Ode DeJoy, Titanic 2 …

Mar 26, 2021 | Blog, The Packet

Front and Center

Ode DeJoy
Postmaster General Louis DeJoy announced on Tuesday the 10-year plan for making necessary improvements to the USPS, including making delivery times… longer? Well, at least the post office hours will stay open… shorter?

Wut.
You heard that right. Beyond their adorable new vehicles which have already hit the streets, the 10-year plan, called Delivering for America, includes a much-needed $40 billion investments in modern package processing equipment and carrier devices, vital upgrades to post offices and uniforms, and implementation of new employee training which will help these overworked carriers from going postal. It will also dial down delivery time expectations for first-class mail from a 3-day standard… to a 5-day standard.

HOW COULD THEY?
I KNOW! Lawmakers are outraged and have already called to oust the PostMaster General for this plan. DeJoy notes in the plan that they have not been able to meet this 3-day standard for the past 8 years, but they expect to meet this 3-day approximately 70% of the time. They will be moving First-Class Mail from air transportation, which is costly, unreliable and carbon emission-heavy, to sustainable ground transportation.

Well, that’s good.
Maybe I <3 my mail carrier too much, but these changes sound necessary to improve the overall health and operations of the USPS in the long run. Not to mention, it shows a further shift towards sustainability in logistics operations, a common theme we’ve seen week after week.

Back of the Packet

Titanic 2
One of the largest container ships in the world has run aground in a sandstorm and blocked all traffic through the vital Suez Canal water passageway in Egypt, which CNN reports, accounts for approximately 30% of container ship traffic globally each day. Shipping delays and higher gas prices are predicted to affect consumers around the globe, as tug boats have been tugging their little hearts out around the clock to dislodge the titanic, 220,000-ton ship.

Running Train
Announced on Tuesday, the first rail network has connected the US, Mexico and Canada in a $29B deal between Canadian Pacific Railway and Kansas City Southern, in a move that seems to kick President Biden’s promise of the Second Great Railway Revolution. The Canadian Pacific Railway links east and west coasts between the US and Canada, while Kansas CIty Southern connects US, Mexico and Panama, with the major networks connecting on a single point at a joint facility in Kansas City, Missouri.

ShipHero News

Building a Customer Loyalty Program… with Science!
“Be loyal to those who are loyal to you. And respect everyone, even your enemies and competition.” Who knew that customer loyalty programs could be summarized so perfectly by a man who can’t be seen… yes, it’s a John Cena quote. Check out our latest blog to learn how your business can build its own customer loyalty program… with science!

The Fulfillment Innovation Wheel: Resilient Shipping
Is your business sufficiently protected from supply chain risks like extreme weather events, supplier disruptions, and well… pandemics? If not, find out how with ShipHero’s Fulfillment Innovation Wheel series – Resilient Fulfillment.

Monthly Inventory Report: Putting the Spotlight on Your Goods

Mar 28, 2023 | Blog

Inventory management is key to a company’s operations. A critical part of this is making sure all products are accounted for. An effective inventory and inventory audit report helps in achieving this and minimizing errors that can harm the company’s profits and brand.

What Is an Inventory Report?

An inventory report is a crucial document detailing a company’s physical inventory. It lists each item, its quantity, location, and condition. This information helps companies understand their own inventory analysis, report stock levels, identify out-of-stock items, and decide the necessary restocking. This insight aids in knowing your company’s assets and the profits tied to them.

Importance of Inventory Reporting

Good, accurate inventory reporting is essential for smooth operations and high-quality customer service. Having a categorized inventory list with details about each item is invaluable for any business.

Categorizing Inventory

Grouping products based on attributes like type, size, color, or use helps understand stock levels and detect patterns. This grouping aids in allocating resources and maintaining popular items on the shelf, making ordering more efficient.

Inventory Tracking

Accurate tracking of inventory items helps avoid over-ordering and excess inventory. It also helps identify slow-moving items, which can be liquidated to free up resources and reduce costs.

Better Customer Service

Accurate inventory reporting metrics impacts customer service directly. Knowing what products are available and their location is key to fulfilling orders quickly, which leads to satisfied customers.

Improved Forecasting

Analyzing inventory data over time helps predict future inventory needs, preventing stockouts and reducing waste. This information can help calculate the exact amount you need to spend on new inventory.

Types of Inventory Reporting

Inventory reports come in several types:

Physical inventory reports involve manually counting items.
Sales reports track sold items over a given period.
Order reports provide visibility into the inventory levels needed for orders.
Reorder reports track inventory levels and provide restocking recommendations.
Forecasting reports use historical data to predict future inventory needs.

How to Perform an Accurate Monthly Inventory Report

Here’s how to perform a monthly inventory report that helps you understand your inventory position effectively:

Build Inventory List: Create a comprehensive inventory list with all product information.
Establish a Timeframe: Decide the frequency of your inventory report.
Choose a Report to Run: Choose the type of report that suits your needs.
Run that Report: Use your inventory management software to generate the report.

Understanding Inventory Accuracy Rate

The inventory accuracy rate calculates the percentage of units correctly accounted for. It’s a useful tool for understanding how well your company is managing its inventory.

Understanding Inventory Turnover

Inventory turnover is a key metric in inventory management and provides valuable insights into a company’s sales and purchasing effectiveness. It measures both how much inventory and often a business sells and replaces its inventory within a certain period, typically a year.

The formula for calculating inventory turnover is:

Inventory Turnover = Cost of Goods Sold (COGS) / Average Inventory

A high inventory turnover rate could suggest strong sales or effective inventory management. However, if the rate is too high, it might indicate inadequate inventory levels, which could lead to stockouts and lost sales. Conversely, a product inventory usage report with low turnover rate might indicate slow sales, excess inventory, or issues with product pricing or quality.

Understanding your inventory turnover rate allows for better stock control, aids in managing cash flow, and helps you make data-driven business decisions.

The Real Cost of Keeping Inventory

Understanding the cost of keeping unsold goods is critical for inventory management. This cost is sometimes hidden but contributes significantly to the total value of a company’s expenses.

Keeping inventory has several costs:

Storage: Paying for warehouse space is clear. But, remember to add utilities, security, and other costs as well.
Insurance and Tax: You need to insure unsold goods against damage or loss. Also, in some places, you might have to pay property taxes on inventory.
Value Loss: Over time, certain goods, like electronics and perishables, can lose value. This loss, called depreciation, is another cost to consider.
Missed Opportunities: Money spent on unsold goods can’t be used elsewhere in your business. This is an opportunity cost.

Why should you care about the cost of keeping inventory? It informs decisions on how much stock to keep. If holding costs are high, you might want less inventory. But, if running out of stock means losing sales and making customers unhappy, holding more inventory could be worth the cost.

To sum up, knowing the cost of keeping inventory is essential for smart inventory management. You need to balance between having enough stock to meet demand and reducing the costs of keeping unsold goods.

Delving Into Inventory Valuation Methods

Inventory valuation is crucial for accurately reporting a company’s financial status and calculating the cost of goods sold – an essential component of the inventory turnover equation.

There are several inventory valuation methods, each with its benefits and drawbacks:

First-In, First-Out (FIFO): This method assumes that the first goods added to inventory are the first ones sold. During periods of inflation, FIFO can result in lower costs and higher profits.
Last-In, First-Out (LIFO): In contrast to FIFO, LIFO assumes that the last goods added to inventory are the first ones sold. In times of inflation, LIFO can lead to higher costs and lower reported profits. However, this may result in tax advantages, since taxes are often based on profit.
Weighted Average Cost: This method involves calculating an average cost per unit every time a new batch of inventory is purchased. The weighted average cost changes each time an inventory purchase is made.

Selecting the right inventory valuation method depends on your business model, tax situation, and financial goals. It’s a crucial decision that should align with your overall inventory management strategy.

Remember, effective management of inventory turnover and inventory valuation are key to maintain optimal stock levels, minimize costs, and maximize profitability. Understanding these concepts forms an essential part of a successful inventory management system.

Cycle Counting: A Proactive Approach

Cycle counting is an ongoing process that counts a portion of the inventory at different times. Regular cycle counts help discover stock discrepancies early, allowing for prompt action.

The Benefits of Regular Cycle Counting

Regular weekly and monthly reports on cycle counts offer real-time data on inventory and allow for better forecasting. They also help uncover cases of theft and damage, providing a chance to improve control measures.

Incorporating Technology for Accurate Inventory Control

Digital solutions are becoming more popular for inventory control. Today’s systems offer dashboard views of inventory levels, barcodes for quick stock taking, free inventory report templates and automated processes to reduce human error.

Utilizing Excel for Inventory Management

Excel is a handy tool for inventory management. Templates in Excel format help monitor inventory effectively, for inventory managers with records of SKUs, cycle counts, and inventory discrepancies.

The Human Element in Inventory Management

Employees play a vital role in inventory management. Regular training sessions should be held to educate them about the importance of inventory control.

The Bottom Line

Inventory accuracy is crucial to a company’s success. By incorporating regular cycle counts, investing in technology, and educating employees, companies can optimize their product inventory and storage, enhance customer experience, and build a stronger brand reputation.

Maximize Efficiency with Warehouse Inventory Management

Jul 12, 2023 | Blog

Maximizing the efficiency of your warehouse processes is good for business on so many levels. It helps warehouse workers fulfill more customer orders successfully during a single shift. It also enables inventory control which leads to fewer product losses through damages or expiration. Proper inventory management enables you to be on time with replenishment, reducing customer wait times and improving customer satisfaction.

What Is Warehouse Inventory Management?

Warehouse inventory management is an important part of warehouse operations. It is the process by which you keep track of the inflow, outflow, storage, condition, and location of goods in warehouses. Sophisticated warehouse management software enables you to manage inventory tracking in large warehouses, or even to manage two or more warehouses in which your company stores its stock.

How Do Warehouse Inventory Management Systems Work?

Warehouse management systems respond when you scan the SKUs on individual products during warehouse picking. They also keep track of the items you are adding to your stock with each new delivery that the warehouse receives. The employees must simply scan an item, and the system will tell them where to put it. When they pick an item for delivery, the software will also alert them of diminishing stock levels and let them know when it is time to contact the supplier to restock that item.

Why Is Warehouse Inventory Management Important?

Warehouse management increases the velocity of the supply chain, helping all the businesses involved in the sales and delivery of the goods to profit. It is an essential component of supply chain logistics. By relying on automation technology, warehouse management software reduces the risk of human error, as well as health hazards in the workplace. Warehouse management efficiency enables goods of any size, shape, or seasonality to get from the vendor to the customer without expiring or getting damaged.

Boosts Warehouse Productivity

Any warehouse has only a limited amount of space, and each employee only has so much time in one workday. Organization and efficiency make all the difference in how much productivity you can get from your warehouse and your workers. The dashboard on an employee’s handheld device will give the employee clear instructions about what to do next with each article he or she picks and give an idea of the big picture about the article’s journey to the customer. The various tools and functions of the software will help employees troubleshoot issues quickly so that they can fulfill their orders quickly.

Improves Order Fulfillment Accuracy

It takes a long time for an employee to look at every item on a shelf until he or she finds the right one, or for an employee to scan the barcode of every identical box on the shelf until the correct item is located. Warehouse management software includes instant reporting methods that show the employee where to go and which items to pick. The employees do not have to verify each serial number by hand. With automated guidance, it is easy for employees to find the correct items, even if the items do not have high visibility.

Increases Customer Satisfaction

Not only does efficient warehouse management make the jobs of warehouse employees easier, but it also improves customer satisfaction. Warehouse management software provides insights about where to store the most sought-after items for easy access and when stock levels are getting low enough for a restock. It also allows you to keep tabs on new deliveries as they approach your warehouse, so you can give customers a realistic estimate of when their orders will arrive. Therefore, customers do not have to worry about their items arriving late because the requested item was out of stock.

Faster Shipping and Deliveries

Without warehouse inventory management software, it is very difficult to manage a large number of items and process them quickly. Warehouses that deal in a high volume of goods need automation to enable them to receive goods and ship orders without delays, to keep the supply chain moving efficiently.

Saves You Money

Warehouse management software can do in minutes what it would take an entire team of warehouse managers and employees several days to do. Inventory management technology enables you to free up time for your employees to do the things that only humans can do. It also enables them to have accurate and up-to-date information at their fingertips. By reducing delays and mixups, warehouse inventory management helps businesses of all sizes save time and money.

Warehouse Inventory Management Best Practices

Even with the world’s greatest warehouse inventory management software, you still need a trustworthy warehouse manager to make executive decisions about the warehouse and its inventory. Likewise, a warehouse is only as efficient as its layout, so you should carefully plan the layout of your warehouse before making decisions about inventory management. After that, you should decide how the workflow should go and then engage your warehouse management software to implement it.

How to Implement Warehouse Inventory Management?

Warehouse inventory management is a multi-step process. Once the workflow gets going, your automated warehouse management technology can make it go smoothly and efficiently, but first, you need to do some preliminary planning and setup.

Determine the Warehouse Layout

No two warehouses are alike, so you should choose the warehouse layout that works best for your company. Think about which items need the most visibility and about how much your stock changes based on seasonality. Also, think about how easy it should be for people or vehicles to access the various areas of the warehouse.

Establish a Workflow

Just as every warehouse has its own ideal layout, every warehouse has its own ideal workflow. You can rely on data to inform your decisions about workflow, but human warehouse managers should have the final decision about how the workflow in the warehouse should go.

Appoint a Warehouse Manager

Even if your warehouse management software can keep track of the workflow at multiple warehouses at the same time, you should still appoint a warehouse manager for each warehouse. A human manager can detect issues that software cannot, and only a human being can manage interpersonal conflict among warehouse employees and other stakeholders.

Implement Warehouse Inventory Management Software

Once you choose a warehouse management software to implement your inventory management system, everyone’s work at the warehouse will get easier. Getting used to any new software is a learning process, though. Build time into your schedule to train the warehouse employees on how to use the new warehouse inventory management software.

Key Takeaways

Your e-commerce business can thrive with the help of automated warehouse management. The right layout and the right warehouse management software can help your company be more productive and operate more efficiently.

Warehouse Inventory Management FAQs

These are some frequently asked questions about warehouse inventory management:

What Are the Types of Inventory?

Across industries, inventory tends to fall into four categories, namely raw materials, work in progress (WIP), finished products, and maintenance, repair, and overhaul (MRO). Each type of inventory requires a different warehouse layout. Warehouse management software can help you manage all four types of inventory in different warehouses.

What Are the Main Steps in Inventory Management?

The first step in inventory management is to appoint a warehouse manager. Next, you must determine the appropriate layout for your warehouse, as well as its appropriate workflow. Then you are ready to choose a warehouse management software to automate the process. Once your workflow has started, you can replenish the inventory according to a schedule or on an as-needed basis.

What Is the Inventory Formula?

The inventory formula is (cost of goods sold plus ending inventory) minus purchases. It may seem like a simple mathematical formula since it only requires addition and subtraction, but it is much easier to do with the help of inventory management software.

Marketing Strategies: Learn From Evan Johansen of Auri | PalletSide Chat Ep. 3

Dec 15, 2022 | Blog

At just 22 years old, Evan Johansen is already a serial entrepreneur. He’s the mastermind behind Auri, a gummy company taking the internet by storm. In this PalletSide Chat, Johansen shares how he turned his mushroom gummy idea into a booming business. He proves your dreams can become tangible successes with hard work and clever marketing strategies.

In this blog post, we’ll look at some of the marketing techniques used by Johansen for his business. With this information, you can create a successful marketing campaign.

Market your Business like a Pro

The ad game can be tough, especially for smaller eCommerce brands. At first, the numbers could have been better for Auri on the ad side of things. However, Johansen was convinced that a little extra effort could pay off big time in terms of profitability. The keys to success were more content and improved user experience on their landing page. And guess what? Doubling down on those areas paid off, and now he’s seeing substantial ad profits. It shows that sometimes investing more upfront can lead to major rewards. Don’t give up on your ad strategy just yet – keep improving, and you never know where it might take you.

“I would rather take something that maybe isn’t the best idea and take bad action versus no action at all, because at least if you’re taking bad action, you’re figuring [it] out.” -Evan Johansen.

Social Media Strategies that Work

Being creative is key. Staying on top of trends and finding ways to adapt them to your brand can make all the difference in standing out from the crowd. One successful tactic Auri has been using lately is creating videos in the style of the popular social media platform TikTok, then sharing them across all our other channels. As an entrepreneur, being able to pivot and react quickly to changes or new challenges is crucial – and in the fast-paced world of social media, that means constantly coming up with fresh ideas and staying ahead of the curve. So, don’t be afraid to experiment and try new things.

In Johansen’s experience, higher ad spending often correlates with higher ROAS (return on ad spend) and better results overall. Plus, split testing allows for testing and improvement, like adding additional informational pages or trying out different ad styles. Ultimately, the key to success is constantly iterating and putting more effort into what’s already proven effective.

User-Generated Content

It’s no surprise that social media users are jumping on the UGC (user-generated content) bandwagon, creating content for brands and raking in cash. But as a brand, it’s essential to avoid getting caught up in the craze and overpay for UGC. Plus, don’t discount “lower-quality” content. Sometimes simplicity resonates more with social media users and can result in even higher engagement. Bottom line: stay grounded amidst all the UGC hype and focus on finding what works best for your brand.

“It’s all about pivoting, readjusting, and that’s the name of the game. When you’re an entrepreneur you need to be able to pivot very quickly.” -Evan Johansen.

Advertising Tactics to Control Ad Spend

Let’s face it, we live in the age of ad overload. With so many platforms and options for ad placement, it can be tempting to try and do a little bit of everything. But as Johansen wisely points out, it’s important to focus your efforts on the platforms yielding the best results. Constantly utilizing new ad channels may seem impressive, but they drain resources if they aren’t producing results. Instead, focus on maximizing your efforts and streamlining your ad strategy for maximum effectiveness. In the world of advertising, sometimes less is more.

The world of ad spending is constantly evolving, and it can be tempting to chase after the newest platform. Still, at the end of the day, a successful ad strategy rests on creativity and measurable results. As tempting as the potential for “arbitrage” may be on a platform like TikTok, it’s not worth investing in ad spending if there is no way to track conversions and ROI. Creativity is essential in grabbing attention and driving engagement, but it also needs to result in a direct return on investment. Sticking to this philosophy allows for a streamlined, successful ad strategy that consistently delivers results.

Social Media Advertising Tools

Tools like Facebook Ad Library and AdSpy make it easier than ever to peek behind the curtain and see what campaigns are performing well. Simply typing in a keyword can uncover a wealth of advertisements tailored to your interests. And for those interested in TikTok ads, PiPiADS offers estimates on ad spending and engagement metrics for added insight. So, the next time you need social media inspiration, turn to these tools for an inside look at what’s working for other brands.

“What I found with advertising, at least for us, is once you find what’s working, you have a test that you can then iterate off of.” -Alex Lewkowict.

Flexible Fulfillment

The key to success in eCommerce is often speed and efficiency, and that’s where Auri has found a helpful ally in fulfillment partner ShipHero. Working together, they can quickly fulfill orders and keep cash flowing, even during periods of backorder. Backorders may sound like a negative for customers, but the truth is it’s a testament to the popularity and high demand for Auri’s excellent products. Automated emails ensure that customers are always kept in the loop, making for a seamless and stress-free shopping experience.

“Yeah, {ShipHero} has just been an absolute game changer for that {flexibility}, because if I was working with a different fulfillment company that was not flexible, we would not be able to do what we’re doing. It’s almost a foundation of it all.” -Evan Johansen.

Thinking Outside the Box

Evan Johansen proves that your dreams can become a reality if you market them correctly. He also provides insight into how he identified his target market and controlled ad spending while still pumping out creative content. So, if you’re feeling lost in the world of marketing your business, take heart—Johansen has been there too. And he’s come out on top by never giving up and constantly innovating his strategy. So, what are you waiting for? Listen to the interview (and try some Auri gummies while you’re at it!)

So, what can you learn from Evan Johansen about marketing your startup? First and foremost, it’s important to be creative. You need to find a way to stand out from the crowd, which means thinking outside the box. Second, it’s essential to tweak your content until you find what works, don’t be afraid to experiment. The best campaigns are always evolving!

Have any questions or comments? Let us know by emailing us at podcast@shiphero.com.

—

Listen HERE

About the Hosts: As VP of marketing, Dan Van Meer is always on the go. From overseeing project management and data analytics, he has his hands in a little bit of everything. Most importantly, he ensures that all creative work – from graphic design to digital marketing – is high quality and on-brand. Co-host Alex Lewkowict is quite the renaissance man. He’s been an adolescent entrepreneur, successful CEO, and Founder of a men’s skincare line, and he created One23 Fulfillment. Did we mention he made the Forbes 30 under 30 list?

What Is Lot Tracking and Why is it Important?

Apr 21, 2023 | Blog

Lot tracking is a pivotal component of warehouse inventory management process and plays a significant role in the distribution, storage space logistics, and movement of goods within a company. It involves assigning lot numbers to batches of specific inventory items that enter your warehouse. This system is crucial for food and beverage products, as well as other items with a defined shelf life. Adhering to this method simplifies adherence to FDA regulations, minimizes waste, and shields companies from potential legal repercussions during product recalls. An effective lot tracking system allows for efficient product movement and management of recalls, ensuring products past their expiration aren’t unnecessarily occupying warehouse space.

What is Lot Tracking?

Lot tracking entails giving a unique batch number to every consignment of perishable goods that reaches your warehouse from vendors. This ensures that even if inventory is spread across multiple warehouses overseen by various distributors, the origin and details of each batch remain clear through the lot numbers. The purchase order system can further streamline this by ensuring that each order is correctly matched with its respective lot number.

Lot management is indispensable in several industries, including aviation, electronics, and pharmaceuticals. For warehouses storing food, beverages, medicines, or cosmetics, lot control is mandated for regulatory compliance. The FDA mandates the tracking of these goods to ensure that, in the event of contamination, affected products can be swiftly identified and prevented from reaching customers. Learn more about inventory position here.

How Does Lot Tracking Work?

The process involves attaching identical barcodes to all packages of a product from the same shipment. This is applicable to both raw materials and finished food items destined for retail or direct customer delivery. For example, bags of flour arriving from Kansas on April 1 would share a lot number, distinct from the lot number assigned to frozen french fries from Idaho delivered on April 2. This system ensures that items with the same lot number are recognized as being from the same batch, distinct from those with different lot numbers. Processes in place ensure that each step, from receiving to shipping, is meticulously tracked. Discover more about inventory tracking here.

Why Is Lot Tracking Important to Inventory Management?

The primary significance of lot and batch tracking lies in quality control. If a batch faces contamination or defects, all items with the corresponding lot number can be isolated or inspected meticulously. This not only safeguards product quality but also enhances customer satisfaction and safety. Moreover, businesses can promptly inform the supplier about any issues with the batch tracking their products, facilitating timely resolutions and identifying the root cause.

The Mechanics of Lot Tracking

The process of lot tracking involves attaching identical barcodes to packages of a particular product from the same shipment. This practice applies to both raw materials and finished goods, ensuring items with the same lot number are recognized as part of the same batch. Comprehensive processes track each step, from receiving to shipping.

Quality Control Anchored in Lot Tracking

Lot tracking’s core significance lies in maintaining product quality and safety. In cases of contamination or defects, isolating or inspecting the entire supply chain inventory with the corresponding lot number prevents distribution of subpar products. Swift communication with suppliers fosters timely resolutions and issue identification.

Benefits of Lot Tracking

Lot tracking provides insights into sales patterns, procurement, and transportation logistics. It aids employees in locating necessary raw materials for production. The transparency of lot numbers expedites the production process, reduces costs, and ensures timely identification of contaminated batches. Services offered by third-party logistics providers can further enhance the efficiency of this system. Learn about critical KPIs in inventory management here.

Eliminate Human Error

Leveraging inventory management software for lot reports offers significant business advantages. Employees and customers can trust software-generated reports, fostering seamless communication between teams, warehouse managers, and manufacturers regarding inventory data and potential defects or contamination. This system is especially crucial for items like food ingredients or cleaning supplies but is equally beneficial for other products.

Have a Full Supply Chain Overview

Lot tracking provides a comprehensive view of the entire supply chain. Given the intricate requirements and dynamics of supply chain logistics, lot tracking ensures highest quality in both inventory control and timely identification and resolution of issues, preventing widespread distribution of defective products and averting substantial financial setbacks for companies.

Get Specific Data of Product Lots

FDA-regulated products, including foods, beverages, cosmetics, pharmaceuticals, and household cleaners, necessitate lot tracking system. Certain electronics, particularly those with components bearing expiration dates, also require this system.

Which Products Need Lot Tracking?

FDA-regulated products, including foods, beverages, cosmetics, pharmaceuticals, and household cleaners, necessitate lot tracking. Certain electronics, particularly those with components bearing expiration dates, also require this system.

Streamlined Lot Tracking with Software

Utilizing an inventory management system and software generates reliable reports, fostering seamless communication among teams, warehouse managers, and manufacturers. This proves vital for industries handling sensitive products such as food ingredients or cleaning supplies.

Convergence of Lot Tracking and Emerging Tech

Lot tracking merges with emerging technologies like blockchain and IoT. Blockchain ensures security and transparency of lot tracking data, while IoT devices enable real-time lot tracking process, and monitoring, enhancing efficiency and visibility.

Lot Tracking Best Practices

Use Barcode Scanning: Speed up the process and minimize errors by scanning barcodes instead of manual entry.
Lot Adhering: Streamlines the tracking process and optimizes warehouse space utilization.
Store Your Lots Wisely: Use ERP or inventory management software to strategize lot storage.
Fulfillment by Lot: Enhances the accuracy and speed of the fulfillment process.
Use Lot Tracking Software: Facilitates intra and inter-warehouse communication.
Strategy for Short-Dated Items: Prioritize items with shorter shelf lives when implementing a lot tracking system.

Key Takeaways

Lot tracking is vital for FDA compliance, waste reduction, and efficient warehouse operations.
It’s essential for perishable items and those under FDA regulations.

Lot Tracking FAQs

What Is Lot Tracking in Manufacturing?

It’s the assignment of a unique code or lot number to batches of items produced on a specific date, ensuring traceability in case of defects or recalls.

What Are the Benefits of Lot Traceability in Manufacturing?

It ensures compliance with safety recalls, minimizes legal risks, and helps in efficient product distribution.

What Is the Purpose of Lot Number?

It provides information about the product type, production details, and expiration date.

What is 3PL Inventory Management Software? And Why Do You Need One?

Feb 16, 2023 | Blog

Streamlining operational processes and maximizing efficiency is critical to a successful business model. Using 3PL Inventory Management Software, companies can manage their products and receive orders accurately – all while maintaining oversight of their entire supply chain system! Read more about how this innovative technology helps businesses flourish.

What is a 3PL Inventory System?

A 3PL (Third-Party Logistics) inventory system offers a sustainable cost-saving solution for businesses that may otherwise have difficulty managing and maintaining their inventory. By outsourcing these tasks to a third-party logistics provider, companies gain access to specialized resources, including advanced inventory management tools and tracking systems.

The advantages of using a 3PL inventory system are numerous, from reducing overhead costs to freeing up internal resources for more strategic projects. Ultimately, this system can maximize efficiency and optimize processes for higher-quality outcomes.

What is 3PL Inventory Management Software?

3PL inventory management software provides various tools and features to help third-party logistics providers manage a company’s inventory more effectively. These solutions streamline processes, providing an integrated and automated business workflow for receiving and tracking inventory, managing orders, creating shipping labels, and producing reports.

The software also brings real-time inventory management visibility into inventory levels from an array of data points, so companies can take advantage of important reorder points or unintentionally order beyond their needs. This offers companies greater efficiency in their supply chain operations and order fulfillment services.

Benefits of 3PL Inventory Management Software

Using 3PL inventory management software has numerous advantages to help your business grow. When utilizing this software, you can enjoy improved accuracy, efficiency, visibility, cost savings, scalability, and flexibility. With real-time data tracking of your inventory levels, you can reduce stockouts or overstock by making informed decisions promptly. Outsourcing your warehouse and inventory management saves costs associated with maintaining them within your organization. Furthermore, the software is designed to quickly scale up or down as needed to accommodate business growth or seasonal fluctuations in demand. And it is also very customizable so that no matter what your business needs are, the software has you covered!

Reduced Costs on Both Ends

3PL (Third-Party Logistics) inventory software allows providers to manage and track their inventory, which can help to reduce costs in several ways. For example, the software can help to minimize stockouts by providing real-time visibility into inventory levels, which can help to avoid lost sales and the need to rush-order items.

Additionally, the software can help to optimize inventory levels by providing insights into sales trends and demand patterns, which can help to prevent overstocking. This can reduce storage costs and minimize the risk of obsolete inventory.

For clients, using 3PL inventory software can also help reduce costs by providing real-time visibility into inventory levels and delivery status. This helps to improve planning and forecasting, which helps avoid stockouts and minimize the need for emergency shipments.

Additionally, the software can optimize order processing and fulfillment, which helps to speed up delivery times and reduce transportation costs.

Time Saved Through Automation

3PL (Third-Party Logistics) inventory software can save time by automating many tasks involved in managing and tracking inventory. Some examples of the basic capabilities of automation include:

Automated inventory tracking: The software can automatically update inventory levels and track stock movements in real time, eliminating the need for manual data entry and reducing the risk of errors.
Automated ordering: The software can automatically generate purchase orders based on predefined reorder points, reducing the need for manual order placement.
Automated receiving and put away: The software can automatically process receiving and put away transactions using barcode scanning and RFID technology, reducing the time required for manual data entry and searching.
Automated picking and packing: The software can automate the pick and pack process and optimize it for speed, accuracy, and efficiency by using different techniques such as wave picking, zone picking, and more.
Automated shipping: The software can automatically generate shipping labels and documents, reducing the time required for manual data entry and preparation.
Automated reporting: The software can automatically generate real-time reports on inventory levels, stock movements, sales trends, and more, providing users with the data they need to make informed decisions quickly.

Overall, the automation features of 3PL inventory software can streamline inventory management, improve efficiency, and save time by reducing the need for manual data entry and repetitive tasks.

Customization and Scalability

3PL (Third-Party Logistics) inventory software can offer customization and scalability in several ways:

Customizable workflows: Many 3PL inventory software solutions offer customizable workflows that can be configured to match the specific needs and processes of the user. For example, the software can be configured to handle different types of inventory, such as serialized or lot-controlled items, and can be configured to handle different types of transactions, such as receiving, put away, picking, packing, and shipping.
Customizable reports: Many 3PL inventory software solutions offer customizable reporting capabilities that allow users to create reports tailored to their specific needs. Users can create reports that provide real-time data on inventory levels, stock movements, sales trends, and more.
Scalability: 3PL inventory software is designed to scale with a company’s growing needs. It can handle different inventory volumes, transactions, and several users. Many software solutions can be easily integrated with other systems and configured to support multiple locations, which can help support a business’s growth.
Integration with other systems: 3PL inventory software can be integrated with other systems such as accounting, CRM, WMS, TMS, and more. This can help streamline processes and improve efficiency by eliminating manual data entry and reconciliation.

Overall, 3PL inventory software can offer customization and scalability by providing customizable workflows, reporting capabilities, scalability, and integration with other systems, which can support a business’s growth and changing needs.

Lower Risk for Error

3PL (Third-Party Logistics) inventory software can offer lower risk for error in several ways:

Automated inventory tracking: By automatically updating inventory levels and tracking stock movements in real-time, the software eliminates the need for manual data entry, reducing the risk of errors.
Barcode and RFID scanning: By using barcode and RFID scanning technology, the software can automatically process receiving, put away, picking, and packing tasks, which can help to ensure accuracy and reduce the risk of errors.
Real-time visibility: The software provides real-time inventory management visibility and stock movements, which can help minimize stockouts and overstock, reducing the risk of errors in inventory management.
Error checking: The software can include features that automatically detect and alert users to potential errors, such as duplicate or missing data.
Customizable workflows: By offering customizable workflows that can be configured to match the specific needs and processes of the user, the software can help to reduce the risk of errors by ensuring that procedures are followed correctly.
Audit trails: The software can also provide an audit trail of all transactions, which can be used to identify and correct errors and track inventory movements.

Overall, by providing automated inventory tracking, barcode, and RFID scanning, real-time visibility, error checking, customizable workflows, and audit trails, 3PL inventory software can help to reduce the risk of errors in inventory management.

Insight into Your Clients’ Business

3PL (third-party logistics) inventory software can give insight into a client’s business by providing detailed information about their inventory levels, sales data, and shipping and receiving information. This can include real-time tracking of inventory movements, alerts for low stock levels, and reporting on sales trends and customer behavior.

The software may also provide information on the cost and efficiency of logistics operations, allowing the client to identify areas for improvement and make informed decisions about their supply chain management. Overall, 3PL inventory software can provide valuable insights into clients’ business complex operations and help them optimize their inventory and logistics processes.

How Does 3PL Software Help eCommerce Businesses?

Cost Reduction

3PL (third-party logistics) software can help online retailers’ businesses with cost reduction in several ways:

Automation of logistics processes: 3PL software can automate many logistics processes, such as order processing, shipping, and tracking, which can help reduce labor costs.
Route optimization: 3PL software can optimize logistics routes to minimize transportation costs.
Volume discounts: 3PL software can help eCommerce businesses negotiate volume discount rates with logistics providers, reducing shipping costs.
Inventory management: 3PL software can provide real-time inventory tracking and management, helping eCommerce businesses avoid stockouts and overstocking, which can reduce inventory carrying costs.
Reduced errors: 3PL software can help reduce mistakes in logistics processes, saving money by reducing the need for rework and returns.

Increased Transparency

3PL (third-party logistics) software can help online retailers’ businesses increase transparency in several ways:

Real-time tracking: 3PL software can provide real-time tracking of orders and shipments, allowing eCommerce businesses to monitor their logistics processes and provide accurate delivery estimates to customers.
Inventory management: 3PL software can provide real-time inventory tracking, allowing eCommerce businesses a clear view of their inventory levels.
Data analytics: 3PL software can provide data analytics and reporting capabilities, allowing eCommerce businesses to gain insights into their logistics processes and identify areas for improvement.
Electronic data interchange (EDI): 3PL software can integrate with EDI systems, allowing eCommerce businesses to exchange data with logistics providers and other partners in a standardized format, increasing transparency and reducing errors.
Access to information: 3PL software can provide a centralized platform that allows eCommerce businesses to access all the information they need about their logistics processes in one place, increasing transparency and making it easier to identify issues and make decisions.

Customer Experience

3PL (third-party logistics) software can help eCommerce businesses improve customer experience in several ways:

Real-time tracking: 3PL software can provide real-time tracking of orders and shipments, allowing eCommerce businesses to provide accurate delivery estimates to customers and keep them informed about the status of their orders.
Automation of logistics processes: 3PL software can automate many logistics processes, such as route optimization, order processing, shipping, and tracking, which can help reduce the chances of errors and improve delivery times.
Inventory management: 3PL software can provide real-time inventory tracking and management, helping eCommerce businesses avoid stockouts and overstocking, which can improve availability and reduce delivery times.
Returns management: 3PL software can automate returns management processes, making it easier for customers to return items and reducing the time it takes to process returns.
Customer service: 3PL software can integrate with customer service platforms, providing customer service representatives with the information they need to quickly and accurately resolve customer inquiries and complaints.

Real-Time Visibility

3PL (third-party logistics) software can help eCommerce businesses gain real-time visibility into their logistics processes in several ways:

Real-time tracking: 3PL software can provide real-time tracking of orders and shipments, allowing eCommerce businesses to monitor the status of their logistics processes and respond quickly to any issues.
Inventory management: 3PL software can provide real-time inventory tracking, allowing eCommerce businesses to have a clear view of their inventory levels and to make informed decisions about inventory management.
Data analytics: 3PL software can provide data analytics and reporting capabilities, allowing eCommerce businesses to gain insights into their logistics processes and identify areas for improvement.
Electronic data interchange (EDI): 3PL software can integrate with EDI systems, allowing eCommerce businesses to exchange data with logistics providers and other partners in a standardized format, increasing transparency and reducing errors.
Access to information: 3PL software can provide a centralized platform that allows eCommerce businesses to access all the information they need about their logistics processes in one place, increasing visibility and making it easier to identify issues and make decisions.

The Three Types of Logistics Management Software

Warehouse Management Systems

Warehouse management software (WMS) is a third-party logistics software application that helps businesses manage and track inventory levels, orders, sales, and deliveries within a warehouse or distribution center. It is designed to support the day-to-day operations of a warehouse by providing real-time data and insights on inventory levels, stock movements, and order fulfillment.

A warehouse management system can also be integrated with other systems, such as transportation management systems (TMS) and supply chain management systems (SCM), to provide a more comprehensive view of the entire supply chain.

Some key features of a WMS include inventory tracking, barcode scanning, order fulfillment, and real-time data reporting. It also helps to improve warehouse efficiency, reduce labor costs, and increase customer satisfaction by providing accurate and timely information.

SCM Suites

SCM suites are software solutions that provide businesses with a comprehensive view of their supply chain. They typically include a combination of different software applications, such as transportation management systems (TMS), warehouse management systems (WMS), and enterprise resource planning (ERP) systems, that are integrated to provide a seamless and unified view of all supply chain activities.

SCM suites are designed to help businesses manage and optimize the flow of goods, services, and information from suppliers to customers. They can help companies to automate and streamline supply chain processes, such as demand forecasting, production planning, inventory management, transportation management, and order fulfillment. SCM suites can also provide real-time data and insights on supply chain performance, enabling businesses to make data-driven decisions and improve their overall supply chain efficiency.

ERP Systems

Enterprise resource planning (ERP) systems are software solutions that help businesses manage and automate their core business processes. They are designed to integrate and streamline various business functions, such as finance, accounting, human resources, procurement, and manufacturing, into a unified system.

ERP systems typically include modules for managing financials, accounting, procurement, manufacturing, inventory, and sales, among others. They also provide real-time data and insights on business performance, enabling businesses to make data-driven decisions and improve their overall efficiency.

ERP systems can help businesses automate and streamline operations, improve data accuracy and visibility, and increase efficiency and productivity. They can also help companies to manage and control their financials, including budgeting, forecasting, and reporting.

ERP systems can be deployed on-premises or in the cloud and can be customized to meet the specific needs of a business. Some examples of ERP systems include SAP, Oracle, Microsoft Dynamics, and Infor.

Key Differences

WMS (Warehouse Management Systems), SCM (Supply Chain Management Systems), and ERP (Enterprise Resource Planning Systems) are all software solutions that help businesses manage and automate various aspects of their operations. However, they each have distinct areas of focus and functionality:

WMS: A Warehouse Management System (WMS) primarily focuses on managing and tracking inventory levels, orders, sales, and deliveries within a warehouse. It provides real-time data and insights on inventory levels, stock movements, and order fulfillment.
SCM: A Supply Chain Management System (SCM) is focused on the planning, execution, and control of the flow of goods, services, and information from suppliers to customers. It helps businesses manage and optimize the entire supply chain, including demand forecasting, production planning, inventory management, transportation management, and order fulfillment processes.
ERP: An Enterprise Resource Planning (ERP) system is focused on managing and automating a business’s core business processes across multiple departments, such as finance, accounting, human resources, procurement, and manufacturing. It provides a unified view of all business operations and helps businesses automate and streamline their operations, improve data accuracy and visibility, and increase efficiency and productivity.

In summary, WMS deals primarily with warehouse and shipping operations, SCM deals with the entire supply chain management, and ERP deals with the core business operations across multiple departments in an organization.

Key Takeaways

Some key takeaways from 3PL Inventory Management Software include:

Real-time inventory visibility: 3PL Inventory Management Software provides real-time data and insights across multiple locations, enabling businesses to make data-driven decisions and optimize their inventory levels.
Automated order fulfillment software: 3PL Inventory Management Software can automate receiving, processing, and shipping orders, reducing errors and increasing efficiency.
Integrated with transportation management systems: 3PL Inventory Management Software is often integrated with transportation management systems (TMS) to provide a more comprehensive view of the entire supply chain, from inventory to delivery.
Improved logistics and supply chain operations: 3PL Inventory Management software can help businesses improve their logistics and supply chain operations by streamlining processes and increasing efficiency.
Scalable and flexible: 3PL Inventory Management software is often flexible and scalable, allowing businesses to adapt and grow their operations as needed.
Cloud-based and accessible remotely: Many 3PL Inventory Management software are cloud-based and can be accessed remotely, enabling businesses to manage their inventory and logistics from anywhere.

3PL Inventory Management Software FAQs

Is 3PL Software?

3PL, or Third-Party Logistics, refers to using a third-party logistics provider to outsource logistics and distribution functions for a company. It is not software but a business service that can be managed through software. Examples of logistics software include cloud-based warehouse management solutions and transportation and supply chain management systems.

What Is the Role of 3PL?

The role of a 3PL or third-party logistics company is to outsource logistics and distribution functions for a company. This can include warehousing, transportation, inventory management, etc.

By using a 3PL, companies can focus on core competencies and leave logistics to experts. 3PLs often have economies of scale and access to resources that allow them to provide logistics services more efficiently and at a lower cost than the company could.

What Does a Warehouse Management System Do?

A warehouse management system (WMS) is a software application that helps companies manage and optimize their warehouse operations. It helps to automate and streamline processes such as inventory management, order fulfillment, shipping and receiving, and more.

The main functions of a smart warehouse management system include the following:

Inventory management: tracking the location, quantity, and status of products in the warehouse.
Order fulfillment software: automating the process of picking, packing, and shipping orders.
Shipping and receiving: tracking and managing inbound and outbound shipments.
Barcode scanning and RFID: Automating data capture for inventory management and tracking.
Reporting tools and analytics: Generating reports and metrics on warehouse performance and inventory levels.
Automated Storage and Retrieval Systems (ASRS) and Conveyor systems integration.

A warehouse management system can help companies improve the accuracy and efficiency of their warehouse operations, reduce costs, and improve customer service.

Last Mile Delivery and Other Trends In Order Fulfillment

Apr 7, 2021 | Blog, Fulfillment

As online shopping grows in popularity and ubiquity, retailers and logistics providers have tried to find innovative ways to fulfill consumer expectations. While order fulfillment is still the backbone of retail businesses, today’s customers want fast delivery times. Thus, the main challenge for businesses is to deliver fast while keeping costs low.

The modern customer’s expectations of fast delivery come from online retail speed. By choosing products and finishing purchases with the click of a single button, they get into the mindset that their purchases should be delivered quickly. That’s why ensuring your product arrives at the customer’s door as soon as possible is essential to maintaining customer satisfaction.

Order fulfillment starts when the customer puts the order in and finishes when the item arrives at their door. For most companies, the final leg of the fulfillment process, often called last mile delivery, is the most challenging and expensive.

Keep reading to learn more about last mile delivery and how you can use it to optimize order fulfillment.

Understanding Last Mile Delivery

Last mile delivery is the final part of the order fulfillment process, where a product leaves the warehouse on the way to its final destination: the customer’s home, in most cases. The key challenge of last mile delivery is to ship items as fast as possible while keeping expenses down.

Last Mile Delivery in eCommerce

Last mile delivery can make or break an eCommerce retailer because the customer can find other stores that offer faster or cheaper shipping if you don’t fulfill their expectations. Unfortunately, last mile logistics are expensive – sometimes taking up more than half your logistics costs.

Online retailers and third-party logistics (3PL) companies usually face a dilemma regarding last mile delivery. To offer free or low-cost shipping, they must pay for delivery out of pocket or impose order minimums to cover costs.

Factors That Influence Last Mile Delivery

When you shop online, you may notice a gap between your item being marked “out for delivery” and arriving at your doorstep. This gap and lack of transparency signify an inefficiency in the last mile delivery process.

The last leg of order fulfillment operations usually involves an independent shipping carrier delivering the package from your warehouse to the customer. Several factors influence how long this process takes, such as:

Shipping company or 3PL provider size
Number of orders it handles daily
Carrier pickup frequency
Distance between fulfillment center and recipient
Area characteristics (e.g., rural or urban regions)
Number of deliveries/stops along the route

These hindrances to last mile delivery are usually out of your control and influence shipping times differently. For instance, smaller 3PL companies in rural regions may pick up items every two or three days, while larger logistics providers in urban regions typically schedule multiple pickups daily.

Last mile delivery is becoming necessary as eCommerce gains more ground in the United States. Moreover, the increased popularity of the free shipping movement means more pressure for you to foot the bill or implement minimum purchase amounts to reduce expenses.

Recent Last Mile Delivery and eCommerce Trends

The eCommerce scene is constantly evolving, so online retailers and 3PL companies have to change along with it. Adapting to the latest industry trends lets you capitalize on new opportunities and optimize your fulfillment strategy according to consumer demand.

Here are some eCommerce and order fulfillment trends you should watch out for:

Crowdsourcing and gig economy
Instant order fulfillment
Rise of USPS carrier services
In-house shipping carriers
Last mile delivery upselling
Smart and predictive technology
Fulfillment networks
Real-time package tracking and delivery updates
Autonomous delivery vehicles
Predictive shipping

Let’s dive into each trend and see how they can influence last mile delivery and other aspects of your business.

1. Crowdsourcing and Gig Economy

Crowdsourcing and gig-based delivery services have been rising these past few years. In addition to transport, companies like Uber and Postmates offer delivery jobs to their independent driving partners. While this system is less predictable than traditional route-managed delivery systems, it’s a flexible alternative that companies can use whenever they need something delivered quickly.

2. Instant Order Fulfillment

Thanks to the ubiquity of the Internet and online retail, people can find the products they need within minutes. As the purchase process becomes faster, customers expect fast delivery, resulting in high demand for same-day, one-day and two-day shipping.

As an online retailer or 3PL provider, you most likely use warehouse management software to assist in order fulfillment. However, even the most advanced software has limitations. You must work extra hard to provide same-day order fulfillment if you work in fast-moving industries like pharmaceuticals or food & beverage.

3. Rise of USPS Carrier Services

While private shipping carriers like UPS and DHL are still the most popular shipping choices for online retailers and 3PL companies, the United States Postal Service is also gaining some ground in this field. The USPS has started delivering eCommerce packages to compensate for declining traditional mail deliveries.

USPS often offers free package pickups, making them a strong choice for retailers and 3PL companies who want to save money.

4. In-House Shipping Carriers

Some retailers and logistics providers save money by using their own company vehicles and offering in-house delivery services. While cheaper, this shipping method is only viable in your company’s immediate area.

5. Last Mile Delivery Upselling

Most retailers already upsell on their product pages, but some are adopting last-minute upselling. With predictive technology, companies can guess what other products customers might want and offer them at checkout.

Some companies take upselling even further and stock their delivery vans with items the customer might want, so they can sell an additional item in person. Because this upselling method hinges on impulse purchases, it’s mostly implemented in food delivery.

6. Smart and Predictive Technology

Modern technology benefits both sides of the eCommerce coin. Customers know where their items are at all times through real-time tracking, and they can even monitor their status through temperature and humidity sensors.

Meanwhile, smart technology predicts the weather for retailers and 3PL providers to ensure that perishable and easily-damaged items aren’t compromised.

7. Fulfillment Networks

One of the best ways to improve delivery times and offer same-day delivery is to expand your fulfillment center network. Amazon, which is capable of two-hour deliveries, is one of the prime examples of great fulfillment center usage.

While most fulfillment center networks aren’t as big as Amazon, many companies rent warehouse space out in major cities to provide faster delivery.

8. Real-Time Package Tracking and Delivery Updates

Modern customers expect to receive orders quickly and track the entire shipping process. Fortunately, tracking technology makes real-time product shipping updates possible, giving your customer base complete visibility from when their item ships to when it arrives at their door.

9. Autonomous Delivery Vehicles

The availability of delivery drivers dictates shipping times. Since drivers are human and labor shortages happen, you can’t expect them to deliver goods 24/7. However, recent developments in self-driving cars and drones might mean that 24/7 delivery will eventually be a thing.

There are many gray areas regarding regulations and rules, but there’s also potential in self-driving delivery vehicles. Amazon has already invested $530 million into self-driving cars. Additionally, Amazon debuted the Amazon Scout delivery drone in 2019, with trials as recent as 2020.

10. Predictive Shipping

Reducing delivery times is the most common way to decrease last-mile shipping costs. But what if there’s almost no delivery time at all?

Major online retailers like Amazon are trying predictive shipping, which anticipates product demand based on consumer shopping habits. These companies often use predictive algorithms to determine high-demand seasons for certain items (e.g., fireworks leading up to the Fourth of July) and pre-ship items to local warehouses in anticipation of these demand spikes. This cuts down on delivery time and cost because the products are already halfway there.

Distributor Storage With Last Mile Delivery

Distributor storage is an integral part of last mile delivery. Most fulfillment companies or last mile delivery providers have a network of fulfillment centers where they store your products before shipping them out to customers.

When picking a 3PL provider, look for one with a good spread of fulfillment centers so you can offer high delivery speeds anywhere in the country.

Top Last Mile Delivery Companies

Last mile delivery companies ship items from fulfillment centers to customers. Different companies offer different benefits, so choose wisely.

Here are four great delivery companies used by many businesses and 3PL providers:

FedEx

FedEx is one of America’s biggest shipping companies, delivering packages all over the planet. It’s one of the best options if you’re looking for fast package deliveries and detailed shipment trackers.

However, FedEx’s rates are often higher compared to its peers.

UPS

UPS is another favorite among online retailers because it offers weekend pickups and deliveries. This company also provides same-day and next-day deliveries, which are indispensable for when your customers need their purchases delivered quickly. Moreover, UPS offers a high-volume discount if you’re shipping many packages simultaneously.

But while UPS offers affordable rates for small packages, you may need to pay extra fees and surcharges for heavier items.

DHL

DHL’s global presence means you can easily ship anywhere in the world. DHL also boasts great customer service with quick issue resolution and free pickup fees.

However, DHL doesn’t have a strong American presence compared to its counterparts, so finding a DHL office stateside may be a little more challenging.

USPS

USPS is one of your best options for small and lightweight packages, thanks to its low rates. With Saturday delivery and free home pickups, USPS is perfect for new online retailers who can’t spend too much on shipping.

Unfortunately, USPS doesn’t have a strong tracking system, so customers might not get full shipping transparency. Its customer service has also gotten a bad rap because of numerous unresolved issues.

How ShipHero Improves Logistics and Fulfillment

ShipHero is one of the best 3PL companies for eCommerce business owners. We outsource order fulfillment for over 5,000 stores to boost their shipping times and foster growth.

Here’s why you should choose ShipHero as your 3PL.

Distributed Fulfillment Centers

Keeping your entire stock in one warehouse may lead to high fulfillment costs and shipping delays. At ShipHero, we use distributed fulfillment centers to store your products at warehouses across the country. When your store receives an order, we forward it to the nearest fulfillment center to ensure faster and cheaper delivery.

Shipping Discounts

ShipHero has negotiated shipping discounts with carriers like UPS, USPS, FedEx, DHL and more. This lets us pass the discounts on to you, so you spend less on shipping.

2-Day Delivery and Overnight Delivery Capabilities

Want to build brand loyalty on par with Amazon and grow your market share? ShipHero lets merchants offer 2-day and overnight delivery to help compete with Amazon FBA sellers and other major retailers.

Conclusion

The solution to last mile delivery challenges is not one-size-fits-all. An online retailer or third-party logistics provider may find that a combination of improved technology and analytics could be the solution to rising last mile delivery costs.

There’s no singular solution for last mile delivery issues and challenges. However, using the right technology and analyzing relevant data helps your company develop the best cost-saving measures.

No matter your line of business, last mile delivery is an integral part of it. Always watch the trends and developments to capitalize on new cost-saving opportunities and measures.

ShipHero is a leader in order fulfillment. Contact us today to learn how we can help your eCommerce store.

Last Mile Delivery for eCommerce FAQs

What is eCommerce order fulfillment?

eCommerce order fulfillment encompasses the entire process of taking your product from the factory floor to the customer’s doorstep. Order fulfillment involves your supplier, warehouse manager, 3PL providers and shipping carrier.

What is the difference between drop shipping vs order fulfillment?

The key difference between drop shipping and order fulfillment is the party handling the order. With drop shipping, orders are delivered directly from the manufacturer or supplier. With order fulfillment, purchases are handled by the merchant or 3PL providers.

What are the bottlenecks in the order fulfillment process?

There are many bottlenecks in the order fulfillment process, like inaccurate orders, long packing times and courier delays. To eliminate these bottlenecks, examine your order fulfillment process and identify the cause before engineering a solution.

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About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With over 5,000 brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.

Let us know how we can help you today by scheduling a call HERE.

Is it Time for In-House Fulfillment? 3 Signs You’re Ready to Run the Show

Apr 1, 2022 | Blog

By: Aaron Rubin, Founder & CEO at ShipHero

Getting eCommerce products from the warehouse to the customer has become more difficult than ever. With supply chain disruptions and a sudden rise in online orders, eCommerce entrepreneurs are seeking ways to optimize their delivery processes that allow for heightened visibility and better standards of control over their inventory.

To achieve this streamlined version of shipping, some brands have brought their fulfillment operations in-house. While this can grant you more control over your products and how they’re shipped, it does come with its own costs and some degree of risk. Let’s take a look at what in-house fulfillment entails and how to know your brand is ready to meet the challenge.

What does in-house fulfillment mean?

In-house fulfillment means all facets of the eCommerce shipping process are handled internally, without the help of a third party. By switching your brand to an in-house fulfillment approach, you’ll be responsible for packaging, labeling and mailing products, as well as tracking the order and keeping your customers updated on its progress.

When should you consider in-house fulfillment?

When you’re still trying to get your business off the ground, paying a 3PL to handle your shipping can ease the financial burden associated with fulfillment, but after a while, you might see more value in having control over the process.

Before you decide to take this step, let’s look at a few considerations you should make to guarantee in-house fulfillment success.

Complex Products or Packaging

Most 3PLs and full service fulfillment providers have a standardized process for packaging and shipping their products. If your brand comes with complex packaging requirements, or if your products are especially fragile, managing fulfillment yourself might be a good idea.

This way, you can rest assured that customers receive their orders intact, with the appropriate packaging that provides the intended brand experience.

Order Volume

A relatively low order volume makes it much easier to handle some aspects of fulfillment, like inventory management, on your own. Depending on the size of your warehouse and the available bandwidth of your staff, it might not be worth paying a 3PL to take control of your shipping.

However, if you’re looking to expand your product line or customer base, in-house fulfillment might not be sustainable. As your sales numbers increase, so will the amount of space, inventory and labor required to make a shipment. If you’re anticipating growth, paying for a full service fulfillment provider might be the best way to help your eCommerce brand scale.

Customer Expectations

With major retailers like Amazon setting the standard for eCommerce delivery, you’ll want to make sure your fulfillment operations can keep up with customer expectations. These days, buyers expect their package to arrive within a week or less. If you can’t fulfill these orders within that time frame, it might be time to start looking for a reliable 3PL.

However, if your warehouse is located in an urban area, close to where your customers live, quick delivery becomes much more feasible. Additionally, close proximity to your customers means you can offer other fulfillment options, like in-store or curbside pickup.

How to manage in-house fulfillment

Before you move fulfillment in-house, it’s important to ensure that your brand is ready to take on the challenge. Even if the process seems optimal at the initial stages, changes in sales, technology and the supply chain can expose new issues that have the potential to impact your bottom line.

3PLs and larger fulfillment service providers are able to navigate these changes by employing a well-trained staff and utilizing scalable warehouse management software. Putting together the right team and resource pool can make the process much easier.

In-house fulfillment might seem like the best way forward, but it’s important to consider a variety of risk factors before diving in. Sure, cutting out a 3PL and handling fulfillment yourself can give you more control over the process, but doing that work yourself comes with additional costs that you’ll need to be sure you can afford.

Rent

Depending on the size of your eCommerce brand, you might need to rent additional space to store your products. Not only can renting a warehouse be expensive, but you’ll run the risk of locking yourself into a lease that could hinder your brand’s growth.

For example, if sales continue to do well, you may eventually need even more space than your rented warehouse can accommodate. Without extra room to grow, providing consistent and reliable delivery to an expanding range of customers will be a challenge.

Labor

Another major expense for in-house fulfillment is the cost of additional labor. If your eCommerce brand is doing well, your existing workforce might not have the bandwidth to move high-volume shipments day after day. Committing to in-house fulfillment also means you and your employees would have less time to manage other essential aspects of an eCommerce brand, such as marketing and sales.

With a 3PL, on the other hand, additional resources can be committed to your shipments as the business begins to grow, without piling on to your team’s existing workload.

Software

An efficient in-house fulfillment process requires high-quality warehouse management software. In today’s eCommerce environment, simple spreadsheets and paper-based procedures just don’t cut it.

Customers expect detailed delivery updates, which requires thorough inventory management, pricing information and an efficient warehouse. All these features of fulfillment can be handled and enhanced with the right software.

Conclusion

While in-house fulfillment might seem like a great option right now, it’s important to remember how quickly that can change. Even positive changes like a sudden increase in sales can cause trouble for eCommerce brands that use in-house fulfillment with a finite amount of storage space and labor.

To get the most out of your in-house fulfillment process, it’s essential to find resources that are ready to scale along with your brand. ShipHero’s warehouse management software could provide the flexible and customizable solution you need.

If you’re looking for a partner to help your eCommerce scale to new heights, contact the Software Experts at ShipHero today.

Click HERE to Schedule a Meeting Today

Aaron Rubin, Founder & CEO

ShipHero

About the author: Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.

Follow Aaron on Twitter & LinkedIn.

Applying IoT in Warehouse Management

Apr 21, 2023 | 3PL Warehouse Management, Blog, Warehouse Management Software, Warehouse Operations

In today’s digital age, the Internet of Things (IoT) revolutionizes how businesses manage their warehouses. With the rise of smart technologies, warehouse management is now more efficient and cost-effective than ever before. Let’s look at IoT and how it can be applied to warehouse management.

What is IoT?

In simple terms, IoT is a network of physical devices interconnected to the Internet, enabling them to capture and transmit data.

IoT devices are changing how warehouses operate by providing an unprecedented level of real-time data analysis. eCommerce businesses and 3PLs can use this real-time data to track inventory movements, monitor environmental conditions, and inform business decisions.

As such, IoT devices are a significant development for warehouse management, leading to increased accuracy, efficiency, and improved overall operations.

Benefits of IoT in Warehouse Management

We can already see the massive benefits of using IoT in warehouse management. Not only does it provide a precise method of inventory management, but it also increases safety and security, decreases costs and waste, and makes data easily accessible for analytics purposes. Let’s dig a little deeper into the benefits of IoT in warehouse management – exploring what advantages could be awaiting you just around the corner.

Improved Inventory Management

When it comes to warehouse management, detailed data analytics can be a game changer. IoT solutions allow you to monitor every action and process all data, even for individual products in specific locations.

This wealth of information allows you to forecast what’s needed and what needs to be improved in scheduling your inventory effectively. Optimizing your warehouse space and minimizing the time it takes to locate products can drastically improve your business’s efficiencies. With the right data analytics tools and strategies, you can stay one step ahead and develop a solid plan for future inventory success.

Real-Time Monitoring and Tracking

Beacon technology can achieve real-time monitoring and tracking of products. These small devices have an in-built battery that allows for continuous Bluetooth connectivity, enabling the precise tracking of assets. With this technology, businesses can streamline inventory management and better understand the movement of their products.

Increased Operational Efficiency

With the help of IoT devices, businesses can increase their operational efficiency and streamline inventory and warehouse management. Automating these processes minimizes costs, saves time, and improves overall performance.

Through real-time data analysis and intelligent insights from IoT, businesses can identify areas for improvement and make informed decisions that further optimize their operations. By utilizing these advancements, companies can reduce their expenses on labor and increase their productivity, ultimately leading to a more profitable outcome.

Reduced Costs and Waste

Reducing costs and waste has become a top priority for businesses. Implementing IoT warehouse solutions can go a long way in achieving this goal. By monitoring conditions and providing predictive maintenance, these solutions help detect early symptoms of equipment defects, thus reducing risks, downtime, and accidents.

In addition to mitigating potential losses, intelligent warehouses are highly efficient in resource utilization, resulting in increased revenue and reduced management expenses. As such, it’s easy to see why more and more companies are turning to IoT solutions to optimize their warehouse operations.

Enhanced Safety and Security

By expanding the use of smart sensors, warehouses can prevent accidents caused by human error. These sensors can alert workers to potential hazards such as overloaded racks or close encounters with forklifts.

Smart locks, cameras, and motion sensors can prevent fraudulent activities and product theft, enhancing security measures. These technological advancements can limit the risk of unforeseen circumstances and provide a secure environment for employees to work and maintain inventory. Enhanced safety and security measures benefit the company and ensure the well-being of those included in every step of the process.

IoT Applications in Warehouse Management

IoT applications, such as inventory tracking and sensor networks, have revolutionized warehouse management, resulting in more efficient and accurate inventory management. These applications have transformed traditional warehouse operations by allowing managers to track inventory, monitor equipment, and optimize processes in real time. Let’s look at the IoT applications in warehouse management and discover what opportunities await us!

Inventory Tracking

Warehouse management is an essential component of any company’s operations, and with the advent of IoT technology, the process has never been more efficient. One such application is RFID technology for tracking inventory. Unlike barcodes, RFID tags can store an enormous amount of data such as size, manufacturer, expiry date, serial number, production line, and much more.

Plus, RFID readers can scan up to 200 tags at once, a rate far superior to traditional barcode scanning methods. The result is improved inventory tracking and efficient management, ultimately reducing costs and increasing customer satisfaction.

Sensor Networks

Another significant advancement is using sensor networks to monitor temperature, humidity, and other environmental factors. This technology enables warehouse managers to better track the goods in and out, ensuring that products are stored under optimal conditions.

Integrating these sensors into the supply chain allows managers to follow items in any delivery step and monitor the temperature and humidity in transit. Sensors are also commonly deployed for light movement, moisture, and temperature sensing. Companies can proactively minimize supply chain risk by adopting sensors to moniter driver life.

Automated Guided Vehicles (AGVs)

Another approach to improving warehouse productivity is autonomous technology, such as automated guided vehicles (AGVs). They navigate an IoT warehouse using floor stickers, LiFi technology, vision cameras, and wires. The quickest route to any location is calculated by automated guided vehicles, and the inventory is restored without human supervision.

Predictive Maintenance

Predictive maintenance is a technology that uses IoT sensors to monitor equipment and machines’ working conditions. Combining this data with powerful machine learning algorithms can prevent breakdowns of forklifts or other material handling equipment, ensuring optimum production and minimal maintenance costs and downtime.

The smart sensors collect information about temperature, humidity, and leaks. A server can send commands to adjust HVAC systems or engage actuators automatically while connected to one system. This technology provides a valuable solution to the issue of costly, unexpected repairs that disrupt workflow and ultimately lead to losses in profits.

Revolutionizing Warehouse Management

The Internet of Things has revolutionized warehouse management, and the undeniable advantages should be explored, especially as it relates to inventory tracking, cost reduction, efficiency, and security.

The success of businesses today comes down to understanding customers’ needs and ensuring that suitable systems are in place to increase productivity and efficiency. IoT technologies offer many advantages when implemented correctly, and it has opened a new era of possibilities for warehouse management.

Our ultimate goal at ShipHero is to help warehouse managers maximize their operations by offering a platform that simplifies processes and helps them stay ahead of the competition. So, don’t let your business wallow in outdated operational systems when you could be one step ahead with the leading WMS!

About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With thousands of brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.

Let us know how we can help you today by scheduling a call HERE.

How to Streamline your Inventory Tracking Process

Mar 29, 2023 | Blog

Keeping track of inventory levels is an important part of successful order fulfillment. By tracking inventory, you can avoid supply chain disruptions. To ensure accuracy in your fulfillment processes, you must know which products you have in stock, and in what amount in each of your warehouse locations. This requires a streamlined and more efficient inventory management and control strategy. The best way to accomplish this is with inventory management software. The right inventory tracking software can help you avoid errors and other issues and keep up with customer demand.

What Is Inventory Tracking?

Inventory tracking is the systematic approach to monitoring and managing products or items as they move through the supply chain. While smaller businesses might rely on traditional methods like pen and paper or spreadsheets, larger enterprises with multiple warehouse locations often turn to more advanced solutions. These solutions, such as various inventory management systems and software, offer real-time tracking capabilities, ensuring that businesses have up-to-date data on their stock levels.

What is Being Tracked?

Inventory tracking encompasses a wide range of products, from raw materials to finished goods ready for shipment. By monitoring the flow of these items, businesses can gain insights into sales trends and make informed decisions about restocking and resource allocation.

Who Uses Inventory Tracking?

Businesses in every industry and in every place in the world use inventory forecasting. It is one of the most efficient tools to help companies and customers of every size save money by avoiding delays and using your company’s resources wisely. Any company that deals with sales and purchases can learn a lot from inventory tracking and can make better decisions about optimization of resources.

What Is an Inventory Tracking System?

An inventory tracking system is an example of a software application or group of software applications that use data reporting and analysis to help businesses know where the items in their inventory are, how long they have been there, and when it is time to order more. Some inventory systems involve scanning codes or SKU numbers on boxes of inventory and updating their locations.

Inventory Tracking Benefits

The advantages of inventory tracking are manifold. Automated systems reduce labor costs, minimize errors, and enhance a business operations overall efficiency. Moreover, with a comprehensive system in place, businesses can also integrate their inventory data with accounting tools, ensuring financial accuracy.

Inventory Tracking Challenges

Inventory tracking is challenging because there are so many moving parts in the supply chain. You must keep track of when to order new parts or supplies and account for how long it will take the suppliers to fulfill your order. Their answer may depend on factors like weather, labor shortages, or availability of raw materials. Likewise, inventory control can only be error-proof if you use a sufficiently sophisticated inventory tracking option. If you keep all of your records with pen and paper, you always run the risk that coworkers will misunderstand your record-keeping system. Likewise, if you manage multiple warehouses, you will need an integrated and automated inventory management system to meet your inventory tracking needs. However, with the right inventory management processes and tracking software, many of these challenges can be mitigated.

Inventory Tracking Process

The inventory tracking process at a warehouse begins when the warehouse receives a new shipment of raw materials, partially assembled product components, or finished products ready for retail sale. The warehouse employees scan the SKU on each item or container or record its identifying data manually. They then follow the instructions, which were set by a manager or by data analytics, about where in the warehouse to store each item. As orders come in, visibility inventory management software the warehouse employees fulfill the order according to the warehouse’s system, whether it is first in first out, last in first out, or some other system.

How to Streamline your Inventory Tracking Process

Automation and data analytics are the keys to success to optimizing the inventory tracking process. By reducing manual interventions, businesses can minimize errors and enhance efficiency. Training staff on the software’s functionalities is also crucial to ensure smooth operations.

Manual vs. Automated Tracking

While manual tracking might suffice for smaller businesses, automation is becoming the industry norm. Automated warehouse management systems offer real-time updates, reduce errors, and are more scalable, making them ideal for growing businesses.

Inventory Tracking Methods

Choosing the best two inventory management methods for your company is an important business decision. Without accurate inventory tracking, errors in order fulfillment can lead to mixups, delays, customer complaints, and financial losses. The best inventory tracking methods rely on automation to update their reorder formulas in real-time. They are the inventory tracking equivalent of navigation apps that know when traffic jams and bad weather are likely to affect your commute and therefore suggest alternate routes.

Inventory Tracking Examples

Analyzing past inventory tracking strategies can offer valuable insights for future planning. By understanding the journey of different products through the supply chain, businesses can also identify trends and areas of improvement and optimize their strategies.

Key Takeaways

Inventory tracking is essential for businesses of all sizes.
The choice of tracking method should align with the business’s size and needs.
Automation is becoming the industry standard, offering real-time updates and enhanced efficiency.

Inventory Tracking FAQs

What Are the Types of Inventory Tracking?

There are several methods, ranging from manual tracking with pen and paper, spreadsheets, to advanced automated systems using inventory tracking software.

What Is the Easiest Way to Keep Track of Inventory?

For small businesses, manual methods might be sufficient. However, as the business grows, investing in an automated system becomes crucial.

What Is the Best Program to Keep Track of Inventory?

While there are several options available, ShipHero stands out as a comprehensive solution catering to diverse business needs.

CAREERS

Front and Center

Back of the Packet

ShipHero News

What Is an Inventory Report?

Importance of Inventory Reporting

Categorizing Inventory

Inventory Tracking

Better Customer Service

Improved Forecasting

Types of Inventory Reporting

How to Perform an Accurate Monthly Inventory Report

Understanding Inventory Accuracy Rate

Understanding Inventory Turnover

The Real Cost of Keeping Inventory

Delving Into Inventory Valuation Methods

Cycle Counting: A Proactive Approach

The Benefits of Regular Cycle Counting

Incorporating Technology for Accurate Inventory Control

Utilizing Excel for Inventory Management

The Human Element in Inventory Management

The Bottom Line

What Is Warehouse Inventory Management?

How Do Warehouse Inventory Management Systems Work?

Why Is Warehouse Inventory Management Important?

Boosts Warehouse Productivity

Improves Order Fulfillment Accuracy

Increases Customer Satisfaction

Faster Shipping and Deliveries

Saves You Money

Warehouse Inventory Management Best Practices

How to Implement Warehouse Inventory Management?

Determine the Warehouse Layout

Establish a Workflow

Appoint a Warehouse Manager

Implement Warehouse Inventory Management Software

Key Takeaways

Warehouse Inventory Management FAQs

What Are the Types of Inventory?

What Are the Main Steps in Inventory Management?

What Is the Inventory Formula?

Market your Business like a Pro

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Social Media Strategies that Work

User-Generated Content

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Advertising Tactics to Control Ad Spend

Social Media Advertising Tools

“What I found with advertising, at least for us, is once you find what’s working, you have a test that you can then iterate off of.” -Alex Lewkowict.

Flexible Fulfillment

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Thinking Outside the Box

What is Lot Tracking?

How Does Lot Tracking Work?

Why Is Lot Tracking Important to Inventory Management?

The Mechanics of Lot Tracking

Quality Control Anchored in Lot Tracking

Benefits of Lot Tracking

Eliminate Human Error

Have a Full Supply Chain Overview

Get Specific Data of Product Lots

Which Products Need Lot Tracking?

Streamlined Lot Tracking with Software

Convergence of Lot Tracking and Emerging Tech

Lot Tracking Best Practices

Key Takeaways

Lot Tracking FAQs

What Is Lot Tracking in Manufacturing?

What Are the Benefits of Lot Traceability in Manufacturing?

What Is the Purpose of Lot Number?

What is a 3PL Inventory System?

What is 3PL Inventory Management Software?

Benefits of 3PL Inventory Management Software

Reduced Costs on Both Ends

Time Saved Through Automation

Customization and Scalability

Lower Risk for Error

Insight into Your Clients’ Business

How Does 3PL Software Help eCommerce Businesses?

Cost Reduction