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

Jun 9, 2023 | Blog, Warehouse Management Software

ShipHero vs. Linnworks: Which Should I Choose?

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

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

ShipHero Overview

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

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

Pros of ShipHero:

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

Bottom Line

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

Linnworks Overview

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

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

Pros of Linnworks:

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

Bottom Line

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

ShipHero vs. Linnworks

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

Location and Market Focus:

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

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

Warehouse Management Focus:

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

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

Integration Ecosystem:

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

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

Customer Support and Resources:

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

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

ShipHero: The Powerhouse of Warehouse Management

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

Who Should Use ShipHero?

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

Bottom Line:

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

Linnworks: The Challenger in Warehouse Management

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

Who Should Use Linnworks?

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

Bottom Line

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

Key Takeaways

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

ShipHero vs. Linnworks FAQs

Does Linnworks offer free trials?

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

What is ShipHero best for?

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

Does Linnworks offer eCommerce management?

Yes, Linnworks offers eCommerce management.

How to Select the Right Warehouse

Dec 9, 2022 | Blog

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

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

Choosing a Warehouse Location

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

Where Are Your Customers?

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

Are You Getting Value For Your Money?

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

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

What Are the Utility Costs?

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

What is the Structure and Layout of the Building?

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

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

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

What is the Workforce Availability in the Area?

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

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

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

What are Some Local Environment Factors?

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

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

Factors to Consider When Selecting a Warehouse

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

Special Features

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

Technology

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

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

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

Flexibility

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

Pick Your Warehouse Like You’d Pick a Date

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

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For More Information About ShipHero

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

Click HERE to Schedule a Meeting with Our Sales Team.

Fulfillment & eCommerce Software For Your Business When Using SAP

Dec 1, 2022 | Blog

What is SAP?

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

How Does the SAP Fulfillment Process Work?

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

What Does an Order Fulfillment Provider Do?

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

What Are the Benefits of Using an Order Fulfillment Provider?

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

Check out ShipHero’s fulfillment services!

Factors to Consider While Selecting an Order Fulfillment Partner for SAP

Order Fulfillment Speed

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

Storage and Fulfillment Fees

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

Pricing

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

Returns Management

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

eCommerce Platform Integration

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

Ease of Use

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

Additional Software For Your eCommerce Business

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

Best SAP Fulfillment & Software Integrations

1. ShipHero

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

Pros

Fully outsourced fulfillment solution
eCommerce Integration
High quality customer support

Cons

No QBO integration (anticipated in 2023)

Pricing

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

Check out ShipHero’s fulfillment services!

2. Zoho Inventory

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

Pros

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

Cons

Focused on US businesses only

Pricing

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

3. DiCentral

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

Pros

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

Cons

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

Pricing

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

4. Procurify

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

Pros

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

Cons

Not many advanced filtering features
Reports have low customization options

Pricing

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

5. Prodsmart

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

Pros

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

Cons

Some steps get repeated through the process

Pricing

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

Check out ShipHero’s fulfillment services!

6. Sana Commerce

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

Pros

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

Cons

Lack of reporting and analytics

Pricing

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

7. Pepperi

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

Pros

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

Cons

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

Pricing

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

8. Tradogram

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

Pros

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

Cons

Limited reporting capabilities

Pricing

No contract required
Offers basic, premium, and enterprise packages

9. inSitu Sales

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

Pros

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

Cons

Works best if you are a wholesaler

Pricing

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

10. k-eCommerce

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

Pros

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

Cons

Slow support response to program bugs

Pricing

Can request a quote on the website

Final Thoughts

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

Order Fulfillment for SAP FAQs

What Is SAP Order Fulfillment?

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

What Is the Fulfillment Process in SAP?

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

How Can I Improve My Order Fulfillment?

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

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

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

How to Stay on Top of Warehouse Storage and Organization

Dec 9, 2022 | Blog

With online shopping continuing to grow in popularity, demand has never been higher for fast and efficient fulfillment services. As a fulfillment warehouse, you need to be able to ship products as quickly and accurately as possible.

That’s where warehouse storage and organization come in. Nothing can kill productivity faster than a disorganized warehouse, so let’s break down the best ways to keep your operation running smoothly.

Why is an Organized Warehouse Essential for Fulfillment?

There are a few problems you can encounter when your warehouse isn’t organized or running properly, such as:

Wasted Time – If workers have to walk back and forth to pick items for shipments, those seconds and minutes can add up. Even just 15 minutes per employee for a 50-person warehouse could lead to 3,000 minutes lost in a year.
More Returns and Refunds – Mis-picked orders can lead to dissatisfied customers, meaning they’re more likely to return their items. Unfortunately, putting these products back on the shelves is more wasted time for your staff.
Inaccurate Inventory Counts – If your inventory is not organized properly, you can order more products than you need or delay ordering because you think you have more than you do. Either way, such inefficiencies can cost you dearly in the long run.

Overall, every piece of your warehouse is like a cog in a well-oiled machine. One faulty part could cause a chain reaction that could lead to major headaches and higher operating costs.

Top Five Ways to Keep Your Warehouse Organized

Because warehouse organization and storage are so critical for success, let’s look at five ways you can improve your operational efficiency. Best of all, you can combine strategies for even more benefits that lead to more clients, happier customers, and fewer returns.

Invest in High-Tech Solutions

Fortunately, we’re living in a golden age of technology, so there are multiple options available, including:

RFID Tags – These tags make it easier for pickers and inventory managers to stay up-to-date with production levels. Tags can be on bins or individual items, depending on your needs. As workers scan these tags, your inventory management system updates automatically.
Worker Tracking Software – Programs can keep track of individual employees and how they move throughout a given shift. If you notice a lot of time spent going back and forth, you can figure out what’s causing that extra wasted time and fix it accordingly.
Order Tracking – As items move in and out of your warehouse, you should know details like where they came from, how long they stayed in the warehouse, how they were shipped, and their final destination. Warehouse management software allows you to track inventory in real time so you’re never out of the loop.

Review Your Warehouse Layout

So much time is wasted with inefficient picking methods. For example, let’s say you have multiple types of the same product. If you don’t store these items together, workers have to go searching for each variety.

As a general rule, you want to place similar items in the same area and rank products based on seller info. Best-selling items should stick together while infrequent purchases can get moved to an area with less-heavy traffic.

If workers also have to sign in and out or submit documentation, you can place this station next to the fulfillment center. This way, employees can finish an order and fill out the paperwork without too much downtime in between.

Create a Waste Management System

A dirty or disheveled warehouse is an inefficient warehouse. Not only can empty boxes and other items pose a safety threat, but it’s much harder to verify your inventory levels.

So, it’s better to come up with a waste management system so workers know where to put packaging and other items. You can also have a picking system so individuals empty a current supply box before opening another one.

Focus on Safety

Just like a dirty warehouse, an unsafe warehouse is also highly inefficient. Usually, unsafe environments occur when the company cuts corners and doesn’t take its employee’s health seriously.

Safety measures can include apparel, best practices for dangerous items, clear marking for forklift paths, and more. Overall, the more you invest in extra-safe measures, the more likely your warehouse will stay safe and efficient.

Keep Warehouse Staff Trained

Employee morale and turnover are two of the biggest threats to the fulfillment industry. eCommerce giants like Apple and Amazon are struggling to retain workers, thanks to long hours, grueling working conditions, and more.

Maintaining a regular training schedule can help keep your employees sharp and motivated. Not only can you cover existing problems and risk factors, but you can also look at potential future situations.

Even better, staff training can be fun and engaging, further bringing everyone together when they’re on the clock.

By utilizing these top five tips, you can improve your operational efficiency greatly, leading to a higher level of client satisfaction while also creating a more cohesive environment for your staff.

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For More Information About ShipHero

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

Click HERE to Schedule a Meeting with Our Sales Team.

WMS Logistics: Streamlining Warehouse Operations

Apr 2, 2024 | Blog, Warehouse Management Software, Warehouse Operations

In today’s fast-paced business world, efficiency is key. When it comes to warehouse operations, businesses want ways to improve productivity and reduce costs. Warehouse Management Systems (WMS) logistics is good for both.

In this article, we will explore what WMS logistics is all about, its key features and processes, as well as the benefits and challenges of implementing a WMS to streamline your warehouse operations.

What is Warehouse Management Systems (WMS) Logistics?

Warehouse Management Systems (WMS) logistics refers to the software and processes used to manage and optimize warehouse operations. It involves a combination of technology, strategies, and tools designed to support the day-to-day activities of a warehouse.

From tracking inventory and managing orders to optimizing space utilization and improving shipping efficiency, WMS logistics provides a holistic approach to warehouse management.

Effective warehouse management is crucial for businesses of all sizes and industries. With the increasing complexity of supply chains and the growing demand for faster and more accurate order fulfillment, organizations are turning to WMS logistics to streamline their warehouse operations and gain a competitive edge in the market.

A key component of WMS logistics is inventory management. A WMS system allows warehouse managers to accurately track and control inventory levels, ensuring that the right products are available at the right time. This helps prevent stockouts and overstock situations, and it also improves demand forecasting and planning.

By having real-time visibility into inventory levels, warehouse managers can make informed decisions regarding purchasing, storage, and order fulfillment.

In addition to inventory management, WMS logistics also encompasses order management.

With a WMS system in place, organizations can efficiently process and fulfill customer orders. The system automates order processing, which reduces the chance of errors and delays. It also enables efficient order picking and packing, optimizing the use of warehouse space and minimizing the time required to fulfill orders. All this results in faster order fulfillment and improved customer satisfaction.

Another aspect of WMS logistics is space utilization optimization.

Warehouse space is a valuable asset, and effective space management is essential for maximizing storage capacity and operational efficiency. A WMS system provides tools and features to optimize your space, like slotting algorithms that determine the most efficient location for each product based on factors like demand, size, and weight.

By optimizing space utilization, warehouses can store more products, reduce handling costs, and improve overall productivity.

Furthermore, WMS logistics plays a crucial role in improving shipping efficiency. With a WMS system, organizations can streamline the shipping process by automating tasks like carrier selection, label printing, and documentation. This saves time, reduces errors, and improves the accuracy of shipments.

A WMS system can integrate with transportation management systems (TMS) to provide end-to-end visibility and control over the entire supply chain, from warehouse to customer.

In conclusion, Warehouse Management Systems (WMS) logistics is a comprehensive approach to warehouse management that encompasses various processes and technologies. By implementing a WMS system, organizations can optimize inventory management, streamline order processing, maximize space utilization, and improve shipping efficiency.

With the increasing complexity and competitiveness of the business landscape, WMS logistics has become a necessity for organizations looking to stay ahead in the market.

While we delve into the intricacies of WMS logistics here, it’s also valuable to understand how these systems specifically benefit third-party logistics providers. For an in-depth look at 3PL-specific WMS solutions and how they cater to the unique needs of 3PL operations, check out our dedicated article.

Understanding Warehouse Management Systems (WMS)

At its core, a WMS is a software system that helps businesses automate and streamline their warehouse operations. It acts as a central hub that connects various aspects of warehouse management, such as inventory control, order fulfillment, and shipping.

By leveraging real-time data and analytics, a WMS enables businesses to make informed decisions and optimize their warehouse processes.

There are several key modules and processes that make up a WMS:

Inventory management: A WMS provides real-time visibility into your inventory, allowing you to track stock levels, monitor product movement, and manage replenishment.
Order management: With a WMS, you can efficiently process and fulfill customer orders, ensuring timely delivery and reducing order errors.
Picking and packing: The WMS optimizes the picking and packing process, suggesting the most efficient routes and methods to minimize labor and time.
Shipping and tracking: A WMS streamlines the shipping process by generating shipping labels, coordinating carrier pickups, and providing real-time tracking information to customers.

Key Features and Processes of a WMS

A WMS comes with a range of features and processes that help streamline warehouse operations. Some key features include:

Real-time data: A WMS provides up-to-date information on inventory levels, orders, and shipments, enabling businesses to make accurate decisions.
Barcode scanning: By using barcode scanning technology, a WMS eliminates manual data entry and reduces errors, improving overall efficiency.
RFID integration: A WMS enables automatic identification and tracking of inventory, increasing visibility and control.
Automated workflows: A WMS automates repetitive tasks such as order processing and inventory replenishment, freeing up time for more strategic activities.

These features, when combined with efficient processes, can significantly improve warehouse operations. For example, implementing a wave picking strategy, where multiple orders are picked at once, can reduce travel time and increase productivity.

Benefits of Implementing a WMS

The implementation of a WMS brings a wide array of benefits to warehouse operations. Let’s take a closer look at some key advantages:

Inventory accuracy: With a WMS, you can achieve higher levels of inventory accuracy, reducing stockouts, overstock situations, and order errors.
Increased productivity: By automating manual tasks and optimizing warehouse processes, a WMS can significantly improve productivity and throughput.
Better customer service: With real-time inventory information and efficient order processing, a WMS enables businesses to provide faster and more accurate customer service.
Cost savings: Efficient use of labor, better use of space, and fewer errors all contribute to cost savings for businesses using a WMS.

These benefits improve the day-to-day operations of a warehouse and positively impact the overall bottom line of a business.

Managing a multi-client warehouse requires a WMS that’s built to handle the complexity and variety of needs. Dive deeper into the key features of WMS for 3PLs and multi-client fulfillment, providing further context on how these systems enhance operational efficiency.

Challenges and Limitations of Traditional Warehouses

While traditional warehouses have served businesses well for many years, they come with their own set of challenges and limitations. Some of the common challenges include:

Lack of visibility: Traditional warehouses often struggle with visibility into inventory, leading to inefficiencies in order fulfillment and replenishment.
Manual processes: Paper-based processes and manual data entry can introduce errors and slow down warehouse operations.
Inaccurate inventory levels: Without real-time tracking, it is challenging to maintain accurate inventory levels, leading to stockouts or overstock situations.
Poor space utilization: Traditional warehouses often have suboptimal space utilization, resulting in wasted storage space and inefficient picking processes.

By implementing a WMS, businesses can overcome these challenges and unlock the true potential of their warehouse operations.

The Future of WMS and Logistics

The future of WMS and logistics is exciting, with advancements in technology and evolving customer expectations shaping the industry. Some of the trends and developments to watch out for include:

Integration with eCommerce platforms: As eCommerce continues to grow, WMS will integrate seamlessly with platforms like Shopify and Amazon to streamline the order fulfillment process.
Automation and robotics: Robotics and automation technologies will play a significant role in warehouse operations, improving productivity and reducing labor costs. For those new to warehouse management systems or seeking to understand their basic functionality, ‘WMS for Dummies’ offers a straightforward explanation. Visit our guide on WMS basics to get acquainted with how these systems can transform your logistics operations from the ground up.
Analytics and AI: Advanced analytics and artificial intelligence will help businesses find valuable insights from warehouse data.
IoT and real-time tracking: The Internet of Things (IoT) will enable real-time tracking of inventory and assets, providing unparalleled visibility and control.

As technology continues to advance, businesses that embrace these trends and adopt innovative WMS solutions will gain a competitive edge in the market.

Choosing the Right WMS for Your Business

Several considerations should go into choosing the right WMS for your business:

Size and complexity of your warehouse: Assess the size of your warehouse and the complexity of your operations to determine the features and functionality required.
Integration capabilities: Ensure that the WMS has seamless integration capabilities with your existing systems, such as ERP and eCommerce platforms.
Scalability: Look for a WMS that can scale with your business, accommodating future growth and changes in your warehouse operations.
User-friendly interface: A user-friendly interface is crucial for easy adoption and training of your warehouse staff.

By carefully evaluating these factors and considering your specific business needs, you can select the best WMS solution that aligns with your warehouse operations.

Key Takeaways

Warehouse Management Systems (WMS) logistics play a vital role in streamlining warehouse operations. By leveraging technology and efficient processes, businesses can achieve higher levels of productivity, accuracy, and customer service. WMS provides real-time data, automates workflows, and optimizes inventory management.

Challenges of traditional warehouses like lack of visibility can be mitigated with a WMS. And as technology continues to advance, the future of WMS and logistics holds tremendous opportunities for businesses to stay competitive.

By choosing the right WMS for your business, you can unlock the full potential of your warehouse operations.

Frequently Asked Questions

What is WMS logistics?

WMS logistics refers to the software and processes used to manage and optimize warehouse operations. It involves technology, strategies, and tools designed to support day-to-day warehouse activities.

What are the key features of a WMS?

Some key features of a WMS include real-time data, barcode scanning, RFID integration, and automated workflows.

What are the benefits of implementing a WMS?

Implementing a WMS can lead to benefits such as inventory accuracy, increased productivity, better customer service, and cost savings.

What are the challenges of traditional warehouses?

Some challenges of traditional warehouses include lack of visibility, manual processes, inaccurate inventory levels, and poor space utilization.

What does the future hold for WMS and logistics?

The future of WMS and logistics involves integration with eCommerce platforms, automation and robotics, analytics and AI, IoT and real-time tracking.

How do I choose the right WMS for my business?

Consider factors such as the size and complexity of your warehouse, integration capabilities, scalability, and user-friendly interface when choosing a WMS for your business.

Tips for Proactive Inventory Management

Oct 17, 2022 | Blog

Proactive inventory management is a vital part of running a successful eCommerce business. While managing inventory can be challenging, using a proactive rather than a reactive approach to inventory management may help to prevent problems such as inventory shortages, concerns about storage space and delayed fulfillment of orders.

When inventory isn’t effectively managed, clients may end up dissatisfied over out-of-stock items and the reputation of your company may be damaged. The best practice in inventory management is to be as proactive as possible.

Collect Inventory Control Data

Inventory control is the process of managing inventory levels in the warehouse and other locations. An effective inventory control system monitors the movement and storage of items and can help with forecasting and reordering. Effectively controlling inventory requires knowing what’s in stock and where it’s located while keeping items in inventory organized and in good condition.

Effective inventory management depends on knowing when to reorder products and how much to order to ensure that the right amount of inventory is on hand at the right location. To improve inventory control practices, start with collecting data on practices that involve your inventory from initial orders to shipping and receiving to restocking.

Identifying Inventory Control Problems

A good place to start working to identify inventory control problems is by reviewing past trends, particularly times when there was a problem with the amount of inventory on hand. Have you been scrambling to fill orders because of insufficient inventory? Or is unwanted inventory taking up valuable warehouse space?

Inventory that’s held too long has an increased risk of damage and keeping too much inventory ties up capital that could better be used elsewhere. All aspects of your stock must be tracked and managed, which includes tracking the quality of stock you receive from suppliers. How often is merchandise returned because it’s defective or broken?

Using Technology for Automatic Stock Control

Small businesses may use a spreadsheet as a manual inventory control technique but using manual processes to control inventory can be labor intensive and increases the risk of human error. Continuous advances in technology make stock management much simpler than it used to be, and automated systems can keep track of stock levels and can easily provide an accurate picture of inventory at multiple locations.

Review your current processes and identify tasks that can be automated. Stock management using automated systems and processes starts by assigning a unique identifier for each item known as an SKU (stock keeping unit). These unique identifiers make it easy to determine where the item is located and whether demand is higher for certain items or certain colors. Fast-moving and in-demand items are easily identified and time isn’t wasted trying to locate specific items.

Software to Improve Inventory Control

Inventory control software makes it easier to be proactive about tracking inventory as well as keeping track of packing and shipping information. Inventory costs can be kept under better control by using real-time updates on stock movements so that stock levels can be monitored automatically and alerts can be provided when stock is low and needs to be replenished.

Real-time tracking provides up-to-date information that can guide your business decisions. Leveraging the information provided by real-time metrics provides performance information that can help you stay ahead of your competitors.

Categorize Your Inventory

Look for ways to categorize your inventory based on demand. Are some items seasonal or in demand only at certain times? Your inventory can be categorized by groups such as profit margin and cost of storing it.

Collect data from all areas of operation, which includes shipping and receiving along with inventory being held on hand. Review the methods you’re currently using to categorize inventory and how effectively it’s working to meet demand. A good way to be proactive is to gain a clear understanding of the entire supply chain such as shipping times and results you can expect from receiving and shipping items. Consider errors that have been made and what changes could be made to reduce the possibility of making a similar mistake.

Optimizing Inventory Control

Having a proactive inventory management system in place means utilizing available technology and continually working to improve inventory control practices. Manual processes and outdated software can slow the growth of your business and lead to costly errors.

There are many factors involved in identifying and maintaining optimal stock levels. Understocking and overstocking both need to be avoided. Setting minimal stock levels can help prevent running out of items. Track items regularly to identify what’s highest and lowest in demand.

Proactive inventory management includes ensuring that inventory records are accurate. Plan on performing regular audits to identify inaccuracies, theft or damaged items. An inventory audit provides detailed information on the value of your inventory and can help to optimize inventory control and contribute to a more proactive way of managing inventory.

To find out more about ShipHero’s fully outsourced fulfillment solution, talk to one of our Fulfillment Experts today.

Click HERE to Schedule a Meeting with Our Sales Team.

About ShipHero

ShipHero is a US-based, leading solution provider in the fast growing eCommerce fulfillment space. ShipHero served over $5 billion of eCommerce orders in 2020 and is growing rapidly. ShipHero provides warehouse management software for brands that operate their own warehouses as well as outsourced fulfillment as a service from ShipHero owned and operated North American warehouses. Some notable customers include Universal Music Group, Glossier and Canadian Tire. ShipHero is a Shopify Plus partner and more than 10% of Shopify Plus stores globally use ShipHero.

Top 10 Warehouse Automation Technology Trends in 2022

Dec 1, 2022 | Blog

Many businesses these days already implement warehouse automation in various forms to keep up with customer demands and expectations. Warehouse automation tools help them deliver products faster, maximize warehouse space and reduce costs, among other benefits.

But what comes next after the current wave of warehouse automation? If you’re curious about what’s on the horizon for warehouse managers, read on to learn more.

What is Warehouse Automation Technology?

Warehouse automation technology encompasses all the tools and software used to automate warehouse operations. Companies often use warehouse automation technology to reduce labor-intensive work, reducing the occurrence of human error and avoiding costly mistakes. Automation also reduces total labor expenses, resulting in cost savings.

Warehouse automation doesn’t necessarily mean using robots or drones in your warehouse. It can be as simple as implementing a warehouse management system or automatic data capturing to assist in daily operations.

Some common examples of warehouse automation technology include:

Warehouse management systems
Robotic warehousing solutions
Inventory management software
Automatic data entry software

What are the Benefits of Warehouse Automation?

Some of the most important benefits of warehouse automation include cost savings, human error prevention and improved safety. Here’s a look at the benefits of warehouse automation:

Increase Warehouse Productivity

Warehouse automation software and tools take over manual tasks from human workers, meaning they can accomplish more work in less time. An example of how warehouse automation can improve productivity is when you implement goods-to-person (GTP) solutions.

GTP solutions typically use robots or machines to bring goods to warehouse workers for packing. These robots pick goods from shelves for your warehouse workers, so they don’t have to walk or ride forklifts from one end of the warehouse to another, saving them a lot of time.

Reduce Operational Costs

Implementing warehouse automation is often a major financial commitment, but the long-term cost savings can be considerable. Automating warehouse processes means you can reduce labor costs because you won’t need as many warehouse workers. Additionally, you’re less likely to suffer product damage or inventory loss due to human error when automating picking and packing processes.

Prevent Human Error

Manual processes are often prone to human error. While small mistakes won’t hurt your company much, big mistakes can cause significant shipping delays or major product damage, hurting your credibility and customer satisfaction.

Automating warehouse processes reduces human error by minimizing the role of warehouse workers in manual and repetitive tasks. For instance, automatic picking processes ensure your workers receive the right items to prepare for shipping.

Improve Workplace Safety

Warehouse operations are risky because workers often carry large items in high-traffic environments. An accident might mean people getting injured and hundreds of dollars in damaged goods.

Warehouse automation tools like GTP solutions reduce the risk of accidents by bringing the goods to the workers instead of the other way around. This way, there’s less foot traffic, reducing the likelihood of accidents.

Use More Warehouse Space

Your warehouse space is typically limited, so you need to use every bit of space to save on leasing or operational costs. Unfortunately, you can only stack your goods so high because your workers can’t pick products up safely when your shelves reach the ceiling.

Warehouse automation solutions like automated storage and retrieval systems (AS/RS) help you by providing a safe way to pick products from high shelves without having your workers leave the warehouse floor. This means you can stack your goods as high as you like and use every single bit of space without endangering your human staff.

Boost Customer Satisfaction

Warehousing isn’t directly linked to customers, but good warehouse operations ensure their satisfaction. Your staff needs to process goods quickly so you can ship them punctually. If your warehouse crew is slow in fulfilling orders, customers will receive their products behind schedule, leading to complaints.

Warehouse automation tools improve your warehousing efficiency and ensure everything is shipped on time. By building a reputation for punctual deliveries, you’ll get happier customers and secure their loyalty.

Types of Warehouse Automation Technology

Different warehouse automation tools do different things to improve your daily warehousing operations. Here are three common warehouse automation systems you can look into:

Warehouse Management Systems

Warehouse management systems (WMS) are complete software bundles that help you monitor and manage the entire warehousing process. They cover all aspects of your warehousing operations, which include inventory receiving, storing, picking, packing, shipping and return handling. Warehouse management systems also give you automatically generated reports to help in decision-making.

You can consider implementing a WMS if you’re looking to improve your overall warehousing operations.

Inventory Management Solutions

Inventory management solutions give real-time updates on your supply chain and warehouse’s product stock to ensure you can meet customer demands without overstocking. Inventory management solutions also help you fulfill customer expectations by forecasting high-demand seasons and reminding you to order more stock before you run out.

Warehouse Robotics Solutions

Warehouse robotics solutions come in forms such as automatic guided vehicles (AGVs), autonomous mobile robots (AMRs), collaborative robots (cobots) and more. The main objectives of implementing robotic solutions are reducing human error, increasing warehouse efficiency and preventing accidents by minimizing the human element in the warehouse.

Some examples of warehouse robotics implementation include:

Cobots that follow workers around the warehouse as mobile storage bins.
AGVs that replace manual forklifts to move products.
Automated storage and retrieval system (AS/RS) cranes that store goods in high shelves unreachable by human workers.

Top Warehouse Automation Technology Trends in 2022

All the technology we’ve mentioned in the article is just the tip of the iceberg. There are so many technological breakthroughs on the horizon, and each one has the potential to change the warehouse industry as we know it.

To help you prepare, we’ve compiled ten upcoming trends in warehouse automation you should keep an eye on:

1. Big Data and Predictive Analytics

Big data refers to large volumes of hard-to-manage data taken from sources like social media, transaction records and smart devices. These data volumes are often unstructured and tough to read, but they can provide so many insights that help your business identify upcoming trends and spot potential opportunities.

Big data goes hand-in-hand with predictive analytics. As the name implies, predictive analytics forecast upcoming events and situations by studying past data. For an eCommerce business, this might mean knowing which products will be popular and when they’ll be in demand.

2. Remote Warehouse Management

These days, you don’t even have to be on-site to manage a warehouse. Remote warehouse management gives you a real-time look into your daily warehousing operations and lets you make business decisions on the fly, no matter where you are. This is especially useful if your company runs multiple warehouses or distribution centers, meaning you don’t have to bounce around several locations just to ensure everything works.

3. Cloud-Based Warehouse Management Systems (WMS)

In the past, WMS providers installed warehouse management systems on cumbersome servers that take up space in your warehouse. Moreover, you had to arrange a vendor visit to get upgrades or fix problems.

Cloud-based WMS makes things much easier for modern warehouses and distribution centers. Instead of physical installations, you can access the WMS through the Internet. Your WMS vendor can also install updates and fix issues remotely without arranging a visit.

4. Machine Learning (ML) in Warehouse Labor Planning Systems

Machine learning is a field of artificial intelligence (AI) where computers can “learn” things through experience, much like humans. Labor planning in the warehouse is often complicated because there are many moving parts like worker availability, schedules, work zones and other elements.

Implementing machine learning in your labor planning systems allows it to learn by doing. As time passes, your autonomous planning system will know what to do and what not to do. Given enough time to learn, your warehouse labor planning system will be fully autonomous and save you a lot of effort because worker schedules are now AI-generated.

5. Mobile Robots Displacing Conveyors

Conveyor belts are one of the oldest warehouse automation tricks in the book. While they’re still viable today, they’re slowly being replaced by mobile robots because they can go places that conveyor belts can’t.

However, robots can still work together with conveyor belts. Some robots are designed to move items between conveyor belts, minimizing the role of human employees in transporting items across the warehouse. Reducing human interaction with the product decreases the likelihood of workplace accidents that cause injuries and product damage.

6. Blockchain Technology

Blockchains are permanent, irreversible ledgers that everyone can see. Implementing blockchain technology for recording warehousing transactions gives you the transparency necessary to avoid fraud and leaves an audit trail to ensure your warehouse complies with all local regulations.

7. Warehouse Drones

Unlike their robotic counterparts, warehouse drones aren’t big or strong enough to move products reliably. However, they’re great at capturing data by scanning barcodes on crates or boxes. A skilled operator can maneuver drones to high shelves and narrow aisles, ensuring every package in every nook and cranny of the warehouse is scanned

8. Internet of Things (IoT)

The core concept of IoT is a network consisting of multiple smart devices. In warehousing, IoT devices like sensors, RFID (radio frequency identification) tags and trackers monitor the movement of products to give you a constant real-time view of what’s happening in the warehouse.

By implementing IoT, you don’t have to do a physical check whenever you need information on a package or product in the warehouse.

9. Voice Assistants

Voice assistants in warehousing help employees navigate the warehouse to find the products they need. With voice navigation, the employee doesn’t have to constantly hold a device, so both hands are free and can focus on their picking job.

Additionally, voice assistants require the employee to listen closely to the directions, minimizing distracting conversations among coworkers.

10. Wearable Augmented Reality (AR)

Augmented reality in warehousing improves picking efficiency by showing employees how to navigate to the product and which box to take for packing. You can install AR technology on tablets, smartphones, or even wearable technology like AR smart glasses.

When the employee doesn’t know where to go, they can just pull their device up and get routed to the requested item for pickup.

Key Takeaways

Warehouse automation technologies improve day-to-day warehousing operations by increasing efficiency, reducing mistakes and minimizing the human element. You can fulfill more orders and ship quicker to secure customer loyalty by improving your warehouse operations.

Many warehouse automation options are available today, and even more technological advancements are coming. Following warehouse automation trends like big data, cloud-based WMS and robotics can help you stay ahead of the curve and learn which ones to implement in your company.

Warehouse Automation Technology FAQs

What are the new technologies in warehousing?

There’s a wide range of new technologies in warehousing. Some of the most prominent warehousing technology trends include, but are not limited to:

Augmented reality picking
Internet of Things integration
Warehouse robots and drones
Big data and predictive demand forecasting
Cloud-based warehouse management systems

Will warehouses be fully automated?

These days, warehousing technology trends toward fully-automated warehouses and fulfillment centers. If the trends keep up, warehouses can be self-sufficient without human floor workers.

What are the types of warehouse automation?

The most common types of warehouse automation are warehouse management systems, inventory management software and warehouse robotics solutions.

Using Just-in-Time Inventory Management for eCommerce

Oct 17, 2022 | Blog

One of the biggest challenges facing the owners of eCommerce businesses is managing inventory. If you don’t have an accurate picture of the inventory that’s in highest demand by your target audience, you may end up not having enough inventory to fulfill orders, or you could end up overstocking items that aren’t selling.

There are several different ways to approach inventory management. One approach that may be used to increase efficiency is known as a just-in-time inventory system, sometimes called JIT or JST Inventory.

What is a Just-in-Time Inventory System?

A just-in-time inventory system is an inventory management system in which goods are received from suppliers only when needed. Different businesses may have different ways of implementing this method, but the idea is that the production and shipping of products is based on actual orders. Raw materials for production arrive when production begins and not sooner. The goal is to eliminate waste and limit the amount of inventory on hand.

For an eCommerce business to be successful, client satisfaction has to be a top priority. Just-in-time inventory control helps to optimize inventory so that your company only has on hand what’s actually needed. This can help to improve your return on investment by reducing nonessential costs.

Benefits of Just in Time Inventory Control

There are several benefits of using JIT. Some benefits of using this method of inventory management include:

Less waste – Since this system revolves around client demand, there’s less waste involving unneeded items. When you only order what you need, you don’t end up with excessive unusable inventory. This allows manufacturers to quickly move on to production of different items if necessary.
Saves money – There’s a lower upfront investment since less money is spent unnecessarily on raw materials. Labor expenses may be lower when there’s less inventory to handle.
Reduced storage needs – Unwanted and unsold inventory doesn’t take up valuable warehouse storage space. This may eliminate the need for a large warehouse and can also reduce storage overhead costs such as rent and electricity.
Eliminates or reduces production delays – When only wanted items are being produced, there’s less chance your clients might be impacted by production delays.

Using this method can improve productivity and delivery times since the time and resources needed for order fulfillment aren’t being spent on unnecessary stock. Less inventory means less chance of items held in storage being damaged. It also means it’s less likely you will end up with stock nobody wants that has to be cleared at a lower price.

JIT can be especially beneficial to new businesses that don’t have a lot of cash available that would normally need to be tied up in inventory. This approach can help to reduce costs so it’s a good idea to use this method when you have limited warehouse space or limited staff to manage inventory or perform inventory audits.

Drawbacks to Just in Time Inventory

While there are many benefits to using the just-in-time system, there are a few possible drawbacks to keep in mind when choosing to use this method of inventory management. One risk that businesses take when they use just-in-time inventory control is that a disruption in the supply chain means there’s usually no backup stock to fill new orders. This could end up delaying production and delivery when clients place additional orders. This type of disruption means sales could come to a halt.

If orders for products are more than the amount forecasted, shortages can create delays in fulfilling orders. For just-in-time inventory to work, your business needs to be able to rely on timeliness and top performance from suppliers. There are no guarantees that suppliers can consistently deliver items promptly. Sourcing raw materials locally can help shorten the time it takes to receive materials.

Tracking and Organizing Inventory

Just-in-time processing requires accurate data to manage inventory, meaning that all inventory has to be carefully tracked and organized. It’s imperative that your eCommerce business accurately determines inventory forecasts.

An effective way to do this is by using real-time inventory tracking with SKUs, which are stock-keeping units. The technology behind SKUs makes it possible to track stock digitally. This can help you to be aware of what items are in the highest demand and when items need to be replenished.

Is Just-in-Time Inventory Management Right for Your Business?

Just-in-time inventory management is often a good choice for small businesses that need to limit the amount of money they invest in inventory upfront. With fewer items in inventory, the return on investment may be higher. Another benefit to keeping fewer items in inventory is improved quality control. With fewer items to manage, there’s a better chance of a lower rate of breakage and improved ability to find production errors.

A just-in-time system can cut costs and reduce waste but there’s little room for error or supply chain disruption. In order for a just-in-time system to run smoothly, it’s important to accurately forecast orders and track current stock using available real-time technology.

To find out more about ShipHero’s fully outsourced fulfillment solution, talk to one of our Fulfillment Experts today.

Click HERE to Schedule a Meeting with Our Sales Team.

About ShipHero

Understanding 3PL Service Agreement Templates

Aug 2, 2023 | Blog

The supply chain is so complex that even the biggest businesses outsource some of their processes to other companies. You must sign agreements with the manufacturers, vendors, suppliers, and logistics service providers to ensure that the service level agreements do what you want them to do. The provisions of these contracts vary according to the client’s market niche and the logistics services it needs.

What is a 3PL Service Agreement Template?

When a company hires another entity to provide logistics services for it, this is called third-party logistics, also known as 3PL. If you Google any topic related to logistics, you will find that most major companies in a variety of sectors use 3PL. In business, airtight contracts with lots of details are the surest way to avoid trouble. If you simply base your business relationship on a verbal agreement or vaguely written contract, you are asking for risk, conflict, legal disputes, and financial losses. Do not simply let a carrier start providing transportation, shipment, or delivery services for you without first signing a logistics contract.

A 3PL service agreement outlines the business relationship between your company (the client) and the company that will be providing logistics services for you. At minimum, this document should list the names and contact information of the parties (you and the logistic service provider) and the services the logistics service provider will provide. It should also contain clauses about when the agreement begins and ends, how much you will pay for the services, and the consequences if one of the parties does not fulfill its contractual obligations or is not in compliance with the terms of the contract.

In other words, a 3PL service agreement needs all the elements of business agreements. Therefore, downloading a PDF file of a 3PL service agreement template is a good place to start when drafting your agreement.

Drafting a Third-Party Logistics Agreement

No two business agreements are alike. The main limitation of using a downloadable 3PL logistics agreement template is that they are too generic. All business agreements must respect the law and serve as a basis for contract negotiations, but your 3PL logistics agreement should also include detailed definitions related to the specific activities in which the parties are agreeing to engage. For example, these documents should clearly identify the names and taxpayer ID numbers of the companies involved as well as the contact information of the employees or partners who are signing the agreement on behalf of the company.

Next, it is time to outline the main terms of the agreement. What will the service provider do for the client? How much must the client pay? Must the client provide the service provider with any equipment to fulfill its tasks?

The biggest failure of most do-it-yourself business agreements is their failure to address all the legal nuts and bolts. If contract templates contain these provisions at all, it is probably just a legal boilerplate that is not specific enough to protect you from liability in the event of a dispute or a breach of contract. For example, what is the deadline to give notice in writing if one party wants to terminate the contract early without paying a penalty? Which party is responsible for paying for the insurance that covers loss or damage to the client’s merchandise when it is in the custody of the carriers? The contract should also contain language about which state’s laws have jurisdiction to rule on lawsuits arising from the contract. Must the parties consent to arbitration in accordance with the provisions of the contract before they have the right to file a lawsuit?

3PL Service Agreement Template Sample Download

It is possible to find downloadable forms that you can use as a starting point for your agreement with a 3PL service provider. The details of the agreement will be different depending on the services you are outsourcing. For example, is the 3PL service provider warehousing your items in its own facility, or is it handling order fulfillment, inventory management, pick and pack in your company’s own warehouse? Is it tracking orders and reporting them to the client, or is it transporting shipments of freight directly to customers?

Key Terms in a 3PL Service Agreement

Your 3PL agreement should identify the parties to the agreement and specify when and how each party shall perform its duties. It should specify what changes to the agreement one party can do at its discretion, and which ones it can only do with the approval and consent of both parties, including but not limited to adding more parties to the contract or extending the term of the contract.

The 3PL service agreement should state the expectations about invoicing and payment. If one party loses its ability to continue the performance of its contractual responsibility, the contract should contain a reference to the first step each party should take. It should indicate which documentation is necessary to show receipt and approval of the contract. The dispute resolution portion of the contract is the most challenging to write.

Procurement Logistics

Procurement logistics is the phase of operations that deals with getting the materials you need to the right location. The supplies that clients might be procuring could be raw materials, parts to assemble in consumer goods, and even finished products to ship to consumers. The availability and cost of certain goods, especially raw materials, are sometimes outside the control of the parties to the contract. The contract should contain instructions for a system of notification and negotiation about the fluctuation of prices in response to the changing costs of materials.

Production Logistics

Production logistics deals with the aspects of projects that handle the production of goods and the processing of materials. You might wish to outsource this part of the project to facilities with a lot of specialized experience with these procedures. You can ensure that this part of the work meets safety standards when you outsource it to companies with the capabilities to produce goods at the volume, weight, sizes, and quantity that you need for reasonable rates. These companies will likely also have streamlined systems for pricing, tracking expenses, and collecting payments. You can simply trust that you will receive the products in the amount ordered and then pay the invoice and be sure that the workflow will proceed to the next stage smoothly.

Distribution Logistics

Distribution logistics deals with the manner in which the goods travel to the people all over the world who order them. In the interest of customer service, it is a good idea if you store your products in various warehouses. This requires the outsourcing of warehousing unless your company has enough resources to own and operate multiple warehouses.

Effective distribution logistics requires you to compile and study a lot of data. Consultants can analyze your data and give you advice about how best to meet the demands of customers while keeping your costs low. In addition to the consultant’s recommendations, you should solicit suggestions from customers about the accuracy of orders and the assistance they receive. You should also compile data about damages to property during the delivery process. If you take all of these KPIs into account, you can make the best decisions about your distribution logistics strategy.

Reverse Logistics

The purposes and intended results of reverse logistics are the same as any other aspect of logistics, except that the process moves in reverse. Customers send items back to distribution warehouses. The company processes the claims and sends payment back to the customers, or else sends them a replacement article to compensate for the defective one, in the case of exchanges.

This is the most common type of reverse logistics, but there are also others. For example, some categories of reverse logistics involve warehouses sending unsold or unsatisfactory products back to production plants. The efforts required for reverse logistics seem more burdensome than for other types because no one profits.

Critical Areas to Consider in a 3PL Service Agreement

A 3PL service agreement should be concise and readable. It should have the company name and contact information on a title page. The next part should be a checklist of instructions that the parties need to do to complete the agreement. This way, you can help the service provider achieve the agreement correctly and minimize delays.

Termination Rights

To be sufficiently detailed, a 3PL service agreement might be multiple pages long; this is just the nature of legal contracts. It is only fair if both parties have the choice to terminate the contract ahead of schedule. The contract should specify what each party must do to accomplish this and whether the other party is entitled to compensation.

Indemnification

The agreement should state the situations in which one party is not liable for financial losses incurred by the other party. These situations often include force majeure events, which are adverse events beyond the control of the parties. They include shortages of materials due to natural disasters or disruptions caused by wars.

Protection Against Double Payment

The agreement should include a detailed outline of the procedures for collecting payment. This ensures that the party receiving money gets their payment on time and that the payments collected are accurate. Insufficiently detailed agreements can lead to double payment and other mix-ups that can cause delays and confusion and harm the business relationship.

Key Takeaways

Outsourcing is the key to scaling your business, and you will need to rely on other companies to manage various parts of your supply chain logistics. Each company that provides logistics services with you should sign a 3PL service agreement to govern the business relationship between your company and the service provider. You can find 3PL service agreement templates available for download online, but you should modify them so that they are specific to the services you are outsourcing. It is also a good idea to have a business law attorney review your 3PL service agreement before you sign it.

Frequently Asked Questions

A truly successful business agreement must go through a few rounds of apparently picky questions to ensure that your agreement covers all of the situations in which you might need to resolve a dispute arising from the agreement. These are some questions that eCommerce business owners frequently ask when entering into service agreements to outsource their logistics services:

How Can I Ensure a Fair 3PL Contract?

It is the fine print about legal procedures that separates a fair contract for an unfair one. Anyone can write a contract agreeing that Party A will perform the following services for Party B, and Party B will pay Party A X amount of money, and the courts will probably enforce it. Fairness comes in the contractual procedures, though. What should they do to modify the terms of the contract if necessary? How should the parties repair a breach of contract? Which situations absolve the parties of liability if they cannot perform their contractual obligations? Should they resolve disputes through arbitration or litigation? If litigation is an option, which courts should have jurisdiction to rule on lawsuits arising from the contract?

What are Common Pitfalls in 3PL Contract Negotiation?

Money is the main reason that contract negotiations fall apart. Often, the service provider wants the client to pay more, or the client wants to pay less. In order to arrive at a price that is acceptable to both parties, they might have to change other terms of the contract.

How Can I Protect My Business in a 3PL Contract?

You can protect your business in a 3PL contract by making your contract as specific as possible instead of just using a generic one. You should also go over your contract with a lawyer before you sign.

Contact ShipHero today for a demo.

Choosing the Best Inventory Software

Apr 2, 2024 | Blog, eCommerce, Inventory

How do you ensure that your business’s inventory management is as efficient and error-free as possible? The answer lies in choosing the best inventory software, a crucial tool that revolutionizes how businesses track, manage, and forecast their inventory.

In today’s competitive landscape, the plethora of inventory software options might seem daunting; however, it is key to recognize the essential features and capabilities that cater to your business’s unique needs.

Delving into the importance of inventory software, we underscore how pivotal features like real-time tracking, seamless integration with existing systems, and comprehensive analytics can elevate operational efficiency. So let’s get started!

What is Inventory Software?

Inventory software is a tool that assists businesses in managing and tracking their inventory. It offers real-time information on product quantities and locations, streamlining inventory management, cutting costs, and boosting efficiency. Without such software, businesses would rely on manual counting and record-keeping, which is time-consuming and prone to errors.

Inventory software simplifies this by offering a centralized platform for product information, automatically updating inventory levels when items are sold or restocked. This ensures accurate stock levels, aiding in decision-making regarding purchasing and sales.

One of the main advantages of inventory software is its real-time update feature, which keeps inventory levels accurate. It also facilitates product location tracking, making finding and retrieving items easier, and integrates well with other business systems like POS and accounting software to automate data syncing.

Additionally, it provides analysis tools for sales data and forecasting, helping businesses understand trends, make informed replenishment decisions, and set pricing strategies. It also includes reporting capabilities for insights into inventory performance, identifying areas for improvement.

Key Features of the Best Inventory Software

When evaluating inventory software options, it’s essential to consider the key features that will best serve your business needs:

Real-time Tracking

Real-time tracking is crucial for efficient inventory management. With this feature, you can have a clear view of your inventory at any given moment. You can easily monitor stock levels and ensure that you never run out of essential items. Additionally, real-time tracking allows you to identify any discrepancies or issues with your inventory, enabling you to take immediate action and prevent any potential problems.

Integration with Other Systems

Integration with other systems is a game-changer for inventory management. When your inventory software can communicate with your point-of-sale system or eCommerce platform, you eliminate the need for manual data entry and reduce the risk of error. This integration keeps your inventory levels up to date across all platforms, providing a seamless and consistent experience for you and your customers.

Understanding the synergy between inventory and order management can further elevate your operational efficiency. Discover why integrating the best inventory and order management software is crucial for your business’s success.

Reporting and Analytics

With the right software, you can access detailed reports that give you a deeper understanding of your inventory performance. These reports can highlight trends, identify fast-moving or slow-moving items, and help you forecast future demand. Armed with this information, you can make data-driven decisions to optimize your inventory levels, reduce costs, and maximize profitability.

Barcode Scanning

Instead of manually entering product information, you can simply scan barcodes to update stock levels and track items. This not only improves accuracy but also increases efficiency, as it eliminates the need for manual data entry. With barcode scanning, you can easily conduct regular stocktakes, identify low stock levels, and ensure that your inventory is always up to date.

Mobile Accessibility

With inventory software compatible with smartphones and tablets, you can manage your inventory from anywhere, at any time. Whether you’re on the shop floor, attending a trade show, or working remotely, you can easily check stock levels, place orders, and track shipments with just a few taps on your mobile device. This flexibility and convenience keep you on top of your inventory management, even when you’re away from your desk.

Benefits of Using Inventory Software

Implementing the right inventory software can bring numerous benefits to your business:

Improved accuracy: Inventory software reduces the chances of human error by automating inventory tracking, resulting in more accurate stock levels.
Time and cost savings: With inventory software, you can streamline your inventory management processes and save time. You can also better manage stock levels and avoid overstocking or stockouts.
Enhanced customer satisfaction: Ensure prompt order fulfillment and avoid disappointing customers with out-of-stock items.
Data-driven decision making: The analytics can help you make data-driven decisions to optimize your inventory management and increase profitability.

Effective inventory management goes hand in hand with efficient shipping processes. Learn about multi-carrier shipping software and its benefits to streamline your shipping strategy.

Choosing the Right Inventory Software

With numerous inventory software options available, these factors will help you choose the right one for your business. :

Your specific business needs: Assess your business requirements and identify the features and functionalities you need in an inventory software solution.
Budget: Determine your budget for inventory software and find options that fit within your financial constraints.
User-friendliness: Look for inventory software that is easy to use and requires minimal training.
Reviews and ratings: Read customer reviews and ratings to get a sense of the software’s reliability and effectiveness.
Vendor support: Consider the level of support and customer service provided by the software vendor.

For businesses considering outsourced fulfillment options, it’s essential to understand how inventory software plays a role. Explore the benefits, challenges, and considerations of outsourced fulfillment to make an informed decision.

Key Takeaways

Essentiality of the Right Software: Selecting the ideal inventory software is critical for streamlining inventory management. It should offer real-time stock tracking, seamless system integration, and analytics for smart decision-making. Choosing software that aligns with your business needs is vital for maximizing efficiency.
Critical Features to Evaluate: Essential features to look for in inventory software include real-time tracking, system integration, reporting and analytics, barcode scanning, and mobile access. These functionalities ensure accurate and efficient inventory management, supporting smoother business operations.
Advantages of Proper Software: Adopting suitable inventory software leads to enhanced stock accuracy, time and cost savings, better customer satisfaction, and informed decision-making. The right software can significantly elevate inventory management, leading to reduced costs and boosted profitability.

Frequently Asked Questions

How much does inventory software cost?

The cost of inventory software can vary depending on the features and functionalities you require. Some software may charge a monthly or annual subscription fee, while others may offer one-time payment options.

Can inventory software work with my existing systems?

Many inventory software options are designed to integrate with other systems such as point-of-sale systems, eCommerce platforms, and accounting software. It’s essential to check the compatibility of the software with your existing systems before making a decision.

Is inventory software suitable for small businesses?

Yes, inventory software is beneficial for businesses of all sizes. Small businesses can improve their inventory management processes, reduce costs, and increase efficiency with the right software solution.

Does inventory software require technical expertise to use?

While some inventory software may have advanced features that require technical expertise, many options are designed with user-friendly interfaces and require minimal to no technical knowledge.

Can inventory software be accessed remotely?

Yes, many inventory software options offer remote access capabilities. This means you can manage your inventory from anywhere with an internet connection, using your computer or mobile device.

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Fulfillment & eCommerce Software For Your Business When Using SAP

What is SAP?

How Does the SAP Fulfillment Process Work?

What Does an Order Fulfillment Provider Do?

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Additional Software For Your eCommerce Business

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1. ShipHero

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2. Zoho Inventory

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3. DiCentral

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