Jul 3, 2023 | Blog
Your customers deserve the best. And in order to deliver the best, you need smooth, streamlined fulfillment processes. But as your business grows, you are likely to run into kinks in the system. Cue the entrance of our heroes: third-party logistics (3PL) companies! For all you WooCommerce warriors out there, finding the perfect 3PL partner is essential for conquering customer demands. And this blog is your guide to finding them!
What is a 3PL?
A 3PL, short for third-party logistics, is a company that offers outsourced logistics and supply chain management services. These companies specialize in handling various aspects of the logistics process, including warehousing, inventory management, order fulfillment, and shipping.
What is WooCommerce?
WooCommerce is a powerful and widely used eCommerce platform built on top of WordPress. It provides businesses with a user-friendly interface and a range of features to create and manage online stores. This flexible platform offers numerous extensions and integrations to enhance the functionality of online stores and cater to specific business needs.
The Intersection of 3PL and WooCommerce
How Do 3PLs Connect with WooCommerce?
To connect WooCommerce with a 3PL company, various integration options are available. The most common method involves utilizing plugins or extensions specifically designed for WooCommerce-3PL integrations. These plugins establish a seamless connection between the two systems, enabling real-time data synchronization between the eCommerce platform and the 3PL provider’s logistics infrastructure.
How Does WooCommerce Fulfillment Work?
WooCommerce provides built-in fulfillment capabilities to manage the order processing and shipping workflow. When an order is placed on a WooCommerce store, the platform captures the necessary information and sends it to the designated 3PL partner. The 3PL company then receives the order details, picks and packs the products from their warehouse, and ships them to the customer’s address.
Importance of 3PL for WooCommerce
Significance of 3PL WooCommerce Partner
A 3PL WooCommerce partner should have expertise in integrating their logistics systems with the WooCommerce platform. This ensures a smooth flow of data between your online store and the 3PL, enabling real-time updates on inventory, order processing, and shipping. A reliable 3PL partner should have robust systems in place to track inventory levels, provide real-time stock updates, and manage inventory replenishment efficiently.
What Does a WooCommerce Order Fulfillment Provider Do?
A WooCommerce order fulfillment provider, often a 3PL company, takes care of the entire fulfillment process for your online store. Here are the key responsibilities of a WooCommerce order fulfillment provider:
- Warehousing
- Inventory Management
- Order Processing
- Shipping and Delivery
- Returns and Exchanges
Top 10 3PL Companies for WooCommerce
Shiphero
ShipHero offers comprehensive 3PL solutions for WooCommerce, including inventory management, order processing, and shipping. Their advanced technology and warehouse management system enable real-time tracking and efficient operations. ShipHero’s features include barcode scanning, customizable packing slips, and integrations with major shipping carriers. They cater to businesses of all sizes, providing scalability, accurate inventory management, and fast order fulfillment.
Check out ShipHero here!
ShipStation
While primarily known as a shipping software, ShipStation offers a 3PL fulfillment service called ShipStation Fulfillment. With their WooCommerce integration, businesses can benefit from their network of fulfillment centers, inventory management, and order processing capabilities. ShipStation’s platform provides real-time order tracking, efficient shipping label generation, and customizable packing slips.
ShipCarte
As a growing 3PL company, ShipCarte focuses on providing end-to-end fulfillment solutions for WooCommerce businesses. ShipCarte offers real-time inventory visibility, customizable packaging, and integration with major shipping carriers.
ShipZOOM
ShipZOOM specializes in providing customized 3PL solutions for eCommerce businesses, including WooCommerce. And their technology platform integrates seamlessly with WooCommerce, enabling real-time order updates and tracking. Their personalized approach, reliable customer support, and efficient fulfillment services contribute to improved customer satisfaction and business growth.
eFulfillment Service
This trusted 3PL offers fulfillment solutions for WooCommerce businesses. They handle inventory management, order processing, and shipping from their strategically located fulfillment centers. And they provide integration with WooCommerce, allowing businesses to automate order fulfillment.
Red Stag Fulfillment
Red Stag Fulfillment offers comprehensive services, including warehousing, inventory management, order processing, and shipping. Red Stag Fulfillment integrates with WooCommerce, providing businesses with real-time order updates and inventory tracking. Their solutions cater to businesses with larger or heavier products.
Shipmondo
With their integration capabilities, businesses can easily connect their WooCommerce store to ShipMondo’s platform. They offer multiple shipping options, carrier integrations, and automated label generation, and ShipMondo’s platform also includes features like real-time tracking, personalized packing slips, and international shipping support.
Shipfusion
Shipfusion offers comprehensive fulfillment services for WooCommerce businesses. They provide warehousing, inventory management, order processing, and shipping from their network of fulfillment centers. Their services enable businesses to scale rapidly, reduce fulfillment costs, and deliver a superior customer experience.
Printful
Printful focuses on print-on-demand and dropshipping services for eCommerce businesses, including those using WooCommerce. They offer custom printing and fulfillment of products such as apparel, accessories, and home goods. Printful integrates seamlessly with WooCommerce, allowing businesses to create and sell custom products with automated order fulfillment.
ShipRocket
This 3PL specializes in eCommerce fulfillment and offers seamless integration with WooCommerce. They provide end-to-end services, including inventory management, order processing, shipping, and returns handling. Their wide network of shipping partners ensures fast and cost-effective delivery options.
Outsourcing Your WooCommerce Fulfillment
Outsourcing your WooCommerce fulfillment to a reputable 3PL company can bring numerous benefits to your business. By leveraging their expertise, infrastructure, and range of fulfillment services, you can streamline your operations and focus on business growth.
Benefits of Outsourcing Your WooCommerce Shipping & Fulfillment to a 3PL
Increased Efficiency
By entrusting your fulfillment processes to a 3PL, you can achieve increased efficiency in your operations. A reputable 3PL provider has streamlined fulfillment processes, efficient warehouse management, and expertise in order processing. Their dedicated team and advanced technologies ensure that orders are picked, packed, and shipped accurately and promptly.
Improved Customer Experience
Providing an exceptional customer experience is crucial for the success of your WooCommerce store. A 3PL partner with a strong focus on customer care can enhance your customer experience significantly. Helping you to create happier customers who are more likely to become repeat buyers and recommend your store to others.
Reduced Overheads
Instead of investing in warehousing space, equipment, and labor, you can leverage the existing infrastructure of the 3PL provider. This eliminates the need for capital expenditures and reduces ongoing operational costs.
Easy WooCommerce Shipping
A reliable 3PL partner simplifies the WooCommerce shipping process for you. They have integrations with various shipping carriers, enabling easy selection of shipping options, label generation, and automatic tracking updates.
How to Optimize Your WooCommerce Fulfillment with a 3PL
- Start by evaluating your current fulfillment process and identifying areas for improvement.
- Research and choose a 3PL provider that aligns with your business requirements.
- Ensure seamless order transmission from your WooCommerce store to the 3PL provider.
- Work closely with your 3PL partner to establish efficient inventory management practices.
- Leverage the automation capabilities provided by your 3PL partner.
- Tap into the shipping expertise of your 3PL provider.
- Make use of the analytics and reporting capabilities offered by your 3PL partner.
- Foster a strong partnership with your 3PL provider through effective communication and collaboration.
- Regularly review and assess the effectiveness of your optimized WooCommerce fulfillment process.
What to Look for in a 3PL Partner
Things to Consider When Looking for a 3PL
When selecting a 3PL provider, remember to research the reputation of potential providers by examining customer reviews, testimonials, and case studies to gauge their reliability and customer satisfaction. Requesting references from existing clients can also provide valuable insights. A top tier 3PL should provide you with case studies (like this one from ShipHero) to help you see how you’ve improved businesses for your other clients! You should also assess the geographic coverage of the 3PL’s warehouse locations, considering the proximity to your target markets and the level of customer support offered by the 3PL, ensuring prompt and responsive assistance. Finally, you should compare fees such as setup, storage, order processing, and shipping costs to ensure they fit within your budget and projected order volumes.
How to Choose the Right 3PL WooCommerce Partner
Take a good look at what you need in terms of fulfillment. Consider services like warehousing, inventory management, order processing, and shipping. This will help you figure out your specific requirements. Then, look for potential 3PL providers who have these services, and a good reputation. Check out their industry experience, see what others are saying about them, and take a peek at their geographic coverage too. Once you have a shortlist of contenders, it’s time to get up close and personal. Set up interviews or meetings with the top ones to get to know them better. And don’t forget your due diligence! Reach out to the references provided by the 3PL providers and give client reviews and testimonials a good read. Hearing from other businesses who have worked with them will give you a better sense of their performance and reliability.
Questions to Ask Potential Providers Before Making Your Decision
When evaluating potential 3PL providers for your WooCommerce fulfillment, it’s essential to ask the right questions to make an informed decision. Consider asking the following questions:
- What is your experience in working with WooCommerce businesses?
- Can you provide references from current or past clients who use WooCommerce?
- What is your average turnaround time for order processing and shipping?
- How do you handle inventory management and ensure accuracy?
- What technology integrations do you have with WooCommerce?
- What shipping carriers do you work with, and what are the available shipping options?
- Do you offer real-time order tracking for customers?
- How do you handle returns and exchanges?
- What are the pricing structures and any additional fees involved?
- What level of customer support do you provide?
How to Integrate WooCommerce with Your Website
How to Add WooCommerce to Your Website
Integrating WooCommerce with your website is crucial to establish a seamless connection between your online store and the fulfillment process. Here’s how you can integrate WooCommerce with your website:
- Set up WooCommerce by installing the plugin on your WordPress website.
- Create product listings in WooCommerce, including images, descriptions, and pricing.
- Define your shipping options, rates, and methods within the WooCommerce settings.
- Select the payment gateways you want to offer to your customers.
- Customize the appearance of your WooCommerce store to align with your branding.
- Before launching your WooCommerce store, thoroughly test the checkout process, payment gateways, and shipping options to ensure a smooth customer experience.
WooCommerce Fulfillment Integration
Integrating your WooCommerce store with a 3PL provider for seamless fulfillment involves the following steps:
- Choose a compatible 3PL provider
- Obtain integration credentials with the provider
- Install and activate the integration plugin
- Configure the integration settings
- Synchronize inventory
- Test order processing
- Fine-tune integration settings
- Ongoing monitoring and maintenance
Final Considerations in Choosing a 3PL for WooCommerce
Location and Infrastructure
Consider the geographic location and distribution network of the 3PL provider. A strategically located fulfillment center can help reduce shipping costs and delivery times, especially if you have customers concentrated in specific regions.
Range of Services
Assess the range of services offered by the 3PL provider and ensure they align with your specific requirements. From warehousing and inventory management to order processing and shipping, consider whether the provider can handle all aspects of your fulfillment process.
Integration with WooCommerce
Verify the 3PL provider’s integration capabilities with WooCommerce. A seamless integration allows for real-time data synchronization, automated order processing, and accurate inventory management.
Experience and Expertise
Look for testimonials, case studies, and references from other WooCommerce clients to gauge their track record and customer satisfaction levels. A provider with experience in the eCommerce industry and knowledge of the specific challenges faced by WooCommerce businesses can offer valuable insights and tailored solutions.
Key Takeaways
Choosing the perfect 3PL sidekick for your WooCommerce fulfillment adventure is the secret to leveling up your operations, dazzling customers, and blasting off towards business growth. With the right 3PL by your side, your WooCommerce store will be the talk of the town, leaving customers awestruck and your business. Choose wisely!
Frequently Asked Questions
How is 3PL Different from Drop Shipping?
While 3PL and drop shipping both involve outsourcing fulfillment, there are key differences. With 3PL, you store your inventory in the provider’s warehouses, and they handle order processing, packing, and shipping. In contrast, drop shipping involves the supplier shipping products directly to customers, bypassing the need for you to hold inventory.
How Do I Choose a 3PL for My eCommerce Business?
When choosing a 3PL provider for your eCommerce business, consider factors such as their experience in the industry, range of services offered, integration capabilities with your eCommerce platform (like WooCommerce), geographic coverage, scalability, pricing structure, customer support, and reputation.
Can a 3PL Provider Handle International Shipping?
Yes, many 3PL providers have the capabilities to handle international shipping. They have partnerships with shipping carriers and can navigate the complexities of international customs and regulations.
Nov 2, 2022 | Blog
What is Wix?
As one of the most popular website builders out there, Wix has around 200 million users worldwide. This website builder requires no coding or design skill and has a slew of tools you can directly implement into your website to beef up your eCommerce store. Using the Wix App Market you can easily integrate these additional programs with a click of a button so all your store needs can be found in one place. They are a company who prides themselves in offering a platform which empowers its users to put their best foot forward without the requirement of being highly tech savvy.
Wix was born in 2006 and has scaled quickly becoming one of the leaders in website creation. They continually release new features to improve the platform so no matter your profession, they will have tools to empower you for success.
Why use Wix?
One of the biggest reasons to choose Wix for your eCommerce store is the ability to use the platform completely free. You can build a beautiful website and launch your business without needing to pay a dime. Then, if you want more advanced features like invoicing, email campaigns, SEO, ads, and ownership over your domain, you can purchase a Wix Premium Plan for a low annual rate.
Another reason is because Wix is powerful. They provide you with a slew of tools to help you engage with clients, analyze traffic, and much more. Plus when you create your website you can choose from hundreds of templates and drag and drop design choices that make setup simple. They also have a diverse App Market with over 250 solutions you can integrate directly into your site for further customization.
And it’s highly secure. Being SSL certified on your website, especially if you collect payments. Your clients need to feel they are safe entering their financial information at check out or when paying an invoice. Wix has you backed with security certificates which give your clients peace of mind. Now you can feel free to safely collect order payments, book events, offer subscriptions, and even classes from your Wix store.
In the end, Wix is an exciting website builder to use because it’s simple to maintain and beautiful to use. This highly diverse platform is meant to give technological power back to entrepreneurs so their business development momentum doesn’t get halted in its tracks.
Fulfillment Through Wix
If your online store needs to fulfill orders, you have several options which inherently work with Wix. The first being you as the seller can be the one to personally store, package, and ship your own products. Many people start out this way, but unless you want to invest in large logistical infrastructure it can become tedious as you grow.
You can also use dropshipping services; this is where you send orders to the manufacturer who then makes, packages and ships your product for you once an order is processed. For this option you don’t need inventory on hand but you are at the mercy of shipping congestion if your manufacturer is across seas.
And lastly, you can also work with a third-party fulfillment service. These are organizations who have invested heavily in fast and efficient fulfillment and shipping options so you don’t have to worry about it. They are often spread around the US so your product is within quick delivery distance of your customers. They will store, pick, pack, and ship your products once an order is sent to them.
Benefit of Third-Party Fulfillment
According to Wix, eCommerce businesses on the Wix platform who utilize third-party fulfillment services increase their sales revenue by 25%. This can be a huge return for you. Plus with the infrastructure these fulfillment centers have in place, you can get your items shipped faster, and more accurately to give your customer a better experience. As returns occur in your business, these solutions can help you handle and reinventory them all while providing a high quality customer experience. When you don’t have to store your products yourself and try to fulfill orders all day you can take more time back to grow your business.
ShipHero
ShipHero can put your mind at ease. If you need technology to help streamline your warehouse processes or want someone to take over the fulfillment process entirely they have you covered. Their services include a top tier warehouse management system (WMS), high quality inventory management, and a fully outsourced fulfillment service. Which means you have more time to focus on business growth. With a one click fulfillment integration into your store, you gain a fully outsourced fulfillment solution which can help you ship 30% faster and includes transparent flat-rate fees. With their PostHero integration you can track package progress for your customers and recognize and address fulfillment gaps. And their Client Support team is highly rated and eager to help you with any questions.
Amazon Multi-Channel Fulfillment
As a part of the Wix App Market, you have access to the Amazon Multi-Channel Fulfillment (MFC) app. Here you can utilize Amazon’s low cost fulfillment solution and offer delivery in as fast as one day with low shipping costs. You do not have to sell your product on Amazon to get the benefit of fast shipping or to utilize their carriers. Your customers can see delivery dates at checkout as well as receive email insights on when they can expect their order. And the MFC automatic inventory placement processes allows you to place your products closer to your customers. Plus with the power of Amazon behind you, this solution will scale up and down as you need without increasing your fixed costs.
Printful
Through your Wix store, if you sell a Printful product, you can fully automate your fulfillment process. This print-on-demand dropshipping company allows you to sell custom products online without the cost of keeping inventory. They help you with customization of clothing, stickers, hats, stationary, posters, and much more. For these products they source high quality materials so your products can make a lasting impression. If you don’t have a design in mind, they do have a built-in Design Maker to help you generate one and test what it would look like on different products! They don’t require any order minimums. And they utilize local fulfillment services in your area so you can be a part of growing local businesses.
Selery Fulfillment
Wix eCommerce store owners can get same-day eCommerce fulfillment options through Selery. They help businesses save money by removing costs which bog business owners down. With a bird’s eye view order dashboard, you can track your entire order through the fulfillment process from beginning to end. And they offer you a dedicated customer service representative so when a problem arises you can quickly reach them via live chat or a quick phone call. In order to make reverse logistics easier, their dedicated returns team will process returns as they come in order to ensure your customers will get their refund quickly. Plus, they will integrate everything across your order and fulfillment processes for you so you don’t have to try and integrate them yourself.
Next Smart Ship
This solution is geared towards small and mid-size businesses who face problems like limited budget, and lack of time, to build their own fulfillment process. They can help you expand your offering with international shipping partners located in China, United States, Europe, Canada, and Australia. And you can utilize their Smart Platform which is an inventory management software to make your fulfillment workflow simple by utilizing intelligent channel planning, automated order management, real-time order tracking, and multi-platform management. On top of it all, they can help with customized packaging and kitting as an additional service.
NovEx
With easy integration into your Wix eCommerce store, NovEx can help you upgrade your eCommerce order fulfillment. They strive to have the latest technology within the eCommerce industry and with your Wix integration they can help you automate your fulfillment processes. Their supply chain experts will consult with you to find the best fulfillment process for your business. This solution is simple to set up and integrate into your eCommerce website and once you connect you’ll see order tracking and inventory management reports.
Fulfyld
The goal at Fulfyld is to become a partner who supports your eCommerce fulfillment service needs. You can connect your store to their platform with seamless integrations to get your inventory started at a Fulfyld location. From there they will distribute your inventory to the most effective location based on your client order history. When a client places an order, they will pack and ship the product out. Plus, they can help you with subscription box fulfillment and Kickstarter backer rewards. Overall, they will help you simplify your fulfillment process and take the logistical burden load off your shoulders.
Sup Dropshipping
As one of the apps on the Wix marketplace, Sup Dropshipping is a one stop dropshipping service. They have a Dropcustom Creator which helps you develop your print on demand products and they offer free sourcing services for those products. Plus they don’t charge any hidden usage fees and don’t require a credit card up front. They also value the quality of your products and know how much you do. Because of this they offer a product inspection service to help you test product quality before it ever hits your clients door. And with custom product photoshoots, they can help your products shine in their description image so they are as exciting to clients as they are to you.
ShipBob
With ShipBob you can sync your products from your store to their fulfillment dashboard. Using their dashboard you can gain their fulfillment, shipping, and warehousing services for your eCommerce store. They offer 30+ global fulfillment centers and 2-day express shipping throughout the US. With their customization suite you can offer your customers gift notes, customized packaging, custom packing slips, and custom labels. In addition they also have global offerings throughout the US, Canada, Australia, the United Kingdom, and the EU. And no matter what your location orders run through ShipBob’s warehouse management system so ShipBob’s high standard SLAs now apply to your business.
CartRover
When you connect your Wix eCommerce site to CartRover, you can standardize your order tracking and inventory integrations between other eCommerce sources. With your Wix store integration they offer sales order downloads, sales order deliveries, shipment tracking, and inventory level reporting. As orders come through your system and a client is checking out, CartRover will use address verification technology to standardize US addresses, standardize international addresses, and hold orders with incorrect addresses. You also get the ability to load in or ignore orders based on specific criteria so you can batch send your orders to specific states or with specific high priority products.
Conclusion
Order fulfillment can be messy and time consuming. Some small businesses try to keep up with a massive demand of orders while also managing and maintaining an entire business. When this happens things unintentionally get missed. Orders can fall through the cracks, quality control can slip, and as an owner you can feel torn between completing orders and promoting your business. But now, there is no reason to do all of this on your own.
With Wix, your eCommerce site can come to life and give you the ability to leverage the tools and apps Wix can integrate into directly. Take a tip from them. Leverage tools to make your life easier. Picking a fulfillment service to take on your order management and processing will feel like a breath of fresh air if you are trying to do it all on your own. Suddenly you have more time on your hands to focus on what matters. And with their expertise you can strategize on how to improve your customers experience with a stellar fulfillment process. You’ll be surprised what a difference it makes in customer satisfaction, and overall customer retention.
Don’t work with Wix? Find the best carriers for many of the highest profile marketplaces on the web.
Don’t work with Squarespace? Find the best carriers for many of the highest profile marketplaces on the web.
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Feb 16, 2023 | Blog
As eCommerce needs continue to evolve, choosing the right 3PL consultant has become increasingly important for business owners. A good 3PL consultancy will guide you through selecting the best features and services, understanding pricing structures, managing your inventory, and creating efficient supply chain processes beyond contract negotiations with carriers and fulfillment centers.
When considering potential consultants, keeping these strategic elements in mind can help you land one that makes sense for your specific situation. This blog post will unpack How to Choose the Best 3PL Consultant options to fit your business needs!
What is Third-Party Logistics?
Third-Party Logistics (3PL) is a business outsourcing service in which a company contracts out its logistics and distribution functions to another company. 3PL providers handle many logistics functions, such as transportation, warehousing, and inventory management, allowing the outsourcing company to focus on its core competencies. 3PL providers can also offer value-added services such as packaging, assembly, and reverse logistics.
What are 3PL Consultants?
3PL consultants are professionals who specialize in helping companies optimize their logistics operations by using third-party logistics providers. They work with companies to understand their logistics needs and help them find the right 3PL provider to meet them.
Experienced consultants typically have a deep understanding of the logistics industry and can provide a range of services and resources, such as:
- Assessing a company’s current logistics operations to identify areas for improvement.
- Identifying the most appropriate 3PL services for a company’s needs.
- Helping a company evaluate and select the best 3PL provider from a group of candidates.
- Negotiating contracts and service-level agreements with 3PL providers.
- Managing the implementation of new logistics processes and systems.
- Monitoring the performance of 3PL providers to ensure they are meeting the company’s expectations.
How Do 3PL Consultants Work?
3PL consultants typically work with companies in several key stages:
- Initial Assessment: The consultant will conduct an initial assessment of the company’s current logistics operations, including key questions regarding transportation, warehousing, inventory management, and other logistics-related activities. This assessment will help the consultant understand the company’s specific needs and identify areas for improvement while planning.
- Recommendations: Based on the assessment process, the consultant will recommend how the company can improve its logistics operations using third-party logistics providers. This may include identifying the most appropriate 3PL services for the company, such as transportation management, warehousing, or inventory management.
- Provider Evaluation: The consultant will then help the company evaluate and select the best 3PL provider from a group of candidates. This may involve reviewing the providers’ capabilities, costs, references, and conducting site visits.
- Implementation: Once a 3PL provider has been selected, the consultant will help the company implement new logistics processes and systems. This may include negotiating contracts and service-level agreements with the provider and managing the transition.
- Monitoring: After the implementation, the consultant will monitor the performance of the 3PL provider to ensure they are meeting the company’s expectations and that the operation of the new logistics is running smoothly. The consultant may also make additional recommendations for improvements as needed.
Ways to Work with a 3PL Consultant
For those who would like comprehensive logistics operations management, full-service consulting is the way to go. Working with a 3PL consulting service can be tailored to address a client’s specific needs and goals. This covers everything from the initial assessment and planning to implementation and ongoing monitoring of the company’s operations.
For projects that require short-term assistance, project-based consulting works well for quick results. Advisory services give the advantage of having a specialist available when needed throughout an organization’s lifetime, while retainer-based consulting locks in a set number of hours per month from the consultant for support and advice. Whatever need arises, there is likely an option to match it!
How to Use a 3PL Consultant to Find a New 3PL Vendor
When evaluating and selecting a new 3PL vendor, a 3PL consultant typically uses a set of objective criteria to ensure that the vendor is a good fit for the company’s specific needs.
Objectives
- Services Offered: The consultant will evaluate the vendor’s capabilities and services, such as transportation, warehousing, inventory management, packaging, assembly, and reverse logistics, to ensure that they align with the company’s needs.
- Costs: The consultant will review the vendor’s expenses, including transportation rates, warehousing fees, and other charges, to ensure that they are competitive and in line with industry standards.
- Quality and Reliability: The consultant will evaluate the vendor’s reputation for quality and reliability, including the quality of their equipment and facilities, the reliability of their transportation fleet, and their track record for meeting or exceeding service level agreements.
- Technology: The consultant will assess the vendor’s technology capabilities, including their warehouse management systems, transportation management systems, and other logistics-related technologies, to ensure they can provide the level of automation and visibility the company requires.
- Scalability: The consultant will consider the vendor’s ability to scale their services up or down to meet the company’s changing logistics needs over time.
- Compliance: The consultant will check if the vendor complies with industry regulations and standards, such as safety and transportation regulations, customs laws, and environmental standards.
- Customer Service: The consultant will evaluate the vendor’s customer onboarding and service, including their responsiveness, ability to communicate effectively, and willingness to work with the company to resolve any issues that may arise.
- Location: The consultant will consider the vendor’s location, including whether they have multiple warehouses or transportation hubs that are geographically well-suited to the company’s needs.
These criteria will help the consultant ensure that the vendor is a good fit for the company’s specific needs and can help the company achieve its logistics goals.
Scope
The scope of a 3PL consultant’s work is comprehensive, ranging from helping companies assess the pros and cons of outsourcing versus insourcing to evaluating existing 3PL relationships and improving upon them to tendering and negotiating with new potential providers.
With their expertise and market knowledge of logistics, 3PL consultants are equipped to provide insights into various solutions that can help businesses streamline their operational efficiency and reduce warehouse and fulfillment services costs. By assessing and asking the right questions and selecting and using the right contract logistics solutions that match the needs of a specific business, these consultants ensure businesses can remain competitive in the ever-evolving market.
Methodology
A 3PL consultant can be essential in helping a company find the right vendor for their logistics needs. To ensure that the selected vendor is the best fit, the consultant follows a disciplined methodology that begins with defining the company’s requirements and researching and identifying potential vendors.
The consultant then evaluates and shortlists them, issuing a Request for Proposal (RFP) to solicit detailed responses from each. Once these are evaluated, the consultant selects the best vendor and helps with the implementation process.
Finally, they review and monitor the performance of the new vendor toward meeting business goals. In this way, companies that use 3PL consultants gain access to an accounting professional who can help them make informed decisions regarding their supply chain strategies, goals, and objectives.
Deliverables
The deliverables for a 3PL consultant when selecting a vendor can vary depending on the specific project and the company’s needs. However, in general, a consultant’s deliverables may include the following:
- Initial Assessment Report: This report will summarize the consultant’s initial assessment of the company’s current distribution operations and identify areas for improvement.
- Vendor Shortlist A list of potential 3PL vendors that have been researched, evaluated and shortlisted by the consultant as suitable for the company’s logistics needs.
- Request for Proposal (RFP) Document: The shortlisted vendors will send a detailed description of the company’s requirements, expected service levels, and other relevant information.
- Vendor Evaluation Report: A report summarizing the consultant’s evaluations of the potential vendors, including an assessment of their services offered, costs, quality and reliability, technology, scalability, compliance, customer service levels, and location.
- Vendor Selection Report: A report recommending the best vendor from the shortlist, including the rationale for the selection and any negotiations or agreements made with the vendor.
- Implementation Plan: An implementation assistance plan outlining the steps and timelines for development and implementing the new logistics operation, including transferring data and inventory and coordinating any necessary training or support.
- Performance Monitoring Report: A report on the ongoing performance of the new 3PL vendor, including a review of the vendor’s service level agreements and any recommendations for improvements.
- Final Report: A final report summarizing the consultant’s work, including an overview of the entire process, an assessment of the results achieved, and any recommendations for future improvements.
How to Choose the Best 3PL Consultants
Choosing the best 3PL consultant for your company can be a challenging task, but there are several key factors to consider that can help you make an informed decision.
- Experience: Look for a consultant with a proven track record of market knowledge and success in logistics. They should have a deep understanding of the industry, including the latest trends and technologies, and a history of helping companies optimize their logistics operations.
- Industry Knowledge: Look for a consultant who has a thorough understanding of your industry and the specific logistics requirements of your business. This will help ensure that they can provide relevant recommendations and solutions.
- Technology Expertise: Look for a consultant with experience and expertise in logistics-related technology, such as warehouse and transportation management systems. This will ensure that the consultant can help you select a 3PL vendor to meet your technology needs.
- Communication and Collaboration: Look for a consultant who can communicate effectively and collaborate with your team. They should be able to understand your needs and provide relevant and actionable recommendations.
- Flexibility: Look for a consultant who is flexible and willing to adapt their approach to your specific needs. They should be open to feedback and ready to make adjustments as needed.
- Reputation: Look for a consultant with a good reputation in the industry. They should have a strong network of contacts and good references that speak to their ability to deliver results.
Capability Evaluation During the 3PL Selection Process
Selecting the right 3PL partner for a company’s logistics operations is an important task that should not be taken lightly. A consultant must have both IT and Industry IQ to choose the most suitable vendor.
IoT IQ ensures that the selected vendor has all the technical capabilities needed, such as integration with existing systems, security, scalability, support, and maintenance.
Meanwhile, industry knowledge is necessary to recommend suitable vendors that align with the company’s goals and evaluate their performance against competitors in the market.
A consultant possessing a strong technical understanding and industry insights can help make sure that the right 3PL partner is chosen and guarantee successful collaboration between both parties.
Key Takeaways
Here are some key takeaways from the information provided about 3PL consultants and the 3PL selection process:
- 3PL consultants help companies optimize their distribution operations by selecting and managing 3PL vendors.
- A 3PL consultant can work with a company in different ways depending on the company’s specific needs and goals, such as full-service consulting, project-based consulting, advisory services, and retainer-based consulting.
- When evaluating and selecting a new 3PL vendor, a 3PL consultant typically uses a set of objective criteria such as services offered, costs, quality and reliability, technology, scalability, compliance, customer service, and location.
- The methodology of a 3PL consultant when selecting a new 3PL vendor typically includes several key steps such as defining requirements, researching and identifying potential vendors, evaluating and shortlisting them, issuing a Request for Proposal (RFP), evaluating vendor responses, selecting the best vendor, assisting in the implementation process and monitoring the performance of the new vendor.
- Deliverables can vary depending on the specific project and the company’s needs but typically include reports, documents, and plans that help the company evaluate, select, implement, and monitor its new 3PL vendor.
- IT IQ plays a crucial role in the 3PL selection process by ensuring that the selected vendor has the necessary technical capabilities to meet the company’s needs, including integrating existing systems, security, scalability, and support and maintenance.
- Industry IQ plays a critical role in the 3PL selection process by ensuring that the consultant understands the logistics industry and the company’s specific requirements and can provide valuable insights and recommendations throughout the selection process.
- When choosing the best 3PL consultant, consider factors such as experience, industry knowledge, technology expertise, communication and collaboration, flexibility, and reputation.
3PL Consulting Efficiency
Businesses need to look for a 3PL consulting firm that can provide them with an integrated eCommerce logistics solution. This will allow the company to manage its inventory better, understand pricing structures, and create efficient supply chain processes. Choosing the best 3PL consultant can be overwhelming, with so many options available. But by considering these strategic elements, you can find a consultancy that fits your business needs perfectly!
3PL Consultants FAQs
What Does 3PL Stand For?
A 3PL (third-party logistics) provider offers outsourced logistics services, which involve the management of one or more facets of procurement and fulfillment activities.
What Is 3PL Consulting?
3PL consulting evaluates the economics of outsourcing some or all of the business’s warehouse operations to a third-party logistics provider.
What Is the Best Third-Party Logistics 3PL Software?
ShipHero is the best third-party logistics (3PL) software for businesses looking to be maximally efficient, cut costs, and offer complete customer visibility. ShipHero’s WMS solution can dramatically amp up your warehouse output by 30% while substantially reducing mis-ships and smoothing task optimization, simplifying your shipping processes. With ShipHero, you’ll have the tools to navigate an increasingly competitive industry successfully while being equipped with reliable insight into every action to improve operations, build customer satisfaction, and ensure your business reaches its full potential.
Apr 2, 2024 | Blog, Fulfillment
What if businesses could streamline their supply chain operations, focus on their core activities, and still ensure customer satisfaction with timely and accurate product deliveries? This is where Third-party Logistics (3PL) services come into play, offering a strategic outsourcing option for logistics and supply chain management. By partnering with specialized 3PL providers, businesses can leverage warehousing, transportation, inventory management, and order fulfillment services.
The adoption of 3PL services brings numerous benefits, including cost savings, access to specialized logistics expertise and resources, scalability to adapt to demand fluctuations, and an overall improvement in customer service. Whether it’s through transportation-focused, warehouse-based, or integrated logistics solutions, 3PL providers offer a comprehensive approach to managing supply chains effectively.
This not only helps businesses reduce operational costs and improve efficiency but also ensures they remain competitive in a rapidly evolving market. So, how can your business leverage 3PL services to achieve operational excellence and a strategic advantage in the marketplace? Read on!
What are 3PL Services?
3PL services streamline business operations by outsourcing logistics and supply chain management to third-party experts. This partnership covers warehousing, transportation, inventory management, and order fulfillment. 3PL providers offer advanced warehousing solutions, strategic locations for efficient distribution, and state-of-the-art inventory systems to maintain optimal stock levels.
They also excel in transportation, managing logistics, paperwork, and customs for timely deliveries. Furthermore, 3PLs enhance customer satisfaction through seamless order fulfillment and offer value-added services like product customization and reverse logistics, enabling businesses to focus on their core activities while improving supply chain efficiency and differentiation in the market.
Essentially, 3PL services allow companies to leverage expert resources and technologies, ensuring operational excellence and a competitive edge. Below, we will look in detail at the benefits of 3PL services.
Benefits of 3PL Services
There are several benefits to utilizing 3PL services, but we will discuss the most important benefits which influence businesses to go for 3PL services:
When businesses choose to utilize 3PL services, they can save a significant amount of money. Instead of investing in their own logistics infrastructure, which can be costly and time-consuming, companies can rely on the expertise and resources of 3PL providers. By outsourcing logistics functions, businesses can avoid purchasing warehouses, hiring additional staff, and investing in transportation vehicles. This lets them focus their financial resources on other core areas of their business, such as product development and marketing.
3PL providers specialize in logistics and supply chain management. They have a deep understanding of the industry and stay updated with the latest trends and technologies. By partnering with a 3PL provider, businesses gain access to this expertise and can benefit from their knowledge and experience. Most 3PL providers have established networks of carriers and warehouses to efficiently handle transportation, warehousing, and distribution. They also have access to advanced technologies, such as inventory management systems and tracking tools, which can improve efficiency and visibility throughout the supply chain.
By partnering with a 3PL provider, companies can easily scale their logistics operations to accommodate fluctuations in demand, from a sudden increase in orders or a seasonal spike in sales. 3PL providers have the flexibility to adjust their resources and capabilities accordingly, eliminating the need for significant investments in infrastructure and personnel. With a 3PL provider, businesses can scale up or down their logistics operations as needed, without long-term commitments or financial risks.
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Improved Customer Service
3PL providers focus on delivering products to customers on time and in optimal condition. They have efficient logistics processes in place, including order fulfillment and last-mile delivery: both can significantly reduce delivery times. And with faster and more reliable deliveries, customers experience improved service levels and are more likely to become repeat customers. Additionally, 3PL providers often offer value-added services, such as order tracking and returns management, both of which further contribute to a positive customer experience.
For businesses looking to expand their operations into Canada, understanding the landscape of 3PL services in the region can provide a significant advantage. Explore how 3PL services operate within Canada, offering unique opportunities for cost savings and logistical efficiency, in our detailed guide on 3PL in Canada.
Types of 3PL Services
3PL services are vital for streamlining supply chain operations, each type catering to specific needs—from transportation and warehousing to comprehensive logistics solutions.
- Transportation-based 3PL: Focuses on managing goods’ movement with services like freight management, shipping, and tracking. These providers use their extensive network and knowledge of transportation modes to ensure efficient, cost-effective deliveries, handling customs, documentation, and insurance to provide scalable solutions.
- Warehouse-based 3PL: Specializes in warehousing operations, using advanced technologies for effective inventory management and employing strategies like JIT to minimize costs. They ensure accurate order processing through automated picking and packing and optimize storage space, enhancing supply chain efficiency.
Advanced warehouse management systems play a pivotal role in enhancing inventory accuracy and operational efficiency. Learn more about how 3PL warehouse management systems can streamline your warehousing operations, contributing to significant cost savings and scalability, in our in-depth exploration of 3PL warehouse management systems.
- Integrated 3PL: Offers a full spectrum of logistics services, acting as strategic partners to manage the entire supply chain. These providers coordinate multiple logistics functions and offer value-added services like order fulfillment and customer service, using advanced technologies for integrated solutions that improve operational efficiency and customer satisfaction.
Choosing the right 3PL provider is crucial for optimizing your supply chain. Discover some of the leading 3PL companies that can transform your logistics operations by offering tailored, efficient solutions in our comprehensive overview of 3PL companies.
Supply Chain Management and Cost Savings with 3PL Services
With their industry knowledge and expertise, 3PL providers identify opportunities for cost savings and process improvements. They can consolidate shipments, negotiate better rates with carriers, or recommend alternative transportation methods.
Additionally, to minimize shipping costs, 3PL providers can leverage their established network of warehouses and distribution centers to bring products closer to end customers..
And finally, the difference between 3PL vs. 4PL
It’s important to understand the difference between 3PL and 4PL (fourth-party logistics) services. While both involve outsourcing logistics functions, there are key distinctions:
- 3PL: A 3PL provider focuses on executing specific logistics tasks on behalf of the client. They act as an operational arm, handling transportation, warehousing, and other logistics functions.
- 4PL: A 4PL provider takes a broader role in managing the entire supply chain. They act as a strategic partner, overseeing the coordination of multiple 3PL providers and optimizing the overall supply chain network.
It’s likely that you’ll need a 3PL, and with the information in this article, you’ll have an easier time choosing one for your business.
Key Takeaways
- Comprehensive Range of Services: 3PL services offer a wide array of logistics solutions including transportation, warehousing, inventory management, and order fulfillment. These services are designed to manage complex supply chain operations efficiently, enabling businesses to focus on their core competencies while leveraging the expertise and infrastructure of 3PL providers for logistical tasks.
- Enhanced Efficiency and Cost Savings: By outsourcing logistics to 3PL providers, businesses can achieve significant cost savings and operational efficiencies. 3PLs possess advanced technologies and systems for real-time inventory tracking, optimized warehousing strategies like Just-in-Time (JIT), and efficient order processing, all of which contribute to reducing overheads, minimizing storage costs, and improving cash flow.
- Scalability and Flexibility: 3PL services are inherently scalable and flexible, allowing businesses to adjust their logistics operations in response to market demands and business growth. Transportation-based 3PLs provide access to a vast network of carriers for cost-effective shipping options, while integrated 3PL services offer tailored logistics solutions covering the entire supply chain, thereby ensuring businesses can scale operations up or down as needed without significant investments in infrastructure or personnel.
Frequently Asked Questions
What distinguishes transportation-based 3PL services from other types of 3PL services?
Transportation-based 3PL services specialize in the movement of goods, including freight management, shipping, and tracking. They differ from other types of 3PL services by focusing primarily on the transportation aspect, leveraging extensive networks of carriers to offer timely and cost-effective delivery solutions. This focus includes managing customs, documentation, and insurance, offering a more specialized service in comparison to integrated or warehouse-based 3PLs that cover broader aspects of the supply chain.
How do warehouse-based 3PL providers enhance inventory accuracy and efficiency?
Warehouse-based 3PL providers utilize state-of-the-art technologies and systems for effective inventory management. They employ strategies such as Just-in-Time (JIT) to minimize storage costs while maximizing efficiency. Automated systems and barcode scanning streamline the order picking and packing process, reducing errors and improving productivity. Additionally, these providers optimize warehouse space utilization with effective storage solutions, ensuring high inventory accuracy and overall supply chain efficiency.
What are the benefits of partnering with an integrated 3PL provider?
Partnering with an integrated 3PL provider offers businesses a comprehensive logistics solution that covers all aspects of the supply chain. These providers act as strategic partners, designing and implementing customized supply chain solutions that coordinate multiple logistics functions. Benefits include improved operational efficiency, customer satisfaction through seamless service delivery, and access to advanced technologies for data-driven decision-making. Integrated 3PL services ensure businesses can manage their supply chain more effectively, adapting to changes in the market with agility and precision.
Nov 2, 2022 | Blog
Are you using BigCommerce for your business? Or, are you thinking about using BigCommerce? We don’t blame you. In fact it’s one of the most trusted eCommerce softwares on the market with a highly rated industry leading customer satisfaction team. This SaaS software can put you ahead of the game when it comes to your online store and it integrates with multiple different softwares your business can utilize.
What is BigCommerce?
If you haven’t heard of BigCommerce, this software provides retailers with a SaaS platform to serve all their eCommerce business. The software includes many customizable services such as online store creation and search engine optimization for businesses of all sizes. BigCommerce is a company who isn’t satisfied with “good enough”. They continually strive to push the boundaries of eCommerce offerings and have won several awards in doing so. No matter what the structure of your business looks like, this solution can work with all business models including multi-storefront, headless commerce, B2B, wholesales, omnichannel, international, and commerce-as-a-service. They offer both enterprise and essential solution offerings so you can pick the package which works best for you and your business. And the open API offers users the ability to tie other softwares for their business needs directly into BigCommerce.
If you’re unsure about the purchase of this software, BigCommerce provides you with key insights into their product before you buy so you know exactly what to expect from the software. With this 17 minute product tour video you get deep insight into the product itself.
Why use BigCommerce?
This is a platform to use if you want to customize your eCommerce solution to fit your way of doing things. Their goal is to offer business owners flexibility, scalability, and the speed and agility needed to protect and grow sales. They even claim that by using BigCommerce, many leading brands have seen significantly lower TCO (total cost of ownership) which gives your product better value in the long run.
Perhaps one of the best features of BigCommerce is the Apps Marketplace. Here you can find 100s of apps and integrations which can help your business with anything from advertising to email marketing. And if you have any issues along the way they offer many forms of customer support including a live chat, phone support, email support, and a listing of common questions with their resolutions. Order management for your business is simple with their order management workflow that starts at receiving an order. It has a built-in list of order statuses which represent the stages within the fulfillment process, and of course the stages can be re-labeled to fit the workflows your business uses. Which means any fulfillment process you currently have, or want to build, will be achievable within this platform.
BigCommerce Fulfillment Options
But at the end of the day, BigCommerce is only a software solution. You still need to decide how best to fulfill your customers’ orders. Especially as you grow or experience seasonal spikes it’s important to have a fulfillment option which can scale as you need it to. This is why we have curated a list below of some of the best order fulfillment services for you as a seller if you use BigCommerce.
ShipHero
This is a great option if you want to dump the headache of running your own warehouse or if you need technology to help streamline your warehouse processes. With both a steller warehouse management system (WMS) and a fully outsourced fulfillment option, their clients get peace of mind. The warehouse management system (WMS) streamlines your warehouse’s entire processes and procedures to increase efficiency and help your team become more effective. The WMS also helps you get rid of manual processes and lost paperwork, confusing fees, and bland generic packaging. Plus, they offer a highly rated Client Support team so you work with a fulfillment expert to help you with any questions or concerns on your supply chain. Overall, whether you want to outsource your order fulfillment or need software to streamline your processes, they have the industry knowledge to help.
Cahoot
This is a great solution when looking at your order fulfillment. They have a quick setup with BigCommerce which allows you to connect your store and delineate your inventory to Cahoot fulfillment locations. In terms of order volume you can start small, then as you grow you can add product inventory in any Cahoot fulfillment center where your products are popular. They have high fulfillment standards and reliable same-day fulfillment Monday through Saturday. Working with them will get you automatic order routing and fulfillment, free and fast shipping options, a nationwide shipping network, and visibility into each delivery. They want to help you level the playing field against marketplaces like Amazon and Walmart who create high shipping expectations with fast and free shipping options for their clients and can help you do so within your own store.
ShipMonk
You can sync your BigCommerce store directly with ShipMonk. Account creation takes seconds and your account is free until you start shipping products from their warehouse. They are a great fulfillment solution for high growth brands who need an elastic fulfillment solution. With their inventory portal, you can identify best selling SKUs and receive restock alerts. Plus they understand shopping cart abandonment is often due to high shipping costs, so they negotiate great shipping rates for those on their platform. And they are not limited to the type of product they can help you fulfill as they have experience with many products from clothing to food and beverage products. In addition, they continually and heavily invest in warehouse automation technology. This means your business will get the advantage of quicker fulfillment at cheaper costs as this technology continues to improve.
Verde Fulfillment
With a direct integration into BigCommerce, Verde Fulfillment is another good choice. Their cloud-based system gives you real-time access to many features including back orders. They can also help your business with all the frustrating product returns, especially because you want your customers to have the best experience possible when they have to return something. In addition their inventory management system is intuitive and smart as it’s updated in real-time. And, as you know, limiting SKUs in your supply chain is important. With Verde you can set inventory alarms which automatically help you to know when a product has low value and you can quickly disable it from your shop. Their goal is to offer your clients the best experience possible so they will become repeat customers.
Amazon MCF
New to the BigCommerce App Marketplace, you can integrate with the Amazon Multi-Channel Fulfillment (MCF) network in order to fully automate your fulfillment. This gives your BigCommerce orders the power of reliable Amazon fulfillment, even if you don’t sell directly on the Amazon site. With the Amazon MCF network you’ll get faster shipping, your customers will receive delivery promises at check out, and you can benefit from automatic inventory placement. These are Amazon-backed delivery dates so your customers know they will arrive ontime. Plus with Amazon MCF you can set customer price rules in order to have control over the cost of shipping. You can even replace Amazon’s rate with a rate of your own, or offer free shipping options.
Streamline Fulfillment
Streamline Fulfillment will connect directly to your BigCommerce store and handle your order fulfillment, shipping, and supply chain management on a global scale. When you sign on with Streamline an expert will work with you to analyze every part of your fulfillment process. In this consultation they will listen to your future plans and needs, while gaining an understanding of where you are currently at in your logistical journey. Together they will work with you to improve these processes so your company can save time and money. Which means you will get a tailored approach to your fulfillment specific to the needs of your business. For them an intimate relationship with their clients is important as they hope to be a partner their clients can trust to help them grow their business.
Fenix Commerce
With Fenix Commerce, you get an AI-powered solution which streamlines the order experience. It has API’s for easy integration and supports all major eCommerce platforms, including BigCommerce. They can help you reduce shipping costs because their software can intelligently select the cheapest shipping providers which will get an order to its destination within the necessary shipping window. Plus the platform can route orders to specific fulfillment centers so you can optimize your inventory management by keeping products within customer proximity. And if you need to get set up quickly they can have you up and ready to go in as little as two days. Which means you have quick data to help you make high quality logistical decisions for your company. They specifically seek to help retailers and DTC brands provide a high quality experience to their customers.
Deliverr
This order fulfillment solution allows you to fulfill your orders with 2-day and next day delivery. They handle your port to porch logistics with the goal to help businesses of all sizes offer competitive shipping. With their vast network you can keep your product within 100 miles of your customers. And they understand that your business may require multiple fulfillment and logistics services in order to fill your business needs. With them you can mix and match logistical services as you build out your company’s future. Plus, if you like the idea of Amazon’s MCF fulfillment, Deliverr’s transparent pricing model is competitive with Amazon’s MCF network. And the prices you see with the cost calculator on their site includes receiving, picking and packing, order handling, packaging, and shipping to any destination in the US.
ShipWire
This order fulfillment software works with BigCommerce and is available via Order Desk. It’s a ready-to-use integration which doesn’t require in-depth knowledge to set up. With ShipWire you get access to order entry directly from BigCommerce to ShipWire automatically, order tracking with expected delivery dates, multi-ship support to handle multiple shipping address on an order, order sync daily, and an inventory sync from ShipWire to BigCommerce four times a day. ShipWire is also a global fulfillment solution so it’s a great option if you have customers outside of the US. They specifically work to fulfill orders within eCommerce, direct-to-customer, retail, and dropship channels. Plus they have been operating for over 40 years! Which gives you a marid of logistical expertise at your fingertips.
Flowspace
This is a great easy to use platform for eCommerce brands. The Flowspace has a connected network of fulfillment centers nationwide which allows you omnichannel fulfillment at scale. With their software you can retain customer data, beat customer expectations, and support your omnichannel eCommerce. You can connect your brand with a one click integration and begin optimizing your inventory with the Network Optimization algorithm. This helps you identify the fulfillments centers needed for your business and can help you to determine how best to allocate your inventory. They make fulfillment easy by handling the process of picking, packing, and shipping your product. And it connects everything in one place offering an eCommerce command center where you can organize your orders and inventory, and gain customer insights.
Conclusion
When it comes to customer retention and shopping cart abandonment, every eCommerce store is looking for ways to improve the customer experience. If you use an order fulfillment system alongside your BigCommerce store you can streamline those processes and give your clients a high quality experience. Companies who ship faster and share tracking information along the way build customer retention. This is why the fulfillment solution you choose is such an important choice. Aside from your store, it’s one of the most palpable processes within your business a customer will experience. And if you use one of the above fulfillment services, you get the chance to leverage the knowledge of logistical industry experts who are as dedicated to quality as you are.
Don’t work with BigCommerce? Find the best carriers for many of the highest profile marketplaces on the web.
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Top 10 Best Order Fulfillment Options for eCommerce Sellers
Dec 1, 2022 | Blog
What is Salesforce Commerce Cloud?
Salesforce is continually hailed as one of the largest technology companies in the world. As they build, purchase, and partner with different services, their aim is to have any tool you need for your business available within their software.
And now, Salesforce has expanded this offering with Salesforce Commerce Cloud. Formally Demandware, this service is cloud-based and helps companies centralize the way they engage with customers during the sales and shipping process. This offering helps you to sell and fulfill on any channel, deliver fast and efficient fulfillment, offers order lifecycle visibility, simplifies complex order routing, and allows your business to scale on a trusted platform. Plus it integrates into several fulfillment and shipping partners your company may need to utilize.
What is Order Fulfillment?
Order fulfillment is the all important task of assembling and shipping an order to your customer. It is the process in which a product goes from your warehouse to your customers front porch all inclusive of packing, shipping, and handling. Though Salesforce Commerce Cloud gives you in depth information on customer profiles, connects your inventory and fulfillment data to your CRM, and automates sending an order to your fulfillment partner, it does not yet have the option to get your product to your customer for you. Meaning you will need to find a fulfillment partner to work with in order to complete your logistical process.
How Does Salesforce Commerce Cloud Fulfillment Process Work?
With this commerce portal, you can connect to a provider’s platform, and send them orders for your business. The platform can connect to the fulfillment and shipping provider of your choice with custom API connections and workflow automations. And as orders are completed you can filter this information back into your Salesforce instance to get historical data on your customers.
What Does A Salesforce Commerce Cloud Order Fulfillment Provider Do?
Once an order is received, a fulfillment provider will pick the order from your inventory. Pack it, including any specialized packing or boxes for your company. Print shipping labels and send it to your customer on your preferred method of shipment. Many fulfillment providers have their own shipping trucks take your product directly from the fulfillment facility to your customer. Others contract with other shipping companies to get you the best competitive shipping rates on the market.
What Are the Benefits of Using a Salesforce Commerce Cloud Order Fulfillment Service?
With the Salesforce Commerce Cloud you can connect your commerce channels to your marketing and sales channels so you can see the big picture in one place. This platform will help you reduce costs, increase sales, and is a flexible and trusted commerce solution. With in depth automation you can customize workflows and processes specific to your company. And when it comes to selling where your customers shop, Salesforce Commerce Cloud can connect to any channel. As your business needs grow you can continue to integrate and scale with others within their vast partner network.
Find out more about ShipHero’s Fulfillment Solution!
Factors to Consider While Selecting an Order Fulfillment Partner for Salesforce Commerce Cloud
Order Fulfillment Speed
The speed of your fulfillment is a big factor when customers make the decision to return to your store. In a world of single day and two day shipping, waiting any longer can stop your customers from completing orders, and send them looking elsewhere. As you search for order fulfillment partners keep this in mind and look for their average shipping times as well as expedited shipping time and costs so you can get your product to your customers when they want it.
Storage and Fulfillment Fees
When you store inventory with a fulfillment partner, they will likely utilize different fees for different aspects of your inventory. These fees could be regarding weight and size of the product, as well as fees to get your order picked, packed, and shipped. They can range roughly $3 to 5$ per item. And if you have multiple items in an order at once, some companies offer a bulk rate.
Pricing
Additional costs for fulfillment providers may include storage costs, inventory distribution costs, bin occupation, palletizing costs, and much more. These round up to your overly monthly cost with a fulfillment provider. As you hunt for the perfect fulfillment partner, you can ask for a breakdown of costs in order to understand exactly what you’ll be paying and why. The best fulfillment partners will look at your current fulfillment spend, compare it to your needs, and help you find a process which saves you money and returns more margin to your pocket.
Returns Management
The hassle of returns can quickly turn off a customer. If they have a bad experience with your product, then have a bad return experience, you can almost guarantee they won’t purchase from you again. A good fulfillment provider can help you navigate the road to returns with return automation, warranties, and exchanges. Then they can also help you either ship the product back to a manufacturer (if the problem is a manufacturer defect) or restock the item into your inventory though this may come with restocking fees.
What To Look For In A Salesforce Commerce Cloud Fulfillment Partner
eCommerce Platform Integration
This integration is important because it will help connect your business systems together. Which means you can see your customers orders, inventory, sales, marketing, and accounting in one place. It gives you the advantage by allowing your brand to keep up when many customers convert on multiple channels at once. And it helps you eliminate manual data entry, and improves order accuracy and automates customer notifications through their buying journey. An integration into your eCommerce platform is essential.
Multichannel Integration
In your eCommerce strategy, multichannel integration means you have the ability to connect different systems or platforms involved in your eCommerce strategy together so you can streamline the processes between them and create a consistent shopping experience for your customers. With a multichannel integration you can sell online, instore, on amazon, on etsy, and many other locations. Marketplaces like Amazon, eBay, Google, and Walmart are key places to sell and a prime example of multichannel retailers.
Ease of Use
Whatever platform you choose, you shouldn’t need to be a rocket scientist to use it. Keep ease of use in mind when searching for a fulfillment provider. These solutions should make your life easier, not more complicated.
How We Chose the Best Salesforce Commerce Cloud Fulfillment Companies
The companies below can integrate directly into your Salesforce Commerce Cloud and are decided to help your business fulfillment processes shine. Each of them have specific pros and cons which we have evaluated and outlined for you below. Remember, choosing a fulfillment partner for your business makes a big difference for the customer experience, so make sure you choose a partner who understands your needs!
Best Salesforce Commerce Cloud Fulfillment Companies
Here are the Best Salesforce Commerce Cloud Fulfillment Companies:
If you want to dump the headache of running your own warehouse, or if you want to run your warehouse more efficiently, ShipHero has a solution. With a fully outsourced fulfillment option their clients have a powerful all encompassing logistics solution at their fingertips.
Pros
- Fully outsourced fulfillment solution
- User-friendly software interface
- eCommerce Integration
- Effective customer support
Cons
- Only 8 owned and operated warehouses
Pricing
- 0$ Setup
- Pick, pack, box & postage included in cost
- Can request a quote on website
- Flat rate, no zone pricing
Find out more about ShipHero’s Fulfillment Solution!
2. Unicommerce
This cloud based eCommerce solution can help automate your logistical needs. They ship directly to the customer, and provide a consistent customer experience with their omnichannel retailing solutions.
Pros
- Simplifies order processing
- Easy to use software
- Sell in various marketplaces
Cons
- Return management isn’t available
- Doesn’t work with FBA sellers
Pricing
- Choose from Standard, Professional, or Enterprise plans
- Can request a quote in the website
3. ERPAG
This cloud-based ERP (Enterprise Resource Planning) system is designed with small businesses in mind. It is a simple, fully customizable platform with inventory management capabilities.
Pros
- Small Business in mind
- Account integration included
- Customer Portal
- More than 50 shipper integrations
Cons
- eCommerce Integration only with Shopify, WooCommerce, Square, and Magento
Pricing
- 15 day free trial
- Pay by number of users
- Transparent pricing of $25/user/month
4. NetSuite
Acquired by Oracle in November 2016, NetSuite can help you host eCommerce stores, manage your inventory, track financials, and update customer relationship management systems.
Pros
- Cloud based ERP system
- Wholesale Distribution
- Software suite with additional plugins
Cons
- Works best if all systems are tied back to NetSuite
- Heavy learning curve
Pricing
- Schedule a product tour
- Monthly licensing fee + user fees
5. GoFrugal
An easy to use omnichannel ERP, GoFrugal helps you transform the customer experience and start online business with low investment. Plus if you join their ONDC network, you can push your market reach to new heights!
Pros
- ERPs for Retail, Restaurant, Distribution
- Help revamp the customer buying experience
- Loyalty program module
- Easy to use
Cons
- No way to bulk update prices
- Users report support team experience could be improved
Pricing
- Includes starter, standard, professional, and ERP plans
- Pay as you grow with cloud pricing
6. Zoho Inventory
This online inventory management software helps growing business in the US. With them you can manage and fulfill orders, streamline multiple sales channels, and oversee your warehouses. You can even manage your inventory on the go as their app works on both Android and iOS devices.
Pros
- Multiple shipping integrations
- End-to-end tracking
- Warehouse management
- Several out of the box integrations
Cons
- Focused on US businesses only
Pricing
- Free to sign up
- Allows for a demo account
- Pricing plans include several different options to choose from
Find out more about ShipHero’s Fulfillment Solution!
7. ShippingEasy
On their website, ShippingEasy claims to give their clients access to the lowest USPS shipping rates in the industry. Plus their easy-to-use platform integrates quickly and helps you automate workflows within your business.
Pros
- Discounted USPS and UPS shipping rates
- Automatic order imports
- Award winning support
- Several marketplace integrations
Cons
- Doesn’t store or handle your inventory
Pricing
- Free plan option
- Paid plan includes free trial
Final Thoughts
Your fulfillment journey will continually change. As you grow and expand so too should your fulfillment partner. We hope the above offers you several options you can consider as your business grows and moves through its fulfillment journey.
Order Fulfillment for Salesforce Commerce Cloud FAQs
What Is Order Fulfillment in Salesforce?
In salesforce Order Fulfillment will help you streamline the picking, packing, and shipment of your orders. It includes a package within the CRM which contains simple flows and processes you can use to create a fulfillment strategy for your business.
How Do I Create a Fulfillment Order in Salesforce?
In Salesforce, you can build automated processes to streamline your order fulfillment. Meaning when a customer selects “order”, your process will automatically send the order to the fulfillment provider you partner with.
What Is Included in Salesforce Commerce Cloud?
With the Salesforce Commerce Cloud, you get several features including the tools to create a highly responsive eCommerce website, Commerce Cloud Endless Aisle, Commerce Portals, Order Management, and access to extensive partners to help you with any business need. This is built directly into the core Salesforce Platform and is available to current users at an added cost.
Dec 30, 2022 | Blog
What is IoT?
The Internet of Things (IoT) refers to the interconnectedness of everyday objects, such as appliances, vehicles, and other items, that are equipped with internet connectivity and sensors. This allows them to collect and exchange data, enabling them to be controlled and monitored remotely. The goal of the IoT is to make our lives easier and more efficient by allowing us to access information and control a wide range of devices from anywhere, at any time.
The Role of IoT in Warehouse Management
IoT technology can be used in warehouse management to improve efficiency and productivity. For example, IoT sensors can be used to track the location and condition of inventory in real time, allowing warehouse managers to quickly and accurately assess the availability of items. This can help to reduce the time and labor required for inventory management tasks, such as stock-taking and reordering. Additionally, IoT sensors can be used to monitor the condition of the warehouse environment, including temperature and humidity levels, to ensure that inventory is stored in optimal conditions. This can help to prevent damage and spoilage of goods, improving overall warehouse efficiency.
How Does IoT Warehousing Work?
In the context of warehousing, IoT technology can be used to improve various aspects of the operation, such as inventory management, asset tracking, and temperature control.
For example, sensors can be placed on warehouse shelves to track the inventory levels of individual items. This information can then be sent to a central system, allowing managers to have real-time visibility into the status of their inventory. Additionally, RFID tags can be attached to assets, such as pallets or containers, to automatically track their location within the warehouse. This can help improve the efficiency of operations, as workers can quickly and easily locate the items they need.
Components of IoT Warehouse Automation
IoT Devices
These types of devices usually utilize smart sensors and gather data so it can be processed by any IoT-based systems. These devices can help monitor the warehouse and can track placement of assets and items left in a warehouse.
Gateway
This connects the IoT devices to your warehouse management system. These connections can happen through the WiFi network, a bluetooth connection, an ethernet connection, or even a cellular network.
Server
The server should be a dedicated computer which receives the raw IoT data. This data will be processed into insights or saved for future use. And it largely helps in automation of warehouse processes because a server sends commands to smart devices with developed algorithms. You can use two types of servers for your IoT warehouse automation, the first is a cloud-based server which means the shared server is maintained by a third-party company. And the second is an on-premises server which is a server physically installed in your warehouse that creates a local IoT device network.
Application
This is what is installed on your desktop so the user can interact with the data collected from IoT devices and also allows the user to send commands to IoT devices from their computer to help and maintain the warehouse management inventory tracking system.
Edge Computing
If you are a larger warehouse with a high amount of IoT systems, you are likely to use edge computing. This layer sits between the gateway and data storage and allows extra edge nodes to review data from the smart IoT devices and send direct commands without the information needing to be reviewed by the central server or an application user.
Benefits of IoT Warehouse Automation
The use of IoT (Internet of Things) technology in warehouse automation can bring numerous benefits to businesses. Some of these benefits include the following:
Real-Time Tracking
One of the main advantages of using IoT in warehouse automation is the ability to track and monitor inventory in real-time. This can help businesses reduce the amount of time and effort spent on manual inventory checks and improve the accuracy of their inventory records. In addition, IoT technology can be used to automate many warehouse tasks, such as picking and sorting items, which can help increase productivity and reduce the need for manual labor.
Reduced Operating Costs
When using an automated warehouse you often require less space and staff. Plus because of the IoT programing you will likely experience a reduction of costs because these processes prioritize and reduce congestion, improve sustainability efforts, and optimize processes.
Increased Performance
Because IoT optimizes your warehouse, you’ll find your ability to pick and pack orders as well as onload and sort inventory has increased both in speed and efficiency. The IoT sensors offer data on how to optimize working areas and allow you to reduce the use of manual labor and occurring errors.
Improved Inventory Management
With IoT devices you’ll have continual visibility into your inventory because the RFID tags within these devices will provide the information needed. You can track the status of materials (raw, work-in-progress, finished goods) as well as the type of materials. Plus you’ll always have an accurate inventory count.
Automated Maintenance
IoT devices use predictive maintenance which means you can schedule maintenance and inspection routines systematically so your business and your clients can avoid experiencing the frustrations of unplanned downtime.
Enhanced Forecasts Accuracy
Because of the consistency in understanding inventory counts and order volumes, with IoT devices your forecast accuracy will skyrocket. Which means you will have a stronger understanding of what to purchase more of and what is just sitting on your shelf.
Reduced Risks
IoT technology can help improve the safety of warehouse workers by enabling the use of automated equipment and robotics. This can help reduce the risk of accidents and injuries on the job, improving overall workplace safety.
Detailed Analytics
Another benefit of IoT-powered warehouse automation is the ability to collect and analyze data on warehouse operations. This data can be used to identify areas for improvement and optimize warehouse processes, leading to increased efficiency and cost savings. For example, data analysis can help businesses determine the most efficient routes for picking and packing orders, reducing the amount of time and effort spent on these tasks.
Devices for IoT Warehouse Management
RFID Tags
RFID stands for radio-frequency identification. An RFID tag is a small device which uses radio waves to transmit information wirelessly. It typically consists of a small chip and an antenna, and are commonly used in a variety of applications, including inventory tracking, access control, and contactless payments. In the context of warehousing, RFID tags can be attached to pallets, containers, and other assets to automatically track their location within the warehouse. This can help improve the efficiency of operations, as workers can quickly and easily locate the items they need.
Smart Sensors
Warehouse smart sensors are sensors used to monitor and track various aspects of a warehouse, such as inventory levels, temperature and humidity, and the movement of goods. These sensors are typically connected to the internet, allowing them to transmit data to a central system where it can be accessed and analyzed. They can also be used to track the inventory levels of individual items, providing real-time visibility into the status of the warehouse’s inventory. This can help managers ensure they have the right products on hand to meet client demand, and can help prevent stock-outs and overstocking.
Beacons
An IoT beacon is a device which uses Bluetooth technology to transmit a signal to nearby devices, such as smartphones or other sensors. Beacons are often used in location-based applications, such as retail stores or museums, to provide information or services to nearby clients or visitors. In warehousing, IoT beacons can be used to track the location of assets and inventory within the warehouse. A beacon attached to a pallet of goods can transmit its location to a central system, allowing managers to track the movement of goods within the warehouse in real-time.
AI Cameras
AI cameras are cameras which are equipped with artificial intelligence (AI) technology, allowing them to analyze and interpret the visual data they capture. This can enable them to perform tasks such as object recognition, facial recognition, and motion detection. Using AI cameras in a warehouse allows employees to track the movement of goods within the warehouse, providing real-time visibility into the location of inventory and assets. AI cameras can also be used for security purposes, such as monitoring access points and identifying unauthorized individuals.
GPS Trackers
Warehouse GPS trackers are devices that use the Global Positioning System (GPS) to track the location of assets and inventory within a warehouse. These devices typically consist of a GPS receiver and a transmitter, which are attached to the assets being tracked. Warehouse GPS trackers can help workers quickly and easily locate the items they need, reducing the time and effort required to find and retrieve items. Additionally, GPS tracking can help prevent loss or theft of assets, as managers can monitor the movement of goods within the warehouse and identify any unauthorized activities.
Smart HVAC Systems
Smart HVAC systems, or smart heating, ventilation, and air conditioning systems, are HVAC systems equipped with sensors and connected to the internet, allowing them to be controlled and monitored remotely. The use of smart technology in HVAC systems allows for greater control and efficiency. For example, sensors can be used to monitor the temperature and humidity of a space, and the system can be automatically adjusted to maintain optimal conditions.
Latest IoT Warehousing Trends
Automated Guided Vehicles
Warehouse automated guided vehicles (AGVs) are robotic vehicles used in warehouses to move goods and materials from one location to another. These vehicles are equipped with sensors and other technology that allows them to navigate autonomously within the warehouse, following predetermined paths or instructions. AGVs can be used for a variety of tasks in a warehouse, such as moving goods from one location to another, loading and unloading trucks, or transporting materials to and from production areas. They can operate 24 hours a day, seven days a week, providing a reliable and efficient means of handling goods within the warehouse.
Blockchain Item Tracking
Blockchain item tracking refers to the use of blockchain technology to track and manage the movement of goods and assets within a supply chain. Blockchain is a distributed database technology that allows multiple parties to securely record and verify transactions without the need for a central authority. While item tracking a blockchain can be used to create a shared and immutable record of the movement of goods and assets within a supply chain. Each transaction, such as the transfer of ownership or the movement of goods from one location to another, can be recorded on the blockchain, providing a transparent and verifiable record of the item’s history.
AR Glasses
AR glasses, or augmented reality glasses, are wearable devices which can superimpose digital information onto the real world. In a warehouse setting, AR glasses can be used to provide workers with real-time information and guidance, helping them to perform their tasks more efficiently. By simply looking at a particular shelf or location, workers can see the items stored there, along with any relevant information, such as quantity or expiration date. This can help workers quickly and easily locate the items they need, reducing the time and effort required to find and retrieve items.
Drones
Drones, or unmanned aerial vehicles (UAVs), can be used in warehousing for a variety of tasks, such as inventory management, asset tracking, and security. For example, drones equipped with sensors and cameras can be used to scan warehouse shelves and automatically count and track the inventory levels of individual items. This can provide real-time visibility into the status of the warehouse’s inventory, allowing managers to quickly and easily identify any shortages or overstocks.
Key Takeaways
Overall, using IoT to automate your warehouse is a good way to boost your efficiency and bring your warehousing operations into the future. If you’d like to talk to an expert on how to automate your warehouse, check out ShipHero!
IoT in Warehouse Automation FAQs
What is Warehousing Automation?
Warehouse automation encompasses anything which automates and improves the efficiency of warehouse tasks. This can include software, hardware, people, and robotics which can be integrated in every part of warehouse operations including unloading and sorting inventory, picking and packing items, capturing warehouse data, automated retrieval of items, and automated shipping processes.
What is IoT Automation?
IoT automation refers to the use of IoT (Internet of Things) technology to automate various processes and tasks. IoT automation involves the connection of physical devices, such as sensors and actuators, to the internet, allowing them to send and receive data. In a warehouse setting, IoT automation can be used to improve various aspects of operations, such as inventory management, asset tracking, and temperature control.
How IoT Improves Warehouse Operations?
While IoT is a new trend in the logistics industry, it is one way in which many warehouses have found the answer to every warehouse’s question: How do I ship faster and more accurately? With IoT, many warehouse processes can be automated in order to reduce operation costs, boost performance, reduce human error, and lower risks.
Aug 2, 2023 | Blog
The path to Shopify success is paved with efficient inventory management, streamlined order fulfillment, and the power of the perfect Warehouse Management System (WMS). Join us as we explore the vital role of a top-notch WMS in revolutionizing your operations. Because the right WMS can be the game-changer that propels your business to new heights of success.
What is a Warehouse Management System (WMS)?
Efficient inventory management systems are crucial for success. This is where a WMS comes into play. A WMS is a software solution that helps businesses optimize their warehouse operations, improve inventory control, and streamline order fulfillment processes.
What is Shopify?
Shopify is a leading eCommerce platform that empowers entrepreneurs and businesses of all sizes to set up online stores and sell products to customers worldwide. With its user-friendly interface, robust features, and extensive app ecosystem, Shopify has become the go-to choice for retailers, merchants, and sellers across the globe.
What Should a Shopify WMS Do?
A Shopify WMS should seamlessly integrate with your Shopify store and provide a wide range of functionalities to enhance your inventory management and order fulfillment processes. It should also offer features such as real-time inventory tracking, accurate order management, efficient replenishment capabilities, and comprehensive reporting and analytics. With a WMS, you can achieve optimal inventory control, streamline operations, and deliver exceptional customer experiences. And without it, your fulfillment might get backlogged or even miss entire orders!
Criteria for Choosing the Best Shopify WMS
When selecting a Warehouse Management System for your Shopify store, several key factors come into play. Here are some to consider:
Connection
A seamless integration enables real-time data synchronization, ensuring that your inventory levels, order statuses, and customer information are always up to date. With automatic updates flowing between Shopify and your WMS, you can eliminate manual data entry and the risk of data discrepancies. Whether it’s tracking inventory levels, monitoring order statuses, or accessing customer information, a reliable connection is vital for maintaining a cohesive and efficient workflow. This means the integration capabilities of your WMS partner should be robust.
Features
When evaluating different WMS options, thoroughly assess the features they offer. Each WMS provides different features so you should find the one that most aligns with your specific business needs and goals.
Start by evaluating the inventory tracking capabilities of the WMS. Look for features that enable real-time tracking of inventory levels, allowing you to have a clear view of stock availability and prevent stockouts.
Next, consider the order management features. A robust Shopify WMS should offer efficient order processing, including features such as order consolidation, batch picking, and order prioritization. The ability to manage multiple sales channels, synchronize orders across platforms, and automate order fulfillment workflows can greatly streamline your operations.
Barcode scanning capabilities are another important aspect to consider. Barcode scanning functionality enables faster and more accurate inventory management and order processing.
And lastly, integration with other sales channels is crucial if you sell across multiple platforms. Ensure that the WMS seamlessly integrates with other popular sales channels like Amazon, eBay, or Etsy. This integration enables centralized inventory management and order processing, preventing overselling or discrepancies between platforms.
Cost
Some WMS options may offer subscription-based pricing, where you pay a monthly or annual fee for access to the system. Others may charge transaction fees based on the number of orders processed through the WMS. But while it’s important to consider the cost, it’s equally crucial to assess the potential return on investment (ROI) that the WMS can offer. Calculate the efficiency gains, reduction in errors, and time savings that the WMS can bring to your business. Evaluate how these benefits translate into increased revenue, cost savings, and improved customer satisfaction. By weighing the potential ROI against the cost, you can make a more informed decision and choose a WMS that offers the best value for your investment.
Implementation
Look for a WMS provider that offers user-friendly setup processes and provides clear documentation to guide you through the implementation steps. The availability of reliable customer support is crucial in case you encounter any challenges or have questions during the implementation process. A well-supported and smooth implementation can contribute to a successful transition to the new WMS and ensure minimal disruption to your operations.
The Best WMS for Shopify
After careful consideration of the criteria mentioned above, one Shopify WMS stands out for its exceptional features and seamless integration: ShipHero. ShipHero offers a comprehensive and user-friendly solution for warehouse management, order fulfillment, and inventory control. Its robust feature set sets it apart as one of the best options for Shopify users. In fact, 10% of all Shopify Plus stores globally use ShipHero!
ShipHero provides real-time inventory tracking, allowing you to monitor stock levels and make informed decisions about replenishment. With efficient order management capabilities, you can streamline the entire fulfillment process, from picking and packing to shipping. The platform also offers comprehensive reporting and analytics, empowering you to gain valuable insights into your business performance and make data-driven decisions. Plus, its user-friendly interface is available on both mobile and web platforms!
To explore how ShipHero can transform your Shopify store, click here!
Key Takeaways
When selecting a WMS for your Shopify store, you can find the right WMS by considering these four factors: connection, features, cost, and implementation. These factors will determine the effectiveness and efficiency of your warehouse management and order fulfillment operations. And ShipHero emerges as a top contender in the WMS landscape due to its impressive array of robust features, seamless integration with Shopify, and user-friendly interfaces. With ShipHero’s commitment to excellence, you can confidently take your eCommerce business to new heights.
Frequently Asked Questions
What are the Advantages of using a WMS for an eCommerce Business?
Using a WMS for an eCommerce business brings numerous advantages, including improved inventory accuracy, enhanced efficiency in order fulfillment, reduced errors and mistakes, better visibility into inventory levels and customer experience, and streamlined reporting and analytics for informed decision-making.
How does WMS Improve the Efficiency of Order Fulfillment?
A WMS enhances order fulfillment efficiency by providing real-time inventory tracking, optimizing warehouse operations, automating tasks such as picking and packing, enabling accurate order management, and providing comprehensive visibility into order status and fulfillment processes.
How to Choose the Right WMS for Your eCommerce Business?
To choose the right WMS for your eCommerce business, consider factors such as seamless integration with your eCommerce platform (such as Shopify), robust inventory management features, scalability, user-friendly interfaces, efficient order management capabilities, and reliable customer support. Additionally, evaluate cost-effectiveness and compatibility with your specific business needs and goals.
Mar 28, 2023 | Blog
Introduction: Navigating the Business Landscape with Logistics
Imagine embarking on a strategic journey, akin to a meticulously planned road trip. In the business landscape, logistics serves as the roadmap that ensures smooth operations. Inbound and outbound logistics are pivotal components of this roadmap. In this article, we will delve into the intricacies of both outbound logistics focuses and provide insights on optimization. Just as a well-charted route is essential for a successful road trip, a robust logistics strategy is vital for seamless business operations.
Understanding Logistics in the Business Context
Logistics management, in the commercial sphere, pertains to the systematic movement of goods, materials, and inventory from one location to another. It is a comprehensive process that includes inventory management, adding packing slips, transportation, and final delivery of incoming goods. To meet evolving customer demand and expectations, businesses must maintain a high level of coordination and oversight throughout these processes. This involves a complex web of relationships with suppliers, carriers, and partners. The difference between a successful logistics operation and an inefficient one often lies in the quality of these relationships and the systems in place.
The Role of Logistics in Business Operations
Logistics is instrumental in determining a business’s success trajectory. It is the backbone that ensures timely delivery of goods in optimal condition. By refining logistics processes, businesses can realize cost efficiencies, enhance operational effectiveness, and carve a niche in their respective markets. Effective logistics operations also involve data-driven decision-making, technology integration, and a network of reliable partners to optimize inbound logistics. In some areas, the use of ltl (less-than-truckload) carriers, efficient routes, and trucks can make a significant impact on the efficiency of outbound logistics services and operations.
Differentiating Inbound and Outbound Logistics
Inbound logistics revolves around the movement of raw materials and goods into a company’s premises, encompassing activities from sourcing to warehousing. Conversely, the outbound logistics process is about delivering the final products to the end-users, from ecommerce fulfillment to transportation. While both are interlinked, they necessitate distinct strategies. Mastery over both is crucial for a company’s success, and their optimization demands meticulous planning and execution. For example, the relationship between a company’s inventory planning and its manufacturing process can determine the efficiency of its supply chain management.
The Significance of Inbound and Outbound Logistics
Inbound logistics is the linchpin that ensures timely availability of raw materials at competitive prices, facilitating efficient production. On the other hand, outbound logistics is pivotal for swift and efficient product delivery to customers, enhancing customer satisfaction. By streamlining both, businesses can achieve reduced delivery times, curtailed shipping costs, and heightened customer satisfaction. The control system in place, from order packaging in the warehouse to distribution centers to outbound transportation via carriers, plays a vital role in this service process.
Enhancing Logistics Management with Software Solutions
Leveraging software, such as ShipHero’s warehouse management software, can significantly enhance the management of both inbound and outbound logistics operations. It is paramount to select a solution that caters to both processes comprehensively. Incorporating systems that offer visibility into stock information and freight rates can further optimize how outbound logistics services handle their operations.
The Interplay Between Inbound and Outbound Logistics
A robust, efficient inbound logistics framework is a precursor to efficient, outbound logistics processes. Any disruption in the inbound process can ripple into production delays, affecting the outbound process. Hence, prioritizing inbound logistics is essential for optimizing the entire supply chain.
Addressing Challenges in Inbound Logistics
Inbound logistics faces several challenges, including limited real-time shipment visibility, capacity constraints leading to bottlenecks, inefficient processes, communication gaps between suppliers and warehouses, and inventory costs and unexpected disruptions causing shipment delays. The lack of a robust inventory planning warehouse management system can exacerbate these inefficiencies.
Strategies for Optimizing Inbound Logistics
Optimization hinges on areas like supplier management, transportation planning, warehouse operations and inventory management. Building strong supplier relationships can lead to better pricing and delivery terms. Employing transportation planning tools can further enhance efficiency. For instance, understanding the difference in transportation costs when choosing between various carriers can lead to significant cost savings.
Overcoming Challenges in Outbound Logistics
Outbound logistics grapples with challenges like increased costs due to inbound delivery delays, efficiency bottlenecks, need for meticulous planning, communication hurdles, and inbound logistics focuses and leveraging technology for supply chain optimization. The vics (Voluntary Interindustry Commerce Solutions) standards, for example, can help streamline some of these processes.
Strategies for Optimizing Outbound Logistics
To enhance outbound logistics, businesses should focus on inventory accuracy, transportation mode selection, carrier coordination, cost management, and efficient order fulfillment. A blend of technology, automation, and effective communication across distribution channels is the key. Incorporating freight management and packaging solutions can further streamline the process.
E-commerce Integration: Bridging Digital and Logistics Success
The synergy between e-commerce fulfillment and logistics is pivotal for success. It’s like merging two streams to create a powerful river of efficiency. The synchronization of real-time inventory updates, automated order processing, and efficient fulfillment ensures a seamless transition from virtual shopping to real-world sales process and satisfaction. This collaboration between systems amplifies the triumph of online businesses.
Innovations in Reverse Logistics: Transforming Returns for Efficiency
Returned products find new life within the supply chain. Reverse logistics reshapes the journey of returns into opportunities for enhanced efficiency. From reinvigorating electronics to recycling packaging materials, it’s about maximizing utility and fuel costs and minimizing waste. Beyond handling, it’s a process that transforms returns into a circular approach for greater sustainability and customer goodwill.
Blockchain Unveiled: Revolutionizing Transparency in Logistics
Blockchain technology guarantees transparency in the supply chain. It’s like a secure digital ledger ensuring every step is traceable. This clarity fosters trust among stakeholders, mitigates fraud risks, and upholds authenticity. Think of it as a conductor ensuring each note is played correctly; blockchain ensures the notes of logistics are authentic and tamper-proof.
Collaborative Logistics Networks: Enhancing Efficiency through Unity
Businesses form collaborative and delivery networks, to optimize logistics efficiency. Collaborative logistics networks share transportation resources, warehouses, and insights to reduce costs and environmental impact. Just as musicians collaborate to create harmonious music, businesses collaborate to create a harmonious supply chain where efficiency is the melody.
Navigating Global Trade Compliance: Harmonizing Cross-Border Operations
Global trade compliance ensures smooth international trade operations. It’s about understanding and harmonizing diverse regulations to facilitate cross-border movements. Like translators interpreting various languages, global trade compliance ensures that goods traverse international borders seamlessly in line with regulations.
Smart Warehousing: Precision Management of Inventory
Warehouses equipped with AI and sensors execute precision in inventory management. It’s akin to a choreographed performance where products transition smoothly from shelves to shipping. With heightened accuracy in inventory management and streamlined order fulfillment, it’s like orchestrating a dance of efficiency where products move seamlessly from distribution center to their intended destinations.
Green Logistics Initiatives: Promoting Sustainable Solutions
Green logistics initiatives focus on eco-friendly transportation modes and strategies to reduce environmental impact. It’s akin to adopting sustainable practices to deliver goods while minimizing carbon footprints. The focus lies on minimizing environmental impact while ensuring efficient logistics. Trends like Print on Demand are helping overcome inventory wastage.
Analytics: Turning Data into Operational Insights
Logistics data transforms into actionable insights that harmonize operations. It’s like crafting a symphony where each instrument plays in sync. Analytics orchestrate efficient inbound logistics processes, ensuring all elements of the operation are well-coordinated and in tune.
Customs Brokerage Services: Guiding Cross-Border Movements
Navigating international borders involves the expertise of customs brokerage services. These services ensure smooth movements through customs procedures, ensuring compliance and uninterrupted transportation operations and cross-border logistics.
Emergency Logistics: Coordinating Swift Responses
Emergency logistics coordinate backup plans and swift actions, ensuring uninterrupted operational rhythm, even in challenging situations.
Key Takeaways: Navigating the Logistics Landscape
- Optimizing inbound logistics can significantly boost outbound logistics.
- By focusing on both, businesses can enhance efficiency, reduce costs, and gain a competitive edge.
- With the right strategy, technology, and execution, businesses can navigate any unexpected roadblocks and arrive at their destinations smoothly and efficiently.
Inbound and Outbound Logistics FAQs
What is an example of inbound logistics?
Inbound logistics involves managing the movement material handling of raw materials and supplies into a company’s facilities. For instance, a manufacturer procuring PCBs from a supplier, coordinating its transportation, and storing it in the warehouse is an example.
What is an example of outbound logistics?
Outbound logistics pertains to delivering finished products to customers. A clothing retailer whose outbound logistics involves fulfilling an online order by picking, packing, and shipping the item to the customer exemplifies this.
For a deeper dive into supply chain efficiencies, check out this article. To understand the nuances of warehousing, explore what is warehousing.
Oct 17, 2022 | Blog
Operations management in eCommerce refers to what goes on behind the scenes to make an eCommerce company successful. A big part of operations management is inventory management, which is an essential part of running a profitable business.
Effectively managing your inventory means having a good grasp on what items are in your inventory and how they should be stocked going forward. The 80-20 rule in inventory management can give insight into what products are in demand and which are delivering the most profitability.
What is the 80/20 Inventory Rule?
The Pareto Principle is a well-known concept that states that approximately 80 percent of results come from 20 percent of causes. There are many possible applications of this principle in the business world.
In eCommerce inventory management, the 80/20 rule shows that 20 percent of a company’s inventory generates 80 percent of sales. If you apply this rule to your current inventory, the next step is to determine what products are in the 20 percent that are generating most of the sales or profits. Shelves should be stocked with these products at all times.
Deciding What to Do with Lower Performing Inventory
Clearly, eCommerce businesses need to increase the on-hand stock of items that fall in the 20 percent range of what is considered high-performing inventory. At the same time, decisions have to be made about how to manage inventory that may not be performing as well.
For products that aren’t in the 20 percent that are most profitable, consider those that are in the middle of the range and think about what needs to change to make these items more appealing to clients. Those that have been identified as the least effective performers may need better marketing or may need to be replaced with different products.
What Are Some 80/20 Rule Examples?
There are many examples of ways the 80-20 ratio may be applicable in the business world and in everyday life. Consider a few of them:
- Staff – 20 percent of a company’s staff is generating 80 percent of the profits.
- Clients – 80 percent of sales come from 20 percent of clients.
- Wealth – 20 percent of the population possesses 80 percent of the wealth.
- Complaints – 20 percent of your clients are responsible for 80 percent of complaints against your company.
- Accomplishments – 80 percent of your accomplishments happen during 20 percent of your invested time.
- Web content – 80 percent of your web traffic is driven by 20 percent of your web content.
- Projects – 20 percent of your work projects produce 80 percent of your stress.
- Effort – 20 percent of effort leads to 80 percent of results.
The main thing to be learned from the 80/20 rule is to look for the smallest things that are producing the biggest results. Work toward eliminating the 80 percent that’s not producing the results you’re looking for, or look at what changes could make a difference.
Applying the 80/20 Rule to Operations Management Decisions
Decisions must be made in operations management that affect the future results of a company. Using the 80/20 rule can provide important insights into many aspects of your eCommerce business. It’s a powerful guideline that can help managers identify where success and profitability are coming from and what strategies may need to be revised.
Analyze data and trends to find out the top 20 percent of categories such as best-selling products and sales that are improving. Are the items that are the top sellers the same as the items that are delivering the most profitability? Consider what items in the bottom 20 percent could be discontinued without creating a lot of client dissatisfaction.
Better Inventory Planning with the 80/20 Rule
When the 80/20 rule is applied to inventory, the insights gained can help you to fine-tune your inventory planning strategies and better align your decisions with the desires of your clients. This knowledge helps you to have a better idea of what items should be kept in stock.
Keep in mind that the 80/20 rule is a guideline but it’s not a guarantee. New products and services shouldn’t be discarded too quickly. Products that haven’t made it into the top 20 percent may still have the potential to generate profits somewhere down the line with the proper marketing on social media or other sources.
Continuous Monitoring
Using the 80/20 rule provides reliable timely data that can be used to improve profitability and reduce costs. Eliminating products that are selling poorly can reduce inventory held in warehouses and the costs associated with them.
Applying the 80/20 rule to operations and inventory decisions in eCommerce isn’t something that should be applied only once. Continuously monitor what products are boosting profits and what changes might lead to better results. Work to identify the 20 percent of business resources that are producing 80 percent of your results and focus most of your efforts on optimizing that 20 percent.
To find out more about ShipHero’s fully outsourced fulfillment solution, talk to one of our Fulfillment Experts today.
Click HERE to Schedule a Meeting with Our Sales Team.
About ShipHero
ShipHero is a US-based, leading solution provider in the fast growing eCommerce fulfillment space. ShipHero served over $5 billion of eCommerce orders in 2020 and is growing rapidly. ShipHero provides warehouse management software for brands that operate their own warehouses as well as outsourced fulfillment as a service from ShipHero owned and operated North American warehouses. Some notable customers include Universal Music Group, Glossier and Canadian Tire. ShipHero is a Shopify Plus partner and more than 10% of Shopify Plus stores globally use ShipHero.
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