An Overview of eCommerce Shipping: Tips, Trends and Tricks

What is eCommerce Shipping?

Fulfillment starts as soon as your customer hits the checkout button on the eCommerce platforms and purchases the products in their shopping cart. Once the site confirms the order, the chain moves forward. Small-scale eCommerce stores often store their inventory in their garages. At the same time, as you go up the scale, vendors usually employ the services of inventory storage facilities and warehouses. Upon confirming the purchase, service providers package, label, and ship the products to the destination address.

Shipping can be pretty challenging to handle on your own, especially if you have a growing business. This is the point where third-party logistics (3PL) companies can be a big help. They optimize the fulfillment process and cater to your needs, and even help you minimize logistics costs. Various companies have different shipping policies and shipping rates, such as Amazon Prime, which offers overnight shipping.

But not every business can pull this off. This is why your company’s shipping policy should be based on a combination of your budget and your customers’ needs.

What to Keep in Mind when Shipping

There are many factors that eCommerce merchants have to account for when it comes to shipping. All the seemingly small details contribute to your overall shipping costs and total transit times. These factors ultimately determine customer satisfaction and directly impact your business’s reputation and future growth. Since your company’s eCommerce shipping strategy is so important, it’s worth investing time and resources to conduct proper research. Here are some of the best practices that online stores employ for shipping, to help you decide which one may suit your business best.

Offer Free Shipping

An effective way to reduce shopping cart abandonment is to provide some incentive to your customers. Companies usually use discounts and coupons to their customers for this purpose. Offering free shipping to your customers makes them feel more comfortable about placing an order.

Contrary to what the name might suggest, free shipping isn’t actually free. Either you take the hit and pay for the fees outright, or the fee is absorbed in a way that customers pay for it. You can do this by incorporating shipping costs into the sale price of your products. This way, you can offer free shipping without compromising your own profits.

Charge Real-Time Carrier Rates

Another popular shipping strategy among online vendors is charging real-time carrier rates. This process is transparent and gives your customers a little wiggle room. How? Well, let’s say you partner up with multiple carriers. You can now let customers pick and choose the shipping option that best suits their need. 

Shipping labels like FedEx, USPS and DHL have different shipping costs, and no one carrier offers lower rates across the board – the pricing depends on numerous factors. eCommerce platforms such as Shopify integrate real-time shipping rates of these carriers into their dashboard so that they are easy to handle. Customers can then choose what works for them, whether it is overnight shipping, two-day shipping, or flat-rate mail.

Charge a Flat Rate

If you don’t want the hassle of calculating shipping prices for each package, then flat-rate shipping is another reliable option. As the name suggests, this shipping option charges a single rate for each shipping order, regardless of the size or nature of the product. 

This option is most suitable for businesses that sell a small variety of products with similar dimensions and weights. However, be sure not to set a very high flat rate for the items – it might scare away the customers. Postal services like USPS usually have several flat-rate shipping options.

Offer Local Delivery

If your customer base is near to your inventory storage facility, then offering local delivery is one way to go. Keep in mind, though, that this only works for local customers. You can set up the local delivery zone through the use of zip codes – customers within this area qualify as local customers. 

Suppose you are catering to a large customer base outside your local area. In that case, you can still offer the local customers this option by putting an appropriate button at the checkout. The local delivery option can be set to be free of charge or at a low flat rate, depending on your budget. This option is best for strengthening your local customer base.

How to Calculate Shipping Costs

An essential part of devising your shipping strategy is determining your shipping costs. If you partner up with a shipping label, couriers base their shipping rates on a number of factors. These factors range from the package weight and size to the origin and destination address. The bigger the product is and the farther away you have to send it, the more you’ll typically end up paying for shipping.

Before settling on your company’s shipping rates, be sure to assess the following factors:

Consider your Margins

One thing eCommerce merchants should focus on is their profit margins – they determine the success of your business. Shipping fees are a significant part of the total fulfillment expenses – deal with them improperly, and you could end up losing money. Before you set up the total price of a product, consider all the little expenses like shipping costs, credit card fees, and packaging, in addition to the cost of the product. Your sale price should leave room for profit after taking care of all of these expenses.

Packaging and Marketing

From a historical perspective, packaging and shipping were just ways to get the products to the customer. The up-gradation of technology and the evolution of business strategies have now transformed packaging and shipping into a marketing opportunity. And why not – telling your brands’ story with your product packaging and creating a memorable unboxing experience is a brilliant opportunity. 

Packaging inserts and other items could take the whole experience up a notch when the customer unpacks their order – think of unboxing videos online and the publicity they gather! Of course, this type of marketing is another shipping expense and would add to the total costs.

Packaging Options

While you can utilize packaging for marketing purposes, don’t lose sight of its original purpose – the package still has to securely hold all the goods. Of course, the safety level for each product depends on its nature. For example, you can ship sweaters and other clothing items in poly mailers, and they would be secure. But for fragile items with higher value, you might need to invest in sturdy boxes and maybe even packing peanuts.

While the nature and size of the product help determine your packaging needs, your customers’ values and preferences also need to be accounted for. Eco-friendly packaging options are often pricier than the standard options, but they appeal to the growing number of eco-conscious consumers. This is why it pays to at least provide eco-friendly packaging as an option to customers.

Insurance and Tracking

Insurance and tracking help increase customer loyalty among online shoppers. They help secure your products and provide you with a safety net in case of any mishap. Shipping labels often provide relatively inexpensive or even free options for insurance and tracking. Like UPS and USPS Priority Mail, some carriers offer free coverage for mail orders above a specific amount.

Customs Declaration and Forms

International shipping requires proper customs documentation that details the nature and the size of the shipment. More often than not, international shipping also comes with specific regulations and tariffs. Of course, these fees add up to the total shipping cost. Suppose you are catering to a global customer base. In that case, it’s wise to set your shipping policy so that it includes these costs. If you let the customer know of the customs fee beforehand, they won’t be surprised at the unexpected charges once they receive the parcel.

Should you Offer Free Shipping?

Now that you have an idea of what constitutes the shipping expenditures, the next step is to determine whether to offer free shipping or not. Free shipping options are attractive to customers and directly impact conversion rates, but can your business afford to eat the costs and offer them? Well, several factors determine the feasibility of this decision.

The most important factor to consider is your company’s available budget and revenue. If your profit margins are high, offering free shipping probably won’t hurt you. Moreover, package dimensions, and the destination’s zonal distance are also factors to consider. Don’t forget to further account for the shipping rates of the shipping company you have partnered up with.

So far, we have discussed costs on the business owner’s end. Your customers are another critical determinant of your decision to offer free shipping. For example, if your target audience isn’t really interested in free shipping, then you won’t have to offer it in the first place. Of course, you can only determine how important free shipping is to them after doing some A/B testing. To sum things up, every company’s needs are different. As such, their decision to offer free shipping may vary.

How to Offer Free Shipping Without Reducing Profits

Offering free shipping to your customers might not be feasible for every business. Sometimes, you end up losing more money than you make by taking this route. So, how can you realistically offer free shipping without breaking the bank?

Here are some pointers:

Decide if Shipping is a Marketing Expense or COGS

If you want to offer free shipping, first determine how it affects your business. As stated earlier, you can utilize shipping as a marketing opportunity. If so, then free shipping expenses can be considered as marketing expenses. This is a profitable investment if it drives your sales up. 

If free shipping isn’t doing much for your sales though, then the shipping costs might be an addition to the Cost of Goods Sold (COGS), and you may need to adjust your sale prices accordingly. Of course, new businesses might need to experiment a bit with free shipping to truly understand its impact. Test it first to determine whether the shipping expenses are a marketing expense or COGS.

Offer Free Shipping to Limited Shipping Zones

One way to realistically offer free shipping is to limit the free shipping to specific zip codes and areas. For example, a US-based business might offer domestic free shipping. Still, since shipping to other countries like Canada and Australia comes with tariffs and customs fees, the free shipping offer might not extend to those countries. Shipping carriers base their rates on the zonal distance of the shipment, so it might be expensive to offer free shipping to far-flung areas. The point is to establish your free shipping policy on your carrier’s shipping rates and limit free shipping to nearby areas.

Surcharge your Expedited Rates

To offset your free shipping expenses, you can increase the rates of expedited shipping. This only works if your expedited shipping option is attractive enough. As an example, between free shipping with 10-day transit time and expedited shipping with 2-day transit time, chances are both options will attract a fair share of customers. So, you’ll be able to offer free shipping to the customers by surcharging the expedited shipping rates.

Offer Free Shipping with a Minimum Purchase Amount

Setting a shopping threshold for free shipping is among the best practices employed by eCommerce platforms that offer free shipping. Amazon Prime is such an example. The logic behind it is simple enough. Customers must have a fair number of products in their carts before they can take advantage of free shipping. The profit margin from the sold goods covers the free shipping expenses.

eCommerce shipping FAQs

How do eCommerce Sites Calculate Shipping?

eCommerce sites like Shopify have integrations or built-in shipping cost calculators that determine the total shipping costs based on several factors. These include the shipping partner, package dimensions and weight, the zonal distance between the point of origin and the destination, and the transit time.

How is Shipping Calculated?

You can calculate the total cost of shipping through several determinants – some companies use shipping software for these calculations. These shipping costs include packaging fees, transit fees, and in the case of international shipment, tariffs and customs fees. The transit fees depend on the carrier rates that differ for normal, flat-rate, and expedited shipping options.

How does eCommerce Delivery Work?

eCommerce stores either go for self-fulfillment or employ the services of a third-party logistics (3PL) company. In the latter case, the fulfillment partner handles shipping by teaming up with different couriers. Once the eCommerce store confirms the order, the fulfillment partner sources the product from an inventory storage facility, packs it, and sends it out for shipping. The courier then ships the product to the destination.

What is the Cheapest Way to Ship for a Small Business?

The cheapest shipping option for a small business is the mail service. USPS is a great shipping carrier with affordable rates. If you want to cut down on the transit time, you could partner up with a third-party logistics company – they also sometimes offer discounts.

eCommerce shipping is a vital part of the supply chain, and one of the most expensive stages too. To avoid hefty transit costs, delayed orders, and unhappy customers, optimizing the shipping process is vital. A powerful eCommerce shipping solution like ShipHero can help you meet your business goals and optimize your shipping process.

How Warehouse Management Systems Work for eCommerce Brands

Whether you’re an established eCommerce brand or have just started, you know that the tools you use are important to making your business run. And one of the most important tools you can have is software that works.

The right Warehouse Management System (WMS) will handle automation rules, receiving, picking, packing and rate shopping in just a few simple steps. ShipHero does this by making the complicated, easy – not simple, just easy.

We’ve been working to provide our clients and prospects with more than just awesome software – we want to share our best practices and the lessons our clients have learned as they use our WMS to grow their own brands. If you want to learn more about warehouse management systems, you’ve come to the right place. Read on for a complete guide on warehouse management systems in 2023.

What is Warehouse Management?

Warehouse management is the process of overseeing all operations and activities in a warehouse. This generally includes receiving, picking, packing and shipping goods, planning workloads, training staff and handling customer returns.

While warehouse management is barely visible to customers, it’s integral to ensure goods are delivered on time. Good warehouse management ensures every activity is run as efficiently as possible, from maximizing inventory storage to organizing goods for easy picking to ensuring returns are handled professionally.

However, running a warehouse can be costly, especially for smaller eCommerce businesses. Instead of managing their own warehouses, they sometimes hire third-party logistics (3PL) companies. Outsourcing warehouse operations helps eCommerce businesses focus on expansion and sales instead of spending considerable time and resources to manage inventory and take customer orders. 

What is a Warehouse Management System?

A warehouse management system (WMS) is software that assists you in the warehouse management process. A warehouse management system gives you real-time updates on your inventory levels, warehouse team productivity and order fulfillment progress.

Warehouse management systems are essential for managers because they can use them to gauge work performance and spot improvement areas. They also provide managers with the data and reports to make informed business decisions.

The best warehouse management systems assist your company with five key processes:

Inventory Receiving and Storing

One of the primary purposes of a warehouse is to receive and store inventory items from a manufacturer or distributor. Warehouse management systems let you scan and organize each new item upon arrival and storage, so you’ll know which items have arrived and where they’re stored.

Inventory Tracking

Inventory tracking ensures you get real-time updates on your stock levels. This helps in determining how many items you can sell and whether you should order more items based on accurate forecasts of consumer demand.

As your eCommerce business grows, inventory tracking will become even more important because you may handle hundreds of goods and dozens of different product types simultaneously. Manual inventory tracking is more prone to human error and may result in costly mistakes.

Picking and Packing

When employees pick and pack items, they take the goods from warehouse shelves and pack them for shipping. Warehouse management systems can generate picking lists that instruct your warehouse team to pick items as efficiently as possible.

Your warehouse management system also automatically generates shipping labels, which packers attach to products after packing them.

Shipping

Warehouse management solutions let you track the shipping progress in real time. You can also show the shipping progress to customers so they know where their items are at any time.

Reporting

Your warehouse management system should provide advanced reporting features that cover order fulfillment accuracy, staff inventory forecasting and warehouse expenses. 

Automating report creation means you don’t have to spend much time gathering data. Instead, you can immediately use the insights from these reports to improve your warehouse operations. 

Who Are Warehouse Management Systems For?

Warehouse management systems are useful for any company that operates a warehouse, regardless of industry. Here are examples of industries that can benefit greatly from WMS:

Manufacturing

Manufacturers need to have good warehouse management systems because they have complicated warehouse operations that may involve combining multiple materials into new goods.

A WMS can help manufacturers track each material as they’re sent in for processing and alert the staff to reorder when stocks are running low to keep production running. The system can also regulate production line speed based on consumer demand forecasts, preventing overstock or understock.

Retail and Consumer Goods Chains

Managing a retail chain is challenging because you operate multiple stock rooms in each store. A warehouse management system helps retail business managers by tracking items as they move from your main warehouse to individual stores. It also monitors stock levels in each store and puts orders in whenever an item is running low in stock.

Food and Beverage

Food and beverage warehousing is trickier than most because products often need to be stored at specific temperatures and have expiration dates. A WMS for F&B manages shelf placement to ensure everything is stored in its appropriate places. It also regulates picking and packing to guarantee all items shipped don’t expire before they reach store shelves.

Third-Party Logistics (3PL)

Warehouse management is at the core of every third-party logistics company, and they need a warehouse management system to excel in their job. Many 3PLs use adaptable warehouse management software to meet the various demands of their clients and juggle multiple warehouse operations simultaneously.

Some third-party logistics companies even choose a baseline warehouse management system and develop their own modules according to their needs, creating client-specific dashboards tailored to every job.

Why Should I Use a WMS?

You should use a WMS because manual warehouse management is prone to human error, especially if you run a large eCommerce business.

Here are five other reasons why you should use a WMS:

  1. Enhance Inventory Management Efficiency
    Warehouse management systems improve your inventory management by monitoring its levels, increasing pick and pack efficiency and improving order fulfillment processes. By automating these various inventory management processes, you’ll get all the information needed to run your warehouse smoothly without spending precious time asking around or looking for data.
  2. Improve Customer Happiness
    While customers don’t directly interact with your warehouse, it plays a big part in their satisfaction. Smooth warehouse operations with the help of a WMS means customers receive orders quickly and accurately. Even if their item is defective, a good WMS can help you handle product returns to ensure customers get their replacement goods quickly.
  3. Get Larger Profit Margins
    The right warehouse management software improves your sales and order processing speed without adding new warehouse staff. This means you can process more items and sell more products without a considerable increase in cost, ultimately improving your profit margins.
  4. Gain Insights for Future Improvement
    Warehouse inventory management systems generate reports on essential warehouse performance parameters like order accuracy, orders fulfilled and staff efficiency. By analyzing these reports, your management team can develop plans to improve your eCommerce business further down the road.
  5. Stay Updated With Local Regulations
    In addition to keeping up with customer demand, businesses must also follow local regulations and rules. A good WMS should give you the tools necessary to stay compliant with these regulations by recording real-time data, making your company easier to audit.

How Do Warehouse Management Systems Work?

Warehouse management systems work by monitoring and automating key warehousing processes. Here’s a look at how warehouse management systems help you in those areas:

Inventory Receiving and Shipping

Tracking the goods that enter and exit your warehouse is one of the primary functions of a WMS. For incoming items, the WMS will register them in the system and send the products to the appropriate shelf or container for storage.

For outgoing items, the WMS will show you which shipping service is delivering the products and provide real-time tracking information. The WMS can also show the tracking information to the customer, so they know when their products will arrive.

Inventory Management

A WMS helps you track and manage physical inventory levels in the warehouse. When inventory stock starts to get low, the WMS can notify you to order more from the distributor or supplier before stock runs out.

Picking and Packing Orders

When a customer order comes in, your warehouse crew picks and packs the items to get them ready for shipping. Warehouse management systems create picklists to help your team pick items faster. The WMS also creates shipping labels, so the items can be ready for shipping as soon as they’re packed.

Warehouse Performance Reporting

Real-time warehouse reporting is one of the greatest strengths of a WMS. You can easily get insights into your warehouse’s operation by generating real-time reports. Instead of spending hours gathering data, you can immediately use this information to make informed decisions and improve your warehouse team’s performance.

Advantages of Using a Warehouse Management System

While it may be a considerable investment, a warehouse management system pays for itself in many ways. Here are eight great benefits you’ll get by implementing a WMS:

Inventory Control

Inventory control involves managing your warehouse’s inventory levels to prevent understock and overstock. Automating inventory control through a warehouse management system means you don’t have to spend time checking inventory levels regularly. Instead, your system will notify you when it’s time to order new products.

Traceability

Transparency and traceability are essential for both businesses and customers. Tracking where products are in real-time allows you to identify bottlenecks and delays in the supply chain. On the customer side, real-time product tracking ensures they know when their items are arriving.

Some product safety regulations also require your goods to be easily traceable to prevent fraud and counterfeiting. From a safety standpoint, knowing where a product comes from and where it’s going also makes product recalls easier when necessary.

Improved Customer Service

The relationship might not be immediately clear, but a warehouse management system contributes to customer service. Your WMS gives you real-time updates on how many items are in stock and which ones are out of stock, which means customers likely won’t order something that’s out of stock. 

Warehouse management improvements help you ship products quicker, satisfying your customers’ demands for fast deliveries.

Task Management

There are many tasks in your warehouses or distribution centers, like picking and packing orders, loading trucks and handling returns. Your WMS can create these tasks and assign them to the relevant employees immediately based on where they are in the warehouse. 

Your software’s task management features also prevent workers from walking from one end of the warehouse to another when completing their work by assigning them to well-defined work zones, increasing overall warehouse efficiency.

Containerization

Containerization is when you merge multiple individual shipments into a single container to ship together. You can save on shipping costs by sending multiple items in one big batch. 

Your WMS assists in containerization by choosing which items go into which container, ensuring they stack well and nothing gets crushed or damaged in transit.

Increased Speed of Orders

A warehouse management system increases the overall order processing and fulfillment speed by making product picking, packing and shipping more efficient. You can deliver more items to more people by increasing order speed, increasing total revenue and customer satisfaction.

Labeling

Without a WMS, you may need to create shipping labels manually, which takes a lot of time and effort. A warehouse management system can automatically generate shipping labels, so your warehouse team only needs to attach them to packages before sending them to the carrier.

Labor Tracking

Labor management features provided by a WMS track your warehouse staff performance in real time, giving you insights into how your team works. Tracking labor lets you identify possible logistics bottlenecks, pinpoint improvement areas and learn which employees may need extra training to succeed.

Types of Warehouse Management Systems

There are four warehouse management system types, each with unique benefits and drawbacks. Here’s a look at each WMS type:

Standalone System

A standalone warehouse management system is the most basic WMS in this list because it only offers warehouse management features and nothing else. A standalone WMS is usually installed on-premise, meaning the vendor will come to your warehouse and install a physical server for the WMS.

Standalone warehouse inventory management software is typically the most affordable due to its limited features, but it may not be enough if you need extra functionality from your WMS. Standalone warehouse management systems are best for businesses without a large software budget and limited warehousing needs.

Cloud-Based System

A cloud-based warehouse management system means the vendor provides its services through the Internet without any physical on-premise installations. Cloud WMS users usually pay a subscription fee to use these services instead of an upfront expense, making them more affordable for new businesses without large premises.

Cloud-based WMS is scalable, meaning you can pay for extra accounts and features if necessary. It’s also easier to update since the vendor can do it online. However, as with most cloud-based services, you need a strong and stable Internet connection to make the most out of a cloud-based WMS.

ERP Module

ERP (enterprise resource planning) is a software bundle that merges numerous business functions like accounting, inventory and human resources in one package. It’s a good choice if you want to merge all your company information into one dashboard that’s accessible by all employees.

While ERP systems often have a warehousing or inventory management module, it’s not the system’s core functionality. Additionally, implementing ERP is often expensive and time-consuming, so you may be better off implementing dedicated warehouse management software if you can’t commit to full ERP implementation.

Supply Chain Modules

Supply chain management systems work at a much broader scope than a WMS but generally still provide warehousing features. These modules work best for companies that work with numerous supply chains, like manufacturers and retail businesses.

How to Choose the Best WMS

Choosing the best WMS means picking the one that caters to all of your warehousing needs at a reasonable price. Here are five tips to help you pick the right WMS for your business.

Identify Your Needs

You should first identify what you need out of warehouse inventory management software. Create a list of feature priorities based on your requirements as a guide when shopping for warehouse management systems. Don’t blindly follow the latest warehouse technology trends because what other companies need may not be what your company needs.

Define Your Budget

Ensure you have a budget before shopping for a warehouse management system. Search for popular WMS providers online, and estimate how much you’re willing to spend on the features you need.

Consider Your Company’s Product Demand

These days, manual demand forecasting can be unreliable, and you may find yourself out of stock in periods of high demand or overstocked in periods of low demand. 

If your product demand fluctuates according to the seasons, it might pay to choose a WMS with demand forecasting. A warehouse management system’s demand forecasting can use historical sales to predict popular product demands, letting you increase or reduce orders based on the forecasts.

Research the Vendor

Purchasing a warehouse management system isn’t a one-and-done deal. You need to build a relationship with the vendor because they’ll provide technical support and apply updates regularly. To pick the right vendor, note how helpful their representatives are and how in tune they are with your needs and requirements.

Plan for Scalability

When shopping for warehousing software solutions, make sure they provide you with room to grow. Ask your vendor representative about how much scalability and customizability their software has – this ensures it can meet your business needs even when your company grows.

Key Takeaways

A warehouse management system makes your warehouse processes more efficient through various features like automated reports, pick list generation and shipment tracking.

While a good WMS offers many benefits, it’s often a major financial commitment, so you need to choose the right one before implementing it. To do so, you need to identify your company’s needs, define a budget and pick the right WMS provider that can scale with your business.

Warehouse Management System FAQs

How do you improve warehouse management?

You can improve warehouse management by measuring your current performance and identifying areas for development. From there, you enhance your warehouse management by:

What does a WMS do?

A WMS (warehouse management system) assists you in the warehouse management process by giving you real-time inventory updates, automatic report creation and demand forecasting, among other features.

What’s the cost of a warehouse management system?

The cost of a warehouse management system varies depending on the vendor and the features you choose. Expect to pay at least $1,500/month for an entry-level cloud warehousing system.

Conducting an Inventory Audit

Periodically conducting an inventory audit is an important part of effectively managing an eCommerce business. During an inventory audit, financial records are double-checked against inventory records which is a good way to make sure records are accurate. This may uncover possible issues such as damaged or missing items.

An eCommerce business may perform an inventory audit at any time to check inventory on hand in order to get a better idea of where things stand. Businesses may choose to audit all or part of their inventory periodically. Regular inventory audits can help prevent inventory shrinkage and can identify issues such as SKUs that are consistently off.

How Often Does an Inventory Audit Need to Be Done?

An inventory audit should be done at least annually. An inventory auditor may engage in a variety of inventory audit procedures to confirm that the amount stated as inventory is accurate. An annual audit may be done each year for tax purposes or it may be done to get a clear idea of what products are on hand and when they need to be restocked. An inventory auditor may be someone on staff or a third party from an outside auditing company. 

What Methods are Used to Verify Inventory?

To describe methods used to verify inventory, it’s a good idea to start with your inventory audit objectives. Every inventory audit includes counts of inventory and data analysis and is a way to check inventory to ensure it matches the information within your automation system. Examples of methods that may be used to verify inventory include:

Full Audit

This method involves counting all items in stock, which may be time-consuming. To obtain accurate results from this method, you’ll need to pause the actions of your business while the count takes place. Cutoff testing ensures that nothing goes in or out of the storage areas while the inventory audit is done. This means operations such as shipping and receiving are paused.

Cycle Count

Using this method, you cycle through part of your inventory based on SKU. Selected products are audited each cycle rather than auditing the entire inventory at once. One way to divide inventory for partial auditing is by using ABC analysis. This means grouping items by value such as “A” products are high-value items, “B” products are mid-tier and category “C” consists of the lowest value products. 

ShipHero has a cycle count feature that makes it super easy to execute this inventory method. Check out this video to find out more.

Spot Check Inventory

Another approach is to periodically do a physical inventory of just a few items. Regular spot checks may make it unnecessary to do an audit of your entire inventory very often which may be the best option for large companies with a large number of items in stock.

A partial inventory count may be done periodically to make sure items counted match inventory records, and if they don’t match, a full audit may be done. An eCommerce business must consider not only stock that’s on shelves but also stock that’s in transit to and from the fulfillment center. 

Inventory Auditing Best Practices 

Accurately tracking the value of your inventory helps you to budget for future inventory decisions. Auditing inventory can be time-consuming but devices like barcode scanners can help track inventory electronically. Point-of-sale tracking using SKUs allows for real-time tracking of inventory balances keeping inventory counts up to date and providing important information on what stock needs to be replenished.

Warehouse audit best practices include auditing items in the warehouse and reviewing the effectiveness of warehouse processes. This includes determining whether warehouse operations are complying with safety standards and policies. Having two people count each item and checking that their numbers match is a good way to improve accuracy.

What is an Inventory Findings Report?

Once an inventory audit is completed, an inventory findings report is done to provide detailed information on the value of your inventory which offers clarity on inventory accounting. This report can identify operational errors, help identify any inefficiencies in current inventory procedures and provides information needed to make budgeting decisions such as deciding whether to discontinue certain items that may have a surplus or it can provide insights into where funds could be redirected. Routine inventory audits provide one of the best ways to optimize inventory control.

Does Your eCommerce Business Need to do an Inventory Audit?

If your eCommerce business is small, you may think inventory audits aren’t yet needed, but audits can be beneficial whether your business is large or small. Performing regular inventory checks helps you implement good inventory management practices that will continue to benefit your company as it grows.

When you’re running an eCommerce business, effective inventory management helps you to have a handle on the size and condition of your inventory. Regular audits enable you to make sure that you have what you think you have in stock, and that you have enough inventory without having too much. When you know exactly what’s in stock and where it is, your business will run more smoothly and efficiently for your staff so that they can better serve your clients. 

How to Perform an Accurate Monthly Inventory Report

Are you tired of constantly finding inaccurate inventory counts? Does it seem like your products have a secret life of their own, wandering off into the wild? Fear not, the world of monthly inventory reports can be conquered. Learning how to perform these reports with the accuracy of a seasoned mathematician (or at least, with the accuracy of someone who knows how to use a calculator) is easy. So sit back, relax, and get ready to turn your inventory woes into inventory wows for your organization! 

How to Perform an Accurate Monthly Inventory Report

Here are the steps to perform an accurate monthly inventory report:

#1 Build Inventory List

The first step is to create a comprehensive inventory audit report which includes all of the products in your inventory, along with key information such as SKU numbers, descriptions, and current stock levels. This can be done using inventory management software, spreadsheets, or other tools.

#2 Establish a Timeframe

Next, you need to establish a timeframe for your inventory report. Monthly reports are common, but you can also choose to run reports on a weekly or quarterly basis, depending on your needs.

#3 Choose a Report to Run

There are several different types of inventory reports you can choose from, including physical inventory reports, sales reports, order reports, reorder reports, and forecasting reports. Decide which type of report is most relevant to your needs and the demand of your business.

#4 Run that Report

Once you’ve chosen the type of report you want to run, use your inventory management software or reporting tool to generate the report for the specified timeframe. This report should provide you with a detailed overview of your inventory levels, including how many items you have in stock, which items are selling well, and which items may need to be restocked.

How Often Do You Need Inventory Reports?

The frequency in which inventory report documents should be generated depends on the specific needs and operations of a business. In general, it’s recommended to perform inventory reports at least once a month to ensure that inventory levels are accurate and up-to-date. However, some businesses may need to perform reports more frequently, such as weekly or even daily, if they have a high volume of sales or perishable inventory.

Inventory Reporting Tips

Inventory reporting is a critical component of inventory management, and there are several tips businesses can follow to ensure accurate and efficient reporting. Here are three important tips to keep in mind:

Hire an Inventory Specialist

For businesses with complex inventory needs, hiring an inventory specialist can be a smart investment. These professionals are trained to manage inventory and ensure accurate reporting procedures are in place.

Keep an Organized Stockroom

Maintaining an organized stockroom makes inventory reporting more efficient and accurate. By ensuring products are properly labeled, categorized, and stored, it becomes easier to track inventory levels and avoid errors. An organized stockroom can also help reduce the risk of stockouts, overstocking, and lost inventory.

Audit Inventory Regularly

Regularly auditing inventory is another important practice. By performing spot checks or conducting full audits, businesses can identify discrepancies and correct them before they become larger problems. 

Key Takeaways

Congratulations, you’ve made it to the end of this inventory reporting guide! We hope you’ve gained a deeper understanding of the importance of accurate inventory reporting and how it can help businesses streamline their operations, improve customer service, and optimize their profitability. Remember, accurate inventory reporting is an ongoing process, and it requires regular attention and care. But with the right tools, practices, and mindset, you can turn your inventory woes into inventory wows and take your business to the next level!

Monthly Inventory Report FAQs

What Data Is in an Inventory Report?

An inventory report typically includes a comprehensive list of products or assets in stock, along with their descriptions and relevant details such as quantity and identifying information like serial numbers or SKU codes.

What Are the Methods of Reporting Inventory?

There are two main methods used when reporting inventory: periodic and perpetual. The periodic method involves taking a physical count of inventory at regular intervals and updating the inventory records accordingly. In contrast, the perpetual method involves continuously updating inventory records in real-time using technology such as barcoding or RFID. While the periodic method is simpler and less expensive, the perpetual method provides more accurate insights and timely information about inventory levels and movements.

How Do You Calculate Monthly Inventory Usage?

To calculate monthly inventory usage, begin by taking a physical count of inventory at the beginning and end of the month. Then, subtract the ending inventory count from the beginning inventory count to determine the total inventory usage for the month. Finally, divide the total inventory usage by the number of days in the month to determine the average daily inventory usage. 

What is a 3PL System? Third-Party Logistics Definition and Process

What is a third-party logistics provider (3PL) and how could it improve your business? In a world of continual shipping restraints and high customer expectations, a 3PL could be your solution. Below we will detail exactly what you can expect from using a 3PL and the benefits you’ll gain when using one for your business. Let’s dive in! 

What is a 3PL?

A 3PL is a company that offers outsourced logistics and supply chain management services to businesses. These services can include transportation, warehousing, inventory management, and other related functions. When contracting with 3PLs you are provided a cost-effective solution for companies that do not want to invest in their own logistics infrastructure, allowing them to focus on their core competencies. Have you ever felt unsure of what to do next when you encounter a logistical problem? That’s another area 3PLs can help. They often have specialized expertise and technology so you can optimize your supply chain operations and improve efficiency.

Third-Party Logistics Definition, Process, & Resources

The infrastructure within a 3PL is rather impressive. They have poured their revenue into streamlining logistical operations with technology many others couldn’t afford to utilize if they tried to create their own logistics infrastructure. 

With this infrastructure, they utilize a wide range of processes and resources to manage logistics and supply chain operations for their clients. These processes can include: 

  • Transportation management involves coordinating the movement of goods by road, rail, air, or sea. 
  • Warehousing and distribution, which involves storing and distributing goods in an efficient and cost-effective manner. 
  • Inventory management involves tracking and managing stock levels to ensure that products are available when customers need them.

To support these processes, 3PLs often invest in sophisticated technology. These technologies allow them to automate and streamline logistics operations, so they can provide real-time visibility into inventory levels, delivery schedules, and other key metrics to their clients. Often, they will also utilize a wide range of resources, such as a fleet of vehicles, warehouses, and equipment, to support their logistical processes. These technologies and resources work in tandem with a skilled workforce that includes logistics experts, transportation planners, warehouse managers, and inventory analysts who work to optimize their client’s supply chain operations.

Lastly, a main part of most 3PL processes includes working closely with their clients to understand their specific logistical needs and to develop customized solutions that align with their business goals. They also continuously monitor and analyze logistics trends and market conditions to identify opportunities for cost savings and process improvements. Basically, they are like a logistics superhero your business can call upon to make their logistical operations as efficient as possible! 

Third-Party Logistics (3PL) Basics

When you’re setting up your business with a 3PL provider, they’ll need some basic information from you in order to get things moving. They’ll need to know all about the products you’re shipping, like their dimensions, weights, and any special handling requirements. They’ll also want to know your current and projected shipping volume, so they can plan accordingly. Additionally, they’ll need to know your preferred shipping methods and carrier preferences, and any specific delivery requirements, restrictions, or compliance requirements you might have. 

Are 3rd-Party Logistics the Same as Order Fulfillment?

Third-party logistics is a service in which a company outsources its logistics and distribution functions to a third-party provider. This provider takes on the responsibility for all or some of the company’s logistics operations, such as transportation, warehousing, and distribution.

Order fulfillment, on the other hand, refers to the process of receiving, processing, and delivering customer orders. This process includes tasks such as receiving the order, picking and packing the items, and shipping the order to the customer. Order fulfillment can be handled by a company’s own logistics and distribution team or by a third-party provider.

In summary, 3PL is a broader term that encompasses all logistics and distribution functions, while order fulfillment is a specific aspect of logistics that refers to the process of fulfilling customer orders. A company may use a 3PL provider for both logistics and order fulfillment, or it may handle logistics in-house and use a separate 3PL provider for order fulfillment.

3PL Services vs. Drop Shipping

Third-party logistics companies offer a wide range of benefits over traditional drop shipping methods. One of the biggest benefits of 3PL services is the level of control and visibility they provide. With a 3PL provider, businesses have real-time access to inventory levels, shipping costs and information, and other logistics data, allowing them to make informed decisions about their entire supply chain. This level of control and visibility is often not possible with drop shipping, where businesses may have limited visibility into the logistics process. 3PL providers also bring specialized knowledge and expertise in logistics and supply chain management. They have the resources, technology and experience to optimize the entire logistics process, which can result in cost savings, improved efficiency, and increased competitiveness in the market.

Benefits of Third-Party Logistics

Are you tired of spending countless hours and resources managing logistics and supply chain operations for your business? Are you looking for a way to streamline your logistics processes and improve efficiency? Then look no further than third-party logistics. 

By outsourcing logistics and supply chain management to a 3PL, you can free up valuable time and resources to focus on your business’s core competencies. A 3PL can handle the transportation, warehousing, and inventory management on your behalf, allowing you to focus on growing your business.

They can also help you save money by finding more cost-effective solutions for logistics and supply chain management. They have the expertise and technology to optimize logistics operations and improve efficiency, which can result in significant cost savings for your business.

Moreover, a 3PL can help you improve delivery times and increase customer satisfaction by optimizing logistics operations to meet customer demands. They can also help you improve inventory management by implementing inventory management systems that provide real-time visibility into inventory levels and stock management.

By outsourcing logistics and supply chain management, you can also take advantage of their networks of resources, such as transportation and warehousing facilities, and their skilled workforce, which includes logistics experts, transportation planners, and inventory analysts. Partnering with a 3PL will help your business grow. Instead of spending precious time and revenue packing orders, you can get those same orders to your clients faster and cheaper! 

Will Your Business Benefit From Third-Party Logistics?

Here are several signs that indicate a business could benefit from using a third-party logistics provider: 

  1. Lack of logistics expertise: If your business does not have the necessary expertise in logistics and supply chain management, it may be beneficial to outsource these functions to a 3PL.
  2. Capacity constraints: If your business is experiencing growth and is struggling to keep up with the demand for logistics services, a 3PL can provide additional capacity and support.
  3. High logistics costs: If your business is spending a significant amount of money on logistics and supply chain management, a 3PL may help you reduce costs by finding more efficient solutions.
  4. Difficulty in meeting customer demands: If your business is struggling to meet customer demands for delivery, a 3PL can help you optimize your logistics operations to improve delivery times and increase customer satisfaction.
  5. Difficulty in tracking and managing inventory: If your business is struggling to keep track of inventory levels and manage stock, a 3PL can help you implement inventory management systems to improve visibility and control.
  6. Difficulty in managing returns: If your business is struggling to manage returns and reverse logistics, a 3PL can help you handle these processes more efficiently.

If any of these sound familiar, your business will absolutely benefit from a third-party logistics solution! 

The Third-Party Logistics Process

Are you curious about the inner workings of a 3PL fulfillment center? It can be difficult to understand the process if you’re new to outsourcing shipping. But the truth is, the 3PL fulfillment process is not as mysterious as it may seem. Let’s dive into the ins and outs of what happens in a 3PL eCommerce warehouse from the moment a customer clicks “submit order” on your online store to the final delivery. 

eCommerce Platform Integration

An eCommerce platform is the software that powers your online store. Many 3PL companies have an eCommerce platform integration that will connect seamlessly with your store. This means when a customer is ready to check out and provides their billing and shipping information, this information is then processed by your 3PL partner. It goes to the fulfillment center where it is received and the order begins its journey. 

Inventory Management

As the 3PL provider begins to check the inventory for the order they will often consult inventory management software which is usually connected to both your eCommerce platform and your overall inventory. That way the 3PL provider can know right away if the product is available, and can update stocking levels for you both to view.  

Picking, Packing, and Shipping

Once the inventory is confirmed, the 3PL provider’s team will pick the items from the warehouse shelves. They use barcode scanning or other identification methods to ensure that they are picking the correct items and quantities. After the items are picked, they are packed and prepared for shipment. This may include packaging the items in protective material, creating shipping labels and invoices, and any other necessary preparation for shipping. After the order is packed, the 3PL provider will ship the order to the customer using the shipping method specified on the order. The 3PL provider may also provide tracking information to the customer so they can track their order during transit.

Same-Day Shipping

To achieve same-day shipping, a 3PL company requires a combination of strategic warehouse locations, fast and efficient order processing, real-time inventory management, expedited shipping options, and effective communication with the customer. Having strategically located warehouses that are close to major population centers allows the 3PL provider to quickly and efficiently ship items to customers within a certain radius. To achieve same-day shipping, the 3PL provider typically offers expedited shipping options such as overnight delivery or express shipping. 

Reverse Logistics

When a customer initiates a return, the 3PL provider will typically receive the returned product and inspect it to make sure it’s in good condition. If there’s 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. 

Key Takeaways

Convinced yet? We know now that 3PLs stand out from other logistical solutions because they offer tailored solutions, specialized expertise, scalability, sophisticated technology, access to resources and handle reverse logistics processes. Plus they work closely with their clients to understand their specific logistics needs and develop customized solutions that align with their business goals. Which means you have more time to become the next big thing! 

What Is a 3PL System FAQs

What is the Role of 3PL in a Company?

The main role of a 3PL is to handle the logistics functions that a company does not want to handle or cannot handle in-house. This can include transportation, warehousing, and distribution, as well as other logistics-related services such as inventory management, order fulfillment, and reverse logistics. By outsourcing logistics and distribution to a 3PL provider, a company can focus on its core competencies and business operations. This can help the company to save costs, improve efficiency, and increase its competitiveness in the market.

How Many Types of 3PLs Are There?

There are four types of 3PLs. First-party logistics (1PL) refers to in-house transportation services where a company handles its own logistics and distribution functions without the involvement of any additional parties, such as a florist using their own delivery van to drop off purchases to local buyers. Second-party logistics (2PL) involves the use of outside logistics providers, such as courier services like USPS, FedEx, or UPS, which are not integrated with the company when contracted. Third-party logistics companies create an integrated system that allows for real-time data sharing between the company and the 3PL, resulting in a streamlined, efficient, and reliable long-term solution in complete synchronicity with the business. Fourth-party logistics (4PL) is much like a 3PL, but logistically the company’s relationship with the consumer is often brokered by a middleman.  

A Complete Guide to Warehouse Management Systems (WMS)

What is Warehouse Management?

Warehouse management is the process of overseeing all operations and activities in a warehouse. This generally includes receiving, picking, packing and shipping goods, planning workloads, training staff and handling customer returns.

While warehouse management is barely visible to customers, it’s integral to ensure goods are delivered on time. Good warehouse management ensures every activity is run as efficiently as possible, from maximizing inventory storage to organizing goods for easy picking to ensuring returns are handled professionally.

However, running a warehouse can be costly, especially for smaller eCommerce businesses. Instead of managing their own warehouses, they sometimes hire third-party logistics (3PL) companies. Outsourcing warehouse operations helps eCommerce businesses focus on expansion and sales instead of spending considerable time and resources to manage inventory and take customer orders. 

What is a Warehouse Management System?

A warehouse management system (WMS) is software that assists you in the warehouse management process. A warehouse management system gives you real-time updates on your inventory levels, warehouse team productivity and order fulfillment progress.

Warehouse management systems are essential for managers because they can use them to gauge work performance and spot improvement areas. They also provide managers with the data and reports to make informed business decisions.

The best warehouse management systems assist your company with five key processes:

Inventory Receiving and Storing

One of the primary purposes of a warehouse is to receive and store inventory items from a manufacturer or distributor. Warehouse management systems let you scan and organize each new item upon arrival and storage, so you’ll know which items have arrived and where they’re stored.

Inventory Tracking

Inventory tracking ensures you get real-time updates on your stock levels. This helps in determining how many items you can sell and whether you should order more items based on accurate forecasts of consumer demand.

As your eCommerce business grows, inventory tracking will become even more important because you may handle hundreds of goods and dozens of different product types simultaneously. Manual inventory tracking is more prone to human error and may result in costly mistakes.

Picking and Packing

When employees pick and pack items, they take the goods from warehouse shelves and pack them for shipping. Warehouse management systems can generate picking lists that instruct your warehouse team to pick items as efficiently as possible.

Your warehouse management system also automatically generates shipping labels, which packers attach to products after packing them.

Shipping

Warehouse management solutions let you track the shipping progress in real time. You can also show the shipping progress to customers so they know where their items are at any time.

Reporting

Your warehouse management system should provide advanced reporting features that cover order fulfillment accuracy, inventory forecasting and warehouse expenses. 

Automating report creation means you don’t have to spend much time gathering data. Instead, you can immediately use the insights from these reports to improve your warehouse operations. 

Why Should I Use a WMS?

You should use a WMS because manual warehouse management is prone to human error, especially if you run a large eCommerce business.

Here are five other reasons why you should use a WMS:

Enhance Inventory Management Efficiency

Warehouse management systems improve your inventory management by monitoring its levels, increasing pick and pack efficiency and improving order fulfillment processes. By automating these various inventory management processes, you’ll get all the information needed to run your warehouse smoothly without spending precious time asking around or looking for data.

Improve Customer Happiness

While customers don’t directly interact with your warehouse, it plays a big part in their satisfaction. Smooth warehouse operations with the help of a WMS means customers receive orders quickly and accurately. Even if their item is defective, a good WMS can help you handle product returns to ensure customers get their replacement goods quickly.

Get Larger Profit Margins

The right warehouse management software improves your sales and order processing speed without adding new warehouse staff. This means you can process more items and sell more products without a considerable increase in cost, ultimately improving your profit margins.

Gain Insights for Future Improvement

Warehouse inventory management systems generate reports on essential warehouse performance parameters like order accuracy, orders fulfilled and staff efficiency. By analyzing these reports, your management team can develop plans to improve your eCommerce business further down the road.

Stay Updated With Local Regulations

In addition to keeping up with customer demand, businesses must also follow local regulations and rules. A good WMS should give you the tools necessary to stay compliant with these regulations by recording real-time data, making your company easier to audit.

How Do Warehouse Management Systems Work?

Warehouse management systems work by monitoring and automating key warehousing processes. Here’s a look at how warehouse management systems help you in those areas:

Inventory Receiving and Shipping

Tracking the goods that enter and exit your warehouse is one of the primary functions of a WMS. 

For incoming items, the WMS will register them in the system and send the products to the appropriate shelf or container for storage.

For outgoing items, the WMS will show you which shipping service is delivering the products and provide real-time tracking information. The WMS can also show the tracking information to the customer, so they know when their products will arrive.

Inventory Management

A WMS helps you track and manage physical inventory levels in the warehouse. When inventory stock starts to get low, the WMS can notify you to order more from the distributor or supplier before stock runs out.

Picking and Packing Orders

When a customer order comes in, your warehouse crew picks and packs the items to get them ready for shipping. Warehouse management systems create picklists to help your team pick items faster. The WMS also creates shipping labels, so the items can be ready for shipping as soon as they’re packed.

Warehouse Performance Reporting

Real-time warehouse reporting is one of the greatest strengths of a WMS. You can easily get insights into your warehouse’s operation by generating real-time reports. Instead of spending hours gathering data, you can immediately use this information to make informed decisions and improve your warehouse team’s performance.

Advantages of Using a Warehouse Management System

While it may be a considerable investment, a warehouse management system pays for itself in many ways. Here are eight great benefits you’ll get by implementing a WMS:

Inventory Control

Inventory control involves managing your warehouse’s inventory levels to prevent understock and overstock. Automating inventory control through a warehouse management system means you don’t have to spend time checking inventory levels regularly. Instead, your system will notify you when it’s time to order new products.

Traceability

Transparency and traceability are essential for both businesses and customers. Tracking where products are in real-time allows you to identify bottlenecks and delays in the supply chain. On the customer side, real-time product tracking ensures they know when their items are arriving.

Some product safety regulations also require your goods to be easily traceable to prevent fraud and counterfeiting. From a safety standpoint, knowing where a product comes from and where it’s going also makes product recalls easier when necessary.

Improved Customer Service

The relationship might not be immediately clear, but a warehouse management system contributes to customer service. Your WMS gives you real-time updates on how many items are in stock and which ones are out of stock, which means customers likely won’t order something that’s out of stock. 

Warehouse management improvements help you ship products quicker, satisfying your customers’ demands for fast deliveries.

Task Management

There are many tasks in your warehouses or distribution centers, like picking and packing orders, loading trucks and handling returns. Your WMS can create these tasks and assign them to the relevant employees immediately based on where they are in the warehouse. 

Your software’s task management features also prevent workers from walking from one end of the warehouse to another when completing their work by assigning them to well-defined work zones, increasing overall warehouse efficiency.

Containerization

Containerization is when you merge multiple individual shipments into a single container to ship together. You can save on shipping costs by sending multiple items in one big batch. 

Your WMS assists in containerization by choosing which items go into which container, ensuring they stack well and nothing gets crushed or damaged in transit.

Increased Speed of Orders

A warehouse management system increases the overall order processing and fulfillment speed by making product picking, packing and shipping more efficient. You can deliver more items to more people by increasing order speed, increasing total revenue and customer satisfaction.

Labeling

Without a WMS, you may need to create shipping labels manually, which takes a lot of time and effort. A warehouse management system can automatically generate shipping labels, so your warehouse team only needs to attach them to packages before sending them to the carrier.

Labor Tracking

Labor management features provided by a WMS track your warehouse staff performance in real time, giving you insights into how your team works. Tracking labor lets you identify possible logistics bottlenecks, pinpoint improvement areas and learn which employees may need extra training to succeed.

Types of Warehouse Management Systems

There are four warehouse management system types, each with unique benefits and drawbacks. Here’s a look at each WMS type:

Standalone System

A standalone warehouse management system is the most basic WMS in this list because it only offers warehouse management features and nothing else. A standalone WMS is usually installed on-site, meaning the vendor will come to your warehouse and install a physical server for the WMS.

Standalone warehouse inventory management software is typically the most affordable due to its limited features, but it may not be enough if you need extra functionality from your WMS. Standalone warehouse management systems are best for businesses without a large software budget and limited warehousing needs.

Cloud-Based System

A cloud-based warehouse management system means the vendor provides its services through the Internet without any physical on-premise installations. Cloud WMS users usually pay a subscription fee to use these services instead of an upfront expense, making them more affordable for new businesses without large premises.

Cloud-based WMS is scalable, meaning you can pay for extra accounts and features if necessary. It’s also easier to update since the vendor can do it online. However, as with most cloud-based services, you need a strong and stable Internet connection to make the most out of a cloud-based WMS.

ERP Module

ERP (enterprise resource planning) is a software bundle that merges numerous business functions like accounting, inventory and human resources in one package. It’s a good choice if you want to merge all your company information into one dashboard that’s accessible by all employees.

While ERP systems often have a warehousing or inventory management module, it’s not the system’s core functionality. Additionally, implementing ERP is often expensive and time-consuming, so you may be better off implementing dedicated warehouse management software if you can’t commit to full ERP implementation.

Supply Chain Modules

Supply chain management systems work at a much broader scope than a WMS but generally still provide warehousing features. These modules work best for companies that work with numerous supply chains, like manufacturers and retail businesses.

How to Choose the Best WMS

Choosing the best WMS means picking the one that caters to all of your warehousing needs at a reasonable price. Here are five tips to help you pick the right WMS for your business.

Identify Your Needs

You should first identify what you need out of warehouse inventory management software. Create a list of feature priorities based on your requirements as a guide when shopping for warehouse management systems. Don’t blindly follow the latest warehouse technology trends because what other companies need may not be what your company needs.

Define Your Budget

Ensure you have a budget before shopping for a warehouse management system. Search for popular WMS providers online, and estimate how much you’re willing to spend on the features you need.

Consider Your Company’s Product Demand

These days, manual demand forecasting can be unreliable, and you may find yourself out of stock in periods of high demand or overstocked in periods of low demand. 

If your product demand fluctuates according to the seasons, it might pay to choose a WMS with demand forecasting. A warehouse management system’s demand forecasting can use historical sales to predict popular product demands, letting you increase or reduce orders based on the forecasts.

Research the Vendor

Purchasing a warehouse management system isn’t a one-and-done deal. You need to build a relationship with the vendor because they’ll provide technical support and apply updates regularly. To pick the right vendor, note how helpful their representatives are and how in tune they are with your needs and requirements.

Plan for Scalability

When shopping for warehousing software solutions, make sure they provide you with room to grow. Ask your vendor representative about how much scalability and customizability their software has – this ensures it can meet your business needs even when your company grows.

Key Takeaways

A warehouse management system makes your warehouse processes more efficient through various features like automated reports, pick list generation and shipment tracking.

While a good WMS offers many benefits, it’s often a major financial commitment, so you need to choose the right one before implementing it. To do so, you need to identify your company’s needs, define a budget and pick the right WMS provider that can scale with your business.

Warehouse Management System FAQs

How do you Improve Warehouse Management?

You can improve warehouse management by measuring your current performance and identifying areas for development. From there, you enhance your warehouse management by:

What Does a WMS Do?

A WMS (warehouse management system) assists you in the warehouse management process by giving you real-time inventory updates, automatic report creation and demand forecasting, among other features.

What’s the Cost of a Warehouse Management System?

The cost of a warehouse management system varies depending on the vendor and the features you choose.

Compare ShipHero vs Mintsoft  |  Which Should I Choose?

Compare ShipHero vs Mintsoft | Which Should I Choose?

ShipHero vs. Mintsoft: Which Should I Choose?

If you’re in the warehouse management software (WMS) market, you might be weighing the pros and cons of ShipHero and Mintsoft. To make an informed decision, keep reading to explore the features and benefits of each provider and see which one fits your business needs.

Overview of ShipHero

ShipHero offers robust warehouse management software, often named as the top option in the market by third-party reviewers like G2. With features like inventory management, sales reporting, and picker and packer efficiency tracking, their WMS streamlines warehouse operations as effortless, one-click integrations for order and return management with major eCommerce platforms.

In addition to WMS, ShipHero offers end-to-end eCommerce fulfillment services, using nine fulfillment centers across North America for timely product delivery. You can simply send your products to a ShipHero warehouse, and they take it from there.

Pros of ShipHero:

  • Comprehensive WMS covering inventory, order management, and reporting.
  • Automation rules for faster picking and packing.
  • Integration with leading eCommerce platforms.
  • End-to-end eCommerce fulfillment services are also available.
  • Robust inventory tracking with barcoding support.

Bottom Line:

ShipHero’s powerful Warehouse Management Software streamlines warehouse operations, integrates with major eCommerce platforms, and offers automation features for faster processing. Businesses can rely on ShipHero to manage their inventory, orders, and shipping, making it a convenient and efficient choice for eCommerce operations.

Overview of Mintsoft

Mintsoft is a cloud-based order fulfillment software designed to assist eCommerce businesses in meeting customers’ demands across multiple sales channels. 

Based in the UK, Mintsoft offers over 60 integrations with online shopping platforms and more than 80 courier integrations, making it compatible with many partners. With its automation capabilities, Mintsoft provides real-time visibility and traceability of inventory that can be accessed from any location.

Pros of Mintsoft:

  • Centralized order processing and fulfillment.
  • Warehouse management tools for efficient space utilization.
  • Integration with over 60 online shopping platforms.
  • Streamlined order management for high-order volume scenarios.

Bottom Line:

Mintsoft’s strength is its automation capability that enhances order fulfillment accuracy and efficiency. It also provides real-time visibility into inventory and traceability from anywhere, helping businesses manage their operations more effectively.

ShipHero VS. Mintsoft

ShipHero and Mintsoft offer similar functionalities such as inventory management, warehouse management, order processing, and fulfillment. However, ShipHero excels in extensive integrations, sales forecasting, and end-to-end control. Mintsoft distinguishes itself by utilizing efficient warehouse space and centralized order processing. These two solutions will ultimately depend on your specific business requirements and priorities.

Inventory Management:

ShipHero: Its strengths lie in its extensive integrations, enabling seamless synchronization of inventory data with various eCommerce platforms and shipping carriers.

Mintsoft: They focus on warehouse space optimization, making it suitable for businesses looking to maximize space efficiency.

Warehouse Management:

ShipHero: They stand out with an extensive integration network, empowering businesses with seamless connectivity to eCommerce platforms, shipping couriers, and industry leaders.

Mintsoft: Their warehouse management tools optimize space utilization and offer real-time reports.

Order Processing and Fulfillment:

ShipHero: They streamline order processing and fulfillment with automation rules for faster picking and packing. ShipHero’s extensive integration ecosystem simplifies order processing by connecting seamlessly with various eCommerce platforms, streamlining the entire order fulfillment process.

Mintsoft: They focus on centralized order processing and a user-friendly order management tool that may appeal to businesses with high-order volume scenarios.

Integration Ecosystem:

ShipHero: Their strength is in their diversity and breadth of integrations, ensuring smooth data flow across the eCommerce ecosystem.

Mintsoft: While Mintsoft provides integrations, it will need to expand its integration ecosystem to match ShipHero’s connectivity options.

ShipHero: The Warehouse Management Powerhouse

  1. Integration Prowess: ShipHero excels in providing extensive eCommerce integrations, offering seamless connectivity with major platforms and shipping carriers.
  2. Robust Reporting: The platform’s advanced sales forecasting tools empower businesses to make data-driven decisions, potentially improving profits and customer satisfaction.
  3. All-in-One WMS: ShipHero’s end-to-end control and visibility features, including stock monitoring and AI-driven packaging recommendations, make it a comprehensive solution for warehouse management.
  4. 3PL and Brand-level Solutions: ShipHero’s WMS is perfect for eCommerce brands and 3PLs managing multiple accounts. It was designed to handle all your warehouse needs, regardless of volume. 

Who Should Choose ShipHero:

ShipHero is an excellent choice for businesses that value smooth integration with eCommerce platforms and shipping carriers, and it’s particularly useful for those who require advanced features such as sales forecasting to enhance their inventory management. 

If you need a comprehensive solution that provides complete control and transparency over your warehouse operations, from stock monitoring to packaging recommendations, ShipHero is the perfect fit for your business.

Bottom Line:

Highly adaptable and priced transparently, ShipHero is the preferred choice for businesses seeking extensive eCommerce integrations, advanced features like sales forecasting, and end-to-end control over their warehouse operations. 

Mintsoft: The Challenger in Warehouse Management

  1. Maximizes the use of warehouse space to improve the efficiency of storage.
  2. Provides visibility and traceability of inventory.
  3. Integrates with 60+ online shopping platforms and 80+ courier services through partners.

Who Should Choose Mintsoft:

Mintsoft presents a viable option for businesses seeking a warehouse management system that can effectively optimize space utilization and centralize order processing. Those looking to streamline operations across particular sales channels can benefit from Mintsoft’s integration options.

Bottom Line:

Mintsoft is a warehouse management system focusing on specific features like warehouse space optimization and centralized order processing. However, compared to ShipHero, some might perceive it as offering relatively less value. While Mintsoft provides automation capabilities and a range of integrations, its system might face challenges computing all the features together. For businesses seeking a more comprehensive solution with extensive eCommerce integrations, advanced features like sales forecasting, and complete control over warehouse operations, ShipHero could be a better choice, as it offers superior overall value.

Key Takeaways

  • ShipHero offers a comprehensive Warehouse Management System with inventory, order management, and reporting features. It has extensive integrations with major eCommerce platforms and automated rules for faster picking and packing.
  • ShipHero provides end-to-end eCommerce fulfillment services across nine fulfillment centers in North America.
  • ShipHero stands out for its wide integrations, sales forecasting capabilities, and end-to-end control.
  • Mintsoft is a cloud-based order fulfillment software that provides centralized order processing and efficient warehouse space utilization. It integrates with over 60 online shopping platforms, enabling businesses to manage orders from multiple channels.
  • Mintsoft’s strength lies in its automation capabilities, space optimization tools, and 3PL management.
  • Businesses should choose based on their specific requirements — whether they need integration prowess or process optimization features offered by the two providers.

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ShipHero vs. Mintsoft FAQs

What does ShipHero’s warehouse management software do?

ShipHero’s warehouse management software helps you throughout the fulfillment process, from receiving to shipping. It gives you robust order tracking, real-time inventory monitoring, sales reporting, and more.

Does ShipHero compare with Mintsoft?

ShipHero does compare with Mintsoft due to their similar features. However, ShipHero has the edge in the much larger number of integrations it offers and its all-in-one pricing model.

Does ShipHero have an open API?

ShipHero has an open API that lets you build solutions and integrations based on ShipHero’s platform.

Compare ShipHero vs. Linnworks | Which eCommerce Solution Is Best for Your Business?

Compare ShipHero vs. Linnworks | Which eCommerce Solution Is Best for Your Business?

ShipHero vs. Linnworks: Which Should I Choose?

ShipHero and Linnworks are two popular options for eCommerce order and inventory management. Both services eliminate time-consuming manual processes but differ in a few key ways. 

Keep reading to learn more about ShipHero and Linnworks and what sets each service apart.

ShipHero Overview

ShipHero is a comprehensive warehouse management system (WMS). Its WMS software is packed with features to streamline the entire warehouse management and fulfillment process. These include order picking, packing, shipping, inventory management, returns processing, rate shopping, automation, and more. 

Setting ShipHero apart is its robust integration ecosystem, including partnerships with major players like Shopify Plus, WooCommerce, DHL Express, UPS, NetSuite, and Loop.

Pros of ShipHero:

  • Transparent pricing with monthly subscriptions and no contracts
  • Intuitive and user-friendly interface
  • Comprehensive onboarding with weekly calls
  • Extensive knowledge base with how-to articles
  • Exceptional customer service
  • ShipHero Academy, a video resource for common processes and procedures

Bottom Line 

ShipHero has become the number one warehouse management system of choice for many businesses looking to streamline their fulfillment process. Through its advanced features and integration partnerships, ShipHero provides an efficient and profitable warehouse solution to help any business run more efficiently and cost-effectively. 

Linnworks Overview

Linnworks is an inventory and order management software designed to automate key processes in eCommerce. It operates as a cloud-based solution selling across multiple channels.

Linnworks tools manage warehouse operations, order processing, fulfillment, and shipping. Additionally, it provides real-time inventory tracking to gain insights into sales performance and forecast demand, preventing stockouts and overstocking.

Pros of Linnworks:

  • Multichannel listings and inventory forecasting
  • Round-the-clock live phone support
  • Rich resource library with blogs, webinars, and white papers

Bottom Line 

Linnworks excels in inventory and order management, making it a valuable choice for businesses seeking to optimize inventory and sales metrics.

ShipHero vs. Linnworks

ShipHero and Linnworks WMS are powerful software solutions, and while they share some common goals, significant differences between the two platforms can impact your choice. Here are some primary differences:

Location and Market Focus:

ShipHero: Based in North America, ShipHero caters to a global market including the UK, Europe, Australia and South America. They have a broader geographic reach and are a better fit for businesses with international operations.

Linnworks: Headquartered in the United Kingdom and has a strong presence in Europe. It is well-suited for businesses primarily operating in Europe and the UK.

Warehouse Management Focus:

ShipHero: Places strongly emphasize warehouse management with features such as picking, packing, shipping, inventory management, returns processing, rate shopping, automation, and more. Their WMS is ideal for businesses with complex warehousing needs.

Linnworks: Primarily an inventory and order management software. While they offer comprehensive features for order processing and inventory tracking, they could all be more granular when it comes to warehouse management capabilities.

Integration Ecosystem:

ShipHero: Has a robust integration ecosystem, partnering with major players like Shopify Plus, WooCommerce, DHL Express, UPS, NetSuite, and Loop. Its extensive integrations support various aspects of eCommerce operations.

Linnworks: Offers integrations with many eCommerce platforms, marketplaces, and shipping carriers that provide flexibility in managing multichannel sales.

Customer Support and Resources:

ShipHero: Offers comprehensive customer support with an extensive knowledge base, how-to articles, and videos. And they have a reputation for excellent customer service.

Linnworks: Offers phone support and resource library with blogs, webinars, and white papers, but customer service lacks personalization and comprehensiveness.

ShipHero: The Powerhouse of Warehouse Management

  1. Comprehensive Warehouse Management: ShipHero is a Warehouse Management System (WMS) first and foremost. They provide end-to-end solutions for managing your warehouse operations effectively.
  2. Integration Prowess: ShipHero boasts one of the most robust integration ecosystems in the market. It seamlessly connects with major eCommerce platforms, shipping carriers, and other essential tools. This makes it a versatile business choice.
  3. Streamlined Order Fulfillment: ShipHero’s WMS covers every aspect of order fulfillment, from picking to packing to shipping. Its mobile pick-and-pack software optimizes routes, handles bulk picking, and offers box recommendations to reduce shipping costs.
  4. Real-time Inventory Management: Managing your inventory is a breeze with ShipHero. Its real-time tracking and control of your stock levels keep you on top of your inventory.
  5. Transparent Pricing: ShipHero offers a transparent pricing model with clear monthly subscription fees. No hidden costs or surprises mean you can plan your budget effectively.
  6. Outstanding Customer Support: ShipHero’s customer service is top-notch, with an extensive knowledge base, how-to articles, videos, and a reputation for being helpful and attentive.
  7. Global Reach: ShipHero caters to a global market, making it an ideal choice for businesses with international operations or aspirations.

Who Should Use ShipHero?

ShipHero is best suited for businesses and 3PL providers seeking an extensive integration ecosystem, a hands-on onboarding experience, and an end-to-end warehouse management solution. Whether you’re a medium-sized business looking to scale or a large enterprise streamlining operations, ShipHero offers the necessary tools.

Bottom Line: 

ShipHero has you covered for seamless order fulfillment, real-time inventory management, or outstanding customer support. Its transparent pricing and global reach make it an ideal choice for businesses aiming to scale and optimize their operations.

Linnworks: The Challenger in Warehouse Management

  1. Inventory and Order Management: Linnworks primarily focuses on inventory and order management. It provides essential tools for managing warehouse operations and order processing.
  2. Integration Flexibility: Linnworks offers integration with a wide range of eCommerce platforms and shipping carriers, allowing businesses to manage their multichannel sales efficiently.
  3. Inventory Tracking: Linnworks’ real-time inventory tracking helps businesses gain insights into sales performance and forecast demand.
  4. Support and Resources: Linnworks provides round-the-clock live phone support and a resource library with blogs, webinars, and white papers.
  5. Geographic Location: Linnworks is headquartered in the UK, making it a suitable choice for businesses primarily operating in Europe and the UK.
  6. Pricing Transparency: Linnworks does not disclose pricing on its website, making it challenging to assess costs upfront.

Who Should Use Linnworks?

For businesses focused primarily on growth in the UK and Europe, Linnworks is an acceptable solution. It has strong order and inventory management capabilities but does not offer a full range of features. 

Bottom Line

Ultimately, the choice between Linnworks and ShipHero WMS depends on your specific business needs, geographic location, and the depth of warehouse management functionality required. Consider factors like your target markets, integration preferences, and the level of support you require when deciding. Each platform has strengths and can be a valuable asset for eCommerce businesses.

Key Takeaways

  • ShipHero is a Warehouse Management System (WMS) with an extensive integration ecosystem that includes partnerships with major players like Shopify Plus, WooCommerce, DHL Express, UPS, NetSuite, and Loop. It offers transparent pricing with monthly subscriptions and no contracts, an intuitive user interface, and robust customer support.
  • Linnworks is an inventory and order management software designed primarily for managing multichannel sales. Its real-time inventory tracking provides insights into sales performance and forecast demand, prevents stockouts, and eliminates overstocking. It also offers round-the-clock live phone support and a resource library with blogs, webinars, and white papers.
  • The choice between ShipHero WMS and Linnworks depends on business needs, geographic location and the depth of warehouse management functionality required. Both offer valuable features for businesses in the eCommerce industry.

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ShipHero vs. Linnworks FAQs

Does Linnworks offer free trials?

Linnworks offers free demos. ShipHero also provides a free demo.

What is ShipHero best for?

ShipHero is best for growing eCommerce businesses and 3PLs, plus large enterprises that want plenty of options for platform integrations. 

Does Linnworks offer eCommerce management?

Yes, Linnworks offers eCommerce management.

 

How to Select the Right Warehouse

How to Select the Right Warehouse

Do you know how to select the right warehouse for your business and maximize savings? Warehousing is a necessary component of the customer journey and can be interpreted as an investment. If you’re looking to save on costs and boost your productivity, know that a well-run warehouse can give you better control over your inventory and ensure customers receive their orders on time. 

But when it comes to selecting the right warehouse for your business, no one size fits all, so you need to consider factors such as proximity to suppliers and customers, cost optimization, technological capabilities, space utilization, and scalability, to name a few. With careful planning – which often requires help from external logistics specialists – you’ll have more success determining the right warehouse for your needs.

Choosing a Warehouse Location

How to select the right warehouse location for your business can be quite a puzzle. You want to find one close to major highways, convenient for customers, employees, suppliers, and vendors— yet cost remains a key factor. Do you opt for the warehouse near a densely populated area or the one further away with cheaper real estate? And don’t forget about labor costs—will you be able to find qualified staff in this location? Luckily, you have all the tools at hand to solve this logistics riddle of success!

Where Are Your Customers?

Before you can assume your spot as an industry titan, you must understand where your potential and current customers are. Ask yourself the tough questions: Do our sales primarily target people within a specific region? Are we selling all over the world? Taking an inventory of the customer landscape is vital for maximizing efficiency—setting up a shop near your customers helps keep transportation costs down, streamlines delivery, and saves resources in the long run. Ready, set, map!

Are You Getting Value For Your Money?

When selecting the ideal location for a warehouse, the cost is always at the top of the list. But to get a true sense of value for money, it’s essential not to overlook hidden charges — a factor that can offset any savings you make on cheaper rental rates. 

Luckily, there’s more than meets the eye when making your decision; tax structure and incentives are also vital considerations. Certain areas may be subject to special government programs designed to boost particular industries. All in all, weighing up all this information is an absolute must if you’re looking to get the most bang for your buck!

What Are the Utility Costs?

Whether you’re growing or shrinking, it pays to do your research to avoid making a potentially costly mistake. When planning your move, remember to factor in all the utilities necessary for smooth operation: electricity, water, and sewage are standard, but what about the internet? Before you move, double-check the availability and cost of the internet; after all, fast and reliable service is essential in this day and age!

What is the Structure and Layout of the Building?

Choosing a suitable warehouse building for your business requires a lot of thought and consideration; after all, it might be challenging to adjust specific equipment to an old building that cannot sustain a proper flow of raw materials. It could also result in needing to modify an existing warehouse and that could lead to additional costs. 

Thinking about ceiling heights, column spacing, and other factors is key in ensuring that you will avoid any issues with inward and outward flows. Do you sell perishables that need to be refrigerated? Be sure to look at refrigerated warehouses to ensure frozen or perishable goods are stored correctly and arrive in top condition! 

To guarantee your buildings are fit-for-purpose, put as much time and effort into the structural planning as you would the other aspects of planning – otherwise, you may discover too late that essential elements have been missed or overlooked.

What is the Workforce Availability in the Area?

Despite the great potential for cost savings, it’s important to remember that workforce availability means more than hiring bodies at low wages. You must look at the big picture regarding supply and demand and consider whether these workers have the desired skills to meet your business’s needs. If not, you could find yourself with a team lacking in drive to give your customers the service they deserve while wondering how much money you wasted in the process.

Is the Warehouse Close to Airports, Railways, or Ports?

Regarding transportation costs, there’s a lot to consider – from where your business is located in relation to roads, highways, and airports to the volume of local traffic. If trucking is your primary mode of getting products around, accessibility and easy access are key. It pays well then to be mindful of proximity when selecting warehousing facilities – ideally as close as possible to the airports, railway stations, and ports for maximum drayage cost control and high-velocity levels.

What are Some Local Environment Factors?

When considering an optimal location for a new warehouse, you’d be wise to look at two key factors: proximity to major suppliers, producers, and/or customers, plus local environmental considerations. Logistics pros and cons can quickly outweigh each other based on these locality choices, so getting it right is vital. 

Make sure you pay attention to weather risks just because the building looks great – would you want a hurricane tearing through your new facility? When it comes to markets and local environmental factors, go the extra mile in your due diligence!

Factors to Consider When Selecting a Warehouse

It takes significant research and internal evaluation of company priorities to select the correct warehouse. Here are some considerations to keep in mind when choosing your next warehouse.  

Special Features   

It is not uncommon for warehouse features to be as unique as the inventory. Ensure your warehouse has everything you need for storing your products, like dock doors, levelers, fire suppression systems, refrigeration or air conditioning, power requirements, and floor loading capabilities.  

Technology   

Typically, warehouses are not equipped with technology before leasing or purchasing; the tenant’s needs determine it.

When selecting a warehouse, consider the following questions related to warehousing technology: 

  • How will the new warehouse integrate with your company’s existing supply chain and processing systems? 
  • Does the warehouse already have any tech?
  • Does the warehouse have the capacity to handle new technologies such as drones, pick-by-vision systems, and electronic data exchange? 

Flexibility    

The COVID-19 pandemic clearly illustrates that eCommerce services need to be more flexible. It would help if you chose a warehouse that will be flexible enough to expand and meet the logistics requirements of the future (and those of your customers). 

Pick Your Warehouse Like You’d Pick a Date

With eCommerce playing a more significant role in the consumer market than ever, an efficient warehouse solution is essential. Don’t just click and go when selecting your warehouse logistics; read up on implementation strategies, scalability potential, and reporting capabilities for that extra peace of mind. After all, your warehouse may be the basis for your eCommerce business, so don’t view it as an afterthought – treat it with respect! Pick the best service that fits your future goals and overall branding strategy, and watch it become the groundwork for success. Don’t let yourself be overwhelmed by making hasty decisions; take time to find what fits you best.

For More Information About ShipHero 

Whether you want to let go of running your own warehouse or run your warehouse better, you can do both – and so much more – with ShipHero.

Click HERE to Schedule a Meeting with Our Sales Team. 

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Fulfillment & eCommerce Software For Your Business When Using SAP

Fulfillment & eCommerce Software For Your Business When Using SAP

What is SAP?

Initially known as System Analysis Program, and later abbreviated to SAP, this company has become one of the leading producers of software business management processes. It grew from a small five-person team to over 105,000 employees world wide. With more than a hundred applications produced by SAP, you can connect all aspects of your business together into one digital platform. 

How Does the SAP Fulfillment Process Work?

With SAP Sales Order Fulfillment, you can manage the orders filtering in through your business. It begins at the creation of a sales order and is highly communicative with the customer so they can monitor the status of their purchase. With SAP Sales Order Fulfillment you can create delivery documents, invoices, release credit blocks, reject sales orders, generate account documents, and much more. 

What Does an Order Fulfillment Provider Do?

When it comes to shipping goods to your client, you will need to do this yourself, or find a fulfillment provider. Many companies opt to utilize a third party fulfillment provider due to the high cost of building out a logistics process. An order fulfillment provider will sort, store, pick, pack, and ship orders for your business from its physical fulfillment center.

What Are the Benefits of Using an Order Fulfillment Provider?

With an order fulfillment provider, your high quality order processing and shipping process will make things simple for those who wish to purchase from your brand, which will generate repeat business. And as a business you get to strategize with a company who has deep knowledge about the logistical industry. The best fulfillment providers will look at your order history and help you consolidate your inventory to key locations and create more efficient logistical processes to save you money. 

Check out ShipHero’s fulfillment services

Factors to Consider While Selecting an Order Fulfillment Partner for SAP

Order Fulfillment Speed

Companies like Amazon have made speed a huge purchasing factor for your clients. If they put an item in your cart, and see it won’t ship to them for 5-7 days, they are highly likely to leave your platform all together and go try to find the same product elsewhere. When it comes to providing top tier service and staying top of mind, you need to make faster shipping a priority. An order fulfillment partner can help.

Storage and Fulfillment Fees

The cost of a fulfillment partner’s services often accrue in different fees. The top being the cost of storing your inventory and fulfilling your order. This may appear as a monthly overall cost based on your average order volume, or a small fee per order. Either way, they are fees to be aware of when looking for a fulfillment provider. However, compared to the cost of building your own logistical process and investing in the buildings, equipment, and people needed for it, many business owners feel these fees are worth the price. 

Pricing

When searching for a fulfillment provider, make sure you are keeping an eye out for what best fits your budget. Pricing is highly different between companies. Some offer you a free trial. Others offer a demo. Some want a full understanding of your inventory and order volume before they will quote you. Others have transparent pricing on their website where you can generate a quote yourself. Because this pricing will vary between companies, be sure to pick a provider who is forthcoming with any fees or overage costs you may incur. 

Returns Management

A customer is less likely to buy from your store again if they have something they need returned, and the returns process is extremely hard. A good fulfillment partner will help you create a process to handle these returns smoothly for your client. They will also communicate with you on if you want the item to be restocked or shipped to the manufacturer if there was a defect. 

eCommerce Platform Integration

A high quality fulfillment partner will integrate into the order processing technology your company currently uses. Without this integration, orders could get lost, manual data entry may be required, and it could slow down your order process. Which makes eCommerce platform integration essential for your business. Some fulfillment providers will even have engineers on site who can help build these connections between your platforms if a native connection does not already exist. 

Ease of Use

It’s important you as a business owner get as much time in your day as possible. Which means whatever platform your company uses shouldn’t be difficult to figure out. Fulfillment providers will work with you to access their solution and tie their programs into your own. But those programs should be relatively simple for you and your teams to use. Keep this in mind when a fulfillment provider is showing you their solution. 

Additional Software For Your eCommerce Business 

If you use SAP, you know there are many different integrations you can utilize to amp up the effectiveness of your eCommerce business. And as we grow within the digital age it’s important to understand what options are available to you. Softwares which improve your marketing, your cart check out rate, give you an ERP system, aid your sales team, or aid in the customer experience help when expanding your business. Below, is a list of software which will help you fulfill orders and enhance your eCommerce business. Let’s take a look! 

Best SAP Fulfillment & Software Integrations 

1. ShipHero

With fully outsourced fulfillment options, ShipHero helps their clients develop a powerful logistics solution. They offer both order processing software and high quality outsourced fulfillment which will help you impress your customer every step of the way. 

Pros

  • Fully outsourced fulfillment solution 
  • eCommerce Integration 
  • High quality customer support 

Cons

  • No QBO integration (anticipated in 2023) 

Pricing

  • $0 Setup
  • Pick, pack, box & postage included in cost
  • Can request a quote on website 

Check out ShipHero’s fulfillment services

2. Zoho Inventory

With Zoho, you can manage and fulfill orders, streamline multiple sales channels, and oversee your warehouses all in one platform. This inventory management software focuses on helping growing business across the US. Their app works on both Android and iOS devices so you can be connected to your business wherever you may be. 

Pros

  • Warehouse management
  • Multiple shipping integrations
  • High number of out of the box integrations 

Cons

  • Focused on US businesses only 

Pricing

  • Free to sign up
  • Pricing plans include several different options to choose from 

3. DiCentral

As a global leader in EDI (electronic data interchange) DiCentral can help businesses expand their supply chain. They are a leading provider of supply chain solutions around the world. 

Pros

  • Integrate with any industry
  • Has several systems you can use (ERP, WMS, accounting) if you don’t have your own
  • Highly flexible EDI

Cons

  • Needs a high amount of training
  • Errors can be hard to fix 

Pricing

  • Offers basic, standard, professional, and enterprise packages
  • Offers a free demo 

4. Procurify

This is a procurement and purchasing software which helps your team track, control, and analyze your business spending. With this program you no longer need to use spreadsheets for your purchasing needs. You can generate purchase orders from virtually anywhere. 

Pros

  • Develops transparency in your organization
  • Improves your operational efficiency 
  • Standardize your workflows 

Cons

  • Not many advanced filtering features
  • Reports have low customization options 

Pricing

  • Offers different package types per your business needs 
  • Allows for customer pricing plans if needed 

5. Prodsmart

This is a manufacturing solution which helps you enhance your production and can be used in a modular way. It empowers your shop floor workers and is built with a data security mind. Their systems will help you track your orders, shipping, and give you real-time visibility into production. 

Pros

  • Clean design and ease of use 
  • Highly customizable 
  • Professional and helpful customer support 

Cons

  • Some steps get repeated through the process

Pricing

  • 14 day free trial
  • Offers a product demo
  • Transparent pricing and modular options 

Check out ShipHero’s fulfillment services

6. Sana Commerce

This company has a solution which will help you expand to meet your customer and market expectations. While not a fulfillment provider, this platform provides an integrated shopping cart software for both Microsoft Dynamics and SAP. 

Pros

  • Integration with SAP is easy to set up
  • Well thought out training materials 
  • Robust product 

Cons

  • Lack of reporting and analytics 

Pricing

  • Offers a free demo
  • Packages include essential, pro, and advanced options 

7. Pepperi

With their B2B eCommerce platform, your sales channels can all funnel into your own branded eCommerce app. This program helps you understand buyer trends so you can strategize key promotion plans. Their goal is to help you increase your sales and improve your margins with Sales Force Automation (SFA). 

Pros

  • Can extract helpful customer information 
  • Can be used on web and mobile (iOS, Android) 
  • Accepts payments 

Cons

  • Updates can sometimes break the software
  • Can be complicated for first time users 

Pricing

  • Pay as you go pricing model 
  • Free demo available
  • Customized quote for business needs 

8. Tradogram

This cloud-based procurement management software allows you to gain control of your purchasing. It is highly customizable and offers tools for managing and improving your purchasing processes. With it you can manage supplier lists, item catalogs, user permissions, approvals, budgets, inventory, and even build custom reports. 

Pros

  • Highly customizable 
  • High quality support team 
  • Easy to use and to teach 

Cons

  • Limited reporting capabilities

Pricing

  • No contract required 
  • Offers basic, premium, and enterprise packages 

9. inSitu Sales

This software is designed for wholesalers who look to enhance the capabilities of their sales team. With it you can create sales orders, mobile invoices, estimates, and take payments. You can also generate sales routes and track sales representatives with live GPS. And it integrates directly into your ERP solution to streamline the ordering process. 

Pros

  • Offers mobile invoices for sending sales orders & receiving payment
  • View of inventory picklist
  • Deep integrations into several ERP systems 

Cons

  • Works best if you are a wholesaler 

Pricing

  • 14 day trial available
  • Offers free demo and onboarding 
  • Tiered subscription pricing options available 

10. k-eCommerce

With k-eCommerce, SAP users have access to ePayment solutions worldwide. It is built for sales with the goal to drive continual growth. It has an ERP integration with SAP to help you automate and unify your business processes.

Pros

  • Helps you secure your website
  • Integrates with SAP and Microsoft Dynamics
  • Ovvers payment solution integrated into your ERP

Cons

  • Slow support response to program bugs 

Pricing

  • Can request a quote on the website

Final Thoughts

There are several solutions available to help your eCommerce business rise to the next level. As you compare businesses to find the right solution, keep in mind a good fulfillment partner should amplify your business and key software can give you time back in your day. Which should make it easier to reach your clients with your product and enable your supply chain to become a well oiled machine. 

Order Fulfillment for SAP FAQs

What Is SAP Order Fulfillment?

This is a fulfillment app which allows you to monitor sales orders in key stages, collaborate with your third party fulfillment partners, and address any issues which may arise. 

What Is the Fulfillment Process in SAP?

Once a sales order has been created it starts the fulfillment process. From there, your order gets sent to your fulfillment provider who picks, packs, and ships the product out. Through the program, they can confirm receiving the order as well as send you tracking information. That way you can ensure the customer can monitor the status of their order. 

How Can I Improve My Order Fulfillment?

While there will always be aspects of your order fulfillment you can improve, here are a few which can make a big impact if you get them right. 

  • Make sure your fulfillment systems are fully integrated together
  • Ensure your warehouse locations are specific to the location of key customers
  • Continually measure and review key warehouse metrics 
  • Look for ways to simplify your order fulfillment processes 

If you start with the above and review these strategies with a fulfillment provider who has in-depth experience in the logistical industry, you will streamline your fulfillment processes quickly.