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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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September 9, 2025

Warehouse Receiving Process Checklist: Definition and Template

When pallets roll in and loading docks buzz, your warehouse’s receiving process becomes the gatekeeper of inventory accuracy. And if that gate isn’t well-guarded with structure, speed, and oversight, errors slip in.

A mislabeled item here, a damaged shipment there, and suddenly your warehouse faces stock discrepancies, late order fulfillment, or even lost customers.

A warehouse receiving process checklist streamlines receiving operations and ensures compliance across teams, regardless of who’s on shift.

What is a Warehouse Receiving Process Checklist?

A warehouse receiving process checklist ensures every shipment that enters your facility is properly documented, inspected, and integrated into your inventory system.

Unlike ad hoc or verbal processes, this structured document verifies product condition upon arrival, checks against purchase orders to confirm accuracy, and documents all inspections for future reference.

However, ShipHero’s digital platform already seamlessly integrates this checklist into your system, automating the tracking of goods from the moment they arrive.

Because it captures critical shipment details, a receiving checklist can double as a warehouse audit checklist sample, especially when preparing for performance reviews or inventory audits.

If you’re looking for ways to improve accuracy and accountability, learning how to audit your warehouse with a structured receiving checklist is a great place to start.

What to Include on a Warehouse Receiving Process Checklist

Receiving Checklist Sample 1          

                       

Receiving Checklist Sample 2

A well-structured warehouse receiving process checklist is crucial for ensuring accurate and efficient inventory management. Including the mentioned key components helps streamline the process, reduces errors, and enhances overall warehouse performance.

Here’s what you must include in your checklist to maintain control and accountability:

Purchase Order Number

This anchors the entire inspection. By referencing the purchase order (PO) number, warehouse teams can verify the received goods against the original order, ensuring the correct items and quantities are delivered.

Supplier Name & Address

Having the supplier’s full details improves accountability. If there’s a delivery issue, this info helps your team evaluate supplier performance and speed up resolution.

Date & Time of Delivery

Timestamping each delivery helps you review delivery schedules, track shipment delays, and identify potential gaps in receiving coverage.

Receiving Inspection

Here, staff will assess damage or discrepancies, confirm specifications (e.g., size, color), take photos if needed, and record all inspections in case of claims or audits. An effective inventory audit checklist incorporates these inspection protocols to ensure accuracy from the moment goods arrive.

Material Name

Listing the material name (e.g., product name, SKU, or description) prevents mix-ups during inventory allocation and ensures all items are accounted for. This also helps your Warehouse Management System (WMS) update stock records correctly.

Information Like “Delivered By” and “Received By”

Identifying who delivered and who received the shipment establishes accountability, helps resolve disputes over damaged or missing items, and ensures proper handoff records.

Documentation

Maintaining proper documentation, such as packing slips, invoices, and bills of lading, facilitates order reconciliation and supports formal audits and record keeping.

Why is a Warehouse Receiving Process Checklist Important?

A single receiving error often ripples through the entire warehouse. A structured receiving checklist breaks this cycle by establishing clear protocols that coordinate with supply chain operations and create accountability at every step. It drives big improvements in:

  • Faster receiving times: Teams know exactly what to do, in what order, and what to record.
  • Error reduction: Prevents items from being missed, mislabeled, or stored incorrectly.
  • Better supplier relationships: Helps track trends in late shipments, missing items, or recurring damage.
  • Improved stock accuracy: A clear receiving trail makes it easier to spot when something goes wrong.

This plays out in real operations. A mid-sized clothing retailer had ongoing issues with stock discrepancies during receipt. However, implementing a standardized receiving checklist significantly reduced the number of missing items and stock inaccuracies.

Employees also appreciated having clear instructions to follow, which reduced confusion and helped maintain a smoother workflow during peak delivery periods.

How to Create a Warehouse Receiving Process Checklist

Before drafting your checklist, take a closer look at your existing receiving workflow. Next, identify any inefficiencies and pinpoint areas that could benefit from more structure and consistency.

Decide on Information to Include in the Checklist

Choose the data points you’ll need based on your warehouse flow, system integration, and team size. Include only what’s necessary to document key handoff moments.

Choose a Proper Checklist Format

You can go with paper, but digital formats (via tablets or mobile apps) are easier to scale. Software-based checklists can instantly update records and integrate with your WMS.

Create the Checklist Using a Software Template

Use inventory management platforms or cloud-based tools to build your checklist. For example, ShipHero’s template system allows you to configure fields, set mandatory requirements, and establish workflow rules that guide staff through the receiving process. This makes sure every receiving action is consistent and auditable.

Train Employees

Train staff to make sure every team member follows standardized procedures. This minimizes human error, especially for new or seasonal workers.

Implement the Checklist

Roll out the checklist during a test period. Assign clear roles (e.g., receiver, inspector), gather feedback, and then launch warehouse-wide. Revisit and refine it quarterly to keep up with operational changes.

Warehouse Receiving Best Practices

Your warehouse receiving checklist works even better when paired with these best practices:

Building a Proper Receiving Schedule

Spacing out deliveries helps reduce bottlenecks and allows teams sufficient time to track inventory levels accurately. It also allows for more accurate inspections.

Optimizing the Warehouse Space

Keep receiving areas clutter-free and near the entrance. This shortens the time it takes to organize storage locations after goods are received.

Upgrading Warehouse Receiving Equipment

Invest in equipment such as barcode scanners, conveyors, or forklifts to speed up receiving operations, especially during peak seasons.

Separating Damaged Goods

Don’t let broken items enter inventory. Flag them, document the issue, and notify procurement so the issue can be escalated quickly.

Simplify Warehouse Receiving with ShipHero’s Automated Solutions

By leveraging real-time inventory tracking and barcode scanning, you can eliminate the need for manual checklists, ensuring that every received item is accurately logged. ShipHero automates the entire receiving workflow, reducing human errors and speeding up the process.

Customizable receiving workflows allow you to tailor the system to your warehouse’s specific needs, eliminating the need for paper-based checklists. Improve efficiency, accuracy, and consistency, all with ShipHero’s advanced automation tools.

Key Takeaways

  • A warehouse receiving checklist provides structured workflows that ensure accurate, efficient processing of incoming shipments
  • For operational transparency, checklists should include critical information, such as PO number, supplier information, inspection results, and timestamps.
  • For best results, use tools like ShipHero to digitize checklists, train your team properly, and regularly review performance.

Frequently Asked Questions

How Often Should You Update the Warehouse Receiving Procedures?

At least annually, or anytime your business introduces a new product line, supplier, or technology upgrades.

Is It Beneficial to Cross-Train Staff on Receiving Processes?

Absolutely. Cross-training builds flexibility, enabling teams to cover for absences and maintain efficiency even during peak periods or periods of high turnover.

What Should You Do If the Item Received Is Damaged?

  1. Document the damage with photos and notes.
  2. Isolate the damaged item to prevent it from entering inventory.
  3. Notify the supplier immediately with details and evidence.
  4. Update your stock count to reflect the issue.
  5. Follow supplier protocols for returns or replacements.

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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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March 5, 2021

Rare Earth Metals, Woman's History Month ...

Front and Center

Shipping's Decarbonization Starts Now

Sustainability has reared its beautiful head towards the supply chain industry, and started with its biggest polluter, ocean shipping. In what has been dubbed shipping’s decarbonization ‘moonshot’, a $5 billion proposal has been formally sent to the International Maritime Organization (IMO), calling for mandatory contributions from every shipping company in the world at approximately $2 per tonne of bunker fuel.

The proposal, backed by all major global shipping associations, aims to quickly advance R&D for zero-carbon maritime technologies and the development of working prototypes, as well as CO2 reduction projects in developing countries.

In a joint press release from nine of the world’s largest global shipping companies, they state “zero-carbon technologies do not yet exist that can be applied at scale to large ocean-going ships. A well-funded R&D programme, which the industry has agreed to pay for within a global regulatory framework, needs to commence immediately under the supervision of the UN IMO.”

Don't Call It a Tax

Since the European Parliament voted to include the shipping industry in their 2022 carbon market, and also backed a -40% greenhouse gas efficiency target to be reached by 2030, the US and China have also been evaluating similar emissions trading schemes.

Shipping associations hope that this proposal will curtail regional legislation efforts that would impose higher carbon taxes and more stringent regulation. Some environmental groups have claimed that this “moonshot” and $5 billion figure is much too small, and merely a tactic to avoid government interference

IT'S HAPPENING!

Yes, it is. With this proposal, the shipping industry must pay, one way or another, for their carbon footprint. It won’t be long for the spotlight to shine on the rest of the supply chain, and it is put under the same scrutiny as shipping. The proposal backers hope to get it ratified at the next IMO’s Marine Environment Protection Committee (MEPC) later this year. If you haven’t already looked at the sustainability of your supply chain, now is the time.

Back of the Packet

Sweet Relief Package

On Wednesday, the final version of President Biden's $1.9 trillion coronavirus relief bill (AKA the American Rescue Plan Act) was approved by the House and sent to Biden’s desk for signature.

The American Rescue Plan will send $1,400 in direct payments to those with an annual salary up to $75,000, and it also includes:

  • $350 billion for state and local governments aid
  • $14 billion towards vaccine distribution
  • $130 billion to schools for safe reopening
  • $300 billion in weekly jobless benefits through September
  • Expanded tax credit of up to $3,600 per child, which could raise 4 million children out of poverty.

Aaahhhh, sweet economic stabilization.

Unwelcome to Walmart

Walmart announced that they will be repurposing one North Dallas location into a fulfillment center dedicated entirely to online delivery and curbside pickup, with no more in-store shopping. As a proverbial canary in the low-price coal mine, this could signal a permanent shift towards local delivery and curbside pickup over conventional brick-and-mortar shopping.

Continuing their effort to modernize and keep up with eCommerce culture, Walmart has begun offering free samples with their grocery pick-up and also for customers that sign up for the Walmart+ subscription service.

Buddha-ful Statue

What’s trending on China’s online shopping platform Taobao? A statue of Trump as Buddha with the slogan 'make your company great again', of course! A Trump toilet brush is also among Taobao's top-rated Trump-related merchandise.

ShipHero News

Episode FORE: Objects! With ShipHero

Quiz for the true golfers: Cabretta leather is obviously the key ingredient for golf gloves… but did you know it’s not actually leather? Learn with us on Episode FORE of Objects! with ShipHero the rough business of golf gloves with Adam Karger, co-founder of Scotch & Skins. And remember: if the glove don’t fit, you must check out Scotch & Skin’s line of premium golf gloves and accessories.

Influencer's Guide to Becoming a CEO

Success stories of influencers turned CEO exemplify the new American Dream. Just look at our adorable canine friend Humphrey and his owner’s brand, Spotted by Humphrey! Learn how to monetize your brand and engage with your audience with The Influencer’s Guide: How to Become a CEO Using Private Labelling.

ShipHero's Innovation Wheel: Sustainable Fulfillment

Does Greta Thunberg haunt your dreams? Maybe it’s time your business starts cutting down its packaging and supply chain waste. Learn how with ShipHero’s Fulfillment Innovation Wheel series -- Sustainable Fulfillment.

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March 4, 2021

The #1 Way to Increase Productivity in Your Warehouse (Hero Board)

Want to know the most effective and the most important step towards optimizing your warehouse output?

There are plenty of opinions on the internet from reliable experts, with “50+ tips for warehouse efficiency”, that cover resolving certain issues or improving minor practices, but we wanted to cut through the noise to find the ONE suggestion that will have the most impact on your supply chain, inventory management and order fulfillment.

We searched for the single pearl of wisdom amongst many best practices and our own warehousing innovations. Notable suggestions to boost warehouse productivity included:

  • Create a picking path by location
  • Organize bins by popularity
  • Separate bulk items from small picks
  • Optimize stocking levels for easy inventory rotation
  • Incorporate employee feedback to identify bottlenecks
  • Reserve capacity for last-minute emergencies
  • Track shipping status to predict inventory requirements

While effective, each of the aforementioned suggestions rely on one major capability, and without it, your supply chain will NEVER improve productivity. So, what is the #1 capability for improving your warehouse productivity?

Measure & Benchmark Your Supply Chain

Simply put, your business must have the right tools in place to measure and access vital data relating to the productivity of your warehouse in each departmental area. The quality of the information you receive directly impacts how effectively you set realistic productivity goals and speed up work pace in a sustainable manner.

Picking, packing, and inventory replenishment are the three areas of focus when beginning to make systemic improvements to your warehouse. It’s important not to measure everything at once; rather, start by identifying your biggest cost-drivers or bottlenecks and address those first, such as labor hours, units of work, etc. In each area of focus, ask yourself the following questions:

Picking

Picking is the process of walking through the warehouse and selecting products that constitute one or more orders. You can begin measuring this process by asking the following:

  • Picking time and routes: Do you know how long it takes to pick items and complete orders? What routes to pickers take? Are picking routes efficient?
  • Worker productivity: Who are the workers that are more productive and less prone to errors? Are you compensating these workers accordingly? Are you properly staffed?
  • Warehouse layout: What are your most-picked products or combination of products? Do you adjust SKUs based on sales velocity to reduce picking time?
  • Employee suggestions: Are you listening to your employees? Do you have a place to log their suggestions and take action?

Packing

Packing is the process of verifying the order contents and putting the ordered items into the shipping package. You can begin measuring this process by asking the following:

  • Overall evaluation: Every operation is different. What are the major factors that make or break the speed of your packing operation?
  • Workstation design: Is your workstation designed as efficiently as possible? Are there improvements to be made to the top size or worker spacing?
  • Material availability: Are cartons, inserts, and any personalization items available and sufficiently stocked at each station?
  • Automation opportunity: Are there processes that can be automated, such as envelope insertion, box building, etc.
  • Employee suggestions: Are you listening to your employees? Do you have a place to log their suggestions and take action?

Inventory Replenishment

Inventory replenishment is the process of restocking bins with products so that orders can be picked, and errors in replenishment can result in serious cascading bottlenecks in the picking and packing processes. You can begin measuring this process by asking the following:

  • Replenishment levels: What inventory levels trigger your restocking process? Are these built to scale with bulk orders?
  • Distribution duration: Is your replenishment process intelligently informed by manufacturing and distribution times? Does your network of warehouses communicate to overcome any unexpected shortages?
  • Employee suggestions: Are you listening to your employees? Do you have a place to log their suggestions and take action?

The most efficient supply chains run on information. The key to improving warehouse productivity is asking the right questions, measuring the actual outcome, and planning for incremental improvements. Without measurements and benchmarks, you will be stuck reacting to issues, rather than proactively planning and systematically working towards a better warehouse.

ShipHero’s HeroBoard

ShipHero WMS constantly strives to provide you with the information that you need to make intelligent decisions regarding your warehouse management and order fulfillment. That’s why we built the HeroBoard -- a personalized dashboard designed to give an at-a-glance view of your fulfillment operations.

The HeroBoard overview dashboard refreshes every 30 seconds for real-time monitoring of your shipments. Want to get into the specifics? HeroBoard users can easily drill down into specific order information for better customer service and flexible decision-making.

The Live Shipping Board is the newest update to the HeroBoard that gives you a view into the stats for each packer, remaining orders, and more!Schedule a demo today.

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March 3, 2021

The Fulfillment Innovation Wheel: Distributed Fulfillment

ShipHero recently launched The Fulfillment Innovation Wheel to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.

The Fulfillment Innovation Wheel listed a set of twelve (12) capabilities that fulfillment providers and logistics companies should implement to continually delight their customers and push themselves towards greater success and innovation.

The twelve capabilities are:

  1. 2-Day Delivery
  2. Same Day Shipping
  3. At the Box Personalization
  4. Designed for Returns
  5. Sustainable Fulfillment
  6. Resilient Shipping
  7. Distributed Fulfillment
  8. Data Now
  9. Automation
  10. Scale Up and Out
  11. Integration Stack
  12. Professional Services

In this article, we will be diving into Capability #7: Distributed fulfillment.

‍And be sure to stay tuned for future articles as we deep-dive into each capability.

Capability #7: Distributed Fulfillment

Quiz for the e-commerce gurus out there. Which of these two options makes more sense from a business standpoint: Deliver your products from nearby OR deliver your products from far away? Take your time, we all don’t have MBAs.

Businesses who want to reduce delivery times and keep costs low will opt to deliver their products from a nearby location, but as an online business reachable by customers all over the United States, how is that possible? The solution: Distributed Fulfillment.

Distributed Fulfillment is the secret to how the e-commerce giants can deliver free 1-2 day shipping nationwide, and the concept is simple: intelligently bring inventory and fulfillment centers closer to your customers.

The advantages of distributed fulfillment are:

Optimized Price and Delivery Speed

Reducing the distance between fulfillment centers and your customer’s doorstep leads to lower costs, faster delivery times, and reduced carbon emissions. This also allows your business to offer free shipping or guaranteed two-day shipping, which are huge online purchase drivers and pretty much the standard in today’s market.

Easy to Manage

With the right tools in place, managing your inventory is simple. Warehousing companies and fulfillment providers like ShipHero offer Warehouse Management Software (WMS) to give business owners complete oversight and control into their supply chain, so that they can make intelligent decisions on where to store their inventory and how to ship their product.

Reliable and Resilient Shipping

Don’t be at the mercy of mother nature or shipping bottlenecks from traditional carriers. Distributed fulfillment gives you a diversified and robust supply chain that you and your customers can rely on to ship, no matter the circumstance.

In-House vs. Outsourced

For all these reasons, e-commerce giants like Amazon and Walmart are successfully employing this logistics model for e-commerce fulfillment and retailers that piggyback off of their distributed fulfillment network seeing fantastic results.

For in-house fulfilment (i.e., creating a fulfillment network yourself), a high amount of initial capital is required to lease warehouse space across the country, distribute the inventory, then continuously monitor and optimize your inventory management and order fulfillment.

Luckily for small to medium-sized businesses looking to compete, 3PLs and outsourced fulfillment providers like ShipHero are creating massive distributed fulfillment networks around the country, and are ready to deliver your e-commerce.

Our customers love that ShipHero can easily offer 2-day shipping anywhere in the contiguous United States at simple and transparent pricing. We are also able to prioritize ground shipping, making for a resilient and eco-friendly supply chain. We attribute this success on the Fulfillment Innovation Wheel to Capability #7: Distributed Fulfillment.

‍Stay tuned next as we cover Capability #7: Resilient Shipping! Viva la Resilience. ShipHero.

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March 1, 2021

Does Free Gift With Purchase Actually Work?

Today we venture deep into the minds of our customers to answer the age-old, controversial marketing question: does offering a “free gift with purchase” actually do anything?

Spoiler alert: yes, it does… but it doesn’t have the effect that you may expect.

Using case studies and scientific research, let’s look at the psychological effects of the free gift with purchase (GWP) to determine if it’s right for your business, or if there are more effective promotional campaigns.

The “Free Gift With Purchase” Effect

First, why do companies provide a free gift with purchase? What are they trying to achieve?

Online retailers that offer a free gift with purchase (GWP), which is less than 50% of companies, believe that the added value of a free gift will inspire repeat purchases, increase brand loyalty, and stimulate social and word-of-mouth advertising. Companies that offer free GWP include:

Kinder (confectionary) -- free toy

Eileen Fisher (apparel) -- free organic ditty bag

Bentley (cologne) -- free chrome Bentley key ring

And more...

These case studies have been reported by companies that specialize in creating customized GWP for their clients, but do the benefits hold up under scientific scrutiny?

Does GWP Have Scientific Backing?

The answer... yes, but not how you’d expect.

As retailers constantly innovate promotional offers to provide more value to their customers, the “two items for the price of one” sales method has been framed using two distinct promotional tactics: the free gift, and the bundle… and it turns out how you frame the exact same deal actually has different psychological effects on your consumers.

For example, if your business sells household supplies, your promotions could be either:

  • “Buy a mop for $20, and get a bucket free!” -- the free gift
  • “Buy a mop AND bucket for $20!” -- the bundle

Studies have shown that bundle offerings and free gift offerings tend to influence the perceived value of products themselves, rather than their opinions of the company offering the gift. Also, the promotional frame has an impact on product return rates!

Effects of Gift with Purchase

With a free gift promotion, the “free item” or “gift” is perceived as less valuable by the customer, while the focal item is valued more. Therefore, customers are less likely to buy the free item after the sale, but more likely to purchase the main item.

Of course, the likelihood of repurchase is directly related to how effective the gift promotion is in increasing the value of the main item, so if that value increases to surpass the customer’s intrinsic repurchase threshold, then they will buy again.

Additionally, with a free gift promotion, customers are less likely to return an item, because the perceived loss of giving back a “free” item is too high.

Effects of Bundle

In a bundle promotion, the opposite is true. The main item is perceived as less valuable, while the bundled item is valued more. Therefore, customers are less likely to purchase the main item as a single item, but the supplementary item is more likely to be purchased as a standalone

With a bundled promotion, customers do not mind returning an item included in a bundle.

TLDR; offer free gift promotion if you want to reduce return rates and sell more of the main product at the expense of the gifted product; offer a bundle if you want to sell more of the supplementary product at the cost of the main product.

In Conclusion

The proven effects of “free gift with purchase” promotion are not proven to inspire net-increase in repeat purchases; rather, the promotion should be used to increase/decrease the perceived value of one focal item at the expense of a supplementary item. Also, the free gift promotion reduces actual return rates as well as the customer’s desire to return.

HOWEVER, these studies imply only the probability that customers purchase again, and this likelihood varies based on the personalization and relevance of the free gift and/or bundle.

That’s why there exists a vast amount of consumer data analysis tools and companies that make large profits off of customized gifts with purchase.

P.S. Children are the Future… of GWP

There does exist a customer group where the free gift with purchase has had immense, proven success: with products geared towards children.

You’re certainly familiar with the Happy Meal toy, which was so effective at marketing to children that McDonald’s was sued by a California mother in 2010 who claimed that the fast food chain used toys to unfairly attract children.  

In the listed case study above, Kinder successfully offers a free child’s toy with purchase of chocolate, and there exist highly lucrative marketing teams like Kidoz that offer safe advertising and Gift With Purchase creation for children.

The positive results from a child-facing GWP campaign stem from two main factors:

  1. Children perceive a free gift as more valuable than adults
  2. Because adults are the ones delivering the gift to their child, the child’s joy adds to the value of the product for the parent

We’re not saying all GWP campaigns should be geared towards children, it’s just that these are the only ones with a proven record for having net-increases in repeat customers and word-of-mouth advertising (they’re lovin’ it).

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February 26, 2021

Dirty Porch Pirates, Ammonia Fuel...

Front and Center

Dirty Porch Pirates

E-commerce has certainly been in the spotlight this past year, but who has really been stealing the show? Thieves, of course. Package theft is on the rise, as illustrated in a recent report, which showed that approximately 43% of Americans reported having a package stolen, a 7% increase from 2019. Of these theft victims, 64% of them say they’ve had packages stolen more than once. What’s to account for the rise in theft?

More Opportunity

Approximately 59% (+5% YoY) of Americans receive a package at least weekly, and 10% (+5% YoY) receive a package daily. That’s way more packages being left on the doorstep, and although the average value of the items has decreased, this does not seem to stop porch pirates from throwing up their hood and grabbing what they can.http://https://www.youtube.com/watch?v=a_TSR_v07m0ICYMI: Watch the amazing Glitter Bomb 2.0 vs Porch Pirates video

Who’s liable?

“YOU ARE GOING TO PAY FOR THIS!” you may have exclaimed to the heavens when you watch a thief grab your $3 toe clippers on your home security system. “But, who actually pays for this?”, you may have wondered as you pace around with your hawk talons clacking against the hardwood floors. (true story)

Well the answer is, if the shipper says that the package was delivered and the buyer states that it was not received, the seller is no longer liable. However, in most cases of a stolen package, the retailer or seller issues a refund or agrees to replace the item to preserve their customer experience. Amazon’s A-Z Guarantee program pretty much guarantees that purchases made from their retail partners will almost always be refunded or replaced if the package goes missing.

Some businesses may ask customers to file a claim with the shipper before issuing a refund or replacement.

What about package insurance?

For sellers, traditional shipping carriers such as UPS, USPS, and FedEx offer optional shipping insurance for a fee; however, this only covers so much. FedEx caps their liability at $100 and will only increase this if the package is packed and shipped at a FedEx location. Even then, it only increases to $1,000 for items like jewelry, artwork, collectibles, and antiques.

What can brands do?

Ultimately, the brands are responsible for making sure that their products reach their customers. So besides installing guard dogs as a nice ‘gift with purchase’, the most effective way that brands can combat package theft is to offer customers more ways to receive their products. The most common have been curbside pickup and local delivery. You can also schedule for in-person delivery and require signatures.

When deciding to outsource your fulfillment, be aware of your 3PLs Terms and Conditions surrounding stolen goods, and ask what your fulfillment provider can do. For example, in the case of stolen goods, ShipHero files claims with Carriers on your behalf, up to a certain value. Read more about ShipHero Fulfillment’s stolen goods FAQ here and our T&Cs.

Back of the Packet

Ammonia Side Here

According to the International Maritime Organization, international shipping contributes ~3% of annual carbon-dioxide emissions. To combat this, shipping companies seek to replace petroleum with a new fuel source, ammonia (NH3).

Why ammonia? Well… *deep breath in* this colorless fuel emits no carbon dioxide when burned, It’s abundant, it can be made using renewable electricity, water, and air, both fuel cells and internal combustion engines can use it, it doesn’t have to be stored in high-pressure tanks or cryogenic dewars like hydrogen, and it has 10 times the energy density of a lithium-ion battery.

The only problem is that no shipping carriers today are equipped to use ammonia as a fuel source. But by 2024, Viking Energy is set to become the first shipping vessel propelled by ammonia fuel cells, powered by several Norwegian-based companies.

NASA Perseverance and an Early Easter

NASA successfully landed their Mars Rover, Wall-e -- I mean, Perseverance on the Red Planet last week. The videos of the landing immediately went viral, and in typically nerdy fashion, people began uncoding Easter Eggs hidden throughout the footage. In one such hidden message, the parachute was allegedly stitched in binary code that read “Dare Mighty Things”, a quote from President Teddy Roosevelt.

USPS Unveils New Trucks

And they’re cute as hell.

ShipHero News

NEW CASE STUDY ft. Spotted by Humphrey

What would you do if your dog became an internet sensation? Well, that’s what happened with ShipHero customer Yong-Soo and his French Bulldog, Humphrey!

Spotted By Humphrey - “with its quirky name for a shop that has the personality to match” - is a community-driven online destination for dog parents around the world who are looking to find something special and unique for their dogs.

Learn how they turned Instagram fame to a successful ecommerce business with our newest doggone ShipHero Case Study.

Gains, Bro

Need a sick pump for your e-commerce business? Learn how the dietary supplement industry used three simple strategies to get bulging revenue gains of over 40% this year, outpacing overall e-commerce by 12%... and they say it’s “all-natural”.

Multimodal vs. Intermodal Transport

These days, your products probably travel more than you do… But don’t be jealous, multimodal and intermodal fulfillment options are becoming more common as technology allows for seamless communication between carriers. On our Shipping Methods Explained series, we deep-dive into Multimodal vs. Intermodal fulfillment options, so you can determine if it’s right for your business.

ShipHero’s Innovation Wheel: Automation

Are you bogged down by the day-to-day tasks of running a business, desperate for time to focus on your strategy? Automation is the answer you need, and your fulfillment provider should be just the one to provide it. In ShipHero’s Fulfillment Innovation Wheel series - Automation, we give a glimpse into our Automation Cookbook to show you how automation can improve your speed and efficiency.

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February 25, 2021

The Fulfillment Innovation Wheel: At the Box Personalization

ShipHero recently launched The Fulfillment Innovation Wheel to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.

The Fulfillment Innovation Wheel listed a set of twelve (12) capabilities that fulfillment providers and logistics companies should implement to continually delight their customers and push themselves towards greater success and innovation.

The twelve capabilities are:

  1. 2-Day Delivery
  2. Same Day Shipping
  3. At the Box Personalization
  4. Designed for Returns
  5. Sustainable Fulfillment
  6. Resilient Shipping
  7. Distributed Fulfillment
  8. Data Now
  9. Automation
  10. Scale Up and Out
  11. Integration Stack
  12. Professional Services

In this article, we will be diving into Capability #3: At the box personalization.

‍And be sure to stay tuned for future articles as we deep-dive into each capability.

Capability #3: At the Box Personalization

At the Box Personalization is all the little details in your product’s unboxing experience that truly make customers fall in love with your brand. Imagine getting an unexpected hand-written note, a coupon, or a gift in the box along with your order.

All the excitement and gratitude experienced by the thoughtful presentation of your items generates customer loyalty, while also providing a targeted marketing channel for cross-sell and upsell of items. Not to mention, 59% of Americans receive packages weekly, and 10% receive packages daily. That is quite a large marketing audience in terms of packaging…

By pairing At the Box Personalization with modern-day customer data and analysis, retailers can give more personal, more thoughtful experiences than ever before; say, a gift that they truly love or a coupon for an item they had considered purchasing. You may not sell to Brad Pitt, but your customers will be screaming “WHAT’S IN THE BOX” every time they open your package with these benefits of At the Box Personalization:

Spread Your Brand Organically

Corporations have been successfully using At the Box Personalization for decades, with some customers fully relying on Youtube unboxing videos to guide their purchases, and you can see unboxing ideas all over on Pinterest.

Drive Customer Loyalty

In today’s competitive e-commerce market, most retailers do not manufacture unique goods, so your market differentiators are going to live in that extra ‘wow factor’. At the Box Personalization is proven to cultivate brand loyalty and give customers that jolt of consumer surplus that only comes with getting more bang for your buck -- that’s right, we’ve all been conditioned by the Happy Meals toy.

Create Sales Opportunity

Along with the purchased item, retailers can incentivize cross-selling and upselling other products, essentially transforming your packaging into a targeted marketing channel. You can include coupons for relevant or wishlist items, or you can include a gift that requires purchase of other features or parts. And because this occurs in the post-sale phase of the buyer’s journey, it won’t come off as another sales gimmick.

The sky is truly the limit when providing high-quality personalization to your customers, so don’t get weighed down by your 3PL or fulfillment provider. Many fulfillment providers today simply do not provide At the Box Personalization because it reduces efficiency and increases costs.

However, smart fulfillment companies like ShipHero continually innovate their capabilities to offer you a wide range of At the Box Personalization options. Our customers love that ShipHero can easily customize their unboxing experience. We attribute this success on the Fulfillment Innovation Wheel to Capability #3: At the Box Personalization.

‍Stay tuned next as we cover Capability #7: Distributed Fulfillment! Fulfill Your Dreams… Everywhere. ShipHero.

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February 24, 2021

How Supplement Companies Have Dominated E-Commerce With 3 Simple Strategies

Look at those gains, bro. Over the last year, the dietary supplement industry has boasted bulging sales growth of 40%, outpacing overall e-commerce by 12%, and they swear it’s all-natural…

The pandemic has certainly brought more awareness to immunity, and overall health and wellness; in fact, 77% of American adults consume dietary supplements, and the average American spends around $56 per month on dietary supplements.

Of course, there are other ways to increase immunity and health, such as at-home workout products and healthy meal kits, but those haven’t grown at nearly the same rate as supplements. So that begs the question...

‍How have supplement companies dominated e-commerce?After searching through the supplement industries’ gym bag of secrets, we found that the true secret to their success with the injection of three strategies: (Serving size: one scoop of each)

  1. The Subscription Model
  2. Bundles and Stacks
  3. Smart Fulfillment

Disclaimer: Ingestion of the following strategies will give you and your e-commerce business a sick pump.

Strategy 1: The Subscription Model

The Subscription Model, or “Subscribe & Save”, is where customers subscribe to weekly, monthly or seasonal purchases and receive discounts upwards of 15% off. Think content streaming services like Netflix or Hulu, recurring subscription box companies like BirchBox, and more recently, supplement and vitamin companies.

Companies that employ the subscription model offer recurring products or services, rather than the traditional, one-time transaction. Brands and businesses that have utilized this approach have reported better customer relationships, improved aggregate data, and more diversity in product offerings.

Turn Customers in Subscribers

‍Most large companies report that new customers only generate 15 to 25% percent of their revenues, which means that return customers generate the bulk of the revenue. Focusing on return customers and subscribers reduces acquisition costs of targeting new customers, while cultivating brand loyalty.

Gather More Fruitful Customer Data

‍As reported by Shopify, modeling and storing subscription data allows your company to better engage with your audience and create targeted content along the customer journey. In fact, many large brands develop separate marketing strategies for subscribers and non-subscribers, as well as strategies to convert non-subscribers to subscribers, including email campaigns and targeted discounts for subscription and account creation.

Sell the Same Product in Multiple Ways

‍The subscription model gives brands the creative freedom to understand how their customers would prefer to engage with their products and services.

Beyond the price discount, supplement companies could offer subscribers access to free delivery, early bird offers, free trials or samples, gifts with purchase, and much more. As you learn from your subscribers, you are free to adjust your product offerings to better meet their needs!

If you want to learn more about how to create a successful subscription model, check out our blog.

Strategy 2: Bundles

Bundles, or as they’re called in the dietary supplement industry -- stacks. Supplement stacks are a bundled variety of supplements for one specific health goal; for example, popular supplement stacks are for the ketogenic diet, weight loss, muscle gain and more.

Bundling products allows companies to cross-sell, provide a more convenient shopping experience, and give customers more flexibility.

Cross-Sell
‍
Bundles are the perfect way for supplement companies to cross-sell products. By intelligently combining multiple products into one item, supplement companies bundle their popular and top-selling supplements with products that normally might not sell on their own (looking at you L-Carnitine). Also, if you have multiple flavors of a gut-drink for example, you can bundle together a variety pack!

Convenience
‍
With just one click, customers can purchase all the supplements that they need. And if you are using the subscription model, their supplements will be auto-fulfilled based on their desired cadence!

Flexibility
‍
Some supplement providers like G Fuel offer their customers the flexibility of building their own bundles -- BYOB but healthy!

Strategy 3: Smart Fulfillment

Any supplement company can promise a lucrative subscription model with convenient and flexible bundling options; but in reality, these are extremely complicated to pull off without the right inventory management and order fulfillment process.

In fact, most 3PLs and fulfillment providers simply don’t offer the customization and bundling options that supplement companies need. That’s why you need to supplement your business with the right fulfillment provider.

Convenient Bundling
‍
Through traditional fulfillment methods, creating and shipping customized bundles, kits or bulk orders can be highly complex and downright costly. By offering a subscription service, your brand can sell a variety of items in a variety of ways, so brand owners must be able to group orders quickly and pick a lot of the same product at once, making the fulfillment process quick and simple.That’s why ShipHero is dedicated to supporting our subscription-based and bundle supplement companies with our newest capability, BulkShip!BulkShip is an intuitive interface to design preassembled bundles of products, such as a BodyBuilding Stack or a more flexible bundle that would get assembled at fulfillment - like the Build-Your-Own-Bundle option.

Safe Storage and Transport
‍
Supplements must be stored in cool, dry areas, or they risk discoloration, odor, and deterioration. Make sure that your fulfillment provider can take the necessary precautions to protect your inventory in a safe, secure, and climate controlled environment, and take care during the transportation.

Reliable Shipping
‍
Supplements and vitamins are taken regularly and on set cadences, so having a reliable shipping carrier with built-in resiliency is of the utmost importance. This year has shown that even the most popular carriers, FedEx, UPS and Amazon, are all subject to delays and unreliable shipping times. That’s why ShipHero has seen a huge surge of supplement companies looking to diversify their shipping methods, so that their customers and subscribers receive their supplements when they’re supposed to.

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February 23, 2021

Shipping Methods Explained: Multimodal & Intermodal

Welcome to our Shipping Methods Explained blog series. In this series, we will deep dive into fulfillment methods - that is, how businesses fulfill their online orders and get products to their customers.

Sounds simple right? Well, in theory it is. You could hop on your itty-witty bicycle and hand-deliver your product, mission accomplished. But consider the complexity when your company fulfills hundreds to thousands of orders daily, not to mention the skyrocketing shipping costs that could price you out of the market.

Managing inventory, navigating each carriers’ specific requirements, calculating the lowest cost from thousands of shipping options… it’s a daunting task. That’s why more and more businesses are outsourcing their fulfillment methods.

Are you ready to outsource your fulfillment? Let’s analyze your options to help you decide the best method for your business. In this article, we’ll discuss Multimodal and Intermodal Shipping. What is multimodal and intermodal shipping? What are the pros/cons of each? How do they compare/contrast and which one right for my business, if any? Let’s dive in.

‍(Check out our previous articles on Dropshipping, FaaS, and FBA/FBM. And be sure to check back for future articles where we’ll cover even more fulfillment methods)

What is Multimodal vs. Intermodal?

Multimodal transport is also known as ‘combined transport’ because the products are moved using different modes of transportation along the fulfillment journey, but under the terms of a single contract and facilitated by a multimodal transport operator (MTO). Whether by road, sea, air or rail, or a combination of them all, the MTO is liable for the entire journey from beginning to end, although they often use sub-contracted carriers that specialize in each mode of transportation.

‍Intermodal transport involves the use of an intermodal container which carries products throughout the entire fulfilment journey; regardless of the type of transportation, the same intermodal container will be offloaded from one method and loaded onto the next without ever moving the product inside.

The main difference between multimodal and intermodal transport is: 1) how the product is transferred between transportation modes, and 2) how the contracts are made with each carrier.

Product Transfer

With multimodal transport, the products or commodities are loaded and unloaded into transportation-specific containers when transferring, say, between sea and rail, rail and ground, etc. Excessive product transfer may result in product damage or loss; you may have heard the phrase “fallen out of a truck” when asking your relative about an expensive purse they clearly can’t afford. In fact, product damage during transportation costs up to $0.48 per pallet annually, which certainly adds up over time with larger supply chains.

This is the benefit of intermodal transport, because the products are loaded into a single intermodal container to be used for several modes of transportation. The products themselves will remain secure as the container itself is loaded and offloaded from a truck, train, ship or air freight.

Using one intermodal container allows for safer packing of products, which results in less damage and loss, as well as quicker and more efficient movement between freight methods. For this reason, intermodal transport tends to be less costly than multimodal transport.

Contracting Carriers

During a multimodal transport, the shipper creates a single contract with the Multimodal Transport Operator (MTO), which is wholly responsible for the cargo from the origin to the end destination. This allows the shipper to simplify the communication process by just working with a sole transport provider or agent. Also, the simplified communication allows for more accurate shipping updates, tracking notifications, and opportunities for optimization. On the other hand, the shipper must rely on the MTO to select the best/cheapest routes for their cargo, and flexibility is limited.

Conversely, during an intermodal transport, the shipper must create multiple contracts with individual carriers. While there is only one intermodal container, it will be passed between many liable parties, increasing the complexity for the shipper in terms of communication and optimization across carriers; however, the shipper has more flexibility to independently choose each leg of the fulfillment journey.

In summary:

‍Multimodal Transport

  • Multiple carriers, one contract with MTO
  • Product transfers containers between transports
  • Enhanced communication and optimization, but heavy reliance on MTO routes
  • More chance of product damage and loss

Intermodal Transport

  • One intermodal container, multiple contracts with carriers
  • Products remain secure in single shipping container
  • More flexibility to choose your own routes along fulfillment journey, but more complexity for the shipper
  • Less chance of product damage and loss

In conclusion, shippers must determine if multimodal or intermodal is the right choice given their circumstances, i.e., is your product fragile or at risk of damage/loss, do you have the resources to schedule and manage carrier contracts, etc. Thankfully, smart fulfillment providers and 3PLs like ShipHero can help you determine the best way to ship.

Be sure to stay tuned to our Shipping Methods Explained series as we deep dive into the specifics of fulfillment.

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February 18, 2021

Not Another Doggone eCommerce Case Study, ft. Spotted By Humphrey

Move over Air Bud… Humphrey the French Bulldog may not be able to sink a three pointer, but he can sell dog accessories while saving the planet like it's nobody’s business. Except, it is his business! Enter: Spotted By Humphrey -- a specialty dog boutique with a playfully curated selection of thoughtfully-designed, well-made, premium dog accessories, which comes along with a promise of net-neutral climate emissions.

Spotted By Humphrey - “with its quirky name for a shop that has the personality to match” - is a community-driven online destination for dog parents around the world who are looking to find something special and unique for their dogs.

Humphrey aka Spotted Humphrey (@spottedhumphrey) has over 120K followers on Instagram, and is the inspiration behind the business, as founders Sandy and Yong-Soo Chung (also Humphrey’s parents) wanted to create a shop that would make the experience of shopping for your dog just as fun and community-oriented as Humphrey’s Instagram.

Naturally, social media plays a key element in the shop’s marketing strategy; however, both Sandy and Yong-Soo believe that their success largely comes from establishing a strong operational foundation, which ultimately creates a better experience for their customers.

Having founded his own ecommerce shop Urban EDC Supply prior to the launch of Spotted By Humphrey, Yong-Soo leveraged his existing ecommerce experience to establish Spotted By Humphrey, which Sandy has taken on and grown organically ever since. Yong-Soo eventually founded an all-encompassing ecommerce brand accelerator with the first ever net-negative carbon emitting 3PL in the industry, so every shipment that goes out actually benefits the planet instead of harming it.

"Frustrated by the lack of accountability and execution, I decided to take fulfillment in-house. First, we used another WMS other than ShipHero. It was slow, we had a lot of mis-shipments, and it was difficult tracking inventory. When I finally stumbled upon ShipHero, it was a game changer. The software was intuitive to use and it had a lot more features that made it easier to streamline our fulfillment operations."
-- Yong-Soo, Founder and CEO of GrowthJet

Yong-Soo utilizes ShipHero’s warehouse management software across his ecommerce brand accelerator, GrowthJet, along with his two internal brands, Spotted By Humphrey and Urban EDC Supply, a boutique everyday carry shop. So we asked Humphrey and Yong-Soo to ‘sit, stay and roll over’ what made ShipHero the right choice for his business.

ShipHero: Humphrey, tell us about your business(es).

Humphrey: OUAF OUAF!

SH: Ah, I don’t speak French. Yong-Soo, care to translate?

Yong-Soo: “In a nutshell, GrowthJet is an ecommerce brand accelerator with two internal brands, Urban EDC Supply (launched 2015) & Spotted By Humphrey (launched 2018).

Urban EDC Supply is an everyday carry shop with a strong focus on the EDC and knife community. We collaborate with world-renowned designers like Jesper Voxnaes to create stylish and functional everyday carry gear for our community of gear enthusiasts. Taking a page out of the streetwear clothing culture, weekly drops feature a limited supply of exclusive goods that sell out within hours, and sometimes minutes, or even a few seconds. While there’s a wide range of goods available for sale, some of these high-end collectibles can sell for as much as $2,000.

Spotted By Humphrey is a specialty dog boutique inspired by our french bulldog, Humphrey. As of today, Humphrey has 120k followers (@spottedhumphrey) on Instagram. We wanted to create a shop that would make the experience of shopping for your dog fun and community-oriented. Sandy and Humphrey made an appearance on the first episode of Shopify’s “Guess My Hustle” series (produced by Portal A, an award-winning digital studio), as well as Shopify’s “New Money” series (episode titled, “How To Make Money In The Million Dollar Dog Accessories Industry”).

Having built two fast-growing brands, in 2019, several colleagues approached us asking about our product photography, our fulfillment operations, and other e-commerce related ops questions. We decided to build and launch GrowthJet as the backbone infrastructure support to grow e-commerce brands. We've been growing very quickly through word-of-mouth ever since.”

SH: During your journey, you went from using a third party logistics (3PL) provider to fulfilling on your own. What was the catalyst for this switch?

Yong-Soo: “When I launched Urban EDC Supply back in October 2015 from my one-bedroom apartment in San Francisco, I did a tremendous amount of research on finding the best 3PL. After weeks of digging in, I settled on a 3PL that was based here in the Bay Area, and one that had the best reviews and ratings.

Unfortunately, I had one of the most frustrating experiences with this particular 3PL. I lost close to $5,000 worth of inventory due to negligence by the fulfillment staff. There was one particular instance where one of the employees opened up the box that was being shipped to my customer, took the item out, and then shipped out an empty box to my customer in Alaska. It turns out that this particular employee's last day was the next day. When confronted with this news, the employee never returned to collect his final paycheck the next day.

Frustrated by the lack of accountability and execution, I decided to take fulfillment in-house.

SH: Sounds like they were in the doghouse, eh Humphrey?

Humphrey: RUFF!

SH: Too true, too true. So when you were searching for WMS solutions, what were your main fulfillment goals?

Yong-Soo: “When we took fulfillment in-house and launched GrowthJet, the main goals were to improve order accuracy through proper barcoding, speed up the process of fulfillment, and generally, have more accountability and insight into our shipment data.

For us, the [most important criteria] was our ability to have an open dialogue with our fulfillment center. When we needed something, calling a phone number and being greeted by a "voice mailbox is full" message is never fun. Neither is sending out an urgent support email and not receiving a response for over a week. So for GrowthJet, we made it a point to be transparent and open to communication. Also, the ability to flex and work collaboratively with the 3PL is an important part of what we do at GrowthJet.”

SH: And why did you choose ShipHero?

Yong-Soo: “First, we used another WMS other than ShipHero. It was slow, we had a lot of mis-shipments, and it was difficult tracking inventory. When I finally stumbled upon ShipHero, it was a game changer. The software was intuitive to use and it had a lot more features that made it easier to streamline our fulfillment operations.

Integrating ShipHero was relatively easy, especially with one of the Solutions Engineers Matt D. helping us.”

First, we used another WMS other than ShipHero. It was slow, we had a lot of mis-shipments, and it was difficult tracking inventory. When I finally stumbled upon ShipHero, it was a game changer. The software was intuitive to use and it had a lot more features that made it easier to streamline our fulfillment operations.

SH: Every ShipHero customer is assigned a Solutions Engineer to help simplify the onboarding and integration process because we look after our customers, dawg.

Humphrey: ...

SH: So what was your inspiration for the climate neutral pledge, and how do you plan to become a Carbon Negative 3PL?

Yong-Soo: “When we launched GrowthJet, we realized how bad the waste and carbon footprint is for logistics and fulfillment. We think a lot about ecosystems not only for the environment, but the entire lifecycle of every item that comes through our warehouse including packaging materials, pallets, used equipment, etc.

We want to reduce as much as possible, then reuse, then recycle what we can before we decide to throw something away. Even then, we offset the carbon footprint of our garbage by purchasing carbon credits through ClimateNeutral.org.

On top of our Climate Neutral certification, we will be implementing our own tree-planting initiative in 2021. As far as we know, we will be the first carbon negative 3PL in the world. This means that for every package we ship out for our brand partners, we're actually helping our planet fight against climate change. Counter-intuitive, isn't it?

SH: Planting trees to help climate change, care to comment Humphrey?

Humphrey: BARK!

SH: Surprisingly on topic. And what has been the response from your customer base?

Yong-Soo: “Overall, the response from our brand partners has been very positive. They love and appreciate our proactive commitment to saving our planet, rather than being part of the problem. We're also different from most 3PLs in that we're more selective about who we bring on as a partner. We want to make sure we're aligned on values first and foremost. Like any relationship, it's a two-way partnership. We have a bias for thinking long-term so we want to make sure there's a fit first before making a long-term commitment.”

SH: Finally, how has your business been impacted by the COVID-19 pandemic and lockdowns?

Yong-Soo: Our business actually saw an increase due to COVID. With e-commerce getting a huge boost, we were fortunate to be in a position of leverage during the pandemic. Of course, there were additional costs such as PPE equipment and being more cognizant of social distancing within the warehouse, but all in all, we feel very lucky to come out of the pandemic stronger than before.

SH: Amazing, thank you for sharing your story and allowing us to write this case study. Humphrey, final thoughts?

Humphrey: WOOF WOOF!

Follow Humphrey and the Spotted By Humphrey’s journey at their website and Instagram.

Website: https://spottedbyhumphrey.com/

Humphrey’s Instagram: https://www.instagram.com/spottedhumphrey/

Spotted By Humphrey Instagram: https://www.instagram.com/spottedbyhumphrey/

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February 18, 2021

The Fulfillment Innovation Wheel: Automation

ShipHero recently launched The Fulfillment Innovation Wheel to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.The Fulfillment Innovation Wheel listed a set of twelve (12) capabilities that fulfillment providers and logistics companies should implement to continually delight their customers and push themselves towards greater success and innovation.The twelve capabilities are:

  1. 2-Day Delivery
  2. Same Day Shipping
  3. At the Box Personalization
  4. Designed for Returns
  5. Sustainable Fulfillment
  6. Resilient Shipping
  7. Distributed Fulfillment
  8. Data Now
  9. Automation
  10. Scale Up and Out
  11. Integration Stack
  12. Professional Services

In this article, we will be diving into Capability #9: Automation. And be sure to stay tuned for future articles as we deep-dive into each capability.

Capability #9: Automation

The mundane, the menial, the humdrum, the everyday monotony… these are the types of business activities that should and could be automated. Why spend your valuable time copy and pasting shipping information across your systems? Or manually inputting return information? Or constantly checking inventory levels? Let automation work for you!As a business owner, your fulfillment provider should also understand that your time is your most valuable resource. If you are just starting out, you may be able to manually handle it all on your own. But when your business grows bigger and bigger, and the orders are rolling in, you risk spreading yourself too thin, giving yourself no time to get your head above water and focus on your business’s long-term strategy. If you get to the point where the everyday tasks of your fulfillment process seems to be your only focus, it’s definitely the right time to switch to a fulfillment provider that can automate these for you.

ShipHero’s Automation Cookbook

For that reason, ShipHero has partnered with Alloy to unlock smart automations that improve inventory control and warehouse operations with just a few clicks, while integrating ShipHero with 60+ apps to improve the fulfillment experience and grow your business. The few example recipes below from ShipHero’s automation cookbook give you a glimpse at the power of automation between workflows, and may enlighten you to possibilities you never thought possible. Recipe: Send reorder emails or Slack notifications to staff for low inventory in ShipHeroOur workflow automates reorder emails to be sent to staff when there is low inventory in ShipHero. This ensures that your team can restock inventory at a reasonable pace and without over-stocking, and is a great way to organize the flow of customer traffic and inventory.Recipe: Tag Shopify orders based on ShipHero delivery dateThis workflow tags Shopify orders based on the ShipHero delivery date. This means that all orders are tagged by date allowing you to view which days are busy and how many orders are expected to ship out weekly. Tagging orders is a good way to stay organized especially when your store is expanding globally and there are multiple orders placed on the same day.Recipe: Set a ShipHero threshold to notify store owner of low inventoryThis workflow notifies you when your inventory is low in ShipHero. For instance, inventory levels are updated regularly and you receive inventory levels for each inventory item. When stock is low, you receive a notification. Immediate notifications to store owners are key to restocking your inventory and satisfying your eager customers. These notifications can be sent through Slack and email.Recipe: If an order is still unfulfilled in ShipHero after 2 days, email meThis automation will schedule a workflow after 2 days. Then, it will check to see if the order is unfulfilled for greater than or equal to 2 days. This will trigger an email notification to the store owner. This frees you up from constantly checking the fulfillment status of your orders.Recipe: Automate fulfillment for Gorgias returns requests in ShipHeroThis workflow automates fulfillment for Gorgias return requests in ShipHero. When a customer requests a return on Shippo, a Gorgias request is immediately created and sent. This frees up time from going back and forth between Shippo and Gorgias and ensures no information is lost.Recipe: Cancel ShipHero scheduled delivery if there is a Gorgias requestWith this automation, customers can send in a support ticket for a cancellation request. Once your team marks it as a canceled order, an email is sent to the ShipHero fulfillment team so they won’t fulfill the order.Recipe: Send ShipHero delivery updates via Klaviyo SMSSMS messages can have open rates as high as 98% and you’re not limited to using them for promotional campaigns. With this workflow, you can send delivery updates to customers through a text message to leverage higher open and engagement rates.In addition to the above, Alloy also has delivery update automations for Omnisend SMS, PostScript, SMSBump, and Tone, and more integrations are created all the time.Our customers love the automation capabilities that ShipHero provides. We attribute this success on the Fulfillment Innovation Wheel to Capability #10: Automation.Stay tuned next as we cover Capability #6: Resilient Shipping! Viva la resilience. ShipHero.

Learn more about ShipHero's industry-leading warehouse management software.

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