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What is a Fulfillment Center & How Can It Help Your Business Grow?

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Fulfillment centers, also known as 3PLs, provide a great option to expand your fulfillment capabilities. ShipHero Fulfillment provides an easy outsourced fulfillment option without the need to engage with a 3PL directly if you're running a Shopify store and are looking for simple fulfillment services.Online shopping has made it easier than ever for consumers to find the products they want at the best price. As brick-and-mortar stores slowly fade into the background, eCommerce stores are taking advantage of nearly limitless scalability and a worldwide customer base.Though the convenience of online shopping is a major draw for many consumers, a positive customer experience is still vital for success. If purchases take too long to process or if shipments are delayed, your business could suffer and you may lose potential repeat customers. Rather than limiting your inventory to prevent backups and shipping mishaps, consider using a fulfillment center to manage your store’s inventory. These companies help your business deliver global eCommerce order fulfillment.Fulfillment centers, also known as third-party logistics companies (3PLs), provide a great option to expand your fulfillment capabilities. If you’re an eCommerce merchant selling products on Amazon or another eCommerce platform, a fulfillment center handles all the order processing for you. They’ll receive the order, prepare it for shipping and get the order delivered to the customer. ShipHero Fulfillment provides an easy outsourced fulfillment solution for many eCommerce merchants running on a variety of marketplaces including Shopify, WooCommerce and more. In this article, we’ll explore fulfillment centers as a convenient option for online merchants. You’ll learn what a fulfillment center is, how it compares to warehousing and the specific benefits of using a fulfillment center. We’ll also provide helpful tips for choosing the right fulfillment center for your business. Another option if you’re looking to outsource your shipping is to use a fulfillment service, a new option for using a fulfillment platform to manage and ship your orders without engaging with a fulfillment center directly. We’ll add an article that details more about this and how you could use Shopify store fulfillment.

What is a Fulfillment Center?

A fulfillment center is a location, typically a large building, that fulfills eCommerce retail orders. A fulfillment center handles the entire order process, from picking and packing to shipping. Without a fulfillment center, an eCommerce retailer must take items from their inventory, pack them and send them through a shipping carrier to the customer. If you run an especially popular business, you may be swamped with orders and spend most of your valuable time processing shipments instead of developing your business.Not just that, but more orders mean a larger chance of human error in the shipping process. If your team loses focus because they’re overwhelmed, they may make mistakes that result in unhappy customers. To prevent errors and save valuable resources, third-party logistics companies often offer fulfillment center access to their clients.

What are the 3 Types of Fulfillment Centers?

Three main types of fulfillment centers serve different purposes and cater to varying business models:

  • Traditional Fulfillment Centers: Ideal for bulk storage and shipping, often serving wholesalers or B2B businesses with large inventory volumes.
  • eCommerce Fulfillment Centers: Specialized for online retailers, focusing on fast processing and shipping of individual consumer orders with seamless platform integration.
  • Specialty Fulfillment Centers: Specialized facilities like temperature-controlled warehouses, designed for unique products such as fragile, perishable, or oversized items for specialized handling and shipping to maintain product quality.

The global e-commerce fulfillment market is expected to grow from $141.35 billion in 2025 to $468.44 billion by 2034, so having the right type of fulfillment center is more important than ever to stay competitive and meet evolving customer expectations.

How Do Fulfillment Centers Work?

Fulfillment centers work by storing your inventory so your 3PL’s team can process orders whenever they come in. Here’s a quick overview of how fulfillment centers process your orders:

  1. You receive customer orders, which will then be forwarded to your 3PL provider.
  2. The fulfillment center team picks the ordered items from storage for packing.
  3. The shipping carrier accepts the ordered items and delivers them to the customer.

The general process is similar to doing it yourself, but fulfillment centers do it at a larger scale to take the burden off your hands. Fulfillment centers are generally more experienced in fulfilling orders, so they can do it more efficiently.Fulfillment centers can process business-to-business (B2B) and business-to-customer (B2C) orders cost-effectively. B2B orders are usually shipped to the client’s shop or storage, while B2C orders are shipped to the customer’s residence.

Understanding the Challenges of Online Stores

Online stores provide customers access to a wide range of products they might not have access to in traditional brick-and-mortar stores, depending on their location. By shopping online, consumers also can compare prices. However, online shopping is about more than just finding the best price; it's also about efficient shipping and an overall positive customer experience.On the seller’s side, online shopping opens up a whole new customer base that isn’t limited to a specific region. Though this creates the potential for much higher sales margins, it does come with a few challenges. Overselling, for example, is a common problem among online merchants. This happens when the merchant receives more orders for an item than they have the inventory to fulfill. They are then forced to contact their customers to tell them that the item is out of stock or shipping will be delayed. Both options can lead to low customer satisfaction levels and potential lost sales.All it takes is one angry customer to write a bad review that could dissuade other customers from buying your products.In addition to overselling, many online merchants encounter specific shipping issues such as mispicks and misships. A mispick happens when the merchant selects the wrong product for an order, and a misship occurs when the wrong item is sent to the customer. Both of these situations result in returns. Plus, there's a high probability that the customer will simply cancel the order instead of waiting for the correct item to be sent.The larger an online business's inventory, the higher the risk for problems. It might be time to consider a fulfillment center if you're currently trying to manage your inventory directly and experiencing these and other issues.

Fulfillment Center vs Warehouse: Comparison

The term fulfillment center is often used interchangeably with warehouse, but the fact is that they are different. Both are large buildings used to hold business inventory, but the services offered can differ.A warehouse is a long-term storage solution used to store products for an extended period. In many cases, a warehouse is an industrial space designed to house inventory items in bulk. If you were to walk into an inventory warehouse, you'd see products being moved by a forklift on large pallets stacked high with large quantities of similar products. Warehouses are primarily used by wholesalers and businesses that fulfill B2B orders.Generally speaking, a warehouse is usually the best option for retailers that have a diverse inventory and stock large quantities of products. Large retailers sometimes have the capital to purchase warehouse space, but leasing is usually the most cost-effective option for small and mid-sized retailers. For small businesses, renting a storage unit is sometimes the best option.A fulfillment center performs some of the same roles as a warehouse but with additional services. In addition to storing inventory, a fulfillment center will fulfill customer orders. When an order is placed through an eCommerce store, the order is forwarded to the fulfillment center, where the inventory is picked and boxed up, then labeled for shipment and sent to the customer.Using a fulfillment company means outsourcing order processing which takes the burden off your shoulders and lets you focus on other areas of your business.

How Does a Fulfillment Center Compare to a Warehouse?

Despite their surface similarities, fulfillment centers and warehouses offer different services. Here’s a look at three elements that set fulfillment centers apart from warehouses.

Long-term vs. Short-term Storage

Warehouses are designed for long-term storage, where your items are kept for months or even years. Meanwhile, eCommerce fulfillment centers are more common for short-term storage because your inventory frequently changes as orders come in and out. In fact, your inventory shouldn't stay in fulfillment centers for a long time because storage fees can get expensive. At the same time, you should keep sending inventory to fulfillment centers to avoid running out of stock.

Facility Operations

Warehousing operations are generally very simple. Items come in when you send them and come out when you need them. There's not a lot of processing involved aside from moving items around.Meanwhile, fulfillment centers have more complex operations because they handle order processing. Here are some key operations of a fulfillment center:

  • Receiving items from factories or manufacturers
  • Picking products to fulfill customer orders
  • Assembling items, if required
  • Packing items and labeling shipments
  • Shipping items through carriers
  • Accepting and managing returns

Frequency of Pickups by Freight Companies

Warehouses don’t see a lot of shipping company pickups because you can get items shipped in bulk instead of individually. That’s why we typically see scheduled truck pickups at warehouses, with items being stacked together in big batches with pallets.Fulfillment centers often see daily shipping company pickups or even several times a day if you run an especially prolific eCommerce business. eCommerce fulfillment centers get multiple shipper pickups daily because they need to fulfill customer orders that come in even after business hours.

Fulfillment Centers vs Warehouses: A Summary

Here is a quick summary of the differences between a warehouse and a fulfillment center:

  • The primary function of a warehouse is to store inventory, while a fulfillment center’s goal is to turn inventory over quickly and ship orders.
  • Fulfillment centers handle all stages of the order fulfillment process, including negotiating rates with shipping carriers.
  • Operations at a warehouse are relatively static, whereas operations at a fulfillment center are much more complex and in constant motion. Some of the services provided by a fulfillment center include the following:
    • Receiving inventory from merchants
    • Picking products for individual orders
    • Gathering inventory and packaging orders
    • Labeling shipments for delivery
    • Turning over orders to the shipping carrier
    • Managing customer returns and exchanges
  • Warehouses typically have scheduled less-frequent pickups, whereas fulfillment centers typically have daily pickups from shipping carriers.
  • Fulfillment centers can guarantee same-day or next-day shipping.

Every 3PL provider is different regarding their services and the size and type of businesses they cater to.Later in this article, we'll talk about how to choose the right fulfillment center for your business, but for now, let's take a closer look at the benefits fulfillment centers provide.

What are the Benefits of Using Fulfillment Centers?

Simply put, the benefit of using a fulfillment center instead of directly managing your inventory is that you don't have to deal with the inventory management's ins and outs (e.g., storing, shipping and returns). It may sound simple, but you will never go back once you make the switch. The supply chain for eCommerce companies is complicated, and fulfillment centers make the supply chain easier to manage.After using a fulfillment center to manage your inventory, you’ll find that the order fulfillment process not only goes much smoother, but you’ll be able to free up time on your end which can be dedicated to growing the business (rather than managing it).Here are some of the top benefits of using a fulfillment center:

Extra Storage Space

Working with a fulfillment center means you don't have to find extra space for your inventory on your premises. This is especially useful if you run a small business at home or in a small office.

Managed Order Fulfillment and Shipping Services

Fulfillment centers handle everything from product picking to shipping, so you don't have to do it yourself.

Affordable Carrier Rates

Many fulfillment centers work with shipping carriers to give you delivery cost savings. Lower shipping rates mean you save money with each sale, growing your profit.

Enable 2-Day and Overnight Shipping

Working with fulfillment centers allows you to offer 2-day or overnight shipping options to your customers.

Professional Inventory Management

Fulfillment center workers know what they're doing, so you can trust your items will be properly organized and stored. You also get live updates to see which items are in and out of stock.

Returns Processing Assistance

Your fulfillment center assists with returns and exchanges, saving you a lot of time and effort.

Helps You Focus on Your Business

Fulfillment centers and 3PLs handle inventory and order fulfillment, so you don't have to. This means you can focus on other tasks for your company, like marketing, customer service and product development.By now you should have a thorough understanding of what a fulfillment center is and how it can benefit your business. If you’re ready to make the switch, you’ll be glad to know that there are 3PL providers all over the country waiting to handle your inventory. Keep reading to learn how to find them.

Things to Consider when Choosing a Fulfillment Center

A fulfillment center may seem like the perfect solution if you've been struggling to keep up with orders and manage your own inventory. While 3PL providers can take the burden of order fulfillment off your shoulders, there are some things you need to consider before you commit.First and foremost, you need to determine whether it's a cost-effective solution to start using a fulfillment center. Prices vary from provider to provider but will include costs for things like warehouse space, equipment, warehouse management, staff salaries, worker's compensation and liability insurance, packaging supplies, postage and more. Some 3PL providers offer a flat rate while others add individual fees per task, such as picking and packing.In many cases, outsourcing your order fulfillment services costs more than doing the work yourself, but what you'll be saving is time. If managing your inventory and fulfilling orders is holding you back from doing the work you need to grow your business, outsourcing may be worth the extra cost.Not only do you need to consider the cost of using a fulfillment center, but you need to make sure that the center you choose is compatible with your eCommerce platform. The type of software you use determines whether the 3PL provider will be able to receive, process and track orders. The easiest option is to choose a provider that can integrate with your existing software rather than changing your entire eCommerce platform to match the provider.With these factors in mind, here is a simple process to follow when choosing a 3PL provider:

Review Your Existing Shipping Process

Sit down and take a closer look at your inventory as well as your shipping process. Take the time to identify existing problems and consider whether a 3PL provider could resolve them.

Do Some Research to See What Options are Available

You may be able to find a 3PL provider in your region, or you could choose one closer to your largest customer base.

Compare and Contrast Services Provided

Each 3PL provider is different, so you'll need to know your business's needs before finding a company to match.

Narrow Down Your List to No More Than Three

Once you've created a list of options, narrow it down to the top three choices – these are the companies you'll evaluate on a deeper level to make your decision. Any more than three will simply be too much to handle.

Dig a Little Deeper into the Company You’re Considering

You'll be relying on your chosen 3PL provider to fulfill your customer's orders and handle returns efficiently. Choosing a company with similar culture and values to your own is important for maintaining a consistent and satisfactory customer experience.

Think About Technological Compatibility

Even if your business is still fairly new, you already have some kind of management software in place – save yourself the hassle of switching by choosing a 3PL provider that is compatible with your existing management software.

Plan Ahead for Scalability

Ideally, outsourcing your order fulfillment process will give you more time to focus on what it takes to grow your business. Choose a 3PL provider that can scale its operations to accommodate your changing business needs.

Choose a Provider That Uses Distributed Fulfillment

Depending on what your business sells, you're likely to have customers from all over the country. You want to choose a 3PL provider with multiple distribution center locations to keep costs down and optimize your efficiency.

Consider Experience and Customer Satisfaction

Though the satisfaction of your own customers is paramount, you also want to be satisfied with your 3PL experience. Look for a company with a proven track record that you can trust to handle your business's day-to-day order fulfillment operations. Financial stability is also an important consideration, and you should look for a provider with plenty of industry references – and don't hesitate to check them!

Negotiate the Pricing

Each 3PL provider prices their services differently, some according to the size of your business and others by individual services. You'll need to sit down with your chosen provider to determine the exact pricing and what specific services are included.Once you've chosen a 3PL provider, you need to sit with them and discuss the details. Many small businesses who switch to using a fulfillment center skip this step and end up frustrated when there is no clear process.Before you sign a contract, sit down and go over the details of exactly what you expect from the company and how they will fulfill those expectations. You'll need to determine which responsibilities the 3PL will handle and which you will retain in-house. It's also a good idea to establish a schedule for regular meetings between members of your team and representatives from the 3PL. This is where you'll evaluate the 3PL's performance and discuss any changes that need to be made.

Examples of Fulfillment Companies

Looking for a great fulfillment center provider for your eCommerce business? Here are three example fulfillment companies to consider:

Fulfillment by Amazon

Fulfillment by Amazon (FBA) boasts over 170 fulfillment centers and 150 million square feet of storage space. Additionally, FBA users can offer free two-day delivery to their Amazon Prime shoppers – a great way to draw customers in and improve sales.In addition to Amazon itself, FBA also supports numerous eCommerce platforms like Shopify and WooCommerce.

FedEx Fulfillment

Shipping carrier FedEx offers a full-service fulfillment center and third-party logistic service that includes packaging, warehousing and order fulfillment. In addition to its complete suite of services, FedEx Fulfillment also assigns small business owners a professional assistant to teach them about fulfilling orders.

Rakuten Super Logistics

Rakuten Super Logistics boasts 100% order accuracy and guarantees order turnaround by the next business day. Rakuten Super Logistics users can also offer customers two-day ground shipping to 98% of the United States.However, Rakuten Super Logistics requires a minimum volume of 250 orders per month, so it may not be the best option if you can’t pass the threshold consistently.

How ShipHero Makes Fulfillment Easy

Boasting over 4,000 eCommerce partners, ShipHero is one of the leading 3PL companies for online merchants. Here are some key benefits of working with us as your third-party logistics provider:

2-Day and Overnight Delivery

You may have lost sales because your store doesn’t offer 2-day delivery like Amazon. Customers expect 2-day shipping everywhere they shop, but building a fulfillment network that can do that is a lot of work for a business – especially a small one.If you work with ShipHero, you can offer 2-day and overnight delivery to compete with Amazon and other eCommerce giants. Moreover, we offer shipping discounts so your customers can enjoy cheaper 2-day deliveries.

Nationwide Fulfillment Center Network

Storing your entire inventory in one fulfillment center usually leads to longer delivery times, excess inventory and higher shipping costs. For instance, if your fulfillment center is in Florida, delivering orders to California will be much more expensive than shipping to New York, due to distance and many other factors.ShipHero's distributed fulfillment network boasts eight warehouse facilities in the United States and Canada, with locations in Florida, Texas, Vancouver and more. We split your inventory across these fulfillment centers, so customer orders will be sent out from the closest location. By reducing the shipping distance, you save money and your customers get faster deliveries.

Integrations with Your eCommerce Platform

We support many popular eCommerce platforms like BigCommerce, WooCommerce, Shopify, Shopify Plus and Amazon. Our eCommerce platform integrations are very simple to activate and especially useful if you're selling on multiple sites. In addition to handling all orders, we offer real-time updates from your multiple eCommerce platforms, so you don't have to fumble through multiple sites to see everything.

Transparent Fulfillment Fees

Unlike other fulfillment providers that have unexpected hidden fees, ShipHero offers a simple and transparent pricing model. Our single flat rate covers the entire order fulfillment process for the lower 48 states. We don't lock you into lengthy contracts like other companies, either.

The Final Word

Customer satisfaction is essential to the success of your online business. If customers like your products and experience a smooth order fulfillment process, they're much more likely to recommend your business to others and become regulars themselves.As an online business owner, you’re responsible for selling high-quality products that cater to your customer base’s needs. However, you can’t focus on that if you still have to process orders yourself. Outsourcing the order fulfillment process to a third-party logistics provider means you don’t have to spend hours a day dealing with customer orders and have more time to develop your business instead.

Fulfillment Center FAQs

What is a Fulfillment Warehouse?

A fulfillment center or a fulfillment warehouse is a place where your third-party logistics provider stores your inventory and processes customer orders. Whenever an order comes in, the fulfillment center team picks, packs and ships the product to the customer’s door.

Do Fulfillment Centers Handle Inventory Management?

Fulfillment centers handle inventory management as part of their order fulfillment services.

How Does Order Processing Work?

Here’s how your fulfillment center staff processes orders:

  1. They receive inventory from your manufacturer or distributor.
  2. They store and organize stock on the warehouse shelves.
  3. They pick items from shelves according to the order.
  4. They prepare the items for shipping.
  5. They send the items to carriers for delivery.

What is a Fulfillment Company?

A fulfillment company handles the storage, processing, and shipping of products for businesses. These companies manage inventory, process orders, and deliver goods directly to customers on behalf of their clients.

How Do Fulfillment Centers Help Small Businesses?

Fulfillment centers for small businesses help manage inventory, packing, and shipping orders efficiently. This allows your businesses to focus on growth while outsourcing logistical challenges.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.Let us know how we can help you today by scheduling a call HERE.

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September 9, 2025

Warehouse Daily Checklist: Guide and Free Template

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.

What is a Warehouse Daily Checklist?

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.

Creating an Effective Warehouse Daily Checklist Template

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.

Components of a Warehouse Daily Checklist

Every component of your checklist ensures your facility, staff, and inventory remain safe, compliant, and productive.

Common components include:

  1. Inventory Checks: Your team should do an inventory audit. Monitor current stock levels, confirm the accuracy of quantities, check the condition of stored items, and inspect the labeling and bin organization to prevent errors, shortages, or misplaced goods. Real-time inventory visibility and predictive restocking tools, such as ShipHero, make this process seamless. Make sure that the receiving process is airtight as well.
  2. Equipment Inspections: Your checklist should ensure that all tools, forklifts, devices, and fire extinguishers are operating safely and efficiently. Inspect the equipment for wear and damage, document the condition, and update the maintenance schedule when necessary.
  3. Safety Protocols: Safety and security checks minimize accidents. Inspect the visibility of signage and emergency exits, and oversee the handling of known hazards.
  4. Cleanliness & Housekeeping: A clean and organized warehouse is a safer and more efficient one. Monitor the cleaning of floors, the clearing of walkways, and the organization of storage zones to support optimal workflow and reduce risk.
  5. End-of-Day Tasks: To properly close operations, include tasks that secure the workplace and prepare for the next shift. Record the completion of final duties, document the status of unresolved issues, confirm system backup, and update the daily reports for supervisor review.

Instructions should be clear and structured to help your team move through inspections efficiently and consistently.

Step-by-Step Guide

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:

  1. Identify Daily Tasks: List out everything that needs to happen each day. Walk through the warehouse and discuss routine procedures with your supervisors and warehouse staff to capture all relevant information.
  2. Assign Responsibilities: For each task, decide who’s in charge. Is it a shift supervisor, floor staff, or a designated inspector? Make responsibilities clear so no task is missed or assumed to be “someone else’s job.”
  3. Format It Clearly: Use a structured, easy-to-use layout with checkboxes, concise instructions, and well-defined sections, such as safety and cleanliness. Keep it readable because you want quick glances, not long paragraphs.
  4. Incorporate Timing & Schedules: Some tasks should be completed in the morning, others throughout the shift, and some before closing. Schedule them accordingly, and use timestamps if needed (e.g., “Check emergency exits before 10 AM”).
  5. Include a Sign-Off or Signature Field: Have the assigned employee or team member document their name and time completed. This builds accountability and provides a record for inspections, audits, or compliance tracking.
  6. Involve Your Team in the Design: Ask your warehouse workers what works and what doesn’t. They know the real flow better than anyone. Involving them boosts buy-in, reduces resistance, and ensures the checklist actually helps them.

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.

Free Warehouse Daily Checklist Template

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.

Section Task Completed Person in Charge Time Signature
Inventory Checks Verify current stock levels
Check the condition of stored items
Confirm the accuracy of item labels
Inspect the bin and shelf organization
Equipment Inspections Inspect forklifts (damage, fluid levels, battery charge)
Ensure tools are returned to proper storage
Test barcode scanners and mobile devices
Safety Protocols Check fire extinguishers (placement, charge, expiration date)
Ensure emergency exits are accessible and clearly marked
Confirm that safety signage is visible and undamaged
Inspect for any spills or hazards in work zones
Cleanliness & Housekeeping Sweep and clean floors
Clear walkways and aisles
Organize storage zones
Dispose of waste and recycling properly
End-of-Day Tasks Secure all warehouse entrances and exits
Backup system data
Document unresolved issues
Submit daily report to supervisor
Remarks:


Employee Name: Date:
Supervisor Signature:

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.

How ShipHero’s Warehouse Management System Improves Warehouse Efficiency

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.

Key Takeaways

  • A daily warehouse checklist boosts safety, reduces errors, and supports smooth warehouse operations.
  • Include sections for inventory, equipment, safety, cleaning, and end-of-day procedures.
  • Download our free, customizable template to save time and increase productivity from day one.

Frequently Asked Questions

How Often Should a Warehouse Daily Checklist Be Reviewed?

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.

Can You Customize a Warehouse Daily Checklist Template?

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.

Is Training Required to Use a Warehouse Daily Checklist?

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.

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July 17, 2025

Detailed Guide to Automated Warehouse Picking Systems for 2026

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.

What Are Automated Warehouse Picking Systems?

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.

How Does An Automated Picking System Work?

The process is surprisingly seamless:

  1. An order is received from your store (e.g., Shopify, Amazon).
  2. Your WMS (like ShipHero) routes the order.
  3. The picking system (robot, light, voice, etc.) guides or performs the retrieval.
  4. Items are packed and shipped.

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.

Types of Automated Picking Solutions

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.

Goods-to-Person (GTP) Systems

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 Systems

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.

Voice Picking Systems

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.

Autonomous Mobile Robots (AMRs)

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.

Automated Storage and Retrieval Systems (AS/RS)

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.

Benefits of Automated Order Picker

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.

Challenges of Using an Automated Picking System

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.

How to Choose the Right Automated Order Picking System

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.

Best Practices for Successful Warehouse Picking Automation

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

  • Set clear goals. Know what success means—faster picks, lower costs, or better accuracy.
  • Train your team. Ensure staff are confident in using the new tools.
  • Monitor performance. Track KPIs, such as error rates and pick speed, to identify issues early.
  • Start small. Test automation in one area before scaling across the warehouse.

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.

Key Takeaways

  • Automated picking systems boost warehouse efficiency, accuracy, and cut labor costs by up to 60%.
  • Choosing the right system depends on your space, SKU variety, and growth goals.
  • Strategic implementation, including starting small, training teams, and tracking performance, is crucial to achieving long-term success.

Frequently Asked Questions

What is the Average ROI Timeframe for Automated Picking Systems?

Most companies see a return on investment within 12 to 24 months, depending on the system and order volume.

Are Automated Systems Suitable for Small Warehouses?

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.

Can Automated Picking Systems Handle Fragile or Irregularly Shaped Items?

Yes. Advanced systems feature adjustable grippers, sensors, and packaging logic to safely handle delicate or irregularly shaped products.

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July 17, 2025

What is Wave Planning in a Warehouse Management System?

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.

What is Wave Planning in a Warehouse?

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.

Best Practices for Wave Management

Applying the best practices for wave management allows for maximum efficiency in managing daily warehouse operations. Start with these:

Prioritize Orders Strategically

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.

Leverage Real-Time Data

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.

Minimize Downtime

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:

  • Ensure all inventory is ready and accessible
  • Auto-launch waves per order category
  • Monitor pickers and packers, and reassign them as needed
  • Set up alerts for any disruption so they’re solved ASAP
  • Use smaller, targeted waves for more flexibility

Plan for Peak Periods

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:

  • Forecast orders based on past data
  • Use shorter, more frequent waves that are easier to adjust
  • Separate waves according to categories & priority
  • Have a backup plan to keep operations in place despite delays or failures
  • Utilize real-time monitoring for immediate actions on issues

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.

Use Defined Picking Zones

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:

  • Reduce travel time for pickers and allow more time to fulfill orders
  • Balance workload among staff by assigning them according to the volume of orders
  • Pickers become knowledgeable about their zone, making work easier and more efficient

How Does Wave Management Handle Unexpected Changes in Order Volume?

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:

  • Adjusts the wave by splitting large ones into smaller waves
  • New orders are added quickly to the system
  • Reassign workers to high-volume zones through alerts.

How Does a WMS Simplify Wave Management?

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.

What is the Difference Between Wave Planning and Wave Management?

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.

Digital vs. Wholesale Waves

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.

Key Takeaways

  • Wave planning creates more efficient warehouse operations by grouping together orders based on routes, delivery time, and priority.
  • Prioritizing orders and minimizing downtime are important, especially during high demand and peak periods.
  • Strategizing happens in wave planning while executing the strategy happens during wave management.

Frequently Asked Questions

Can Wave Planning be Used in Warehouses with Small Inventories?

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.

Are There Specific Industries where Wave Planning is Most Beneficial?

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.

Can Wave Management Improve Same-Day Shipping Capabilities?

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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