Apr 2, 2024 | 3PL Warehouse Management, Article, Fulfillment
If you’re looking for the best 3PL companies in Canada, you’ve come to the right place. This article will introduce you to some of the top players in the industry and provide valuable insights into the world of third-party logistics in Canada.
What is Third-Party Logistics (3PL)?
Before going into the specifics, it’s important to understand what third-party logistics or 3PL is.
In simple terms, 3PL refers to the outsourcing of supply chain management functions to a specialized company. These companies handle various aspects of logistics like transportation, warehousing, and distribution on behalf of their clients.
By entrusting their logistics operations to a 3PL provider, businesses can focus on their core competencies while benefiting from the expertise and resources of the 3PL company. It’s a win-win situation that has gained popularity across industries.
In the transportation arena, 3PL providers play a crucial role ensuring the smooth movement of goods from one location to another. They have extensive networks of carriers and can negotiate favorable rates that save their clients money. Additionally, 3PL companies have the expertise to optimize routes, track shipments in real-time, and handle any unexpected issues that may arise during transit.
Warehousing is another area where 3PL providers excel. Most have strategically located warehouses equipped with state-of-the-art technology and systems to efficiently store and manage inventory. This helps businesses reduce their warehousing costs and benefit from extra scalability and flexibility. With advanced inventory management systems, businesses have real-time visibility into their stock levels, ensuring timely replenishment and minimizing stockouts.
And beyond transportation and warehousing, 3PL provider services can include order fulfillment, packaging, labeling, and even customer support. By leveraging these additional services, businesses can enhance their overall supply chain operations and improve customer satisfaction.
A key advantage of partnering with a 3PL provider is access to their expertise and industry knowledge. 3PL companies are always up to date on the latest trends, regulations, and best practices in logistics. They can provide valuable insights and recommendations to optimize supply chain processes across many industries.
Another benefit of working with a 3PL provider is scalability. With a 3PL partner, businesses can easily scale up or down their logistics operations without significant investments in infrastructure or resources. They can adapt quickly to market demands and seize new opportunities.
In conclusion, third-party logistics, or 3PL is the outsourcing of supply chain management functions to specialized companies. These companies handle transportation, warehousing, and distribution on behalf of their clients, letting businesses focus on their core competencies. 3PL providers offer expertise, cost savings, scalability, and value-added services, making them an attractive option for businesses across industries.
To have a better understanding of how 3PL companies operate and the diversity of services they offer, consider reading our comprehensive overview of 3PL companies, which provides insights into selecting the right partner for your logistics needs.
Overview of 3PL Operations in Canada
In Canada, the 3PL market is vibrant and competitive. With its vast geographical area and robust trade relationships, the country presents numerous opportunities for logistics companies.
Canadian 3PL providers offer a wide range of services, catering to industries like retail, e-commerce, manufacturing, and healthcare. From managing inventory and order fulfillment to overseeing transportation networks, these companies play a vital role in the supply chains of businesses across the country.
Understanding the 3PL Market in Canada
The 3PL market in Canada is constantly evolving to meet the changing demands of businesses. As companies seek to optimize their supply chains and provide seamless customer experiences, the role of 3PL providers becomes increasingly important.
A Key factor driving this growth is the rapid expansion of e-commerce. As more and more Canadians turn to online shopping, businesses need efficient and reliable logistics solutions to fulfill customer orders quickly and accurately.
Range of Services Offered by 3PLs in Canada
Canadian 3PL companies offer a comprehensive range of services to meet the specific needs of their clients. Common services include:
- Transportation management
- Warehousing and distribution
- Inventory management
- Order fulfillment
- Customs brokerage
- Reverse logistics
These services can be tailored to suit small startups, large corporations, and everything in between. By leveraging the expertise of 3PL providers, companies can streamline their operations and gain a competitive edge in the market.
To explore the specific services provided by third-party logistics providers and how they can transform your supply chain, explore our detailed discussion on 3PL services, offering a closer look at how these services streamline operations for businesses of all sizes.
Benefits of Using a Third-Party Logistics Company in Canada
Partnering with a 3PL company in Canada offers several benefits for businesses:
- Cost savings: Outsourcing logistics functions eliminates the need to invest in infrastructure, technology, and personnel.
- Improved efficiency: Streamlined processes and faster order fulfillment improve the customer experience.
- Scalability: Seamless operations give businesses the confidence to grow.
- Focus on core competencies: Businesses have more time for future planning.
- Access to expertise: Businesses get valuable insights they can use to improve their customer experience or bottom line.
Overall, partnering with a 3PL company in Canada is transformative for businesses, offering a pathway to reduce operational costs, enhance efficiency, achieve scalability, maintain a focus on core business areas, and leverage expert insights.
These combined benefits create a formidable foundation for businesses to thrive and expand in the highly competitive Canadian marketplace.
Small and medium-sized enterprises seeking to capitalize on these benefits should explore our detailed guide on 3PL for small businesses. This resource is tailored to help smaller companies understand how to effectively utilize 3PL partnerships to enhance their logistics operations and support growth.
Top 3PLs in Canada
Several 3PL companies in Canada stand out for their industry expertise, reliability, and customer satisfaction::
- McKenna Logistics: A comprehensive logistics provider offering tailored warehousing, distribution, and supply chain solutions across Canada. They specialize in various industries, including food and beverage, health, and beauty, emphasizing regulatory compliance and inventory accuracy.
- Sci Logistics: Known for innovative supply chain solutions across technology, healthcare, and retail sectors, SCI Logistics boasts an extensive national network. They offer e-commerce fulfillment, reverse logistics, and specialized temperature-sensitive product services, emphasizing technology-driven approaches.
- ShipHype: ShipHype stands out as a flexible 3PL service catering to small and medium-sized businesses, offering fulfillment services across Canada and the U.S. Their services are designed to seamlessly integrate with major e-commerce platforms, providing cost-effective solutions for inventory management and shipping.
- Go Direct Global: A dynamic 3PL provider offering a wide range of services including fulfillment, distribution, and logistic solutions tailored to meet the needs of businesses expanding in global markets. Their expertise in customs brokerage and international shipping makes them a valuable partner for companies looking to navigate the complexities of global trade.
- McIntyre Group: With a focus on providing innovative logistics and staffing solutions, McIntyre Group offers a unique blend of services that include warehousing, transportation, and comprehensive supply chain management. They are recognized for their flexible and customized approach to meeting the diverse needs of their clients.
Each of these 3PL companies in Canada brings its unique strengths to the table, from extensive national networks and fast delivery capabilities to specialized services and global reach. Choosing the right 3PL partner depends on a business’s specific logistics needs, growth goals, and the strategic value the 3PL can provide in facilitating efficient and effective supply chain operations.
How to Start Working with a 3PL in Canada
If you’re considering partnering with a 3PL company in Canada, here are a few steps to get started:
- Evaluate your needs: Assess your current logistics requirements and identify areas where a 3PL provider can add value.
- Research potential partners: Look for 3PL companies that have experience in your industry and a proven track record of success.
- Request proposals: Ask your shortlisted companies for pricing, service offerings, and key performance indicators.
- Conduct interviews: Schedule meetings with the potential 3PL providers to get a better understanding of their capabilities, communication styles, and compatibility with your business.
- Make a decision: Based on your evaluations and interviews, select the 3PL company that aligns best with your requirements and values.
- Establish clear expectations: Once you’ve chosen a 3PL partner, communicate your expectations clearly and establish strong lines of communication to ensure a smooth working relationship.
In conclusion, the best 3PL companies in Canada offer a range of services to optimize supply chains and fulfill the unique logistics needs of businesses. By partnering with a reputable 3PL provider, businesses can unlock new efficiencies, lower costs, and gain a competitive advantage in the Canadian market.
Key Takeaways
- 3PL’s Essential Role: Outsourcing logistics to 3PL providers allows businesses to focus on their core operations, leveraging the 3PL’s expertise in supply chain management.
- E-commerce Growth Impact: The increase in online shopping in Canada has raised the need for 3PL services for effective logistics support.
- Wide Range of 3PL Services: Canadian 3PLs offer diverse services, including transportation, warehousing, order fulfillment, and more, adaptable for all business sizes.
- Advantages of 3PL Partnerships: Collaborating with a 3PL in Canada leads to cost savings, improved process efficiency, scalable operations, and access to logistics expertise, enhancing market competitiveness.
FAQs
How much do 3PL services cost in Canada?
The cost of 3PL services in Canada varies based on factors such as the scope of services required, volume of shipments, and industry-specific needs. It’s best to request quotes from multiple providers to get an accurate estimate.
Can small businesses benefit from partnering with a 3PL company?
Absolutely. 3PL providers offer scalable solutions, making them suitable for businesses of all sizes. Small businesses can leverage the expertise and resources of 3PL companies to optimize their logistics operations and compete more effectively in the market.
How do I know if a 3PL company is the right fit for my business?
Choosing the right 3PL partner requires careful consideration. Look for companies with experience in your industry, a strong track record, and the ability to meet your specific requirements. Conducting thorough evaluations and interviews will help you gauge compatibility and make an informed decision.
Can 3PL companies handle international logistics?
Yes, many 3PL providers in Canada can handle international logistics. They can handle customs clearance, freight forwarding, and global transportation, ensuring a smooth flow of goods across borders.
Are 3PL companies equipped to handle specialized industries such as healthcare?
Absolutely. Many 3PL companies in Canada specialize in niche industries, such as healthcare and pharmaceuticals. They have the necessary certifications, infrastructure, and experience to ensure compliance with industry regulations and safely handle critical goods.
Apr 2, 2024 | Article, Inventory
The risk of human error and the potential for costly mistakes make manual inventory tracking methods impractical.
This is where the streamlined automation of inventory management software solves many of the problems that have plagued manual tracking systems for generations.
Best Inventory Management Software Solutions
It can be difficult to choose the right inventory management software for your business from the plethora of options. These are the best five and why:
- Inventory Now: A comprehensive and user-friendly inventory management software suitable for businesses of all sizes.
- TradeGecko: A cloud-based inventory management platform that offers advanced features such as multi-channel selling and demand forecasting.
- Zoho Inventory: A robust inventory management software that integrates seamlessly with other Zoho business apps.
- inFlow Inventory: A feature-rich inventory management solution offering tools for order management, reporting, and barcode scanning.
- Fishbowl: A popular choice for businesses with complex inventory needs, with features such as advanced manufacturing and asset tracking.
The rest of this article explores why you should consider using inventory management software, the key features to look for, and how to choose the right software for your business.
What is Inventory Management Software?
Inventory Management Software is a powerful tool that improves the way businesses track, manage, and optimize their inventory levels. It goes beyond the traditional pen-and-paper method and brings efficiency, accuracy, and control to the inventory management process.
Imagine a busy warehouse, filled with shelves upon shelves of products. Without proper inventory management, chaos occurs. Products get misplaced, stock levels become inaccurate, and orders get delayed. Inventory management software eliminates all of this.
At its core, inventory management software lets businesses monitor stock levels in real-time. It provides a comprehensive overview of the available products and prevents out-of-stock or overstock. With a few clicks, businesses can instantly access information about the quantity, location, and status of each item in their inventory.
Inventory management software also helps businesses track sales and purchases. By integrating with point-of-sale systems and online marketplaces, businesses can automatically update their inventory whenever a sale is made. This real-time synchronization gives businesses accurate information about their inventory and prevents overselling or missed sales opportunities.
As for the order fulfillment processes — a particular headache for businesses with large volumes of orders — inventory management software automates tasks like order processing, picking, packing, and shipping. It helps businesses prioritize orders, allocate stock efficiently, and generate shipping labels. All of this saves time and reduces errors.
The automation of order fulfillment is a significant leap forward in managing e-commerce operations efficiently. To understand this aspect in greater detail, consider exploring our comprehensive article on e-commerce order management software, which delves into how these systems can further optimize the order fulfillment process, ensuring seamless integration from inventory to delivery.
A key benefit of inventory management software is its reporting ability. Businesses can analyze sales trends, identify slow-moving or fast-selling products, make data-driven decisions to optimize their inventory levels and identify areas for improvement and growth.
With inventory management software, businesses have better visibility and control over their inventory. They can accurately forecast demand, prevent stockouts, and avoid overstocking, ultimately leading to improved efficiency and reduced costs. By optimizing inventory levels, businesses can free up capital that would otherwise be tied up in excess stock, allowing them to invest in other areas of their business.
Customer satisfaction is a top priority for any business, and inventory management software plays a crucial role in achieving it. By ensuring that products are always available when customers need them, businesses can provide a seamless shopping experience. Additionally, inventory management software enables businesses to fulfill orders quickly and accurately, leading to happy customers and positive reviews.
In conclusion, inventory management software is a game-changer for businesses of all sizes. It brings efficiency, accuracy, and control to the inventory management process, allowing businesses to optimize their operations and delight their customers. Whether it’s a small retail store or a large eCommerce business, inventory management software is an essential tool for success.
Why Use Inventory Management Software
Inventory management software offers numerous benefits for businesses of all sizes and industries. In today’s fast-paced and competitive business environment, efficient inventory management is crucial for success.
By implementing inventory management software, businesses can streamline their operations, improve accuracy, save time and costs, make better decisions, and enhance customer satisfaction.
Improved accuracy: A risk of data entry mistakes or misplacing items always exists with manual inventory management. With inventory management software, businesses can rely on advanced algorithms and barcode scanning technology to guarantee accurate inventory counts. This improves the overall efficiency of the business and improves the customer experience by minimizing errors.
E-commerce businesses, in particular, can benefit significantly from specialized inventory management solutions. Our guide on e-commerce inventory management software explores options specifically designed to meet the unique challenges of the e-commerce sector, from syncing stock levels across multiple platforms to managing a diverse range of SKUs.
Time savings: Stock counting can be done quickly and accurately with barcode scanning, order processing becomes seamless, and reports can be generated with just a few clicks. This lets employees focus on more strategic tasks.
Cost savings: With manual inventory management, businesses often face challenges in optimizing their inventory levels. Overstocking ties up capital and increases storage costs, while stockouts result in lost sales and dissatisfied customers. Inventory management software provides real-time visibility into inventory levels, allowing businesses to optimize their stock levels and avoid excess or insufficient inventory.
By accurately forecasting demand and optimizing inventory, businesses can reduce carrying costs, prevent stock obsolescence, and avoid rush orders or emergency purchases.
Better decision-making: Inventory management software provides businesses with valuable insights into their inventory performance. Businesses can use historical data to track trends and identify patterns that will inform accurate sales forecasts. Businesses can also quickly respond to changes in demand or market conditions, staying ahead of the competition.
Enhanced customer satisfaction: A key factor in customer satisfaction is the ability to deliver products on time. With inventory management software, businesses will have the right products available to fulfill customer orders.
Real-time inventory tracking lets businesses quickly identify available stock, reserve items for orders, and provide accurate delivery estimates to customers. This all improves customer satisfaction and helps businesses build reliability and efficiency into their reputations.
Key Features of Inventory Management Software
The best inventory management software solutions offer a range of features to streamline inventory management processes. Some of the key features to look for include:
- Inventory tracking: The software should provide real-time visibility into stock levels, locations, and movement.
- Purchase order management: Efficient creation, tracking, and management of purchase orders to prevent stockouts and delays.
- Sales order management: Streamlined order fulfillment processes to ensure accurate and timely delivery of products.
- Barcode scanning: The ability to scan barcodes for quick and accurate inventory tracking.
- Reporting and analytics: Detailed reports and analytics to analyze inventory performance, sales trends, and stock movement.
- Integration: The software should seamlessly integrate with other business systems such as accounting and eCommerce platforms. For businesses operating within a third-party logistics framework, understanding the synergy between inventory management and warehouse operations is crucial.
Dive deeper into the complexities of a 3PL warehouse management system and how it can significantly streamline your logistics and inventory operations, enhancing efficiency across the board.
How to Choose the Best Inventory Management Software
When selecting the best inventory management software for your business, there are several factors to consider:
- Business requirements: Evaluate your specific inventory management needs and choose software that aligns with your requirements.
- Scalability: Consider the future growth of your business and ensure that the software can scale accordingly.
- Usability: Choose software that is intuitive and user-friendly to ensure a smooth implementation and user adoption.
- Integration capabilities: Assess whether the software can seamlessly integrate with your existing business systems.
- Support and training: Look for software providers that offer reliable customer support and comprehensive training resources.
Cost of Inventory Management Software
The cost of inventory management software can vary depending on factors such as the size of your business, the scope of features required, and the vendor. Some software may offer pricing plans based on the number of users or the volume of products managed.
It is important to evaluate the return on investment (ROI) that the software can provide in terms of time savings, cost reductions, and improved efficiency.
Key Takeaways
Efficient inventory management is crucial for the success and growth of businesses. Inventory management software offers many benefits, including improved accuracy, time savings, cost savings, better decision-making, and enhanced customer satisfaction.
When choosing the best inventory management software, consider factors such as business requirements, scalability, usability, integration capabilities, support, and training. Evaluate the cost of the software in terms of the ROI it can provide.
Frequently Asked Questions
Can inventory management software work for businesses of all sizes?
Yes, inventory management software solutions are available for businesses of all sizes, from small startups to large enterprises. It is essential to choose software that aligns with the specific needs and scale of your business.
Can inventory management software integrate with other business systems?
Yes, many inventory management software solutions offer integration capabilities with other business systems such as accounting, eCommerce platforms, and CRM software. This allows for seamless data flow and improved efficiency.
Can inventory management software help with demand forecasting?
Yes, some inventory management software solutions offer advanced demand forecasting features. These features leverage historical data and analytics to predict future demand, allowing businesses to optimize inventory levels and avoid stockouts or overstocking.
Does inventory management software require extensive training?
The level of training required for inventory management software depends on the complexity of the software and the user’s familiarity with similar systems. However, many software providers offer comprehensive training resources and support to ensure a smooth implementation process.
Can inventory management software track inventory across multiple locations?
Yes, inventory management software can track inventory across multiple locations. This is particularly useful for businesses with warehouses or multiple retail stores, as it provides visibility into stock levels and movement in real-time.
Apr 2, 2024 | 3PL Warehouse Management, Article, Warehouse Management Software
Many businesses turn to third-party logistics (3PL) companies for their shipping, warehousing, and fulfillment needs, but it can be overwhelming to choose the right 3PL provider for your business with so many available options. Any of these five 3PL companies would be a great place to start:
The Five Best 3PL Companies
- ShipHero: ShipHero is a comprehensive Warehouse Management System (WMS) designed to optimize eCommerce operations by simplifying picking, packing, and shipping processes. It boasts features like inventory management, order tracking, automation rules, and seamless integrations with major eCommerce platforms.
- For businesses operating in or expanding to the Canadian market, understanding the nuances of logistics in Canada is essential. Explore our insights on 3PL services in Canada to navigate the complexities of Canadian warehousing, shipping, and fulfillment strategies effectively.
- ShipBob: It offers top-notch fulfillment services aimed at helping direct-to-consumer eCommerce brands stay competitive by allowing them to focus on business growth and delivering exceptional customer experiences
- C. H. Robinson: C.H. Robinson stands out as a global logistics platform, offering comprehensive solutions across various industries.
- XPO Logistics: The company has a strong focus on utilizing proprietary technology to efficiently move goods through its network, emphasizing the de-risking of supply chains for companies.
- UPS: United Parcel Service, Inc. (UPS), founded in 1907, has grown from a small messenger company to a Fortune 500 global shipping and supply chain management powerhouse.
If you know what a 3PL is and why you might need it, then you have five places to start your search. If you don’t know much about 3PLs, keep reading.
What are Third-party Logistics?
Third-party logistics refers to the outsourcing of logistics activities to a specialized company. These companies handle tasks such as transportation, warehousing, inventory management, and order fulfillment on behalf of their clients. By partnering with a 3PL provider, businesses can streamline their supply chain processes and focus on their core competencies.
3PL companies offer a wide range of transportation services. They generally have a network of carriers and can negotiate favorable rates for shipping goods. By road, air, rail, or sea, these companies have the expertise to ensure that products reach their destination efficiently and on time. They also handle all the necessary documentation and customs clearance, taking the burden off the businesses.
Warehousing is another crucial aspect of logistics that 3PL companies excel in. They have strategically located warehouses equipped with the latest technology and infrastructure to store goods safely and efficiently.
These warehouses are often equipped with advanced inventory management systems that allow businesses to track their inventory in real-time. This ensures that businesses always have visibility into their stock levels and can fulfill customer orders promptly.
Inventory management is a complex task that requires careful planning and execution. 3PL companies have dedicated teams that specialize in managing inventory. They use sophisticated software systems to track stock levels, monitor expiration dates, and optimize storage space. By outsourcing this function to a 3PL provider, businesses can minimize the risk of stockouts and reduce carrying costs.
Order fulfillment is the final step in the logistics process, and 3PL companies play a crucial role in ensuring orders get delivered accurately and on time. 3PL companies often have efficient order processing systems in place to handle everything from picking and packing to labeling and shipping. With their expertise, businesses can provide their customers with a seamless and reliable order fulfillment experience.
Overall, partnering with a 3PL provider offers numerous benefits for businesses. It lets the business tap into the expertise and resources of a specialized logistics company, optimize their supply chain, and improve customer satisfaction. By outsourcing logistics activities, businesses can focus on their core competencies and gain a competitive edge in the market.
If you’re new to the concept of third-party logistics and curious about the breadth of services they offer, our comprehensive overview on 3PL services breaks down everything from warehousing to order fulfillment, equipping you with the knowledge to make informed decisions.
Overview of 3PL Companies
3PL companies come in all shapes and sizes, offering a wide range of services to cater to different business needs. While some 3PL providers specialize in specific industries or regions, others offer comprehensive solutions that can be tailored to any business.
The top 5 best 3PL companies on our list have proven track records, extensive networks, and a reputation for delivering exceptional results.
What Kinds of Businesses Use 3rd Party Logistics Companies?
eCommerce businesses, retailers, manufacturers, and distributors are among the industries that commonly use 3PL providers. Startups and small businesses often choose 3PL companies to handle their logistics needs so they themselves can focus on growth and core competencies.
Larger corporations also benefit from outsourcing logistics tasks; they can streamline their operations and gain access to specialized expertise.
Startups and small businesses often face unique challenges in logistics and supply chain management. Dive deeper into how a 3PL can be a game-changer for small businesses by visiting our detailed guide on 3PL services for small businesses, offering insights to streamline your operations and focus on growth.
Core Competencies of 3PL Providers
The top 5 best 3PL companies mentioned above excel in certain core competencies that set them apart from their competitors. These core competencies include:
- Extensive network and transportation capabilities
- Advanced technology and tracking systems
- Efficient warehousing and inventory management
- Excellent customer service and communication
- Customizable solutions tailored to specific business needs
Fulfillment Centers & Warehousing Locations
When choosing a 3PL provider, it is crucial to consider their fulfillment center locations and warehousing capabilities. The top 5 best 3PLs above have strategically located warehouses across the country, allowing for faster and more cost-effective shipping. These companies have invested in state-of-the-art warehousing facilities that prioritize efficiency, security, and scalability.
Sales Channels & eCommerce Platforms Supported by 3PLs
eCommerce businesses rely heavily on effective supply chain management to ensure timely order fulfillment. The top 5 best 3PL companies integrate seamlessly with popular eCommerce platforms such as Shopify, WooCommerce, and Amazon.
They also support multiple sales channels, including marketplaces like eBay and social media platforms. By leveraging the capabilities of these 3PL providers, eCommerce businesses can enhance their customer experience and boost sales.
Customer Satisfaction with 3PL Companies
When selecting a 3PL provider, consider their track record of customer satisfaction. The top 5 best 3PL companies have a proven history of delivering a high level of service and exceeding customer expectations. They have earned positive reviews and testimonials from their clients, showcasing their commitment to excellence.
How to Get Started with a 3PL Service
If you decide to partner with a 3PL provider, the onboarding process is generally straightforward. It typically involves:
- Evaluating your logistics needs and goals
- Researching and shortlisting potential 3PL companies
- Contacting the selected companies and discussing your requirements
- Requesting and reviewing proposals
- Selecting the best-fitting 3PL provider for your business
- Signing the necessary agreements and contracts
- Collaborating with the 3PL company to set up systems and processes
By following these steps, you can start leveraging the benefits of 3PL services and optimizing your supply chain management.
Mistakes to Avoid When Choosing a 3PL Provider
While selecting a 3PL provider, avoid these common mistakes that can lead to poor service or unsatisfactory results:
- Not thoroughly researching the reputation and track record of the 3PL company
- Choosing a provider solely based on cost, without considering the quality of service
- Overlooking the compatibility of the provider’s technology with your existing systems
- Not clearly communicating your business requirements and expectations
- Entering into long-term contracts without a trial or pilot period
By being aware of these common mistakes, you can make an informed decision and select a reliable and suitable 3PL provider.
Understanding the Pricing Structure of 3PLs
The cost of 3PL services can vary depending on the volume of shipments, storage requirements, and the complexity of logistics operations.
3PL providers typically use a pricing structure that includes fixed costs like warehousing fees, and variable costs based on the services used. Carefully review the pricing details provided by potential 3PL providers so you know it aligns with your budget.
Key Takeaways
In conclusion, partnering with a reputable 3PL company can significantly optimize your supply chain and enhance your overall business operations.
The top 5 best 3PL companies stand out due to their extensive networks, advanced technology, superior customer service, and customizable solutions. When choosing a 3PL provider, consider factors such as industry expertise, technology capabilities, and customer satisfaction.
By avoiding common mistakes and understanding the pricing structure, you can make an informed decision and select the right 3PL provider for your business.
Frequently Asked Questions
What does 3PL stand for?
3PL stands for Third-Party Logistics. It refers to the outsourcing of logistics and distribution by companies to third-party firms that specialize in warehousing, transportation, and fulfillment services.
These third-party providers manage all or a significant portion of a company’s logistics functions, allowing businesses to focus on other areas without the need for extensive logistics infrastructure or expertise.
Is it necessary to use a 3PL company?
While it is not mandatory, utilizing a 3PL company can provide numerous benefits, particularly for businesses that require efficient supply chain management.
How do I choose the right 3PL provider for my business?
Consider factors such as reputation, industry expertise, technology capabilities, and customer satisfaction when selecting a 3PL provider. Additionally, ensure their services align with your specific business needs.
Mar 13, 2024 | Fixed and Features
Welcome to the monthly ShipHero Fixes & Features email. Our Product Team has been working hard to bring several new and impactful fixes and features to life.
New Features for February 2024
Early Access – Rate Shop+
Have you tried RateShop+ yet? It’s the newest way to get the cheapest rates with the best service level based on your parameters! Plus, we’ve added extra features like weighting different methods and carriers. Do you get cashback on your credit card when you use carriers like USPS, FedEx, or UPS? You can capitalize on this kind of incentive by weighting these carriers, ensuring they are always the cheapest method for specific service levels.
Find out more about RateShop+ in our Knowledge Base. The feature is currently available to all current WMS clients for free!
A little announcement!
ShipHero’s Software Customer Support Team has been recognized as a Finalist for the Customer Service Department of the Year by the Stevie Awards. We are so excited to share this news with you. Awards will be given out next month, however, there is still time for us to gain some momentum in the People’s Choice category! By clicking below you can cast your vote for ShipHero. Thank you for your support.
Vote for ShipHero here!
New Fixes for February 2024
- Fixed an issue where products were not showing up in the Replenishment Report
- Fixed an issue from Purchase Orders where ‘Receive as expected’ was not working (Timing out)
- Fixed an issue from Wholesale showing the error ‘force_shipment_id’ only supported for return print labels
- Fixed an issue with Work Orders having Inventory discrepancies for assembly SKU
- Fixed an issue where the Packer report was timing out
- Fixed an issue where FedEx was failing to generate a return
- Fixed an issue where the inventory location was not deducting from the correct location in Wholesale
- Fixed an issue with PostHero where Delivered orders were not showing up as Delivered
- Fixed an issue with Bulk Ship where Wholesales labels were added to bulk ship batch PDFs
- Fixed an issue that when counting an unexpected SKU, we were not assigning the bin
- Fixed an issue with Wholesale where the Shipped quantity was shown as 0 on Reports
- Fixed an issue from Bulk Edit that when Downloading Products CSV some fields were empty
Jan 15, 2024 | Fixed and Features
Welcome to the monthly ShipHero Fixes & Features email. Our Product Team has been working hard to bring several new and impactful fixes and features to life.
See ya later 2023! Hello to 2024!
Another Peak Season in the Books!
Just like your teams, ShipHero was busy during Peak keeping everything running as smoothly as possible! We have big plans and big updates coming for 2024, but we also wanted to share some of the awesome stats we saw during Peak 2023!
- 26% more packages shipped this year than 2022
- 11,206,478 labels generated (4.3/second)
- 25,043,577 units picked into a tote (9.6/second)
- 165,709 bulk ship batches
- 0 downtime
Big Changes Coming in Customer Support
We wanted to let you know that we also got some big, positive changes happening in Customer Support for 2024 that we know you’ll love! We’ll be sharing more details soon, so stay tuned!
New Fixes for December 2023
- Fixed an issue in the orders dashboard that was showing all warehouses when filtering it by specific
- Fixed an issue with CSV upload getting stuck
- Fixed an issue where Passport was showing an error of weight cannot be less than 0.01
- Fixed an issue with Passport where we were sending incorrect quantity information about shipments
- Fixed an issue where Wholesales labels were added to bulk ship batch PDFs
- Fixed an issue when shipping kits some components were still showing as allocated after the shipment
- Fixed an issue with Manifest taking a long time to create
- Fixed an issue where the tracking url was not working for Shippo BTS
- Fixed an issue where customers could not create returns for orders with SKUs that do not exist in ShipHero
- Fixed an issue with Workflow Orders where Customization could not be completed
- Fixed an issue with 3PL Billing where some ad-hocs were zeroed out after recalculating a bill
- Fixed an issue with WooCommerce where we were pushing the correct quantity, but the store was showing a different amount
- Fixed an issue with Returns where Refunds were not saved and causing double refunds
- Fixed an issue from the Hero Board where “Live Shipping Board” was not showing some Pickers or Packers
Feb 13, 2024 | Fixed and Features
Welcome to the monthly ShipHero Fixes & Features email. Our Product Team has been working hard to bring several new and impactful fixes and features to life.
New Features for January 2024
Rate Shop+
Have you heard about one of our newest features, Rate Shop+? Gain more control over the shipping methods you use when calculating the cheapest method to use.
This includes:
- Defining which methods should be included in the calculation
- Setting a rating factor for each method
- Setting a maximum delivery time for each method
This feature is currently available by reaching out to the Customer Support team. We’re offering a 30-day trial to those interested in trying it out. Reach out to your Account Team today!
Lot Details in Inventory Change Log
We now record and show lot details as part of the inventory change log. Ask your Account Team for more details.
New Fixes for January 2024
- Fixed an issue where 3PL accounts were not recognizing the Lot tracking flag on the Child accounts
- Fixed an issue where Product were not being marked as a kit when the components were being added by CSV
- Fixed an issue where line items were not displaying on Shipping DOT
- Fixed an issue for WooCommerce stores where we were not sending “completed” status when shipped in ShipHero
- Fixed an issue with NZPost where we were sending customs doc as null
- Fixed an issue with FedEx International printing 0 cost label
- Fixed an issue where Instagram & Facebook orders were being auto fulfilled
- Fixed an issue where Low Stock Notification was not triggered
- Fixed an issue where we were not removing the correct amount of products with partially picked orders
- Fixed an issue where Transfer Order was Timing Out when Auto-Adding all Products from Primary Warehouse
- Fixed an issue with Shopify where Line Items fulfilled outside ShipHero were marked as canceled in SH
- Fixed an issue where USPS labels were printing with bad format for orders shipped to military addresses APO/FPO/DPO
- Fixed an issue with Purchase Orders where Auto Adding products was not working
- Fixed an issue with Shipped Items V2 report not showing all data
- Fixed an issue with Shopify POS with Build Kits not deducting inventory from components
Jan 25, 2021 | Blog, The Fulfillment Innovation Wheel
ShipHero recently launched The Fulfillment Innovation Wheel to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.
The Fulfillment Innovation Wheel listed a set of twelve (12) capabilities that fulfillment providers and logistics companies should implement to continually delight their customers and push themselves towards greater success and innovation.
The twelve capabilities are:
- 2-Day Delivery
- Same Day Shipping
- At the Box Personalization
- Designed for Returns
- Sustainable Fulfillment
- Resilient Shipping
- Distributed Fulfillment
- Data Now
- Automation
- Scale Up and Out
- Integration Stack
- Professional Services
In this article, we will be diving into the Capability #4: Designed for Returns.
And be sure to stay tuned for future articles as we deep-dive into each capability.
Capability #4: Designed for Returns
Brands and retailers today focus a majority of their efforts on capturing the attention of their customers and closing the sale, collectively spending millions on advertising, social media campaigns, and a sleek, sexy website custom-fitted with a smooth online checkout process. But, what about after the sale?
If that hard-earned customer decides to return your product, which happens about 30% of the time on average, then faces a subpar return experience… well, that customer loyalty goes down the drain right alongside all those advertising dollars burned to get their business.
Plain and simple, customers have come to expect a quick and easy return process. Can’t you just hear them shout “It’s 2021! why can’t this be easier?!” into the ear of your poor customer service rep? That’s why a growing number of businesses, led by Amazon and Walmart eCommerce, have taken the customer-centric approach by offering generous return policies and a frictionless return process.
While this may leave your customers happy, product returns can have an immense impact on conversion rates, on increasing costs, and on complications to your inventory management… without the right returns strategy in place, that is. So how can you offer the return experience your customers have come to expect, without causing serious damage to your margins?
Frictionless Returns
Retailers and brands that outsource their fulfillment need to choose a third-party logistics (3PL) provider that is fully-equipped and ready to offer frictionless returns. So, what does that look like?
The key to frictionless exchanges and returns is automation, paired with generous return policies and clear-cut rules for restocking and inventory management. At ShipHero specifically, we paired with Returnly so that our brands and retailers can offer a seamless, self-service online return experience, complete with a Returns Center and Returnly Credit. Here’s how we make it happen.
Automation
Returnly helps Shiphero users create a fully branded, self-serve return center, complete with all the necessary automation and policy controls to reduce operating costs and give customers all the options they want upfront.
Returnly Credit
Slow refunds make online returns stressful, but online retailers certainly aren’t willing to take the risk of the returned item being unsellable before issuing refunds. So while customers wait, a lengthy refund process with a lack of visibility over refund status could make your customers lose trust in your business. That’s why we offer Returnly Credit.
If a shopper opts for a refund, Returnly offers an instant credit to shop your site while the return is processed. And when you save the sale, Returnly pays for the order so your customer gets the right item before returning the wrong one, completely risk free. This decreases your shipping time and increases the return experience for the customer.
Convert Returns to Repurchases
ShipHero and Returnly seamlessly transfer data to manage and track the return process within ShipHero’s platform. This improved data integration with Returnly makes returns seamless for you and the customer, better positions you to convert returns into repurchases, and saves time and revenue for your business.
Designed for Returns is the capability that can truly make the difference when it comes to customer loyalty and repeat business. So if you are a brand or retailer outsourcing to a 3PL, ensure that they offer a frictionless return process to delight your customers. And if you are a 3PL, having a well-executed return strategy is the best way to handle the ever-growing number of product returns.
Learn more about ShipHero’s industry-leading warehouse management software.
Apr 6, 2021 | Blog, The Fulfillment Innovation Wheel
ShipHero recently launched The Fulfillment Innovation Wheel to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.
The Fulfillment Innovation Wheel listed a set of twelve (12) capabilities that fulfillment providers and logistics companies should implement to continually delight their customers and push themselves towards greater success and innovation.
The twelve capabilities are:
- 2-Day Delivery
- Same Day Shipping
- At the Box Personalization
- Designed for Returns
- Sustainable Fulfillment
- Resilient Shipping
- Distributed Fulfillment
- Data Now
- Automation
- Scale Up and Out
- Integration Stack
- Professional Services
In this article, we will be diving into Capability #8: Data Now.
And be sure to stay tuned for future articles as we deep-dive into each capability.
Capability #8: Data Now
It’s Your Data, and You Need it Now!
Now that that’s out of the way, let’s talk about the data reporting and insights that will make or break your business. Business operations and logistics enjoys the rather large benefit of being highly calculable, and therefore predictable.
Of course with the infrequent exception, building a resilient and optimized supply chain is made possible through accurate data collection, in-depth analysis and reporting, and intelligent predictions to beat the competition.
In this article, we’ll dive into:
- How to create the right data reports,
- How you can build a robust data pipeline, and
- How to use those insights to make intelligent decisions
Analysis & Reporting
Your warehouse operations can be broken down into four disciplines: Inventory Management, Operations, Shipments, and Production Efficiency.
Inventory Management involves keeping your product in stock, replenishing when you’re out, handling stale inventory and more. Reporting asks how you can do this more efficiently and with less waste.
Operations is the day-to-day functioning of the warehouse, such as getting products safely delivered out of the warehouse (i.e., the pick-pack-ship process); it is also managing errors or mis-picks as well as FEFO/FIFO workflows. Reporting allows you to optimize warehouse capacity.
Shipments is the process of delivering packages from the warehouse to your customers door in the cheapest and most time-effective manner. Reporting helps you see where you spend too much or take too much time.
Production Efficiency is the performance of your employees, if they are adhering to policies, how quickly they can perform their task, etc. Reporting helps you increase productivity and identify rockstars.
Key Performance Indicators
The goal of your reporting should explicitly improve certain aspects within each of the four disciplines, commonly referred to as Key Performance Indicators (KPIs). A KPI is a very specific data point that your business will track and set SMART goals against.
For example, Time to Deliver is a very specific data point that your company can track to see the health of their Shipments processes. By measuring the duration between the product leaving the warehouse and arriving at the customer for each order, you will be able to understand how your business compares to the competition and customer expectations.
You should also set SMART goals for each KPI to continually improve your supply chain. SMART goals are:
- Specific, (e.g., Decrease Time to deliver)
- Measurable, (e.g., by .5 days)
- Attainable, (e.g., don’t set the goal at 8 hours)
- Relevant, (e.g., do your customers care about delivery time?)
- Time-Bound (e.g., by Q1 of 2022)
Understand every element of your warehouse at work by setting KPIs that have tangible benefits to your business, whether it’s reduced costs, increased efficiency, or improved customer experience.
Reference below for a non-exhaustive list of reports that ShipHero typically creates for their customers:
Inventory Management
- Inventory Change Log – Every inventory change is logged. Know what changed, why, when and by whom.
- Inventory Value Report – Review the total quantity and value of your inventory, right now, or by each month.
- Cost of Goods Report – Understand the product profitability across any given date period.
- Inventory Variance Report – Understand the actual quantity amounts of your inventory by any given date period.
- Sales by SKU Report – Quickly view product sales in each of your warehouses, with estimated time to sell based on historical sales velocity.
- Stale Inventory Report – Need to know the slow movers? Quickly identify products that might be sitting around and what to do about it.
Warehouse Operations
- Replenishment Report – Quickly identify inventory bins that are running low or are empty and replenish products.
- Serial Number Report – Individual products can be set to require a serial number log when shipped.
- Lots Report – Track inventory lots and expiration. Manage FEFO & FIFO workflows.
- Packer Error Report – Mistakes happen, no one is perfect. Just… Understand why they’re happening.
Shipments
- Shipments Report – Every shipping label, for every order, showing shipping cost and shipping charges.
- Shipped Items Report – Filter in detail what items have been shipping across orders.
Production Efficiency
- Picker Report – Every pick is logged. Review daily performance, including the number of unique items picked.
- Packer Report – Just as important to picking, know how your shipping team is performing.
Data Collection
Once you set your KPIs and important data points, you must now collect the right information to accurately track progress towards your goals. Many companies use software tools to automatically track and analyze KPI progress, but many startups implement manual counting and calculating on an Excel spreadsheet to yield the same results.
To begin building a robust data pipeline, you should ask the question “what do I need to know?” for each KPI.
In the Time to Deliver example, you need to know when the package was shipped out and when the package was delivered. But for the complete picture, you should also track how much the journey cost, who the carrier was, if there was any delay, etc. to be able to identify root causes of problems and create plans to improve the number going forward.
This may sound simple at first, but as your order complexity and business processes start to grow, finding automated solutions for KPI tracking and optimization is necessary. That’s why many companies turn to ShipHero’s WMS that gives powerful reporting capabilities with a simple click of the button.
Intelligent Decisions
Data analysis and reporting not only tells the current health and progress of your organization, but should also be used to make future-forward and long-term choices. This of course comes with a level of risk, depending on the quality of information.
In the example of Time to Deliver, if you determine that your product deliveries are arriving too late or over-budget, and you want to meet the 2-day delivery standard, then you can use reporting to make better inventory distribution decisions, like relocating inventory to closer warehouses.
Make sure you are getting the right reports into the hand of the right decision-makers so they can make the right choices. Nothing should be left to chance.
Wrap It Up
The amount of reports you can generate is virtually endless, so make sure you are starting with your SMART goals in mind. From there, ask yourself “what do I need to know” for each KPI and start collecting those data points. After the reports and KPIs are tracked, ensure your management team has proper visibility to be able to make intelligent business decisions.
Does your business have the right tools in place to offer affordable and sustainable 2-day delivery? If not, then you may find it hard to compete in the future, especially as more and more people elect for eco-friendly businesses with the same suite of capabilities.
If you’re already working with a fulfillment provider or 3PL, make sure that they’re well-equipped for the task. If not, maybe it’s time for a switch.
Our customers love that ShipHero can offer 2-day ground delivery anywhere in the contiguous United States at simple and transparent pricing. We attribute this success on the Fulfillment Innovation Wheel to Capability #8: Data Now.
Stay tuned next as we cover Capability #2: Same Day Shipping! It’s my data, and I need it now! ShipHero.
Learn more about ShipHero’s industry-leading warehouse management software.
Mar 29, 2021 | Blog, The Fulfillment Innovation Wheel
ShipHero recently launched The Fulfillment Innovation Wheel to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.
The Fulfillment Innovation Wheel listed a set of twelve (12) capabilities that fulfillment providers and logistics companies should implement to continually delight their customers and push themselves towards greater success and innovation.
The twelve capabilities are:
- 2-Day Delivery
- Same Day Shipping
- At the Box Personalization
- Designed for Returns
- Sustainable Fulfillment
- Resilient Shipping
- Distributed Fulfillment
- Data Now
- Automation
- Scale Up and Out
- Integration Stack
- Professional Services
In this article, we will be diving into Capability #1: 2-Day delivery.
And be sure to stay tuned for future articles as we deep-dive into each capability.
Capability #1: 2-Day Delivery
Staying competitive in today’s eCommerce landscape is easy! From the moment when the customer clicks ‘Order’, you just need to be prepared to cover potentially hundreds of miles to deliver your products to their doorstep … in under 48 hours. Tick-tock!
2-day delivery has become the standard in eCommerce delivery, with major retailers like Amazon, Walmart, Target, and just about any business that wants to stay competitive all offering next-day delivery.
While the concept is simple, implementing 2-day delivery for your far-reaching customer base can be a huge undertaking. Not to mention, failing to meet this promise could result in irreparable damage to your credibility and brand.
So how can your business offer 2-day shipping? And what about sustainability?
Against the wishes of many environmentalists, the demand for speed and convenience has sky-rocketed during the COVID pandemic, with sustainability getting pushed to the wayside for more carbon-heavy transportations like air freight.
But will these carriers eventually have to pay the piper for their environmental footprint, and are there more sustainable options when it comes to 2-day shipping. Let’s dive in.
How Do Carriers Offer 2-Day Delivery?
Let’s first demystify what happens from the moment you click “Buy Now” until the package hits your doorstep.
First, your order information hits an order management system, which automatically transfers data to the appropriate fulfillment center based on inventory levels, warehouse capacity, cost and distance.
Next, a warehouse worker will be assigned to the order, with explicit instructions on how to pick the items, pack them in a box, and label the package correctly. The standard for getting this process completed is typically 24 hours.
From there, the order management system calculates the best shipping method based on carrier availability and cost. Depending on distance from the fulfillment center, the carrier will be air or ground freight. These are typically cargo planes or eighteen-wheeler trucks.
Once delivered to the closest distribution center, the package enters ‘last mile delivery’. Based on your address and the orders of your fellow consumers, the optimal route is calculated for delivery speed performance, and in rare cases, based on energy efficiency.
Finally, once those cute little delivery trucks arrive at your address, the mail carrier huffs it up your front steps and drops your package at your door. All the while, customers have been given access to real-time updates and tracking information so they can be with their package virtually every step of the way.
Phew, k you do that now. The eCommerce giants are able to offset the massive costs of offering free 2-day delivery in order to jockey for market position and win more customers, and sustainability is always an afterthought.
Through proper planning and partnering with the right fulfillment provider, your business can offer affordable and sustainable 2-day shipping to compete with the eCommerce elites. How? So glad you asked!
Your Guide to Affordable 2-Day Delivery
Ultimately, keeping 2-day delivery costs low while minimizing your carbon footprint comes down to the successful implementation of the following capabilities:
- Distributed Fulfillment
- Streamlined Pick-Pack-Ship
- Ground Priority
Distributed Fulfillment means intelligently bringing inventory closer to your customers through a distributed network of fulfillment centers placed around the country and/or globe. With the right Inventory Management System, you can forecast where your orders will come from and intelligently distribute your inventory accordingly.
With this in place, you can minimize the distance in which your products must travel, which reduces delivery times and gives you more flexibility in shipping options.
Streamlined Pick-Pack-Ship means not a second goes to waste when orders are sent to your warehouse. Full-service Warehouse Management Systems guide warehouse workers through every step of the process to eliminate human error and expedite getting packages out the door.
Ground Priority is achieved when your inventory is properly located and your warehouse operations run smoothly, so that you can offer more affordable and sustainable ground shipping every time, as opposed to resorting to costly and carbon-intensive air freight.
Wrap It Up
Does your business have the right tools in place to offer affordable and sustainable 2-day delivery? If not, then you may find it hard to compete in the future, especially as more and more people elect for eco-friendly businesses with the same suite of capabilities.
If you’re already working with a fulfillment provider or 3PL, make sure that they’re well-equipped for the task. If not, maybe it’s time for a switch.
Our customers love that ShipHero can offer 2-day ground delivery anywhere in the contiguous United States at simple and transparent pricing. We attribute this success on the Fulfillment Innovation Wheel to Capability #1: 2-Day Delivery.
Stay tuned next as we cover Capability #2: Data Now! It’s my data, and I need it now! ShipHero.
Learn more about ShipHero’s industry-leading warehouse management software.
Mar 23, 2021 | Blog, Fulfillment, The Fulfillment Innovation Wheel
ShipHero recently launched The Fulfillment Innovation Wheel to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.
The Fulfillment Innovation Wheel listed a set of twelve (12) capabilities that fulfillment providers and logistics companies should implement to continually delight their customers and push themselves towards greater success and innovation.
The twelve capabilities are:
- 2-Day Delivery
- Same Day Shipping
- At the Box Personalization
- Designed for Returns
- Sustainable Fulfillment
- Resilient Shipping
- Distributed Fulfillment
- Data Now
- Automation
- Scale Up and Out
- Integration Stack
- Professional Services
In this article, we will be diving into Capability #6: Resilient Shipping.
And be sure to stay tuned for future articles as we deep-dive into each capability.
Capability #6: Resilient Shipping
Is your business sufficiently protected from supply chain risks like extreme weather events, supplier disruptions, and well… pandemics?
COVID-19 has certainly had an immense impact on global trade and domestic supply chains, but this hasn’t been an isolated incident, with SARS, measles, swine flu, ebola and avian flu all resulting in similar yet less severe business interruptions at a global level. Moreover, domestic supply chains are frequently plagued by extreme weather events, supply shortages, and carrier delays.
Supply chain resilience refers to a company’s ability to conduct normal business operations despite sudden disruptions or unexpected events that negatively affect supply chains and order fulfillment. Resilient supply chains are also able to quickly recover from outages and achieve pre-disruption levels of functionality.
As an example, many FBA merchants use ShipHero for FBM to avoid stock outs, maintain emergency inventory stockpiles, and provide diversified fulfillment options. In this article, let’s uncover how businesses can build a resilient supply chain and delivery network.
What Is a Resilient Supply Chain?
To start building your roadmap towards supply chain resiliency, you need to know what a resilient supply chain looks like. According to a recent study, these are the five core principles of a resilient supply chain:
- Rapid detection, response, and recovery. Your business must be able to quickly detect events, identify optimal response options, and achieve full-scale recovery.
- Complete oversight and control. Your business should have end-to-end visibility into your supply chain, along each step of the fulfillment journey, as well as the ability to take action quickly.
- Preparation for any scenario. Your business must prepare for a disruption before it happens with documented incident response plans, complete with specific steps and responsible parties for each scenario.
- Built-in redundancies and continuity. Your business must be able to account for process failures and bottlenecks, and provide additional surge capacity when disruptions arise.
- Intelligent demand planning. Your business can proactively avoid disaster scenarios with distributed fulfillment and effective inventory management.
Are these five principles present when looking at your own supply chain?
If you outsource your fulfillment, ensure that your fulfillment provider can guarantee a resilient supply chain with the above principles.
If your business fulfills in-house or you are a 3PL provider, consider building in the following practices for a resilient supply chain.
Building Supply Chain Resiliency
Hope for the best, plan for the worst. Your business can minimize damage from supply chain risks with the following best practices:
Map Out Your Fulfillment Processes
By documenting your end-to-end fulfillment process, you have a powerful visual tool to understand your supply chain and identify any possible pain points. Consider creating a process diagram and list relevant people at each step.
As for data, how does information flow through your supply chain? Is it automated? Or does it heavily rely on the copy/pasting of a single employee? By creating a full picture of how data flows through your supply chain, you can identify possible bottlenecks or dependencies that could inflict serious damage to your supply chain in times of crisis. Consider creating a process diagram of how data moves around your business (i.e., data flow diagram) and list relevant people at each step.
Get Inventory Insight and Control
Is your inventory where it should be at any given moment? Proper inventory management helps you avoid surplus inventory gathering dust on warehouse shelves and accumulating storage fees, while guarding against stock-outs and shortages in certain regions. Not to mention, intelligently distributed inventory allows you to reduce shipping costs and decrease delivery times.
Consider investing in modern inventory management software to get oversight and control of your inventory, or switch to a fulfillment provider, like ShipHero, that uses advanced warehouse management software across their network of fulfillment centers.
Build Automation Rules
In times of crisis, stressful or crunch-time decision making is very susceptible to human error. Automation can eliminate human interference in your core business processes, while leaving room for intervention when needed.
Consider implementing automation rules in your inventory management software; for example, automation rules can help place orders with the most cost-efficient suppliers when inventory hits certain levels, or automation can be used to choose the optimal delivery carrier when many face delays.
Provide Real-Time Collaboration
Do you have the ability to access and share supply chain information in real-time? Being able to access up-to-date information and reporting enables better decision-making and emergency planning. Consider implementing procedures and systems to get the right data to the right decision makers.
Manage Product Returns
Product returns introduce a lot of complications in your supply chain, including unpredictable inventory levels, increased costs, and reduced conversions — and this is amplified during situations of surging demand or delayed shipments. With a more effective return strategy (i.e., reverse logistics), your business will be more prepared for when the ship hits the fan.
Consider designing your supply chain and inventory management process with returns built in, or switching to a fulfillment provider that offers return credit and advanced reverse logistics capabilities.
Wrap up
With the above best practices in place, your data-driven supply chain will be optimized for resiliency, and be able to quickly detect, respond to, and recover from any sudden supply chain disruptions.
Our customers love that ShipHero provides a resilient and data-driven supply chain that can offer 2-day shipping anywhere in the contiguous United States at simple and transparent pricing. We also prioritize ground shipping, making for an eco-friendly supply chain. We attribute this success on the Fulfillment Innovation Wheel to Capability #6: Resilient Shipping.
Stay tuned next as we cover Capability #1: 2-day Delivery! Get 2-day, today. ShipHero.
Learn more about ShipHero’s industry-leading warehouse management software.
