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Why Supplier Relationship Management Matters

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By: Maggie M. Barnett, Esq., COO at ShipHeroInvolved procurement strategies are complex and too often ignored by top-level executives. Supplier relationship management (SRM), for example, is a powerful tool that businesses can use to help evaluate vendors and streamline processes to help create a more efficient and beneficial relationship.A study by PwC showed that of companies that implemented SRM strategies, 50% mentioned more efficient processes as a significant benefit of the strategy, and over 40% cited inventory reduction, better customer satisfaction, and more sustainable processes and products.One of the main concepts of SRM is to create better relationships with suppliers to enhance your workflow and working relationships. Rather than just working independently from your supplier entirely, you create a closer relationship that leads to improved reliability, trust, and efficiency. By developing these partnerships, you gain a competitive edge and create a more positive working environment for both parties.

What is supplier relationship management?

Supplier relationship management is the process of examining all suppliers’ performances and measurables to see how well they match your company's goals while also coordinating strategies with these vendors to improve workflows and collaboration. Through professionally developed partnerships with your suppliers, innovation will flourish, and cooperative, streamlined processes will save time and money for both companies.

The importance of a supplier relationship management

Fostering improved relationships with your vendors not only can give you a competitive advantage but can prove to have significant cost savings for your company. By examining your supply chain and the suppliers within it, you can create better SRM strategies that will protect and advance your business through a handful of advantages.

Evaluate if suppliers are meeting performance expectations

Supplier management helps you carefully examine if your vendors are meeting procurement expectations. Upon looking at supplier data and KPIs, you may find that they are not meeting all initial goals. Taking a close look at these insights can help you find the best-performing suppliers that you should foster more intimate relationships with and those that may not be a good fit.

Find improvement opportunities with existing suppliers

Strong relationships with your suppliers are essential for collaboration and mutual growth. Looking at the current supplier strategies in place and finding ways to innovate your process with your distributor can help both businesses flourish. By finding areas where your KPIs aren't quite hitting the mark, you can work together to improve and monitor those metrics.

Reduced costs

The resources required to set up new relationships and contracts with suppliers can be costly and complex. Through supply chain management, you can foster relationships with strategic suppliers to create long-term, mutually beneficial relationships that save both parties money.

Increased efficiency & quality control

Growing more high-quality partnerships with suppliers means that operations between companies become more streamlined and efficient. Through long-term relationships, your teams learn workflow tactics and new approaches to the procurement process that saves time while still ensuring quality production.

Stable pricing

As buyers work more closely with their suppliers and grow a positive relationship, disputes, and hostile negotiations become much less common. A happy working relationship is worth a lot to both companies, enough so that it can create stable pricing agreements as your company commits to continue bringing business to vendors without volatility.

Supplier consolidation

Through the process of SRM, you start examining supplier segmentation within your supply base to analyze better your interactions with individual vendors and those supplier capabilities. Within your supplier management process, you will see which suppliers you can consolidate down to and which may be less ideal import sources.

Prevent supply chain disruptions

Working closely with your manufacturers can help prevent issues if supply chain disruption events occur. With strong relationships and long-term protective strategies, you can ensure that you have a stocked inventory and your suppliers are prepared as best as possible for unexpected events.

Ways to improve supplier relationship management

Improving supplier relationships doesn’t have to be complicated. Here are some ways you can improve relationships with suppliers.

Value mapping

By examining value mapping such as vendor risk and revenue growth potential, you find truly what a supplier's contribution will be to your supply chain. You protect your company when you look at the actual value of a supplier beyond just the product price the company hides behind.

Top-down approach

To ensure SRM best practices across the company, getting buy-in from stakeholders and top-tier executives is essential. Like with customer relationship management (CRM), business leaders can easily undermine the entire process without a total company commitment.

Spend optimization

When looking at your SRM strategy, make sure you are critically examining cost savings and cost modeling. Through value mapping and supplier analysis, you can find ways to optimize your company's spending better, ultimately improving its bottom line.

Risk mitigation

Suppliers can be a considerable risk for a company if you don't do the proper research into their previous work and expertise. Ask for references, and examine their financial performance, especially in comparison to competitors and their pricing. A wholesaler with the lowest price may seem attractive, but paying a bit more for more reliable service is a big deal for the strength of your supply chain.

Positive ROI

Proving the ROI of SRM processes can get buy-in from the C-suite and stakeholders. Through case studies, value mapping, and risk assessment, demonstrate and continue to back the positive ROI that these processes can bring to your company.

Technology makes supplier relationship management simple

SRM software helps communications with vendors and helps streamline and add visibility to crucial processes like invoicing, payments, approvals, and collaboration. By empowering your team with technology and software, you can take a lot of the risk out of these processes and ensure that supplier processes run smoothly and on schedule as much as possible while being transparent and gathering vital data.

Make timely payments

Just like you want your goods or services on time, suppliers rely on being paid promptly. If something goes wrong and payment will be late, communicate directly and openly with the supplier as soon as you know of the issue.

Implement a supplier information management (SIM) system

Keeping all of your supplier data tracked accurately can be overwhelming, which is where a SIM system comes in handy. All of the information you may need about a supplier, such as contact details or transaction data, is stored and managed within your SIM system. Creating an accessible and visible way to collect this data makes SRM easier and more effective overall.

How to evaluate supplier performance

Not sure if your current suppliers are meeting their requirements? Here are some ways you can evaluate their performance.

Check if SLAs are met

Continuously evaluate missed deliverables and incomplete orders. Make sure that products or services received are of the quality expected on a continuous basis. Ensuring SLAs are met is crucial to supplier performance.

Create a supplier scorecard

Supplier scorecards can be favorable for both the vendor and your evaluation methods. By setting transparent goals for your suppliers, you both will know what you are working towards and the pain points of the process.

Use benchmarks

When deciding how you will benchmark your suppliers, consider what your goals are from your supplier scorecard or other value strategies. Having measurables to look at for suppliers won't always give a complete picture but can help point out prominent trends, strengths, and weaknesses in your supplier process.

Review & update supplier contracts as needed

You and your supplier's needs and capabilities will most likely change over time. Rather than be resistant to change, review and update your contracts with your suppliers as situations shift for either party. Instead of keeping unhealthy expectations, morph these agreements to best fit needs across the board.

Conclusion

Supplier relationship management is crucial for a company looking to improve its bottom line and develop its procurement process. Creating solid and long-term relationships with valuable, low-risk suppliers can create a stable and reliable supply chain that will continue to fuel your company for years to come. Developing these partnerships can not only protect your company from future supply chain disruption but from having to create new, costly contracts with potentially high-risk suppliers.If you’re new to ShipHero Fulfillment, please schedule a meeting today with our experts to learn more about how we can help you get your orders picked, packed, and delivered with our fulfillment service. No setup fees - simply pay as you go. ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.Click HERE to Schedule a Meeting TodayMaggie M. Barnett, Esq., COOShipHeroAbout the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.Follow Maggie on Twitter&LinkedIn.

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April 7, 2026

5 Top Hurdles Our Prospects Face Before Signing With ShipHero

Executive Summary

Transitioning to a new Warehouse Management System (WMS) is a high-stakes decision that often triggers concerns regarding downtime, data integrity, and workforce adaptation. As warehouses prepare for 2026 growth, understanding these common hurdles—and the technical solutions that resolve them—is essential for a successful migration. This guide addresses the five primary barriers to adoption and how a high-velocity infrastructure ensures a seamless transition.

The Challenge: Overcoming Transition Anxiety

Warehouse operators frequently hesitate to upgrade due to perceived risks that can halt operations. These challenges typically include:

  • The Switching Cost Fear: Anxiety that implementation costs and downtime will outweigh long-term ROI.
  • Legacy Workflow Dependency: A heavy reliance on desktop-heavy, traditional Purchase Order (PO) workflows.
  • Workforce Skepticism: Concern that floor staff will struggle with new hardware or complex interfaces.

The Solution: A Framework for Seamless Migration

To clear these hurdles, a structured implementation strategy is used to prioritize data density and entity clarity.

  • Staged Migration: A phased approach that optimizes inbound logic and mobile setup first, ensuring current orders remain active while layering in advanced features.
  • Mobile-First Inbound: A shift from desktop-heavy POs to mobile architecture, allowing inventory to become sellable minutes after hitting the dock.
  • Workforce Hero: An authentication tool using PIN-based access or scan-to-login badges that makes staff productive within their first hour.
  • Precise Inventory Control: Utilizing high-concurrency architecture to ensure every pick on the floor reflects in Shopify or other sales channels in real-time.
  • Total Real-Time Control: A dashboard that provides visibility into picker productivity, replenishment status, and the Hospital error-handling queue.

Why This Matters for 3PLs and Brands

In the competitive eCommerce landscape, staying stagnant with manual workarounds is often more costly than the transition itself. Moving to a high-velocity WMS converts your warehouse from a cost center into a growth engine by providing Labor Efficiency and ROI through automated routing and reduced authentication friction.

Frequently Asked Questions

How long does it take for staff to become productive on the new system?

Because the platform is built for the floor worker, features like Workforce Hero allow seasonal temps and new staff to be authenticated and productive in under an hour.

Will I lose visibility of my warehouse floor during automation?

No. High-velocity infrastructure increases visibility by providing Total Real-Time Control. Managers can monitor exactly what is in the Hospital queue and track replenishment in real-time from a single dashboard.

What happens to inventory accuracy during migration?

Before going live, a ground-up audit is performed using cycle counting tools. The system's architecture ensures that every movement on the floor is synchronized with sales channels instantly, maintaining 99.9% accuracy.

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March 2, 2026

Meet Tap-to-Pack: Eliminate Packing Errors and Speed Up Your Pack Line

Picture a packer at Peak Season. A box is in front of them, a product in each hand, and somewhere on a cluttered desk there's a mouse they need to find to confirm the order. They look down. They hunt. They click. Then they do it again. Thousands of times a day.

That moment of friction is small. But it is never just one moment. Multiply it across your entire pack line, across an entire shift, and you are looking at a measurable and largely invisible drag on your total throughput.

What Is Tap-to-Pack?

Tap-to-Pack is a purpose-built hardware controller designed by ShipHero to eliminate digital friction at the packing station. It connects via USB-C, requires no drivers or additional software, and syncs automatically with the ShipHero WMS packing app. This new system is now available at the ShipHero Store.

Instead of navigating a screen with a keyboard and mouse, packers execute every high-frequency command — such as selecting box sizes, printing labels, finalizing orders, flagging exceptions — with a single physical tap on one of eight programmable buttons.

Key specifications:

  • Connects via USB-C, plug-and-play
  • 8 programmable buttons on the Main Hub, expandable to 24
  • Integrated LED strips for visual confirmation (green = success, red = error)
  • High-fidelity audio cues to support eyes-on-product workflows
  • Industrial-grade, rugged build for warehouse environments
  • Compatible with the ShipHero WMS packing app (v1.0 or higher required for Tap-to-Pack devices)

Why Keyboards and Mice Fail in Warehouses

Most warehouses are running 2026 operations on 1990s peripheral standards. The keyboard and mouse were designed for spreadsheets and emails, not high-volume fulfillment. When used at a packing station, they create three compounding problems:

  1. Divided attention. Packers must split focus between the physical product in their hands and a digital UI on a screen. This is what we call screen-stare fatigue. That is: a constant, low-level attention split that accumulates across every single order.
  2. Flow state interruptions. When a packer has to hunt for a cursor or navigate a multi-step UI, they lose their rhythm. At scale, those micro-interruptions translate into a significant reduction in orders packed per hour.
  3. Input errors. The further a packer's attention drifts from the product, the higher the risk that a wrong item ships. A mispack costs you twice:  once to resolve it, and once in the customer relationship it damages.

The problem is not your people. It is the tools you are asking them to use.

How Tap-to-Pack Works

Tap-to-Pack introduces a "Rodent-Free" packing standard: a workflow where the packer's hands stay on the product, their eyes stay on the work, and the software fades into the background.

The device guides the packer through two feedback systems:

  • LED strips: A green pulse confirms a successful action. A red alert stops an error before the box is sealed.
  • Audio cues: High-fidelity sound signals reinforce every action without requiring the packer to look at a screen.

ShipHero customers running Tap-to-Pack are already seeing a 90% reduction in on-screen interactions and a significant increase in the number of orders packed per hour, without adding headcount or changing their warehouse layout.

Scaling Your Pack Line With Tap-to-Pack

One of the hardest challenges in fulfillment is absorbing volume quickly, especially during Peak Season, when temporary staff need to reach target productivity fast.

Because Tap-to-Pack's interface is physical and intuitive, there is almost nothing to teach. Pick up the product, follow the light, tap the button. New packers can reach target productivity in minutes rather than hours.

The system is also modular:

  • Start with 8 buttons on the Main Hub for core packing workflows
  • Expand to 16 or 24 buttons by connecting additional hubs as workflows grow in complexity
  • Configurable per station — buttons can be mapped to the actions most relevant to each packing role

Whether you are a growing DTC brand or a high-volume 3PL, Tap-to-Pack is designed so your hardware never becomes a ceiling on what your team can do.

Frequently Asked Questions

What is ShipHero Tap-to-Pack? 

Tap-to-Pack is a programmable, industrial-grade hardware controller that connects to the ShipHero WMS and allows warehouse packers to execute packing station commands, such as printing labels, selecting boxes, and completing orders. All with a single physical button press, eliminating the need for a keyboard and mouse.

How does Tap-to-Pack connect to the ShipHero WMS? 

The device connects via USB-C and syncs automatically with the ShipHero WMS packing app. It is a true plug-and-play solution: no drivers, no background software, and no manual configuration required.

Can I customize what each button does? 

Yes. Buttons are configurable for a range of packing actions, including Print Label, Complete Order, Select Box Size, and the Hospital function, which flags a problematic order and keeps the line moving without stopping to resolve it on screen.

What if I need more than 8 buttons? 

The system is fully modular. Connect up to two additional 8-button hubs to the Main Hub for a total of 24 programmable buttons, supporting even the most complex multi-step packing workflows.

What version of the ShipHero packing app is required? 

Tap-to-Pack devices require ShipHero Packing App v1.0 or higher. The current release is v1.1.0.

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September 9, 2025

How AI is Transforming Warehouse Management: Impact, Benefits, and Use Cases

Imagine running a warehouse where orders are picked quickly, inventory is accurate, and all operations run smoothly without any errors or delays. Thanks to Artificial Intelligence, this can now become a reality with ease.

AI is transforming warehouse management by enhancing efficiency, intelligence, and the ability to meet the rapid demands of today’s eCommerce-driven market.

ShipHero is pioneering this revolution with its AI-powered warehouse solutions, setting new industry benchmarks. This article explores ShipHero’s AI Picking feature, highlighting how it’s transforming warehouse management and enhancing operational efficiency.

Benefits of AI in Warehouse Management

The integration of AI technologies, including machine learning, robotics, and predictive analytics, is revolutionizing warehouse operations, driving significant improvements in efficiency, accuracy, and overall performance. These innovations are optimizing processes across various areas, from inventory management to order fulfillment. Below are the key benefits of AI in warehouse management.

  • Improves efficiency: By automating routine tasks, AI speeds up warehouse operations and streamlines workflows.
  • Reduces operational costs: With AI automating repetitive tasks, businesses can save on labor costs and minimize errors.
  • Enhances inventory management: AI ensures that inventory is always accurate, with real-time updates and better control over stock levels.
  • Predicts demand: AI accurately predicts demand, enabling businesses to manage inventory effectively and avoid stockouts or excess stock.

Key Components of AI-Driven Warehouse Systems

A combination of AI technologies is shaping smarter warehouse systems to help revolutionize warehouse management.

  • Inventory Management Systems – AI-powered inventory management systems ensure that stock levels are continuously updated and accurately tracked to improve operational efficiency and minimize errors in inventory counts.
  • Automated Guided Vehicles (AGVs) – Automated vehicles (AGVs) optimize routing by quickly transporting goods, speeding up processing times, and improving throughput.
  • Robotic Process Automation (RPA) – RPA automates repetitive tasks like picking, sorting, and shipping to allow 24/7 warehouse operations with minimal human intervention.
  • Predictive Analytics and Demand Forecasting – AI tools predict demand accurately, ensuring optimal inventory levels and reducing stockouts or overstocking.

ShipHero’s AI Picking: A Game Changer in Warehouse Efficiency

ShipHero has taken AI integration to the next level with its AI Picking feature, designed to significantly improve warehouse efficiency. This feature automates the picking process, reducing the reliance on manual labor and enhancing productivity in ways that were once thought impossible.

Let’s dive deeper into how ShipHero’s AI Picking works and the advantages it offers.

How AI Picking Works

AI Picking optimizes warehouse operations in two key ways:

  • AI Path Optimization: By calculating the most efficient routes, walking time is reduced by up to 30%, allowing pickers to spend more time fulfilling orders.
  • Smart Batching: Orders are intelligently grouped to maximize pick density, minimizing trips while speeding up processing times.

Benefits of AI Picking

The AI Picking feature delivers a wide range of benefits:

    Increased Productivity: With optimized paths and smart batching, pickers can fulfill more orders in less time, dramatically increasing throughput.Lower Labor Costs: AI Picking reduces the need for human labor, cutting operational costs.Improved Warehouse Efficiency: Path optimization and smart batching maximize space and resources, streamlining operations.

Broader Impacts of AI in Warehouse Management

The transformative power of AI extends far beyond just picking. AI is also revolutionizing other aspects of warehouse management, driving improvements in operational efficiency, inventory management, and safety.

Operational Efficiency

AI automates tasks, reducing errors and increasing speed. Automated sorting and real-time inventory tracking ensure accuracy, while real-time monitoring helps managers adapt and ensure timely deliveries.

Inventory Management

AI plays a vital role in maintaining accurate inventory levels. By leveraging predictive analytics, AI can forecast demand and optimize stock levels, helping warehouses avoid both stockouts and overstock situations. This leads to better inventory management and fewer disruptions in supply chains.

Safety and Compliance

AI-driven systems can monitor warehouse conditions to ensure safety and compliance with industry regulations. These systems can analyze warehouse data and predict potential hazards before they occur, proactively reducing risks and ensuring a safer working environment.

Applications of AI in Supply Chain and Logistics

AI technologies are playing a transformative role in the supply chain and logistics sectors by improving efficiency, reducing costs, and enhancing decision-making.

These intelligent systems effortlessly manage supply chain processes by using data to optimize operations, predict trends, and automate routine tasks. This ultimately reshapes everything, from how goods are moved to stored and delivered.

  • Inventory Optimization: AI analyzes sales data, trends, and external factors to optimize stock levels. This reduces stockouts, overstocking, and excess inventory, ensuring more accurate and cost-effective inventory management.
  • Demand Forecasting: AI helps predict future demand by analyzing historical data and market conditions. This allows businesses to plan inventory, production, and procurement more efficiently, reducing waste and ensuring product availability.
  • Route Planning and Optimization: AI also optimizes delivery routes by considering real-time factors, including traffic and weather conditions. This helps businesses reduce fuel costs, improve delivery times, and enhance overall logistics efficiency.
  • Warehouse Automation: AI-powered robots can automate picking, sorting, and packing in warehouses. This increases accuracy, reduces labor costs, and enhances order fulfillment speed, eventually improving overall warehouse efficiency.

The Future of AI in Warehouse Management

The future of warehouse management looks promising with greater automation and efficiency, but future warehouse digitization brings challenges, such as high upfront costs and the need for skilled personnel.

Emerging Trends and Innovations

AI-powered drones, autonomous robots, and IoT integration are smart warehouse technologies that are revolutionizing warehouse operations. Drones will deliver goods quickly, while robots automate sorting and transportation, thereby reducing the need for manual labor.

IoT and AI integration will enable real-time monitoring and optimization of operations. Smart technology in warehouses is leading to fully automated systems that are faster, scalable, and need minimal human input.

Challenges and Considerations

While AI offers immense benefits, businesses must also consider certain challenges. High initial investments in AI technology, data security concerns, and the need for skilled personnel are just a few of the hurdles that must be addressed.

However, with a strategic approach, companies can eliminate the challenges and embrace AI’s full potential to boost accuracy in picking and improve overall warehouse operations.

Key Takeaways

  • AI is transforming warehouse management by making operations faster, more accurate, and cost-effective.
  • ShipHero’s AI Picking system demonstrates how AI can help warehouses handle more orders, cut down on labor costs, and streamline their processes.
  • AI improves routing, aids decision-making, and ensures timely stock replenishment, helping businesses stay competitive in eCommerce.

Frequently Asked Questions

How can AI help in reducing warehouse errors?

AI minimizes error by automating tasks like inventory tracking, order picking, and sorting, ensuring greater accuracy and efficiency.

Can AI be used for predictive analytics in warehouse management?

Yes, AI-driven predictive analytics can predict demand, track inventory levels, and improve supply chain efficiency by forecasting needs with greater accuracy to help businesses stay ahead of trends and market fluctuations.

Is AI in warehouse management affordable for small businesses?

AI solutions are becoming more cost-effective thanks to cloud-based services and subscription pricing models. These options make AI technology more accessible to small businesses, allowing them to take advantage of its benefits without large upfront costs.

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