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April 21, 2023

Applying IoT in Warehouse Management

In today’s digital age, the Internet of Things (IoT) revolutionizes how businesses manage their warehouses. With the rise of smart technologies, warehouse management is now more efficient and cost-effective than ever before. Let’s look at IoT and how it can be applied to warehouse management.

What is IoT?

In simple terms, IoT is a network of physical devices interconnected to the Internet, enabling them to capture and transmit data.

IoT devices are changing how warehouses operate by providing an unprecedented level of real-time data analysis. eCommerce businesses and 3PLs can use this real-time data to track inventory movements, monitor environmental conditions, and inform business decisions.

As such, IoT devices are a significant development for warehouse management, leading to increased accuracy, efficiency, and improved overall operations.

Benefits of IoT in Warehouse Management

We can already see the massive benefits of using IoT in warehouse management. Not only does it provide a precise method of inventory management, but it also increases safety and security, decreases costs and waste, and makes data easily accessible for analytics purposes. Let’s dig a little deeper into the benefits of IoT in warehouse management - exploring what advantages could be awaiting you just around the corner.

Improved Inventory Management

When it comes to warehouse management, detailed data analytics can be a game changer. IoT solutions allow you to monitor every action and process all data, even for individual products in specific locations.

This wealth of information allows you to forecast what's needed and what needs to be improved in scheduling your inventory effectively. Optimizing your warehouse space and minimizing the time it takes to locate products can drastically improve your business's efficiencies. With the right data analytics tools and strategies, you can stay one step ahead and develop a solid plan for future inventory success.

Real-Time Monitoring and Tracking

Beacon technology can achieve real-time monitoring and tracking of products. These small devices have an in-built battery that allows for continuous Bluetooth connectivity, enabling the precise tracking of assets. With this technology, businesses can streamline inventory management and better understand the movement of their products.

Increased Operational Efficiency

With the help of IoT devices, businesses can increase their operational efficiency and streamline inventory and warehouse management. Automating these processes minimizes costs, saves time, and improves overall performance.

Through real-time data analysis and intelligent insights from IoT, businesses can identify areas for improvement and make informed decisions that further optimize their operations. By utilizing these advancements, companies can reduce their expenses on labor and increase their productivity, ultimately leading to a more profitable outcome.

Reduced Costs and Waste

Reducing costs and waste has become a top priority for businesses. Implementing IoT warehouse solutions can go a long way in achieving this goal. By monitoring conditions and providing predictive maintenance, these solutions help detect early symptoms of equipment defects, thus reducing risks, downtime, and accidents.

In addition to mitigating potential losses, intelligent warehouses are highly efficient in resource utilization, resulting in increased revenue and reduced management expenses. As such, it's easy to see why more and more companies are turning to IoT solutions to optimize their warehouse operations.

Enhanced Safety and Security

By expanding the use of smart sensors, warehouses can prevent accidents caused by human error. These sensors can alert workers to potential hazards such as overloaded racks or close encounters with forklifts.

Smart locks, cameras, and motion sensors can prevent fraudulent activities and product theft, enhancing security measures. These technological advancements can limit the risk of unforeseen circumstances and provide a secure environment for employees to work and maintain inventory. Enhanced safety and security measures benefit the company and ensure the well-being of those included in every step of the process.

IoT Applications in Warehouse Management

IoT applications, such as inventory tracking and sensor networks, have revolutionized warehouse management, resulting in more efficient and accurate inventory management. These applications have transformed traditional warehouse operations by allowing managers to track inventory, monitor equipment, and optimize processes in real time. Let’s look at the IoT applications in warehouse management and discover what opportunities await us!

Inventory Tracking

Warehouse management is an essential component of any company's operations, and with the advent of IoT technology, the process has never been more efficient. One such application is RFID technology for tracking inventory. Unlike barcodes, RFID tags can store an enormous amount of data such as size, manufacturer, expiry date, serial number, production line, and much more.

Plus, RFID readers can scan up to 200 tags at once, a rate far superior to traditional barcode scanning methods. The result is improved inventory tracking and efficient management, ultimately reducing costs and increasing customer satisfaction.

Sensor Networks

Another significant advancement is using sensor networks to monitor temperature, humidity, and other environmental factors. This technology enables warehouse managers to better track the goods in and out, ensuring that products are stored under optimal conditions.

Integrating these sensors into the supply chain allows managers to follow items in any delivery step and monitor the temperature and humidity in transit. Sensors are also commonly deployed for light movement, moisture, and temperature sensing. Companies can proactively minimize supply chain risk by adopting sensors to moniter driver life.

Automated Guided Vehicles (AGVs)

Another approach to improving warehouse productivity is autonomous technology, such as automated guided vehicles (AGVs). They navigate an IoT warehouse using floor stickers, LiFi technology, vision cameras, and wires. The quickest route to any location is calculated by automated guided vehicles, and the inventory is restored without human supervision.

Predictive Maintenance

Predictive maintenance is a technology that uses IoT sensors to monitor equipment and machines' working conditions. Combining this data with powerful machine learning algorithms can prevent breakdowns of forklifts or other material handling equipment, ensuring optimum production and minimal maintenance costs and downtime.

The smart sensors collect information about temperature, humidity, and leaks. A server can send commands to adjust HVAC systems or engage actuators automatically while connected to one system. This technology provides a valuable solution to the issue of costly, unexpected repairs that disrupt workflow and ultimately lead to losses in profits.

Revolutionizing Warehouse Management

The Internet of Things has revolutionized warehouse management, and the undeniable advantages should be explored, especially as it relates to inventory tracking, cost reduction, efficiency, and security.

The success of businesses today comes down to understanding customers’ needs and ensuring that suitable systems are in place to increase productivity and efficiency. IoT technologies offer many advantages when implemented correctly, and it has opened a new era of possibilities for warehouse management.

Our ultimate goal at ShipHero is to help warehouse managers maximize their operations by offering a platform that simplifies processes and helps them stay ahead of the competition. So, don’t let your business wallow in outdated operational systems when you could be one step ahead with the leading WMS!                                                                                                                                                                                            

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About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With thousands of brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.

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

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February 24, 2023

How to Manage White Glove Fulfillment at Scale

Are you looking for an innovative way to increase revenue without creating excessive workloads for yourself and your team? White-glove fulfillment might be the answer! But what is it, and more importantly, how can you manage white glove fulfillment services at scale? Don't worry - this blog has all the answers you need. From finding your niche in the industry to earning a good return on investment, this blog provides guidance on incorporating white-glove fulfillment into your current business model.

Organizational Efficiencies: Do You Have Enough Warehouse Space?

Ensuring that your orders are well taken care of is important, which is why white glove service needs extra attention. Stocking items like bubble wrap or foam inserts can take up more space in the warehouse than standard packing requirements. Consider setting up a special packing station specifically for white glove orders to avoid any mix-ups and help maintain employee efficiency. It's all about finding the right organizational balance - with great planning, you can achieve the perfect combination of space and order accuracy.

Having the right workflow for packing is essential, and it will be important to assess the available warehouse space to ensure there is enough room for all your packing needs. The volume, type of products, and size of the packing station must be considered carefully so that you have one-touch efficiency when organizing items for shipping. Streamlining this process can help keep errors down while promoting a faster throughput, so it's worth taking the time to get organized and find the most efficient way of packing for your white glove service. To optimize your packers' workflows, start by considering all the factors in play and create a plan that works best with your goals and resources.

Having warehouse managers adept in their Tetris skills can be beneficial when optimizing space through reorganizing. With the right tools and dedicated stations for white glove packing needs, it will be much easier to manage it all.

Employee Efficiency: Can you Designate a White Glove Packer?

Keeping an eye on employee efficiency in white glove packing ensures your warehousing operations are profitable. Designating the right person or persons for this type of job will pay off in the long run, as white-glove packing can sometimes take a bit longer – and you don’t want to lose time! Finding out who your best packers are and giving them the responsibility of handling white glove shipments is a great way to ensure that they are efficient while keeping costs low.

As any 3PL company knows, time is money. When it comes to efficiency, wasting time on something like creating a single order kit can add up quickly. The need to repeatedly go back and forth across the warehouse over and over again takes valuable moments away from getting packages ready and out the door. Time wasters such as this are one of the many reasons why efficiency tracking should be taken into account when evaluating your operations.

The second reason why white glove fulfillment may slow you down is that, since items involved with white glove services must remain as unscathed as possible, the picking and packing process needs to be done in a way that ensures minimal touches. That's why creating a warehouse space specifically tailored for such tasks can be incredibly beneficial.

Having an efficient packing process can make all the difference when it comes to streamlining your warehouse. Having a designated "white glove packer" could be beneficial in optimizing your workflow, as they can assess and select the proper shipping supplies for each product. Investing in packing items designed to make their job easier, like conveyor belts, can save time and make every process smoother. By getting products closer to the packer or relocating finished packages to a staging area for shipping, you can help get products out on time!

Automation Rules: Can your WMS Support White Glove Fulfillment?

Managing white glove fulfillment at scale requires more than just a strong team - you need a warehouse management system that can support it, too! When managing white glove items, your WMS should be able to separate them from your regular processes so they don't get mixed up or slow down your workflow. To do this successfully, you'll want to look for an automated solution that allows you to provide "special projects" like white glove fulfillment with the speed and precision it deserves. That way, you are sure your team and customers will have a seamless experience every time.

Automation and your WMS should be integral to any white glove fulfillment setup. Automated rules are a great way to streamline the logistics process, allowing you and your team to focus on providing that extra-special care associated with white glove fulfillment. Automating these processes also makes it easier for you to keep track of all the fine details that can easily get lost in manual processing, simplifying everything with one-touch ease.

Examples of White Glove Fulfillment

White glove fulfillment is becoming increasingly popular for businesses that are aiming to give their customers an unforgettable unboxing experience. It requires a lot of planning and attention to detail, but when done right, it can be a fantastic way to bring in repeat business. White glove fulfillment solutions involve custom packaging and extra touches like branded swag or personalized notes that help boost the customer's satisfaction. In addition, this approach adds extra value that leaves a lasting impression, encouraging customers to return for more. A successful white glove service can set your business apart from your competition and maximize customer loyalty.

Delivering large or fragile items to customers can be a complicated task - it takes special packaging and attention to detail, so it's no wonder why more and more businesses are turning to white-glove fulfillment when it comes to these projects. The extra expense is worth it for the clients because receiving their purchases in perfect condition will keep their customers happy and coming back for more.

Are you Ready to Scale your Fulfillment?

Scaling your 3PL services can be a big undertaking for businesses needing more than just regular order fulfillment. It's important to take the time to consider the overall efficiency of your warehouse, pickers, and customers when looking at growth opportunities. Streamlining and building up specific operations that work best with your current and future clients may be the most beneficial approach toward expanding naturally. You know what works best for you and your company, so why not explore the options available? From consolidating orders professionally or finding solutions that elevate the customer experience through specialized services, there are many paths forward that can help take your business to the next level!

Maggie M. Barnett, Esq. COO of ShipHero - Author

About the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial, and administrative procedures, reporting structures, and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management, and a passion for business transformation. She is known for her expertise in delivering operational excellence and her ability to provide guidance and mitigate risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.

Follow Maggie on Twitter&LinkedIn.

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January 27, 2023

Should You Use a Canadian 3PL?

Are you looking for a way to simplify your eCommerce shipping and logistics? If so, consider using a Canadian third-party logistics (3PL) provider. This is a perfect option, whether expanding into the Canadian market or trying to find a better fulfillment solution. With all the benefits of working with a 3PL in Canada – from improved customer experience to reduced transit times – you’ll wonder why you didn’t jump on board sooner. Keep reading as we explore why you should use a Canadian 3PL!

What is a Canadian 3PL?

If you're an eCommerce seller, you know what it's like to be stuck with mountains of orders and need somewhere to put them before sending them. This is where a 3PL partner with prime warehouse space comes into play: allowing businesses to store their products in arrival-ready spots and quickly get them off to customers.

But what exactly is a 3PL? It stands for third-party logistics, companies specializing in taking care of the logistics needs of businesses related to freight shipping, distribution, and warehousing. On top of this, 3PLs should have integrations with top eCommerce platforms to collaborate on order fulfillment. Plus, they also need partnerships with mail carriers like Canada Post to ensure that products can be shipped safely from one destination to another -- something any successful business will want assurance on.

For more information about 3PLs, read our blog, The Ultimate Guide to Third-Party Logistics.

Why Would You Need a Canadian 3PL?

With Canadian eCommerce fulfillment, expanding your market share couldn't be easier. Canadian 3PLs specialize in handling eCommerce fulfillment projects - so why waste time trying to figure out Canadian customs when you have a Canadian 3PL expert ready to do it for you? They will not only make sure to guide you through all Canadian tax legalities, but they'll also ensure that your goods are shipped quickly, securely, and cost-effectively.

What Do They Do for eCommerce Businesses?

Canadian 3PLs have emerged as a critical partner for eCommerce businesses looking to expand their operations. Canadian-based logistics providers are taking the lead in getting goods shipped quickly and cost-effectively, regardless of where inventory is sourced. With Canadian 3PL services, businesses can feel confident that their products or services will move from supplier to consumer with speed and agility.

But Canadian 3PLs offer more than just fast delivery—they can also help companies find the right balance between location and labor. By choosing the right industrial real estate properties, Canadian 3PLs have access to quality employment opportunities and hyperlocal amenities that help create an efficient supply chain. It's all part of creating a winning strategy on the digital shelf!

Benefits of Using a Canadian 3PL For Your eCommerce Logistics Needs

Canadian 3PLs can offer your eCommerce business many logistics services you won't find with other companies. For instance, Canadian 3PLs bring the invaluable benefit of experience with Canadian regulations, so you won't have to worry about surprises. Plus, they can provide customs clearance and brokerage services; in other words, they take care of all the paperwork for you!

Canadian 3PLs also offer unbeatable convenience—they can pick up goods at induction points across Canada and provide an uninterrupted transition from start to finish. As a bonus, Canadian 3PLs let business owners get in on Section 321, which enables duty reimbursement or duty deferral for goods crossing the Canadian-American border. (Restrictions apply. Visit our Section 321 page for more information.)

Questions to Ask Potential Canadian 3PL Providers

  1. Are the goods picked up in the U.S. by the third-party logistics provider and delivered to their Canadian warehouse/DC or to the customer in Canada?
  2. Does the 3PL offer guaranteed direct service with a specific date?
  3. Is there a way to track every order with the logistics provider?
  4. Is the 3PL able to provide pick-and-pack services?
  5. Is the 3PL well versed in sales taxes and duties?
  6. Does the company offer last-mile delivery? White glove services?
  7. Are there many warehouses across Canada owned and operated by the 3PL?
  8. Do they have easy access to major population centers?
  9. Can you access your inventory, orders, shipments, and operations via a web portal 24/7?
  10. What kind of technology does the provider use? Integration-capable enterprise software is preferred.

Not All Canadian 3PLs Are Created Equal

Retailers have to navigate a constantly changing landscape, making it no surprise that 3PLs have become such a hot commodity. Most retailers understand the importance of finding the right Canadian 3PL provider that can help keep up with their eCommerce needs. But not all Canadian 3PLs are created equal: some offer comprehensive services like website hosting and mobile commerce enablement, while other Canadian 3PLs may provide basic warehousing and order fulfillment. To ensure you’re getting the perfect 3PL for the job, it’s important to take your time and do your homework. Analyze reviews, get reference reports, and be sure you’ve found a Canadian 3PL with all the bells and whistles you need for success.

Did You Know ShipHero is Also a Canadian 3PL?

Business owners around the nation can breathe a sigh of relief, ShipHero is one of the top Canadian 3PLs. Everybody has access to their fast and cost-saving Canadian warehouse locations thanks to their presence in Canadian cities such as Toronto and Vancouver, plus access to Calgary, Ottawa, Montreal, and Quebec City (to name a few). Canadian businesses can now receive up to a 20% reduction on all shipments annually - allowing them to save money and pass those savings along to their customers! So if you’re a Canadian business looking for top-notch shipping options – look no further than the Canadian experts at ShipHero.

Click HERE to Schedule a Meeting Today

About the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.

Follow Maggie on Twitter&LinkedIn.

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January 13, 2023

How to Make Your 3PL More Organized and Efficient

Ready or not, the future of 3PLs is here! Companies are constantly seeking strategies to optimize workflow and ensure their goods get to customers quickly and efficiently. To stay competitive in this ever-evolving landscape and remain successful, 3PL providers must embrace new technologies, stay organized, and boost efficiency. In this blog post, we'll explore the future of 3PLs and discuss strategies for getting organized and becoming more efficient.

Why 3PL Efficiency and Organization is Important

3PL organization can be tricky, but it’s essential for operating at peak efficiency. Not only is there the challenge of keeping up with daily tasks and staying organized in the present, but 3PL centers must also look to the future and plan accordingly.

Establishing an efficient 3PL organization structure will enable your operation to remain competitive for years. Implementing organizational solutions like strategic product grouping, ergonomic layouts, and optimized replenishment cycles are all examples of what 3PL companies should use when creating a successful warehouse system now and in the future.

Creating a More Organized Warehouse

If 3PL organizations want to optimize their existing warehouse space, creating a more organized facility is the key. It starts with ensuring inventory is accurate for better visibility and then investing in 3PL warehouse management software for improved automation and 3PL billing software for efficient payments.

Then, you can reach new heights through vertical space utilization with stackable pallets that take up less space. Visual aids are like mini cheat sheets that make picking easier, so take advantage of that. Finally, don’t forget the power of cleanliness—keep your 3PL facility neat and tidy for a painless experience at every step.

Ways To Boost 3PL Efficiency

Maximizing warehouse efficiency is vital, but it requires the proper organization to make the necessary improvements within your warehouse management software and overall procedures. If done correctly, these steps could help your 3PL organization save time and money and allow a competitive edge in the market.

With so much opportunity in modernizing warehouses, 3PL organizations should carefully consider automation to improve efficiency and reduce worker efforts for maximum output success. Moreover, 3PL organizations should always consider the return on investment (ROI) when evaluating costs associated with investing in technology and integrating lean best practices into their operations.

In short, improving efficiency may seem expensive at first glance; however, by prioritizing significant investments over minor ones, 3PLs can genuinely reap the benefits of their improved warehouse productivity.

Benefits of Warehouse Efficiency

Warehouse efficiency can be the key to success for 3PLs, leading to the following:

  • Increased customer retention
  • Improved operations
  • Reduced staffing needs
  • Better flexibility
  • Greater resiliency

A 3PL organization's success may be rooted in the soil of warehouse efficiency. With a well-oiled operation, they can provide remarkable logistical services while enjoying all of the abovementioned benefits.

How a WMS Can Help Make 3PLs More Efficient

3PLs have enough going on without constantly worrying over disorganized 3PL services - that's where warehouse management software (WMS) comes in. Put your 3PL organization to the test with a seamless, integrated platform that clients can customize to each customer's needs; no getting lost in the sauce trying to make sense of chaotic processes when you implement WMS.

Cross-docking and advanced tracking capabilities mean 3PLs don't have to worry about time-consuming, tedious tasks. They can keep all their 3PL services running smoothly, saving them from missteps or costly delays.

Increase Efficiency in Your Warehouse Today

3PLs must be ready - because technology isn't standing still. In an increasingly fast-paced and competitive world, 3PL providers must stay ahead by embracing new technologies and getting organized with efficiency-boosting strategies.

Luckily, there are several ways to boost efficiency in your warehouse. You can increase organization and efficiency with a warehouse management system and proper use of warehouse space. After all, since 3PL operations are responsible for such an essential role in many businesses' success, you must keep up with the times and stay ready for whatever comes next.

If you're looking for ways to make your operation run smoother, try ShipHero's Warehouse Management Software today! And remember - an efficient 3PL is a happy 3PL.

About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With thousands of brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.

Stay informed about everything in third-party logistics by following ShipHero on LinkedIn and subscribing to our newest blogs and updates.

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January 6, 2023

The Future of 3PLs: How to Tap into 3PL Infrastructure

Are you feeling overwhelmed as your eCommerce business grows? Can't quite keep up with the demand but don't have the capital to invest in a massive supply chain infrastructure of your own? You don't need to. With a 3PL (third party logistics), you can access sophisticated systems, warehouses, and transportation networks that provide unmatched customer service and cost savings. In this blog post, we'll explore how tapping into 3PL infrastructure may be just what's needed for growing eCommerce businesses to weather even the stormiest market.

When Do Businesses Need a 3PL provider?

If you’ve never seen the impact of third-party logistics providers, you may be under the impression that it’s an expense you can do without. But trust us when we say that it pays off a lot more than doing all your fulfillment in-house! 3PL companies can help merchants – from small businesses to eCommerce empires – with their scalability needs. When faced with unforeseen order growth or a spike in customer demand, working with a third party warehouse and its services can save you time and money in the long run. After all, nothing’s worse for your brand than breaking promises to customers, especially in an era when 60% of global consumers expect same-day or two-day delivery.

How 3PLs Bring Technology to Infrastructure

3PLs have come a long way since the days of organizing physical products in dusty warehouses - they've brought technology to infrastructure! Online merchants are all too aware that keeping up with the big retailers means implementing advanced 3PL tech, such as their warehouse management system (WMS). A WMS allows 3PLs to connect data from various sources, enabling end-to-end visibility into every single order. Wherever you send it, you can track it! So what exactly does this mean? In short, online merchants can more easily compete with larger retailers by turning to technology-enabled 3PLs for services.

  1. Automating the 3PL Automating the 3PL process isn't just for robots, it's for people too! By automating processes, businesses can save precious time and effort. Ordering and tracking become an effortless breeze. With real-time updates in your online store, warehouse staff is updated on orders as soon as they're placed. Furthermore, various parameters allow you to quickly search and find exactly what you need. And that's not all – fulfillment software also ensures optimal inventory management, so reordering is quick and efficient. Automation leads to reduced delivery times so customers can receive their packages faster.
  2. Data Moves Freight Whether it's to shave off delivery time or reduce inventory costs, data can help get freight moving in the right direction. Fulfillment software can use past data to ensure you're sending your products to the best possible locations. No more guesswork! With built-in metrics focusing on peak times, revenue, by channel, and quantity orders by USPS zone, you'll have unbeatable insight to optimize your supply chain. Plus, data logs only get more accurate as time goes on and you gather increasing amounts of order history - it's a win-win!
  3. Reduce Errors 3PL technology is here to make our lives easier, especially when reducing errors in order fulfillment. By automating the shipping process with connected technologies, 3PL infrastructures eliminate duplicated work and human error that can cost customers time, money, and an overall bad experience. What’s more, 3PL technology offers insight into the 3PLs performance with complex data like accuracy levels and delivery timelines that demonstrate how orders are being handled every step of the way.
  4. Meet Customer Expectations Customers today expect lightning-fast delivery within the same day or two days, which can only be achieved if the right technology is in place. That's where a tech-enabled 3PL comes in; they can help you optimize your storage and shipping to meet customer expectations. With their system, your inventory will be distributed to warehouses closest to your customers. Each time an order is placed, algorithms select the courier providing an efficient, cost-effective solution.

How to Tap into 3PL Infrastructure

Partnering with 3PL services can help give you a leg-up in today’s competitive world, but it’s essential to be sure the 3PL infrastructure can keep up with your business growth. Before signing on, evaluate the 3PL's existing logistics operations—are they set up to store, pack, and efficiently pick orders while accommodating a rise in inventory? Additionally, ask about the cost and if any steep start-up fees come into play. While upfront costs may seem high, future savings may be unlocked when you consider what is included in the quote - from less overhead to lower labor costs down the line. Ask your 3PL vendor what reporting capabilities they offer; this allows you to track areas such as order accuracy and timeliness of deliveries, along with any potential risks or liabilities associated with broken or lost items. You'll also want to confirm that 3PL integrates well with your existing inventory, order management, and warehouse management software for a smooth transition into 3PL services.  Are you looking for warehouse software that works for 3PLs? ShipHero's warehouse management system comes with integrations plus real-time reporting, the perfect combo for staying ahead of the future of your business!

Third Party Logistics Advantages and Disadvantages

The 3PL infrastructure, which is tailor-made for the e-commerce industry, makes it easy for small to medium-sized businesses to launch their products worldwide and scale up their operations on demand. However, 3PL isn’t entirely sunshine and rainbows - there can be hiccups ranging from extra fees to lags in shipping standards. As always, it’s important to weigh the advantages and disadvantages of 3PL in your decision-making process before investing time and energy into outsourcing logistics.

Advantages

1. Better Shipping Rates

When many brands join forces and leverage the volume of their orders, they can negotiate better rates from carriers. That's why 3PL providers are so great: You may be small in number alone, but together you’ll get heard loud and clear for discounted prices that lead to greater profits per order.

2. Decreased Shipping Time

So how do you compete with Amazon Prime to get packages to customers? Building tons of warehouses across the country might be expensive, but you can hit that two-day mark without breaking the bank by using a 3PL.

3. Real-time Transparency

Real-time transparency gives brands the advantage of being in direct control: accurately stocked shelves and order status updates that come lightning fast. With paperless warehouse operations and Tier 1 WMS data at your fingertips, you can keep a refreshed eye on every detail - from macro to micro!

4. Strategic Partnership Networks

Instead of relying on a go-it-alone approach, tap into 3PLs strategic partnership networks to get your hands on solutions specifically made for you. From integrated tools and offers to highly customized experiences—you can make it happen with these trusted partners!

Disadvantages

1. Upfront Investment

It's clear that when it comes to 3PL providers, there's no free ride - you'll have to pay the piper for setup costs such as software integration, SKU uploads, and account access.

2. Hours or Workflow

Instead of packing your orders, wouldn't it be nice to have a third party do the job for you? But beware - working with 3PLs means relying on their hours and workflow. It's best to plan ahead when engaging such services, as any disruption could lead to hiccups in delivering your goods.

3. Finding a 3PL You Can Trust

Choosing the right 3PL partner isn't just about getting a good deal – although that doesn’t hurt. You'll have to put in some homework and carefully vet reviews, size, reach, and service offerings before you can confidently shake hands with your ideal 3PL provider!

ShipHero is a Shopify Third Party Logistics Partner!

ShipHero, with 3PL infrastructure and software that seamlessly integrate with Shopify and Returnly (to name a few), is undoubtedly a 3PL partner you’ll want to know about. With ShipHero’s one-stop shop for 3PL services, you can rest easy knowing that your inventory will always be on track. And saving money? That’s a no-brainer! Thanks to real-time ship rate shopping and built-in reporting features that cover COGS, picker/packer efficiency, replenishment, and more… we might be the best 3PL for Shopify you have ever tried!

3PLs: The Backbone of Supply Chain Management

3PLs are often the unsung heroes of a shipper's operations, providing an invaluable infrastructure to help them track inventory, orders, and logistics with greater precision and certainty. Their solutions offer robust analytics, machine learning capabilities, and automated toolings for pricing, booking, and documentation, allowing shippers to make better decisions backed by fact-based data quickly. Despite the apparent advantages 3PLs present to businesses of all sizes, many fail to take advantage of 3PL tech solutions. As 3PLs have become essential in managing supply chains, it is time for shippers to reevaluate 3PL advantages and disadvantages and prioritize using their 3PL business relationships more effectively to stay one step ahead of their competition. 3PLs are the future of eCommerce. By tapping into their infrastructure, you can level up your customer service while saving money on warehousing and transportation.

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November 26, 2021

The Difference Between 3PLs and Freight Forwarders

The pandemic has added words to our vernacular that many people had never heard before. Terms like supply chain, freight forwarding, 3PL, last mile and fulfillment are now much more familiar to the everyday consumer than they’ve ever been. However, as often happens with industry-specific verbiage, that doesn’t always mean the definition or understanding of these terms is widespread.eCommerce shipping is a current hot button issue, forcing many people to spend more time thinking about how the products they buy actually make it from a factory in China to a shipping container to a US port to a warehouse to their front door. While this is part of the supply chain, two very specific types of businesses are more involved than ever - 3PLs and freight forwarders - and it can be hard to keep them straight … even for those who work in the industry.Below is a breakdown of the differences between third party logistics (3PL) companies and freight forwarders, as well as an understanding of when a company might choose one type over the other.

Freight Forwarding Defined

A freight forwarder is typically a company that manages moving products from one place to another. They typically are a non-asset company that doesn’t manage trucks or drivers or any port workers - they manage the details of where a shipment is, where it can get loaded onto a ship, plane or truck, and how it will get transported to a warehouse for fulfillment and distribution.The major benefit of a freight forwarder is that they can negotiate better rates with shipping companies due to the volume of product they’re moving. By working directly with carriers, freight forwarders can broker better rates than eCommerce companies often can on their own.They can also work to coordinate shipments that might need multiple types of transportation throughout the journey, such as land to sea to land to air.Freight forwarders also have a deep understanding of customs,imports and exports. These are the areas of shipping that typically have the most red tape and can easily trip up a newer or smaller eCommerce organization that doesn’t have previous experience with these issues or simply doesn’t have the bandwidth to manage these details.Freight forwarders are also very familiar with every type of possible transportation, including sea, air and ground. Due to the breadth of their client base, they need to have a solid understanding of how to move any product for any company from anywhere in the world.

Third Party Logistics (3PL) Company Defined

A 3PL is an organization that can manage a few different processes. While a freight forwarder is strictly responsible for forwarding freight, a 3PL might be in charge of one, two or all of the following:

  • Transportation

Services could include: LTL (less than truckload), FTL (full truck load) services, rail, air, ocean and/or trans-modal

  • Warehousing & Fulfillment

Services could include: receiving, inventory management, returns, eCommerce fulfillment, B2B fulfillment, inspection, and/or kitting

  • Forwarding

A freight forwarder can be considered a 3PL, too. Sometimes a freight forwarder also operates their own warehouses, but often still work with fulfillment centers like ShipHero to manage the B2C shipmentsYes, you read that right, it is possible for a freight forwarder to be considered a 3PL. In the end, it depends on how much of the logistics process they own - if a freight forwarder manages their own warehouse then there’s a good chance that they offer warehouse management services like pick, pack and fulfillment. This puts them more at the level of a 3PL, than just a freight forwarder.The true value of a 3PL lies in their warehouse and fulfillment capabilities. They are equipped to handle eCommerce fulfillment duties from receiving to DTC to returns to storage. By outsourcing these tasks to a third party logistics company, eCommerce retailers are free from the worry of warehouse leases, employees, hiring and dozens of everyday tasks that are necessary to run a business that don’t impact the bottom line.

How to Choose Between a Freight Forwarder & a 3PL

The biggest question for most eCommerce retailers is how to choose between a freight forwarder and a 3PL. In general, there are a few scenarios that lend themselves more to one than the other. Here are a handful of situations to look for when choosing.

  1. You are only concerned with getting your inventory from one location to another.Maybe you’ve recently secured product that’s stuck somewhere in Canada and you need it in Michigan. In this instance, using a freight forwarder would be the perfect choice. Best option: Freight Forwarder
  2. You need to get your inventory shipped from China, into a warehouse and then shipped to consumers. This is a pretty perfect situation for a 3PL. They have the processes in place to manage shipping carriers, receive and putaway your inventory and pick, pack and ship your orders. Best option: 3PL
  3. You’ve acquired some inventory but it’s not enough to justify the cost of an entire shipping container. Freight forwarders can save money by combining different clients’ orders into one container. Since they have access to a variety of inventory locations and clients’ different needs, it should take them no time at all to organize the shipment and get it where you need it - normally for less than you expected. Best option: Freight Forwarder
  4. You’ve increased advertising for your product on the West Coast and now have a lot of orders pouring in from Washington State. Your current warehouse is in Maine - so this is creating a problem. Working with a 3PL will alleviate this issue in no time. Depending on size, most 3PLs have more than one warehouse and work to maximize your inventory distribution to keep shipping costs and times down. Best option: 3PL

Choosing between a freight forwarder and a 3PL is really about the long-term. If you are looking to forge a relationship with a logistics company that will act as a partner, and manage your fulfillment process from start to finish, you’re really looking for a 3PL. If you’re looking for a more transactional relationship that you may only use once or twice a year, then a freight forwarder will work.As we continue to move through 2021 and into 2022 there is no doubt that the shipping game will continue to evolve. The more you know about your options, the better choices you’ll make.If you’re new to ShipHero Fulfillment, please schedule a meeting today with our experts to learn more about how we can help you get your orders picked, packed and delivered with our fulfillment service. No setup fees, simply pay as you go. ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.Click HERE to Schedule a Meeting Today

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October 21, 2021

5 eCommerce Management Strategies for Flourishing Through the Holiday Season

By: Aaron Rubin, Founder & CEO of ShipHero

    • You can’t enter the 2021 holiday season without taking a critical look at your inventory and fulfillment procedures. It’s as simple as stepping back from the business and asking yourself:
      What looks ridiculously stupid here?
    • Protect your business now from the ups and downs of peak season staffing changes and current labor shortages. Start with the basics: a Standard Operating Procedure (SOP) and consistent training protocol.
    • Boost your holiday sales with complementary products or by partnering with third-party marketplaces.

If you’ve been in business for a while, and maybe expanded your facilities but would like to scale even further, it’s time to stop trying to be a superhero. Managing all facets of your brand’s operations singlehandedly leaves it vulnerable to mistakes.

Mistakes can be devastating for an eCommerce business during a season as important as the holidays.

I recently spoke with Steve Hutt on the eCommerce Fastlane podcast about how to avoid overselling and other classic faux pas committed by fast-growing eCommerce merchants.

We discussed why you’re most vulnerable to the invisible retention vampire during peak season, how your staffing and inventory management can improve with closer attention to internal processes, and how tools like ShipHero can facilitate the kind of growth you never thought possible.

I lay out five central pieces of advice for you here, but I highly recommend listening to the episode for the full details of our conversation.

1. Look at Your Business From a Bird’s Eye View

When you’re busy overseeing warehouse operations and making sure the day’s orders go out, you get stuck in a dangerous, all-too-common loop. One new hire or unexpected increase in sales can leave you barely managing chaos.

Like many entrepreneurs, you can’t see the proverbial forest for the trees. Then, peak season pops up and only highlights your weaknesses.

Before considering how you’ll profit from Black Friday Cyber Monday (BFCM) 2021, it’s important to zoom out.

Be a drone: Look at your business from an outside perspective and get honest with yourself. Which things are you and your team doing that simply don’t make sense?

It might be helpful to bring in an unbiased friend or family member to observe how things work (or don’t work) in your shipping and receiving methods. You might be surprised at the inefficiencies they catch — and that’s the idea.

Getting radically honest with yourself about what’s not serving your business infrastructure and long-term goals is the first step in making productive change.

2. Prioritize Accurate Inventory

The reality is that most merchants don't think about having a process for inventory management. They just stick with what they’ve always done, even if their business is no longer in its infancy.Don’t be like most. Don’t unknowingly oversell.

Telling a customer you can’t follow through on what you said you had in stock might seem like a normal part of the eCommerce business, but it shouldn’t be. You should know what you have in stock at any given moment, and that should be properly reflected live on your website and on any third-party marketplaces.

Overselling is an invisible vampire. It can suck away your potential for customer retention faster than anything else — especially during the holiday season.

Q4 has the potential to be your most profitable — and it has the same potential to destroy your reputation. It’s hard to predict how the courier companies are going to handle the demand this year, so overselling could mean being responsible for holiday gifts not being delivered on time. Disappointed customers will spread their negative experiences with your company all over social media. You may not be able to survive those negative Twitter mentions, so it’s best to avoid them altogether.

Luckily, most of the inventory problems that could lead to the dreaded overselling problem are easily addressable.

???? Check out our video resources on the ShipHero YouTube channel to start reworking your processes before the peak is truly upon us.

3. Protect Your Staff With Defined Internal Processes

In the critical holiday months, there’s no time for delays, but that’s exactly what the industry as a whole may face this year. Things may feel like they’re slowly returning to normal post-pandemic, but you’d be remiss not to prepare for additional COVID variants and restrictions, which could lead to unpredictable staffing issues.

Preempt the effects of the current labor shortage and seasonal staff turnover by delineating your SOP and training protocol now.

One of the best strategies to eliminate some of this risk is to cross-train your team so your key staff members aren’t irreplaceable. You should have training manuals for each role (accessible in the cloud). Set aside time for staff to document how they do their jobs before you hit the peak busy period. That way, anyone can step in if need be.

When you have systems in place, your team and warehouse will be ready to onboard new hires and adjust to temporary employee absences despite an uptick in sales.

4. Adopt Scalable Tools

When you first opened your business, you probably had no choice but to wear all the hats.

From product research and manufacturing decisions to listing optimization and warehouse operations, you learned and did it all. But with growth comes growing pains, and it could be time to bring in some help in the form of automation.

To determine where you could use some tech solutions, start by identifying what you do best and what you like to do. Where are your time and skills most valuable? Stay true to that, and then use tools like ShipHero to replace you in the areas that exhaust your time and energy.

As Steve wisely remarked on the podcast, “Be intentional. Stop using duct tape.”

If you think peak season isn’t the right time to adopt new tools, think again. Of course, you don’t want to be trying out a new IMS during the week of Black Friday, but jumping in head-first in anticipation of your highest sales all year is a great way to test out whether the system will work for you long-term.

At ShipHero, we’re returning to our roots and helping you get rid of any duct tape you’ve been relying on thus far. We know small-to-medium enterprises (SMEs) can grow bigger faster with the right guidance.

5. Consider Third-Party Marketplace Opportunities

Third-party marketplaces offer a huge opportunity to eCommerce sellers. With the right inventory management software, you can mitigate the risk of overselling and grow your brand’s reach.

Marketplaces like eBay, Amazon, and Etsy attract millions of buyers every single month. By listing your products with these and other retail giants, you’re putting your products in front of a whole new audience who wouldn’t have otherwise discovered you. It’s the equivalent of coming across an exciting new product on a Target endcap. Smaller brands benefit from the power of big-box visibility, and so can you.

Ideally, you’ll be able to implement omnichannel eCommerce and marketing strategies before the holidays. Bear in mind that this won’t work for you if you’re experiencing inbound stock issues heading into the busy season.

Bonus Quick Wins:

  • List complementary products, but make sure to create unique bundle SKUs.

Bundling together appropriate products is a great way of increasing your basket spend and selling more products. Look at your product ranges and see what two or more products could be put together to create a package.

Whether it be a TV with a surround-sound system or mascara with a pocket mirror, you likely have items that can be bundled for a holiday exclusive.

  • Deliver to Canada if you don’t already.

Are you open to sending your products to our neighbors to the North? You could see 4-to-5% revenue expansion with no need to change messaging, as the U.S. and Canada audiences are so similar (and speak the same language).

Explore this by targeting Canadian audiences on social campaigns or by listing directly with marketplaces like Amazon Canada.

  • Create a plan for handling returns and enhancing the post-purchase experience.

As you well know, returns are part of being in eCommerce. Having a consistent process in place to handle them can result in rescued sales — exchanges rather than refunds — and offer up retargeting opportunities with the same customer.

Don’t neglect post-purchase communication, especially in the height of return season (January).

eCommerce Growth Spotlight: BlackWolf

One of ShipHero’s superstar users is men’s skincare brand BlackWolf. The brand came to us in September 2020, when they were operating out of one 1,250-square-foot facility. Working with ShipHero and using some of the strategies mentioned in this article helped transform the business.

Fast-forward to October 2021: The skincare company now has two large facilities (17,000+ square feet) and ships 20,000 orders per week. BlackWolf’s incredible growth speaks to the power of precise and automated inventory management.As counterintuitive as it could seem to take on something new during the holiday lead-up, there’s no better time to solve internal problems.

Be ready to dive into what’s not functioning like it should for the sake of your current and potential lifetime customers — and give them a holiday season to remember.

????We’re offering exclusive deals for eCommerce Fastlane podcast listeners! For Shopify Merchants, receive your first 90 days FREE if you sign up for ShipHero’s Shipping Software before 12/31/2021.Schedule a meeting today with our experts to learn more about our shipping software on steroids built for eCommerce brands & 3PLs looking to run their best warehouse and how ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue and success.

Click HERE to Schedule a Meeting Today

Aaron Rubin, Founder & CEO

ShipHero

About the author:  Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.

Follow Aaron on Twitter&LinkedIn.

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3PL Warehouse Management
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September 3, 2021

5 Ways an Integrated WMS Reduces Errors

By:  Aaron Rubin, CEO and Founder of ShipHero

It can seem that managing a warehouse is a full-time job for at least 100 people. For many smaller eCommerce businesses, devoting that type of people power and resources to one aspect of their operation just isn’t feasible. That’s why it’s so important to implement a strong, robust and fully functional Warehouse Management System (WMS). And it will also save you money, time and frustration.

Warehouse Management System Explained

First, let’s talk about what a WMS can do. Primarily, it manages every aspect of your warehouse operation. This includes receiving inventory, counting and storing inventory, laying out the warehouse and picking and packing. It manages everything that happens from the time a customer places an order to the time the order is placed on a truck for shipping.

That is a big lift, which means the software needs to not only work flawlessly, but people in the warehouse must be willing to learn the system and capitalize on all that functionality.

Managing so many things also means that having WMS will close the gaps in your processes. Gaps where errors, revenue or wasted effort might escape. And this is the real beauty of WMS - it saves you time and money and makes the entire customer experience just that much better.

Ways WMS Reduces Errors

So, what is that magic that WMS performs? How is it possible for a software system to address physical and logistical problems, like mis-picks and inventory errors? Let’s find out.

  1. Provides Inventory Management: If you’ve ever worked at a brick and mortar retail store for a large company, there are the two dreaded times a year when inventory must be counted. It’s a nightmare, have no doubt. Tracking down barcodes for the smallest tchotkes, scrambling to find the last piece of clothing to make sure it’s all counted. And it all happens while the store is closed, meaning you were probably pulling an all-nighter. With a warehouse management system your inventory is tracked daily, down to the last barcode and managed as shipments are received. Because inventories and manifests are reconciled on an ongoing basis, it is easy to keep track of all of your product and even easier to keep inventory levels up-to-date in your point-of-sale system. This enables you to sell the products you have (earning revenue), to not sell the products you don’t have (losing revenue), and re-order the products you need to as soon as they run low. The less down time between replenishments, the quicker you can make a sale and make money. To be clear, you will still need to run inventory counts, but it will be so much easier.
  2. Provides Fail Safes and Backups: Inventory managed with barcodes makes it easier to pick, pack and prep for shipment. It also means that there are fail safes built into the system to reduce errors. With ShipHero, our pick and pack functionality is mobile. Warehouse employees take their order (on a mobile device) to the bin that has been identified (via the mobile device) and pick the product, scanning it before preparing it for shipment. It is then scanned again before it is packed, ensuring that the right order was picked. This reduces a multitude of errors. In fact, some of our clients see a 99% reduction in mis-picks and mis-ships. This is a huge cost savings and also helps to build customer loyalty. Customers aren’t happy when they’re anticipating a delivery and open the package to receive the wrong item. Accuracy is key and warehouse management software can help you meet that challenge.
  3. Provides Storage Optimization: The data gathered by a warehouse management system is invaluable to not only your warehouse team, but the entire organization. One of the most overlooked opportunities is warehouse layout. By analyzing your pick, pack and ship data you’ll quickly be able to see what products are the most popular, which products are most often shipped with others and the length of time it takes to pick orders. This gives you the chance to completely rearrange how the warehouse is laid out, bringing popular items closer, group like items together and in general, making it easier for your pickers and packers to do their jobs efficiently.
  4. Provides Better Forecasting: Managing your warehouse efficiently means that you have a much better picture, all the time, of what is needed, what’s working and what needs improvement. Knowing this information is already a huge step toward reducing errors. It’s also a big step towards enhancing other areas. One such benefit from this organization is your relationship with suppliers. Ordering and restocking will no longer be “hair on fire” scenarios - you’ll now be able to communicate your needs to your suppliers far in advance of when you actually need the product, meaning you won’t need to lean on this 3rd party for favors or miracles because you were unable to accurately forecast. It will make your business life much more smooth and enable you to forge lasting supplier relationships.
  5. Provides Peace of Mind: Maybe this isn’t the biggest error reducer, but knowing that you have a well-run warehouse filled with employees who know how to manage it will save you time and anxiety, especially when busy seasons or holidays roll around. You’ll no longer have to cross your fingers and hope that everything runs smoothly; now you’ll know with confidence that you have the systems and tools in place for your team and your business to succeed.

Major Benefits, Major Commitment

It’s true that Warehouse Management Software can do everything listed above, but there is some responsibility on you. Adopting and implementing WMS takes time and patience, and requires that you and your employees buy into all the benefits this new technology will afford you. In many cases, this may mean ditching the old “tried and true” methods that so many long-time warehouse employees rely on. There could be some resistance to a paperless picking process or hesitancy about how to use the new technology.

Make sure you’ve set aside the time and patience to handle the challenges that will come with transition. While the benefits far outweigh the obstacles, it’s still important to set everyone’s expectations. However, based on past experience, ShipHero is confident that you won’t regret making the change.

Schedule a meeting today with our experts to learn more about our WMS software built for ecommerce brands & 3PLs looking to run their best warehouse and how ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.

Click HERE to Schedule a Meeting Today

Aaron Rubin, Founder & CEO

ShipHero

About the author:  Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.

Follow Aaron on Twitter&LinkedIn.

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August 19, 2021

5 Ways to Grow Your eCommerce Business Without Over-Expanding

By: Aaron Rubin, Founder & CEO of ShipHero

The changes to the world economy have been many and varied since the start of the COVID-19 pandemic in March 2020. However, perhaps the largest change has been seen in eCommerce, where 2020 projections were blown away by a population of shoppers trapped in their homes, with little else to do except shop online.

While this surge in eCommerce has been a good thing for most businesses, perhaps the largest concern moving through the 4th quarter of 2021 is how to maintain the increase in eCommerce sales without overreacting – growth is wonderful, but with the resurgence of the Delta variant, things are a bit more uncertain than they were two months ago, and it appears that eCommerce may be due for another uptick in revenue. Which means a downturn could be on the horizon.

Meet the Ebbs and Flows on Even Footing

But how can you meet the challenge of ongoing revenue growth without expanding your business to the point that you cannot sustain it when the eventual lull comes? While this has always been a concern for retailers, virtual or not, maybe there’s a better way to manage these ebbs and flows. Let’s examine five ways you can grow your online business and revenue through efficiency and optimization, instead of expansion that often hits your bottom line.

5 Ways to Grow Your Online Business

  1. Optimize, optimize, optimize. According to a recent report by EuroMonitor, eCommerce businesses have managed to handle the influx of orders by optimizing their current tools or investing in new ones.With a warehouse management system like ShipHero, these online businesses were able to more accurately track their inventory, nullify pick and pack errors, and more quickly move product out the door and into customer’s hands.By using already installed systems, these companies have discovered that they can do more with the same, and by not increasing overhead, they will be able to better sustain any ebbs or flows brought about by another round of COVID-related lockdowns.
  2. Keep your focus. While it is easy to get wrapped up in the allure of attracting brand-new customers to your virtual storefront, it can also lead to additional spending and time away from your core customer. In the midst of uncertainty, it might be better to focus more squarely on your base, using channels and media you know will work. You always want to strive for growth, but take the time to really dive into your current outreach channels and see what else you can mine from them. You may find it easier and more profitable to secure sales from your core customer base, as opposed to a brand-new customer demographic.
  3. Leverage current partners. Whether it’s the company that supplies your shipping materials, or the one that runs your software, chances are these companies have additional tools and insights they can provide. Leverage these already established relationships to get more value. While this will more than likely require an additional spend, you will save time and headache by having integrations in place that will make implementation much easier.
  4. Rely on your retailer network. This is the time to really emphasize the partnerships you have with other retailers. Whether it’s Amazon, Walmart or Shopify, the wide reach of these brands will help your business grow further and faster. Take advantage of any programs or promotions they may offer, especially as 4th quarter approaches and the holiday season ramps up.Also, make sure that all of your store integrations are working with your inventory and warehouse management systems. You don’t want to sell products you don’t have, or not sell products you do have, and the only way to keep it straight is to ensure those connections are in line. Also, investigate the ability to add a return management process to your existing system, so that you can more easily track and resell returned products.
  5. Remarketing wins retail. You have probably heard the old adage that someone needs to see or hear something three times before they act. This is still true, and that means, you need to reach your customers or potential customers three times before you can even hope to convert the sale. Fortunately, remarketing has become one of the easiest and most effective ways to bring those “window shoppers” back into the fold.

More than likely, your current advertising platforms allow you to remarket without too much additional effort. Google and Facebook make it surprisingly easy to use these features and it can greatly impact your revenue stream. Also, never underestimate the allure of an abandoned cart. Remarketing to folks who have taken the extra step to “add to cart” is an easy way to make some sales.

Planning for the Future

By implementing some or all of the steps above, you’ll have a better chance of maintaining balance throughout this unprecedented time. And you’ll be poised for future success. It is predicted that eCommerce sales will account for 1 out of every 4 retails sales by 2025. At the height of the pandemic, it was estimated that 3 out of every 10 sales were transacted online.

While experts are not predicting that we will return to such a high number in the next year or so, it is important to realize that higher eCommerce volumes are here to stay and learning how to manage the highs and lows now will better prepare you for success in the future.

How ShipHero Helps you Grow

ShipHero’s Warehouse Management Software is a complete system that allows you to manage inventory, connect directly to all of your third-party selling channels and provides you with better pick and pack capabilities to reduce errors. ShipHero also has:

  • Order tracking
  • Label printing
  • Automation rules (AR)
  • Automation rules and Smart warehouse routing
  • Cycle counting
  • Kitting
  • Logs and reports
  • Guided pick routes
  • Automatic batch creation
  • BulkShip
  • And so much more!

Stay in Front with Backend Support

If you’re looking for the easiest and most efficient way to grow your eCommerce business, even in uncertain times, we invite you to take advantage of all ShipHero has to offer. You can find a way to stay steady even as the business landscape changes, and often the easiest way to do that is to lean on your partners with superpowers.

Schedule a meeting today with our experts to learn more about our WMS software built for ecommerce brands & 3PLs looking to run their best warehouse and how ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.

Click HERE to Schedule a Meeting Today

Aaron Rubin, Founder & CEO

ShipHero

About the author:  Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.

Follow Aaron on Twitter&LinkedIn.

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June 21, 2021

The Empty Shelf Crisis of 2022

In the subtle words of The New York Times headline, “Chaos Strikes Global Shipping”. What does it mean by that exactly?

Swing by your local department store, grocery store or electronics store, and you're bound to notice empty shelves. Previously, people blamed COVID-19 panic buyers for emptying store shelves because they stripped stores clean of essentials like toilet paper and water bottles. However, the current empty shelf crisis comes from suppliers that can’t keep up with demand due to lower production, shipping delays and labor shortages.

As a result, consumers are seeing widespread shortages of goods, from shoes to cars and everything in between. In this post, we'll take a closer look at the empty shelf crisis, the industries that are impacted the most and what the future may hold for the shipping industry.

Why Are Walmart Shelves Empty?

There are many empty Walmart shelves in 2022 because of the Omicron variant, winter storms and supply chain problems. Here's a quick dive into each of those reasons:

The Omicron Variant

The Omicron variant of COVID-19 was discovered in November 2021 and caused a new American COVID wave in early 2022. Many Walmart stores temporarily closed for deep cleaning due to rising cases, which meant people had fewer stores to shop at – ultimately resulting in empty shelves across many locations.

Winter Storms

Mid-January 2022 saw a winter storm plague much of the Southern, Mid-Atlantic and Northeastern United States. Heavy snowfall and blocked roads caused food shortages in affected areas, resulting in low stocks almost everywhere.

Supply Chain Crisis

Unfortunately, some lingering supply chain issues in 2021 carried over to 2022. Many stores have resorted to importing extra grocery items on chartered cargo ships to ease these shortages.

What Caused the Empty Shelf Crisis?

The empty shelf crisis is largely caused by the COVID-19 pandemic destabilizing the entire shipping industry. There’s some irony to this shipping crisis because, while consumer demand and spending increased, suppliers couldn’t keep shelves stocked to capitalize on these opportunities.

Why Is There a Supply Chain Shortage?

While the pandemic majorly contributed to shipping delays, other immediate factors have also directly impacted the industry:

Container Shortages

Recent shortages of shipping containers have driven up the cost of goods delivered from China. CNBC reports that this caused shipping costs to rise by 300%, and logistics companies are struggling to keep up with shifting demands.

For example, the Apple iPhone was generally shipped by air, but the container shortage forced suppliers to ship these products via sea containers. Multiplied across industries, the shift to ocean freight congested sea routes, and the issues in the Suez Canal certainly exacerbated things.

Human Resource Shortages

During the pandemic, the number of dockworkers and truck drivers decreased, causing massive delays in shipping and delivery. As a result, the gig economy stepped in, providing temporary and part-time gig workers for warehouse and fulfillment center work.

Products and Material Shortages

One of the more talked-about shortages is the microchip shortage, which limited the manufacture of new cars and many electronic devices. Other product and material shortages due to the pandemic, such as a recent deficit of aluminum, have impacted the domestic transport of canned food and soft drinks.

Suez Canal Blockage

The Suez Canal blockage is a symptom of the industry's problems as a whole. According to Bloomberg, the lack of available workers caused many loading docks to become overwhelmed, resulting in massive shipping delays.

Industries Affected by Shipping Delays

These shipping delays are wreaking havoc within the retail industry, affecting the ability of domestic shippers and 3PLs to fulfill their eCommerce orders. Many American companies are paying up to ten times the usual price of shipping products across the ocean.

The following industries have seen the most impact:

Cars

While this doesn't impact your local shelves per se, the automotive industry is being hit hard by a lack of available materials – most specifically the microchips used to control the fuel injection system, cruise control and other electronic systems aboard today's automobiles. As a result, car dealers have struggled to maintain inventory, and consumers are seeing the price of used cars increase.

Electronics

The chip shortage also impacted electronics companies, including Sony, Apple and Microsoft. A recent fire at a Japanese plant has only exacerbated this chip shortage, meaning we may see a deficit in electronic merchandise for the foreseeable future.

Additionally, a lack of reliable containers has prevented popular electronics companies from reliably shipping products such as laptops, flat-screen TVs and even cell phones.

Since Americans couldn't go on vacation during the lockdown, they typically sank their money into fancy new entertainment systems. The industry did its best to keep up, but, ultimately, the laws of supply and demand collided at the port.

Shoes

Both Steve Madden and Crocs have expressed concern about the supply chain bottlenecks happening because of the global shipping crisis. Nike usually paid $2,000 to ship a 40-foot container of sneakers. Now, shipping this same container costs $15,000 to $20,000.

Canned Foods and Beverages

The pandemic has affected aluminum manufacturers, preventing them from producing familiar brands of canned fruit and soft drinks. With transportation and logistics problems also slowing domestic shipping down, many grocery stores may not stock popular canned goods for the foreseeable future.

Cleaning Supplies

Naturally, the pandemic had us all reaching for the hand sanitizer. While the shipping issue doesn't directly impact these products, it could still be a while before the cleaning industry recovers from the demands it experienced during the height of the pandemic.

Other Industries

Many online are panicking about the Great Ammo Shortage of 2021. Plus, America hasn't been uniformly affected by the current shipping crisis, so what’s absent from the shelf of your local supermarket may vary on a weekly basis.

Meanwhile, Amazon sellers are experiencing more profits than ever before, as more people turn to online shopping during times of store shortages. If you’re selling online, don’t forget to stock up on shipping supplies so you can fulfill your orders.

What to Expect for the Rest of 2022

Industry leaders are uncertain as to when the shipping crisis will be resolved. Some problems, like the microchip shortage, are simply a matter of production, but the availability of shipping containers and reliable shipping companies may take a bit longer to sort itself out. So, what can you expect while suppliers are scrambling to meet demand?

Higher Prices

Unfortunately, consumers can expect to pay more for the products they've come to rely on. Automobiles, electronics and particular brands of shoes may be harder to come by, and when you do, you may find yourself paying a higher sticker price.

For retailers, this highlights the need for a reputable logistics company. Because shortages can play havoc with your inventory, you need 3PL software to assist in warehousing and inventory services to stay on top of product levels, re-ordering schedules and more.

The right company can ensure that you keep your word to your valued customers, providing order fulfillment during a time of increased economic instability.

Preparation for the Holiday Rush

Many retailers are giving careful consideration to how to handle the 2021 holiday rush. The time to build inventory is now, so you can be fully prepared when the season comes. The retail ecosystem is bound to look different, but if companies are diligent, they can ride out this storm and come out stronger than ever.

Focus on Supply Chain Resilience

Supply chain resilience is your ability to continue normal business activities even when your order fulfillment and supply chain are disrupted unexpectedly. With a resilient supply chain, you can weather the storm of low stock and shipping delays without too many hitches.

Work with 3PL providers to improve your supply chain resilience. For instance, Amazon FBA users often work with ShipHero for FBM to keep products in stock and offer diverse order fulfillment options.

Check out our previous blog for best practices on building your resilient supply chain.

Wrapping It Up

Suppliers have had issues both producing and transporting goods over the past year and events like the Suez Canal blockage have only added to the "chaos." Consumers should expect shortages of automobiles, canned produce, cleaning supplies, shoes and more. In these uncertain times, having a robust and resilient logistics and fulfillment network is vital to keep your consumers' trust.

That's why ShipHero provides retail brands and 3PLs with powerful capabilities to handle their shipping needs and build a resilient supply chain.

Empty Shelf Crisis FAQs

What items will be in short supply in 2022?

Due to global events like the ongoing pandemic and reduced production capacity, essential items like groceries and feminine hygiene products are predicted to be in short supply during 2022. You can also expect shortages in aluminum and advanced microchips, which means high electronic prices, as we’ve seen with the recent PlayStation 5 price hikes in certain markets.

What is causing empty shelves?

Shipping delays and low industry productivity cause empty shelves. However, factors like inclement weather and the COVID pandemic can worsen these shortages.

-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 over 5,000 brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.

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