reliably on track. And with hard work and dedication to intelligent decisions about outbound shipping strategies—increasing or decreasing delivery speeds or minimizing surcharge risks— you should be more than capable of achieving your goals.Â
It takes a lot of work, but investing time now to craft an efficient system for managing outbound shipments will pay off down the line. To start managing your outbound shipments efficiently today, try a ShipHero demo and get a jump start on reducing those shipping costs!
Key Takeaways
- Five critical factors affecting shipping costs include weight and zone, delivery speed, warehouse team processes, special handling fees, and surcharges.
- Shipping fees increase as packages move further from their origin, and weight and package dimensions also significantly affect shipping costs.
- Duty relief programs for international shipping, such as Section 321, can save up to 20% on duty fees.
- Â Last-mile delivery challenges can be solved with partnerships like Veho, which can save money and streamline the process.
- Delivery speed is important for eCommerce businesses, but faster delivery times come with higher costs. Local fulfillment centers and efficient processes can help reduce costs.
- Investing in team training, efficient packing procedures, optimizing picking paths, using automation, and analyzing the correct data can improve warehouse efficiency and reduce costs.
- Â Hazmat and fragile handling fees can protect businesses from fines and reputation damage, but choosing the proper packaging and labeling is vital.
- Understanding surcharges and negotiating base rates can help mitigate shipping costs for 3PL operators. Planning and analyzing costs can also minimize surcharges.
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.
Jul 3, 2023 | Blog
The Warehouse Management System (WMS) for Shopify is a software tool that coordinates various warehouse tasks like restocking shelves, scanning products for receiving, and packing items for shipping. Installed on computers and handheld devices, it enables warehouse employees to work in harmony, organizing warehouse processes efficiently. It also helps businesses in tracking, reporting, and managing different types of goods, including all things related to the fulfillment center. Learn more about warehouse management processes here.
The Benefits of a Warehouse Management System for Shopify Stores
A WMS can enhance the operation of your Shopify retail business, saving costs and optimizing space and work time. If you’re scaling your business, a WMS can handle vast amounts of information related to tracking, order management, warehousing, and customer fulfillment. It’s a vital part of modern inventory and warehouse management software and warehousing for companies of all sizes, including small businesses.
Real-Time Stock Levels and Availability
WMS offers real-time tracking of warehouse inventory levels and stock information. It integrates with Shopify for data exchange and manages inventory allocation and optimization. This functionality ensures that customers receive their orders promptly, and you can find more about warehouse bin storage system best practices here. It also helps in managing stock levels and offers visibility to users, all in one place, and allows merchants to plan effectively.
Automated Inventory Replenishment
For Shopify, WMS replenishes stock to maintain optimal store inventory levels, updating inventory information and stock availability in real time. It streamlines the flow of inventory in and out of warehouses, ensuring timely order fulfillment. Automation plays a key role in this process, reducing errors and enhancing efficiency, thus improving sales for retail businesses.
Functionalities Across Channels
WMS puts everything in the right place at the right time, benefiting retailers and companies selling products through the online store, Shopify. It coordinates logistics for timely order fulfillment, streamlines workflows, and generates comprehensive reports on warehouse operations for Shopify. It also helps in managing returns and offers tools for better functionality, including trial options for sellers and services for various retail sectors.
Keeping Inventory Accurate Across Sales Channels
WMS ensures accurate inventory tracking within Shopify, reducing errors and returns. It offers visibility to customers’ favorite brands and helps in managing sales channels efficiently. It also helps in tracking orders and managing suppliers, offering a number of solutions for different types of retailers, and collecting reviews from customers.
Understanding Shopify Inventory Management Challenges
Companies using Shopify face challenges in inventory and supply chain management, such as getting the right amount of products from suppliers. WMS offers warehouse automation solutions to these challenges, streamlining warehouse processes and ensuring efficient order management. It also helps in managing manufacturing resources and offers solutions for different types of retailers, including e-commerce businesses, and helps in planning the right amount of stock.
Products That Don’t Integrate Into Shopify
When products don’t integrate into Shopify, WMS synchronizes data between the Warehouse Management System and Shopify, facilitating efficient warehouse management. It also helps in managing different types of integrations and offers support for various apps, including warehouse management software itself, and helps merchants in their daily tasks.
Phantom Inventory
Phantom inventory, a record-keeping error, can cause delays in order fulfillment. WMS manages the receiving and inspection of goods to prevent such discrepancies. It also helps in managing returns and offers tools for better functionality, including software solutions, and the solution ensures that people receive their orders without any issues.
Managing Multiple Warehouses in Different Locations
WMS for Shopify scales operations to accommodate business growth and increased demand. It enhances customer satisfaction through efficient order processing, delivered regardless of the number of warehouses. It also helps in managing stock levels and offers visibility to users, all in one place, and ensures that a lot of effort is saved in managing multiple locations.
Choosing the Right Warehouse Management System for Your Business
Choosing the right Warehouse Management System impacts the success of entire supply chain of your Shopify business. The ideal WMS organizes warehouse layout, allocates resources efficiently, and ships orders promptly to customers. Consideration of warehouse automation cost is also vital. It also helps in managing returns and offers tools for better functionality, including software solutions, and helps in planning for future growth.
The Top 10 Best WMS for Shopify
The top 10 best WMS for Shopify include ShipHero, Megaventory, Veeqo, SwiftCount, Logiwa, Veracore, Craftybase, PowerHouse, ShippingEasy, and ShipBob. ShipHero stands out as user-friendly with automation features to streamline processes. It also helps in managing returns and offers tools for better functionality, including software solutions, and collects reviews from users.
Key Takeaways
If you operate a Shopify business without WMS, you’re working harder than necessary. WMS optimizes your shopify warehouse management, processes and scales your business. It also helps in managing returns and offers tools for better functionality, including software solutions, and ensures that all aspects of the business are covered.
Frequently Asked Questions
How Can Warehouse Management Systems Enhance Customer Satisfaction?
WMS enhances customer satisfaction by tracking inventory and replenishing it before running out, avoiding delays. It also helps in managing returns and fulfillment operations offers tools for better functionality, including software solutions, and ensures that people receive their orders on time.
How Do Warehouse Management Systems Aid in Getting Full Use of Resources?
Warehouse management systems maximize warehouse space and time and manage financial resources. It also helps in managing returns and offers tools for better functionality, including software solutions, and helps businesses in planning and execution.
What Are the Potential Issues With Products That Don’t Integrate Into Shopify?
Some WMS platforms can be customized to integrate with the Shopify store, while others automatically do so. It also helps in managing returns and offers tools for better functionality, including software solutions, and ensures that merchants have a smooth experience.
Contact ShipHero today for a demo.
Jul 3, 2023 | Blog
If your eCommerce company has gotten so big that you can no longer operate out of your garage, you must engage in warehouse selection to choose a warehouse that stocks your items. You must also choose a warehouse management system (WMS) to keep track of stock levels and sales orders in the warehouses where you keep your merchandise. If you have been running your eCommerce business with Magento, it should be easy to find a WMS and inventory management software package that is compatible with it.
What is a Warehouse Management System for Magento?
Businesses of all sizes use the eCommerce software Magento. It is convenient for one-person operations as well as for big companies that must coordinate among vendors, retailers, warehouses, and customers. Magento is compatible with many warehouse management system (WMS) platforms. A Warehouse Management System (WMS) is an app that works with the devices of the warehouse employees and other parties in the supply chain to ensure accurate picking, packing, order processing, and shipment.
The Intersection of Magento and WMS: A Primer
Magento and WMS work together by integrating data. When you integrate Magento with WMS, your warehouse processes will be streamlined. Every time a customer orders a product from your Magento store, the automated WMS features will update the number of similar items left on the shelf in the warehouse. You can share this information with everyone who needs to know it, such as customers who are tracking their shipments and warehouse employees who are working on purchase orders.
Magento 2 and WMS: Bridging the Gap Between Stock and Sales
Stockouts, which are when stores run out of a popular item, are a nightmare for eCommerce sellers. By keeping track of sales channels in real-time, WMS can prevent stockouts. Warehouse pickers scan the item when they take it off the shelf, and the stock levels automatically update in the warehouse management system (WMS).
How Does Magento Inventory Management Work?
Magento inventory management is one of the most valuable services that Magento offers to eCommerce businesses. It is a set of tools that enable you to see in real-time where the goods are in the supply chain. It automatically updates when a new shipment comes from the supplier. It also shows you which of your warehouse locations is the most appropriate to fulfill each order. You can choose on-premise inventory management software if you want to customize it for the site of your organization. Some businesses also opt for a subscription to Magento’s inventory management content. This way, you do not have to install a lot of browser plugins and extensions or worry about the configuration of the software. Everything automatically stays up-to-date and compatible with JavaScript and Google Maps. This makes for a more streamlined online experience for your employees.
Benefits of Integrating Magento with a WMS
When you integrate Magento with a WMS, you are choosing to partner with experts in the field of stock management and POS installation. You don’t have to worry about buying the license or rights every time a new software solution is released that you want to use. Instead, you can use a powerful and reputable software platform that automatically complies with the rules of the eCommerce industry.
Flexibly Adapt Your Delivery Strategy with Magento WMS
The best thing about Magento-compatible WMS is that it is easy for your staff to use. You can simply change the interface so that employees can click on the name, images, or logo of a product instead of having to match alphanumeric codes or enter them manually. If you change your warehouse layout, the WMS will automatically adapt to it.
Specify Custom Shipping Methods and Rates for Each Warehouse
Effective ERP sometimes requires you to rent space in multiple warehouses, even if your eCommerce company is fairly small. A sufficiently powerful WMS can comply with the rules of multiple warehouses. You will need a versatile WMS that is user-friendly for employees of different warehouses with different types of workflow.
Minimize Delivery Cost by Calculating Shipping Costs Based on Warehouse Location
In order to minimize transport time and keep the price of your items low, you might need to store the same kind of item at more than one warehouse. Dividing your stock across multiple warehouses in different regions creates the best value for you and your customers. This way, there is a lower risk of delays when it comes to shipping merchandise to customers. A sufficiently sophisticated WMS can keep track of the order status at multiple warehouses.
Deliver Products from Multiple Sources Efficiently
If you have an account with a Magento-compatible WMS, you will be able to keep track in real-time of the warehouses receiving your inventory and of warehouse processes such as putaway and fulfillment. This way, there will not be any mixups when it comes to delivering merchandise to customers. You can see a demo of these during a consultation to buy the WMS software.
The Top 10 Best WMS for Magento
The 10 best WMS for Magento are ShipHero, Snap Fulfil WMS, Odoo, Fishbowl, ShipEdge, ShippingEasy, PowerHouse, Pulpo, Amasty, and Nexcess.
ShipHero
ShipHero is the best WMS for your Magento eCommerce business. Whether your merchandise is on individual shelves of warehouses in different states or whether your company owns entire warehouses, ShipHero can keep track of every part of the supply chain.
Customer Analysis and Sales Order Management
ShipHero notifies the relevant warehouse every time a customer places an order. It chooses which warehouse should process the order based on which warehouses have the requested items in stock and how far the merchandise will have to travel to get to the customer.
Order Management System for Magento
By analyzing large volumes of data, ShipHero WMS can ensure that your most popular items do not run out. It can suggest when to reorder, based on its projections. You can even automate the reordering process. It can also reduce the number of items that you must liquidate to make room for other items because they do not sell as anticipated.
Exact Order Fulfillment and Increased Customer Satisfaction
When you automate the warehouse picking and fulfillment processes, it is easier to ensure order accuracy. This way, you do not have to devote time and money to processing returns and this increases customer satisfaction which is good for business and for employee morale.
User Cases and Industries Benefiting from Magento WMS Integration
Small businesses that sell products using Magento benefit from WMS integration, especially when they work with warehouses that are in another state. Magento stores that sell clothing, food items, and consumer electronics benefit from Magento-compatible WMS software.
Magento Warehouse Management System Use Cases
Magento is a versatile eCommerce platform, and its WMS applications are versatile, too. It can automate warehouse processes such as receiving, putaway, fulfillment, and reordering. It can even help warehouse managers make decisions based on data and projections.
Industries Leveraging Magento WMS Integration
Many different industries have been leveraging Magento WMS integration and becoming more efficient while saving on costs. These include industries such as clothing, household goods, computer accessories, and non-perishable food items, among others.
Key Takeaways
Even if your Magento eCommerce business is successful, you could make your job and those of your employees much easier by using a WMS platform that integrates with Magento. You can choose the WMS features you need based on the size of your business and your company’s operations.
Frequently Asked QuestionsÂ
These are some common questions Magento eCommerce store owners ask about using WMS for Magento.
What are the Four Types of Warehouse Management Systems?
The four types of warehouse management systems are standalone, WMS as a module in supply chain management, WMS as a module in enterprise resource management, and cloud-based. Which one you choose depends on which operations your company is responsible for.
How Many Orders Can Magento Handle?
So far, no number of orders has been too many for Magento to handle. It can manage orders for all kinds of businesses, from the smallest to the biggest.
Does Magento Have OMS and What is OMS in Magento?
OMS is order management software. Magento has OMS, but it is quite basic. If you need more advanced OMS, you should buy it as part of a WMS package that integrates with Magento.
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Jul 3, 2023 | Blog
A warehouse management system (WMS) software integrates with ERP systems, helping computer networks at various locations on the supply chain share information. It keeps track of warehouse operations, including receiving, fulfillment, distribution, storage, tracking, and automation of inventory management. Implementing WMS at your warehouses is an essential part of supply chain management, ensuring efficiency in handling product levels and stock replenishment.
What Is 3PL Software?
3PL software is a cloud based solution and platform with tools that 3PL companies need to access and share relevant data with distributors, clients, and vendors. It can streamline the workflow, improving functionality and flexibility, and can be customized to meet the requirements of various industries, market needs, and locations throughout the world.
What Is Warehouse Management for 3PL?
Warehouse management for 3PL is the integration of warehouse processes within a warehouse engaged in 3PL activities. It involves managing stock, replenishment, and providing solutions for various market needs, ensuring the efficiency of the whole supply chain operations. While complete warehouse automation can be costly, 3PL software is a great boost to digitize information management and operations of a warehouse.
Can a 3PL Business Offer Warehousing Services?
3PL enterprises offer warehousing services to many different companies, including manufacturing companies and wholesalers. By entrusting warehouse manager tasks to 3PL companies, businesses can streamline workflows, track inventory, manage costs, and ensure efficiency in storage and distribution.
Is Warehousing Part of 3PL?
Warehousing is part of 3PL, often involving a suite of services such as transportation, replenishment yard management, and reporting services. 3PL ensures accuracy in its reports, providing support and services to meet the needs of various industries.
Dive into WMS and 3PL Software Features
If you use a trial version of WMS and 3PL software, you will see how it can increase the efficiency of your transportation management and inventory control. 3PL has an intuitive user interface, allowing employees to access the dashboard and core functions from various devices. eCommerce companies can increase sales and reduce costs with 3PL WMS.
What Is a 3PL Warehouse Management System?
A 3PL warehouse management system is software that helps 3PL companies organize the levels and processes of their warehouse. It can implement automation in warehouse processes, ensuring efficiency in receiving, barcode scanning, using material handling equipment, and tracking.
Features of 3PL Software
3PL software features vary, including putaway and picking at multiple locations. Compatibility with employees’ devices and customer service support online are also common features. It offers flexibility in managing inventory, products, and orders, catering to the needs of various industries and markets.
What Types of 3PL Software Are There?
The four main types of 3PL software are standard 3PL provider, service developer, customer adapter, and customer developer. These types offer flexibility to meet client demands, helping businesses succeed in competitive markets.
What Features Do You Need in a Warehouse Management System?
The required functionalities in 3PL software vary among clients. Basic plans include label printing and stock level documentation, while advanced plans may include purchasing, delivery, and budget production features. It must meet the specific needs and requirements of the company, including integration with vendors and supply chain visibility and support for various devices.
What Are the Features of WMS?
WMS features encompass data interchange, order fulfillment, document preparation, and inbound returns. It automates routine activities, keeping employees updated. It also includes inventory tracking, automation, and control over products, ensuring efficiency in managing stock and orders.
What Are the Key Objectives of WMS?
The key objectives of WMS are to streamline communication across the supply chain, increasing work speed and scalability. This includes managing logistics, supply chain management, and providing solutions for transportation and storage needs.
The Top 10 Best WMS for 3PLs
The top ten best WMS for 3PLs are ShipHero, Shortlist, Fishbowl, QuickBooks, Oracle, 3PL Central, Netsuite, WithoutWire, Magaya, and Shipedge. These systems offer a wide range of features, tools, and solutions to meet the needs of various businesses and industries.
ShipHero is the best WMS for 3PL available on the market. It gives you the ability to manage all the operations in your warehouse and beyond, from the accurate picking of goods to putaway of items that have just arrived from your suppliers. Its cloud technology integrates well with your CRM and warehouse software, and with all the devices in your warehouse, from scanners to tablets.
Benefits and Use Cases of 3PL Software
The biggest 3PL companies, such as FedEx and its competitors, handle many invoices and a variety of brands because of 3PL software. Behind every successful 3PL company is a top warehouse management software solution with enough adaptability to handle big supply chains, providing support and services to various industries.
What Are the Benefits of a Warehouse Management System?
WMS can benefit eCommerce companies of all sizes, categories, and sectors. They provide value for you and the retailers you work with. 3PL software is a great investment for B2C eCommerce companies, offering solutions for managing costs, efficiency, customer management, and integration with various devices.
Why Should You Use 3PL Software for a Small Business?
3PL software can add capability and transparency to labor management in your small, independent eCommerce store. Even if your store has only a few employees, each of them can accomplish a lot more with 3PL software than without it, ensuring efficient order management and shipping.
Choosing the Right 3PL and WMS Software
If you already use 3PL software, try a demo version of the WMS software to see how well it integrates with your 3PL software. Consider the specific needs, requirements, and cost-effectiveness of the solution.
What 3PL Software Does Your Business Need?
Your own warehouse operation might really benefit from EDI technology. For smaller operations, a simpler type of software might be sufficient. Consider the level of support, services, and integration needed for your business.
Top WMS Software for 3PLs
The top WMS software combines the right mix of user-friendliness with performance metrics the ability to analyze large volumes of data in real-time, catering to the needs of various markets and industries.
Best 3PL Software
ShipHero is the best 3PL software for eCommerce businesses of all sizes. It offers end-to-end, warehouse management solutions, whether you are storing just a few items or enough to fill multiple warehouses.
Top 10 Best Warehouse Management Software Systems (WMS) in 2023
The top 10 best WMS systems in 2023 are ShipHero, Fishbowl, Blue Yonder, Brightpearl, Epicor, Infor, TradeGecko, Pulpo, MRPeasy, and Manhattan Associates. These systems offer solutions for managing inventory, products, and orders.
What Is the Best Warehouse Management System?
ShipHero is the best WMS software for 3PL companies. It is user-friendly, versatile, and cost-effective, offering solutions for managing costs and enhancing operational efficiency.
Warehouse Management Software
Warehouse management software improves customer satisfaction and employee morale. It ensures quick and accurate processing of orders, providing solutions for managing inventory, products, and shipping.
Key Takeaways
Your 3PL business needs warehouse management systems and software. ShipHero has the WMS features to meet your eCommerce company’s needs, including solutions for managing logistics, supply chain management, and providing support and services.
FAQs
Common Inquiries in the 3PL Sector
These are some common questions that business owners ask when getting started in the 3PL sector:
Is Amazon Fulfillment a 3PL?
Fulfillment by Amazon is a 3PL. So is Amazon Multi-Channel Fulfillment.
What Are the Three Types of 3PL Providers?
The three types of 3PL providers are standard 3PL provider, third party logistics service developer, and customer adapter.
Contact ShipHero today for a demo.
