Jun 1, 2021 | 3PL Warehouse Management, Best Practices, Blog, Fulfillment, Warehouse Management Software
Always protect the goods! 1 in 100 packages shipped annually by UPS or FedEx are reported as lost or damaged. Considering together the two carriers ship almost 8 billion packages per year, that’s almost 8 million packages on the receiving end of some extra tough love.
In general, the main risks that cause damage to goods are:
- Getting dropped
- Heavy vibration from conveyor belts and trucks
- Getting compressed (i.e., squished) from stacking or sudden movement
- Humidity and temperature changes
Depending on the fragility of your goods, you should first evaluate what is required for full protection. Take into account the type of box material, packaging materials (e.g., styrofoam aka ‘packing peanuts’), etc., and compare that to the cost of repair/refund for a damaged item. Note that while you can save some money using cheaper alternatives for packing, you may pay more in the long run if items are frequently damaged on their way to customers.
Tips to Avoid Damaged Goods
Whether it’s thrown around in transit, dropped down chutes and conveyors, or subject to the harsh elements, retailers must consider these packing tips to avoid the headaches of customer refunds and returns caused by lost or damaged goods.
Tip #1 – Fragile Product? Double Up.
Fragile products must not have room to shift around during transportation. To prevent fragile products from breaking, we recommend one of the following:
- Use ample amounts of packaging materials (see below) in a right-fit box,
- Ship multiple items in one box using compartments
- Box-in-a-box packaging for added protection and branding opportunities
Consider the following packaging materials for impact protection:
- Polybag: Cheap, sealed plastic bag. Prevents water damage, but no structural strength.
- Jiffy bag: Like a polybag with added cushioning
- Bubble wrap and air cushions – although it can get expensive, bubble wrap and air cushions provides total coverage
- Brown paper and void fill materials – the cheaper alternative, brown paper and styrofoam packing peanuts are easily scrunched up to fill voids in packaging; however, it can collapse easier than bubble wrap on long journeys
- Single-ply corrugated roll – Line thin cardboard boxes and wrap bottles with this to increase impact resistance
Tip #2 – Heavy Products? Wall Up.
Heavy products could deform or collapse weak boxes when stacked. That’s why it’s important to know a box’s ECT (Edge Crush Test) rating, which is the amount of weight that can be stacked on a box wall before it deforms and collapses. When shipping small and medium sized products, single-walled boxes provide enough support. As for larger, heavier products, only use double- or triple-walled corrugated boxes depending on the fragility and value of your items.
Tip #3 – Shipping Liquids? Bag up.
For liquids, perfumes, aerosols, especially those that come in easily breakable containers, most carriers advise that they are shipped separately when possible, using padded poly bags or jiffy envelopes.
Tip #4 – Take a Picture of Your Package Contents Before You Ship
Before handing off any package to a carrier, we recommend taking a picture of the package contents and condition. That way, you have proof in case a carrier tries to shift blame to your warehouse processes.
That’s why ShipHero created a feature that allows warehouses and fulfillment centers to seamlessly take snapshots of packages before completing the packing and shipping. Simply set up a camera and scan a barcode, and the image is automatically uploaded to the order. It fits right inoto your pick and pack processes and gives you the liability protection you need.
Tip #5 – Create a Best Practices Guide
Depending on the item value and size, create a playbook for your warehouse workers and pick-and-packers so they can use the correct packaging every time. This ensures that products aren’t damaged in transit and also saves you money from over-packing.
Wrap It Up
By following these 5 tips, you’ll effectively reduce the likelihood of your goods getting damaged in transit from your fulfillment center or warehouse. This will not only help your bottom line, but will also avoid complications from returned products. Goods, protected.
Jun 14, 2021 | 3PL Warehouse Management, Blog, Fulfillment, Warehouse Management Software
Fleets of cargo planes grow larger, drones soaring the skies replace bike carriers on the ground, and delivery trucks weave through city streets in hectic routes. Why? All for the sake of convenience and speed of delivery for your e-commerce goods.
Recent estimates indicate that e-commerce sales will rise to $5.4 trillion by 2022. At first glance, the carbon-intensive shipping and delivery associated with e-commerce, especially expedited shipping and last mile delivery methods, may seem to contrast our collective value of environmental sustainability. But that doesn’t have to be the case.
In this post, we’ll explore how shipping companies are pursuing new strategies for carbon-neutral shipping and explore what that may mean for the future.
What Is Carbon-Neutral Shipping?
In recent years, terms like “carbon-neutral” and “carbon footprint” have become part of our common vocabulary. But what do they mean? What is carbon-neutral shipping, and why do you need it?
The Definition of Carbon-Neutral
“Carbon” is shorthand for the greenhouse gases associated with climate change; namely, carbon dioxide and methane. A company’s “carbon footprint” refers to the amount of greenhouse gases it puts into the atmosphere. Recent green initiatives have prompted many corporations to reduce their carbon footprint by mitigating their emissions.
Carbon-neutral shipping is an essential strategy for reducing a company’s carbon footprint. On one hand, it’s impossible to eliminate all carbon emissions from the shipping process. But companies can pursue carbon neutrality through various methods.
Why Consider Carbon-Neutral Shipping
Carbon-neutral policies protect the environment, but they also offer some immediate, practical benefits to companies who pursue an eco-friendly business strategy. First, many customers prefer to rely on a company that embraces sustainable business practices. That is especially true of millennials and young adults. By some estimates, 87% of customers prefer a company with sustainable business practices.
Additionally, the same sustainable practices that reduce your carbon footprint also work to eliminate waste. So while carbon neutrality may seem like a heavy commitment, it can ultimately help you cut costs while maintaining an eco-conscious customer base.
How to Achieve Carbon-Neutral Shipping
Currently, it’s simply not feasible to completely eliminate all greenhouse gases that your shipping method produces. But that doesn’t mean it’s hopeless. There are several steps that you can take toward carbon neutrality.
Step 1: Determine Your Emissions
First, you need to determine the impact your company is already having on the environment. The Carbon Fund provides a helpful Business Emissions Calculator that you can use to determine your company’s carbon footprint. You can also break down your carbon footprint by category, which may help you pinpoint the impact your shipping process has on your company as a whole.
Step 2: Re-evaluate Your Packaging
Shipping supplies are essential for protecting e-commerce products during transport. But some of these products do little more than make waste. Did you know that between 1950 and 2015, less than 10% of the world’s plastic was recycled? The rest still clogs our landfills.
Consider investing in recyclable and biodegradable materials, such as the following:
- Custom-made shipping boxes to eliminate wasted packaging
- Biodegradable air pillows
- Sealed-air packing peanuts instead of Styrofoam
- Reusable refrigerant gel packs instead of dry ice
These materials may be an initial financial investment for a shipping company or 3PL, but over time may prove to be more cost-effective than the products you’re currently using.
Step 3: Redesign Shipping Routes
Many logistics companies can help you analyze your shipping routes and find ways to optimize your efficiency. You may even be able to consolidate your shipping needs with third-party LTL carriers.
Step 4: Purchase Carbon Offsets
A carbon offset is any financial contribution to environmental projects and funds. These “carbon credits” can be used to offset the impact of your shipping process. However, this practice is often criticized as merely a financial escape hatch for a company that doesn’t want to make other changes toward sustainability.
Companies that Advertise Carbon-Neutral Shipping
Many e-commerce companies and 3PLs already advertise carbon-neutral shipping and delivery, but several notable shipping companies are committed to reducing emissions and pursuing sustainable shipping models.
UPS
When you use UPS, you have the option of purchasing carbon offsets to mitigate the environmental impact of the emissions used during the transport. The carbon-neutral option used by UPS is verified by SGS, an inspection, and a verification company, offering one of the most reliable systems for carbon offsets.
FedEx
FedEx is making a host of changes in the hopes of becoming fully carbon-neutral by 2040. Currently, the company offers carbon-neutral shipping envelopes, and their plans involve electric vehicles, energy-efficient aircraft, and other innovations to achieve sustainability.
ShipHero
ShipHero understands the fast-paced needs of the shipping industry, which is why we provide two-day ground shipping supported by advanced logistics tools powered by AI. Rather than rely on centralized hubs, ShipHero brings products directly to customers’ doorsteps in a shipping method known as distributed fulfillment, which is a proven strategy for minimizing emissions and reducing costs.
The Future of Eco-Friendly Logistics
Moving forward, we can expect several innovations in emerging technology to lead the way in the first half of the 21st century.
Electric Vehicles
Electric vehicles have already become standard fixtures on America’s highways, and we can imagine that soon these cars will be utilized as an efficient means of shipping. That will drastically reduce, if not eliminate, the carbon released into the atmosphere from combustion engines.
Advanced AI for Logistics
Logistics software will soon govern every company’s delivery route, providing real-time optimization based on traffic patterns, weather conditions, and other considerations relevant to the delivery route.
Emphasis on Warehousing Facilities
While many innovations will focus on the trucks and routes themselves, there will be an increased emphasis on the carbon emissions and environmental impact of warehousing facilities. We might even expect federal regulations to stipulate the kinds of packaging and waste produced by shipping facilities, prompting managers and others to pursue sustainable practices at every level of the shipping process.
Wrap It Up: A Sustainable Now, a Better Tomorrow
These innovations may seem like significant investments, but these carbon-neutral strategies are essential for maintaining our environment for future generations. By embracing change today, we leave our children a brighter tomorrow. Cue the American flag… and scene.
Jun 16, 2021 | 3PL Warehouse Management, Blog, Fulfillment, Warehouse Management Software
Despite China’s developing economy and huge population, their market is notoriously difficult for foreign businesses to survive, particularly those with a physical presence. Popular companies like Walmart, Home Depot, and Mattel have tried and failed to create a steady business in China, due to conflicts with the government, failing to understand their customers, or just bad luck.
This is actually pretty common across the board. In fact, 48% of foreign businesses fail in China within their first two years, according to the 2013 Australia-China Business Week conference.
China is a bureaucratic one-party state, which means that the lines separating private and public enterprises are very blurry. For this reason, the government tends to own and heavily support Chinese companies, which is one of the reasons why most foreign businesses fail so quickly. They have to jump through bureaucratic hoops, jockey against local competition for market share, and often compete directly with the Chinese government itself.
Getting Started
Despite the fact that e-commerce is estimated to be a $250 billion market for U.S firms in China, in an unexpected twist, smaller DTC companies have had more success in the Chinese market, compared to the likes of major retail brands such as Walmart.
To capture their fair share, international and local companies across industries are partnering up with Chinese e-commerce platforms like JD and TaoBao to create deals that allow the e-commerce platforms to sell their products directly to Chinese consumers. Chinese third-party logistics (3PL) companies are then contracted to help e-commerce companies keep up with their delivery or logistics.
The products are also usually held in Chinese warehouses, waiting for distribution or last-mile delivery from gig workers or delivery companies. In China, order fulfillment must be flexible to keep their customers satisfied. When a customer purchases the product, they only have to use one account due to the e-market’s level of integration, and they typically receive it within just a few hours or days.
Accessibility
With 800 million residents in China using internet services, China is the most connected country in the world. As a result, these users are finding the adaptability and accessibility of DTC businesses to be particularly alluring. These businesses, unlike foreign ones, can distribute their products at a moment’s notice using local resources and marketplaces, which makes them difficult competition for foreign businesses.
Millions of users visit e-commerce sites like Tmall, JD, and TaoBao to do their daily shopping. It’s become a staple of their everyday life. By leveraging these companies’ existing logistics networks, foreign competitors are better equipped make use of China’s regional infrastructure.
A New Strategy
More and more companies prefer to let local Chinese companies sell their products, rather than investing in the treacherous retail markets. If the customer wants to avoid especially crowded commercial districts, online markets are their best alternative. Most e-commerce companies are using customer behavior data to enhance website layout, presentation, and product lines to make their business more appealing to their customers.
E-commerce is the future of shopping in China, and many other countries as well. In 2019, e-commerce sales in China were estimated to be 36.6% of total sales, which is a huge jump from 12.4% in 2014. By 2023, e-commerce is expected to make up over half of all sales, at 64%.
There still exists a rather large demand for foreign products in China, given their elevated status symbol and expectation of high-quality. However, finding these products can be difficult for Chinese consumers because of the consistent failure of foreign businesses to establish their presence in the Chinese market. Using e-commerce and online shopping, customers can get connected to products they want, which is a win-win for the DTC company, the e-commerce site, and the customer.
Read on to learn some important tips from the most successful DTC brands about what makes their businesses so successful.
3 Tips From The Experts on Entering the Chinese Market
1. Utilize Existing Infrastructure
Don’t be afraid to use third-party platforms as opposed to your own. Customers in China prefer shopping through platforms like WeChat and Tmall. There is a surprising amount of freedom for brands to make their own space on these platforms.
When asked by Adweek, Allbirds International president Erick Haskell said “It’s not like being on other third-party platforms where it’s hard to control brand presence and pricing. We can run our own retail, have our own ecommerce site [on Tmall].” His statement reflects how, despite popular western perception, Chinese platforms allow plenty of freedom for brands to experiment and express themselves.
2. Adapt to a Younger Audience
Chinese consumers are 10 to 15 years younger than consumers for the same brands in the west. This has a pronounced effect on not just marketing, but how brands present and behave themselves in general. Christina Fontana, the Head of Fashion and Luxury for Tmall, said this about how Chinese customers differ from westerners, “Consumers are very young and demanding. They want to know about brands and their craft. It’s important to tell that story.”
In general, brands will go to great lengths to demonstrate the quality of their products by including extra information about their manufacturing process, materials, location, and work conditions.
3. Take Feedback From Customers
Chinese consumers can be very vocal about their purchases. In fact, Fontana says that 80% of all customers on the Tmall platform leave feedback. Feedback has become so vital that the platform now includes a feature that lets brands directly take the feedback they receive and use it in their product development.
The takeaway from all of this is that customers want to be engaged directly with the brand from which they are buying. They want to know that they have a voice in how the product is shaped.
Wrap It Up
E-commerce brands that want to grow their global empire should find alternate routes in difficult markets like China. With their accessibility, adaptability, and huge inventory of in-demand products, it’s easy to see why more and more brands want to establish an online presence overseas. The question now becomes, will your brand be next to join the success of these DTC businesses?
Jun 21, 2021 | 3PL Warehouse Management, Blog, Fulfillment, Warehouse Management Software
In the subtle words of The New York Times headline, “Chaos Strikes Global Shipping”. What does it mean by that exactly?
Swing by your local department store, grocery store or electronics store, and you’re bound to notice empty shelves. Previously, people blamed COVID-19 panic buyers for emptying store shelves because they stripped stores clean of essentials like toilet paper and water bottles. However, the current empty shelf crisis comes from suppliers that can’t keep up with demand due to lower production, shipping delays and labor shortages.
As a result, consumers are seeing widespread shortages of goods, from shoes to cars and everything in between. In this post, we’ll take a closer look at the empty shelf crisis, the industries that are impacted the most and what the future may hold for the shipping industry.
Why Are Walmart Shelves Empty?
There are many empty Walmart shelves in 2022 because of the Omicron variant, winter storms and supply chain problems. Here’s a quick dive into each of those reasons:
The Omicron Variant
The Omicron variant of COVID-19 was discovered in November 2021 and caused a new American COVID wave in early 2022. Many Walmart stores temporarily closed for deep cleaning due to rising cases, which meant people had fewer stores to shop at – ultimately resulting in empty shelves across many locations.
Winter Storms
Mid-January 2022 saw a winter storm plague much of the Southern, Mid-Atlantic and Northeastern United States. Heavy snowfall and blocked roads caused food shortages in affected areas, resulting in low stocks almost everywhere.
Supply Chain Crisis
Unfortunately, some lingering supply chain issues in 2021 carried over to 2022. Many stores have resorted to importing extra grocery items on chartered cargo ships to ease these shortages.
What Caused the Empty Shelf Crisis?
The empty shelf crisis is largely caused by the COVID-19 pandemic destabilizing the entire shipping industry. There’s some irony to this shipping crisis because, while consumer demand and spending increased, suppliers couldn’t keep shelves stocked to capitalize on these opportunities.
Why Is There a Supply Chain Shortage?
While the pandemic majorly contributed to shipping delays, other immediate factors have also directly impacted the industry:
Container Shortages
Recent shortages of shipping containers have driven up the cost of goods delivered from China. CNBC reports that this caused shipping costs to rise by 300%, and logistics companies are struggling to keep up with shifting demands.
For example, the Apple iPhone was generally shipped by air, but the container shortage forced suppliers to ship these products via sea containers. Multiplied across industries, the shift to ocean freight congested sea routes, and the issues in the Suez Canal certainly exacerbated things.
Human Resource Shortages
During the pandemic, the number of dockworkers and truck drivers decreased, causing massive delays in shipping and delivery. As a result, the gig economy stepped in, providing temporary and part-time gig workers for warehouse and fulfillment center work.
Products and Material Shortages
One of the more talked-about shortages is the microchip shortage, which limited the manufacture of new cars and many electronic devices. Other product and material shortages due to the pandemic, such as a recent deficit of aluminum, have impacted the domestic transport of canned food and soft drinks.
Suez Canal Blockage
The Suez Canal blockage is a symptom of the industry’s problems as a whole. According to Bloomberg, the lack of available workers caused many loading docks to become overwhelmed, resulting in massive shipping delays.
Industries Affected by Shipping Delays
These shipping delays are wreaking havoc within the retail industry, affecting the ability of domestic shippers and 3PLs to fulfill their eCommerce orders. Many American companies are paying up to ten times the usual price of shipping products across the ocean.
The following industries have seen the most impact:
Cars
While this doesn’t impact your local shelves per se, the automotive industry is being hit hard by a lack of available materials – most specifically the microchips used to control the fuel injection system, cruise control and other electronic systems aboard today’s automobiles. As a result, car dealers have struggled to maintain inventory, and consumers are seeing the price of used cars increase.
Electronics
The chip shortage also impacted electronics companies, including Sony, Apple and Microsoft. A recent fire at a Japanese plant has only exacerbated this chip shortage, meaning we may see a deficit in electronic merchandise for the foreseeable future.
Additionally, a lack of reliable containers has prevented popular electronics companies from reliably shipping products such as laptops, flat-screen TVs and even cell phones.
Since Americans couldn’t go on vacation during the lockdown, they typically sank their money into fancy new entertainment systems. The industry did its best to keep up, but, ultimately, the laws of supply and demand collided at the port.
Shoes
Both Steve Madden and Crocs have expressed concern about the supply chain bottlenecks happening because of the global shipping crisis. Nike usually paid $2,000 to ship a 40-foot container of sneakers. Now, shipping this same container costs $15,000 to $20,000.
Canned Foods and Beverages
The pandemic has affected aluminum manufacturers, preventing them from producing familiar brands of canned fruit and soft drinks. With transportation and logistics problems also slowing domestic shipping down, many grocery stores may not stock popular canned goods for the foreseeable future.
Cleaning Supplies
Naturally, the pandemic had us all reaching for the hand sanitizer. While the shipping issue doesn’t directly impact these products, it could still be a while before the cleaning industry recovers from the demands it experienced during the height of the pandemic.
Other Industries
Many online are panicking about the Great Ammo Shortage of 2021. Plus, America hasn’t been uniformly affected by the current shipping crisis, so what’s absent from the shelf of your local supermarket may vary on a weekly basis.
Meanwhile, Amazon sellers are experiencing more profits than ever before, as more people turn to online shopping during times of store shortages. If you’re selling online, don’t forget to stock up on shipping supplies so you can fulfill your orders.
What to Expect for the Rest of 2022
Industry leaders are uncertain as to when the shipping crisis will be resolved. Some problems, like the microchip shortage, are simply a matter of production, but the availability of shipping containers and reliable shipping companies may take a bit longer to sort itself out. So, what can you expect while suppliers are scrambling to meet demand?
Higher Prices
Unfortunately, consumers can expect to pay more for the products they’ve come to rely on. Automobiles, electronics and particular brands of shoes may be harder to come by, and when you do, you may find yourself paying a higher sticker price.
For retailers, this highlights the need for a reputable logistics company. Because shortages can play havoc with your inventory, you need 3PL software to assist in warehousing and inventory services to stay on top of product levels, re-ordering schedules and more.
The right company can ensure that you keep your word to your valued customers, providing order fulfillment during a time of increased economic instability.
Preparation for the Holiday Rush
Many retailers are giving careful consideration to how to handle the 2021 holiday rush. The time to build inventory is now, so you can be fully prepared when the season comes. The retail ecosystem is bound to look different, but if companies are diligent, they can ride out this storm and come out stronger than ever.
Focus on Supply Chain Resilience
Supply chain resilience is your ability to continue normal business activities even when your order fulfillment and supply chain are disrupted unexpectedly. With a resilient supply chain, you can weather the storm of low stock and shipping delays without too many hitches.
Work with 3PL providers to improve your supply chain resilience. For instance, Amazon FBA users often work with ShipHero for FBM to keep products in stock and offer diverse order fulfillment options.
Check out our previous blog for best practices on building your resilient supply chain.
Wrapping It Up
Suppliers have had issues both producing and transporting goods over the past year and events like the Suez Canal blockage have only added to the “chaos.” Consumers should expect shortages of automobiles, canned produce, cleaning supplies, shoes and more. In these uncertain times, having a robust and resilient logistics and fulfillment network is vital to keep your consumers’ trust.
That’s why ShipHero provides retail brands and 3PLs with powerful capabilities to handle their shipping needs and build a resilient supply chain.
Empty Shelf Crisis FAQs
What items will be in short supply in 2022?
Due to global events like the ongoing pandemic and reduced production capacity, essential items like groceries and feminine hygiene products are predicted to be in short supply during 2022. You can also expect shortages in aluminum and advanced microchips, which means high electronic prices, as we’ve seen with the recent PlayStation 5 price hikes in certain markets.
What is causing empty shelves?
Shipping delays and low industry productivity cause empty shelves. However, factors like inclement weather and the COVID pandemic can worsen these shortages.
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About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With over 5,000 brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.
Jul 9, 2021 | Blog, Fulfillment, Warehouse Management Software
By: Maggie M. Barnett, Esq., COO at ShipHero
Shortages and bottlenecks have battered global supply chains throughout 2020 and 2021. The COVID-19 outbreak and other unexpected events caused critical suppliers worldwide to suddenly have short supplies, leaving companies reaching for alternate sources of supply that often had dramatic price increases. It has become more evident than ever that companies, manufacturers, and retailers need to build resilience against the uncertainty of the supply chain and the events that can upend it.
To better prepare for supply chain challenges, company leaders and supply chain managers need to develop a plan for how to avoid supply constraints. Flexibility also needs to be considered so that when emergencies do happen, the company can adapt to unexpected changes, whether short-term or long-term. One of the first steps to creating resilience against shortages and other supply chain issues is understanding what causes these disruptions.
What is supply chain disruption?
Supply chain disruption is when a crisis or unexpected change causes problems with the normal flow of goods between entities all along the supply chain. The coronavirus outbreak is an excellent example of a crisis that caused supply chain disruption, such as when personal protective equipment became inaccessible for many hospitals in North America. Other examples of changes that can cause supply chain disruption include dramatic changes in consumer demand, tariffs, or natural disasters such as earthquakes.
The state of supply chain disruption in 2021
2021 has been a large scale example of how supply chain disruption can upend entire industries. Among a handful of other complexities such as the Suez Canal blockage, COVID-19 caused immense constraints on raw material supplies, semiconductors, and other commodities. Understanding today’s issues and their effects helps us to have better visibility of future supply chain disruptions.
COVID-19 effects
COVID-19 had dramatic effects on global companies. The beginning of the pandemic saw consumers panic-buying in bulk. Inventory levels couldn’t keep up with the sudden increase in demand for essential products such as toilet paper, food, PPE, and water. Large-scale workforce safety measures inevitably increased lead times, and outbreaks of the virus slowed companies even further.
Suez Canal blockage
The Suez Canal sees around 13% of the volume of global trade, as it is a gateway for expedited transportation between the Atlantic Ocean and the Western Pacific and Indian Oceans. The nearest alternative route is navigating around the Cape of Good Hope in South Africa, eight or more days of extra travel. On March 23rd, a huge container ship called The Ever Given got lodged diagonally in the canal due to high-speed winds and was stuck there for six days.
Over 350 ships were stuck finding alternate routes or waiting during the Suez Canal blockage, leading to a ripple effect throughout the supply chain. Inventory shortages, loss of perishable goods, and a domino effect of delays caused a supply management nightmare. The waves from this event continued to be felt months after the event as warehouses and shipping companies got set significantly behind.
Supply shortages
Auto dealerships are facing shortages as they try to replenish their inventory from the pandemic. Simultaneously, car sales are up 48% over their lowest point in the pandemic. Retailers’ inventory to sales ratio is only 1.07, and inventories for retailers have shrunk 5% YoY. Due to tight capacity across the global supply chain and high demand, companies have had to extend lead times for inventory planning. Not helping the matter is the shortage of semiconductors that is affecting car production levels.
Longer lead times
Lead retailers such as Walmart have also had to lengthen lead times as the inventory to sales ratio dropped to 1.23 in March 2021, according to the Census Bureau, the lowest ever recorded.
An example of supply chain disruption: COVID-19
The pandemic impacted all supply chain members and their ties simultaneously in a way we have never seen before. Border closures, supply market lockdowns, labor shortages, and shipment interruptions caused problems across all supply tiers. At the beginning of the pandemic in March of 2020, 94% of Fortune 1000 companies already saw supply chain disruptions.
Many factors caused a critical shortage of hospital PPE, including the fact that at the time, more than 70% of respiratory protection supplies used in the United States were made in China. Manufacturers pivoted to help production, but demand worldwide was extreme. The US government stepped in to help, though federal policy like tariffs also added further disruption. Simultaneously, the general public was panic-buying resources such as PPE, grocery items, sanitizing agents, and household items like toilet paper. The reliance on just-in-time ordering and instant warehousing meant that average consumers could not reliably purchase essential items.
How are supply chains disrupted?
There are dozens of reasons why a supply chain can be disrupted. Here are some of the most common reasons.
Pandemics
COVID-19 is a prime example of pandemic-related supply chain disruption. These large-scale events can cause a ripple effect in the global supply chain that is extremely hard to recover from due to the worldwide impact.
Natural disasters
Hurricanes, fires, and floods all can cause supply chain disruption. Hurricane Katrina is a great case study, where large-scale power outages and the inability to use transportation routes caused significant supply issues.
Transportation failures and delays
Around the same time as the Suez Canal incident, a COVID-19 outbreak shut down one of China’s busiest ports, the Yantian Port. Incidents like the canal blockage and the temporary shutdown at Yantian can disrupt entire supply chains for months.
Product problems
Recalls of incorrectly made or unsafe products can sometimes be isolated incidents but also can cause much larger ripples. For example, if a large supplier recalls a part used by many manufacturers, it could cause a delay across many parts of the sector.
Cyberattacks
In May, a cyberattack caused the Colonial Pipeline to shut down its network. The pipeline sources close to half of the East Coast’s fuel, about 2.5 million barrels per day of gas. Cyberattacks are growing more common, and many crucial parts of the supply chain are incredibly vulnerable to these threats.
Geopolitical issues
Tariffs and trade wars can cause significant issues for manufacturers and suppliers. We have seen this with the US trade with China throughout 2021 and continuing shortages because of these policies.
How to prepare for supply chain disruption
Create a supply chain emergency plan
If necessary materials are affected by supply chain disruption, you need to have an alternate action plan. Whether having backup suppliers, an emergency budget, or a stockpile of these essential items, you will already be more resilient by coming up with a strategy.
Build up inventory
Stockpiling essential items for your company can help you prepare for any situation. Order ahead a handful of months so that you
r business will have plenty of time to enact its supply chain emergency plan before running out.
Conduct a supply chain vulnerability audit
By looking at where your risk is within your supply chain, you can help your supply chain leaders know where they need to create more flexibility. By predicting potential pain points before they become problems, you can encourage trade agility and find alternatives.
Identify backup suppliers
If your leading suppliers suddenly lost the capability to get you your goods, what would you do? Identifying backup suppliers for all of your goods and services categories can help provide resilience against issues in the future.
Diversify the supply base
When picking suppliers, try to pick those in different locations that ship to you through various avenues. When you diversify your supply base, you ensure that while one supplier may be unable to get to you, the others should still be functional.
Partner with a logistics expert or 3PL
Collaborating with a supply chain logistics expert can help you find alternatives in case of an emergency. Professional logistics leaders also can help you find ways to make your supply chain more robust and resilient. 3PL can also help you grow your company’s ability to have flexibility in times when some areas or resources may be unavailable.
Adopt risk evaluation tools
Technology is adapting to help try to prevent these widespread supply chain issues in the future. Implementing some of these AI-driven risk evaluation tools can provide ways to predict and combat cyber threats. Automation and AI often have a better ability to find potential shortages before most suppliers even know they exist.
What to do when supply chain disruption occurs
Communicate with customers
Clearly explain to your customer base what is happening within the industry and what steps you are taking to resolve the issue. By keeping an open line of honest communication, they will be more accepting and understanding of your predicament.
Evaluate all critical components of the supply chain
Decide which parts of the supply chain are the most vital to getting your product out. Once you have identified the most critical components of your supply chain, find alternative suppliers for those items as soon as possible.
Estimate available inventory
Calculate how much inventory you have left and how long it will last you. Evaluating where you are at with your stock will help you figure out the urgency with which you need a new supply line.
Assess buyer behaviors
If customer behavior is causing part of your disruption, start assessing buyer behavior. By seeing how your customer base is purchasing, you can better react to their needs and shift in needed areas.
Optimize production and distribution capacity for safety
In the case of an event like COVID-19 or a natural disaster, consider the safety of your suppliers and employees. Ensuring the safety of all involved people and parties should be paramount. Consider staggered shifts, remote work, and alternative schedules to guarantee a safe working environment as much as possible.
Identify logistics flexibilities
Not every item you are receiving during a supply chain disruption is as crucial as the others. Just as you identified things that are the most essential to your company’s function, also provide slowdown and flexibilities with those that are not. Communicating this information to your suppliers can help you get what you need more readily and not clog them up with less important items.
Evaluate cash flow impact
Adjust your overhead so you can cover and financial impact or issues with your cash flow. Determine what areas will suffer the most, and find ways to cover these losses in a way that is as financially healthy as possible.
Conclusion
Supply chain disruption is inevitable to some degree. The best thing your company can do is encourage visibility and resilience to ensure that if something does happen, you can combat it in a way that is healthy financially and for your workforce. Preparation and plans in case of emergency go a long way in protecting your company from disruption and can buy you precious time to implement alternatives and backup plans.
Examine your supply chain, and consider ways that it may be affected in the future, and how you can create robust practices that will help soften the blow of any issues.
If you’re new to ShipHero Fulfillment, please schedule a meeting today with our experts to learn more about how we can help you get your orders picked, packed, and delivered with our fulfillment service. No setup fees – simply pay as you go. ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.
Click HERE to Schedule a Meeting Today
Maggie M. Barnett, Esq., COO
ShipHero
About the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.
Follow Maggie on Twitter & LinkedIn.
Aug 19, 2021 | 3PL Warehouse Management, Blog, Fulfillment, Warehouse Management Software
By: Aaron Rubin, Founder & CEO of ShipHero
The changes to the world economy have been many and varied since the start of the COVID-19 pandemic in March 2020. However, perhaps the largest change has been seen in eCommerce, where 2020 projections were blown away by a population of shoppers trapped in their homes, with little else to do except shop online.
While this surge in eCommerce has been a good thing for most businesses, perhaps the largest concern moving through the 4th quarter of 2021 is how to maintain the increase in eCommerce sales without overreacting – growth is wonderful, but with the resurgence of the Delta variant, things are a bit more uncertain than they were two months ago, and it appears that eCommerce may be due for another uptick in revenue. Which means a downturn could be on the horizon.
Meet the Ebbs and Flows on Even Footing
But how can you meet the challenge of ongoing revenue growth without expanding your business to the point that you cannot sustain it when the eventual lull comes? While this has always been a concern for retailers, virtual or not, maybe there’s a better way to manage these ebbs and flows. Let’s examine five ways you can grow your online business and revenue through efficiency and optimization, instead of expansion that often hits your bottom line.
5 Ways to Grow Your Online Business
- Optimize, optimize, optimize. According to a recent report by EuroMonitor, eCommerce businesses have managed to handle the influx of orders by optimizing their current tools or investing in new ones.
With a warehouse management system like ShipHero, these online businesses were able to more accurately track their inventory, nullify pick and pack errors, and more quickly move product out the door and into customer’s hands.
By using already installed systems, these companies have discovered that they can do more with the same, and by not increasing overhead, they will be able to better sustain any ebbs or flows brought about by another round of COVID-related lockdowns.
- Keep your focus. While it is easy to get wrapped up in the allure of attracting brand-new customers to your virtual storefront, it can also lead to additional spending and time away from your core customer. In the midst of uncertainty, it might be better to focus more squarely on your base, using channels and media you know will work. You always want to strive for growth, but take the time to really dive into your current outreach channels and see what else you can mine from them. You may find it easier and more profitable to secure sales from your core customer base, as opposed to a brand-new customer demographic.
- Leverage current partners. Whether it’s the company that supplies your shipping materials, or the one that runs your software, chances are these companies have additional tools and insights they can provide. Leverage these already established relationships to get more value. While this will more than likely require an additional spend, you will save time and headache by having integrations in place that will make implementation much easier.
- Rely on your retailer network. This is the time to really emphasize the partnerships you have with other retailers. Whether it’s Amazon, Walmart or Shopify, the wide reach of these brands will help your business grow further and faster. Take advantage of any programs or promotions they may offer, especially as 4th quarter approaches and the holiday season ramps up.
Also, make sure that all of your store integrations are working with your inventory and warehouse management systems. You don’t want to sell products you don’t have, or not sell products you do have, and the only way to keep it straight is to ensure those connections are in line. Also, investigate the ability to add a return management process to your existing system, so that you can more easily track and resell returned products.
- Remarketing wins retail. You have probably heard the old adage that someone needs to see or hear something three times before they act. This is still true, and that means, you need to reach your customers or potential customers three times before you can even hope to convert the sale. Fortunately, remarketing has become one of the easiest and most effective ways to bring those “window shoppers” back into the fold.
More than likely, your current advertising platforms allow you to remarket without too much additional effort. Google and Facebook make it surprisingly easy to use these features and it can greatly impact your revenue stream. Also, never underestimate the allure of an abandoned cart. Remarketing to folks who have taken the extra step to “add to cart” is an easy way to make some sales.
Planning for the Future
By implementing some or all of the steps above, you’ll have a better chance of maintaining balance throughout this unprecedented time. And you’ll be poised for future success. It is predicted that eCommerce sales will account for 1 out of every 4 retails sales by 2025. At the height of the pandemic, it was estimated that 3 out of every 10 sales were transacted online.
While experts are not predicting that we will return to such a high number in the next year or so, it is important to realize that higher eCommerce volumes are here to stay and learning how to manage the highs and lows now will better prepare you for success in the future.
How ShipHero Helps you Grow
ShipHero’s Warehouse Management Software is a complete system that allows you to manage inventory, connect directly to all of your third-party selling channels and provides you with better pick and pack capabilities to reduce errors. ShipHero also has:
- Order tracking
- Label printing
- Automation rules (AR)
- Automation rules and Smart warehouse routing
- Cycle counting
- Kitting
- Logs and reports
- Guided pick routes
- Automatic batch creation
- BulkShip
- And so much more!
Stay in Front with Backend Support
If you’re looking for the easiest and most efficient way to grow your eCommerce business, even in uncertain times, we invite you to take advantage of all ShipHero has to offer. You can find a way to stay steady even as the business landscape changes, and often the easiest way to do that is to lean on your partners with superpowers.
Schedule a meeting today with our experts to learn more about our WMS software built for ecommerce brands & 3PLs looking to run their best warehouse and how ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.
Click HERE to Schedule a Meeting Today
Aaron Rubin, Founder & CEO
ShipHero
About the author: Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.
Follow Aaron on Twitter & LinkedIn.
Aug 27, 2021 | Blog, Fulfillment, Warehouse Management Software
By: Aaron Rubin, Founder & CEO of ShipHero
As much as you might wish to hold off discussing the holiday shopping season until the Halloween candy bowl is empty, as eCommerce retailers, you just don’t have that luxury. As evidenced by the sometimes crazy, always unpredictable season of holiday 2020, 2021 doesn’t appear to be any less wacky than its older sibling.
As an eCommerce retailer, you’ve probably struggled with this new post-pandemic norm, especially as it has seesawed between optimism (economically and otherwise) and despair. With the Delta variant inspiring statewide lockdowns once more, entering this high-volume season has come with additional questions, many that appear to already be answered.
Anxiety is only diminished by being prepared, so, let’s get prepared. Below are some of the key lessons eCommerce retailers, warehouse managers and fulfillment teams learned during 2020 and how ShipHero imagines they’ll be applied in 2021.
Start Shopping Early
The proliferation of online shopping 2020 made the novelty of historical mainstays, like Black Friday deals and Cyber Monday promotions, less enticing. Last year, many shoppers couldn’t even go to a store if they wanted to; in 2021, while that option may exist, all evidence suggests that online eCommerce, across categories and industries will remain strong.
In 2020, eCommerce grew by over 32% year over year, and was up by 31% in Q1 2021, according to reporting by Digital Commerce 360. There is no evidence these numbers will be on the downswing anytime soon.
However, there is an indication that a trend that gained steam in 2020 will continue to expand in 2021, click and collect, otherwise known as buy online, pick up in store (BOPIS). The prevailing wisdom is that this allows shoppers to enjoy the instant gratification of shopping in-store without incurring the risk of contracting COVID (or standing in line, or fighting traffic or juggling a toddler, a stroller and a handful of shopping bags).
Supply Chain Disruptions are Year-Round
While it was hoped that the delivery delays and empty shelves that were seen in 2020 (and 2021 if we’re being honest), would be a thing of the past, facts are that these types of disruptions will continue to affect the supply chain from manufacturing to distribution to retail for quite a while. Manufacturers have been unable to increase their output back to pre-pandemic levels and even if materials are ready to ship, there have been issues finding truck drivers (a chronic issue to be sure, but put into starker relief by the rise in demand for shipped goods).
What does this really mean for eCommerce? It means that consumers will continue to push buy online pickup in store options to ensure that they can physically get the product they want in time for gift-giving or holiday entertaining.
Settle In – eCommerce is Here to Stay
There is no doubt that the one key takeaway from Holiday Season 2020 is that consumers will continue to consume, even if they can’t leave their homes. While the rise of eCommerce isn’t new, recent behavior indicates that a variety of shoppers, even those not typically known to shop online (i.e. older adults), have adopted the switch to eCommerce. While the most recent information shows growth for in-store sales, there is uncertainty regarding the Delta variant and how that might impact in-person sales going forward.
The moral of this story is retailers shouldn’t scrap their direct-to-consumer (DTC) fulfillment or eCommerce operations that were brought online throughout 2020. The EY Future Consumer Index released in May 2021, showed that 80% of consumers are changing the way they shop – including 43% who stated they now shop online more frequently for items they had previously purchased in-store.
More Lessons to Learn
As Holiday season 2021 truly takes shape we will no doubt see even more changes to how consumers shop, how eCommerce retailers meet their needs and how businesses are staying agile in order to better understand and satisfy their consumer base.
ShipHero is excited to see what this holiday season brings and how we can better help our clients weather these sometimes disruptive, oftentimes invigorating situations. We look forward to working with our current partners and clients to help make Holiday 2021 better than ever, whether through solutions, support or superpowers. We will be posting helpful tips throughout peak season HERE, so be sure to check back frequently!
Schedule a meeting today with our experts to learn more about our WMS software built for ecommerce brands & 3PLs looking to run their best warehouse and how ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.
Click HERE to Schedule a Meeting Today
Aaron Rubin, Founder & CEO
ShipHero
About the author: Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.
Follow Aaron on Twitter & LinkedIn.
Nov 4, 2022 | Blog, Fulfillment
The COVID-19 pandemic, combined with numerous geopolitical factors, has resulted in major disruptions to the supply chain in recent years. In particular, US companies that rely on China for manufacturing have suffered issues related to frequent lockdowns. In light of these problems, the country is reconsidering its traditional approaches to manufacturing and logistics, and businesses need to stay abreast of the latest laws and policies if they hope to stay competitive. Read on to learn how retailers are future-proofing their supply chain in light of US manufacturing reshoring.
Is US Manufacturing Coming Back?
Manufacturing in the US vs overseas has been a topic of debate for years. However, recent legislation is causing many businesses to reassess their current retail expansion strategies. In February of this year, the U.S. House of Representatives passed the America COMPETES Act of 2022. Along with increasing the competitiveness of American companies, the bill aims to improve supply chains and reduce the shortages that have become common in recent years.
In light of US manufacturing reshoring, companies are asking themselves whether they’re properly positioned to compete for available loans and subsidies. Making changes to your supply chain now could better help you benefit from the new legislation while future-proofing your business against shortages and disruptions down the line. However, not all companies are poised to make the change.
Benefits of US Manufacturing Reshoring
Recent events have left retailers feeling helpless about supply chain issues. However, making the switch to domestic manufacturers can go a long way toward guaranteeing your business a bright future. Here are some ways in which manufacturing goods in the US can help you control your supply chain destiny moving forward.
Save Time on Production
Manufacturing products overseas increases costs along with the time it takes your goods to reach consumers. Not only does moving this task closer mean customers receive purchases faster, improving your service ratings, but the entire sales process is also accelerated. As a result, your company is more agile, and money stays in your pocket.
Save Money on Shipping
It’s no secret that shipping is a significant cost in the eCommerce world. When you manufacture goods closer to home, you spend less money shipping products to customers and shipping supplies overseas. This is particularly important in an emergency, when you may need to air ship items out on a faster timetable.
Enjoy More Control
It’s hard to control what’s happening in your manufacturing plants if they’re located thousands of miles away from your team. One of the benefits of domestic manufacturing is that it gives business owners the opportunity to ensure goods meet their high standards and specifications. In the long run, using lower quality items can cause you to spend more on quality checks, repairs, and even processing returns.
Reduce Errors
Errors are all too common in the supply chain. However, increasing the length of a product’s journey from manufacturer to customer also raises the number of opportunities for mistakes to occur. By shortening that chain, you can reduce the odds of your product being damaged, lost, or even stolen in transit.
As your eCommerce business grows, it can be hard to keep up with your company’s logistics needs. Not only do you have to get goods out the door on time, but you also have to manage reverse logistics for products coming back into your warehouse. By investing in a third-party fulfillment service, you can take the first step toward optimizing your logistics and putting your business in the best position to benefit from US manufacturing reshoring.
To find out more about ShipHero’s fully outsourced fulfillment solution, talk to one of our Fulfillment Experts today.
Maggie M. Barnett, Esq. COO of ShipHero
ShipHero
About the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.
Follow Maggie on Twitter & LinkedIn.
Nov 11, 2021 | Blog, News & Updates
By: Aaron Rubin, Founder & CEO of ShipHero
Since we started, ShipHero has paid close attention to our clients’ wants and needs which has led to often highly positive reviews on third-party sites like G2, Shopify, Trustpilot and Capterra. We take these reviews seriously and look to them not only for pats on the back, but to learn and grow from the feedback our clients take the time to provide.
This fall, we’re honored to say ShipHero has been ranked #1 in the G2 Momentum Grid® Report for Shipping Software. This is a huge achievement, and to be ranked #1 by G2, the world’s largest platform for software reviews makes this award even better.
Building Momentum
It’s no secret that ShipHero has been building momentum in the past 12-18 months. You have to keep growing or you die. To be the Leader in the Momentum category for Shipping Software means we outpaced our competitors in areas like web growth, social growth and employee growth. We beat out some of our staunchest rivals, including ShipStation and FreightPOP in all of these areas.
The Momentum Grid® Report for Shipping named ShipHero as the highest-ranking shipping software platform in three areas: Momentum Score, Satisfaction Score, and Momentum Grid Score. Only three shipping software providers qualified as a Momentum Leader, with ShipHero ranking number one.
Customer Satisfaction
We were named a leader in the Shipping Software category as well. This ranking is based on two things:
- High Customer Satisfaction Rating
- Large Market Presence
We have always stated that our Support Team is key to our business. In fact, we have two times as many employees for our Onboarding Team as our Sales Team. We let others talk; at ShipHero, our goal is to do.
As a result, 95% of ShipHero users rated their customer satisfaction 4 out 5 stars, making ShipHero one of the top 5 shipping software companies based on customer satisfaction. G2 ranked a total of eighteen shipping software providers in its Fall 2021 report. It’s also important to note that 88% of our current customers would recommend us to other eCommerce companies in need of powerful shipping software.
Onward and Upward
These rankings mean a lot to us, because they prove that our client-first approach, our commitment to always doing things the right way, and our belief that our software is the best around are well-founded. We’d also like to note that our ratings on similar review sites range from 4.8 to 4.9 out of 5 stars. It’s validating to know we’re doing a lot of things right and better than our competitors.
If you’re looking for powerful shipping and warehouse software, ShipHero has the tools and processes you need to bring order to your warehouse chaos. Our software runs in our 5 owned and operated warehouses across the United States because it works. If you need more proof, check out the details of the G2 Momentum Grid® Report for Shipping Software, Fall 2021 HERE.
Schedule a meeting today with our experts to learn more about our warehouse management software built for ecommerce brands & 3PLs looking to run their best warehouse and how ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.
Click HERE to Schedule a Meeting Today
Aaron Rubin, Founder & CEO
ShipHero
About the author: Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.
Follow Aaron on Twitter & LinkedIn.
Jan 20, 2023 | 3PL Warehouse Management, Blog, Fulfillment
If you’re about to take your eCommerce business to the next level, selecting the right 3PL (Third-Party Logistics) partner is an essential success factor. Not only do they help manage your day-to-day operations and fulfillment but having a reliable 3PL can also streamline customer service, reduce costs, and drive growth. We’ll outline key considerations so you can confidently choose a 3PL that meets all your unique needs!
3PL Partner Meaning
3PLs are the real MVPs of eCommerce. By leveraging 3PLs, merchants can offload a sizable portion of their supply chain management and never worry about fulfilling orders on time. With 3PLs handling everything from warehousing to order fulfillment and shipping coordination to retail distribution, exchanges, and returns, merchants can sit back and let their 3PL do all the heavy lifting. In the end, 3PL partners mean more time for merchants to focus on other areas of their business rather than managing their own warehouses or logistics.
How to Choose a 3PL Provider
3PL has revolutionized eCommerce, allowing businesses to choose the right 3PL partner and focus on maximizing sales rather than worrying about supply chain management. If you’re considering a 3PL partner for your business, be sure to weigh these factors on how to choose a 3PL provider that’s right for you!
Flexible and Feature-Rich Integrations
When you’re on the hunt for a 3PL, how do you decide which provider is the right fit? Capability is key: if your third-party provider doesn’t have the capacity and expertise to cover all your bases, from fulfillment services and reverse logistics to subscription box solutions, you may be in for a bumpy ride. Keep an eye peeled for providers offering flexibility and feature-rich integrations with your eCommerce platform – that way, as consumer demand continues to skyrocket, you can rest assured knowing you’ve picked a partner able to roll with the punches. With capability and scalability in spades, there won’t be any supply chain kinks that they can’t help you iron out!
Adapting to a Changing Market
When it comes to stability in the logistics industry, you deserve the best. That’s why it pays to look for a 3PL with a track record of adapting to a changing market – ensuring your business that potential innovations won’t rock their stability down the line. Plus, multiple locations allowing for shorter shipping times and increased national reach is a bonus – so you can have confidence that your supply chain needs are taken care of! An esteemed reputation for providing top-notch service is worth considering when it comes to peace of mind.
Communication and Trust
How do you ensure your 3PL has the best reputation around? Find a partner that knows the importance of making connections! It’s not just about happy customers – it’s about happy vendors, carriers, and employees. A great 3PL will take the time to understand your business needs, so communication is key here – make sure they take their engagement levels seriously and bring in their expertise. With a compatible culture and shared values, you can be sure they’ll exceed expectations every step of the way.
Safety First
When it comes to safety, what you should look for in a 3PL is the same thing you’d do when checking the brakes on a cart: check twice and confirm. Spot-check that your 3PL has the most up-to-date PCI, FDA, and DEA certifications and a HAZMAT Shipping Certification. After all, safety first!
Top-Tier Customer Experiences
With a third-party logistics provider, customer service and attention to detail often make or break the relationship. The good news is that experienced 3PLs will rise to the occasion to provide business solutions that leave you nodding your head in approval, like how easy it is to calculate savings and track delivery times. Plus, with omnichannel retail taking over the market, you’ll want to find a partner that knows how to navigate through these complexities and provide top-tier customer experiences. Look for someone with an impressive track record, a reusable approach, and expertise in handling similar operations.
Scale Without Breaking a Sweat
If you’re feeling cramped and think it might be time to upgrade your operations, outsourcing is an ideal option. You only need the perfect third-party logistics provider who can make scaling up a breeze. Your provider can help you address peak demand without investing in physical infrastructure and personnel. Don’t forget to ask them one crucial question: “What’s the maximum amount of scalability you offer?” That way, you’ll know just how easily they can pick, pack, and ship your goods should demand suddenly skyrocket.
Customized Solutions
Third-party logistics can help your business stand out by providing customized solutions tailored to your unique needs. Each provider will offer a unique blend of software integrations, postponement strategies, and tailored production techniques – so make sure you work with an experienced 3PL who can leverage these things. Once you kick off the process, you’ll be able to tap into cost savings while still providing excellent service.
Accuracy is Everything
When it comes to 3PL providers, there’s no room for inaccuracy. If your 3PL can’t keep its inventory and orders accurate, you’re in for a world of customer disappointment and not-so-fun losses. Make sure the 3PL partner you pick employs a robust Warehouse Management System that keeps order and inventory accuracy levels high. It’s worth all the effort to find the right provider because, in this business, accuracy is everything!
Respond Quickly and Effectively
Responding quickly and effectively when issues come up is a key factor of success for any company or individual. It can be the difference between a smooth-running operation and one that consistently trips up on large and small snags. Since no one can predict the future, understanding the importance of being responsive helps ensure that whatever comes your way is addressed in an efficient and timely fashion. Don’t leave your customers hanging – make responsiveness a priority! After all, how would you feel if you were constantly waiting around for answers?
Enterprise-Level Technology
In this ever-changing technological era, how do you choose the right 3PL provider for your business? Well, it’s simple: get yourself one that provides enterprise-level tech. Nothing says ‘sophistication’ quite like having a streamlined order-to-delivery process – and that’s exactly what advanced technology solutions can give you. And while you might not require such complex systems now, who knows how future-proof you’ll want your business to be in the near future? So don’t take any risks – ensure your 3PL has robust technology from the get-go!
How Much is a 3PL?
You don’t have to worry about how much a 3PL costs; in fact – it could save you money! Bulk ordering from the same vendor can save your bottom line with discounted rates. And who knows, if you’re persuasive enough, you might even command better terms for yourself. You won’t need to invest in warehousing and haulage tech, labor costs, and the like – 3PLs can do everything for you. That means no more spending money on expensive mistakes and worrying about how to handle logistics without help.
Powering the Best 3PLs in the Business
Taking your eCommerce business to the next level is no small feat and choosing your 3PL partner can be a make-or-break factor. Your 3PL can help you manage operations, streamline customer service, reduce costs, and drive growth, but how do you know they’re right for you? Well, that’s where due diligence comes in. Weigh out all the options mentioned in this blog, and don’t settle until you find one with enough experience and savvy to fuel your eCommerce rocket ship. When it comes to WMS, ShipHero has the goods. So, if ShipHero WMS powers your 3PL, rest assured that your business will be on its way to success in no time!
So, there you have it! If you want to learn more about all things 3PL, check out our guide here, which dives deeper into this fascinating world! These are just a few reasons why choosing the right 3PL is essential to your business success.
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About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With thousands of brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.
Stay informed about everything in third-party logistics by following ShipHero on LinkedIn and subscribing to our newest blogs and updates.
Click HERE to Schedule a Meeting.
