Feb 16, 2023 | Blog
As a business owner, you are faced with many challenging growth stages. But when using a 3PL with an inventory management system, logistics doesn’t have to be one of them. Streamline your supply chain and boost your business success with inventory optimization through a 3PL provider. As customer demands and expectations skyrocket, it is costly to be left with long stockouts or delays in shipping. Say goodbye to stock shortages and forecast errors, and hello to real-time visibility, cost savings, and expert support when partnering with an expert 3PL. In this article, we will cover the power of a 3PL inventory system and how it can take your business to the next level!
What is Third-Party Logistics (3PL)?
Third-party logistics (3PL) is an outsourcing solution for companies to handle their supply chain and logistics operations. Instead of managing storage, transportation, and delivery in-house, a company can work with a 3PL provider to handle these tasks for them. And because providers offer logistical infrastructure as a product, you can utilize their expertise, technology, and resources to handle any logistical needs you might have. This means you save money, improve your supply chain efficiency, and have more time to focus on core business activities!
What is a 3PL Inventory Management System?
Inventory management software is a solution used by third-party logistics providers to manage the storage, movement, and tracking of inventory across fulfillment centers for their clients. The system helps 3PLs to efficiently track inventory levels, manage stock movements, generate reports, improve forecast accuracy, and provide real-time data to clients. With this software, you gain inventory management visibility and get your logistics operational challenges streamlined. You’ll also likely see a reduction in manual errors, and improved accuracy of inventory data.
How Does 3PL Software Help eCommerce Businesses?
Cost Reduction
3PL software can help eCommerce businesses to reduce costs by streamlining operations, reducing forecast errors, and improving efficiency. By outsourcing logistics operations to a 3PL provider, eCommerce businesses can also reduce the need for in-house logistics staff and infrastructure. An example of this would be an eCommerce business that can use 3PL software to automate order fulfillment processes, reducing manual labor and the risk of errors. Plus, because they ship in bulk 3PLs can get negotiated pricing and reduce your shipping costs as well!Â
Increased Transparency
Real-time data from 3PL software provides visibility into inventory tracking, delivery status, and other logistics operations. This increased transparency helps eCommerce businesses make informed decisions and avoid stockouts or overstocking. As an example, an eCommerce business could access real-time data on their inventory across fulfillment centers and delivery status through 3PL software, enabling them to make informed decisions and provide better service to eCommerce customers.
Customer Experience
By outsourcing logistics operations to a 3PL provider, eCommerce businesses can focus on improving their customer experience. This software can help to streamline delivery processes, reduce shipping times, and provide accurate tracking information to customers. Meaning, an eCommerce business could use 3PL software to track delivery times, monitor shipping, provide more shipping options, and provide eCommerce customers with real-time updates on their orders.
Real-Time Visibility
3PL software provides real-time data on inventory levels, shipping status, and other key metrics. This way an eCommerce business can use 3PL software to track inventory optimization and inventory needs in real-time, enabling them to quickly respond to changes in demand and avoid stockouts.
Scalability
Software that offers the above benefits also allows for scalability because of the additional technological resources which speed up workflows. Then if a company also outsources logistics operations to a 3PL provider, eCommerce businesses can focus on their core business activities, while their 3PL handles the logistics. This way they have access to additional inventory storage space, delivery vehicles, and shipping options, which are all assets that the business itself didn’t need to purchase.Â
3PL Inventory Management Services and Benefits
Third-party logistics (3PL) inventory management services offer several key benefits for both off and online businesses. One of the main benefits is cost savings, as outsourcing logistics operations to a 3PL provider can reduce the need for in-house logistics staff and infrastructure. Another benefit is improved efficiency, as 3PLs use specialized software and technology to streamline operations, reduce manual errors, and improve forecast accuracy. With real-time data and visibility into inventory levels, delivery status, and other logistics operations, 3PL inventory management services can also increase transparency and help businesses make informed decisions. By outsourcing logistics operations, businesses can also focus on their core activities and improve their customer experience by providing faster and more accurate shipping information. Additionally, 3PLs can help online businesses to scale their business operations by providing access to additional resources and technology.
What are the Core Competencies 3PLs Provide?
3PLs provide a range of core competencies to their clients, including:
- Storage and warehousing: A 3PL warehouse offers inventory storage solutions for inventory and raw materials, handling the management and organization of these items.
- Transportation and delivery: 3PLs handle the transportation of goods, including pick-up, delivery, more shipping options, and tracking of shipments.
- Order fulfillment: 3PLs manage the process of picking, packing, and shipping orders to customers.
- Supply chain management: 3PLs help to optimize supply chain operations by providing real-time data and visibility into inventory levels, delivery status, and other logistics operations.
- Technology and innovation: 3PLs use specialized software and technology to streamline operations, reduce forecast errors, and improve accuracy.
- Cost optimization: 3PLs help to reduce costs by optimizing logistics operations and providing access to additional resources and technology.
- Customer service: 3PLs provide support to customers by handling inquiries, tracking shipments, and providing real-time updates on orders.
What is the Difference Between a 1PL, 3PL, and 4PL?
A 1PL refers to a company that handles its own logistics operations in-house. This includes storage, transportation, and order fulfillment processes. An example of a 1PL is a retail store that manages its own shipping and delivery operations. Think of Walmart which manages its own storage, transportation, and order fulfillment, or Apple, which manages its own shipping and delivery operations. The primary benefit of a 1PL is that the company has complete control over its logistics operations and can ensure that its processes align with its business objectives.
A 3PL refers to a logistics company that provides logistics services to other businesses. This includes storage space, transportation, and order fulfillment processes. The primary benefits of a 3PL warehouse are cost savings and increased efficiency. By outsourcing logistics operations to a 3PL, businesses can reduce the need for in-house logistics staff and infrastructure, and benefit from the 3PL’s specialized software and technology.
A 4PL refers to a logistics company that acts as a logistics integrator, coordinating and managing the logistics operations of multiple 3PLs. An example of a 4PL is Accenture, which provides logistics management services and integrates the operations of multiple 3PLs. As an example look to DHL supply chain who provides logistics management services and integrates the operations of multiple 3PLs for their clients. The primary benefits of a 4PL are improved supply chain visibility and coordination. By integrating multiple 3PLs, a 4PL can provide inventory optimization, delivery status, and other logistics operations, helping businesses to make informed decisions and optimize their supply chain operations.
Other Than Order Fulfillment, How Else Can a 3PL Help My Business?
3PLs aren’t just there to help you store and ship your inventory. They offer a wide range of other benefits as well. Let’s review a few.Â
Professional Services and Knowledge
3PLs bring a wealth of professional services and knowledge to the table, including expertise in transportation, storage, and supply chain management. By outsourcing to a 3PL, businesses can benefit from their experience and expertise, ensuring that their logistics operations are handled efficiently and effectively.
Cost Savings for Sellers
When you reduce the need for logistics staff and infrastructure, you save money. Logistical infrastructure is expensive, constantly changing, hard to maintain, and there is continually new technology available to utilize. If you let a 3PL take on that cost and pay them a flat monthly fee instead, you can then reinvest that money back into your own business.Â
Inventory Management
With the software a 3PL warehouse provides, this will likely include advanced inventory management services, including real-time visibility into inventory levels, demand forecasting, and safety stock management. Through software and dedicated staff, you can be sure their inventory is in safe hands and know they won’t overstock or understock.Â
Expertise
3PLs bring specialized expertise to the table, including knowledge of transportation and delivery, customs regulations, and compliance requirements. By outsourcing to a 3PL, businesses can benefit from their expertise, ensuring that their logistics operations are handled efficiently and effectively.
Business-to-Consumer Fulfillment (B2C)
When working with a B2C business, 3PL companies offer several services which are key to their success. This includes end-to-end fulfillment services, including order management, picking, packing, and shipping. This means a business-to-customer company knows its product will reach their customer quickly and intact.
Business-to-Business Fulfillment (B2B)
3PLs provide fulfillment services for B2B businesses, including order management, improving logistics efficiency, picking, packing, and shipping. B2B businesses can then ensure that they can rent more or less warehouse space as needed so their products can be found in stores across the nation. Â
How to Find the Best 3PL for Your Business
All this is good, but as a business owner how do I find the best 3PL for my business anyways? There are so many options. How do I know which is the best one?Â
Research the different 3PL warehouse providers and their offerings, and ask for recommendations from other businesses in your industry. Attend trade shows and conferences to network with 3PL providers and gain a deeper understanding of their services. Reach out to industry associations and trade organizations, such as the National Retail Federation or the Council of Supply Chain Management Professionals.
Develop a detailed RFP and send it to several 3PL providers, asking for proposals and pricing quotes. This will allow you to compare the services and costs of different providers and make an informed decision. Send out an RFP to a select group of 3PLs, such as UPS Supply Chain Solutions, ShipHero, FedEx Supply Chain, or DHL Supply Chain.
Schedule on-site visits to the 3PL facilities you are considering. This will allow you to assess the provider’s operations and processes firsthand and ensure that they have the capacity and capabilities to meet your needs. Schedule visits to 3PL facilities, such as the Amazon Supply Chain fulfillment centers or a ShipHero warehouse. That way you can see the warehouse space and understand exactly how your inventory will be managed.Â
Contact references provided by the 3PL provider and ask about their experience working with the provider. This will give you valuable insight into the provider’s performance and reliability. Reach out to companies that have used the services of the 3PL you are considering, such as companies that have used the fulfillment services of ShipHero or Flexe.
Want to chat with an expert? ShipHero to the rescue!Â
Key Takeaways
Inventory management visibility is a huge key to your success as an eCommerce business. You can maximize your profitability and customer satisfaction with a 3PL and its inventory system software! Not only are they an expert in their industry, but when peak season comes around, they’ve got you covered. When you partner with a reliable 3PL provider to streamline your inventory management, and increase transparency, you’ll take your business operations to new heights.Â
Inventory Management + 3PL FAQs
What Is the Biggest 3PL Company?
The biggest third-party logistics company is DHL Supply Chain, a subsidiary of the German multinational courier delivery services company Deutsche Post DHL Group.
What Is Meant by Inventory Management?
Inventory management refers to the process of overseeing and controlling the movement of goods, including their storage, stock levels, and delivery to customers. The goal of inventory management is to ensure that a business has the right amount of inventory in the right place at the right time, while minimizing the costs associated with storage space and carrying excess inventory. The goal of these common strategies is to help both off and online businesses reduce stock shortages, lower carrying costs, improve customer satisfaction, and increase profitability.
What Is Logistics Inventory Management?
Logistics inventory management is a subset of inventory management that focuses on the coordination of the physical flow of goods, information, and financial transactions within a supply chain. This involves overseeing the storage, handling, and transportation of goods from the manufacturer to the end customer, ensuring that the right amount of inventory is available at the right time and place. The goal of logistics inventory management is to optimize the efficiency and cost-effectiveness of the supply chain while meeting customer demands and improving overall business performance.
Apr 21, 2023 | Blog
Understanding the world of eCommerce requires a keen focus on its intricate elements. One such crucial element is product catalog management. Delve deeper into its importance and know how to effectively implement it.
What is eCommerce Product Catalog Management?
Just as organizing a pantry is essential for finding items easily, managing an eCommerce product catalog ensures potential customers are not turned away due to clutter. The dynamic nature of the eCommerce world demands a current and updated product catalog. The task is akin to a centralized database, diligently maintaining a comprehensive database and regularly updating based on customer data and market insights.
Catalog Management Defined
What is Catalog Management?
Catalog management involves creating, organizing, maintaining, and updating product listings and details on an eCommerce platform. A systematic process, it amplifies sales by presenting the brand’s range effectively. A well-organized catalog management tool not only attracts more customers but enables them to make well-informed purchasing decisions. It’s especially helpful in rounding up your inventory position. Read more about it here.
Significance of eCommerce Catalog Management
The Importance of eCommerce Catalog Management
To thrive online, robust eCommerce Catalog Management is indispensable. It ensures product data remains consistent, up-to-date, and accurate across all sales channels, thereby enhancing the customer experience. It is the bridge between efficient order processing and a seamless shopping experience.
- Standardizes Multiple Systems: It provides uniformity across platforms, fostering trust among customers.
- Controls Product Information: Centralization of product information simplifies the handling of a vast array of products.
- Presents Offerings Effectively: Proper categorization and visual representation enhance the user experience.
- Manages Inventory: This insight guides businesses in tracking inventory, decision-making related to product performance.
- Organizes Data Across Devices: Consistency in product data is pivotal for building trust and expanding reach.
Dive into Catalog Management Software
Product Catalog Management Software Types
The choice of software should resonate with the retailer’s needs, challenges, and budget.
- On-Premise: Offers more control and is customizable.
- Cloud-Based: Scalable and eliminates in-house server concerns.
- SaaS: User-friendly with no upfront investment.
- Open Source: Ideal for those with technical expertise.
Overcoming Challenges in Catalog Management
eCommerce Catalog Management Challenges
Several challenges exist:
- Ensuring product data accuracy
- Eliminating duplicate data
- Proper product categorization
- Handling vast product volumes
- Consistency across all eCommerce channels
How to Improve Your eCommerce Catalog Management
Enhancing catalog management involves using across multiple channels and strategies:
- Implement Inventory Management Software: Real-time inventory tracking is pivotal.
- Maintain Consistent Catalogs: A Product Information Management system aids in this.
- Develop a Tagging System: This enhances user experience and sales.
- Audit Inventory Regularly: Ensures consistency.
- Personalize Catalogs: Tailoring product descriptions enhances sales.
What roles do AI and Machine Learning have in Catalog Management?
AI and Machine Learning are changing the way catalogs and ecommerce businesses are managed. They help with quick and automatic data entry, eliminating manual errors. More than that, these technologies can predict shopping trends. This means they can suggest how products should be displayed or even what prices might work best, based on historical data and current market conditions. AI can also help sort and categorize products in ways that make the most sense for shoppers.
Why are Visual Assets important in Catalog Management?
Visual assets aren’t just images. They’re the face of the products in a catalog. Clear and high-quality visuals on product pages can grab a customer’s attention instantly. Videos or 3D views give an even better feel of the product, almost like seeing it in person. With the right visuals, customers can better understand a product’s features, size, and benefits. It’s a direct boost to their confidence in making a purchase.
How does the Feedback and Review System work in Product Catalogs?
When customers shop, they often rely on others’ experiences. That’s where reviews come in. In a product catalog, feedback and reviews can provide genuine insights about products, from durability data quality to fit or functionality. These reviews help new customers make choices. For businesses, these comments are a goldmine. They can learn what’s working and what needs improvement. Plus, when a business responds to feedback, it shows customers that their voice matters.
Why should Catalog Management focus on Mobile Responsiveness?
The world is shifting mobile. Many customers prefer shopping on their phones because it’s convenient. If a product catalog doesn’t look or work well on a phone, it can frustrate customers, leading to lost sales. Mobile-responsive online catalogs adjust to any screen size, making sure images, texts, and buttons are clear and easy to use, no matter the device.
How do Cross-selling and Upselling work in Product Catalogs?
When customers shop, they might not always know about related products or even better versions of what they’re looking at. That’s where cross-selling and upselling come in. In catalogs, if someone is looking at a laptop, cross-selling might show them a laptop bag. Upselling, different sales channels, on the other hand, might show them a higher-end laptop with better features. Both strategies can boost sales by offering more value to the customer.
How important is Security in Product Catalogs?
Security isn’t just a nice-to-have; it’s a must. Every time a customer of online store shops, they trust the catalog with their personal and payment information. A secure catalog ensures this data is safe from threats and breaches. It builds trust, and customers know they can shop without worries.
Future Prospects
The Future of eCommerce Catalog Management
Effective catalog of data management remains paramount with the evolution of eCommerce. Incorporating best practices and keeping updated with trends is crucial.
The Role of Brands
Brands significantly influence product catalog data management, dictating product listing appearances and affecting purchasing decisions.
Resources and Tools
There’s a plethora of online resources, from guides to software, assisting in the catalog and digital asset management journey.
Conclusion
Effective catalog management transcends merely listing products. It involves resonating with shoppers, using inventory levels ensuring accuracy, and delivering a seamless shopping experience. Prioritizing this will inevitably set retailers apart in the growing world of eCommerce. If you found value in this article, you should also ready our deep dive on SKUs here.
Catalog Management FAQs
What is the Role of a Catalog Manager?
Ensuring product consistency and optimizing customer experience.
What Skills are Required for a Catalog Analyst?
Analytical and communication skills, along with platform familiarity.
What are the Different Catalog Types?
From printed to digital, retailer-specific, and B2B
Apr 21, 2023 | Blog
Struggling to maintain a balance called stock control, in your stockroom? Overstocking or running out of products to meet customer demands? It might be time to refine your inventory control system.
What Is Inventory Control?
Inventory control systems focus on overseeing and managing a company’s stock to maintain the right amount of goods. The primary objective is to reduce costs while ensuring there’s enough inventory to satisfy customer needs. This involves monitoring inventory levels, predicting demand, and making decisions about ordering, stocking, and shipping products.Â
Why Is Inventory Control Important?
Accounting Accuracy
Inventory control guarantees accounting precision by offering insights into a company’s inventory levels and cash flow. Accurate data allows businesses to make informed decisions about purchasing, stocking, and shipping. With precise records, businesses can determine the number of goods sold, gross profit, and net income.
Organizational Control
Techniques like cycle counting and ABC analysis offer organizational inventory control techniques, helping businesses manage their stock levels efficiently. Proper practices, including safety stock and reorder points, ensure businesses have the right amount of products to meet customer demands without overstocking.
Quality Control
By diligently tracking inventory levels, businesses can spot discrepancies or quality issues. This ensures the quality reputation of a business and boosts customer satisfaction. Using Point-Of-Sale (POS) and Just-In-Time (JIT) inventory tracking systems ensures smooth inventory movement throughout the supply chain. Investing in such technologies provides insights into stock control and timely replenishment.
Challenges of Inventory Control
Human Error
Manual data entry can lead to mistakes. These errors can result in incorrect stock levels, increased costs, poor inventory management and missed sales opportunities. An effective inventory control system, using barcode or RFID technology, can minimize these errors.
Finding the Time and Resources
Setting up proper inventory control, can be resource-intensive. Regular stock counts, demand forecasting, and data analysis can be challenging for resource-limited businesses. However, investing in inventory management software can streamline the process, saving time and resources.
Visibility
For businesses with intricate supply chains or multiple locations, maintaining visibility into raw materials and stock levels can be challenging. Collaborating with suppliers and implementing effective purchasing practices can help maintain visibility and ensure a smooth supply chain.
Inventory Control vs. Inventory Management
While inventory management oversees the entire inventory system, perpetual inventory control system focuses on ensuring accuracy and minimizing costs. It emphasizes optimizing stock levels for profitability.
Examples of Inventory Control in Practice
Periodic Inventory System
This manual inventory account system involves regular physical stock counts. It’s suitable for small businesses with limited products.
Retail Operating System
Designed for retail businesses, this system tracks real-time inventory levels, monitors sales, and reorders products automatically to meet customer demand.
Perpetual Inventory System
This real-time system uses barcodes or RFID technology for tracking. It ensures accurate records and optimal stock levels.
Spreadsheet to Control Inventory
A basic tool for small businesses, spreadsheets can also track inventory, stock levels and sales trends. However, they can be error-prone and lack real-time tracking.
Effective Inventory Control Process Tips
- Consistency in Labeling: Use barcodes or QR codes for easy identification and reduced errors.
- Real-Time Tracking: Use inventory control software like ShipHero for real-time monitoring.
- Set Reorder Points: Based on sales history, set reorder points to avoid stockouts.
- Back-up Data: Regularly back up your inventory data to prevent data loss in case of a system failure. Consider using cloud-based inventory management software to store your data securely and enable remote access to your inventory records. This can also help businesses optimize their supply chain management by providing access to inventory data for multiple vendors and destination points.
- Regular Audits: Conduct regular physical inventory counts to identify any discrepancies between the actual physical inventory levels and the recorded levels. This can help you identify any issues with your inventory control process and take corrective action to improve accuracy and efficiency.
Inventory Control Systems to Consider
Inventory control and inventory management systems are vital for product-based businesses. ShipHero’s Warehouse Management Software offers a comprehensive solution, providing real-time tracking, automated replenishment, and detailed analytics.
Lead Time in Inventory Control
Definition and Importance
Lead time in inventory control refers to the duration between placing an order for goods and their actual arrival. It is a crucial metric as it influences various aspects of an inventory management system, including stock levels, order quantities, and safety stock calculations.
Factors Affecting Lead Time
Several elements can impact lead time:
- Supplier Factors: Delays can occur if a supplier doesn’t have sufficient stock or if they have inefficient processing and dispatch systems.
- Logistical Factors: Transit issues, such as transportation delays, customs processes, and shipping method, can extend lead times.
- Demand Variability: If an item experiences sporadic or unexpected demand, it might affect how quickly replenishment orders can be processed and received.
Managing and Reducing Lead Time
Businesses aim to reduce lead times to optimize inventory levels and reduce holding costs. Some strategies include:
- Establishing Strong Supplier Relationships: This can lead to priority treatment and faster processing times.
- Opt for Local Suppliers: Choosing suppliers closer to the business location can drastically reduce transportation time.
- Efficient Order Processing: Streamlining the order process within the business can reduce internal delays.
Dead Stock
Definition and Implications
Dead stock refers to various types of inventory items that have remained unsold for a lengthy period and are unlikely to be sold in the future. These items can tie up capital and occupy valuable warehouse space, preventing the storage of more profitable items. Moreover, the longer items remain in storage, the higher the likelihood they will become obsolete or spoil (in case of perishable items).
Causes of Dead Stock
Several reasons can lead to the accumulation of dead stock:
- Overordering: Purchasing more stock than demand requires.
- Changing Market Trends: Products may no longer be in vogue or may become obsolete.
- Inadequate Marketing: Failing to adequately promote or market a product can lead to decreased sales.
Managing and Reducing Dead Stock
To manage dead stock:
- Inventory Analysis: Regularly review inventory to identify slow-moving items.
- Discounting: Offer promotions or discounts to encourage sales of stagnant items.
- Bundle Sales: Package dead stock items with popular items to increase their sales appeal.
- Return to Supplier: If possible, return unsold items to suppliers.
Understanding both lead time and dead stock is essential for effective inventory management. By managing these aspects, businesses can optimize their most efficient inventory control processes and ensure profitability.
Inventory Control FAQs
What Is Basic Inventory Control?
It’s the process of using inventory control procedures overseeing product quantity and location within a business, ensuring optimal stock levels while minimizing costs.
What Is FIFO and LIFO in Inventory?
FIFO (first in, first out) are inventory control methods and LIFO (last in, first out) are inventory costing methods. FIFO sells the oldest items first, while LIFO sells the newest items first.
What Is Good Inventory Control?
It involves managing stock levels effectively, tracking inventory accurately, forecasting demand, using efficient replenishment processes, and employing inventory control tools. Regular audits and data analysis are also essential.
Jul 3, 2023 | Blog
What is eCommerce?
In the realm of modern business, eCommerce refers to the dynamic process of buying and selling goods and services online. From established online marketplaces like eBay to specialized platform-based stores on Shopify, the spectrum of eCommerce solutions is vast, accommodating businesses of varying sizes and strategies.
Some small businesses even straddle the line between online and brick-and-mortar retail, offering an array of ecommerce fulfillment options tailored to their unique needs and warehouse locations.
What is 3PL?
Third-Party Logistics (3PL) companies are integral partners that manage critical logistics operations for eCommerce enterprises. These operations encompass the full range of services for ecommerce customers, from seamless order fulfillment to efficient warehousing, precise packaging, and timely shipping across diverse locations.
3PLs play a pivotal role in optimizing the whole order fulfillment, and shipping process itself, ensuring smooth flow of products from manufacturers to end consumers, all while accommodating various packaging specifications and weight requirements. To delve deeper into the intricacies of 3PL, you can explore a comprehensive guide detailing what a 3PL system entails.
How Does a 3PL Reduce Costs?
Outsourcing logistics to adept 3PL or third party logistics providers empowers eCommerce businesses to significantly curtail operational expenses and streamline resource allocation. Rather than investing resources in their own warehouse space, infrastructure, personnel, transportation management and intricate order processing systems, companies can harness the expertise and pre-existing infrastructure of 3PLs.
This strategic choice helps mitigate the challenges of over or under-stocking, obviates the need for substantial initial investments in both supply chain management and inventory management,, and trims down shipping costs. Ultimately, this translates to saved time, optimized funds, more inventory management and a sharper focus on core business activities and revenue generation.
Will 3PL Work for Any Size Business?
Absolutely! The versatility of 3PL ecommerce logistics services renders them an apt solution for enterprises of all dimensions. Whether you’re a nimble eCommerce merchant operating a Shopify storefront or a sprawling brand spanning the global market, 3PL logistics services can be tailored to suit all your ecommerce logistics’ needs and unique needs.
The company offers expansive global and fulfillment services whose network of 3PLs seamlessly adapts to the contours of business growth and the dynamic demands of various industries, solidifying their position as a versatile logistics solution.
Delving Deeper into 3PL Services
What Exactly Do 3PLs Do for Online Businesses?
The services rendered by 3PL companies span the gamut of comprehensive logistics solutions tailored for eCommerce companies. This encompasses overseeing diverse aspects, ranging from strategically located warehouses and efficient, order management and fulfillment centers (encompassing picking, packing, and shipping services) to customs clearance and the intricate management of returns and reverse logistics.
Some 3PLs even extend their offerings to encompass specialized services such as cutting-edge, order fulfillment and management systems, innovative packaging design solutions, and personalized delivery options.
Their contribution extends to the fulfillment companies furnishing resources dedicated to streamlining inventory management, meticulous packaging, and timely international shipping throughout, thereby ensuring the seamless operation of eCommerce ventures.
Elements of Logistics with 3PL Providers
Operating as the linchpin of the fulfillment process for ecommerce company, 3PL fulfillment companies facilitate fulfillment company through the entire journey, commencing the moment an order is placed on your eCommerce platform and culminating with the products in the hands of satisfied customers in multiple warehouses spanning the globe.
This all-encompassing process entails meticulous storage and inventory management, precision packaging, and streamlined distribution, constituting a holistic solution that caters to the intricate nuances of eCommerce fulfillment.
In collaboration with a network of warehouses, distribution centers and strategic transportation partners, 3PLs ensure the frictionless execution of operations, adroitly addressing weight considerations and accommodating other critical specifications.
Evaluating and Choosing a 3PL Company
When selecting an optimal 3PL partner, the process involves judiciously weighing factors such as
- cost implications
- service caliber
- partner’s ability to seamlessly integrate freight solutions with existing systems.
The decision necessitates a thorough evaluation of the scope of freight forwarding services being offered, verification of the robustness of shipping carriers and their software infrastructure, and a comprehensive understanding of all associated fees.
The choice of a 3PL partner should be a well-informed one, carefully calibrated to the unique needs of your business, the intricacies of your industry, and the plethora of available options.
The Top 10 Best 3PL Companies for eCommerce
In the world of eCommerce, excellence shipping data is a prerequisite. To that end, we present the definitive list of the top 10 best 3PL fulfillment companies renowned for their exceptional offerings shipping solutions that bolster your eCommerce business operations:
- ShipBob
- ShipStation
- Red Stag Fulfillment
- ShipMonk
- ShipHero
- Floship
- Rakuten Super Logistics
- Deliverr
- Printful
- Whitebox
The Role of 3PL in eCommerce Platforms and Giants
The impact of 3PL companies reverberates profoundly throughout the realm of eCommerce businesses. The giants of the eCommerce landscape, including Amazon, Shopify, and Walmart, have seamlessly woven 3PL into their operational fabric to enhance the customer experience.
With a spectrum of services that span warehousing, transportation, and order processing, these eCommerce giants fortify their own supply chain processes and chains, ensuring that platforms like Shopify deliver on their promises to end consumers. For a comprehensive understanding of how to manage and enhance all your logistics needs 3PL performance, a deep dive into these dynamics is indispensable.
Key Takeaways
Selecting the right 3PL partner is tantamount to ushering in shared growth and success for third party logistics provider companies within the supply chain solutions and whole eCommerce logistics domain. The endeavor is underscored by the imperative of identifying a partnership that strikes a balance between cost-efficiency, service quality, and adaptability in the face of evolving market dynamics.
Leveraging the profound resources, expertise, and advantages of a third party logistics company and collaborating with a 3PL partner is an unequivocal recipe for triumph in the fiercely competitive landscape of online retail.
Frequently Asked Questions
What Are the Four Types of 3PL?
Within the realm of ecommerce fulfillment and 3PL, four principal categories of ecommerce fulfillment merchants exist: standard providers, service developers, customer adapters, and customer developers.
These entities offer an array of services tailored to meet the multifaceted demands of the the eCommerce logistics industry, spanning specific shipping modalities ocean freight,, weight management, and returns management among a host of other nuances.
What Is the Profit Margin for 3PL?
The profit margin within the realm of 3PL exhibits variance contingent on the spectrum of services proffered contract the contract logistics’ company,, operational efficiency, and the strategic pricing framework employed by logistics company.
3PL entities aspire to strike a delicate equilibrium between furnishing value and additional services to their clientele and maintaining a sustainable profit margin. The equilibrium inherently hinges on variables such as costs, quality customer service, excellence, customer satisfaction, and the overarching success of the partnership.
Apr 2, 2024 | Blog, Warehouse Management Software
Whether you’re a small online retailer or a multinational corporation, the right shipping software can help streamline your package delivery process, save you time and money, and improve customer satisfaction.Â
This article explores what shipping software is, why you need it, its key features, how to choose the right one, and more.
What is Shipping Software?
Shipping software is a technology solution that has revolutionized the way businesses handle their shipping processes. Beyond simply automating the shipping process, it optimizes for efficiency and cost-effectiveness.
Imagine being an online retailer with a high volume of shipments. Without shipping software, you would have to manually create shipping labels, select the best carrier for each shipment, and manage returns. This could be a time-consuming and error-prone task.
However, with shipping software, all of these tasks are streamlined and simplified. With just a few clicks, you can generate shipping labels, calculate shipping costs, print packing slips, and handle all the necessary documentation. This not only saves you valuable time but also reduces the chances of errors in the shipping process.
But shipping software offers even more benefits. It brings together different shipping carriers and consolidates their services into a single platform. This means you no longer have to juggle multiple carrier accounts or manually input shipment data for each carrier. Shipping software does it all for you, making it easier than ever to compare rates, delivery times, and service levels.
Imagine having to manually compare rates and delivery times for multiple carriers. It would be a time-consuming and tedious task. With shipping software, you can easily compare carriers side by side and make informed decisions about which carrier to choose for each shipment.
Furthermore, shipping software provides valuable insights and analytics. It tracks and records data about your shipments, letting you analyze trends, identify areas for improvement, and make data-driven decisions. This level of visibility into your shipping process can help you optimize your operations and reduce costs.
Additionally, shipping software often integrates with other business systems, such as inventory management or customer relationship management (CRM) software. This integration allows for seamless communication and data sharing between different systems, further streamlining your operations.
In conclusion, shipping software is a game-changer for businesses that rely on shipping. It automates and optimizes the shipping process, saving time, reducing errors, and providing valuable insights.Â
By consolidating different shipping carriers into a single platform, shipping software simplifies the comparison of rates and delivery times. With its integration capabilities, it can seamlessly connect with other business systems, enhancing overall efficiency.Â
Shipping software is truly a must-have tool for any business that wants to stay competitive in the fast-paced world of eCommerce.
For businesses looking to get a complete view of how shipping software fits into the larger context of shipping operations, our guide on shipping operations is a must-read. It covers everything you need to know about optimizing your shipping operations for peak efficiency and customer satisfaction.
Why Do You Need Shipping Software?
The reasons are compelling and could make or break your business.
Efficiency:
With the click of a button, you can generate shipping labels, eliminating the need for manual data input. This not only saves you time but also reduces the risk of human error.
Cost Savings:
The software analyzes different carriers’ rates, taking into account factors such as package weight, dimensions, and destination. It then lets you choose the most cost-effective solution for each shipment.
Improved Customer Experience:
Customers appreciate being able to track their packages in real-time, knowing exactly when to expect their delivery. By automating shipping notifications, you can keep your customers informed at every step of the shipping process, enhancing their overall satisfaction.
Time Savings:
You no longer need to log in to multiple carrier websites to create labels or track shipments. With shipping software, you can access all your shipping information in one place, streamlining your workflow and allowing you to focus on other aspects of your business.
Integration with Other Systems:
 A smooth flow of information between different parts of your business eliminates the need for manual data entry and reduces the risk of error.Â
Advanced Reporting and Analytics:
You can track key metrics, such as shipping costs, delivery times, and carrier performance, to identify areas for improvement. By analyzing this data, you can make informed decisions to optimize your shipping processes and enhance overall efficiency.
Customer Support:
Whether it’s troubleshooting a technical problem or seeking advice on optimizing your shipping strategy, you can rely on their expertise and guidance. This support ensures that you can make the most of your shipping software and address any challenges that may arise.
Shipping software is a valuable tool for eCommerce businesses, offering efficiency, cost savings, improved customer experience, time savings, integration with other systems, advanced reporting and analytics, and dedicated customer support.Â
By investing in shipping software, you can streamline your shipping processes, reduce costs, and provide an exceptional shipping experience for your customers.
Key Features of Shipping Software
When selecting shipping software for your eCommerce business, it’s important to consider the following key features:
- Integration Capabilities: Look for shipping software that seamlessly integrates with your eCommerce platform, order management system, and other essential tools to streamline your operations.
- Carrier Options: Ensure the software supports a wide range of shipping carriers and lets you choose the most suitable options for your shipments.
- Automated Label Printing: The ability to generate shipping labels automatically is a crucial feature that saves time and eliminates errors associated with manual data entry.
- Real-time Tracking: Look for shipping software that provides real-time tracking updates to both you and your customers, enabling them to monitor their shipments every step of the way.
- Reporting and Analytics: Advanced shipping software gives you insights into your shipping performance and identifies areas for improvement.
Choosing the right carrier for each shipment doesn’t have to be overwhelming. To explore more about selecting the best multi-carrier shipping software that simplifies this decision-making process, check out our comprehensive guide on the best multi-carrier shipping software. This resource is very useful for businesses looking to optimize their shipping strategy across multiple carriers.
How to Choose the Right Shipping Software
Consider the following factors to make choosing the right shipping software for your eCommerce business a less daunting task:
- Compatibility: Ensure that the software integrates seamlessly with your existing systems and platforms, such as your eCommerce platform and order management system.
- User-Friendliness: Look for software that is intuitive and user-friendly, as it will be used by multiple team members with varying levels of technical expertise.
- Scalability: Consider your future growth and ensure the shipping software you choose can scale with your business, accommodate increased order volumes, and account for additional shipping requirements.
- Customer Support: Look for shipping software providers that offer excellent customer support, including responsive assistance and comprehensive training resources.
- Cost: Finally, consider your budget and the value that the shipping software provides. Compare pricing plans and assess how the software’s features align with your business needs.
If you’re looking at logistics beyond just shipping software, understanding the role of third-party logistics can be pivotal. Our detailed 3PL guide offers insights into how 3PL services can complement your use of shipping software, potentially further streamlining your eCommerce operations.
Key Takeaways
- Shipping software is a game-changer for eCommerce businesses, offering automation, cost savings, improved customer experience, and more.Â
- When selecting the right shipping software for your business, consider key features such as integration capabilities, carrier options, automated label printing, real-time tracking, and robust reporting.Â
- Evaluate compatibility, user-friendliness, scalability, customer support, and cost to make an informed decision.
- If you put in the legwork to find the right shipping software for your business, you’ll see immediate returns on your investment the minute your software goes live.
Frequently Asked Questions
Can shipping software be used for international shipments?
Yes, shipping software can handle both domestic and international shipments by providing the necessary documentation and facilitating international shipping processes.
Can shipping software integrate with my existing eCommerce platform?
Most shipping software solutions offer integrations with popular eCommerce platforms such as Shopify, WooCommerce, Magento, and more.
Is shipping software suitable for small businesses?
Absolutely! Shipping software benefits businesses of all sizes, providing efficiency, cost savings, and a better customer experience, regardless of their scale.Â
By implementing shipping software for your eCommerce business, you can streamline your package delivery process, save time and money, and create a positive customer experience.Â
Take advantage of the automation, cost savings, and flexibility that shipping software provides, and watch your eCommerce business thrive.
Apr 21, 2023 | Blog
Shipping Large Items? Here’s Your Guide to Oversized Shipments
Shipping vast items can be a daunting task, but with the right information, experience, and guidelines, it doesn’t have to be. Whether you’re a business with a mammoth number of orders waiting in your warehouse or someone trying to send a leviathan gift, this blog has got you covered. Let’s delve into the monolithic world of shipping oversized boxes, packages and shipments, exploring every way to make it efficient!
What is Oversized Shipping?
Oversized shipping is the process of transporting items that are so enormous and great that they surpass the standard size and weight limits set by carriers like FedEx, UPS, USPS, or DHL. When businesses or individuals need to ship large boxes of such brobdingnagian items, they often turn to a 3PL company or freight services. These partners come equipped with the expertise and tools necessary for such shipments. The cost for oversized shipping is usually determined by various factors, including the package’s dimensions, the weight limit, destination, and any special services needed. Sometimes, using specialized packaging is essential to ensure the items reach their destination without damage. Learn more about shipping labels here.
How to Ship Large Packages: Fast and Cheap
Shipping large packages in a cost-effective and swift manner requires some planning and a set of tips. Start by understanding the shipping requirements for your items. Look for shipping companies that offer discounts for hefty or oversized items. Be mindful of any additional fees or shipping charges, like those for oversized packages. Comparing rates across different shipping companies and carriers also can help you find the best option. Ensure your packages are labeled clearly to prevent any unnecessary delays or costs. With the right research and preparation, you can make the shipping process smooth and affordable. Remember, the use of fulfillment services can also streamline this process. It’s all about finding the best ways to tackle the challenges that come your way.
Courier Services for Large and Heavy Items
Courier services tailored for large and heavy items are a boon for those needing to transport oversized parcels or pallets. These services are usually provided by freight shippers equipped with the necessary tools and expertise. They might also offer discounts on oversize packages, which can be beneficial for businesses that depend on regular deliveries. Whether you’re shipping within your country or internationally, many of these shipping services have a vast delivery network to cater to your needs, covering various locations and areas.
5 Considerations for Shipping Oversized Items
Shipping oversized items comes with shipping costs and its set of challenges. Here are some key things to keep about shipping prices in mind:
- Proper Packaging and Protection: Ensure your items are well-packaged using sturdy materials like boxes or pallets suitable for their size and weight. Additional padding can prevent any damage during transit.
- Accurate Measurement and Weight: It’s crucial to provide accurate measurements, including length, width, height, and weight, to avoid extra charges or delivery delays.
- Shipping Insurance: Given that oversized items might be more valuable, consider insuring them during transit.
- Communication with Customers: Keeping customers informed, especially about special handling or delivery requirements, is essential.
- Customs Clearance for International Shipments: If shipping internationally, be prepared for customs clearance and any associated fees. Some carriers, like UPS and USPS, offer customs clearance services for freight shipments.
Oversized Shipping Insurance: Safeguarding Your Investment
Shipping oversized items requires careful consideration, and protecting your investment is of utmost importance. This is where shipping insurance comes into play, ensuring that your valuable items save money are covered in case of damage, loss, or theft during transit. While the initial article briefly touched on insurance, let’s delve deeper into the various types of shipping insurance available and the benefits they offer.
Types of Shipping Insurance
Full-Value Coverage: This comprehensive option provides coverage for the entire declared value of your oversized item. It ensures that you are financially protected in the event of any mishap during transit, offering peace of mind, especially for high-value items.
Declared Value Coverage: With this insurance, you declare the value of your oversized item, and the coverage is based on that declared amount. Ensuring an accurate declared value of oversized package is crucial to receive proper compensation.
Special Perils Coverage: This type of insurance is designed to cover specific risks that might not be included in standard insurance options. It’s particularly valuable for unique or delicate oversized items.
Benefits of Shipping Insurance
Protection Against Loss: Shipping insurance provides financial coverage in case your oversized item goes missing during transit. This is particularly important for shipping zones and for items that are valuable and not easily replaceable.
Coverage for Damage: Accidents can happen, and oversized items are susceptible to damage during handling and transportation. Insurance covers the costs of repair or replacement.
Peace of Mind: Knowing that freight or estimated shipping costs of your oversized item is protected by insurance can alleviate the stress and anxiety associated with shipping valuable or delicate items.
Professional Handling: Some insurance and shipping options come with specific packaging and handling requirements, ensuring that your item is treated with care throughout the shipping process.
Cost-Efficiency: While insurance comes at a cost, it often proves to be more cost-effective than bearing the full financial burden of loss or damage.
Before you ship your oversized item, take the time to choose the type of insurance or shipping carrier that best suits your needs and the value of your item. Discuss the available insurance options with your chosen carrier or freight service to ensure a smooth and secure shipping experience.
Sustainability in Oversized Packaging: Embracing Eco-Friendly Practices
In today’s environmentally-conscious world, sustainable packaging solutions are gaining prominence, even in the context of oversized shipments. The original article briefly touched on the importance of specialized packaging, but let’s dive deeper into how sustainable packaging aligns with the challenges of to ship oversized packages and shipping.
Eco-Friendly Packaging Options
Recycled Materials: Opt for packaging materials made from recycled content, such as corrugated cardboard and paper. By using recycled materials, you contribute to reducing the demand for new raw resources.
Biodegradable and Compostable Packaging: Consider packaging options that are biodegradable or compostable. These materials naturally break down over time, minimizing their impact on the environment.
Reusable Packaging: Another way to ship a sustainable approach is to use reusable packaging materials for your oversized items. This not only helps reduce waste but also adds a layer of eco-friendliness to your shipping practices.
Advantages of Sustainable Packaging
Reduced Carbon Footprint: Sustainable packaging typically requires fewer resources to produce, resulting in a lower carbon footprint compared to traditional packaging materials.
Enhanced Brand Image: Embracing sustainable practices can positively impact your brand’s image and appeal to environmentally-conscious customers.
Regulatory Compliance: Sustainable packaging aligns shipping companies with evolving environmental regulations and standards, ensuring that your shipping practices are responsible and compliant.
Customer Loyalty: Demonstrating a commitment to sustainability can foster customer loyalty, attracting consumers who prioritize environmentally-friendly choices.
When preparing to ship oversized items, take the time to explore eco-friendly packaging options that reduce shipping costs, align with your brand values and contribute to a more sustainable planet.
Oversized Shipments FAQs
What is Dimensional Weight?
Dimensional weight, or DIM weight, is a pricing method used by carriers to factor in the space a package occupies besides its actual weight. This is crucial for carriers to manage space on their vehicles and handle large packages efficiently. DIM weight considers the package’s length, width, and height, divided by a specific factor set by the carrier. This method is especially relevant for large items occupying significant space.
How to Correctly Measure a Package?
To measure a package accurately:
-
- Place it on a flat surface.
- Measure its length, width, and height using a tape measure.
- Add these measurements to get the total dimensional weight.
- Factor in the carrier’s specific dimensional factor.
- Use standard tools like a tape measure and scale.
- Some carriers offer tools to determine the most cost-effective shipping method based on package size and destination.
Which Shipments are Oversized and Heavy?
Oversized and heavy shipments typically surpass the size or weight limits of standard shipping methods. This category includes large items like furniture or machinery, as well as bulk orders of smaller items. They often need specialized packaging and may come with additional fees. Freight carriers and 3PLs are experts in handling such shipments. For more insights on shipping, check out our articles on discreet shipping and expedited shipping.
Mar 28, 2023 | Blog
Warehousing, by definition, is the act of storing goods and raw materials that will be sold or distributed later. In a more specific context, the term refers to a storage facility or warehouse facility where items or raw materials are kept safe, organized, and ready for transit or delivery to consumers. Beyond just a storage facility, a warehouse is a hub of various tasks and processes. It’s a staging area for shipments, a place where work is done, and a room where various factors and requirements come into play.
Understanding Warehouse Operations
Operating a warehouse isn’t merely about managing space or storing units of products. It’s an area bustling with numerous activities and processes. From picking to packing, and from loading docks to storage areas, every corner of the warehouse has a purpose. Staff, trained operators in particular, are constantly on the move, managing inventory and using equipment such as forklifts to handle the materials. Each item has a specific location in the warehouse space and a manner in which it is stored, governed by a sophisticated Warehouse Management System (WMS). The advantages of such a system are numerous, and the number of businesses using them in various countries is growing.
The Role of Warehousing in Supply Chains
Warehousing plays an indispensable role in the world of supply chain and inventory management now. Warehouses function as central points in supply chains, providing a convenient location for staging, processing, and distribution of physical goods. The warehouse’s functions are vital to the flow of goods, from receiving and then storing goods to order picking and shipping. The country where the warehouse is located can impact the prices and efficiency of these processes. The experience of the person managing the warehouse, among others, can also have a significant impact.
Warehousing and E-commerce Businesses
For eCommerce businesses, warehouses aren’t just buildings for storage; they are critical elements in the company’s success. Proper warehouse logistics not only enable smooth order fulfillment but also contribute to overall business growth. By maintaining an organized warehouse and effectively managing tasks like cycle count and put away, eCommerce merchants can achieve better customer satisfaction and productivity. The manufacturing of physical products, the information available about them, physical inventory storage and the responsibilities of the warehouse staff all play a role in this process.
Key Warehouse Operations
Key warehouse operations involve numerous steps and manual processes that require careful planning. Efficiently carrying out these tasks requires a well-structured warehouse layout and storage facilities, advanced equipment, well-trained staff, and a reliable Warehouse Management System (WMS). Moreover, safety and training measures are crucial to ensure staff welfare and productivity. Barcoding and scanning are also significant components of warehouse operations, ensuring accuracy and efficiency in tasks like ASN and EDI. The places where these operations occur, the lot sizes of the products, storage costs, and the advantage of using certain methods over others are all important considerations.
Different Kinds of Warehouses
Distribution Centers: These warehouses act as hubs, receiving products from multiple suppliers and quickly dispatching them to various outlets nearby warehouses, retail stores or directly to customers.
- Fulfillment Centers: Primarily for e-commerce operations, these warehouses handle online shopping orders, ensuring that items are properly packed and efficiently dispatched to customers.
- Showrooms: These function as a combination of storage and customer-facing facilities, allowing customers to physically interact with and purchase products on site.
- Cold Storage Facilities: These warehouses are designed for products that need specific temperature conditions, such as food or pharmaceuticals, ensuring they’re kept safe and viable.
Each of these warehouses fits into the supply chain in different ways and brings unique benefits to the table for business customers, so it’s crucial for businesses to understand their own different needs in a large warehouse in order to choose the most suitable option.
Warehouse Management Systems (WMS)
A Warehouse Management System (WMS) is a vital tool in managing warehouse facilities store inventory and operations. It includes features for both warehousing logistics inventory control, order fulfillment, and real-time tracking of goods. With a WMS, businesses can achieve greater efficiency and accuracy, improving their bottom line. The parts of the system that handle different tasks, the bulk of the data it can process, and the corporation that provides it are all crucial factors.
How Warehouse Design Impacts Efficiency
The way a warehouse center is laid out affects its efficiency. Effective layouts use Slotting Optimization. This arranges products based on factors like their demand, size, and weight. Items that get picked often are kept closer to the dispatch areas to manage inventory and reduce pick times. A well-organized warehouse also improves safety by keeping pathways clear for people and machines. Plus, a good design leaves room for the future, allowing the business to grow without the need for a major reorganization.
Legal Aspects of Warehouses
Warehouses have to follow a bunch of laws and regulations to keep things safe, fair, and legal. For example, Safety Regulations are in place to protect workers. These rules might involve training, safety equipment, and machine operation standards. Warehouses that handle goods from other countries also need to follow Import/Export Laws. These laws can affect how a retail store or warehouse operates, especially when it comes to storing, managing inventory, and moving products. It’s important for warehouse operators to keep up with these laws to avoid getting into trouble and to keep things running smoothly.
The Future of Warehousing
The nature of warehousing is rapidly evolving, largely due to advancements in technology. Concepts like data warehousing, data warehousing meaning, a full warehousing logistics solution and warehouse storage and data mining have entered the picture, promising to bring significant changes to how businesses manage their warehouse operations. The investment required for these technologies, the fulfillment centers that use them, and the package of services they offer are all important considerations.
Technology is changing the warehouse industry and ecommerce platform in big ways. Robotics is making things faster and more accurate with automated picking, packing, and sorting systems. Artificial Intelligence (AI) and Internet of Things (IoT) technologies are giving real-time tracking and predictions for inventory management. And Blockchain is giving secure and transparent tracking of goods through the supply chain. By adopting these technologies, warehouses and ecommerce companies can work more efficiently, make fewer mistakes, and stay competitive.
Conclusion
Warehousing extends beyond the simple notion of storage. It plays a critical role in ensuring smooth and efficient product flow. It’s important to mind its importance in supply chain management and invest in a suitable Warehouse Management System (WMS) for business growth and success. The marketing strategies used to promote warehousing services, the plans for future development, the people involved in the industry, the brands that dominate it, and the distributors that rely on it are all part of the bigger picture.Â
This article has aimed to provide a comprehensive overview of warehousing functions of these various entities and their development. In the end, everything traditional warehousing comes down to the quantities of products stored, the volume of operations, the money involved, the basis on which decisions are made, the list of tasks to be done, the look of the warehouse, the ports used for shipping, the office managing the operations, the improvement strategies in place, the production rates, and the slotting methods used. The meaning of what is warehousing then is much more than just storage; it’s a complex system of operations that keeps the world of commerce moving.
Feb 16, 2023 | Blog
Running an e-commerce business or a retail operation is no easy feat.Â
From managing inventory to fulfilling orders, the logistics involved can be overwhelming and time-consuming. But what if we told you that there’s a way to streamline your logistics operations and take back control?Â
With third-party order management, you can do just that. It’s the ultimate solution for businesses looking to improve their logistics efficiency and customer satisfaction. But what exactly is 3PL order management and how does it work?
What is 3PL Order Management?
3PL Order Management is a game-changer for businesses looking to level up their logistics. It is the process of managing customer orders from the point of sale to delivery and involves a wide range of tasks, including receiving orders, processing them, picking and packing products, and shipping them to customers. It’s a powerful solution that streamlines and automates order fulfillment and removes many manual processes other companies can be stuck in today. This means while your 3PL partner handles order management, you can focus on growing your business. With 3PL order management, you can kiss logistics stress goodbye and say hello to streamlined, efficient, and profitable operations.
How Does 3PL Order Management Work?
Let’s say that John runs an eCommerce business that sells outdoor gear. His business has been growing rapidly, and he’s finding it difficult to keep up with the logistics and distribution side of things. So, he decides to work with a 3PL provider to handle his order management. Once John’s 3PL provider receives an order from his online store, the order is automatically imported into the provider’s order management system. The system checks the inventory levels to make sure that the items are available, and then assigns the order to a picker.
The picker goes to the warehouse and uses a barcode scanner to locate and pick the items specified in the order. Once the items are picked, they are taken to the packing station, where they are packaged and prepared for shipment. The 3PL provider then creates a shipping label and invoice for the order, and ships the package to the customer. Along with that, the provider notifies the customer of their order status and tracking information so they can follow the package on its way to them.
In the meantime, the 3PL provider also updates John’s inventory levels in real-time, so he can see exactly how many products he has in stock. They reorder items as needed to ensure that John’s inventory doesn’t empty. And they give him reports on which products sell and which products are stagnant.Â
This is the beauty of order management. Thanks to 3PL’s expertise and technology, the provider handled the order process efficiently, making sure that the customer received their package on time and that John looked like a rockstar!Â
Features of 3PL Order Management
Third-party logistics order management systems offer a plethora of features that make them a popular choice for businesses looking to streamline their logistics and supply chain operations.Â
- Real-time inventory management, businesses to have clear visibility into inventory levels, allowing them to make informed decisions.Â
- Automated order processing, multi-channel integration, and customizable workflows enable businesses to optimize their logistics processes, improving efficiency and reducing costs.Â
- Reporting and analytics tools are included to provide businesses with insights into their logistics operations, helping them identify areas for improvement.Â
3PL order management systems are also scalable, adapting to the changing needs of the business, making them an ideal choice for businesses looking to scale up or down.
Order Management Services Provided by a 3PL
Now that you understand how order management works, let’s dive into the specific order management services which are offered by many 3PLs.Â
Warehouse Storage
Warehouse storage services are typically a key offering from your potential 3Pl provider. This means they own and operate a warehouse where they store and manage their clients’ inventory. They handle all the receiving, storing, maintaining accurate inventory counts, and organization within this warehouse.Â
Inventory Distribution
For a 3PL it is key to manage the flow of products from the warehouse to your customers. They will often distribute your inventory between multiple warehouses so they offer faster delivery no matter where your customer is located. This includes managing the shipping and handling of products, as well as providing tracking information and delivery updates to customers.
Inventory Management
Whether it is something you can integrate with or not, most providers use inventory management software to track stock levels. This ensures that the necessary items are available to fulfill orders. If this software can integrate into your online store, it will likely automatically update stock levels as orders are placed. This benefit is a large reason why you want to find a 3PL partner who also has a software offering.Â
Picking and Packing
Once an order is placed, the 3PL provider’s team will pick the items from the warehouse shelves, using barcode scanning or other identification methods to ensure that they are picking the correct items and quantities. Once the items are picked, they are packed and prepared for shipment. Many top-tier 3PL use robots and automated conveyor belts to reduce human error and speed up the efficiency of this process.Â
Shipment Tracing and Tracking
Most 3PL providers also handle the shipping and tracking of orders. They create shipping labels, track packages and provide tracking information to the customer so they can follow the package on its way to them. This level of tracking and visibility often offers a large boost to customer satisfaction.Â
Reverse Logistics
When a customer initiates a return, the 3PL provider will typically receive the returned product and inspect it to make sure it is in good condition. If there is an issue with the product, the 3PL provider will contact the customer to resolve it. Once the return is approved, the 3PL provider will then process the return by updating the inventory, and if necessary, restocking the product. They will also refund the customer or issue a store credit, depending on the customer’s preference and the store’s return policy. If needed, they can often handle the process of disposing or refurbishing the products that can’t be sold again within the compliance of any relevant regulations.Â
Need the services of a 3PL? ShipHero to the rescue!Â
Benefits of Letting a 3PL Manage Orders
With an understanding of exactly what is available, you are now armed and dangerous when it comes to sourcing and picking out a 3PL that enhances your business. Here are a few benefits you’ll experience with a strategic 3PL provider in your corner.Â
Integration Throughout the Supply Chain
By letting a 3PL provider manage orders, businesses can integrate their logistics operations with the rest of their supply chain, which can improve efficiency and reduce costs. This integration can also help to improve inventory management and forecasting, allowing businesses to make better decisions about their supply chain.
Cross Platform Fulfillment
3PL providers can handle orders from multiple sales channels such as e-commerce platforms, marketplaces, and brick-and-mortar stores, allowing businesses to manage orders from multiple sources in one place. This means anywhere you sell from, your orders will be processed in one place so now you have visibility into your entire inventory and orders within one location.Â
Greater Customer Experiences
In today’s world, the customer experience is key. That’s because a happy customer is a returning customer. When it comes to shipping a customer favorite is the ability for the customer to track their order as it works its way through your 3PL provider’s processes. Plus, you know the 3PL is motivated to get their order to their doorstep quickly and efficiently because they likely have contracted KPIs to do so.Â
Fast and Efficient Pick and Pack
When advanced automation and robotics are put in place within the picking and packing process, the error becomes greatly reduced. This means that not only do your customers get their orders faster, but you also pay less for it to be shipped out. Especially if your 3PL provider is continually enhancing their warehouse operations with the newest technology.Â
Enhanced Inventory Visibility
With real-time inventory management, businesses have clear visibility into inventory levels, allowing them to make informed decisions. This can help to reduce stockouts and improve inventory forecasting.
Reliable Order Fulfillment
We’ve already talked about a reduction of human error. When 3PL providers have the resources, technology, and expertise to handle the logistics and distribution side of things, it means you and your customer experience more reliable order fulfillment.
Key Takeaways
Third-party logistics order management is an efficient and cost-effective solution for businesses looking to streamline their logistics operations, manage inventory, and fulfill orders. Their strategic knowledge gives you a competitive advantage and amplifies your business. It is a comprehensive service that covers all aspects of logistics management, including receiving orders, processing them, picking and packing products, and shipping them to customers. Plus with real-time inventory management, automated order processing, multi-channel integration, and reporting and analytics tools, businesses now have the knowledge to make more informed decisions more quickly. This allows businesses to focus on growth while leaving the logistical order management process to the experts.Â
3PL Order Management FAQs
What Are the Three Types of 3PL Providers?
Third-party logistics (3PL) providers come in three main types:
- Traditional 3PL: These providers offer a wide range of services, including transportation, warehousing, and distribution. They typically handle the entire logistics process, from receiving products at the warehouse to delivering them to customers.
- Asset-Based 3PL: These providers own and operate their own transportation assets such as trucks, ships and planes. They are specialized in the transportation and logistics of goods and usually handle the delivery and transportation process of the products.
- Niche 3PL: These providers specialize in a specific aspect of logistics, such as hazardous materials handling or temperature-controlled transportation. They are experts in their specific field and provide specialized services to businesses that require it.
What Is the Difference Between 3PL & 4PL?
Third-Party Logistics (3PL) and Fourth-Party Logistics (4PL) are both service providers that assist businesses with logistics and supply chain operations, but they differ in their scope and level of services provided.
3PL providers are responsible for handling specific logistics functions, such as transportation, warehousing, and distribution. They typically handle the entire logistics process, from receiving products at the warehouse to delivering them to customers. They own the resources, technology and expertise to manage the logistics process.
4PL providers act as an integrator that assembles and manages the resources, capabilities, and technology of multiple 3PLs, transportation companies, and other service providers to create a comprehensive logistics solution for the customer. They are often referred to as “logistics integrators” or “lead logistics providers” and they act as the single point of contact for their clients, coordinating all logistics activities and managing all the other service providers involved. They don’t own resources but have the capability to manage them.
Jul 3, 2023 | Blog
If your eCommerce company has gotten so big that you can no longer operate out of your garage, you must engage in warehouse selection to choose a warehouse that stocks your items. You must also choose a warehouse management system (WMS) to keep track of stock levels and sales orders in the warehouses where you keep your merchandise. If you have been running your eCommerce business with Magento, it should be easy to find a WMS and inventory management software package that is compatible with it.
What is a Warehouse Management System for Magento?
Businesses of all sizes use the eCommerce software Magento. It is convenient for one-person operations as well as for big companies that must coordinate among vendors, retailers, warehouses, and customers. Magento is compatible with many warehouse management system (WMS) platforms. A Warehouse Management System (WMS) is an app that works with the devices of the warehouse employees and other parties in the supply chain to ensure accurate picking, packing, order processing, and shipment.
The Intersection of Magento and WMS: A Primer
Magento and WMS work together by integrating data. When you integrate Magento with WMS, your warehouse processes will be streamlined. Every time a customer orders a product from your Magento store, the automated WMS features will update the number of similar items left on the shelf in the warehouse. You can share this information with everyone who needs to know it, such as customers who are tracking their shipments and warehouse employees who are working on purchase orders.
Magento 2 and WMS: Bridging the Gap Between Stock and Sales
Stockouts, which are when stores run out of a popular item, are a nightmare for eCommerce sellers. By keeping track of sales channels in real-time, WMS can prevent stockouts. Warehouse pickers scan the item when they take it off the shelf, and the stock levels automatically update in the warehouse management system (WMS).
How Does Magento Inventory Management Work?
Magento inventory management is one of the most valuable services that Magento offers to eCommerce businesses. It is a set of tools that enable you to see in real-time where the goods are in the supply chain. It automatically updates when a new shipment comes from the supplier. It also shows you which of your warehouse locations is the most appropriate to fulfill each order. You can choose on-premise inventory management software if you want to customize it for the site of your organization. Some businesses also opt for a subscription to Magento’s inventory management content. This way, you do not have to install a lot of browser plugins and extensions or worry about the configuration of the software. Everything automatically stays up-to-date and compatible with JavaScript and Google Maps. This makes for a more streamlined online experience for your employees.
Benefits of Integrating Magento with a WMS
When you integrate Magento with a WMS, you are choosing to partner with experts in the field of stock management and POS installation. You don’t have to worry about buying the license or rights every time a new software solution is released that you want to use. Instead, you can use a powerful and reputable software platform that automatically complies with the rules of the eCommerce industry.
Flexibly Adapt Your Delivery Strategy with Magento WMS
The best thing about Magento-compatible WMS is that it is easy for your staff to use. You can simply change the interface so that employees can click on the name, images, or logo of a product instead of having to match alphanumeric codes or enter them manually. If you change your warehouse layout, the WMS will automatically adapt to it.
Specify Custom Shipping Methods and Rates for Each Warehouse
Effective ERP sometimes requires you to rent space in multiple warehouses, even if your eCommerce company is fairly small. A sufficiently powerful WMS can comply with the rules of multiple warehouses. You will need a versatile WMS that is user-friendly for employees of different warehouses with different types of workflow.
Minimize Delivery Cost by Calculating Shipping Costs Based on Warehouse Location
In order to minimize transport time and keep the price of your items low, you might need to store the same kind of item at more than one warehouse. Dividing your stock across multiple warehouses in different regions creates the best value for you and your customers. This way, there is a lower risk of delays when it comes to shipping merchandise to customers. A sufficiently sophisticated WMS can keep track of the order status at multiple warehouses.
Deliver Products from Multiple Sources Efficiently
If you have an account with a Magento-compatible WMS, you will be able to keep track in real-time of the warehouses receiving your inventory and of warehouse processes such as putaway and fulfillment. This way, there will not be any mixups when it comes to delivering merchandise to customers. You can see a demo of these during a consultation to buy the WMS software.
The Top 10 Best WMS for Magento
The 10 best WMS for Magento are ShipHero, Snap Fulfil WMS, Odoo, Fishbowl, ShipEdge, ShippingEasy, PowerHouse, Pulpo, Amasty, and Nexcess.
ShipHero
ShipHero is the best WMS for your Magento eCommerce business. Whether your merchandise is on individual shelves of warehouses in different states or whether your company owns entire warehouses, ShipHero can keep track of every part of the supply chain.
Customer Analysis and Sales Order Management
ShipHero notifies the relevant warehouse every time a customer places an order. It chooses which warehouse should process the order based on which warehouses have the requested items in stock and how far the merchandise will have to travel to get to the customer.
Order Management System for Magento
By analyzing large volumes of data, ShipHero WMS can ensure that your most popular items do not run out. It can suggest when to reorder, based on its projections. You can even automate the reordering process. It can also reduce the number of items that you must liquidate to make room for other items because they do not sell as anticipated.
Exact Order Fulfillment and Increased Customer Satisfaction
When you automate the warehouse picking and fulfillment processes, it is easier to ensure order accuracy. This way, you do not have to devote time and money to processing returns and this increases customer satisfaction which is good for business and for employee morale.
User Cases and Industries Benefiting from Magento WMS Integration
Small businesses that sell products using Magento benefit from WMS integration, especially when they work with warehouses that are in another state. Magento stores that sell clothing, food items, and consumer electronics benefit from Magento-compatible WMS software.
Magento Warehouse Management System Use Cases
Magento is a versatile eCommerce platform, and its WMS applications are versatile, too. It can automate warehouse processes such as receiving, putaway, fulfillment, and reordering. It can even help warehouse managers make decisions based on data and projections.
Industries Leveraging Magento WMS Integration
Many different industries have been leveraging Magento WMS integration and becoming more efficient while saving on costs. These include industries such as clothing, household goods, computer accessories, and non-perishable food items, among others.
Key Takeaways
Even if your Magento eCommerce business is successful, you could make your job and those of your employees much easier by using a WMS platform that integrates with Magento. You can choose the WMS features you need based on the size of your business and your company’s operations.
Frequently Asked QuestionsÂ
These are some common questions Magento eCommerce store owners ask about using WMS for Magento.
What are the Four Types of Warehouse Management Systems?
The four types of warehouse management systems are standalone, WMS as a module in supply chain management, WMS as a module in enterprise resource management, and cloud-based. Which one you choose depends on which operations your company is responsible for.
How Many Orders Can Magento Handle?
So far, no number of orders has been too many for Magento to handle. It can manage orders for all kinds of businesses, from the smallest to the biggest.
Does Magento Have OMS and What is OMS in Magento?
OMS is order management software. Magento has OMS, but it is quite basic. If you need more advanced OMS, you should buy it as part of a WMS package that integrates with Magento.
Contact ShipHero today for a demo.
Mar 29, 2023 | Blog
Keeping track of inventory levels is an important part of successful order fulfillment. By tracking inventory, you can avoid supply chain disruptions. To ensure accuracy in your fulfillment processes, you must know which products you have in stock, and in what amount in each of your warehouse locations. This requires a streamlined and more efficient inventory management and control strategy. The best way to accomplish this is with inventory management software. The right inventory tracking software can help you avoid errors and other issues and keep up with customer demand.
What Is Inventory Tracking?
Inventory tracking is the systematic approach to monitoring and managing products or items as they move through the supply chain. While smaller businesses might rely on traditional methods like pen and paper or spreadsheets, larger enterprises with multiple warehouse locations often turn to more advanced solutions. These solutions, such as various inventory management systems and software, Â offer real-time tracking capabilities, ensuring that businesses have up-to-date data on their stock levels.
What is Being Tracked?
Inventory tracking encompasses a wide range of products, from raw materials to finished goods ready for shipment. By monitoring the flow of these items, businesses can gain insights into sales trends and make informed decisions about restocking and resource allocation.
Who Uses Inventory Tracking?
Businesses in every industry and in every place in the world use inventory forecasting. It is one of the most efficient tools to help companies and customers of every size save money by avoiding delays and using your company’s resources wisely. Any company that deals with sales and purchases can learn a lot from inventory tracking and can make better decisions about optimization of resources.
What Is an Inventory Tracking System?
An inventory tracking system is an example of a software application or group of software applications that use data reporting and analysis to help businesses know where the items in their inventory are, how long they have been there, and when it is time to order more. Some inventory systems involve scanning codes or SKU numbers on boxes of inventory and updating their locations.
Inventory Tracking Benefits
The advantages of inventory tracking are manifold. Automated systems reduce labor costs, minimize errors, and enhance a business operations overall efficiency. Moreover, with a comprehensive system in place, businesses can also integrate their inventory data with accounting tools, ensuring financial accuracy.
Inventory Tracking Challenges
Inventory tracking is challenging because there are so many moving parts in the supply chain. You must keep track of when to order new parts or supplies and account for how long it will take the suppliers to fulfill your order. Their answer may depend on factors like weather, labor shortages, or availability of raw materials. Likewise, inventory control can only be error-proof if you use a sufficiently sophisticated inventory tracking option. If you keep all of your records with pen and paper, you always run the risk that coworkers will misunderstand your record-keeping system. Likewise, if you manage multiple warehouses, you will need an integrated and automated inventory management system to meet your inventory tracking needs. However, with the right inventory management processes and tracking software, many of these challenges can be mitigated.
Inventory Tracking Process
The inventory tracking process at a warehouse begins when the warehouse receives a new shipment of raw materials, partially assembled product components, or finished products ready for retail sale. The warehouse employees scan the SKU on each item or container or record its identifying data manually. They then follow the instructions, which were set by a manager or by data analytics, about where in the warehouse to store each item. As orders come in, visibility inventory management software the warehouse employees fulfill the order according to the warehouse’s system, whether it is first in first out, last in first out, or some other system.
How to Streamline your Inventory Tracking Process
Automation and data analytics are the keys to success to optimizing the inventory tracking process. By reducing manual interventions, businesses can minimize errors and enhance efficiency. Training staff on the software’s functionalities is also crucial to ensure smooth operations.
Manual vs. Automated Tracking
While manual tracking might suffice for smaller businesses, automation is becoming the industry norm. Automated warehouse management systems offer real-time updates, reduce errors, and are more scalable, making them ideal for growing businesses.
Inventory Tracking Methods
Choosing the best two inventory management methods for your company is an important business decision. Without accurate inventory tracking, errors in order fulfillment can lead to mixups, delays, customer complaints, and financial losses. The best inventory tracking methods rely on automation to update their reorder formulas in real-time. They are the inventory tracking equivalent of navigation apps that know when traffic jams and bad weather are likely to affect your commute and therefore suggest alternate routes.
Inventory Tracking Examples
Analyzing past inventory tracking strategies can offer valuable insights for future planning. By understanding the journey of different products through the supply chain, businesses can also identify trends and areas of improvement and optimize their strategies.
Key Takeaways
- Inventory tracking is essential for businesses of all sizes.
- The choice of tracking method should align with the business’s size and needs.
- Automation is becoming the industry standard, offering real-time updates and enhanced efficiency.
Inventory Tracking FAQs
What Are the Types of Inventory Tracking?
There are several methods, ranging from manual tracking with pen and paper, spreadsheets, to advanced automated systems using inventory tracking software.Â
What Is the Easiest Way to Keep Track of Inventory?
For small businesses, manual methods might be sufficient. However, as the business grows, investing in an automated system becomes crucial.
What Is the Best Program to Keep Track of Inventory?
While there are several options available, ShipHero stands out as a comprehensive solution catering to diverse business needs.
