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Stock-keeping units (SKUs) are essential for retailers. They let you track inventory quantity and stock movements without having to do physical checks every day.
But what do SKUs really do, and how do you make them? Read on for a comprehensive guide on SKUs!
A stock-keeping unit (SKU) is an alphanumeric code assigned to each of your products. They usually come in the form of scannable barcodes printed on labels. An SKU usually contains the product’s details like its price, variant, size and more.
Each product variant has a unique SKU. So, for example, you have purple and yellow T-shirts in three sizes each: small, medium and large. Each variant of these T-shirts has its own SKU, meaning you have six SKUs.
Why do you need unique SKUs for each variant? This is to prevent mix-ups during the picking process. If an SKU only registers the color, your picker might retrieve T-shirts of the wrong size.
SKUs are important for stock tracking and sales data collecting. Tracking the movement of SKUs alongside customer orders means you know what products are selling and which variants are most popular. This way, you can anticipate high demand by stocking up on popular items.
SKUs are also often used for product recommendations in online stores. Let’s say a customer puts an action movie DVD in their cart. Your system can search for similar SKUs and recommend them to other action movies. This might trigger an extra purchase and increase your profits.
SKUs and UPCs are used for similar things. They both track inventory and stock levels. But there’s one key difference.
SKUs are retailer-specific. Even if two companies sell identical items, the SKUs will be different. Meanwhile, UPCs are universal, as the name implies. The same product will have the same UPCs across all retailers.
SKUs are more flexible than UPCs because they can either be printed in text or as a barcode. Meanwhile, UPCs can only be printed as a barcode. This means humans can easily read SKUs, while UPCs need a barcode scanner.
You can create SKU numbers by splitting an alphanumeric string into different parts and defining each of them. Let’s take a look at the steps to create a SKU number:
What does an SKU number look like? Here’s an example SKU for an item sold at a clothing retail store:
Here’s the code broken down:
As you can see, the SKU system defines everything about the item to its most minute details. By reading the code, a picker can tell it’s a small yellow Style 01 jacket. They can also tell this is the first jacket of that type in the warehouse. From this information, they can send out the right item when a customer orders it.
Now that we’ve learned what SKUs are and how to make them, it’s time to learn their uses. There are five major uses of SKUs in businesses.
SKUs can track which items are selling and which ones aren’t. This helps you anticipate customer demand by purchasing more or less of certain products.
You can use SKU tracking data to predict which items might be top sellers so you can order more and maximize revenue. Conversely, you can reduce orders on items that aren’t selling well to prevent overstocking. Keeping inventory levels manageable also lets you save money on storage space.
SKUs don’t just give you insight into inventory. You can glean some behavioral insights, like learning which items are often bought together. This way, you can consider selling them as a package to further drive sales.
SKU barcodes make inventory management easier through real-time tracking. As products arrive and leave your warehouse, your staff will scan their barcodes. This lets you monitor the stock levels of each item you have, even if you have multiple fulfillment centers.
More advanced warehouse management systems will even alert you when items are low in stock. By setting reorder points, you can prevent your most popular products from running out of stock. This prevents customers from shopping from other stores if something isn’t available.
SKUs organize your products so your warehouse team can easily find them. This means they can pick and pack goods faster, decreasing customer wait time. Faster deliveries mean happier consumers. This is especially important if you promise two-day delivery for your products.
Some eCommerce retailers use SKUs when advertising their products. They use this to ensure customers view the items they’re selling.
SKUs also work as an anti-poaching measure. When you promote a product based on its SKU, competitors can’t easily see which products you’re promoting because SKUs aren’t usually public. This makes customer poaching with lower prices and discounts tougher.
SKUs categorize items to make product recommendations easier. Your eCommerce platform can upsell or cross-sell other products to your customers based on what items they have in the cart.
Product recommendations usually show up on the checkout page just before people get their credit cards out. It can also “save” a sale by recommending similar products when the product a customer wants is out of stock.
SKUs don’t just help your pickers retrieve the right items. You can use SKU information for a variety of purposes, like behavioral analytics, demand prediction and product recommendations.
However, managing hundreds of SKU codes isn’t easy. You might need inventory management software to reliably handle all of them.
A barcode isn’t an SKU by itself. A SKU can be converted into a barcode, but barcodes can contain a variety of information.
A good SKU needs to contain the key details of a product without being overly long. Some essential details to include are size, color, category and order it arrived in the warehouse.
SKUs are used in eCommerce in many different ways. Some of the more popular uses include inventory management, product recommendations and analysis.
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A 3PL Warehouse Management System (WMS) is a software solution that helps companies manage and optimize their warehouse operations. It provides a centralized platform for handling tasks such as inventory management, order fulfillment, shipping, and receiving.
It’s an essential tool for third-party logistics providers that lets them efficiently manage their clients' warehouse operations.
A key challenge third-party logistics providers face is managing the vast amount of inventory stored in their warehouses. The 3PL Warehouse Management System addresses this challenge by providing a comprehensive set of tools and functionalities to effectively manage and control warehouse operations.
At its core, the 3PL WMS is a software application that integrates with the existing warehouse infrastructure and automates various processes like inventory management, order fulfillment, and shipping. It provides real-time visibility into inventory levels. And it helps logistics providers optimize storage space and ensure accurate stock levels.
Moreover, the 3PL WMS enables efficient order processing by automating tasks like order picking, packing, and labeling. It provides warehouse staff with detailed instructions on how to fulfill each order, and this minimizes errors while improving overall productivity.
Another key feature of the 3PL WMS is its ability to track and trace goods throughout the warehouse. By using barcode scanning or RFID technology, the system can accurately track the movement of inventory from the moment it arrives at the warehouse to the moment it leaves for delivery.
Furthermore, the 3PL WMS offers advanced reporting and analytics capabilities. They can generate reports on key performance indicators like order accuracy, on-time delivery, and inventory turnover. This helps businesses identify areas for improvement.
In addition to these core functionalities, the 3PL WMS can be customized to meet the specific needs of different industries and clients. For example, it can support temperature-controlled storage for perishable goods or provide specialized picking algorithms for eCommerce fulfillment.
In conclusion, the 3PL Warehouse Management System is a powerful tool that enables third-party logistics providers to efficiently manage their clients' warehouse operations. By automating key processes and providing real-time visibility into inventory, the system helps improve productivity, accuracy, and customer satisfaction. It’s an indispensable asset for logistics providers in today's complex and competitive business environment.
To further understand the scope and benefits of third-party logistics, explore our detailed guide on 3PL services, which highlights how these services streamline operations and enhance efficiency.
Implementing a 3PL Warehouse Management System can bring numerous benefits to a company.
Firstly, it provides real-time visibility into stock levels and locations to reduce the risk of stockouts and minimize excess inventory.
Secondly, a 3PL WMS improves order fulfillment efficiency by automating processes like order picking and packing. This leads to faster order processing times and improved customer satisfaction.
Additionally, a 3PL Warehouse Management System lets companies optimize their warehouse space utilization. By providing insights into optimal storage locations and recommending efficient picking routes, it maximizes the storage capacity and minimizes unnecessary movement.
Lastly, a 3PL WMS enhances supply chain visibility by providing real-time tracking and reporting tools. This lets companies monitor the flow of goods, identify bottlenecks, and make data-driven decisions to improve overall efficiency.
Ecommerce businesses require specialized inventory management solutions to meet the dynamic demands of online retail. Learn more about ecommerce inventory management software that complements 3PL WMS for seamless integration and enhanced efficiency.
A good 3PL Warehouse Management System offers a range of features to support warehouse operations. These features include:
Choosing the right inventory management software is crucial for optimizing warehouse operations. Discover the best inventory management software options that can seamlessly integrate with 3PL WMS to provide comprehensive inventory control.
When considering a 3PL Warehouse Management System, it's important to assess the specific requirements of your business. Some key considerations include:
A key advantage of a 3PL Warehouse Management System is real-time visibility into warehouse operations.
Companies can access up-to-date information on inventory levels, order statuses, and overall performance at any time so businesses can quickly identify and address bottlenecks.
Following these steps will help you carefully plan and integrate a 3PL Warehouse Management System:
When choosing a 3PL Warehouse Management System, it's important to consider the following factors:
The cost of a 3PL Warehouse Management System can vary depending on factors like the size of your business, the features you want, and the vendor you choose. Some vendors offer pricing models based on the number of users or the volume of goods processed. Request quotes from different vendors and consider the long-term ROI when evaluating the cost of a 3PL WMS.
A 3PL WMS helps companies manage and optimize warehouse operations, including inventory management, order fulfillment, and reporting.
A 3PL Warehouse Management System can improve inventory accuracy, order fulfillment efficiency, warehouse space utilization, and supply chain visibility.
Key features include inventory tracking and management, order management, picking and packing optimization, real-time reporting tools, and system integration capabilities.
The cost varies depending on factors like the size of the business, desired features, and the vendor chosen. It's important to request quotes and consider long-term ROI.
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If you're looking for the best 3PL companies in Canada, you've come to the right place. This article will introduce you to some of the top players in the industry and provide valuable insights into the world of third-party logistics in Canada.
Before going into the specifics, it’s important to understand what third-party logistics or 3PL is.
In simple terms, 3PL refers to the outsourcing of supply chain management functions to a specialized company. These companies handle various aspects of logistics like transportation, warehousing, and distribution on behalf of their clients.
By entrusting their logistics operations to a 3PL provider, businesses can focus on their core competencies while benefiting from the expertise and resources of the 3PL company. It's a win-win situation that has gained popularity across industries.
In the transportation arena, 3PL providers play a crucial role ensuring the smooth movement of goods from one location to another. They have extensive networks of carriers and can negotiate favorable rates that save their clients money. Additionally, 3PL companies have the expertise to optimize routes, track shipments in real-time, and handle any unexpected issues that may arise during transit.
Warehousing is another area where 3PL providers excel. Most have strategically located warehouses equipped with state-of-the-art technology and systems to efficiently store and manage inventory. This helps businesses reduce their warehousing costs and benefit from extra scalability and flexibility. With advanced inventory management systems, businesses have real-time visibility into their stock levels, ensuring timely replenishment and minimizing stockouts.
And beyond transportation and warehousing, 3PL provider services can include order fulfillment, packaging, labeling, and even customer support. By leveraging these additional services, businesses can enhance their overall supply chain operations and improve customer satisfaction.
A key advantage of partnering with a 3PL provider is access to their expertise and industry knowledge. 3PL companies are always up to date on the latest trends, regulations, and best practices in logistics. They can provide valuable insights and recommendations to optimize supply chain processes across many industries.
Another benefit of working with a 3PL provider is scalability. With a 3PL partner, businesses can easily scale up or down their logistics operations without significant investments in infrastructure or resources. They can adapt quickly to market demands and seize new opportunities.
In conclusion, third-party logistics, or 3PL is the outsourcing of supply chain management functions to specialized companies. These companies handle transportation, warehousing, and distribution on behalf of their clients, letting businesses focus on their core competencies. 3PL providers offer expertise, cost savings, scalability, and value-added services, making them an attractive option for businesses across industries.
To have a better understanding of how 3PL companies operate and the diversity of services they offer, consider reading our comprehensive overview of 3PL companies, which provides insights into selecting the right partner for your logistics needs.
In Canada, the 3PL market is vibrant and competitive. With its vast geographical area and robust trade relationships, the country presents numerous opportunities for logistics companies.
Canadian 3PL providers offer a wide range of services, catering to industries like retail, e-commerce, manufacturing, and healthcare. From managing inventory and order fulfillment to overseeing transportation networks, these companies play a vital role in the supply chains of businesses across the country.
The 3PL market in Canada is constantly evolving to meet the changing demands of businesses. As companies seek to optimize their supply chains and provide seamless customer experiences, the role of 3PL providers becomes increasingly important.
A Key factor driving this growth is the rapid expansion of e-commerce. As more and more Canadians turn to online shopping, businesses need efficient and reliable logistics solutions to fulfill customer orders quickly and accurately.
Canadian 3PL companies offer a comprehensive range of services to meet the specific needs of their clients. Common services include:
These services can be tailored to suit small startups, large corporations, and everything in between. By leveraging the expertise of 3PL providers, companies can streamline their operations and gain a competitive edge in the market.
To explore the specific services provided by third-party logistics providers and how they can transform your supply chain, explore our detailed discussion on 3PL services, offering a closer look at how these services streamline operations for businesses of all sizes.
Partnering with a 3PL company in Canada offers several benefits for businesses:
Overall, partnering with a 3PL company in Canada is transformative for businesses, offering a pathway to reduce operational costs, enhance efficiency, achieve scalability, maintain a focus on core business areas, and leverage expert insights.
These combined benefits create a formidable foundation for businesses to thrive and expand in the highly competitive Canadian marketplace.
Small and medium-sized enterprises seeking to capitalize on these benefits should explore our detailed guide on 3PL for small businesses. This resource is tailored to help smaller companies understand how to effectively utilize 3PL partnerships to enhance their logistics operations and support growth.
Several 3PL companies in Canada stand out for their industry expertise, reliability, and customer satisfaction::
Each of these 3PL companies in Canada brings its unique strengths to the table, from extensive national networks and fast delivery capabilities to specialized services and global reach. Choosing the right 3PL partner depends on a business’s specific logistics needs, growth goals, and the strategic value the 3PL can provide in facilitating efficient and effective supply chain operations.
If you're considering partnering with a 3PL company in Canada, here are a few steps to get started:
In conclusion, the best 3PL companies in Canada offer a range of services to optimize supply chains and fulfill the unique logistics needs of businesses. By partnering with a reputable 3PL provider, businesses can unlock new efficiencies, lower costs, and gain a competitive advantage in the Canadian market.
The cost of 3PL services in Canada varies based on factors such as the scope of services required, volume of shipments, and industry-specific needs. It's best to request quotes from multiple providers to get an accurate estimate.
Absolutely. 3PL providers offer scalable solutions, making them suitable for businesses of all sizes. Small businesses can leverage the expertise and resources of 3PL companies to optimize their logistics operations and compete more effectively in the market.
Choosing the right 3PL partner requires careful consideration. Look for companies with experience in your industry, a strong track record, and the ability to meet your specific requirements. Conducting thorough evaluations and interviews will help you gauge compatibility and make an informed decision.
Yes, many 3PL providers in Canada can handle international logistics. They can handle customs clearance, freight forwarding, and global transportation, ensuring a smooth flow of goods across borders.
Absolutely. Many 3PL companies in Canada specialize in niche industries, such as healthcare and pharmaceuticals. They have the necessary certifications, infrastructure, and experience to ensure compliance with industry regulations and safely handle critical goods.
Many businesses turn to third-party logistics (3PL) companies for their shipping, warehousing, and fulfillment needs, but it can be overwhelming to choose the right 3PL provider for your business with so many available options. Any of these five 3PL companies would be a great place to start:
If you know what a 3PL is and why you might need it, then you have five places to start your search. If you don’t know much about 3PLs, keep reading.
Third-party logistics refers to the outsourcing of logistics activities to a specialized company. These companies handle tasks such as transportation, warehousing, inventory management, and order fulfillment on behalf of their clients. By partnering with a 3PL provider, businesses can streamline their supply chain processes and focus on their core competencies.3PL companies offer a wide range of transportation services. They generally have a network of carriers and can negotiate favorable rates for shipping goods. By road, air, rail, or sea, these companies have the expertise to ensure that products reach their destination efficiently and on time. They also handle all the necessary documentation and customs clearance, taking the burden off the businesses.Warehousing is another crucial aspect of logistics that 3PL companies excel in. They have strategically located warehouses equipped with the latest technology and infrastructure to store goods safely and efficiently. These warehouses are often equipped with advanced inventory management systems that allow businesses to track their inventory in real-time. This ensures that businesses always have visibility into their stock levels and can fulfill customer orders promptly.Inventory management is a complex task that requires careful planning and execution. 3PL companies have dedicated teams that specialize in managing inventory. They use sophisticated software systems to track stock levels, monitor expiration dates, and optimize storage space. By outsourcing this function to a 3PL provider, businesses can minimize the risk of stockouts and reduce carrying costs.Order fulfillment is the final step in the logistics process, and 3PL companies play a crucial role in ensuring orders get delivered accurately and on time. 3PL companies often have efficient order processing systems in place to handle everything from picking and packing to labeling and shipping. With their expertise, businesses can provide their customers with a seamless and reliable order fulfillment experience.Overall, partnering with a 3PL provider offers numerous benefits for businesses. It lets the business tap into the expertise and resources of a specialized logistics company, optimize their supply chain, and improve customer satisfaction. By outsourcing logistics activities, businesses can focus on their core competencies and gain a competitive edge in the market.If you're new to the concept of third-party logistics and curious about the breadth of services they offer, our comprehensive overview on 3PL services breaks down everything from warehousing to order fulfillment, equipping you with the knowledge to make informed decisions.
3PL companies come in all shapes and sizes, offering a wide range of services to cater to different business needs. While some 3PL providers specialize in specific industries or regions, others offer comprehensive solutions that can be tailored to any business. The top 5 best 3PL companies on our list have proven track records, extensive networks, and a reputation for delivering exceptional results.
eCommerce businesses, retailers, manufacturers, and distributors are among the industries that commonly use 3PL providers. Startups and small businesses often choose 3PL companies to handle their logistics needs so they themselves can focus on growth and core competencies. Larger corporations also benefit from outsourcing logistics tasks; they can streamline their operations and gain access to specialized expertise. Startups and small businesses often face unique challenges in logistics and supply chain management. Dive deeper into how a 3PL can be a game-changer for small businesses by visiting our detailed guide on 3PL services for small businesses, offering insights to streamline your operations and focus on growth.
The top 5 best 3PL companies mentioned above excel in certain core competencies that set them apart from their competitors. These core competencies include:
When choosing a 3PL provider, it is crucial to consider their fulfillment center locations and warehousing capabilities. The top 5 best 3PLs above have strategically located warehouses across the country, allowing for faster and more cost-effective shipping. These companies have invested in state-of-the-art warehousing facilities that prioritize efficiency, security, and scalability.
eCommerce businesses rely heavily on effective supply chain management to ensure timely order fulfillment. The top 5 best 3PL companies integrate seamlessly with popular eCommerce platforms such as Shopify, WooCommerce, and Amazon. They also support multiple sales channels, including marketplaces like eBay and social media platforms. By leveraging the capabilities of these 3PL providers, eCommerce businesses can enhance their customer experience and boost sales.
When selecting a 3PL provider, consider their track record of customer satisfaction. The top 5 best 3PL companies have a proven history of delivering a high level of service and exceeding customer expectations. They have earned positive reviews and testimonials from their clients, showcasing their commitment to excellence.
If you decide to partner with a 3PL provider, the onboarding process is generally straightforward. It typically involves:
By following these steps, you can start leveraging the benefits of 3PL services and optimizing your supply chain management.
While selecting a 3PL provider, avoid these common mistakes that can lead to poor service or unsatisfactory results:
By being aware of these common mistakes, you can make an informed decision and select a reliable and suitable 3PL provider.
The cost of 3PL services can vary depending on the volume of shipments, storage requirements, and the complexity of logistics operations. 3PL providers typically use a pricing structure that includes fixed costs like warehousing fees, and variable costs based on the services used. Carefully review the pricing details provided by potential 3PL providers so you know it aligns with your budget.
In conclusion, partnering with a reputable 3PL company can significantly optimize your supply chain and enhance your overall business operations. The top 5 best 3PL companies stand out due to their extensive networks, advanced technology, superior customer service, and customizable solutions. When choosing a 3PL provider, consider factors such as industry expertise, technology capabilities, and customer satisfaction. By avoiding common mistakes and understanding the pricing structure, you can make an informed decision and select the right 3PL provider for your business.
3PL stands for Third-Party Logistics. It refers to the outsourcing of logistics and distribution by companies to third-party firms that specialize in warehousing, transportation, and fulfillment services. These third-party providers manage all or a significant portion of a company's logistics functions, allowing businesses to focus on other areas without the need for extensive logistics infrastructure or expertise.
While it is not mandatory, utilizing a 3PL company can provide numerous benefits, particularly for businesses that require efficient supply chain management.
Consider factors such as reputation, industry expertise, technology capabilities, and customer satisfaction when selecting a 3PL provider. Additionally, ensure their services align with your specific business needs.
One missed check can cost you thousands of dollars. You may have a damaged pallet, a missing fire extinguisher, or a skipped safety step that can put your team at risk.
Warehouse daily checklists serve as a pilot’s pre-flight checklist. Before takeoff, every switch, lever, and system is checked. Why? Because skipping one step can lead to serious problems. The same goes for your warehouse.
Without a solid checklist, you risk delays, missed shipments, or worse, accidents and safety violations. A checklist ensures your team follows the right procedures and nothing falls through the cracks.
Here’s everything you need to include in a warehouse daily checklist, its definition, and templates you could use to get started fast.
A warehouse daily checklist is a structured form that helps warehouse staff systematically inspect, verify, and record essential tasks on a daily basis. It covers all the daily to-dos that keep your warehouse operations running smoothly and safely, such as inventory tracking and forklift inspections.
The warehousing and storage industry reported an injury rate of 4.8 per 100 full-time workers, nearly double the national average of 2.7. Following a daily warehouse checklist ensures the right procedures and safety protocols are followed and nothing important gets missed.
A great warehouse daily checklist supports the safety of your warehouse, reduces errors, and keeps your workflow on point. Here’s how to make a checklist that your warehouse workers will actually use and benefit from.
Every component of your checklist ensures your facility, staff, and inventory remain safe, compliant, and productive.
Common components include:
Instructions should be clear and structured to help your team move through inspections efficiently and consistently.
Your daily warehouse checklist doesn’t have to be very detailed and complicated. It needs to be thorough, practical, and easy to follow.
Here’s how to build a great one:
When your checklist comprehensively details the tasks in a concise manner, it becomes a tool that delivers massive impact. This ensures your warehouse operations run smoothly, safely, and efficiently.
Ready to skip the setup and just get started? Feel free to copy our Warehouse Daily Checklist Template to your Google Docs or Microsoft Word document. It’s accessible, user-friendly, and 100% customizable to your needs.
Simply plug in your specific details, and you’re set. It’s built to save time, support compliance, and help you manage your daily workflow like a pro.
ShipHero’s Warehouse Management System (WMS) boosts warehouse efficiency by automating key processes like inventory tracking, order picking, and shipping. By streamlining these workflows, it reduces manual labor, minimizing errors and delays.
The system’s real-time data updates allow staff to make quick, informed decisions, improving overall productivity. Customizable features enable businesses to adapt ShipHero to their specific operational needs, further enhancing efficiency. With ShipHero, warehouses can achieve faster turnaround times, reduced costs, and improved accuracy.
Review a warehouse daily checklist, weekly, or monthly to maintain accuracy and relevance. Frequent reviews help align the checklist with workflow changes, new safety protocols, or operational updates.
Yes, you can customize a warehouse daily checklist template. Most templates are designed to be modified based on team size, warehouse layout, and operational goals. Customization improves relevance and usability across different warehouse environments.
Yes, basic instruction and simple training on how to use the checklist ensure employees understand how to follow the checklist, report issues, and meet safety or performance standards. Training improves consistency and accountability across shifts.
While your team is still walking aisles, your competitors are cutting pick times in half with automation. Guess who’s shipping faster and stealing market share?
Automation isn't the future anymore. It's the present. For growing eCommerce brands or fulfillment centers under pressure to deliver faster, cheaper, and more accurately, automated warehouse picking systems are no longer a luxury. They're a necessity.
In this guide, you'll learn how automated picking systems work, the types available, how to choose the right one, and how ShipHero can help you streamline fulfillment processes with confidence.
Automated warehouse picking systems use software, robotics, and real-time data to locate, retrieve, and prepare items for shipment, without relying solely on human labor. Instead of employees walking long distances and manually selecting items, automated systems bring items to workers or direct them with tools like lights, voice commands, or mobile robots.
For example, in the eCommerce space, brands use Goods-to-Person (GTP) systems to increase operational efficiency and efficiently handle large catalogs of SKUs. In retail, where seasonal order surges can overwhelm manual processes, automated solutions help companies double their picking speed and maintain consistent fulfillment even during peak demand.
The process is surprisingly seamless:
This flow is driven by smart software that integrates with warehouse management systems and supports key warehouse processes, including picking, packing, and tracking real-time inventory.
Want a deeper look at the tech behind it? Read this guide on warehouse automation software.
There’s no universal solution for warehouse automation. The best picking system depends on your space, order volume, and the variety of products you offer. Some work better for high-SKU, high-volume operations; others are ideal for smaller, more focused setups. Below, we break down the top systems and which warehouse types they’re best suited for.
GTP systems deliver inventory directly to a stationary picker, eliminating walking marathons. This setup enhances inventory management, reduces physical strain on workers, and improves worker safety.
It also optimizes order accuracy by minimizing human error. By minimizing walking time and keeping pickers in one place, GTP systems significantly boost pick rates while also cutting down on labor fatigue.
Pick-to-Light is an automated solution that uses LED light bars to guide workers to the right location for picking items, enhancing accuracy, speed, and efficiency while reducing errors.
When paired with Pack-to-Light and Receive-to-Light, your entire workflow is streamlined. Pack-to-Light ensures precise packing, while Receive-to-Light optimizes inventory storage and retrieval. Together, these technologies simplify inventory management, reduce labor costs, and accelerate fulfillment.
At ShipHero, we offer all three solutions, Pick-to-Light, Pack-to-Light, and Receive-to-Light, under one roof, seamlessly integrating with your existing systems to optimize warehouse operations. The combination can help boost efficiency by 20% while also cutting costs by up to 30% for batches of 10 to 30 orders.
Pickers wear headsets and follow voice commands to locate items, like a GPS for your warehouse. This hands-free approach automates repetitive tasks, shortens training time, and reduces picking errors, even in noisy environments. It also improves accuracy, even in noisy environments where traditional methods might fall short.
AMRs, or autonomous mobile robots, navigate the warehouse floor independently, delivering items or bins to human workers or packing stations.
Unlike fixed systems, AMRs offer greater flexibility and adapt to varying warehouse sizes, support scalable operations, and offer the flexibility to grow without major infrastructure changes. They’re also highly scalable, which makes them a smart choice for warehouses looking to grow or adjust operations without major infrastructure changes.
These are high-tech racking systems equipped with robotic cranes or shuttles that automatically store and retrieve inventory. They’re especially well-suited for large warehouses with high inventory turnover, where speed and space efficiency are critical.
Businesses that need to maximize vertical storage find these systems invaluable, and industries such as pharmaceuticals, automotive, and electronics often benefit the most from their precision and scalability.
Still not convinced? The real-world benefits speak for themselves. Automation significantly reduces human error, particularly in fast-paced warehouse environments where accuracy is crucial. It also speeds up fulfillment, often cutting pick times in half or more.
By streamlining operations, businesses can lower labor costs by either reducing headcount or reassigning team members to more valuable tasks.
By transitioning to automation, companies often see dramatic improvements in efficiency and cost savings. For example, automation can reduce warehouse labor costs by up to 60%, allowing businesses to reallocate resources and scale more effectively.
It’s not always smooth sailing when implementing automated picking systems. One of the biggest hurdles is the high initial investment, as hardware, software, and integration can come with a steep upfront cost.
Staff training is another challenge, as teams need time to learn how to use the new technology effectively. There can also be short-term disruption; installation and onboarding may temporarily slow down operations. But the long-term gains are often worth it.
For example, James Enterprise struggled with paper-based picking and processing delays before switching to ShipHero’s Warehouse Management System.
The transition required workflow changes and staff training, but with proper planning, such as going paperless, reorganizing their layout, and utilizing smart pick paths, they boosted productivity by 38%. New hires cut their pick time from 55 to 34 seconds in just five days, proving that smart automation pays off.
Finding the right automated picking system starts with understanding your specific needs. Warehouse size plays a big role, as larger spaces often benefit most from solutions like AMRs or AS/RS that can cover more ground efficiently. If your business manages a high variety of SKUs, systems like GTP or voice picking can offer the flexibility and accuracy you need.
For those working with tighter budgets, starting with light-based or voice-guided systems can provide a solid foundation without breaking the bank. Regardless of your starting point, scalability is crucial; your system should be able to grow in tandem with your business. Partnering with ShipHero ensures you get expert, customized guidance and future-proof solutions designed specifically for your operation.
Implementing warehouse picking automation isn’t just about installing new tech; it’s about doing it strategically. To get the most out of your investment and avoid common pitfalls, follow these proven best practices:
Best Practices for Successful Warehouse Picking Automation
For example, Black Wolf Nation and its 3PL arm, ONE23 Fulfillment, partnered with ShipHero to scale their operations. By adopting ShipHero's warehouse management software, they increased their order volume from 10,000 to over 25,000 per month in less than a year. This strategic implementation allowed them to efficiently manage growth and expand into the 3PL space.
Most companies see a return on investment within 12 to 24 months, depending on the system and order volume.
Yes. Many automated systems are designed to be scalable and cost-effective, which makes them ideal for small warehouses. Solutions like Pick-to-Light and voice picking can start small and expand as your operation grows.
Yes. Advanced systems feature adjustable grippers, sensors, and packaging logic to safely handle delicate or irregularly shaped products.
Warehouse management systems make daily warehouse operations efficient. And wave planning is at the heart of it.
As part of the supply chain industry where efficiency is of utmost importance, the fast-paced environment of warehouse management requires every aspect of operations to work on schedule. This is where wave planning comes into play and brings efficiency to the table.
It integrates with warehouse management systems and streamlines end-to-end warehouse operations to meet customer expectations of fast shipping and real-time updates.
Wave planning batches orders for optimized picking routes, shipping, and priority. It supports operational workflows and integrates with warehouse wave picking strategies to maximize productivity, reduce errors, and improve overall daily warehouse output.
This turns warehouse operations into an organized process of handling and systematizing hundreds of orders a day.
Applying the best practices for wave management allows for maximum efficiency in managing daily warehouse operations. Start with these:
Not all orders need to be shipped at the same time. Some can wait, others can’t. Strategic planning means prioritizing orders based on shipping deadlines to ensure they are shipped out and delivered on time. This increases customer satisfaction and overall operational efficiency. To better understand the core workflows that make this strategy effective, explore how we have explained the six key warehouse processes.
Accessing real-time data allows you to monitor every wave that’s happening, from orders getting picked up to those that are delayed. This lets you take action accordingly, especially when spotting issues as they are happening.
Downtimes are red flags in wave management. They are equal to unproductivity and possible shipment delays, both affecting operations to meet quotas and customer satisfaction.
Reduce idle time in operations with these methods:
High-demand periods like holidays, promotions, and occasional spikes can cause chaos, especially if you don’t have a plan in place. That chaos can overwhelm your normal operations and lead to delays and unsatisfied customers.
Avoid this by ensuring scalability for peak periods with effective wave planning:
If you’re preparing your warehouse for high-volume fulfillment, it may be worth exploring how automated warehouse picking systems can make wave execution more efficient and adaptable.
Warehouses have different zones to which pickers are assigned.
Having specific picking zones gives structure to the picking process, making it easier to execute even through high-volume orders.Having defined picking zones helps:
Wave management gives you the flexibility to adapt quickly when an unexpected change occurs during operations.
A common issue often faced in wave management is the sudden changes in order volume. This disrupts the flow of current waves and may have an avalanche effect on the whole operation if not solved immediately.
Here’s how wave management adjusts operations to meet demand fluctuations:
A warehouse management system creates an overall plan that controls the flow of a warehouse's production. Using tools and automation, a WMS simplifies and streamlines wave management to execute warehouse operations from fulfillment to packing and delivery.
The main difference between wave planning and wave management is that the former is where the strategizing happens, while the latter is the execution and overseeing that the plan takes place.
Wave planning is the strategic part of grouping what orders should be fulfilled together, setting the time for wave releases, and adjusting them based on warehouse capacity and labor availability.
Wave management is the main operational part where the production happens. It tracks the real-time progress of wave execution to ensure things are running smoothly according to plan.
The main difference between digital and wholesale waves lies in their order size, wave planning, and operational goal. Due to their differences, each wave type requires different planning and strategy.
Digital waves service the B2C channel, are high in volume, and often have small, single-item orders that require urgent or same-day deliveries. The wave strategy used is frequent and short for flexibility. For this wave type, warehouse managers use WMS-integrated mobile devices for tech support
Meanwhile, wholesale waves are for bulk orders, often for retail distribution, resellers, or B2B supply chains. Wholesale waves have a lower order volume with large shipments and more flexible timelines.
Yes, it can be used if they have large volumes of orders per day, orders with time-blocked pickups, or group orders with shipping deadlines.
Yes. eCommerce and retail, grocery and food distribution, healthcare and pharmaceutical, industrial supply, and consumer packaged goods industries are industries that benefit from wave planning. These are industries with high order volume, delivery sensitivity, and high operational complexity.
Yes, wave management is designed to make warehouse operations, including same-day shipping, possible. Wave management creates a structure that speeds up the order fulfillment, speeding up the process for all warehouse operations, such as same-day shipping.
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