Nov 2, 2022 | Blog
Are you using BigCommerce for your business? Or, are you thinking about using BigCommerce? We don’t blame you. In fact it’s one of the most trusted eCommerce softwares on the market with a highly rated industry leading customer satisfaction team. This SaaS software can put you ahead of the game when it comes to your online store and it integrates with multiple different softwares your business can utilize.
What is BigCommerce?
If you haven’t heard of BigCommerce, this software provides retailers with a SaaS platform to serve all their eCommerce business. The software includes many customizable services such as online store creation and search engine optimization for businesses of all sizes. BigCommerce is a company who isn’t satisfied with “good enough”. They continually strive to push the boundaries of eCommerce offerings and have won several awards in doing so. No matter what the structure of your business looks like, this solution can work with all business models including multi-storefront, headless commerce, B2B, wholesales, omnichannel, international, and commerce-as-a-service. They offer both enterprise and essential solution offerings so you can pick the package which works best for you and your business. And the open API offers users the ability to tie other softwares for their business needs directly into BigCommerce.
If you’re unsure about the purchase of this software, BigCommerce provides you with key insights into their product before you buy so you know exactly what to expect from the software. With this 17 minute product tour video you get deep insight into the product itself.
Why use BigCommerce?
This is a platform to use if you want to customize your eCommerce solution to fit your way of doing things. Their goal is to offer business owners flexibility, scalability, and the speed and agility needed to protect and grow sales. They even claim that by using BigCommerce, many leading brands have seen significantly lower TCO (total cost of ownership) which gives your product better value in the long run.
Perhaps one of the best features of BigCommerce is the Apps Marketplace. Here you can find 100s of apps and integrations which can help your business with anything from advertising to email marketing. And if you have any issues along the way they offer many forms of customer support including a live chat, phone support, email support, and a listing of common questions with their resolutions. Order management for your business is simple with their order management workflow that starts at receiving an order. It has a built-in list of order statuses which represent the stages within the fulfillment process, and of course the stages can be re-labeled to fit the workflows your business uses. Which means any fulfillment process you currently have, or want to build, will be achievable within this platform.
BigCommerce Fulfillment Options
But at the end of the day, BigCommerce is only a software solution. You still need to decide how best to fulfill your customers’ orders. Especially as you grow or experience seasonal spikes it’s important to have a fulfillment option which can scale as you need it to. This is why we have curated a list below of some of the best order fulfillment services for you as a seller if you use BigCommerce.
ShipHero
This is a great option if you want to dump the headache of running your own warehouse or if you need technology to help streamline your warehouse processes. With both a steller warehouse management system (WMS) and a fully outsourced fulfillment option, their clients get peace of mind. The warehouse management system (WMS) streamlines your warehouse’s entire processes and procedures to increase efficiency and help your team become more effective. The WMS also helps you get rid of manual processes and lost paperwork, confusing fees, and bland generic packaging. Plus, they offer a highly rated Client Support team so you work with a fulfillment expert to help you with any questions or concerns on your supply chain. Overall, whether you want to outsource your order fulfillment or need software to streamline your processes, they have the industry knowledge to help.
Cahoot
This is a great solution when looking at your order fulfillment. They have a quick setup with BigCommerce which allows you to connect your store and delineate your inventory to Cahoot fulfillment locations. In terms of order volume you can start small, then as you grow you can add product inventory in any Cahoot fulfillment center where your products are popular. They have high fulfillment standards and reliable same-day fulfillment Monday through Saturday. Working with them will get you automatic order routing and fulfillment, free and fast shipping options, a nationwide shipping network, and visibility into each delivery. They want to help you level the playing field against marketplaces like Amazon and Walmart who create high shipping expectations with fast and free shipping options for their clients and can help you do so within your own store.
ShipMonk
You can sync your BigCommerce store directly with ShipMonk. Account creation takes seconds and your account is free until you start shipping products from their warehouse. They are a great fulfillment solution for high growth brands who need an elastic fulfillment solution. With their inventory portal, you can identify best selling SKUs and receive restock alerts. Plus they understand shopping cart abandonment is often due to high shipping costs, so they negotiate great shipping rates for those on their platform. And they are not limited to the type of product they can help you fulfill as they have experience with many products from clothing to food and beverage products. In addition, they continually and heavily invest in warehouse automation technology. This means your business will get the advantage of quicker fulfillment at cheaper costs as this technology continues to improve.
Verde Fulfillment
With a direct integration into BigCommerce, Verde Fulfillment is another good choice. Their cloud-based system gives you real-time access to many features including back orders. They can also help your business with all the frustrating product returns, especially because you want your customers to have the best experience possible when they have to return something. In addition their inventory management system is intuitive and smart as it’s updated in real-time. And, as you know, limiting SKUs in your supply chain is important. With Verde you can set inventory alarms which automatically help you to know when a product has low value and you can quickly disable it from your shop. Their goal is to offer your clients the best experience possible so they will become repeat customers.
Amazon MCF
New to the BigCommerce App Marketplace, you can integrate with the Amazon Multi-Channel Fulfillment (MCF) network in order to fully automate your fulfillment. This gives your BigCommerce orders the power of reliable Amazon fulfillment, even if you don’t sell directly on the Amazon site. With the Amazon MCF network you’ll get faster shipping, your customers will receive delivery promises at check out, and you can benefit from automatic inventory placement. These are Amazon-backed delivery dates so your customers know they will arrive ontime. Plus with Amazon MCF you can set customer price rules in order to have control over the cost of shipping. You can even replace Amazon’s rate with a rate of your own, or offer free shipping options.
Streamline Fulfillment
Streamline Fulfillment will connect directly to your BigCommerce store and handle your order fulfillment, shipping, and supply chain management on a global scale. When you sign on with Streamline an expert will work with you to analyze every part of your fulfillment process. In this consultation they will listen to your future plans and needs, while gaining an understanding of where you are currently at in your logistical journey. Together they will work with you to improve these processes so your company can save time and money. Which means you will get a tailored approach to your fulfillment specific to the needs of your business. For them an intimate relationship with their clients is important as they hope to be a partner their clients can trust to help them grow their business.
Fenix Commerce
With Fenix Commerce, you get an AI-powered solution which streamlines the order experience. It has API’s for easy integration and supports all major eCommerce platforms, including BigCommerce. They can help you reduce shipping costs because their software can intelligently select the cheapest shipping providers which will get an order to its destination within the necessary shipping window. Plus the platform can route orders to specific fulfillment centers so you can optimize your inventory management by keeping products within customer proximity. And if you need to get set up quickly they can have you up and ready to go in as little as two days. Which means you have quick data to help you make high quality logistical decisions for your company. They specifically seek to help retailers and DTC brands provide a high quality experience to their customers.
Deliverr
This order fulfillment solution allows you to fulfill your orders with 2-day and next day delivery. They handle your port to porch logistics with the goal to help businesses of all sizes offer competitive shipping. With their vast network you can keep your product within 100 miles of your customers. And they understand that your business may require multiple fulfillment and logistics services in order to fill your business needs. With them you can mix and match logistical services as you build out your company’s future. Plus, if you like the idea of Amazon’s MCF fulfillment, Deliverr’s transparent pricing model is competitive with Amazon’s MCF network. And the prices you see with the cost calculator on their site includes receiving, picking and packing, order handling, packaging, and shipping to any destination in the US.
ShipWire
This order fulfillment software works with BigCommerce and is available via Order Desk. It’s a ready-to-use integration which doesn’t require in-depth knowledge to set up. With ShipWire you get access to order entry directly from BigCommerce to ShipWire automatically, order tracking with expected delivery dates, multi-ship support to handle multiple shipping address on an order, order sync daily, and an inventory sync from ShipWire to BigCommerce four times a day. ShipWire is also a global fulfillment solution so it’s a great option if you have customers outside of the US. They specifically work to fulfill orders within eCommerce, direct-to-customer, retail, and dropship channels. Plus they have been operating for over 40 years! Which gives you a marid of logistical expertise at your fingertips.
Flowspace
This is a great easy to use platform for eCommerce brands. The Flowspace has a connected network of fulfillment centers nationwide which allows you omnichannel fulfillment at scale. With their software you can retain customer data, beat customer expectations, and support your omnichannel eCommerce. You can connect your brand with a one click integration and begin optimizing your inventory with the Network Optimization algorithm. This helps you identify the fulfillments centers needed for your business and can help you to determine how best to allocate your inventory. They make fulfillment easy by handling the process of picking, packing, and shipping your product. And it connects everything in one place offering an eCommerce command center where you can organize your orders and inventory, and gain customer insights.
Conclusion
When it comes to customer retention and shopping cart abandonment, every eCommerce store is looking for ways to improve the customer experience. If you use an order fulfillment system alongside your BigCommerce store you can streamline those processes and give your clients a high quality experience. Companies who ship faster and share tracking information along the way build customer retention. This is why the fulfillment solution you choose is such an important choice. Aside from your store, it’s one of the most palpable processes within your business a customer will experience. And if you use one of the above fulfillment services, you get the chance to leverage the knowledge of logistical industry experts who are as dedicated to quality as you are.
Don’t work with BigCommerce? Find the best carriers for many of the highest profile marketplaces on the web.
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Dec 1, 2022 | Blog
What is Salesforce Commerce Cloud?
Salesforce is continually hailed as one of the largest technology companies in the world. As they build, purchase, and partner with different services, their aim is to have any tool you need for your business available within their software.
And now, Salesforce has expanded this offering with Salesforce Commerce Cloud. Formally Demandware, this service is cloud-based and helps companies centralize the way they engage with customers during the sales and shipping process. This offering helps you to sell and fulfill on any channel, deliver fast and efficient fulfillment, offers order lifecycle visibility, simplifies complex order routing, and allows your business to scale on a trusted platform. Plus it integrates into several fulfillment and shipping partners your company may need to utilize.
What is Order Fulfillment?
Order fulfillment is the all important task of assembling and shipping an order to your customer. It is the process in which a product goes from your warehouse to your customers front porch all inclusive of packing, shipping, and handling. Though Salesforce Commerce Cloud gives you in depth information on customer profiles, connects your inventory and fulfillment data to your CRM, and automates sending an order to your fulfillment partner, it does not yet have the option to get your product to your customer for you. Meaning you will need to find a fulfillment partner to work with in order to complete your logistical process.
How Does Salesforce Commerce Cloud Fulfillment Process Work?
With this commerce portal, you can connect to a provider’s platform, and send them orders for your business. The platform can connect to the fulfillment and shipping provider of your choice with custom API connections and workflow automations. And as orders are completed you can filter this information back into your Salesforce instance to get historical data on your customers.
What Does A Salesforce Commerce Cloud Order Fulfillment Provider Do?
Once an order is received, a fulfillment provider will pick the order from your inventory. Pack it, including any specialized packing or boxes for your company. Print shipping labels and send it to your customer on your preferred method of shipment. Many fulfillment providers have their own shipping trucks take your product directly from the fulfillment facility to your customer. Others contract with other shipping companies to get you the best competitive shipping rates on the market.
What Are the Benefits of Using a Salesforce Commerce Cloud Order Fulfillment Service?
With the Salesforce Commerce Cloud you can connect your commerce channels to your marketing and sales channels so you can see the big picture in one place. This platform will help you reduce costs, increase sales, and is a flexible and trusted commerce solution. With in depth automation you can customize workflows and processes specific to your company. And when it comes to selling where your customers shop, Salesforce Commerce Cloud can connect to any channel. As your business needs grow you can continue to integrate and scale with others within their vast partner network.
Find out more about ShipHero’s Fulfillment Solution!
Factors to Consider While Selecting an Order Fulfillment Partner for Salesforce Commerce Cloud
Order Fulfillment Speed
The speed of your fulfillment is a big factor when customers make the decision to return to your store. In a world of single day and two day shipping, waiting any longer can stop your customers from completing orders, and send them looking elsewhere. As you search for order fulfillment partners keep this in mind and look for their average shipping times as well as expedited shipping time and costs so you can get your product to your customers when they want it.
Storage and Fulfillment Fees
When you store inventory with a fulfillment partner, they will likely utilize different fees for different aspects of your inventory. These fees could be regarding weight and size of the product, as well as fees to get your order picked, packed, and shipped. They can range roughly $3 to 5$ per item. And if you have multiple items in an order at once, some companies offer a bulk rate.
Pricing
Additional costs for fulfillment providers may include storage costs, inventory distribution costs, bin occupation, palletizing costs, and much more. These round up to your overly monthly cost with a fulfillment provider. As you hunt for the perfect fulfillment partner, you can ask for a breakdown of costs in order to understand exactly what you’ll be paying and why. The best fulfillment partners will look at your current fulfillment spend, compare it to your needs, and help you find a process which saves you money and returns more margin to your pocket.
Returns Management
The hassle of returns can quickly turn off a customer. If they have a bad experience with your product, then have a bad return experience, you can almost guarantee they won’t purchase from you again. A good fulfillment provider can help you navigate the road to returns with return automation, warranties, and exchanges. Then they can also help you either ship the product back to a manufacturer (if the problem is a manufacturer defect) or restock the item into your inventory though this may come with restocking fees.
What To Look For In A Salesforce Commerce Cloud Fulfillment Partner
eCommerce Platform Integration
This integration is important because it will help connect your business systems together. Which means you can see your customers orders, inventory, sales, marketing, and accounting in one place. It gives you the advantage by allowing your brand to keep up when many customers convert on multiple channels at once. And it helps you eliminate manual data entry, and improves order accuracy and automates customer notifications through their buying journey. An integration into your eCommerce platform is essential.
Multichannel Integration
In your eCommerce strategy, multichannel integration means you have the ability to connect different systems or platforms involved in your eCommerce strategy together so you can streamline the processes between them and create a consistent shopping experience for your customers. With a multichannel integration you can sell online, instore, on amazon, on etsy, and many other locations. Marketplaces like Amazon, eBay, Google, and Walmart are key places to sell and a prime example of multichannel retailers.
Ease of Use
Whatever platform you choose, you shouldn’t need to be a rocket scientist to use it. Keep ease of use in mind when searching for a fulfillment provider. These solutions should make your life easier, not more complicated.
How We Chose the Best Salesforce Commerce Cloud Fulfillment Companies
The companies below can integrate directly into your Salesforce Commerce Cloud and are decided to help your business fulfillment processes shine. Each of them have specific pros and cons which we have evaluated and outlined for you below. Remember, choosing a fulfillment partner for your business makes a big difference for the customer experience, so make sure you choose a partner who understands your needs!
Best Salesforce Commerce Cloud Fulfillment Companies
Here are the Best Salesforce Commerce Cloud Fulfillment Companies:
If you want to dump the headache of running your own warehouse, or if you want to run your warehouse more efficiently, ShipHero has a solution. With a fully outsourced fulfillment option their clients have a powerful all encompassing logistics solution at their fingertips.
Pros
- Fully outsourced fulfillment solution
- User-friendly software interface
- eCommerce Integration
- Effective customer support
Cons
- Only 8 owned and operated warehouses
Pricing
- 0$ Setup
- Pick, pack, box & postage included in cost
- Can request a quote on website
- Flat rate, no zone pricing
Find out more about ShipHero’s Fulfillment Solution!
2. Unicommerce
This cloud based eCommerce solution can help automate your logistical needs. They ship directly to the customer, and provide a consistent customer experience with their omnichannel retailing solutions.
Pros
- Simplifies order processing
- Easy to use software
- Sell in various marketplaces
Cons
- Return management isn’t available
- Doesn’t work with FBA sellers
Pricing
- Choose from Standard, Professional, or Enterprise plans
- Can request a quote in the website
3. ERPAG
This cloud-based ERP (Enterprise Resource Planning) system is designed with small businesses in mind. It is a simple, fully customizable platform with inventory management capabilities.
Pros
- Small Business in mind
- Account integration included
- Customer Portal
- More than 50 shipper integrations
Cons
- eCommerce Integration only with Shopify, WooCommerce, Square, and Magento
Pricing
- 15 day free trial
- Pay by number of users
- Transparent pricing of $25/user/month
4. NetSuite
Acquired by Oracle in November 2016, NetSuite can help you host eCommerce stores, manage your inventory, track financials, and update customer relationship management systems.
Pros
- Cloud based ERP system
- Wholesale Distribution
- Software suite with additional plugins
Cons
- Works best if all systems are tied back to NetSuite
- Heavy learning curve
Pricing
- Schedule a product tour
- Monthly licensing fee + user fees
5. GoFrugal
An easy to use omnichannel ERP, GoFrugal helps you transform the customer experience and start online business with low investment. Plus if you join their ONDC network, you can push your market reach to new heights!
Pros
- ERPs for Retail, Restaurant, Distribution
- Help revamp the customer buying experience
- Loyalty program module
- Easy to use
Cons
- No way to bulk update prices
- Users report support team experience could be improved
Pricing
- Includes starter, standard, professional, and ERP plans
- Pay as you grow with cloud pricing
6. Zoho Inventory
This online inventory management software helps growing business in the US. With them you can manage and fulfill orders, streamline multiple sales channels, and oversee your warehouses. You can even manage your inventory on the go as their app works on both Android and iOS devices.
Pros
- Multiple shipping integrations
- End-to-end tracking
- Warehouse management
- Several out of the box integrations
Cons
- Focused on US businesses only
Pricing
- Free to sign up
- Allows for a demo account
- Pricing plans include several different options to choose from
Find out more about ShipHero’s Fulfillment Solution!
7. ShippingEasy
On their website, ShippingEasy claims to give their clients access to the lowest USPS shipping rates in the industry. Plus their easy-to-use platform integrates quickly and helps you automate workflows within your business.
Pros
- Discounted USPS and UPS shipping rates
- Automatic order imports
- Award winning support
- Several marketplace integrations
Cons
- Doesn’t store or handle your inventory
Pricing
- Free plan option
- Paid plan includes free trial
Final Thoughts
Your fulfillment journey will continually change. As you grow and expand so too should your fulfillment partner. We hope the above offers you several options you can consider as your business grows and moves through its fulfillment journey.
Order Fulfillment for Salesforce Commerce Cloud FAQs
What Is Order Fulfillment in Salesforce?
In salesforce Order Fulfillment will help you streamline the picking, packing, and shipment of your orders. It includes a package within the CRM which contains simple flows and processes you can use to create a fulfillment strategy for your business.
How Do I Create a Fulfillment Order in Salesforce?
In Salesforce, you can build automated processes to streamline your order fulfillment. Meaning when a customer selects “order”, your process will automatically send the order to the fulfillment provider you partner with.
What Is Included in Salesforce Commerce Cloud?
With the Salesforce Commerce Cloud, you get several features including the tools to create a highly responsive eCommerce website, Commerce Cloud Endless Aisle, Commerce Portals, Order Management, and access to extensive partners to help you with any business need. This is built directly into the core Salesforce Platform and is available to current users at an added cost.
Dec 30, 2022 | Blog
What is IoT?
The Internet of Things (IoT) refers to the interconnectedness of everyday objects, such as appliances, vehicles, and other items, that are equipped with internet connectivity and sensors. This allows them to collect and exchange data, enabling them to be controlled and monitored remotely. The goal of the IoT is to make our lives easier and more efficient by allowing us to access information and control a wide range of devices from anywhere, at any time.
The Role of IoT in Warehouse Management
IoT technology can be used in warehouse management to improve efficiency and productivity. For example, IoT sensors can be used to track the location and condition of inventory in real time, allowing warehouse managers to quickly and accurately assess the availability of items. This can help to reduce the time and labor required for inventory management tasks, such as stock-taking and reordering. Additionally, IoT sensors can be used to monitor the condition of the warehouse environment, including temperature and humidity levels, to ensure that inventory is stored in optimal conditions. This can help to prevent damage and spoilage of goods, improving overall warehouse efficiency.
How Does IoT Warehousing Work?
In the context of warehousing, IoT technology can be used to improve various aspects of the operation, such as inventory management, asset tracking, and temperature control.
For example, sensors can be placed on warehouse shelves to track the inventory levels of individual items. This information can then be sent to a central system, allowing managers to have real-time visibility into the status of their inventory. Additionally, RFID tags can be attached to assets, such as pallets or containers, to automatically track their location within the warehouse. This can help improve the efficiency of operations, as workers can quickly and easily locate the items they need.
Components of IoT Warehouse Automation
IoT Devices
These types of devices usually utilize smart sensors and gather data so it can be processed by any IoT-based systems. These devices can help monitor the warehouse and can track placement of assets and items left in a warehouse.
Gateway
This connects the IoT devices to your warehouse management system. These connections can happen through the WiFi network, a bluetooth connection, an ethernet connection, or even a cellular network.
Server
The server should be a dedicated computer which receives the raw IoT data. This data will be processed into insights or saved for future use. And it largely helps in automation of warehouse processes because a server sends commands to smart devices with developed algorithms. You can use two types of servers for your IoT warehouse automation, the first is a cloud-based server which means the shared server is maintained by a third-party company. And the second is an on-premises server which is a server physically installed in your warehouse that creates a local IoT device network.
Application
This is what is installed on your desktop so the user can interact with the data collected from IoT devices and also allows the user to send commands to IoT devices from their computer to help and maintain the warehouse management inventory tracking system.
Edge Computing
If you are a larger warehouse with a high amount of IoT systems, you are likely to use edge computing. This layer sits between the gateway and data storage and allows extra edge nodes to review data from the smart IoT devices and send direct commands without the information needing to be reviewed by the central server or an application user.
Benefits of IoT Warehouse Automation
The use of IoT (Internet of Things) technology in warehouse automation can bring numerous benefits to businesses. Some of these benefits include the following:
Real-Time Tracking
One of the main advantages of using IoT in warehouse automation is the ability to track and monitor inventory in real-time. This can help businesses reduce the amount of time and effort spent on manual inventory checks and improve the accuracy of their inventory records. In addition, IoT technology can be used to automate many warehouse tasks, such as picking and sorting items, which can help increase productivity and reduce the need for manual labor.
Reduced Operating Costs
When using an automated warehouse you often require less space and staff. Plus because of the IoT programing you will likely experience a reduction of costs because these processes prioritize and reduce congestion, improve sustainability efforts, and optimize processes.
Increased Performance
Because IoT optimizes your warehouse, you’ll find your ability to pick and pack orders as well as onload and sort inventory has increased both in speed and efficiency. The IoT sensors offer data on how to optimize working areas and allow you to reduce the use of manual labor and occurring errors.
Improved Inventory Management
With IoT devices you’ll have continual visibility into your inventory because the RFID tags within these devices will provide the information needed. You can track the status of materials (raw, work-in-progress, finished goods) as well as the type of materials. Plus you’ll always have an accurate inventory count.
Automated Maintenance
IoT devices use predictive maintenance which means you can schedule maintenance and inspection routines systematically so your business and your clients can avoid experiencing the frustrations of unplanned downtime.
Enhanced Forecasts Accuracy
Because of the consistency in understanding inventory counts and order volumes, with IoT devices your forecast accuracy will skyrocket. Which means you will have a stronger understanding of what to purchase more of and what is just sitting on your shelf.
Reduced Risks
IoT technology can help improve the safety of warehouse workers by enabling the use of automated equipment and robotics. This can help reduce the risk of accidents and injuries on the job, improving overall workplace safety.
Detailed Analytics
Another benefit of IoT-powered warehouse automation is the ability to collect and analyze data on warehouse operations. This data can be used to identify areas for improvement and optimize warehouse processes, leading to increased efficiency and cost savings. For example, data analysis can help businesses determine the most efficient routes for picking and packing orders, reducing the amount of time and effort spent on these tasks.
Devices for IoT Warehouse Management
RFID Tags
RFID stands for radio-frequency identification. An RFID tag is a small device which uses radio waves to transmit information wirelessly. It typically consists of a small chip and an antenna, and are commonly used in a variety of applications, including inventory tracking, access control, and contactless payments. In the context of warehousing, RFID tags can be attached to pallets, containers, and other assets to automatically track their location within the warehouse. This can help improve the efficiency of operations, as workers can quickly and easily locate the items they need.
Smart Sensors
Warehouse smart sensors are sensors used to monitor and track various aspects of a warehouse, such as inventory levels, temperature and humidity, and the movement of goods. These sensors are typically connected to the internet, allowing them to transmit data to a central system where it can be accessed and analyzed. They can also be used to track the inventory levels of individual items, providing real-time visibility into the status of the warehouse’s inventory. This can help managers ensure they have the right products on hand to meet client demand, and can help prevent stock-outs and overstocking.
Beacons
An IoT beacon is a device which uses Bluetooth technology to transmit a signal to nearby devices, such as smartphones or other sensors. Beacons are often used in location-based applications, such as retail stores or museums, to provide information or services to nearby clients or visitors. In warehousing, IoT beacons can be used to track the location of assets and inventory within the warehouse. A beacon attached to a pallet of goods can transmit its location to a central system, allowing managers to track the movement of goods within the warehouse in real-time.
AI Cameras
AI cameras are cameras which are equipped with artificial intelligence (AI) technology, allowing them to analyze and interpret the visual data they capture. This can enable them to perform tasks such as object recognition, facial recognition, and motion detection. Using AI cameras in a warehouse allows employees to track the movement of goods within the warehouse, providing real-time visibility into the location of inventory and assets. AI cameras can also be used for security purposes, such as monitoring access points and identifying unauthorized individuals.
GPS Trackers
Warehouse GPS trackers are devices that use the Global Positioning System (GPS) to track the location of assets and inventory within a warehouse. These devices typically consist of a GPS receiver and a transmitter, which are attached to the assets being tracked. Warehouse GPS trackers can help workers quickly and easily locate the items they need, reducing the time and effort required to find and retrieve items. Additionally, GPS tracking can help prevent loss or theft of assets, as managers can monitor the movement of goods within the warehouse and identify any unauthorized activities.
Smart HVAC Systems
Smart HVAC systems, or smart heating, ventilation, and air conditioning systems, are HVAC systems equipped with sensors and connected to the internet, allowing them to be controlled and monitored remotely. The use of smart technology in HVAC systems allows for greater control and efficiency. For example, sensors can be used to monitor the temperature and humidity of a space, and the system can be automatically adjusted to maintain optimal conditions.
Latest IoT Warehousing Trends
Automated Guided Vehicles
Warehouse automated guided vehicles (AGVs) are robotic vehicles used in warehouses to move goods and materials from one location to another. These vehicles are equipped with sensors and other technology that allows them to navigate autonomously within the warehouse, following predetermined paths or instructions. AGVs can be used for a variety of tasks in a warehouse, such as moving goods from one location to another, loading and unloading trucks, or transporting materials to and from production areas. They can operate 24 hours a day, seven days a week, providing a reliable and efficient means of handling goods within the warehouse.
Blockchain Item Tracking
Blockchain item tracking refers to the use of blockchain technology to track and manage the movement of goods and assets within a supply chain. Blockchain is a distributed database technology that allows multiple parties to securely record and verify transactions without the need for a central authority. While item tracking a blockchain can be used to create a shared and immutable record of the movement of goods and assets within a supply chain. Each transaction, such as the transfer of ownership or the movement of goods from one location to another, can be recorded on the blockchain, providing a transparent and verifiable record of the item’s history.
AR Glasses
AR glasses, or augmented reality glasses, are wearable devices which can superimpose digital information onto the real world. In a warehouse setting, AR glasses can be used to provide workers with real-time information and guidance, helping them to perform their tasks more efficiently. By simply looking at a particular shelf or location, workers can see the items stored there, along with any relevant information, such as quantity or expiration date. This can help workers quickly and easily locate the items they need, reducing the time and effort required to find and retrieve items.
Drones
Drones, or unmanned aerial vehicles (UAVs), can be used in warehousing for a variety of tasks, such as inventory management, asset tracking, and security. For example, drones equipped with sensors and cameras can be used to scan warehouse shelves and automatically count and track the inventory levels of individual items. This can provide real-time visibility into the status of the warehouse’s inventory, allowing managers to quickly and easily identify any shortages or overstocks.
Key Takeaways
Overall, using IoT to automate your warehouse is a good way to boost your efficiency and bring your warehousing operations into the future. If you’d like to talk to an expert on how to automate your warehouse, check out ShipHero!
IoT in Warehouse Automation FAQs
What is Warehousing Automation?
Warehouse automation encompasses anything which automates and improves the efficiency of warehouse tasks. This can include software, hardware, people, and robotics which can be integrated in every part of warehouse operations including unloading and sorting inventory, picking and packing items, capturing warehouse data, automated retrieval of items, and automated shipping processes.
What is IoT Automation?
IoT automation refers to the use of IoT (Internet of Things) technology to automate various processes and tasks. IoT automation involves the connection of physical devices, such as sensors and actuators, to the internet, allowing them to send and receive data. In a warehouse setting, IoT automation can be used to improve various aspects of operations, such as inventory management, asset tracking, and temperature control.
How IoT Improves Warehouse Operations?
While IoT is a new trend in the logistics industry, it is one way in which many warehouses have found the answer to every warehouse’s question: How do I ship faster and more accurately? With IoT, many warehouse processes can be automated in order to reduce operation costs, boost performance, reduce human error, and lower risks.
Aug 2, 2023 | Blog
The path to Shopify success is paved with efficient inventory management, streamlined order fulfillment, and the power of the perfect Warehouse Management System (WMS). Join us as we explore the vital role of a top-notch WMS in revolutionizing your operations. Because the right WMS can be the game-changer that propels your business to new heights of success.
What is a Warehouse Management System (WMS)?
Efficient inventory management systems are crucial for success. This is where a WMS comes into play. A WMS is a software solution that helps businesses optimize their warehouse operations, improve inventory control, and streamline order fulfillment processes.
What is Shopify?
Shopify is a leading eCommerce platform that empowers entrepreneurs and businesses of all sizes to set up online stores and sell products to customers worldwide. With its user-friendly interface, robust features, and extensive app ecosystem, Shopify has become the go-to choice for retailers, merchants, and sellers across the globe.
What Should a Shopify WMS Do?
A Shopify WMS should seamlessly integrate with your Shopify store and provide a wide range of functionalities to enhance your inventory management and order fulfillment processes. It should also offer features such as real-time inventory tracking, accurate order management, efficient replenishment capabilities, and comprehensive reporting and analytics. With a WMS, you can achieve optimal inventory control, streamline operations, and deliver exceptional customer experiences. And without it, your fulfillment might get backlogged or even miss entire orders!
Criteria for Choosing the Best Shopify WMS
When selecting a Warehouse Management System for your Shopify store, several key factors come into play. Here are some to consider:
Connection
A seamless integration enables real-time data synchronization, ensuring that your inventory levels, order statuses, and customer information are always up to date. With automatic updates flowing between Shopify and your WMS, you can eliminate manual data entry and the risk of data discrepancies. Whether it’s tracking inventory levels, monitoring order statuses, or accessing customer information, a reliable connection is vital for maintaining a cohesive and efficient workflow. This means the integration capabilities of your WMS partner should be robust.
Features
When evaluating different WMS options, thoroughly assess the features they offer. Each WMS provides different features so you should find the one that most aligns with your specific business needs and goals.
Start by evaluating the inventory tracking capabilities of the WMS. Look for features that enable real-time tracking of inventory levels, allowing you to have a clear view of stock availability and prevent stockouts.
Next, consider the order management features. A robust Shopify WMS should offer efficient order processing, including features such as order consolidation, batch picking, and order prioritization. The ability to manage multiple sales channels, synchronize orders across platforms, and automate order fulfillment workflows can greatly streamline your operations.
Barcode scanning capabilities are another important aspect to consider. Barcode scanning functionality enables faster and more accurate inventory management and order processing.
And lastly, integration with other sales channels is crucial if you sell across multiple platforms. Ensure that the WMS seamlessly integrates with other popular sales channels like Amazon, eBay, or Etsy. This integration enables centralized inventory management and order processing, preventing overselling or discrepancies between platforms.
Cost
Some WMS options may offer subscription-based pricing, where you pay a monthly or annual fee for access to the system. Others may charge transaction fees based on the number of orders processed through the WMS. But while it’s important to consider the cost, it’s equally crucial to assess the potential return on investment (ROI) that the WMS can offer. Calculate the efficiency gains, reduction in errors, and time savings that the WMS can bring to your business. Evaluate how these benefits translate into increased revenue, cost savings, and improved customer satisfaction. By weighing the potential ROI against the cost, you can make a more informed decision and choose a WMS that offers the best value for your investment.
Implementation
Look for a WMS provider that offers user-friendly setup processes and provides clear documentation to guide you through the implementation steps. The availability of reliable customer support is crucial in case you encounter any challenges or have questions during the implementation process. A well-supported and smooth implementation can contribute to a successful transition to the new WMS and ensure minimal disruption to your operations.
The Best WMS for Shopify
After careful consideration of the criteria mentioned above, one Shopify WMS stands out for its exceptional features and seamless integration: ShipHero. ShipHero offers a comprehensive and user-friendly solution for warehouse management, order fulfillment, and inventory control. Its robust feature set sets it apart as one of the best options for Shopify users. In fact, 10% of all Shopify Plus stores globally use ShipHero!
ShipHero provides real-time inventory tracking, allowing you to monitor stock levels and make informed decisions about replenishment. With efficient order management capabilities, you can streamline the entire fulfillment process, from picking and packing to shipping. The platform also offers comprehensive reporting and analytics, empowering you to gain valuable insights into your business performance and make data-driven decisions. Plus, its user-friendly interface is available on both mobile and web platforms!
To explore how ShipHero can transform your Shopify store, click here!
Key Takeaways
When selecting a WMS for your Shopify store, you can find the right WMS by considering these four factors: connection, features, cost, and implementation. These factors will determine the effectiveness and efficiency of your warehouse management and order fulfillment operations. And ShipHero emerges as a top contender in the WMS landscape due to its impressive array of robust features, seamless integration with Shopify, and user-friendly interfaces. With ShipHero’s commitment to excellence, you can confidently take your eCommerce business to new heights.
Frequently Asked Questions
What are the Advantages of using a WMS for an eCommerce Business?
Using a WMS for an eCommerce business brings numerous advantages, including improved inventory accuracy, enhanced efficiency in order fulfillment, reduced errors and mistakes, better visibility into inventory levels and customer experience, and streamlined reporting and analytics for informed decision-making.
How does WMS Improve the Efficiency of Order Fulfillment?
A WMS enhances order fulfillment efficiency by providing real-time inventory tracking, optimizing warehouse operations, automating tasks such as picking and packing, enabling accurate order management, and providing comprehensive visibility into order status and fulfillment processes.
How to Choose the Right WMS for Your eCommerce Business?
To choose the right WMS for your eCommerce business, consider factors such as seamless integration with your eCommerce platform (such as Shopify), robust inventory management features, scalability, user-friendly interfaces, efficient order management capabilities, and reliable customer support. Additionally, evaluate cost-effectiveness and compatibility with your specific business needs and goals.
Oct 17, 2022 | Blog
Operations management in eCommerce refers to what goes on behind the scenes to make an eCommerce company successful. A big part of operations management is inventory management, which is an essential part of running a profitable business.
Effectively managing your inventory means having a good grasp on what items are in your inventory and how they should be stocked going forward. The 80-20 rule in inventory management can give insight into what products are in demand and which are delivering the most profitability.
What is the 80/20 Inventory Rule?
The Pareto Principle is a well-known concept that states that approximately 80 percent of results come from 20 percent of causes. There are many possible applications of this principle in the business world.
In eCommerce inventory management, the 80/20 rule shows that 20 percent of a company’s inventory generates 80 percent of sales. If you apply this rule to your current inventory, the next step is to determine what products are in the 20 percent that are generating most of the sales or profits. Shelves should be stocked with these products at all times.
Deciding What to Do with Lower Performing Inventory
Clearly, eCommerce businesses need to increase the on-hand stock of items that fall in the 20 percent range of what is considered high-performing inventory. At the same time, decisions have to be made about how to manage inventory that may not be performing as well.
For products that aren’t in the 20 percent that are most profitable, consider those that are in the middle of the range and think about what needs to change to make these items more appealing to clients. Those that have been identified as the least effective performers may need better marketing or may need to be replaced with different products.
What Are Some 80/20 Rule Examples?
There are many examples of ways the 80-20 ratio may be applicable in the business world and in everyday life. Consider a few of them:
- Staff – 20 percent of a company’s staff is generating 80 percent of the profits.
- Clients – 80 percent of sales come from 20 percent of clients.
- Wealth – 20 percent of the population possesses 80 percent of the wealth.
- Complaints – 20 percent of your clients are responsible for 80 percent of complaints against your company.
- Accomplishments – 80 percent of your accomplishments happen during 20 percent of your invested time.
- Web content – 80 percent of your web traffic is driven by 20 percent of your web content.
- Projects – 20 percent of your work projects produce 80 percent of your stress.
- Effort – 20 percent of effort leads to 80 percent of results.
The main thing to be learned from the 80/20 rule is to look for the smallest things that are producing the biggest results. Work toward eliminating the 80 percent that’s not producing the results you’re looking for, or look at what changes could make a difference.
Applying the 80/20 Rule to Operations Management Decisions
Decisions must be made in operations management that affect the future results of a company. Using the 80/20 rule can provide important insights into many aspects of your eCommerce business. It’s a powerful guideline that can help managers identify where success and profitability are coming from and what strategies may need to be revised.
Analyze data and trends to find out the top 20 percent of categories such as best-selling products and sales that are improving. Are the items that are the top sellers the same as the items that are delivering the most profitability? Consider what items in the bottom 20 percent could be discontinued without creating a lot of client dissatisfaction.
Better Inventory Planning with the 80/20 Rule
When the 80/20 rule is applied to inventory, the insights gained can help you to fine-tune your inventory planning strategies and better align your decisions with the desires of your clients. This knowledge helps you to have a better idea of what items should be kept in stock.
Keep in mind that the 80/20 rule is a guideline but it’s not a guarantee. New products and services shouldn’t be discarded too quickly. Products that haven’t made it into the top 20 percent may still have the potential to generate profits somewhere down the line with the proper marketing on social media or other sources.
Continuous Monitoring
Using the 80/20 rule provides reliable timely data that can be used to improve profitability and reduce costs. Eliminating products that are selling poorly can reduce inventory held in warehouses and the costs associated with them.
Applying the 80/20 rule to operations and inventory decisions in eCommerce isn’t something that should be applied only once. Continuously monitor what products are boosting profits and what changes might lead to better results. Work to identify the 20 percent of business resources that are producing 80 percent of your results and focus most of your efforts on optimizing that 20 percent.
To find out more about ShipHero’s fully outsourced fulfillment solution, talk to one of our Fulfillment Experts today.
Click HERE to Schedule a Meeting with Our Sales Team.
About ShipHero
ShipHero is a US-based, leading solution provider in the fast growing eCommerce fulfillment space. ShipHero served over $5 billion of eCommerce orders in 2020 and is growing rapidly. ShipHero provides warehouse management software for brands that operate their own warehouses as well as outsourced fulfillment as a service from ShipHero owned and operated North American warehouses. Some notable customers include Universal Music Group, Glossier and Canadian Tire. ShipHero is a Shopify Plus partner and more than 10% of Shopify Plus stores globally use ShipHero.
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Aug 2, 2023 | Blog
The right software applications can provide solutions to many of the challenges that small or medium-sized businesses face. Software as a service is not new; since its first implementation several decades ago, it has become one of the most valuable resources to which businesses have access. Your company should put as much thought into the cloud-based services it engages as into the computer hardware that it buys. If you are operating a third-party logistics operation, then the right warehouse management system can help support the teams in your warehouse as they perform the warehouse processes for which your organizations are responsible.
What Is WMS (Warehouse Management System)?
A warehouse management system (WMS) is a software platform that warehouses use to help them with inventory management and order fulfillment. Its various functions help you with warehouse operations such as putaway, cycle counting, barcode scanning of items, and picking. It can improve inventory accuracy, labor productivity, and customer satisfaction.
The WMS is the operating system of the entire warehouse, but each employee and each piece of equipment interacts with the WMS functions in a different way. An employee in charge of bar code scanning will look at his or her dashboard to find the locations of the bins which are the focus of today’s assignment. As the barcoding employee scans each item to get it ready to pack or stock, the WMS automatically updates as each piece of input that comes in. When the employee finishes one task, the WMS displays new tasks on the employee’s mobile device.
What Is NetSuite?
NetSuite is a leader in business software and software as a service industry. It has been helping companies achieve success since the old days when computers were huge and software had to be installed onto a device from a floppy disk and then launched in multiple steps. NetSuite has evolved with improvements in computer technology, and today it remains a leader in a world where business software operates with much greater efficiency than it did in the days when people used to try to resolve computer issues by blowing on a floppy disk or a computer mouse to remove dust.
NetSuite WMS is only one of the many software products that NetSuite offers. Its other tools include software suites for accounting, payroll, customer relationship management, procurement, human resources management, and eCommerce. Its business software helps small startups meet their growth goals and enables medium-sized businesses to meet customer expectations about costs and value so that these companies can compete with mega-corporations.
The Need for a Specialized WMS Solution for NetSuite Clients
In its many years of developing its products, NetSuite has adapted to meet the needs and requirements of its users so that they can better serve their customers. Different industries have different software needs, though. If you are operating a third-party logistics (3PL) warehouse, then you need a WMS module. The dashboards, spreadsheets, and task management on a software module designed for a hotel or restaurant would not be an adequate substitute. Instead, you need software that compiles and analyzes inventory data efficiently so that you can know how many goods your warehouse has space for. You also need the WMS to optimize inventory visibility, so that it will be easy for the warehouse employees to see the products they are trying to find. WMS implementations are not interchangeable with other business software applications, so your 3PL operation should not use generic business software.
Understanding NetSuite’s Capabilities
If you only use the Microsoft applications that came included on your devices, or if you are constantly searching the web for free online templates of business documents, then you will be amazed at what NetSuite business software can do for your company’s operations, whether you are a small eCommerce business that only sells footwear or a distribution and fulfillment provider that serves multiple clients and operates multiple warehouses. The variety of NetSuite’s business software applications and packages is too large to list here, but the beauty of them is that they all automate the processes that can be done automatically and share relevant information with the appropriate parties across applications within the organization. Every time a customer makes a transaction or the WMS software makes a replenishment order, the employees who need access to this information to complete their tasks find this out immediately. NetSuite software reduces human error and enables people and devices to work more efficiently.
NetSuite is not the only business software out there, but its user-friendly setup sets it apart. It provides an intuitive user experience. It also offers customer support where live people will answer your questions about transactions, data analytics, automation of warehouse processes, and more. Much like Sage Intacct, NetSuite offers cloud-based software solutions. Software platforms that store data on a cloud instead of on your devices offer better protection against computer viruses and data theft.
Explanation of NetSuite’s Functionality in eCommerce
NetSuite products offer many opportunities for eCommerce businesses to streamline their operations and save on costs. It enables eCommerce vendors to partner with warehouses and third-party logistics providers. It can also help eCommerce companies with advertising and billing. For companies that handle their own shipping, NetSuite’s eCommerce software can track your shipments and keep customers up to date on the progress of their orders. It can also produce analytics reports about market trends and customer satisfaction, among other topics.
Role of NetSuite in 3PLs (Third-Party Logistics)
Third-party logistics (3PL) providers can benefit immensely from NetSuite business software applications. Some of NetSuite’s software suites are designed specifically for the 3PL industry. 3PL is where a company uses its warehouse to store and distribute products that belong to other eCommerce companies. All except the smallest eCommerce companies rely on 3PL to help them get their products to consumers. 3PL accounts for a growing share of NetSuite’s business software customers. Check out NetSuite’s blog for updates about what is new in the world of business software for 3PL providers.
Why ShipHero WMS Is the Best Solution for NetSuite Clients
NetSuite offers a vast array of business software products, but ShipHero WMS is the best choice for 3PL providers. It has features specific to all the tasks that 3PL warehouse employees do, and it integrates beautifully with the other NetSuite business software applications that you already use.
Special Features of ShipHero WMS that Make It the Ideal Choice
Analytics is one of the strong points of ShipHero WMS. It collects all the data you could ever want to know about your warehouse and the supply chain. ShipHero WMS compiles retrospective reports and can also engage in predictive analytics.
Benefits of Integrating ShipHero WMS With NetSuite
Automating warehouse processes is another commonly cited goal of clients who use ShipHero WMS. For example, it enables you to automate cycle counting, which would otherwise be a time-consuming process. It also enables you to automate replenishment. You can simply instruct the software to reorder a certain product when the stock level gets below a certain point.
Case Studies or Testimonials Demonstrating the Effectiveness of ShipHero WMS
The ShipHero website includes case studies about clients in the United States and Canada who have implemented ShipHero WMS. These include eCommerce companies that sell everything from clothing to tires to musical instruments.
Key Takeaways
If warehouses play any role in your business activities, even if yours is only a small eCommerce store, then ShipHero WMS is just what you need. It integrates smoothly with other NetSuite software suites, which are a popular choice for small and medium-sized businesses. User-friendliness, analytics, and automation are among the greatest strengths of ShipHero WMS.
FAQs
Each business that engages the services of ShipHero WMS has unique needs. These are some common questions that 3PL providers and eCommerce businesses have about ShipHero Warehouse Management Software for NetSuite.
How Does a WMS Integrate into an ERP Like NetSuite?
When you install ShipHero WMS, it automatically knows how to interact with NetSuite. The two platforms have been designed to work together. Therefore, you do not have to overhaul all of your business software simply because you have started using ShipHero WMS for NetSuite.
Is NetSuite a Data Warehouse?
NetSuite uses cloud-based data storage and was one of the first software companies in the world to implement this type of data storage. Since NetSuite stores your data on a cloud instead of on the hard drives of your devices, it gives you an extra layer of protection against cyber attacks. Besides cloud storage, NetSuite also has other robust cybersecurity features.
Does Oracle Have a WMS System?
Oracle has a WMS system, namely ShipHero WMS for NetSuite. NetSuite has been a subsidiary of Oracle since 2016.
Contact ShipHero today for a demo.
Nov 2, 2022 | Blog
ChannelAdvisor helps you keep track of your inventory, products and orders across several eCommerce platforms at once. However, you need to partner up with the right order fulfillment service to make the most out of ChannelAdvisor and unlock the true potential of your eCommerce business.
Read on for the best order fulfillment partners you can work with to maximize ChannelAdvisor’s strengths!
What is ChannelAdvisor?
ChannelAdvisor is an eCommerce service that helps you manage multiple eCommerce platforms to boost sales. It does so by assisting your marketing efforts and refining your eCommerce strategies to ensure your products reach a wider audience.
Here’s what ChannelAdvisor can do for your business:
- Find new customers on various online marketplaces.
- Create targeted advertising campaigns to promote your products.
- Convert potential customers into buyers.
- Ship products quickly.
- Provide insights to assist in making informed decisions.
What is Order Fulfillment?
Order fulfillment is when an eCommerce seller takes a customer order, processes it according to the customer’s needs and delivers the product to the customer.
Order fulfillment is essential because it’s how a business gets products to customers. If your order fulfillment process is inefficient, you’ll likely see dissatisfied customers and lost sales.
How Does the ChannelAdvisor Order Fulfillment Process Work?
ChannelAdvisor doesn’t have an in-house order fulfillment process. However, its platform supports third-party order fulfillment partners by providing an order management dashboard. This dashboard that consolidates your marketplace and warehouse data to make them easier to access.
ChannelAdvisor also offers a shipping management dashboard that connects to your warehouses and shipping networks. By monitoring this dashboard, you can ensure all products are sent on time.
What Does a ChannelAdvisor Order Fulfillment Provider Do?
A ChannelAdvisor order fulfillment provider essentially takes over the entire process from you. Your order fulfillment partner will be responsible for your products from arrival at their warehouse until they’re received by the customers.
What Are the Benefits of Using an eCommerce Order Fulfillment Service?
The main benefits of using an eCommerce fulfillment service are cost savings and scalability. Here are six benefits you can get by working with order fulfillment services:
Additional Storage Space
Operating your own warehouse is time-consuming and expensive, especially if you run a large eCommerce business. Most order fulfillment services provide warehouses to store your products, meaning you only need to pay their fees instead of bankrolling an entire warehouse and its utilities.
Lower Shipping Costs
Order fulfillment companies usually have deals with shipping carriers because they ship hundreds or even thousands of packages per day. Because bulk shipments tend to be cheaper, these fulfillment companies can pass savings onto you, the client.
Better Scalability
Expanding your business while running your own order fulfillment operations means you have to either hire more people or give existing employees more work. You don’t have to do either of those if you work with order fulfillment services because you can simply upgrade your subscription to increase your fulfillment capacity.
Support From Experts
Nobody can be an expert in all business areas, so you must work with the right people to cover your blind spots. By working with an order fulfillment service, you can count on their expertise to identify and address issues on your supply chain.
ShipHero is here to fulfill all your eCommerce shipping needs. Take a look at our order fulfillment services.
Factors to Consider While Selecting an Order Fulfillment Partner for ChannelAdvisor
Before picking your order fulfillment partner for ChannelAdvisor, it pays to research and make the right choice. Here are four criteria to think about when picking your order fulfillment company:
Order Fulfillment Speed
Naturally, speed is one of the most important things an order fulfillment company can offer. Today’s customers and clients expect fast order turnaround times and may turn to other businesses if they can’t get it. Make sure you pick an order fulfillment company that delivers to customers punctually.
Storage and Fulfillment Fees
Storage and fulfillment fees matter because the more products you store and ship, the higher these fees will be. Consider picking a fulfillment company that charges lower fees if you plan on storing and shipping many products.
Pricing
The fulfillment company’s monthly subscription and annual fees may not be the only things you’re paying when working with them. Sometimes there may be additional hidden costs that may impact your bottom line considerably. Ask your fulfillment company about any extra costs and consider whether they’re worth it.
Cheap fulfillment partners aren’t necessarily the best choice. Choose one that offers reasonable prices and the services you need without compromising quality.
Returns Management
If a product is defective or doesn’t fulfill the customer’s expectations, they may return it. Order fulfillment services must know how to handle returns to ensure a painless process for the customer. This means your order fulfillment service provider must contact the customer, receive the product, document the cause and send a replacement product.
What to Look For in a ChannelAdvisor Fulfillment Partner
Working with a fulfillment partner requires commitment, so you must choose the right partner that caters to your needs. Here are three things to ask about when looking for an order fulfillment partner:
eCommerce Platform Integration
Different businesses sell on different eCommerce platforms. To ensure you don’t encounter problems when processing orders, ensure that your fulfillment partner can integrate seamlessly with ChannelAdvisor.
Some major eCommerce platforms to ask about are Squarespace, BigCommerce, Wix, WooCommerce and Square.
Multichannel Integration
Multichannel order fulfillment means you can use one warehouse to process orders from all your storefronts instead of having a warehouse for each channel. Naturally, order fulfillment companies that integrate fulfillment across all physical and online channels can save you a lot of money, which is why it’s an essential consideration when picking partners.
Ease of Use
Many order fulfillment companies provide dashboards and software to help you manage inventory and warehousing. An important consideration when choosing these partners is finding one that offers the easiest software to use, which minimizes time spent training and lets you process orders as quickly as possible.
How We Chose the Best ChannelAdvisor Fulfillment Companies
You have many order fulfillment partner choices, so choosing one can be tough. Fortunately, we can do that for you. Here are the criteria we use when choosing the best ChannelAdvisor fulfillment companies:
- Shipping speed
- Fulfillment network
- Fulfillment software features
- Returns management
- Subscription, storage and shipping costs
Best ChannelAdvisor Fulfillment Companies
Without further ado, here are some of the best ChannelAdvisor fulfillment companies to work with today:
1. ShipHero
ShipHero is an order fulfillment partner that offers high-accuracy order fulfillment and efficient warehouse management services with flat-rate fees, free of any hidden costs.
Pros
- Seven warehouses located across the United States and Canada
- Warehouse management with real-time inventory and order visibility
- Integration with major eCommerce, shipping and marketplace platforms
Cons
- Software encounters occasional errors
- Limited shipping label customization
Pricing
ShipHero offers single-rate pricing for all lower 48 states with no setup or hidden fees. Visit our pricing page to discuss customized order fulfillment pricing for your company.
Request an order fulfillment quote from ShipHero today!
2. Shipwire
Shipwire operates a global fulfillment network to help your eCommerce business sell to customers worldwide.
Pros
- 30 warehouses located in North America, Europe, Asia and Australia
- Integrations with over 200 eCommerce platforms and websites
- Support for B2B and B2C eCommerce
Cons
- Occasionally unhelpful customer service
- Relatively high shipping rates and long-term storage fees
Pricing
Shipwire doesn’t publicly post its pricing information. Contact a customer service representative for more details.
3. Red Stag Fulfillment
Red Stag Fulfillment offers a full suite of eCommerce order fulfillment and third-party logistics (3PL) services for online sellers.
Pros
- 100% inventory accuracy and same-day fulfillment guarantee
- Affordable shipping costs for large items
- No long-term contract commitment
Cons
- Only two warehouses in the United States
- High pick-and-pack fees
Pricing
You have to get a quote from Red Stag to get information about its pricing plans. You can also sign up for a 30-day free trial.
4. TrueCommerce
TrueCommerce is a cloud-based order fulfillment service that offers integrations with all aspects of your supply chain, so you don’t have to purchase any additional software.
Pros
- Integrations with major eCommerce storefronts like Shopify, Magento and WooCommerce
- Easy-to-learn software
- Simple setup
Cons
- May not integrate well with other software
- Conflict-causing updates
Pricing
Contact a TrueCommerce representative to get pricing information. You can also book a free demo by completing the form on its website.
5. ShipBob
With over 30 distribution centers in six countries, ShipBob helps your eCommerce company sell anywhere in the world. It also boasts a 99.96% on-time delivery rate, meaning your merchandise will be well-handled.
Pros
- Affordable two-day shipping costs with easily understood pricing
- Transparent fulfilling performance reports
- Options for custom-branded packaging
Cons
- Slow-loading dashboard pages
- Hard-to-implement online store integration
Pricing
You can use the calculator on ShipBob’s website to estimate order fulfillment prices. For more detailed pricing breakdowns, request a quote.
Choose ShipHero for all your order fulfillment needs.
6. ShipBots
ShipBots offer pre-built integrations with eCommerce platforms so you can capture orders from your sales channels in no time at all. It also boasts best-in-class customer support teams to ensure you get a solution if a problem comes up.
Pros
- Large shipping discounts
- Dashboard for inventory and warehousing performance insights
- Extra user accounts at no cost
Cons
- Requires a full quote to see detailed pricing
Pricing
Storage with ShipBots starts at $9/week per pallet or $1.25/week per bin. Prices for receiving, picking, packing and shipping vary depending on the volume of orders you handle.
7. Rakuten Super Logistics
Rakuten Super Logistics’ 3PL services guarantee next-day shipping with 100% order accuracy for all your products. Its wide delivery network also ensures customers get their items within one or two days.
Pros
- Nationwide network of fulfillment centers to ensure fast shipping
- Real-time shipment tracking
- Lot tracking to monitor the expiration dates of perishable products
Cons
- Outdated user interface
- Occasional discrepancies between stock listed on the software and real-world stock
Pricing
Rakuten Super Logistics doesn’t post its prices publicly, but you can request a quote by completing a form on its website.
8. ShipMonk
ShipMonk provides various services like order management, inventory management, purchase tracking and packaging to simplify your B2B and B2C fulfillment processes.
Pros
- Real-time inventory tracking across all your sales channels
- Automatic shipping report generation
- Multi-warehouse management dashboard
Cons
- Occasional hidden fees in the fine print
- Lack of climate control for temperature-sensitive items
Pricing
ShipMonk uses a volume-based pricing model that you can calculate on its online calculator. You can also get a custom quote by contacting a sales representative.
9. SPS Commerce
Boasting over 105,000 clients, SPS Commerce provides cloud-based supply chain solutions that let you easily share product information, get insights into retail data and improve logistics efficiency.
Pros
- User-friendly interface
- Useful data insights from its analytics tool
- Easy integration with retail partners
Cons
- Hard-to-decipher error messages
- Lengthy purchase order processing
Pricing
SPS Commerce doesn’t publish pricing information on its website. Contact its sales team to get a free quote.
Experience lightning-fast eCommerce fulfillment with ShipHero today!
10. eFulfillment Service
eFulfillment Service aims to be one of the most affordable 3PLs in the business with low fees, freight discounts and zero long-term storage fees. However, its numerous 3PL provider awards show that while affordable, it doesn’t mean this company offers bad service.
Pros
- Order fulfillment for various industries
- Scalable services
- No minimum order requirements and setup fees
Cons
- Relatively slow stock check-in times
- Occasional stock accounting errors
Pricing
You can get a quote from eFulfillment Service by completing a form on its website.
Final Thoughts
Choosing the right order fulfillment partner for ChannelAdvisor is crucial to unlocking its full potential. Combining ChannelAdvisor’s insight and marketing assistance with robust order fulfillment services means you know what products to sell, how to market them and get them to customers on time. Additionally, you can gain insights from ChannelAdvisor’s reporting tools to see whether or not your products are selling well.
Don’t work with ChannelAdvisor? Find the best carriers for many of the highest profile marketplaces on the web.
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Dec 9, 2022 | Blog
If you’ve ever wondered how your online orders arrive at your doorstep quickly and efficiently, it’s all thanks to the warehouse packing station. Packing stations are the places at the end of your shipment chain where orders are carefully packed and prepared. An effective packing station can reduce your labor costs, shipping expenses, and order errors and helps to meet your customer’s satisfaction. It’s a well-oiled machine that helps to ensure that your orders arrive on time and in perfect condition. In this blog, we go over the basics of a warehouse packing station and why they’re so important.
What is a Packing Station?
A packing station is a space in a warehouse where products are checked, packed, and labeled for shipping. In addition to being ergonomically efficient, it is equipped with all the packing materials necessary within easy reach. And a well-designed packing station can greatly improve the order fulfillment process.
What Does a Packing Station Consist Of?
Order fulfillment is only as fast as its slowest function, and packing–often the last stop before shipping–can be a bottleneck. But a well-designed warehouse packing station will ensure a place for everything. Modular and ergonomic packing stations can increase productivity by eliminating the need for workers to bend, reach, or leave the packing area to retrieve supplies.
Packing stations can be outfitted with various accessories. They usually consist of a workbench with shelves or gravity flow tracks designed to store the materials used to prepare orders for packing and shipping. Packing supplies such as boxes, envelopes, packing paper, and tape can be stored on packing stations in easy-to-reach locations. Tools like scanners, scissors, tape measures, utility knives, and tape guns are often organized and hung on the packing station for quick and easy access.
Connecting your packing and shipping areas with a simple gravity conveyor system can reduce bottlenecks and eliminate worker travel time. Thus creating a seamless integration between order picking, packaging, and the loading dock.
How to Make your Packing Station More Efficient
When it comes to efficiency, your packing station is key. But all too often, people focus solely on storage when designing their packing workstations. In order to maximize efficiency, your packing station needs to be integrated with the company’s warehouse management system. As a result, you will be able to organize the most important packing materials and supplies logically. If you’re looking to make your packing station even more efficient, you can do a few things.
Warehouse Organization for Efficient Packing Stations
A well-organized warehouse is very important for an efficient packing station. A perpetual inventory management system will keep track of stock levels and help avoid surprises. The workstation should be arranged so that all the tasks required to pack a shipment can be carried out smoothly and uninterrupted. It should also be tidy and well-stocked with all the supplies needed to safely and securely pack items for shipment. Creating a lean warehouse will save you time and money in the long run.
Streamline Your Packing Workflow
The packing process is one of the most important steps in getting products ready for shipping. A well-designed packing workflow can help improve efficiency and reduce errors. When creating a packing workflow, it is important to consider the type of products being packed, the volume of products, and the space available.
Packing stations that deal with high-volume small packages need to be more compact so that the worker has enough space to pack products quickly with all the packing materials within reach. Whereas packing stations that handle large and bulky products need to be spacious and include lifting equipment to help workers pack heavy items. Also, extra space can accommodate automation later on.
We have even gone one step further and included a YouTube video that walks you through the processes that go on at the packing station. You can watch the full video HERE
Create a Workstation That Delivers Orders
In a busy warehouse, time is of the essence. That’s why it’s important to have an efficient system for bringing orders to the packing workstation. Whether it’s boxes, totes, skids, carts, or conveyors, the goal is to deliver the orders in batches, so the packer doesn’t have to move from his workstation. The delivery system should be located next to the table, and the packer should always be within easy reach of a new order.
Whenever possible, staging systems should be next to the table so the packer can avoid lifting, carrying, and walking the carton to the staging location. The best solutions allow the packer to simply push the packed carton onto the staging area which helps to keep the packing station running smoothly and efficiently.
The Gaming Community’s Answer to Warehouse Packing
Remember those old handheld barcode scanners that revolutionized warehouse picking and packing? Well, there’s always been a bit of a lag between picking up the scanner, scanning the barcode, and then placing the scanner down to continue working. Maybe it’s one or two seconds, but shave those few seconds off every order, and you’ve accumulated a lot of time.
One of our ShipHeroes found our solution in the gaming community. Xbox® released an adaptive game controller meant for gamers with limited mobility. We discovered that this device could work for packing stations at ShipHero. The cost to make this upgrade is nominal. It’s cheaper than a mobile socket scanner, which most clients use in their warehouses. Not only that, but workers love it because it’s more fun and less time consuming. They literally push buttons, no time is lost scanning or using a mouse and keyboard.
Frequent Packing Process Evaluation Pays Off
If you’re looking to keep your packing operation productive, it’s important to frequently observe and upgrade the process as business factors change around it. You can be more accurate and faster with the right combination of processes, equipment, technology, and training. By frequently evaluating the packing process, you can ensure that your operation is always running smoothly.
Establishing Packing Procedures
An efficient warehouse packing station is critical to a successful order fulfillment process. That’s because it helps you ship the right goods to your customers quickly and in good condition. It can reduce your labor costs, shipping expenses, and order errors and helps to meet your customer’s satisfaction. After all, the success of any eCommerce business comes down to happy customers, and efficient packing stations are necessary to achieve this. Late orders, high shipping fees, and order inaccuracies won’t keep your customers coming back for more. Sometimes, you need a third party with a team of experts to handle the logistics while you focus on growing your business.
This is where a warehouse management solution like ShipHero can help you out. With ShipHero, you can automate your warehouse packing stations and get real-time insights into your fulfillment process so that you can make informed decisions about how to improve your operation. As a result, you can keep your customers happy and grow your business. Contact us today to learn more about how we can help you take your warehouse packing station to the next level!
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Jun 9, 2023 | Blog
ShipHero and ShipStation are order fulfillment solutions that help businesses quickly get their products to customers for less money. However, each platform’s unique approach makes them helpful in different ways.
Keep reading for a detailed breakdown of each platform’s features, pros and cons.
Overview of ShipHero vs. ShipStation
The main difference between these platforms is that ShipHero is a complete order fulfillment and warehouse management solution, while ShipStation is focused primarily on shipping.
ShipStation’s primary selling point is that it simplifies your shipping. It offers shipping discounts and does much of the international delivery legwork. Plus, its branding tools allow you to customize multiple customer touchpoints, such as shipping labels, emails and packing slips.
ShipHero’s Warehouse Management System does all of this and more. It gives you total control and visibility over your warehouses, including pick, pack, and ship. With its wide range of inventory and warehouse management tools, everything from routing orders to optimizing stock locations is more accessible. Plus, ShipHero automatically applies the cheapest shipping option and prints your labels, so there’s no more guesswork.
Features Comparison of ShipHero vs. ShipStation
If you’re deciding between ShipHero and ShipStation for your eCommerce business, you’ll want to know how each stacks up against the other. Below is a comparison of each software based on their features, integrations, customer service and price.
Fulfillment Features
ShipStation offers a few basic order management tools to help you organize your workflow. You can view, allocate, and deallocate stock through its dashboard in real-time. You can also combine split, filter, tag, and edit orders; set stock alerts automatically; and block shipments with insufficient stock.
Orders are printed on labels collected by different workers, who can verify, pick, and pack the correct items. Its return portal makes it easy for customers to initiate a return without contacting you directly.
ShipHero’s mobile pick and pack features make it easier to fulfill orders quickly.
ShipHero optimizes your picking routes and processing options, reducing the time and energy it takes to collect your orders. The AI software cuts waste and guesswork further with recommendations for the best packaging based on what it learns about your needs and preferences. And the Hero Board, which displays the orders that need to be fulfilled daily, keeps workers on track.
Bottom Line
ShipStation uses a paper-based pick system, and labels are printed in batches, so it’s difficult to start work until all labels are printed. ShipHero’s mobile app provides an optimized pick route so workers take fewer steps to fulfill more orders. When you factor in ParcelView and ShipHero’s AI packaging, ShipHero is the clear choice for fulfillment.
Warehouse Management Features
ShipStation is primarily a shipping solution, so it doesn’t offer much in terms of warehouse management.
Conversely, ShipHero has powerful tools for efficiently running your warehouse.
The software can suggest how to store your inventory and implement warehouse best practices such as First-In-First-Out (FIFO). Its Putaway feature is especially useful in keeping track of stock, replenishing inventory levels and creating a more seamless workflow. Other notable features include cycle count, multi-warehouse allocation, kitting and reorder level setting.
Bottom Line
ShipStation was not designed to manage a warehouse from receiving to order management to shipping. If you are looking for a complete Warehouse Management System, ShipHero is the answer.
Available Sales Channels
ShipHero and ShipStation connect to popular sales channels like Shopify Plus, Amazon, Etsy and eBay. But ShipHero offers dozens of other integrations, including NetSuite, Loop Returns and more. If you intend to grow your business, more options will help.
Bottom Line
Both options integrate with the most common online marketplaces. But ShipHero provides access to the less common ones that the more successful companies have the foresight to use.
Shipping Labels and Rates
ShipStation claims its rate calculator and shipping discounts can save you up to 88% on major carriers like DHL, USPS and Global Post. They say their workers can create shipping labels with your brand on the go and that their software can generate and transmit customs documents for international shipping.
ShipHero works with all the same carriers but automatically applies the best rates and carriers for your shipments in real-time, and they print the cheapest shipping label. You don’t have to waste time and energy choosing a suitable carrier.
Bottom Line
ShipHero’s packing functionality includes a shipping rate calculator, weight & box recommendations and additional packing support, including ParcelView. ShipHero is an all-in-one solution that makes shipping labels and rates more affordable.
Shipment Tracking Capabilities
ShipStation has multiple tracking options. On the business side, you can view tracking links and statuses on the dashboard. Customers can monitor their deliveries via a branded tracking page, emails and SMS notifications.
ShipHero’s integration with Klaviyo provides the same functionality, including opting in for text alerts. Additionally, ShipHero provides standard shipment tracking capabilities via different carrier websites as well, so you can track a package from start to finish.
Bottom Line
If all you need is tracking, ShipHero and ShipStation are interchangeable. However, if you’re looking for a more well-rounded solution that includes tracking, ShipHero is the better choice.
Customer Service Support Options
You can contact ShipHero through its in-app ticketing system if you have any questions or concerns. Its website also provides free resources, including a blog, knowledge base, help center, FAQs, videos, webinars and a community forum. Email and phone support are also available at a premium.
ShipStation also offers similar omnichannel support and phone support for Platinum plans and up. The customer service team is available from 8 AM to 8 PM CT, Mondays to Fridays. It also provides access to ShipStation University, an online database of courses on the platform.
Both ShipStation and ShipHero offer free, hands-on onboarding and setup services.
Bottom Line
Since both platforms offer some support at no charge and others at a premium, they are pretty even in this area, but ShipHero’s team has the receipts for being helpful and attentive.
Industry Rankings
ShipHero has been named the leader by G2, an independent review site that measures the best software and technology across various industries, including Warehouse Management Systems and Shipping. ShipHero was named the #1 WMS for Small Business, the #1 in the Most Implementable WMS and achieved lead status in 5 other categories for Summer 2023.
During the same period, ShipStation was named a momentum leader in the shipping industry.
Key Takeaways
Order and shipping management solutions like ShipHero and ShipStation can make fulfilling customer orders easier, faster and cheaper. Both can help you keep track of inventory, improve picking and packing efficiency and get better deals on shipping. But there are a few key differences between them.
- ShipStation’s claim to fame is its savings on shipping, partnering with major carriers to provide low rates and discounts. It also allows you to add your brand to invoices and deliver more impactful customer experiences.
- ShipHero is a complete warehouse management software that assists you from beginning to end. Its unique features include ParcelView, which gives you a peek into your packages; Putaway, which tells you the best way to store your inventory; and cycle count and mobile replenishment for better inventory management.
How Does ShipHero Compare?
As an end-to-end warehouse management solution, ShipHero compares well to ShipStation’s shipping-focused software. While both ShipHero and ShipStation have order management and fulfillment capabilities, ShipHero also helps you stay on top of your warehouse operations.
ShipHero’s software is prepped for high-volume businesses out of the gate. In contrast, you need to upgrade your plan with ShipStation to accommodate more orders and users.
Because of this, ShipHero is best for eCommerce businesses, 3PL providers and high-volume brands that need software that meets their needs. And with multi-warehouse support, it’s also great for companies that stock inventory at different locations.
Bottom Line
If you’re looking for a shipping label printer, ShipStation works. If you’re looking for a complete warehouse management solution that saves you money on shipping and increases warehouse efficiency by at least 30%, ShipHero is the right choice.
ShipHero vs. ShipStation FAQs
How does ShipHero work?
ShipHero works by sending orders from your storefront to your warehouses and assisting in picking, packing, and shipping. Here’s the process in three steps:
- Connect your stores: Once linked, ShipHero receives orders from all your sales channels and gathers them in one dashboard. Orders are automatically routed to the best fulfillment center based on shipping costs and item availability.
- Pick, pack and ship your orders: With features such as mobile barcode scanning and Putaway optimization, fulfilling orders is easier, faster and more accurate. And thanks to ShipHero’s automatic rate shopping, it’s cheaper, too.
- Track your data: The Hero Board gives you a real-time, bird’s eye view of your warehouse. Make better business decisions based on the insights from your sales and operations reports.
How does ShipStation work?
ShipStation collects your orders in a single dashboard and calculates the best rates and shipping options. It automatically assigns orders to workers and enables on-the-go scanning, improving efficiency and accuracy.
Aug 2, 2023 | Blog
Many businesses work with third-party logistics (3PL) companies to handle their logistics processes. Different companies have different needs, and you need to outline the parameters of each partnership to ensure smooth collaboration. 3PL contracts can let you do just that.
3PL contracts outline the terms of your partnership and ensure everybody agrees with the deal before moving forward with the business relationship. However, drafting contracts from scratch each time can take time. That’s where 3PL contract templates come in. They’re pre-made documents that let you draft contracts quicker, so you can seal the deal sooner.
What goes into a 3PL contract template, and what do you need in them? Keep reading for a thorough guide to contract templates, complete with downloadable samples!
What Is a 3PL Contract Template?
A 3PL contract template is a pre-written pattern for a third-party logistics agreement. It generally contains standard information that won’t change between partnerships. To accommodate different potential partners, a 3PL contract template usually has fillable parts to put in the partner’s information, cost calculations and other non-standard details.
Contract templates save time and effort because you don’t have to write a new contract every time you want to make a new logistics agreement. In addition to time and cost savings, contract templates make approval quicker because you already know what’s written in these contracts. Instead of reading the entire document, you can just focus on the variable fields to ensure everything is good to go before signing.
Understanding Various 3PL Contracts and Templates
Different companies want different things from a third-party logistics provider. For instance, some clients may only need warehousing services, while others need all-in logistics management. Templates help, but 3PL companies might not be able to use the same template for all their business deals.
Different needs mean you can’t just use any contract template you find on the internet as-is. You either need to make a template from scratch or modify a template from the internet to suit your company’s unique needs.
Here’s a look at two downloadable 3PL contract templates you can use for inspiration:
Contract for Third-Party Logistics
This 3PL contract template is a good baseline for your own version. The document tells you what to put in each fillable field, which simplifies the drafting process. It also includes lots of common clauses that you can either implement in your own template as-is or modify to fit your company’s needs.
Sample third-party logistics contract
Third-Party Confidential Logistics Contract
In some cases, you may need a confidential contract due to copyright-protected products or other reasons. In that case, you should use a 3PL contract template with built-in confidentiality clauses to protect you or your partner’s company. Make sure the clauses are strong and thorough enough to meet both parties’ needs and that your staff upholds the confidentiality rules throughout the partnership.
Here’s a sample confidential 3PL contract to inspire your own template:
Sample confidential third-party logistics contract
Key Elements of a 3PL Contract
What does a 3PL contract contain? While the specifics may differ, there are some elements found in many contracts across the logistics service industry.
Here’s a look at many important elements commonly found in 3PL contracts. This isn’t a definitive list, so your contract may have more or less elements depending on the nature of your business.
Duration of the Agreement and Renewal
The duration of the agreement governs how long this contract will last. This element also explains what to do in case either party wants to renew the contract.
Warranty Clauses
3PL companies handle other people’s goods. Warranty clauses give their clients peace of mind by outlining how the 3PL will be handling their products and what happens if the company fails to do so. 3PLs should work with their legal team to make warranty clauses that put clients at ease.
Damage and Liability Provisions
Damage and liability provisions define who’s responsible when products are damaged. These provisions limit either party’s liability, so they don’t have to take the brunt of the responsibility if something goes wrong during your partnership.
Inventory Management Expectations
Inventory management expectations outline the services a 3PL is giving the client and what metrics they should be judged by. The 3PL’s service level agreements (SLAs) and performance metrics are generally included here.
Some example SLAs you might find here are:
- Shipping cutoff times for same-day orders
- International shipment speed
- Returns processing speed
- Order-picking error rates
Defining SLAs is a balancing act since 3PLs must protect the client’s business without imposing overly high standards on their team.
Both parties should come up with these SLAs together to ensure they’re balanced. You should also hold recurring SLA re-alignment calls to ensure the standards are always clear.
IT and Reporting Requirements
IT requirements define what kind of software companies use to provide 3PL services. Most 3PLs use warehouse management systems to conduct their services. But if either party needs to use other 3PL software or hardware in this particular partnership, they’re outlined here.
This section also outlines the parameters of the 3PL company’s reporting. What items should be reported, what form the report should be delivered in and report frequency should be well-defined to ensure the client stays updated on what goes on in their logistics operations.
Invoicing and Payment Terms
This section governs how the 3PL company gets paid. It defines when they send the invoice for each payment period and how the client shall pay for services rendered. The 3PL company can also explain the penalty for late payments here. For instance, the 3PL company can say that it has the right to cease operations if the client doesn’t pay invoices on time.
Legal Claims and Governing Law
This section defines what kind of methods the signing parties use to settle legal affairs. Generally, you can choose to solve disputes through arbitration or the courts. Consult with your legal staff or attorney to choose the best dispute resolution method for your company.
Inventory Shrinkage Allowances
Inventory shrinkage happens because of many things. It can be paperwork errors, system issues, or even theft. To ease the client’s mind, 3PLs need to put an inventory shrinkage allowance in the contract.
Here’s how inventory shrinkage allowances work: Let’s say a 3PL company puts a shrinkage allowance of 0.5%. This means the client will bear the first 0.5% loss, but the company will pay for any losses above 0.5%. This limits the client’s risk and ensures they won’t lose too much money even if shrinkage happens.
The 3PL should clearly limit the scope of inventory shrinkage. Most 3PL companies only account for the shrinkage that happens in their warehouses. If shrinkage happens while the products are with clients, manufacturers or shipping carriers, they won’t count against the allowance.
Forecasting Requirements
Product demands fluctuate, so clients need to keep their 3PL partners informed of any potential spikes in demand due to holidays, promotional campaigns and other marketing efforts. In this section of the contract, you need to outline how far in advance the client needs to send order forecasts so the 3PL’s team can prepare the personnel and warehouse space needed to handle the influx of orders.
The client probably can’t forecast demand spikes fully, but the 3PL can set an accuracy range instead. If the client’s forecast is way off the mark, the 3PL can charge extra for additional labor and services provided.
A good way to ensure demand alignment is holding a regular call to discuss upcoming promotions, holidays and other events that may increase product demand.
3PL Visits and Account Management
Clients can better understand how the logistics company treats their products when they visit a fulfillment center. This is completely normal since they’re paying a pretty penny to receive logistics services.
However, 3PL providers should regulate client visits by requiring prior notification that they’re about to visit. This way, a company representative can accompany the client to answer their questions.
Another thing this section governs is their account management. In many cases, business relationships heavily hinge on relationship management between the two parties. This section should outline the account manager’s standards and decide whether either party can ask for their removal if they consistently underperform.
Insurance Coverage
This section outlines what kind of insurance each party should have for the duration of their 3PL partnership as well as their coverage values.
Common insurance coverage types 3PL contracts may stipulate include:
- Warehouse legal liability: This coverage protects the client’s goods if they’re damaged by careless handling, theft and similar causes.
- General liability: General liability insurance covers medical costs, legal fees, damages and other costs that may arise after somebody gets injured on the 3PL’s business premises.
- Business interruptions: Business interruption insurance compensates the logistics company if they can’t run warehouse operations due to natural disasters or other causes of interruption.
- Transportation coverage: Transportation coverage compensates the client if their goods are damaged by carrier negligence during transport.
- Employee dishonesty: This covers losses caused by theft, embezzlement, forgery, fraud and other dishonest acts perpetrated by employees.
- Worker’s compensation: This provides warehouse workers with money to cover medical bills and living expenses if they get injured on the job.
Employee Hiring Provisions
Since 3PL companies and their clients work together closely, it stands to reason one party might be interested in hiring employees from the other. To prevent conflict, you need to outline the terms and conditions of hiring each other’s employees.
If one party allows the other to hire terminated or laid-off employees, you can implement a waiting period before they’re eligible for employment.
Provisions for Independent Contractors
This section usually comes into play for companies positioning themselves as independent contractors. Essentially, it outlines that the logistics company is an independent contractor, not a joint venture partner.
Indemnification Clauses
An indemnification clause shifts the cost of lawsuits from one party to another. An example of indemnification happens when a 3PL company asks the client to pay legal fees if a third party ever sues the company for harm caused by the client’s product. Since the client is the supplier, assuming the 3PL wasn’t negligent, they’re responsible for taking on the lawsuit.
Since this is a legal matter, you should consult your lawyer when drafting the contract template’s indemnification clause.
Advertising Rights
When a client gives a 3PL company advertising rights, it’s allowed to use the client’s company name and logo on promotional material like websites, brochures and trade show booths. This section governs which marketing materials 3PLs can put the client’s company in.
Assignment Provisions
Assignment provisions rule whether this contract can be assigned to another party without the consent of the co-signer. A scenario where this provision may come into play is if another company acquires the client.
Intellectual Property Clauses
Both signing parties of a 3PL contract have intellectual property to protect, and these clauses govern how to protect them. Things to protect as intellectual property include:
- Order forecasts
- Product materials and specifications
- Customer order details
- Marketing methods and techniques
Agreement Termination Clauses
These clauses govern how either party can terminate the contract. Naturally, these contracts are terminated simply by letting the agreement period pass.
But you can include a provision where one party can cancel the service agreement by submitting a termination notice. Typically, this notice period is two to three months.
Price Increases and Adjustments
The cost of eCommerce fulfillment services may increase due to various price hikes as time passes. This section outlines the regularity and amount of a logistic service provider’s price adjustments. Generally, price increases happen annually based on a certain metric, like a set percent or the consumer price index.
Key Takeaways
A 3PL contract defines the terms of a working agreement between a logistics provider and its client. It governs every detail of the relationship to ensure everybody knows what they’re getting into and prevents disputes from happening down the line.
3PL contract templates help you draft contracts quicker since you don’t have to make contracts from scratch for each partnership. Instead, you can start with a pre-written document and modify the contents according to your needs.
In addition to good contracts, a robust warehouse management system (WMS) is integral to a 3PL company’s success. ShipHero’s WMS is here to help 3PLs improve order accuracy, reduce warehouse costs and so much more. Contact us today to learn how our WMS can help you.
Frequently Asked Questions
What is a 3PL Service Agreement?
A 3PL service agreement is a document that outlines the rights and obligations of a 3PL company and its client. It governs the 3PL’s scope of work, work standards, service prices and other essential details of the logistics partnership.
What are Some Common Elements in a 3PL Contract Template?
Some common elements in a 3PL contract template include:
- Contract duration
- Inventory management standards and expectations
- Price increases and adjustments
- Warranty clauses
How Can a Business Ensure a Fair 3PL Agreement?
To ensure a fair 3PL agreement, businesses should hold discussions and find a solution that benefits the 3PL company and the client.
