Jul 14, 2023 | Blog
One person can only fulfill so many orders in one day. You can hire additional employees to help with packaging shipments for delivery, but the more people are involved in the fulfillment process, the more order management and planning you must do. Adding more people to the operation means that you must spend more time on inventory management. At some point, eCommerce shipping work starts to take up all of your time, and you are always busy with shipping labels and shipping slips.
What is Automated Shipping?
Automated shipping is when you use software solutions to provide fulfillment services. It often involves tracking the items that customers have ordered during shipping. Shipping automation is a necessary step when companies want to scale their operations. You can choose different shipping automation systems, depending on the size of your company. If your business is big enough that you use an external warehouse, then you need to automate your shipping operations.
Why Should You Automate Shipping?
You should automate your shipping processes because it will help you reduce the cost of picking, packing, and shipping your product and it will save you time. Some eCommerce platforms include features that enable businesses to automate their shipping across multiple warehouses. When you use automated shipping technology, every member of your team can work more efficiently. You can increase the number of orders that your company can fulfill in one day, while also improving the accuracy rates of your orders.
What Are The Advantages of Automated Shipping?
Time is money, and eCommerce business owners only have 24 hours in a day, just like everyone else. You are losing money when you personally spend time packing and tracking orders, since entry-level employees can do these tasks, and artificial intelligence can also do some of them. Your time is better spent writing a blog for your company, and gathering information for market research. If a task is something that does not require long-term planning, you can automate it. Automating your shipping processes will help you increase your sales and save time, money, and stress.
Improve Efficiency
Automated shipping relies on software that can instantly analyze data. Your shipping automation software knows which items are where and when you need to reorder them to avoid stockouts and also create a situation where you store only as much merchandise as you need. It enables you to track the status of inbound and outbound orders. By accessing the online portal of your shipping automation software, you can see whether everything is in its place and view options for correcting errors in real-time.
Optimize Your Supply Chain
One of the benefits of shipping automation is that it enables you to manage both the incoming and outgoing categories of your supply chain. Software is much better at analyzing large volumes of data to see how long it takes your orders to reach their destination through USPS, for example, and at ensuring that each box leaving your warehouse falls within appropriate weight limits.
Provides Real-Time Analytics
Not only does automated shipping software analyze data from other sources, but it also gathers and analyzes new data. You can use this information to make decisions about reorder points or about transportation and freight carriers. You can print reports from the software’s analytics or share them online with other decision-makers in your organization. Instead of paying extra for analytics, you should just invest in an automated shipping software package that already includes analytics features.
Spend Less Money
Shipping automation software offers various packages with varying numbers of features. You should only pay for the smallest number of features you need. If you have chosen the appropriate package, it will enable you to save on costs while still letting you grow your business. Automated software can do in seconds what it takes a team of employees an entire workday to do.
Reduces Human Error
Machines can make mistakes, as everyone who has ever operated a computer or smartphone knows. In addition to making far fewer mistakes than humans, though, the software can correct its mistakes much more quickly. If something goes wrong with an order, you can search the data and history in your automated shipping app to diagnose the problem. You can then correct the problem in only a few clicks.
Repurpose Resources
The purpose of automation in eCommerce is not to replace human employees with machines; creating jobs is probably one of the goals of your eCommerce business. Rather, you can give your employees tasks that only humans can do; these tasks are usually more interesting and enjoyable than the tasks you entrust to your shipping automation software. Instead of downsizing your workforce, you can accomplish much more work with the same number of employees.
How to Successfully Start Automating eCommerce
The first step to automating your eCommerce business is to automate your shipping processes. You should choose a software suite that includes an automated shipping feature. As you continue to scale your business to an even bigger size, you should upgrade your eCommerce software to include even more features of inventory management. Remember, the more your software does, the more your employees can do.
Ways to Automate Your eCommerce Shipping
You can automate your eCommerce shipping by entrusting the shipping aspect of your operations to a warehouse management company. You can get a comprehensive package of services where a management company will handle automated shipping, setting reorder points and other elements of supply chain logistics. If your company has its own warehouse, then you should choose a software package that works with your existing warehousing system.
What Are Automation Rules?
Automation rules are tasks that you entrust to an automated program. Examples of automation rules include adding prospects to a list or assigning prospects to a specific user. Every automation task includes three components, namely triggers, conditions, and actions. In other words, you program the software to know what to do and in what circumstances to do it.
Challenges of The eCommerce Shipping Process
Without automation, eCommerce shipping is labor-intensive. Even when your products are in high demand, you can only fulfill as many orders per day as you and other employees of your company can fulfill. This leads to long wait times, dampening the growth of demand for your products. You can solve this problem by automating your shipping process, which makes your company more efficient.
Best Practices For Utilizing Automated Shipping
To ensure that shipping automation technology saves on costs and increases worker productivity and customer satisfaction, you should be clear about your long-term goals. Your decisions about the future of your business should determine the commands and features you select in your shipping automation software app.
Key Takeaways
Automated shipping is a necessity for all except the smallest eCommerce businesses. It reduces errors and supply chain disruptions. It also makes interactions with your company stress-free for customers and employees, while helping you keep overhead costs low and production more efficient.
Automatic Shipping FAQs
You should ask a lot of questions about shipping automation software before you choose the right software suite for you. These are some common questions that eCommerce business owners ask before implementing shipping automation software:
What Is Automated Order Fulfillment?
Automated order fulfillment is when you rely on data and technology to manage most elements of the order fulfillment process. Artificial intelligence can handle warehouse picking, packing, and labeling. It can also know when to reorder stock and when to restock each item. Automation can also help you track packages.
How Do I Start Automated Shipping?
The best way to get started with automated shipping is to contact ShipHero and discuss your shipping automation options with a ShipHero representative. By choosing the proper shipping automation package, you will get the best possible return on your investment.
Can Shipping Be Fully Automated?
The automated warehouse equivalent of a driverless car is still in the future, but it is possible to automate many aspects of the shipping process.
Jul 3, 2023 | Blog
A warehouse management system (WMS) or a warehouse management software is an essential tool for controlling inventory and ensuring products are delivered to customers efficiently. It plays a vital role in warehouse operations, coordinating various parts of the supply chain, and enhancing the picking process within the whole warehouse system. This system is crucial for managing inventory levels, inventory visibility, controlling stock, and ensuring seamless operations, meeting the needs of businesses, distributors, and sales channels. Learn more about warehouse management processes here.
What Is Warehouse Management Software for Ecommerce?
A WMS for eCommerce is a software solution that monitors inventory levels, tracks stock, and streamlines warehouse processes. It automates order fulfillment, optimizing a proper warehouse management system, supply chain fulfillment operations and meeting the needs of businesses, users, and customers. This system is crucial for managing inventory, controlling stock levels, and ensuring seamless operations, integrating with other ERP systems and software systems and providing support for various organizational needs.
How Does WMS Software Work to Streamline Warehouse Operations?
Managing effective logistics operations can be challenging without the proper warehouse management systems. a WMS system is an online storage platform designed to help businesses store information about their business locations and products. Functional features vary based upon requirements like picking, packing, or shipping. The major goal of this is the smooth movement of your products between the warehouses. This warehouse management system benefits and optimises warehouse space utilization by analyzing information from the system. This software manages inventory and supplies while monitoring inventory performance, etc. The best solution will help you to get more customers.
What Is the Difference Between a Warehouse Management System and an Inventory Management System?
A warehouse management system software monitors the storage of products at warehouses or warehouse centers. It helps keep items in optimal storage places with proper packing and pick-up. WMS software is a useful tool for managing all labor in an industrial warehouse and monitoring worker performance. Inventory management systems help manage inventory in the warehouse staff inventory room including raw material, finished products, or components needed in manufacturing. They monitor stocks and notify businesses of how much final goods and raw materials are required to produce products.
Profiling the Types of Warehouse Management Systems
Different warehouse management systems offer various features and functionalities. Choosing the right WMS depends on the company’s size, order volume, shipments, and the number of products. It’s essential to consider the business’s specific needs, including vendors, stock control, devices, and overall determine the role of warehouse management software. The system’s level of integration with business processes are also vital considerations.
Integrated Vs. Standalone WMS
Warehouse management software has two types: An integrated WMS is generally included by a current ERP provider. ERP software is the primary system for billing, accounting, inventory management. Warehouse management software accepts orders and manages inventory, order delivery of goods. If all the items can fit into a single software platform, it becomes much easier to know which order should be invested in.
On-Premises Vs. Cloud-Based WMS
On premises WMSs are those that require you to manage and maintain the hardware and software that runs your computer. While this provides you full control in terms of up-time and security, it also has a high upfront cost since it is your responsibility. You must also maintain a regular WMS system operation. While very little enterprises may enjoy an on-site WSMS, managing things is difficult. Alternatively, cloud-based WMS systems can be charged as a service fee, but can be hosted remotely.
An Examination of Traditional On-Premise WMS Solutions
Traditional on-premise WMS solutions provide customization and integration with other enterprise systems and platforms. These systems adapt to the company’s specific warehousing needs, including vendors, stock control, devices, and more. They offer benefits in managing inventory, tracking products, controlling the warehouse process, and integrating with manufacturing and distribution channels.
Exploring the Benefits of Cloud-Based WMS Solutions
Cloud-based WMS solutions adapt to technological changes and integrate with eCommerce platforms for data exchange. They ensure compliance with shipping regulations and scale operations to accommodate business growth. These cloud technology and software solutions are essential for warehouse automation, cost control, and enhancing efficiency in the warehouse or distribution center operations, providing visibility into supply chain management and 3pl integrations.
Mobile Apps for Enhanced Warehouse Management
WMS mobile apps enable real-time reporting of stock items and warehouse status. They provide insights into the warehouse and retailers, enhancing visibility, planning and control. Training on WMS apps is essential for warehouse managers and employees to maximize efficiency and functionality, and they often include tools for order management and performance tracking for warehouse workers.
Top 10 Best WMS for Ecommerce
The top 10 best WMS for eCommerce include:
- Shopify
- Netsuite
- SAP
- Ordoro
- Linnworks
- Infoplus
- SkuVault
- Mintsoft
- Manhattan
- ShipHero
These major ecommerce platforms offer various features for inventory management, order processing, and shipping, catering to different business needs and market demands, including solutions for order management, fulfillment, and supply chain management tasks.
ShipHero
ShipHero is an optimal WMS for eCommerce businesses, enhancing visibility and customer satisfaction. It organizes operations, and inventory accuracy reduces common warehouse issues, and integrates with various platforms. ShipHero is a solution that caters to both DTC and B2B operations, providing a seamless workflow and efficient warehouse management solution, including capabilities and modules for storage systems, sales, and service distribution centers.
Core Features of a WMS for Ecommerce Businesses
WMS platforms offer features to optimize picking, packing, and maintaining stock levels. They provide real-time tracking inventory data, automate warehouse operations, and enhance customer service. Integration with sales channels, shipping label generation, and coordination with logistics are essential functionalities. Explore best practices for warehouse bin storage systems here, including aspects of cost management, picking efficiency, and tracking inventory and online tool integration.
Examining the Benefits of a WMS for Ecommerce Businesses
With the right WMS solution, businesses can improve efficiency across operations, from stock management integrated logistics to better customer service and satisfaction. WMS software assists organizations in reducing costs, enabling faster shipping, and saving on shipping & logistics. Understanding warehouse automation costs can further optimize eCommerce through warehouse management systems, including aspects of supply chain automation, order tracking, and inventory control.
Key Takeaways
In the realm of eCommerce warehouse management systems implementation, several crucial insights emerge:
- Holistic Optimization: Effective warehouse management systems serve as pivotal tools for optimizing various facets of eCommerce operations, from inventory control to customer satisfaction.
- Integration of Technologies: The integration of advanced technologies such as AI, robotics, and augmented reality is reshaping the landscape of warehouse management, enabling streamlined processes and heightened efficiency.
- Customer-Centric Focus: Beyond operational enhancements, these systems prioritize enhancing the customer experience by ensuring accurate order fulfillment, timely deliveries, and hassle-free returns.
- Security and Accountability: Warehouse management systems extend their capabilities beyond logistics, embracing security measures that safeguard inventory and uphold the integrity of the entire supply chain.
- Sustainability Considerations: As sustainability gains prominence, warehouse management systems play a role in minimizing waste, optimizing packaging, and aligning with eco-friendly practices.
- Adaptation to Trends: The dynamic nature of the eCommerce sector requires warehouse management systems to continually evolve, adapting to emerging trends and market shifts.
- Strategic Decision-Making: With real-time analytics and reporting, businesses gain insights for informed decision-making, optimizing inventory levels, and staying ahead of customer demands.
In sum, eCommerce warehouse management systems stand as essential pillars that not only enhance operational efficiency but also empower businesses to navigate the complex and evolving eCommerce landscape with agility and customer-centricity.
Frequently Asked Questions About Ecommerce and Warehouse Management Systems
What Are the Different Types of Warehouse Management Systems?
There are two main types of storage space for enterprise systems: on-premise and cloud-based. On-premise is installed on company devices, while cloud-based uses cloud storage.
What Are the Three Components of a Warehouse Management System?
The three components of transportation management systems are software, data recording via mobile or cloud based systems, IoT communication equipment, and automatic identification technology like SKUs or barcodes.
What are the four 4 benefits of a warehouse management system?
Many businesses have adopted WMS systems to optimize efficiency and productivity for the best performance possible. Using an integrated logistics and storage system, the company can move outbound processes, reduce human error and maximize efficiency while improving overall business performance through automation upgrades.
What are the benefits of using a WMS rather than a physical inventory system for a large company?
By using an automated Warehouse Manager system, the business can improve inventory accuracy and increase transparency as the system provides the warehouse with an accurate view of demand. Moreover, enterprises have the ability to leverage specialized WMS systems to monitor order management.
What are the potential benefits of WMS?
A WMS can dramatically increase inventory administration, resulting in faster turnover. The ability to reduce inventory movements can help an organization reduce lead time and reduce the need for safety stocks.
What is the role of WMS in warehouse operations?
Warehouse management systems (WMSs) are software applications used for managing warehouse activities and tracking inventory. This warehouse yard management also takes care of all shipments from their entry into a stockyard to their storage location until the delivery is complete.
What is the role of WMS?
WMS helps ensure efficient transportation inventory movement of goods or materials within warehouses. WMS handles numerous functions for this movement such as an inventory management system to pick up, receive and put the shipment away.
What is the difference between SAP and WMS?
Inventory Management allows and enables you to control stocks in different warehouses using SAP Inventory Management. It can be easily adapted to any warehouse to track inventory in store bins. Contact ShipHero today for a demo today.
Jan 6, 2023 | 3PL Warehouse Management, Best Practices, Blog
Are you feeling overwhelmed as your eCommerce business grows? Can’t quite keep up with the demand but don’t have the capital to invest in a massive supply chain infrastructure of your own? You don’t need to. With a 3PL (third party logistics), you can access sophisticated systems, warehouses, and transportation networks that provide unmatched customer service and cost savings. In this blog post, we’ll explore how tapping into 3PL infrastructure may be just what’s needed for growing eCommerce businesses to weather even the stormiest market.
When Do Businesses Need a 3PL provider?
If you’ve never seen the impact of third-party logistics providers, you may be under the impression that it’s an expense you can do without. But trust us when we say that it pays off a lot more than doing all your fulfillment in-house! 3PL companies can help merchants – from small businesses to eCommerce empires – with their scalability needs. When faced with unforeseen order growth or a spike in customer demand, working with a third party warehouse and its services can save you time and money in the long run. After all, nothing’s worse for your brand than breaking promises to customers, especially in an era when 60% of global consumers expect same-day or two-day delivery.
How 3PLs Bring Technology to Infrastructure
3PLs have come a long way since the days of organizing physical products in dusty warehouses – they’ve brought technology to infrastructure! Online merchants are all too aware that keeping up with the big retailers means implementing advanced 3PL tech, such as their warehouse management system (WMS). A WMS allows 3PLs to connect data from various sources, enabling end-to-end visibility into every single order. Wherever you send it, you can track it! So what exactly does this mean? In short, online merchants can more easily compete with larger retailers by turning to technology-enabled 3PLs for services.
- Automating the 3PL Automating the 3PL process isn’t just for robots, it’s for people too! By automating processes, businesses can save precious time and effort. Ordering and tracking become an effortless breeze. With real-time updates in your online store, warehouse staff is updated on orders as soon as they’re placed. Furthermore, various parameters allow you to quickly search and find exactly what you need. And that’s not all – fulfillment software also ensures optimal inventory management, so reordering is quick and efficient. Automation leads to reduced delivery times so customers can receive their packages faster.
- Data Moves Freight Whether it’s to shave off delivery time or reduce inventory costs, data can help get freight moving in the right direction. Fulfillment software can use past data to ensure you’re sending your products to the best possible locations. No more guesswork! With built-in metrics focusing on peak times, revenue, by channel, and quantity orders by USPS zone, you’ll have unbeatable insight to optimize your supply chain. Plus, data logs only get more accurate as time goes on and you gather increasing amounts of order history – it’s a win-win!
- Reduce Errors 3PL technology is here to make our lives easier, especially when reducing errors in order fulfillment. By automating the shipping process with connected technologies, 3PL infrastructures eliminate duplicated work and human error that can cost customers time, money, and an overall bad experience. What’s more, 3PL technology offers insight into the 3PLs performance with complex data like accuracy levels and delivery timelines that demonstrate how orders are being handled every step of the way.
- Meet Customer Expectations Customers today expect lightning-fast delivery within the same day or two days, which can only be achieved if the right technology is in place. That’s where a tech-enabled 3PL comes in; they can help you optimize your storage and shipping to meet customer expectations. With their system, your inventory will be distributed to warehouses closest to your customers. Each time an order is placed, algorithms select the courier providing an efficient, cost-effective solution.
How to Tap into 3PL Infrastructure
Partnering with 3PL services can help give you a leg-up in today’s competitive world, but it’s essential to be sure the 3PL infrastructure can keep up with your business growth. Before signing on, evaluate the 3PL’s existing logistics operations—are they set up to store, pack, and efficiently pick orders while accommodating a rise in inventory? Additionally, ask about the cost and if any steep start-up fees come into play. While upfront costs may seem high, future savings may be unlocked when you consider what is included in the quote – from less overhead to lower labor costs down the line. Ask your 3PL vendor what reporting capabilities they offer; this allows you to track areas such as order accuracy and timeliness of deliveries, along with any potential risks or liabilities associated with broken or lost items. You’ll also want to confirm that 3PL integrates well with your existing inventory, order management, and warehouse management software for a smooth transition into 3PL services. Are you looking for warehouse software that works for 3PLs? ShipHero’s warehouse management system comes with integrations plus real-time reporting, the perfect combo for staying ahead of the future of your business!
Third Party Logistics Advantages and Disadvantages
The 3PL infrastructure, which is tailor-made for the e-commerce industry, makes it easy for small to medium-sized businesses to launch their products worldwide and scale up their operations on demand. However, 3PL isn’t entirely sunshine and rainbows – there can be hiccups ranging from extra fees to lags in shipping standards. As always, it’s important to weigh the advantages and disadvantages of 3PL in your decision-making process before investing time and energy into outsourcing logistics.
Advantages
1. Better Shipping Rates
When many brands join forces and leverage the volume of their orders, they can negotiate better rates from carriers. That’s why 3PL providers are so great: You may be small in number alone, but together you’ll get heard loud and clear for discounted prices that lead to greater profits per order.
2. Decreased Shipping Time
So how do you compete with Amazon Prime to get packages to customers? Building tons of warehouses across the country might be expensive, but you can hit that two-day mark without breaking the bank by using a 3PL.
3. Real-time Transparency
Real-time transparency gives brands the advantage of being in direct control: accurately stocked shelves and order status updates that come lightning fast. With paperless warehouse operations and Tier 1 WMS data at your fingertips, you can keep a refreshed eye on every detail – from macro to micro!
4. Strategic Partnership Networks
Instead of relying on a go-it-alone approach, tap into 3PLs strategic partnership networks to get your hands on solutions specifically made for you. From integrated tools and offers to highly customized experiences—you can make it happen with these trusted partners!
Disadvantages
1. Upfront Investment
It’s clear that when it comes to 3PL providers, there’s no free ride – you’ll have to pay the piper for setup costs such as software integration, SKU uploads, and account access.
2. Hours or Workflow
Instead of packing your orders, wouldn’t it be nice to have a third party do the job for you? But beware – working with 3PLs means relying on their hours and workflow. It’s best to plan ahead when engaging such services, as any disruption could lead to hiccups in delivering your goods.
3. Finding a 3PL You Can Trust
Choosing the right 3PL partner isn’t just about getting a good deal – although that doesn’t hurt. You’ll have to put in some homework and carefully vet reviews, size, reach, and service offerings before you can confidently shake hands with your ideal 3PL provider!
ShipHero is a Shopify Third Party Logistics Partner!
ShipHero, with 3PL infrastructure and software that seamlessly integrate with Shopify and Returnly (to name a few), is undoubtedly a 3PL partner you’ll want to know about. With ShipHero’s one-stop shop for 3PL services, you can rest easy knowing that your inventory will always be on track. And saving money? That’s a no-brainer! Thanks to real-time ship rate shopping and built-in reporting features that cover COGS, picker/packer efficiency, replenishment, and more… we might be the best 3PL for Shopify you have ever tried!
3PLs: The Backbone of Supply Chain Management
3PLs are often the unsung heroes of a shipper’s operations, providing an invaluable infrastructure to help them track inventory, orders, and logistics with greater precision and certainty. Their solutions offer robust analytics, machine learning capabilities, and automated toolings for pricing, booking, and documentation, allowing shippers to make better decisions backed by fact-based data quickly. Despite the apparent advantages 3PLs present to businesses of all sizes, many fail to take advantage of 3PL tech solutions. As 3PLs have become essential in managing supply chains, it is time for shippers to reevaluate 3PL advantages and disadvantages and prioritize using their 3PL business relationships more effectively to stay one step ahead of their competition. 3PLs are the future of eCommerce. By tapping into their infrastructure, you can level up your customer service while saving money on warehousing and transportation.
Nov 12, 2021 | Blog, Fulfillment, Warehouse Management Software
Technology and automation have dramatically streamlined modern business processes. The logistics industry in particular has grown tremendously thanks to modern advancements. Despite the power of technology though, eCommerce brands still need to have effective inventory management systems in place to optimize their order fulfillment processes.
To optimize your inventory management, it’s important to use a combination of the best practices and industry-leading software solutions. By streamlining your inventory management, you can cut back on unnecessary expenditure, fulfill orders quicker and increase your bottom line.
How to Create an Inventory Management Process That Just Works
Here are the best practices for creating an inventory management process that works for every successful business.
Data is Your Hero
Accurately reporting your relevant inventory data is a vital part of an effective inventory management system. All the data including your beginning inventory, how many finished inventory items were shipped out, your cost of goods sold (cogs), product returns, deadstock, and inventory quantity need to be accounted for.
To report data accurately, your team needs to be actively engaged in supply chain management. Make a point to count inventory and compare the value with the figure on the GRN (Goods Received Note). If you deal with perishable items, you need to be especially careful about expiration dates. You should pay attention to any stock damage or returns and keep a comprehensive written record.
Implement a Warehouse Management System
A warehouse management system is a collection of software and processes that enable a business to control and monitor all operations within the warehouse.
A warehouse management system gives businesses real direction and control over their warehouse processes. With a system in place, you can optimize each process and use analytics to monitor performance.
Warehouse management software lets you monitor assets from the time they’re delivered from the manufacturers to the time they reach your customers.
A strategic warehouse management system streamlines restocking and logistics operations and uses demand forecasting tools to balance your inventory levels. WMS software tools take care of important calculations like your economic order quantity.
They also integrate well with any system, whether it’s the periodic inventory system or the perpetual inventory system.
Or Work With a 3PL
As your eCommerce store grows, keeping up with order fulfillment becomes increasingly difficult. Brands reach a point where to keep up with demand, they have to decide whether to:
- Hire more, specialized logistics personnel to handle the increasing demand.
- Hire less experienced staff and train them up.
- Work with a third-party logistics provider (3PL).
Initially, many businesses shy away from option (3) because of the significant upfront costs. However, in the long run, the third option cuts back your expenses and optimizes your fulfillment process.
With option 1, the costs of hiring specialized personnel add up. Moreover, as your brand continues to grow, you might have to hire even more employees to keep up with the demand.
On the other hand, option 2 puts you at risk of heightened expenses due to inexperienced team members and more mistakes. An inexperienced team translates to delays and incorrect orders.
Third-party logistics (3PL) providers, on the other hand, give you access to a team of experienced professionals without you having to pay salaries and benefits. They’re partners; not employees. About 86% of Fortune 500 companies and 96% of Fortune 100 companies use 3PL services.
Audit your Existing Inventory Management Processes to Discover and Analyze Issues
An audit of your management processes identifies problems that you can improve to streamline inventory processes.
For example, is your picking team finding it difficult to locate items? Then it’s time to organize your inventory better. A ratio analysis where you compare your current financial year to the last helps identify potential performance issues too.
If last year’s numbers were better, you might be losing revenue on unnecessary expenses, like storage costs due to overstocking.
After discovering problems in your management processes, you can take proactive steps to solve them and streamline your fulfillment process.
Implement an ERP
An enterprise resource planning (ERP) system is software designed to help organizations manage their daily business tasks. An ERP can manage a multitude of business activities ranging from accounting and HR to risk management and supply chain operations.
You can move your financial data over to the software after installing it. The inventory software is then free to organize warehousing operations and manage inventory logistics.
With an ERP, you can monitor your operations through your mobile devices, and the software facilitates integrations with popular eCommerce applications including eBay, Amazon and Shopify.
Use Multiple Fulfillment Centers
While a single fulfillment center seems more cost-effective because of the reduced storage costs, there are some additional expenses you need to consider.
Having multiple, strategically located fulfillment centers cut down your delivery times and costs. This is because your business can fulfill orders from the center nearest to the recipient. It also means you can offer expedited shipping, which consumers have come to expect as standard practice.
Since small businesses can’t always afford the overheard that follows using multiple centers, many turn to a 3PL provider instead. Leading 3PLs have their own network of distributed fulfillment centers that you can utilize by partnering with them.
Change your Inventory System
It is crucial to choose an inventory valuation method that best aligns with your business model. With the first in, first out method there are certain advantages, such as a reduced risk of obsolete inventory and a reduced inflationary impact.
The valuation method you select can significantly influence your inventory management process. You need to choose one that best suits your business.
The first in, first out (FIFO) method offers certain advantages, like reduced risk of obsolete inventory and less inflationary impact. But some businesses choose to swap from FIFO to methods like JIT.
The ‘just in time’ (JIT) method requires less storage space, because you buy stock on an immediate-need basis. Using this method also means you have working capital to invest elsewhere, rather than having it tied up as stock.
JIT also reduces your chances of overstocking significantly. But, at the same time, JIT doesn’t leave much room for error or delays. If your supplier runs late, and customer orders are coming in, orders may end up delayed or unfilled altogether.
Conclusion
Effectively managing your inventory improves the efficiency of your entire fulfillment process, leading to faster deliveries, accurate orders, reduced costs, and happier customers.
You can optimize your inventory management by implementing the best practices, including leveraging distributed fulfillment centers, implementing an EPR, and taking a data-driven approach.
However, managing your inventory processes isn’t easy, especially if your eCommerce brand is growing rapidly. If you’re struggling with inventory management, ShipHero’s warehouse management software and team of experts can help streamline your operations.
Mar 10, 2023 | Blog, Fulfillment, Warehouse Management Software
The end of the year is always a busy time for retailers, and with holiday shopping inevitably bringing more returns, there’s a lot to keep track of. Many eCommerce businesses and retailers carry over the hit on their inventory clear into Q3-Q4 of the following year, which can be detrimental to your business. Stop the vicious circle and make the most of Q1-Q3, so returns don’t have as much impact in Q4. Here are some tips on how to do just that.
Understand Returns
Understanding the various types of returns and their respective impacts on a store is crucial for any business looking to get ahead. You should consider what those returns might cost to process and complete a product return rate analysis to gain insight into customer behaviors and quality control issues.
Then, looking beyond just percentages of gross demand, it is essential that all areas that could have an influence on return rates – such as inaccurate content, damage in transit, picking errors, and supplier QA problems – be accounted for and actively managed. After all, with each return comes a chance to learn more about customers and products.
Crunching the numbers on returns can be enlightening – not just for you but for your customers, too. If you find the cost of handling the returned item is bordering on the price of creating another product or procuring one from a distributor, issuing an easy refund and keeping the original item may be a smart play.
The “Just Keep It” return policy sounds almost too good to be true for consumers who get their money back and get to keep the product. But that’s exactly what happens. Instead of piling returned merchandise onto the growing inventory heap, stores are considering just handing customers their money back and letting them hang onto the product. Some retailers advise customers to just keep or donate their return after issuing a refund.
Planning Ahead
As you look ahead to Q4, one of the smartest moves you can make is to plan for what you want to accomplish in Q1-Q3. No matter how prepared you think you are, things can get hectic when the end of the year rolls around and the holiday season kicks into high gear.
Planning your operational activities now will help your team optimize and handle customer returns in Q4. As you plan for key dates, such as holidays, you can reduce future returns by planning your inventory needs.
Returns can be more expensive than orders, so minimizing those costs over time is important. You can use simple strategies like a more detailed product description or updated product photos. Taking proactive steps ahead of this year’s holiday season will ensure a smoother experience. Part of planning ahead could include the following steps:
Establish a Clear Return Policy
A clear return policy empowers customers to make informed decisions and shop confidently. This is because they know that if their purchase doesn’t fit just right, they will be able to get their money back.
By combining this transparent policy with insights into how often customers return items, you can tweak your strategy as needed – allowing shoppers to benefit from the right balance of affordability and quality. So look under the hood of your return policy today and ensure it’s optimized for maximum customer satisfaction.
Educate Your Employees
When it comes to refunds, educating employees is a must! After all, they are the ones dealing with customers and helping them get what’s owed. Knowing common types of returns and their potential pitfalls can help keep the process hiccup-free – leading to happy customers and satisfied employees. Investing in excellent customer service ensures that refunds are handled with friendliness, quickness, and accuracy so customers don’t feel let down by their experience or discouraged from shopping again.
Add Automation
No business enjoys processing returns, but it doesn’t have to be a chore. You can save time and energy by using an automated return management system. With these systems, labels are generated, items are tracked, and data is easily stored; the whole process is basically automated.
Automation can be a game changer for returns processing. Enabling faster, more accurate data capture and freeing up customer service teams to handle more pressing issues. Additionally, automation makes customers feel supported throughout their journey with packing, shipping, and tracking updates.
By removing manual administrative tasks, retailers and customers are more likely to communicate effectively, improving loyalty and lifetime value. The earlier you implement automation, the greater the chance of saving time and effort and preventing errors. So, come Q4, your returns won’t come back to haunt you since your data and inventory are updated.
Manage Inventory and Forecasting
There is no doubt that planning ahead of the holidays can make a big difference between your business’s success and failure during peak season. Keeping an eye on inventory levels is one of the most important things you can do to weather peak periods with the least disruption people.
Any sudden change in demand or return items will cause an even more significant snowball effect that will be hard to reverse. It doesn’t take a crystal ball to see out into the future, but it does take vigilance and a bit of savvy forecasting to do so. The more you prepare for the season, the more likely you will stay ahead of the competition.
Consider Reverse Logistics Services
Third-party logistics providers (3PL), like ShipHero, provide software and automated tracking that goes beyond a typical WMS. When it comes to handling your returns like a pro, ShipHero’s open API and tracking capabilities offer limitless possibilities.
You can rest easy knowing that Q4 won’t be a fright fest by having seamless integration with leading eCommerce and vendors. There’s no denying that returns present certain challenges, but with ShipHero, you get a warehouse management system that can adapt to these changes quickly.
Time to Get a Head Start
It is a great time to get a head start on your Q4 financial results in Q1-Q3. If you plan carefully, understand returns, educate your customers, automate, and keep an eye on inventory, you can minimize any impact from returns in Q4. Keep these tips in mind to ensure your business remains profitable and successful all year long.
Nov 5, 2021 | Blog, Warehouse Management Software, Warehouse Operations
On average, one out of three businesses miss their delivery deadlines because they just sold a product that’s out of stock. This highlights just how common inventory management issues are. Poor inventory management leads to losses and unhappy customers. Being understocked translates to unfulfilled orders, and excess inventory drives storage and management costs up.
To optimize your order fulfillment process, maintaining your inventory and knowing the best times to re-order are vital. So let’s take a look at common problems to steer clear of, and some solutions to your inventory management issues.
Common Issues with Inventory Management
Some persistent inventory management issues afflict most businesses at some point, which include:
Products Consistently Running Out of Stock
Running out of products consistently is a result of inefficient inventory management. Failing to set accurate reorder points and stock up on in-demand products leads to shortages, which translates to unfulfilled orders.
If you run out of in-demand goods, not only are you losing revenue from potential sales, but your customers may start purchasing from competitors.
Incorrect Demand Forecasting Leads to Inventory Shortages or Too Much Inventory
The idea behind demand forecasting is to analyze industry trends and predict what your inventory levels should be. If a product’s popularity is expected to pick up soon (like chocolates during Valentine’s Day) or decrease soon (like air conditioners towards the end of summer), demand forecasting helps prepare your inventory accordingly.
However, inaccurate demand forecasting causes more problems than it solves. Incorrect predictions throw your stock levels off balance; you may end up overstocking or understocking, inviting respective consequences.
Companies Forget to Re-order Products
Forgetting to re-order products leads to shortages and consequently, unfilled orders. If you don’t have a proper inventory management system in place, forgetting to re-order from suppliers might happen frequently.
How the Inventory Turnover Ratio Affects Inventory Management
Your inventory turnover ratio typically indicates how strong or weak your sales are at a given time.
What is the Inventory Turnover Ratio?
The inventory turnover ratio is an efficiency ratio, and it’s also known as stock turnover or inventory turns. The metric measures how efficiently your brand manages its inventory. The calculation determines the rate of sales and restocks of a particular product during the fiscal year. Your company’s inventory turnover can indicate inventory performance; a high turnover ratio generally means strong sales, while lower inventory turnovers might be due to overstocking.
How to Calculate Inventory Turnover Ratio
You can calculate the inventory turnover ratio by using the inventory turnover formula:
cost of goods sold (COGS) / [(beginning inventory + ending inventory)/2]
Here, the beginning and ending inventory is divided by 2 to calculate the average inventory. Moreover, the average inventory is taken over a particular time period. Alternatively, you can calculate the ratio by dividing sales instead of COGS by the average inventory value. However, since sales include a markup, this method is generally not as accurate.
How to Analyze Inventory Turnover Ratio
The inventory turnover ratio assesses how your rate of sales aligns with your warehouse restock rate. Thus, the ratio actually indicates how efficient your inventory management system is.
To analyze your turnover ratio, important factors to consider include:
- The industry standard as a benchmark to monitor your performance. Low-margin industries generally have higher inventory turnover ratios.
- Cost flow assumptions can cause fluctuations in the turnover ratio, but you don’t necessarily need to have a course of action for them.
- The valuation method you’re using affects your inventory turnover calculation, and thus the result. For example, using LIFO over FIFO generally produces a higher stock turnover, courtesy of the higher cost of goods sold (cogs) with a lower inventory value.
What is an Ideal Inventory Turnover Rate?
What qualifies as a ‘good’ inventory turnover rate largely depends on the industry. You can estimate how healthy your turnover rate is by comparing it to the industry standard. Then, you can better understand your inventory’s success by comparing your turnover rate and seeing if it’s higher or lower.
Low Inventory Turnover
A low inventory turnover generally means your brand is underperforming because it indicates either surplus stock or a lack of sales. However, if you’re expecting shortages or a price hike on the goods soon, then a low turnover rate is beneficial. It means you’re holding out for a better time to sell.
Otherwise, low turnover rates are usually caused by at least one of the following factors:
- Overstocking
- Liquidity problems
- Weak sales
- Failed marketing efforts
- Inefficient inventory management
High Inventory Turnover
In most industries, a high inventory turnover ratio is generally a positive indicator. It means your products are selling well, and you’re successfully restocking every 1-2 months.
The ideal inventory turnover ratio is generally between 5-10 and varies across industries. Generally, high inventory turnover indicates improved liquidity, efficient inventory management and strong sales.
However, inadequate inventory or stock shortages also lead to higher inventory turnovers, so you need to assess the contributing factors.
5 Ways to Improve Inventory Management
If you’re looking to improve your inventory management, here are five of the best practices.
Leverage Product Bundles
Product bundling is a technique of grouping multiple products or services and selling them as a single unit. It’s a simple strategy to reduce marketing and distribution costs while guaranteeing a higher average order value (AOV).
You can lump multiple products together, including high and low ticket items, and sell them at a reduced cost. Since you don’t have to market each item individually, the profit margin is still appreciable.
You can also leverage product bundles to sell off slow-moving inventory. Deadstock takes up storage space and drives storage costs up, so pairing a few unwanted items with some in-demand ones can rid you of the excess inventory.
Adjust Product Pricing
Adjusting your pricing strategy helps keep inventory levels balanced by combating both understocking and overstocking problems. If you’ve got too much inventory to manage, dropping the prices on certain products helps you sell them out faster and reduce storage costs.
Alternatively, if you’re understocked, you can increase the prices of the items to temporarily reduce demand. When your inventory is restocked, you can drop the prices again.
Make Use of Automatic Re-orders
Manual reorder processes invite inaccuracies and your personnel may forget to place the orders altogether.
You can leverage inventory management software to set accurate, automatic re-order points, based on real-time inventory levels and demand forecasting. With automatic reorders, you mitigate the risks of running out of inventory or overstocking.
Streamline the Supply Chain
Inventory management is just one stage of your supply chain; by optimizing the processes before and after it, you can collectively streamline distribution and fulfillment efforts. This involves optimizing stocking times, organizing inventory, reducing picking and packing times and improving the delivery process.
Work with a 3PL
Third-party logistics providers help streamline your entire order fulfillment process, including warehouse and inventory management, picking, packing and delivery.
SMBs in particular benefit from working with 3PLs because they don’t have to hire their own, specialized logistics team. 3PL providers optimize your fulfillment process, improving your customer’s experience and reducing unnecessary costs.
Working with a 3PL also guarantees transparency, because unlike with a 4PL, you retain ultimate control. Leading 3PLs also have their own software to give their partners updates and a transparent view of their operations.
Conclusion
Inventory management issues affect your bottom line, leave your customers unhappy and may overwhelm your workforce too. By implementing the best practices, you can mitigate inventory management issues and streamline your workflow.
As your eCommerce brand grows, managing your own inventory becomes increasingly challenging. You have more orders to fill, a larger and geographically diverse customer base, and your employees struggle to keep up with the logistics.
Sep 27, 2021 | Blog, Warehouse Operations
One day, robots will run most functions within a warehouse. Outfitted with the latest in artificial intelligence, they’ll be able to manage warehouses very efficiently. However, we’re not there yet. In the interim, you have to find technologies that can give you more flexibility and agility, while making the lives of employees and customers better.
Automation is the Big Umbrella
Underlying all technology in a warehouse is automation. Automated processes, tools and machines make your daily warehouse life easier. Warehouse management software (WMS) has grown in its functionality over the past 10 years, often incorporating some of the latest technologies to make running your business more efficient. No doubt you already use some of these features in your warehouse operations. Let’s examine a few different aspects of this type of automation and identify ways to know if your organization is ready for it.
Software Automation
At the center of any warehouse automation is WMS. It is the engine that makes your warehouse technology run. Without the right software in place, automated processes wouldn’t be possible.
This is true because WMS incorporates a wide range of your warehouse processes, including receiving and put-away, inventory management, order fulfillment, picking and packing and shipping. In every step, there is an algorithm or a program or an advanced piece of machinery that makes things more efficient and each of these is controlled by WMS.
Physical Automation
Since the invention of the conveyor belt, workers and companies have been automating physical procedures in the modern warehouse. Conveyors, lifts and other machines that work to make warehouse employees’ lives easier are the first step in warehouse technology, often referred to as basic automation. These are the types of tools and features you would expect to see in any modern facility.
Other common automated tools include barcode scanners and smart devices. Each was designed to streamline warehouse and eCommerce fulfillment processes to reduce errors.
However, more advanced technology has brought more advanced automation with things like automatic pickers and labeling machines. The most recent introduction and perhaps the most progressive of these technologies is autonomous robots. These can include everything from shelf loaders to forklifts with sensors so that they can operate without human supervision.
There is the concern that so much automation and the advancement of robotics and artificial intelligence could lead to reduction in the workforce. A recent article in MIT Technology Review, discussed this topic, and concluded that while that may eventually happen, there is still a large gap between the number of warehouses that have robots and the ones that don’t.
The adoption process is steady, but slow. Additionally, companies view the role of human workers changing in this new workplace, moving from manual labor to more oversight and maintenance of the machines. So, you’re probably not going to lose your job to a robot, you’re just going to end up doing something different.
Committing to Automation
Automating warehouses comes with an upfront cost that is off-putting to many business owners. Especially since the true benefit of the automation won’t be felt for a few months or a year until after implementation. However, there are some tell-tale signs that your company is ready to take the plunge. Review the list below and see if any of these instances apply to you and your organization.
- You’re still using a legacy warehouse management system that relies on manual inventory counts that are housed in spreadsheets.
- Your order fulfillment capacity is declining.
- Your warehouse processes and procedures are labor-intensive.
- Your inventory counts are always inaccurate.
- You’re receiving negative feedback from customers regarding shipping delays.
- Your total number of employees fluctuates due to high/low demand or seasons.
If any of these sound like your organization, it might seriously be time to investigate WMS options. In the long run, increasing customer satisfaction, ensuring employee morale and maintaining accurate inventory counts will lead to more success across the board; and higher revenue.
Embrace Automation
There has always been a slight resistance to technology. However, it has become apparent in the past decade that in order to be competitive, successful and profitable you must adopt technology and automation to its fullest extent. If you’re ready to do so, ShipHero is ready to help.
Mar 24, 2023 | Blog, Fulfillment, Warehouse Management Software
Modern eCommerce companies have revolutionized the game when it comes to returning items. From no-hassle pickups and convenient return windows, these businesses have made returns less of a dreaded task for customers looking to shop online. In this blog post, we’ll discuss some innovators in the space and how they’ve set themselves up for success with seamless processes that keep shoppers returning. Keep reading to learn more about how these companies are improving the return process and how you can too!
eCommerce Product Return Rate
Embracing returns can skyrocket second-chance sales, strengthen customer loyalty, and ultimately pump up your profits! Let’s dive into some fascinating eCommerce return stats showcasing how impactful returns can be on your business.
- The average eCommerce return rate is 16%.
- For every $100 in returned products accepted, online retailers lose $10.30 to return fraud.
- Fifty-eight percent of U.S. consumers make purchases with the intent to return.
- Ninety-two percent of customers will make another purchase if the returns process is easy.
- Offering free returns can boost conversions on high-ticket items by 17%.
- Eighty percent of consumers say returns are the most important factor when considering the overall order experience.
- Only 22% of shoppers said their most recent return experiences were easy.
eCommerce Return Reasons
The same survey found that three out of four consumers (76%) had returned an item they had just purchased. However, 78% of those surveyed felt the returns process was inconvenient. According to the survey, the top five reasons are:
- Return label not included in the shipping box (22%).
- Return shipping isn’t free (20%).
- Refunds take too long to be issued (19%).
- Lack of communication from e-tailer on return status (16%).
- Time and effort of dropping off returns with a mail carrier (13%)
Why are these return stats important? Well, it illustrates a few areas eCommerce companies can target when aiming to enhance their business strategies and seize every sales opportunity.
eCommerce Companies that Have Changed the Return Game
Chewy
Who would’ve thought: the pet store giving you paw-sitively excellent service? Chewy, one of the mascot stores of returning items stress-free, has a return policy of 365 days! They also meow-ve mountains to let you give that item to your pup’s buddies or donation sites.
Sure, most stores want customers’ happiness, but Chewy ensures their shopping experience meets their expectations with all the love a purring customer needs. After all, it’s so important for pet parents that their fur babies get the best.
Zappos
Unlike other online shoe companies, Zappos doesn’t cut corners when it comes to customer service! They already give their customers 365 days to return items for free, but their VIP program takes returns one step further with their Rapid Refunds benefit.
Zappos has become legendary for its speedy and simple return process by offering immediate refunds as soon as UPS scans the package. This makes the whole process a better experience and builds customer loyalty.
Casper (Mattress)
Casper has an excellent policy allowing customers to try their products confidently. Their generous 100-night trial allows customers ample time to decide whether they’ve made the right purchase.
Even better, Casper offers a thoughtful solution for customers wishing to return their products – donating them to a local charity instead of shipping them back. This way, their customers don’t need to feel bad about their decision.
How to Reduce Returns in eCommerce?
In today’s fast-paced retail world, companies have gone above and beyond to eliminate the dreaded ‘return anxiety’ by implementing transparent and painless return processes. They’ve created frictionless, convenient, and easy returns that appeal to customers, making returning a product less daunting. By utilizing these strategies, businesses save the sale and foster customer loyalty.
Emerging Trends
- Predictive analytics, for example, can empower businesses to pinpoint which products are most likely to be returned, allowing companies to address potential issues.
- Real-time data analysis can help tackle fraudulent returns and potential cyber threats, ensuring a secure shopping experience.
- AI-powered chatbots provide customers with instant support and guide them through the returns process more easily.
- Blockchain technology in the returns landscape grants increased transparency and accountability, offering peace of mind to all parties involved.
Embracing these innovative approaches will undoubtedly lead to reduced costs, improved efficiency, and an engaging and customer-centric return process.
Get Your Returns Game Up to Speed
From Chewy to Zappos, these companies have certainly changed the eCommerce returns game. Despite its higher costs, companies that focus on customer experience considerably reduce their return rates by offering an enjoyable user experience for unsatisfied customers. We can all learn from innovative eCommerce businesses prioritizing customer satisfaction above all else. Overall, managing product returns is not as difficult as it seems with the right strategies and innovations employed.
Jul 3, 2023 | Blog
The Top 10 Best 3PL Companies for Consumer Electronics
Client-focused innovation has been a driving force in moving the consumer electronics industry forward so fast that it has outstripped many businesses’ capabilities to handle logistics operations effectively. This situation pushes many organizations towards seeking help from external third party logistics (3PL) providers that can meet these critical supply chain needs while preserving quality standards. But how can we know which 3PL provider is reliable? This article aims to provide readers with our top picks in the business and essential criteria before making an informed decision.
What is 3PL?
Before getting into details about our list of recommended providers let’s have a brief reminder about what third party logistics (3PL) providers are used for; when outsourcing logistics or supply chain activities – companies enlist specialized companies for core tasks like warehousing, inventory management or transportation duties among others.
What is Consumer Electronics?
Consumer electronics are everyday products fashioned from high level technology such as smartphones or home gadgets that typically endure high speed changes rendering product inventories challenging to manage while precise distribution involves maintaining product quality standards at every turn.
An Overview of the Electronics Industry
The electronics industry is vast and includes different sub-industries ranging from audio/visual equipment to telecommunications infrastructure. It thrives off innovation, and even demands innovation from the companies within its industry. This evolution requires both fast adaptation coupled with business creativity, which pushes them into pressure zones where only highly skilled and fast-paced businesses thrive. They cannot slow down, which is why they need top-notch 3PL services.
The Role of 3PL in the Electronics Industry
Why Choose 3PL for Your Electronics Business?
By partnering with dedicated third party logistics providers. Businesses are given opportunities to level up their supply chain and focus on finalizing core operations. In turn, this gives rise to improving productivity levels and ultimately increasing business success by meeting customers’ evolving market demands. The electronics industry faces unique challenges that require specialized expertise to manage effectively. As such partnering with a third party logistics (3PL) provider can bring valuable benefits to businesses in this sector.
3PL Services Provided for Electronics Companies
3PL providers offer a comprehensive range of services tailored to meet the specific needs of electronics companies. These services include:
- Warehousing and Distribution
- Order Fulfillment
- Inventory Management
- Reverse Logistics
- Customized Packaging
- Kitting
- Transportation and Freight Management
- Inventory and Shipment Tracking Tools
- Customer Service
- Returns Logistics
Top 10 3PL Companies for Consumer Electronics
Shiphero
ShipHero offers comprehensive fulfillment services, including inventory management, order processing, and shipping. Their technology-driven approach and scalable solutions make them an ideal choice for consumer electronics businesses of all sizes. Need to chat with a fulfillment expert? Shiphero is here to help!
Red Stag Fulfillment
Red Stag Fulfillment specializes in handling large, heavy, or fragile consumer electronics products. They have advanced warehousing capabilities and stringent quality control measures to ensure safe and accurate order fulfillment.
Fulfillment.com
Fulfillment.com offers global fulfillment services, making them an ideal choice for consumer electronics businesses with an international customer base. They provide fast and cost-effective shipping solutions worldwide.
IDS Fulfillment
IDS Fulfillment specializes in customizable fulfillment solutions. They offer services such as kitting, assembly, and customization, making them suitable for consumer electronics businesses with unique packaging or assembly requirements.
Fulfillment Works
Fulfillment Works offers a wide range of fulfillment services tailored to consumer electronics businesses. Their services include inventory management, order processing, kitting, and customization, enabling businesses to meet specific customer requirements.
Ruby Has Fulfillment
Ruby Has Fulfillment provides comprehensive fulfillment solutions with an emphasis on technology and scalability. Their advanced order management system and robust analytics help businesses optimize their operations.
Shipfusion
Shipfusion offers technology-driven fulfillment services, including real-time inventory visibility and integrated shipping solutions. Their automation capabilities and data-driven insights improve efficiency and customer satisfaction.
Fulfillrite
Fulfillrite focuses on providing fast and accurate fulfillment services. With their expertise in order processing and shipping, they help consumer electronics businesses meet customer expectations for timely delivery.
ShipCentral
ShipCentral specializes in scalable and cost-effective fulfillment solutions. Their services include inventory management, order processing, and shipping, enabling consumer electronics businesses to streamline their operations.
Fulfillment Bridge
Fulfillment Bridge offers global fulfillment services with a focus on fast and reliable shipping. They have a network of fulfillment centers worldwide, providing efficient order processing and international shipping options.
Challenges in Fulfilling Consumer Electronics
Fulfilling consumer electronics comes with its own set of challenges that businesses need to navigate successfully. Let’s explore some of the difficulties involved in fulfilling electronics orders and how partnering with a reliable 3PL provider can help overcome them.
Managing Various Types of Electronics
Consumer electronics encompass a wide range of products with different sizes, shapes, and fragility levels. Effectively managing the diverse inventory requires specialized handling and storage solutions.
Handling Returns
The electronics industry experiences a significant number of product returns due to various reasons such as defects, customer dissatisfaction, or compatibility issues. Efficiently managing the returns process while minimizing costs and maintaining customer satisfaction is crucial.
Challenges of the Consumer Electronics Supply Chain and Their Solutions
The consumer electronics supply chain faces unique challenges that can impact the smooth flow of products. Here are a few key challenges and their corresponding solutions:
- Inventory Management and SKU Monitoring: Consumer electronics often have a large number of SKUs, making inventory management complex. Monitoring stock levels, tracking individual SKUs, and ensuring accurate inventory information is crucial to prevent stockouts and improve order fulfillment rates. Leveraging advanced technology and systems provided by a 3PL can streamline this process.
- Safeguarding Inventory in Fulfillment Centers: Consumer electronics are valuable and can be prone to theft or damage. Implementing robust security measures, including surveillance systems, restricted access, and inventory control procedures, can safeguard inventory in fulfillment centers.
- Efficient Returns Management: As mentioned earlier, handling returns in the consumer electronics industry can be challenging. A reliable 3PL can streamline the returns process by implementing efficient reverse logistics strategies, including product inspection, refurbishment, and repackaging, ultimately reducing costs and improving customer satisfaction.
- Handling Spikes in Order Volume: Consumer electronics businesses often experience fluctuations in demand, particularly during product launches, sales events, or holiday seasons. Scaling up operations and managing spikes in order volume can be a significant challenge. Partnering with a flexible 3PL provider ensures the capacity to handle high order volumes efficiently.
Advantages of Outsourcing Electronics Fulfillment with a 3PL
Monitoring Inventory and SKUs
With numerous SKUs and constant inventory movement, monitoring inventory accurately is crucial. A reliable 3PL leverages advanced technology and systems to provide real-time visibility into inventory levels, ensuring efficient inventory management and minimizing stockouts.
Safeguarding Inventory in Fulfillment Centers
Fulfillment centers act as the central hub for storing, organizing, and shipping products to customers. And to ensure inventory security, access control systems and advanced surveillance technologies should be put into place. These, in addition to regular inventory audits, safeguard inventory and minimize losses.
Efficient Returns Management
3PL providers specialize in reverse logistics and have established processes to efficiently handle returns, minimizing costs and optimizing the returns experience for both businesses and consumers.
Handling Spikes in Order Volume
During peak seasons or promotional events, order volumes can skyrocket, putting a strain on internal resources. 3PL providers are equipped to handle such spikes by scaling their operations, ensuring timely order processing, and maintaining high service levels even during periods of increased demand.
How a 3PL Service Enhances Consumer Electronics Business
Cost-efficient, Streamlined, Service-oriented 3PL Services
By leveraging the expertise and resources of a 3PL, electronics companies can achieve cost efficiencies, streamline their operations, and enhance overall service levels. 3PL providers bring industry-specific knowledge, specialized infrastructure, and efficient processes to ensure optimal supply chain management.
Third-Party Logistics and Customer Service
Outsourcing fulfillment to a 3PL allows businesses to focus on core competencies while leaving the logistics and fulfillment tasks to the experts. This enables businesses to provide exceptional customer service by ensuring accurate and timely order fulfillment, effective returns management, and efficient last-mile delivery.
Leveraging 3PL and Digitization for Optimal Supply Chain Management
With the advent of digitization and advanced logistics technology, 3PL providers can offer enhanced visibility, real-time tracking, and data-driven insights to optimize supply chain management.
Considerations for Consumer Electronics Fulfillment
Inventory Management for Consumer Electronics Fulfillment
Effective inventory management is crucial in consumer electronics fulfillment due to the diverse range of products and their varying demand patterns. Implementing robust inventory management practices, including accurate forecasting, SKU optimization, and replenishment strategies, can help businesses maintain optimal stock levels and minimize stockouts.
Role of Packaging in Consumer Electronics Fulfillment
Packaging plays a vital role in consumer electronics fulfillment, ensuring the safe and secure delivery of products to customers. It is essential to use appropriate packaging materials that protect electronics from damage during transit. Additionally, branding and presentation of packages can enhance the overall customer experience.
Benefits of Electronics Fulfillment with a 3PL
Cost Savings on Delivery
3PL providers have established relationships with carriers and can negotiate favorable shipping rates, resulting in cost savings on delivery for electronics businesses. Additionally, their expertise in logistics allows for optimized route planning and shipment consolidation, further reducing transportation costs.
Real-time Updates on Orders, Tracking & Returns
By partnering with a 3PL, electronics businesses gain access to advanced tracking and order management systems. Real-time updates on order status, tracking information, and returns processing provide enhanced visibility and transparency throughout the fulfillment process.
Scaling Your Brand with Confidence
As your consumer electronics business grows, a 3PL can scale its operations to accommodate increased order volumes and expanding customer base. This scalability provides the confidence to grow your brand without worrying about fulfillment constraints.
Solutions for Growth and Efficiency Across Your Business
Beyond fulfillment, a 3PL can offer additional services to support your business’s growth and efficiency. These may include value-added services such as product assembly, customization, and repair, as well as supply chain consulting to optimize processes and identify areas for improvement.
Secure Storage Facilities
Given the value of consumer electronics, it is crucial to partner with a 3PL that offers secure warehousing facilities. Look for providers that have robust security measures in place, including surveillance systems, access controls, and proper handling procedures to safeguard your inventory.
Key Takeaways
Consumer electronics fulfillment presents unique challenges that can be efficiently addressed by partnering with a reliable 3PL provider. Outsourcing fulfillment to a 3PL offers benefits such as cost savings, real-time order tracking, scalability, and access to specialized expertise. So don’t wait. Stop trying to handle orders all on your own and focus on creating efficiency in your supply chain by partnering with the right 3PL for your business!
Frequently Asked Questions
How Does a 3PL Work?
A 3PL works by taking over logistics and supply chain operations on behalf of a business. This includes tasks such as warehousing, inventory management, order fulfillment, transportation, and more. The 3PL provider integrates seamlessly with the business’s operations, leveraging their expertise, resources, and technology to streamline processes and optimize efficiency.
Examples of 3PL for Consumer Electronics
When evaluating whether a 3PL is suited for consumer electronics, there are several key factors to consider. Firstly, the 3PL should have experience and expertise in handling consumer electronics products, understanding their unique characteristics and requirements. This includes factors such as proper handling, storage, and packaging of delicate or valuable electronic devices. Additionally, the 3PL should have a proven track record of accuracy and efficiency in fulfilling consumer electronics orders, as well as effective management of returns and reverse logistics.
Jul 14, 2023 | Blog
One of the easiest ways for fulfillment centers to run into trouble is through an inefficient returns process. Your outgoing fulfillment can be as optimal as any brand on the market, but without a way to communicate and complete returns, warehouses can quickly become overwhelmed and disorganized.
While a product return might mean the customer is dissatisfied with what they received, returns offer a key opportunity for brands to showcase their quality customer service and encourage them to return in the future.
Conversely, an overly complicated returns process leaves buyers feeling unappreciated, frustrated and unwilling to visit the online store again. By creating an easy-to-use returns management process, you can ensure your customers walk away feeling positive and satisfied with their buying experience.
Here’s a breakdown of what you can look forward to while reading ShipHero’s Guide to Returns in eCommerce:
