Aug 2, 2023 | Blog
The right software applications can provide solutions to many of the challenges that small or medium-sized businesses face. Software as a service is not new; since its first implementation several decades ago, it has become one of the most valuable resources to which businesses have access. Your company should put as much thought into the cloud-based services it engages as into the computer hardware that it buys. If you are operating a third-party logistics operation, then the right warehouse management system can help support the teams in your warehouse as they perform the warehouse processes for which your organizations are responsible.
What Is WMS (Warehouse Management System)?
A warehouse management system (WMS) is a software platform that warehouses use to help them with inventory management and order fulfillment. Its various functions help you with warehouse operations such as putaway, cycle counting, barcode scanning of items, and picking. It can improve inventory accuracy, labor productivity, and customer satisfaction.
The WMS is the operating system of the entire warehouse, but each employee and each piece of equipment interacts with the WMS functions in a different way. An employee in charge of bar code scanning will look at his or her dashboard to find the locations of the bins which are the focus of today’s assignment. As the barcoding employee scans each item to get it ready to pack or stock, the WMS automatically updates as each piece of input that comes in. When the employee finishes one task, the WMS displays new tasks on the employee’s mobile device.
What Is NetSuite?
NetSuite is a leader in business software and software as a service industry. It has been helping companies achieve success since the old days when computers were huge and software had to be installed onto a device from a floppy disk and then launched in multiple steps. NetSuite has evolved with improvements in computer technology, and today it remains a leader in a world where business software operates with much greater efficiency than it did in the days when people used to try to resolve computer issues by blowing on a floppy disk or a computer mouse to remove dust.
NetSuite WMS is only one of the many software products that NetSuite offers. Its other tools include software suites for accounting, payroll, customer relationship management, procurement, human resources management, and eCommerce. Its business software helps small startups meet their growth goals and enables medium-sized businesses to meet customer expectations about costs and value so that these companies can compete with mega-corporations.
The Need for a Specialized WMS Solution for NetSuite Clients
In its many years of developing its products, NetSuite has adapted to meet the needs and requirements of its users so that they can better serve their customers. Different industries have different software needs, though. If you are operating a third-party logistics (3PL) warehouse, then you need a WMS module. The dashboards, spreadsheets, and task management on a software module designed for a hotel or restaurant would not be an adequate substitute. Instead, you need software that compiles and analyzes inventory data efficiently so that you can know how many goods your warehouse has space for. You also need the WMS to optimize inventory visibility, so that it will be easy for the warehouse employees to see the products they are trying to find. WMS implementations are not interchangeable with other business software applications, so your 3PL operation should not use generic business software.
Understanding NetSuite’s Capabilities
If you only use the Microsoft applications that came included on your devices, or if you are constantly searching the web for free online templates of business documents, then you will be amazed at what NetSuite business software can do for your company’s operations, whether you are a small eCommerce business that only sells footwear or a distribution and fulfillment provider that serves multiple clients and operates multiple warehouses. The variety of NetSuite’s business software applications and packages is too large to list here, but the beauty of them is that they all automate the processes that can be done automatically and share relevant information with the appropriate parties across applications within the organization. Every time a customer makes a transaction or the WMS software makes a replenishment order, the employees who need access to this information to complete their tasks find this out immediately. NetSuite software reduces human error and enables people and devices to work more efficiently.
NetSuite is not the only business software out there, but its user-friendly setup sets it apart. It provides an intuitive user experience. It also offers customer support where live people will answer your questions about transactions, data analytics, automation of warehouse processes, and more. Much like Sage Intacct, NetSuite offers cloud-based software solutions. Software platforms that store data on a cloud instead of on your devices offer better protection against computer viruses and data theft.
Explanation of NetSuite’s Functionality in eCommerce
NetSuite products offer many opportunities for eCommerce businesses to streamline their operations and save on costs. It enables eCommerce vendors to partner with warehouses and third-party logistics providers. It can also help eCommerce companies with advertising and billing. For companies that handle their own shipping, NetSuite’s eCommerce software can track your shipments and keep customers up to date on the progress of their orders. It can also produce analytics reports about market trends and customer satisfaction, among other topics.
Role of NetSuite in 3PLs (Third-Party Logistics)
Third-party logistics (3PL) providers can benefit immensely from NetSuite business software applications. Some of NetSuite’s software suites are designed specifically for the 3PL industry. 3PL is where a company uses its warehouse to store and distribute products that belong to other eCommerce companies. All except the smallest eCommerce companies rely on 3PL to help them get their products to consumers. 3PL accounts for a growing share of NetSuite’s business software customers. Check out NetSuite’s blog for updates about what is new in the world of business software for 3PL providers.
Why ShipHero WMS Is the Best Solution for NetSuite Clients
NetSuite offers a vast array of business software products, but ShipHero WMS is the best choice for 3PL providers. It has features specific to all the tasks that 3PL warehouse employees do, and it integrates beautifully with the other NetSuite business software applications that you already use.
Special Features of ShipHero WMS that Make It the Ideal Choice
Analytics is one of the strong points of ShipHero WMS. It collects all the data you could ever want to know about your warehouse and the supply chain. ShipHero WMS compiles retrospective reports and can also engage in predictive analytics.
Benefits of Integrating ShipHero WMS With NetSuite
Automating warehouse processes is another commonly cited goal of clients who use ShipHero WMS. For example, it enables you to automate cycle counting, which would otherwise be a time-consuming process. It also enables you to automate replenishment. You can simply instruct the software to reorder a certain product when the stock level gets below a certain point.
Case Studies or Testimonials Demonstrating the Effectiveness of ShipHero WMS
The ShipHero website includes case studies about clients in the United States and Canada who have implemented ShipHero WMS. These include eCommerce companies that sell everything from clothing to tires to musical instruments.
Key Takeaways
If warehouses play any role in your business activities, even if yours is only a small eCommerce store, then ShipHero WMS is just what you need. It integrates smoothly with other NetSuite software suites, which are a popular choice for small and medium-sized businesses. User-friendliness, analytics, and automation are among the greatest strengths of ShipHero WMS.
FAQs
Each business that engages the services of ShipHero WMS has unique needs. These are some common questions that 3PL providers and eCommerce businesses have about ShipHero Warehouse Management Software for NetSuite.
How Does a WMS Integrate into an ERP Like NetSuite?
When you install ShipHero WMS, it automatically knows how to interact with NetSuite. The two platforms have been designed to work together. Therefore, you do not have to overhaul all of your business software simply because you have started using ShipHero WMS for NetSuite.
Is NetSuite a Data Warehouse?
NetSuite uses cloud-based data storage and was one of the first software companies in the world to implement this type of data storage. Since NetSuite stores your data on a cloud instead of on the hard drives of your devices, it gives you an extra layer of protection against cyber attacks. Besides cloud storage, NetSuite also has other robust cybersecurity features.
Does Oracle Have a WMS System?
Oracle has a WMS system, namely ShipHero WMS for NetSuite. NetSuite has been a subsidiary of Oracle since 2016.
Contact ShipHero today for a demo.
Nov 2, 2022 | Blog
ChannelAdvisor helps you keep track of your inventory, products and orders across several eCommerce platforms at once. However, you need to partner up with the right order fulfillment service to make the most out of ChannelAdvisor and unlock the true potential of your eCommerce business.
Read on for the best order fulfillment partners you can work with to maximize ChannelAdvisor’s strengths!
What is ChannelAdvisor?
ChannelAdvisor is an eCommerce service that helps you manage multiple eCommerce platforms to boost sales. It does so by assisting your marketing efforts and refining your eCommerce strategies to ensure your products reach a wider audience.
Here’s what ChannelAdvisor can do for your business:
- Find new customers on various online marketplaces.
- Create targeted advertising campaigns to promote your products.
- Convert potential customers into buyers.
- Ship products quickly.
- Provide insights to assist in making informed decisions.
What is Order Fulfillment?
Order fulfillment is when an eCommerce seller takes a customer order, processes it according to the customer’s needs and delivers the product to the customer.
Order fulfillment is essential because it’s how a business gets products to customers. If your order fulfillment process is inefficient, you’ll likely see dissatisfied customers and lost sales.
How Does the ChannelAdvisor Order Fulfillment Process Work?
ChannelAdvisor doesn’t have an in-house order fulfillment process. However, its platform supports third-party order fulfillment partners by providing an order management dashboard. This dashboard that consolidates your marketplace and warehouse data to make them easier to access.
ChannelAdvisor also offers a shipping management dashboard that connects to your warehouses and shipping networks. By monitoring this dashboard, you can ensure all products are sent on time.
What Does a ChannelAdvisor Order Fulfillment Provider Do?
A ChannelAdvisor order fulfillment provider essentially takes over the entire process from you. Your order fulfillment partner will be responsible for your products from arrival at their warehouse until they’re received by the customers.
What Are the Benefits of Using an eCommerce Order Fulfillment Service?
The main benefits of using an eCommerce fulfillment service are cost savings and scalability. Here are six benefits you can get by working with order fulfillment services:
Additional Storage Space
Operating your own warehouse is time-consuming and expensive, especially if you run a large eCommerce business. Most order fulfillment services provide warehouses to store your products, meaning you only need to pay their fees instead of bankrolling an entire warehouse and its utilities.
Lower Shipping Costs
Order fulfillment companies usually have deals with shipping carriers because they ship hundreds or even thousands of packages per day. Because bulk shipments tend to be cheaper, these fulfillment companies can pass savings onto you, the client.
Better Scalability
Expanding your business while running your own order fulfillment operations means you have to either hire more people or give existing employees more work. You don’t have to do either of those if you work with order fulfillment services because you can simply upgrade your subscription to increase your fulfillment capacity.
Support From Experts
Nobody can be an expert in all business areas, so you must work with the right people to cover your blind spots. By working with an order fulfillment service, you can count on their expertise to identify and address issues on your supply chain.
ShipHero is here to fulfill all your eCommerce shipping needs. Take a look at our order fulfillment services.
Factors to Consider While Selecting an Order Fulfillment Partner for ChannelAdvisor
Before picking your order fulfillment partner for ChannelAdvisor, it pays to research and make the right choice. Here are four criteria to think about when picking your order fulfillment company:
Order Fulfillment Speed
Naturally, speed is one of the most important things an order fulfillment company can offer. Today’s customers and clients expect fast order turnaround times and may turn to other businesses if they can’t get it. Make sure you pick an order fulfillment company that delivers to customers punctually.
Storage and Fulfillment Fees
Storage and fulfillment fees matter because the more products you store and ship, the higher these fees will be. Consider picking a fulfillment company that charges lower fees if you plan on storing and shipping many products.
Pricing
The fulfillment company’s monthly subscription and annual fees may not be the only things you’re paying when working with them. Sometimes there may be additional hidden costs that may impact your bottom line considerably. Ask your fulfillment company about any extra costs and consider whether they’re worth it.
Cheap fulfillment partners aren’t necessarily the best choice. Choose one that offers reasonable prices and the services you need without compromising quality.
Returns Management
If a product is defective or doesn’t fulfill the customer’s expectations, they may return it. Order fulfillment services must know how to handle returns to ensure a painless process for the customer. This means your order fulfillment service provider must contact the customer, receive the product, document the cause and send a replacement product.
What to Look For in a ChannelAdvisor Fulfillment Partner
Working with a fulfillment partner requires commitment, so you must choose the right partner that caters to your needs. Here are three things to ask about when looking for an order fulfillment partner:
eCommerce Platform Integration
Different businesses sell on different eCommerce platforms. To ensure you don’t encounter problems when processing orders, ensure that your fulfillment partner can integrate seamlessly with ChannelAdvisor.
Some major eCommerce platforms to ask about are Squarespace, BigCommerce, Wix, WooCommerce and Square.
Multichannel Integration
Multichannel order fulfillment means you can use one warehouse to process orders from all your storefronts instead of having a warehouse for each channel. Naturally, order fulfillment companies that integrate fulfillment across all physical and online channels can save you a lot of money, which is why it’s an essential consideration when picking partners.
Ease of Use
Many order fulfillment companies provide dashboards and software to help you manage inventory and warehousing. An important consideration when choosing these partners is finding one that offers the easiest software to use, which minimizes time spent training and lets you process orders as quickly as possible.
How We Chose the Best ChannelAdvisor Fulfillment Companies
You have many order fulfillment partner choices, so choosing one can be tough. Fortunately, we can do that for you. Here are the criteria we use when choosing the best ChannelAdvisor fulfillment companies:
- Shipping speed
- Fulfillment network
- Fulfillment software features
- Returns management
- Subscription, storage and shipping costs
Best ChannelAdvisor Fulfillment Companies
Without further ado, here are some of the best ChannelAdvisor fulfillment companies to work with today:
1. ShipHero
ShipHero is an order fulfillment partner that offers high-accuracy order fulfillment and efficient warehouse management services with flat-rate fees, free of any hidden costs.
Pros
- Seven warehouses located across the United States and Canada
- Warehouse management with real-time inventory and order visibility
- Integration with major eCommerce, shipping and marketplace platforms
Cons
- Software encounters occasional errors
- Limited shipping label customization
Pricing
ShipHero offers single-rate pricing for all lower 48 states with no setup or hidden fees. Visit our pricing page to discuss customized order fulfillment pricing for your company.
Request an order fulfillment quote from ShipHero today!
2. Shipwire
Shipwire operates a global fulfillment network to help your eCommerce business sell to customers worldwide.
Pros
- 30 warehouses located in North America, Europe, Asia and Australia
- Integrations with over 200 eCommerce platforms and websites
- Support for B2B and B2C eCommerce
Cons
- Occasionally unhelpful customer service
- Relatively high shipping rates and long-term storage fees
Pricing
Shipwire doesn’t publicly post its pricing information. Contact a customer service representative for more details.
3. Red Stag Fulfillment
Red Stag Fulfillment offers a full suite of eCommerce order fulfillment and third-party logistics (3PL) services for online sellers.
Pros
- 100% inventory accuracy and same-day fulfillment guarantee
- Affordable shipping costs for large items
- No long-term contract commitment
Cons
- Only two warehouses in the United States
- High pick-and-pack fees
Pricing
You have to get a quote from Red Stag to get information about its pricing plans. You can also sign up for a 30-day free trial.
4. TrueCommerce
TrueCommerce is a cloud-based order fulfillment service that offers integrations with all aspects of your supply chain, so you don’t have to purchase any additional software.
Pros
- Integrations with major eCommerce storefronts like Shopify, Magento and WooCommerce
- Easy-to-learn software
- Simple setup
Cons
- May not integrate well with other software
- Conflict-causing updates
Pricing
Contact a TrueCommerce representative to get pricing information. You can also book a free demo by completing the form on its website.
5. ShipBob
With over 30 distribution centers in six countries, ShipBob helps your eCommerce company sell anywhere in the world. It also boasts a 99.96% on-time delivery rate, meaning your merchandise will be well-handled.
Pros
- Affordable two-day shipping costs with easily understood pricing
- Transparent fulfilling performance reports
- Options for custom-branded packaging
Cons
- Slow-loading dashboard pages
- Hard-to-implement online store integration
Pricing
You can use the calculator on ShipBob’s website to estimate order fulfillment prices. For more detailed pricing breakdowns, request a quote.
Choose ShipHero for all your order fulfillment needs.
6. ShipBots
ShipBots offer pre-built integrations with eCommerce platforms so you can capture orders from your sales channels in no time at all. It also boasts best-in-class customer support teams to ensure you get a solution if a problem comes up.
Pros
- Large shipping discounts
- Dashboard for inventory and warehousing performance insights
- Extra user accounts at no cost
Cons
- Requires a full quote to see detailed pricing
Pricing
Storage with ShipBots starts at $9/week per pallet or $1.25/week per bin. Prices for receiving, picking, packing and shipping vary depending on the volume of orders you handle.
7. Rakuten Super Logistics
Rakuten Super Logistics’ 3PL services guarantee next-day shipping with 100% order accuracy for all your products. Its wide delivery network also ensures customers get their items within one or two days.
Pros
- Nationwide network of fulfillment centers to ensure fast shipping
- Real-time shipment tracking
- Lot tracking to monitor the expiration dates of perishable products
Cons
- Outdated user interface
- Occasional discrepancies between stock listed on the software and real-world stock
Pricing
Rakuten Super Logistics doesn’t post its prices publicly, but you can request a quote by completing a form on its website.
8. ShipMonk
ShipMonk provides various services like order management, inventory management, purchase tracking and packaging to simplify your B2B and B2C fulfillment processes.
Pros
- Real-time inventory tracking across all your sales channels
- Automatic shipping report generation
- Multi-warehouse management dashboard
Cons
- Occasional hidden fees in the fine print
- Lack of climate control for temperature-sensitive items
Pricing
ShipMonk uses a volume-based pricing model that you can calculate on its online calculator. You can also get a custom quote by contacting a sales representative.
9. SPS Commerce
Boasting over 105,000 clients, SPS Commerce provides cloud-based supply chain solutions that let you easily share product information, get insights into retail data and improve logistics efficiency.
Pros
- User-friendly interface
- Useful data insights from its analytics tool
- Easy integration with retail partners
Cons
- Hard-to-decipher error messages
- Lengthy purchase order processing
Pricing
SPS Commerce doesn’t publish pricing information on its website. Contact its sales team to get a free quote.
Experience lightning-fast eCommerce fulfillment with ShipHero today!
10. eFulfillment Service
eFulfillment Service aims to be one of the most affordable 3PLs in the business with low fees, freight discounts and zero long-term storage fees. However, its numerous 3PL provider awards show that while affordable, it doesn’t mean this company offers bad service.
Pros
- Order fulfillment for various industries
- Scalable services
- No minimum order requirements and setup fees
Cons
- Relatively slow stock check-in times
- Occasional stock accounting errors
Pricing
You can get a quote from eFulfillment Service by completing a form on its website.
Final Thoughts
Choosing the right order fulfillment partner for ChannelAdvisor is crucial to unlocking its full potential. Combining ChannelAdvisor’s insight and marketing assistance with robust order fulfillment services means you know what products to sell, how to market them and get them to customers on time. Additionally, you can gain insights from ChannelAdvisor’s reporting tools to see whether or not your products are selling well.
Don’t work with ChannelAdvisor? Find the best carriers for many of the highest profile marketplaces on the web.
Top 10 Best Order Fulfillment for Amazon
Top 10 Best Order Fulfillment Partners for Walmart
Top 10 Order Fulfillment for eBay
Top 10 Best Order Fulfillment Options for Wix
Top 6 Best Order Fulfillment Options for Square
Top 6 Best Order Fulfillment Partners for WooCommerce
Top 10 Best Order Fulfillment Options for BigCommerce
Top 10 Best Order Fulfillment Options for Squarespace
Top 10 Best Order Fulfillment Options for eCommerce Sellers
Dec 9, 2022 | Blog
If you’ve ever wondered how your online orders arrive at your doorstep quickly and efficiently, it’s all thanks to the warehouse packing station. Packing stations are the places at the end of your shipment chain where orders are carefully packed and prepared. An effective packing station can reduce your labor costs, shipping expenses, and order errors and helps to meet your customer’s satisfaction. It’s a well-oiled machine that helps to ensure that your orders arrive on time and in perfect condition. In this blog, we go over the basics of a warehouse packing station and why they’re so important.
What is a Packing Station?
A packing station is a space in a warehouse where products are checked, packed, and labeled for shipping. In addition to being ergonomically efficient, it is equipped with all the packing materials necessary within easy reach. And a well-designed packing station can greatly improve the order fulfillment process.
What Does a Packing Station Consist Of?
Order fulfillment is only as fast as its slowest function, and packing–often the last stop before shipping–can be a bottleneck. But a well-designed warehouse packing station will ensure a place for everything. Modular and ergonomic packing stations can increase productivity by eliminating the need for workers to bend, reach, or leave the packing area to retrieve supplies.
Packing stations can be outfitted with various accessories. They usually consist of a workbench with shelves or gravity flow tracks designed to store the materials used to prepare orders for packing and shipping. Packing supplies such as boxes, envelopes, packing paper, and tape can be stored on packing stations in easy-to-reach locations. Tools like scanners, scissors, tape measures, utility knives, and tape guns are often organized and hung on the packing station for quick and easy access.
Connecting your packing and shipping areas with a simple gravity conveyor system can reduce bottlenecks and eliminate worker travel time. Thus creating a seamless integration between order picking, packaging, and the loading dock.
How to Make your Packing Station More Efficient
When it comes to efficiency, your packing station is key. But all too often, people focus solely on storage when designing their packing workstations. In order to maximize efficiency, your packing station needs to be integrated with the company’s warehouse management system. As a result, you will be able to organize the most important packing materials and supplies logically. If you’re looking to make your packing station even more efficient, you can do a few things.
Warehouse Organization for Efficient Packing Stations
A well-organized warehouse is very important for an efficient packing station. A perpetual inventory management system will keep track of stock levels and help avoid surprises. The workstation should be arranged so that all the tasks required to pack a shipment can be carried out smoothly and uninterrupted. It should also be tidy and well-stocked with all the supplies needed to safely and securely pack items for shipment. Creating a lean warehouse will save you time and money in the long run.
Streamline Your Packing Workflow
The packing process is one of the most important steps in getting products ready for shipping. A well-designed packing workflow can help improve efficiency and reduce errors. When creating a packing workflow, it is important to consider the type of products being packed, the volume of products, and the space available.
Packing stations that deal with high-volume small packages need to be more compact so that the worker has enough space to pack products quickly with all the packing materials within reach. Whereas packing stations that handle large and bulky products need to be spacious and include lifting equipment to help workers pack heavy items. Also, extra space can accommodate automation later on.
We have even gone one step further and included a YouTube video that walks you through the processes that go on at the packing station. You can watch the full video HERE
Create a Workstation That Delivers Orders
In a busy warehouse, time is of the essence. That’s why it’s important to have an efficient system for bringing orders to the packing workstation. Whether it’s boxes, totes, skids, carts, or conveyors, the goal is to deliver the orders in batches, so the packer doesn’t have to move from his workstation. The delivery system should be located next to the table, and the packer should always be within easy reach of a new order.
Whenever possible, staging systems should be next to the table so the packer can avoid lifting, carrying, and walking the carton to the staging location. The best solutions allow the packer to simply push the packed carton onto the staging area which helps to keep the packing station running smoothly and efficiently.
The Gaming Community’s Answer to Warehouse Packing
Remember those old handheld barcode scanners that revolutionized warehouse picking and packing? Well, there’s always been a bit of a lag between picking up the scanner, scanning the barcode, and then placing the scanner down to continue working. Maybe it’s one or two seconds, but shave those few seconds off every order, and you’ve accumulated a lot of time.
One of our ShipHeroes found our solution in the gaming community. Xbox® released an adaptive game controller meant for gamers with limited mobility. We discovered that this device could work for packing stations at ShipHero. The cost to make this upgrade is nominal. It’s cheaper than a mobile socket scanner, which most clients use in their warehouses. Not only that, but workers love it because it’s more fun and less time consuming. They literally push buttons, no time is lost scanning or using a mouse and keyboard.
Frequent Packing Process Evaluation Pays Off
If you’re looking to keep your packing operation productive, it’s important to frequently observe and upgrade the process as business factors change around it. You can be more accurate and faster with the right combination of processes, equipment, technology, and training. By frequently evaluating the packing process, you can ensure that your operation is always running smoothly.
Establishing Packing Procedures
An efficient warehouse packing station is critical to a successful order fulfillment process. That’s because it helps you ship the right goods to your customers quickly and in good condition. It can reduce your labor costs, shipping expenses, and order errors and helps to meet your customer’s satisfaction. After all, the success of any eCommerce business comes down to happy customers, and efficient packing stations are necessary to achieve this. Late orders, high shipping fees, and order inaccuracies won’t keep your customers coming back for more. Sometimes, you need a third party with a team of experts to handle the logistics while you focus on growing your business.
This is where a warehouse management solution like ShipHero can help you out. With ShipHero, you can automate your warehouse packing stations and get real-time insights into your fulfillment process so that you can make informed decisions about how to improve your operation. As a result, you can keep your customers happy and grow your business. Contact us today to learn more about how we can help you take your warehouse packing station to the next level!
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For More Information About ShipHero
Whether you want to let go of running your own warehouse or run your warehouse better, you can do both – and so much more – with ShipHero.
Click HERE to Schedule a Meeting with Our Sales Team.
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Mar 29, 2023 | Blog
The Objective of Warehouse Managers
Warehouse managers strive to fulfill customer orders promptly while ensuring the safety of their employees. Efficiently utilizing the warehouse area and available tools is paramount. For example, while technology plays a significant role, sometimes the hands-on approach, using one’s own hand, is needed. At times, the old-fashioned way of organizing can be just as effective. Although many emphasize the importance of warehouse management software and technology for optimizing tasks like packing and picking, the putaway process is equally significant. By enhancing your putaway strategies, you can optimize storage areas and streamline the flow of products from the manufacturer to the customer. An effective putaway process offers a solution to various other warehouse processes challenges. There are times when the need for manual intervention arises, and understanding these moments is crucial.
Understanding Putaway in Warehouse Management
Putaway is a crucial part of warehouse operations. It involves moving newly received products to their final locations in designated storage areas within the warehouse, preparing them for the picking process and subsequent order fulfillment. Some warehouses use a staging method, temporarily holding new shipments before organizing them in the designated areas or shelves. The difference in product size and weight can dictate the putaway criteria. For some products, the final destination elsewhere within the warehouse might be predetermined based on their demand. An example of this would be high-demand products being placed closer to the picking area.
Diving into the Putaway Process
When trucks laden with shipments arrive, the putaway process begins. Each warehouse has its distinct workflow, which includes the movement and verification of goods, and tracking their storage locations. This might involve scanning product labels, labeling items, or manually noting each product upon arrival using one’s hand. Essential steps include loading and unloading goods, stacking, palletizing, sorting, and organizing. The criteria for storing items can differ based on product type, its size, and available storage or warehouse space. Errors in this process can lead to significant delays, so it’s crucial to have a robust system in place.
Exploring Putaway Methods
There are three main putaway methods, and the best way to choose depends on your specific needs:
Direct Putaway:
Products are immediately moved to their final location or long-term storage area upon arrival. This method is ideal for smaller warehouses with high order turnover, ensuring efficient handling and storage inbound inventory.
Dynamic Putaway:
A warehouse management software assigns a unique storage location for each product before the shipment arrives. The warehouse efficiency software updates the storage requirements and space availability in real-time using data analytics.
Fixed-Location Putaway:
Warehouse managers set a predetermined layout, allocating areas to specific product types or brands. The number of products, their weight, and available space determine optimal storage location decisions for warehouse workers, reducing the risk of errors.
The Significance of Warehouse Putaway
While putaway might seem like a minor part of warehouse operations, its importance in increasing warehouse efficiency cannot be overstated. Proper planning and task delegation can virtually eliminate confusion regarding product locations. Investing in a Warehouse Management System (WMS) with optimized putaway process optimization offers numerous benefits:
- Optimizing Warehouse Layout: Efficient putaway practices can streamline the warehouse layout, minimizing the distance employees travel to retrieve frequently ordered items. Data from the WMS can guide these decisions.
- Accurate Inventory Management: A significant challenge in warehouse operations is tracking stock quantities. Efficient putaway ensures products are stored correctly, reducing errors.
- Enhancing the Picking Process: A well-organized putaway process ensures employees can quickly locate items, expediting order fulfillment.
- Prioritizing High-Value Stock: An organized warehouse provides more space for valuable inventory. Effective putaway processes can drive business growth by ensuring optimal stock availability.
Factors Influencing the Putaway Process
Several elements impact the putaway process, including the volume of merchandise, shipment frequency, and available storage equipment. The number of employees, the technology used for tracking and labeling, and the type optimal location of products stored can also affect the efficiency of the putaway process. It’s essential to recognize the difference between various storage methods and select the best solution for your business needs.
Best Practices for Putaway
For an efficient putaway process, consider the following best practices:
- Stick to a timeline: Maintain a consistent schedule for shipments, recurring orders, and stock checks.
- Utilize data and analytics: Opt for a WMS with robust data analytics capabilities.
- Minimize travel time: An efficient putaway process reduces the distance covered during product storage.
- Upgrade your WMS: A modern WMS is vital for managing putaway processes, especially in larger warehouses.
- Reduce errors: A streamlined putaway process, aided by WMS, minimizes risks across all warehouse operations.
Key Takeaways
Optimizing the warehouse putaway process is a pivotal step towards enhancing order fulfillment and supply chain logistics. Various warehouse processes and software solutions can assist businesses in this endeavor. Remember, there’s no one-size-fits-all way to optimize the warehouse putaway itself, and sometimes, a combination of ways can be the most effective.
Warehouse Putaway FAQs
What is Putaway in Inventory?
Putaway refers to staging phase of the warehouse process where warehouse employees store newly arrived stock in its designated area.
What are the Putaway Steps in a Warehouse?
The process starts with recording the incoming inventory, often termed as warehouse staging. After taking stock of all the differences in shipment, items are organized in their order volume and respective locations.
What are the Putaway Strategies?
The primary strategies are direct putaway, dynamic putaway, and fixed location putaway.
For more insights on warehouse management, explore articles on warehouse bin storage system best practices, types of storage availability, dynamic locations of warehouses in supply chain management, and warehouse automation costs.
Jun 9, 2023 | Blog
ShipHero and ShipStation are order fulfillment solutions that help businesses quickly get their products to customers for less money. However, each platform’s unique approach makes them helpful in different ways.
Keep reading for a detailed breakdown of each platform’s features, pros and cons.
Overview of ShipHero vs. ShipStation
The main difference between these platforms is that ShipHero is a complete order fulfillment and warehouse management solution, while ShipStation is focused primarily on shipping.
ShipStation’s primary selling point is that it simplifies your shipping. It offers shipping discounts and does much of the international delivery legwork. Plus, its branding tools allow you to customize multiple customer touchpoints, such as shipping labels, emails and packing slips.
ShipHero’s Warehouse Management System does all of this and more. It gives you total control and visibility over your warehouses, including pick, pack, and ship. With its wide range of inventory and warehouse management tools, everything from routing orders to optimizing stock locations is more accessible. Plus, ShipHero automatically applies the cheapest shipping option and prints your labels, so there’s no more guesswork.
Features Comparison of ShipHero vs. ShipStation
If you’re deciding between ShipHero and ShipStation for your eCommerce business, you’ll want to know how each stacks up against the other. Below is a comparison of each software based on their features, integrations, customer service and price.
Fulfillment Features
ShipStation offers a few basic order management tools to help you organize your workflow. You can view, allocate, and deallocate stock through its dashboard in real-time. You can also combine split, filter, tag, and edit orders; set stock alerts automatically; and block shipments with insufficient stock.
Orders are printed on labels collected by different workers, who can verify, pick, and pack the correct items. Its return portal makes it easy for customers to initiate a return without contacting you directly.
ShipHero’s mobile pick and pack features make it easier to fulfill orders quickly.
ShipHero optimizes your picking routes and processing options, reducing the time and energy it takes to collect your orders. The AI software cuts waste and guesswork further with recommendations for the best packaging based on what it learns about your needs and preferences. And the Hero Board, which displays the orders that need to be fulfilled daily, keeps workers on track.
Bottom Line
ShipStation uses a paper-based pick system, and labels are printed in batches, so it’s difficult to start work until all labels are printed. ShipHero’s mobile app provides an optimized pick route so workers take fewer steps to fulfill more orders. When you factor in ParcelView and ShipHero’s AI packaging, ShipHero is the clear choice for fulfillment.
Warehouse Management Features
ShipStation is primarily a shipping solution, so it doesn’t offer much in terms of warehouse management.
Conversely, ShipHero has powerful tools for efficiently running your warehouse.
The software can suggest how to store your inventory and implement warehouse best practices such as First-In-First-Out (FIFO). Its Putaway feature is especially useful in keeping track of stock, replenishing inventory levels and creating a more seamless workflow. Other notable features include cycle count, multi-warehouse allocation, kitting and reorder level setting.
Bottom Line
ShipStation was not designed to manage a warehouse from receiving to order management to shipping. If you are looking for a complete Warehouse Management System, ShipHero is the answer.
Available Sales Channels
ShipHero and ShipStation connect to popular sales channels like Shopify Plus, Amazon, Etsy and eBay. But ShipHero offers dozens of other integrations, including NetSuite, Loop Returns and more. If you intend to grow your business, more options will help.
Bottom Line
Both options integrate with the most common online marketplaces. But ShipHero provides access to the less common ones that the more successful companies have the foresight to use.
Shipping Labels and Rates
ShipStation claims its rate calculator and shipping discounts can save you up to 88% on major carriers like DHL, USPS and Global Post. They say their workers can create shipping labels with your brand on the go and that their software can generate and transmit customs documents for international shipping.
ShipHero works with all the same carriers but automatically applies the best rates and carriers for your shipments in real-time, and they print the cheapest shipping label. You don’t have to waste time and energy choosing a suitable carrier.
Bottom Line
ShipHero’s packing functionality includes a shipping rate calculator, weight & box recommendations and additional packing support, including ParcelView. ShipHero is an all-in-one solution that makes shipping labels and rates more affordable.
Shipment Tracking Capabilities
ShipStation has multiple tracking options. On the business side, you can view tracking links and statuses on the dashboard. Customers can monitor their deliveries via a branded tracking page, emails and SMS notifications.
ShipHero’s integration with Klaviyo provides the same functionality, including opting in for text alerts. Additionally, ShipHero provides standard shipment tracking capabilities via different carrier websites as well, so you can track a package from start to finish.
Bottom Line
If all you need is tracking, ShipHero and ShipStation are interchangeable. However, if you’re looking for a more well-rounded solution that includes tracking, ShipHero is the better choice.
Customer Service Support Options
You can contact ShipHero through its in-app ticketing system if you have any questions or concerns. Its website also provides free resources, including a blog, knowledge base, help center, FAQs, videos, webinars and a community forum. Email and phone support are also available at a premium.
ShipStation also offers similar omnichannel support and phone support for Platinum plans and up. The customer service team is available from 8 AM to 8 PM CT, Mondays to Fridays. It also provides access to ShipStation University, an online database of courses on the platform.
Both ShipStation and ShipHero offer free, hands-on onboarding and setup services.
Bottom Line
Since both platforms offer some support at no charge and others at a premium, they are pretty even in this area, but ShipHero’s team has the receipts for being helpful and attentive.
Industry Rankings
ShipHero has been named the leader by G2, an independent review site that measures the best software and technology across various industries, including Warehouse Management Systems and Shipping. ShipHero was named the #1 WMS for Small Business, the #1 in the Most Implementable WMS and achieved lead status in 5 other categories for Summer 2023.
During the same period, ShipStation was named a momentum leader in the shipping industry.
Key Takeaways
Order and shipping management solutions like ShipHero and ShipStation can make fulfilling customer orders easier, faster and cheaper. Both can help you keep track of inventory, improve picking and packing efficiency and get better deals on shipping. But there are a few key differences between them.
- ShipStation’s claim to fame is its savings on shipping, partnering with major carriers to provide low rates and discounts. It also allows you to add your brand to invoices and deliver more impactful customer experiences.
- ShipHero is a complete warehouse management software that assists you from beginning to end. Its unique features include ParcelView, which gives you a peek into your packages; Putaway, which tells you the best way to store your inventory; and cycle count and mobile replenishment for better inventory management.
How Does ShipHero Compare?
As an end-to-end warehouse management solution, ShipHero compares well to ShipStation’s shipping-focused software. While both ShipHero and ShipStation have order management and fulfillment capabilities, ShipHero also helps you stay on top of your warehouse operations.
ShipHero’s software is prepped for high-volume businesses out of the gate. In contrast, you need to upgrade your plan with ShipStation to accommodate more orders and users.
Because of this, ShipHero is best for eCommerce businesses, 3PL providers and high-volume brands that need software that meets their needs. And with multi-warehouse support, it’s also great for companies that stock inventory at different locations.
Bottom Line
If you’re looking for a shipping label printer, ShipStation works. If you’re looking for a complete warehouse management solution that saves you money on shipping and increases warehouse efficiency by at least 30%, ShipHero is the right choice.
ShipHero vs. ShipStation FAQs
How does ShipHero work?
ShipHero works by sending orders from your storefront to your warehouses and assisting in picking, packing, and shipping. Here’s the process in three steps:
- Connect your stores: Once linked, ShipHero receives orders from all your sales channels and gathers them in one dashboard. Orders are automatically routed to the best fulfillment center based on shipping costs and item availability.
- Pick, pack and ship your orders: With features such as mobile barcode scanning and Putaway optimization, fulfilling orders is easier, faster and more accurate. And thanks to ShipHero’s automatic rate shopping, it’s cheaper, too.
- Track your data: The Hero Board gives you a real-time, bird’s eye view of your warehouse. Make better business decisions based on the insights from your sales and operations reports.
How does ShipStation work?
ShipStation collects your orders in a single dashboard and calculates the best rates and shipping options. It automatically assigns orders to workers and enables on-the-go scanning, improving efficiency and accuracy.
Mar 28, 2023 | Blog
Effective warehouse operations rely on smart picking strategies. These strategies, involving everything from the placement of goods to the use of automation, are critical to improving customer service and the bottom line for warehouse managers.
Recognizing the Importance of Order Picking Methods
The process of order picking is integral to warehouse operations. The role of warehouse workers and order pickers, who hand-select goods from storage, is crucial to fulfilling customer orders efficiently. The right order picking methods can significantly improve operations, reducing downtime and human error, and operating costs while increasing profits.
Evaluating Different Picking Methods: One Size Doesn’t Fit All
Different facilities have different needs, and the size and nature of your warehouse operations matter. Companies must look at the specifics of their operation, such as the weight and size of goods, cross picking up, the layout of shelves and racks, and the demand for certain stock units. An organization’s choice in picking methods can impact everything from labor costs to customer service.
Understanding Piece Picking: The Basic Rule of Thumb
Piece picking is a common warehouse order picking strategy where order pickers select individual items for each customer order. This method is suitable for warehouses with a diverse stock range and smaller customer orders. However, the physical demands on staff and potential for the picking errors, may necessitate considering other strategies or technologies.
Exploring Zone Picking: Improving Flow and Control
“Zone picking method involves dividing the warehouse space into distinct zones. Each picker is responsible for one zone, picking all goods for customer orders from their area. This parallel picking method improves the flow and control of operations, reduces the distance people have to travel, and minimizes the risk of errors.
Delving into Batch Picking: Efficiency through Grouping
In batch picking, order pickers gather several customer orders at once. This approach reduces travel distance within the warehouse and can boost order picking efficiency. However, careful organization and control of discrete picking up are necessary to prevent mix-ups and ensure customer service quality.
Introducing Automation: The Future of Order Picking
Automation technologies, from scanners to automated storage and retrieval systems, offer vast improvements to warehouse picking, distribution centers and shipping operations strategies. While warehouse automations can be considered costly, they increase visibility of stock, minimize labor costs, and reduce the risk of human error. However, companies must weigh these benefits against the cost and potential disruption of implementing such systems.
Optimizing Stock Placement: Ergonomics and Profits
Ergonomics isn’t just about protecting staff. The placement of boxes, containers, and parts on racks and shelves can impact warehouse picking process, speed, risk of errors, and staff wellbeing. High-demand goods line items should be placed at eye-level for easy visibility and access, improving the flow of the picking process.
Utilizing Data and Technology: Webinars for Insight
Using data from warehouse operations can provide insight into things like stock cycle, sales trends, and the effectiveness of current picking methods and warehouse processes. Webinars and online learning can offer valuable advice on using this data for continuous improvement.
Batch Picking vs. Wave Picking: Finding the Right Balance
Batch picking and wave picking are two popular order picking methods that warehouses often employ to increase efficiency. Batch picking involves picking multiple orders simultaneously, while wave picking separates order picking process, and packing into distinct phases. Choosing between these methods depends on factors like order volume, product diversity, and staffing capabilities. Batch pick and pass picking suits warehouses with small orders, while wave picking is ideal for higher order volumes. The right balance between these methods can optimize productivity and minimize order fulfillment times.
Voice Picking Technology: A Revolution in Warehouse Efficiency
Voice picking technology has transformed warehouse operations by providing hands-free, voice-guided instructions to order pickers. This technology increases picking accuracy and speed, reduces training time for new employees, and enhances safety by allowing workers to keep their eyes and hands free. Voice picking systems also integrate with warehouse management systems (WMS), ensuring real-time updates on order lines and accurate inventory management. With its ability to streamline order fulfillment and picking processes, voice picking technology is becoming a must-have for modern warehouses.
Cross-Docking: Streamlining Warehousing and Distribution
Cross-docking is an innovative warehouse strategy for minimizing storage time by transferring goods directly from inbound to outbound trucks. This approach reduces handling costs, shortens delivery times, and lowers the need for long-term storage. Cross-docking is particularly effective for perishable items, time-sensitive products, and high-demand items. Implementing efficient cross-docking and best practices requires careful planning, coordination with suppliers and carriers, and a robust warehouse management system.
Picking Accuracy and Quality Control: Minimizing Errors in Operations
Picking accuracy is paramount to customer satisfaction and operational success. Implementing quality control measures in the whole order fulfillment process and picking and process improvements can significantly reduce errors and returns. Techniques like random order checks, barcode scanning, and verification systems help ensure that the right products are picked and packed accurately. Regular training programs, performance metrics, and continuous improvement initiatives contribute to maintaining high levels of picking accuracy.
Dynamic Slotting: Optimizing Warehouse Layout for Picking Efficiency
Dynamic slotting involves strategically placing products in the warehouse based on their popularity and demand patterns. High-demand items are positioned closer to the packing area of warehouse order to minimize travel time, while slower-moving items are stored further away. By optimizing the layout, different types of warehouses can improve picking efficiency, keep inventory accuracy reduce labor costs, and enhance order fulfillment speed. Dynamic slotting is an ongoing process that requires regular analysis of product data and adjustment of storage locations.
Remember that each a warehouse manager’s needs and operations are unique. Choosing the right warehouse order picking equipment, strategy or technology depends on factors like product characteristics, order volume, available resources, and technological capabilities. A comprehensive analysis of these factors, along with continuous evaluation and improvement, will lead to a warehouse that operates at peak efficiency, enhances customer satisfaction, and drives overall profitability.
Conclusion: Finding the Right Strategy for Your Warehouse
Determining the right picking strategy for your warehouse operations isn’t a one-size-fits-all affair. It’s about understanding your entire warehouse side’s specific needs, evaluating the nature of your stock and demands, managing inventory, and finding the right balance between labor, automation, and customer service. It’s a continuous cycle of improvement – because when it comes to warehouse operations, every little bit of efficiency translates into money saved and profits earned.
Aug 2, 2023 | Blog
Many businesses work with third-party logistics (3PL) companies to handle their logistics processes. Different companies have different needs, and you need to outline the parameters of each partnership to ensure smooth collaboration. 3PL contracts can let you do just that.
3PL contracts outline the terms of your partnership and ensure everybody agrees with the deal before moving forward with the business relationship. However, drafting contracts from scratch each time can take time. That’s where 3PL contract templates come in. They’re pre-made documents that let you draft contracts quicker, so you can seal the deal sooner.
What goes into a 3PL contract template, and what do you need in them? Keep reading for a thorough guide to contract templates, complete with downloadable samples!
What Is a 3PL Contract Template?
A 3PL contract template is a pre-written pattern for a third-party logistics agreement. It generally contains standard information that won’t change between partnerships. To accommodate different potential partners, a 3PL contract template usually has fillable parts to put in the partner’s information, cost calculations and other non-standard details.
Contract templates save time and effort because you don’t have to write a new contract every time you want to make a new logistics agreement. In addition to time and cost savings, contract templates make approval quicker because you already know what’s written in these contracts. Instead of reading the entire document, you can just focus on the variable fields to ensure everything is good to go before signing.
Understanding Various 3PL Contracts and Templates
Different companies want different things from a third-party logistics provider. For instance, some clients may only need warehousing services, while others need all-in logistics management. Templates help, but 3PL companies might not be able to use the same template for all their business deals.
Different needs mean you can’t just use any contract template you find on the internet as-is. You either need to make a template from scratch or modify a template from the internet to suit your company’s unique needs.
Here’s a look at two downloadable 3PL contract templates you can use for inspiration:
Contract for Third-Party Logistics
This 3PL contract template is a good baseline for your own version. The document tells you what to put in each fillable field, which simplifies the drafting process. It also includes lots of common clauses that you can either implement in your own template as-is or modify to fit your company’s needs.
Sample third-party logistics contract
Third-Party Confidential Logistics Contract
In some cases, you may need a confidential contract due to copyright-protected products or other reasons. In that case, you should use a 3PL contract template with built-in confidentiality clauses to protect you or your partner’s company. Make sure the clauses are strong and thorough enough to meet both parties’ needs and that your staff upholds the confidentiality rules throughout the partnership.
Here’s a sample confidential 3PL contract to inspire your own template:
Sample confidential third-party logistics contract
Key Elements of a 3PL Contract
What does a 3PL contract contain? While the specifics may differ, there are some elements found in many contracts across the logistics service industry.
Here’s a look at many important elements commonly found in 3PL contracts. This isn’t a definitive list, so your contract may have more or less elements depending on the nature of your business.
Duration of the Agreement and Renewal
The duration of the agreement governs how long this contract will last. This element also explains what to do in case either party wants to renew the contract.
Warranty Clauses
3PL companies handle other people’s goods. Warranty clauses give their clients peace of mind by outlining how the 3PL will be handling their products and what happens if the company fails to do so. 3PLs should work with their legal team to make warranty clauses that put clients at ease.
Damage and Liability Provisions
Damage and liability provisions define who’s responsible when products are damaged. These provisions limit either party’s liability, so they don’t have to take the brunt of the responsibility if something goes wrong during your partnership.
Inventory Management Expectations
Inventory management expectations outline the services a 3PL is giving the client and what metrics they should be judged by. The 3PL’s service level agreements (SLAs) and performance metrics are generally included here.
Some example SLAs you might find here are:
- Shipping cutoff times for same-day orders
- International shipment speed
- Returns processing speed
- Order-picking error rates
Defining SLAs is a balancing act since 3PLs must protect the client’s business without imposing overly high standards on their team.
Both parties should come up with these SLAs together to ensure they’re balanced. You should also hold recurring SLA re-alignment calls to ensure the standards are always clear.
IT and Reporting Requirements
IT requirements define what kind of software companies use to provide 3PL services. Most 3PLs use warehouse management systems to conduct their services. But if either party needs to use other 3PL software or hardware in this particular partnership, they’re outlined here.
This section also outlines the parameters of the 3PL company’s reporting. What items should be reported, what form the report should be delivered in and report frequency should be well-defined to ensure the client stays updated on what goes on in their logistics operations.
Invoicing and Payment Terms
This section governs how the 3PL company gets paid. It defines when they send the invoice for each payment period and how the client shall pay for services rendered. The 3PL company can also explain the penalty for late payments here. For instance, the 3PL company can say that it has the right to cease operations if the client doesn’t pay invoices on time.
Legal Claims and Governing Law
This section defines what kind of methods the signing parties use to settle legal affairs. Generally, you can choose to solve disputes through arbitration or the courts. Consult with your legal staff or attorney to choose the best dispute resolution method for your company.
Inventory Shrinkage Allowances
Inventory shrinkage happens because of many things. It can be paperwork errors, system issues, or even theft. To ease the client’s mind, 3PLs need to put an inventory shrinkage allowance in the contract.
Here’s how inventory shrinkage allowances work: Let’s say a 3PL company puts a shrinkage allowance of 0.5%. This means the client will bear the first 0.5% loss, but the company will pay for any losses above 0.5%. This limits the client’s risk and ensures they won’t lose too much money even if shrinkage happens.
The 3PL should clearly limit the scope of inventory shrinkage. Most 3PL companies only account for the shrinkage that happens in their warehouses. If shrinkage happens while the products are with clients, manufacturers or shipping carriers, they won’t count against the allowance.
Forecasting Requirements
Product demands fluctuate, so clients need to keep their 3PL partners informed of any potential spikes in demand due to holidays, promotional campaigns and other marketing efforts. In this section of the contract, you need to outline how far in advance the client needs to send order forecasts so the 3PL’s team can prepare the personnel and warehouse space needed to handle the influx of orders.
The client probably can’t forecast demand spikes fully, but the 3PL can set an accuracy range instead. If the client’s forecast is way off the mark, the 3PL can charge extra for additional labor and services provided.
A good way to ensure demand alignment is holding a regular call to discuss upcoming promotions, holidays and other events that may increase product demand.
3PL Visits and Account Management
Clients can better understand how the logistics company treats their products when they visit a fulfillment center. This is completely normal since they’re paying a pretty penny to receive logistics services.
However, 3PL providers should regulate client visits by requiring prior notification that they’re about to visit. This way, a company representative can accompany the client to answer their questions.
Another thing this section governs is their account management. In many cases, business relationships heavily hinge on relationship management between the two parties. This section should outline the account manager’s standards and decide whether either party can ask for their removal if they consistently underperform.
Insurance Coverage
This section outlines what kind of insurance each party should have for the duration of their 3PL partnership as well as their coverage values.
Common insurance coverage types 3PL contracts may stipulate include:
- Warehouse legal liability: This coverage protects the client’s goods if they’re damaged by careless handling, theft and similar causes.
- General liability: General liability insurance covers medical costs, legal fees, damages and other costs that may arise after somebody gets injured on the 3PL’s business premises.
- Business interruptions: Business interruption insurance compensates the logistics company if they can’t run warehouse operations due to natural disasters or other causes of interruption.
- Transportation coverage: Transportation coverage compensates the client if their goods are damaged by carrier negligence during transport.
- Employee dishonesty: This covers losses caused by theft, embezzlement, forgery, fraud and other dishonest acts perpetrated by employees.
- Worker’s compensation: This provides warehouse workers with money to cover medical bills and living expenses if they get injured on the job.
Employee Hiring Provisions
Since 3PL companies and their clients work together closely, it stands to reason one party might be interested in hiring employees from the other. To prevent conflict, you need to outline the terms and conditions of hiring each other’s employees.
If one party allows the other to hire terminated or laid-off employees, you can implement a waiting period before they’re eligible for employment.
Provisions for Independent Contractors
This section usually comes into play for companies positioning themselves as independent contractors. Essentially, it outlines that the logistics company is an independent contractor, not a joint venture partner.
Indemnification Clauses
An indemnification clause shifts the cost of lawsuits from one party to another. An example of indemnification happens when a 3PL company asks the client to pay legal fees if a third party ever sues the company for harm caused by the client’s product. Since the client is the supplier, assuming the 3PL wasn’t negligent, they’re responsible for taking on the lawsuit.
Since this is a legal matter, you should consult your lawyer when drafting the contract template’s indemnification clause.
Advertising Rights
When a client gives a 3PL company advertising rights, it’s allowed to use the client’s company name and logo on promotional material like websites, brochures and trade show booths. This section governs which marketing materials 3PLs can put the client’s company in.
Assignment Provisions
Assignment provisions rule whether this contract can be assigned to another party without the consent of the co-signer. A scenario where this provision may come into play is if another company acquires the client.
Intellectual Property Clauses
Both signing parties of a 3PL contract have intellectual property to protect, and these clauses govern how to protect them. Things to protect as intellectual property include:
- Order forecasts
- Product materials and specifications
- Customer order details
- Marketing methods and techniques
Agreement Termination Clauses
These clauses govern how either party can terminate the contract. Naturally, these contracts are terminated simply by letting the agreement period pass.
But you can include a provision where one party can cancel the service agreement by submitting a termination notice. Typically, this notice period is two to three months.
Price Increases and Adjustments
The cost of eCommerce fulfillment services may increase due to various price hikes as time passes. This section outlines the regularity and amount of a logistic service provider’s price adjustments. Generally, price increases happen annually based on a certain metric, like a set percent or the consumer price index.
Key Takeaways
A 3PL contract defines the terms of a working agreement between a logistics provider and its client. It governs every detail of the relationship to ensure everybody knows what they’re getting into and prevents disputes from happening down the line.
3PL contract templates help you draft contracts quicker since you don’t have to make contracts from scratch for each partnership. Instead, you can start with a pre-written document and modify the contents according to your needs.
In addition to good contracts, a robust warehouse management system (WMS) is integral to a 3PL company’s success. ShipHero’s WMS is here to help 3PLs improve order accuracy, reduce warehouse costs and so much more. Contact us today to learn how our WMS can help you.
Frequently Asked Questions
What is a 3PL Service Agreement?
A 3PL service agreement is a document that outlines the rights and obligations of a 3PL company and its client. It governs the 3PL’s scope of work, work standards, service prices and other essential details of the logistics partnership.
What are Some Common Elements in a 3PL Contract Template?
Some common elements in a 3PL contract template include:
- Contract duration
- Inventory management standards and expectations
- Price increases and adjustments
- Warranty clauses
How Can a Business Ensure a Fair 3PL Agreement?
To ensure a fair 3PL agreement, businesses should hold discussions and find a solution that benefits the 3PL company and the client.
Feb 16, 2023 | Blog
As the eCommerce and warehouse space continues to expand, more 3PL software cloud-based solutions are available. With so many options on the market, it can be hard to know which is right for your business needs. We’ve compiled the best cloud-based 3PL software to keep warehouses operating at peak efficiency.
What is 3PL Cloud Software?
3PL Cloud Software is a revolutionary tool that 3PL companies can use to turbocharge their operations. With it, 3PL professionals can remotely access the software from any location with an internet connection and manage their inventory, logistics, and transportation effortlessly. And 3PL Cloud Software isn’t all business as usual — it comes with some real boosters such as real-time tracking, automated reporting, and integration with other systems and platforms that make the 3PL process more efficient.
Benefits of Third-Party Logistics Software
Companies that use cloud-based warehouse management solutions can gain many benefits, including:
- Increased Efficiency: Using third-party logistics software can streamline several fulfillment operations, such as tracking and reporting, saving time and reducing errors. In addition, it can help companies ship and handle a much higher volume of orders while providing a higher accuracy in shipments.
- Centralized Visibility: By utilizing 3PL software, companies can monitor the status of orders and shipments with complete visibility and make adjustments when necessary. As a result, companies can identify problems faster and resolve them more efficiently.
- Better Inventory Management: Using 3PL warehouse management software, companies can track inventory levels and manage stock, preventing stockouts and overstocks.
- Cost Effective: Companies can reduce costs by optimizing logistics processes and identifying opportunities to improve logistics processes with third-party logistics software. Suppliers and carriers may also be able to negotiate better rates.
- Improved Customer Service: By providing real-time tracking and delivery updates and handling customer inquiries and complaints more efficiently, 3PL software can help companies improve customer service.
- Integrations: Integration with other systems, such as ERP, accounting software, CRM, etc., is common in most 3PL solutions. By doing this, the company can better understand its business and make more informed decisions.
- Scalability: Businesses of all sizes can easily use 3PL software because it can scale up for fast-growing businesses or down as their needs change.
Maximize the Benefits of 3PL Software
3PL cloud-based warehouse management solutions offer many opportunities for businesses and online retailers alike, to work smarter and save time, but to truly maximize the benefits of 3PL software, you must do more than just “set it and forget it.”
Integrating 3PL with other systems like ERP and accounting software can reduce troublesome data entry tasks. Once integrated, ensure that everyone using 3PL is appropriately trained to know precisely how to take advantage of its features.
Reviewing your 3PL data regularly gives you insight into your warehouse management capability and helps you make informed decisions based on accurate information. You can also use 3PL’s customizability options to tailor the system according to your needs, keeping staff and third-party logistics providers in sync beforehand.
Automation is also key – use 3PL to its full potential by putting as many small processes on automated repeat as possible – freeing up time and generating fewer errors along the way! Fewer errors lead to a better customer experience and increased customer satisfaction.
Get Started Guide for 3PL Software
Getting started with 3PL software solutions can be a straightforward process, but it’s essential to take the time to plan and prepare beforehand to ensure a smooth implementation. Here are some steps you can take to get started:
- Research different 3PL software options to find one that best fits your needs and budget.
- Identify your specific business requirements, such as inventory management, shipping, and tracking, and make sure the software you choose can meet those needs.
- Set up a meeting with the vendor to discuss the software in more detail, ask any questions, and get a demo.
- Once you’ve decided on software, work with the vendor to plan the implementation.
- Create a project plan that includes a timeline and milestones for the implementation.
- Identify key stakeholders and assign roles and responsibilities for the implementation.
- Train all employees using the software to ensure they understand how to use it effectively.
- Test the software thoroughly before going live to ensure it meets your business needs and has no issues.
- Once the software solution is live, monitor its performance and make necessary adjustments.
It’s also important to note that replacing all of your existing software with 3PL software is unnecessary since most can be integrated with your existing tech stack. The goal with any 3PL software is smart warehouse management.
What Features Should You Look For in a Cloud Software
When looking for cloud-based 3PL software, there are several key features to consider:
- Inventory management: The software should allow you simple inventory control including real-time updates on stock levels and the ability to set reorder points.
- Order management: The software should provide a complete view of the order process, from purchase order to delivery, including the ability to track order progress and view customer information.
- Shipping and tracking: The software should integrate with major carrier companies and provide real-time carrier tracking information.
- Reporting and analytics: The software should provide detailed real-time visibility reports and analytics on key performance indicators, such as sales, stock movements, inventory levels, and shipping costs helping with operational processes.
- Automation: Look for features that automate repetitive tasks, such as order processing, inventory management, and shipping, to save time and reduce errors. Automation rules help everything from operational efficiency to fulfillment processes.
- Scalability: As your business grows, you’ll need software that can scale, so look for a solution that can handle increasing volume and complexity.
- Integration: Make sure the software can integrate with other systems, such as your ERP, accounting, and e-commerce software, for a seamless data flow.
- Security: Confirm that the software provider has proper security measures to protect your data and ensure compliance with industry standards.
- Support: Look for a provider that offers 24/7 support and a dedicated account manager to help you implement and use the software.
How Much Does a 3PL Cloud Software Cost?
The cost of 3PL cloud software can vary depending on features and capabilities, the size of your business, and the number of users. When it comes to billing, some software providers offer a monthly or annual subscription, while others charge per user or transaction.
3PL cloud-based software varies widely in cost. The number of features, users, and your business all play a role in the overall price. Some providers also offer custom pricing for larger companies with more complex needs. When it comes to cost, reviewing all of the features provided by the 3PL is key to truly understanding its value.
It’s also important to remember that there may be additional costs for implementation, customization, and training. It’s best to clearly understand your business needs and budget before approaching a provider and to ask for a detailed breakdown of all costs upfront.
It’s also important to note that even though the cost may seem high initially, investing in a good 3PL software can help increase your efficiency, reduce labor costs, and increase your revenue in the long run.
Best 3PL Cloud Software
1. ShipHero
ShipHero is a leader in powerful shipping software and fulfillment solutions. Offering ways to unlock growth potential for emerging brands and take existing business success even further. Their one-click integrations with major online marketplaces help create convenient end-to-end checkout experiences that give customers options when shopping. ShipHero’s reliable partner programs offer the benefit of extensive reseller support, including Shopify Plus certification – making them second to none in the eCommerce market!
Key Features:
- Eliminate the need for costly and time-consuming integrations with shipping carriers.
- Get up and running quickly with our pre-built, cloud-based warehouse management system.
- Streamline your warehouse operations with powerful inventory management features.
- Enjoy a high degree of process accountability and transparency.
2. Fishbowl
Fishbowl’s manufacturing and inventory system offers SMBs the opportunity to revolutionize their processes, increase efficiency, and maximize savings with real-time stock updates. Leverage its powerful control features to give your SMB a competitive edge!
Key Features:
- Reduce inventory stockouts and overages.
- Improve customer service with shorter lead times.
- Make better production decisions with real-time data.
- Streamline purchasing and raw materials management.
3. Infoplus
Infoplus WMS is a powerful warehouse management system tailored to streamline the operations of small and midsize 3PLs, eCommerce Retailers, and Wholesalers. Stay in control with real-time inventory insights across your entire network while optimizing tasks such as shipping and fulfillment!
Key Features:
- Streamline processes for different lines of business under a single software.
- Produce products on demand with print-on-demand capabilities.
- Create and manage unique workflows for iOS or Android devices.
- Handle eCommerce bundles and flash sales with Kit On Demand.
4. Shipedge
Shipedge offers an all-inclusive warehouse management solution for enterprises of any size dealing with various products. This complete warehouse management system technology drastically simplifies inventory tracking and fulfillment automation processes and even provides QuickBooks integration capabilities to streamline operations.
Key Features:
- Maintain control of inventory and orders with easy-to-use tools.
- Reduce the amount of time spent on administrative tasks.
- Ensure the business is running as efficiently as possible.
- Real-time insights into what’s selling, what needs to be restocked, and more.
5. Synapse WMS
Zethcon’s Synapse warehouse management solution is a leading solution for empowering small and midsize businesses by empowering them with advanced warehouse management capabilities. This robust 3PL-centric system works on various platforms, including Mac, Android, and Windows, making it accessible to all organizations regardless of their IT environment.
Key Features:
- Reduce or eliminate data entry errors with 3pl-centric features.
- Integrate with other systems seamlessly.
- Import large volumes of data quickly and easily.
- Get help from warehouse management experts to plan and deploy your solution.
What 3PL Software Does Your Business Need?
When choosing a 3PL cloud software for your eCommerce or fulfillment business, it’s important to identify your specific requirements and look for software that can meet those needs. You should also consider scalability, integration, security, and support factors. It’s also important to research options and compare features and costs before deciding.
Key Takeaways
- 3PL software can help streamline the logistics process and supply chain processes and increase efficiency and visibility.
- For maximum efficiency, it’s important to integrate it with other systems, ensure proper training, and make data-driven decisions.
- When getting started with 3PL cloud software, it’s important to research different options, identify specific business requirements, plan for implementation, and test the software before going live.
- When looking for cloud-based 3PL software, key features include inventory management, order management, shipping and tracking, reporting and analytics, automation, scalability, integration, security, and support.
- The cost of 3PL cloud software can vary widely, and there may be additional costs for implementation, customization, and training.
- Common features typically useful for most companies include inventory management, order management, shipping and tracking, reporting and analytics, automation, scalability, integration, security, and support.
3PL Cloud Software FAQs
What Does 3PL Stand For?
3PL stands for “Third-Party Logistics.” It refers to using third-party logistics companies to outsource elements of a company’s logistics process and supply chain management operations. This can include transportation, warehousing, and distribution services. Using a 3PL provider improves efficiency, reduces costs, and improves the overall supply chain process.
Is 3PL an ERP System?
No, 3PL and ERP are not the same things.
3PL stands for “Third-Party Logistics” and refers to using a third-party provider to outsource logistics and supply chain management operations such as transportation, warehousing, and distribution services.
On the other hand, ERP stands for “Enterprise Resource Planning” and refers to software that helps businesses manage and automate various business processes such as finance, accounting, manufacturing, logistics, supply chain, and more. It’s an integrated system that allows companies to manage and analyze data from multiple business functions, providing an overview of the entire organization.
While 3PL software can be a part of an ERP system, it is not an ERP system. It’s a specialized software that focuses on logistics and supply chain management and can be integrated with an ERP system to improve the overall efficiency of supply chain operations.
How much does a warehouse management system cost?
Depending on the software’s features and capabilities, your business size, and how many users access the software, the cost of 3PL cloud software can vary greatly. The price of certain software packages varies depending on the provider. Some charge per user or transaction, while others offer monthly or annual subscriptions.
Dec 1, 2022 | Blog
What is Big Cartel?
Are you an independent artist? If so, have you ever thought about using Big Cartel? On their website, they promote themselves as “Easy online stores for artists & makers.” This is an eCommerce platform where you can create an online store, add product catalogs, list different product options, develop product descriptions, display art, accept credit card payments, and run promotions. They have helped artists since 2005 sell art, clothing, prints, jewelry, clothing, and more. It is a website built “for artists, by artists” according to Big Cartel with the goal to make Big Cartel empowering for anyone who uses it. And when it comes to site design, you can customize your eCommerce store using several free themes with the simple and user friendly website builder!
What is Order Fulfillment?
Order fulfillment is the process which gets your product from your warehouse, to your customer. The process includes inventory receiving, storing, processing, picking and packing, and transporting the items to the shipping address of the customer. The efficiency of this is measured in the time it takes for an order to get to the customer’s porch once processed. While some large retail companies can afford to build out their logistical processes including purchasing a warehouse, buying equipment and trucks, and hiring a team to manage their fulfillment process, many smaller companies prefer to use a third-party order fulfillment provider instead who has already created this logistical structure.
How Does the Big Cartel Fulfillment Process Work?
When handling your shipping through Big Cartel, you will need to work with a fulfillment provider as Big Cartel does not currently have warehouse operations available to its users. Once you have identified a fulfillment provider, you will need to send your order from Big Cartel to the fulfilling warehouse. This happens after the payment process is completed by the customer and an order generated. If you work with companies who directly integrate into Big Cartel, this process is highly streamlined. You can simply send your order to a fulfillment provider with a click of a button instead of using a more manual process outside of your eCommerce store.
What Does A Big Cartel Order Fulfillment Provider Do?
A fulfillment provider for Big Cartel will help you enhance the customer experience. They make it so you can get your orders shipped to the right place, on time, with a high quality of packaging and handling. Which means your products get to your customers safely and they have a great experience with your store.
What Are the Benefits of Using a Big Cartel Order Fulfillment Service?
If you use Big Cartel as your website, you’ll likely want to use a fulfillment service who can integrate directly into your program. This means a higher rate of tracking for order shipping, more shipping options, and less manual processes which can lead to lost orders. When you use a fulfillment service your company puts its best foot forward for the customer, and often generates recurring business. Because if someone has a great experience with you, they are highly likely to purchase from you again.
Need a fulfillment provider? Check out ShipHero!
Factors to Consider While Selecting an Order Fulfillment Partner for Big Cartel
There are several factors to consider when searching for the right order fulfillment partner for your eCommerce business. Below are the top seven factors we recommend you consider.
eCommerce Platform Integration
Fulfillment for your business works best when your fulfillment provider integrates directly into your online store. This integration is important, it connects your business systems together so you can handle order processing in one place. It gives you the advantage by allowing your brand to keep up when many customers convert on multiple channels at once. Which means you can see your customers orders, inventory, sales, marketing, and accounting in one place, and helps you eliminate manual data entry.
Order Fulfillment Speed
In a world of single day and two day shipping, waiting any longer can stop your customers from completing orders, and send them looking elsewhere. The speed of your fulfillment is a huge factor when customers make the decision to return to your store. While on the search for order fulfillment providers, the speed at which they deliver your product should be a considerable factor in the partner you choose.
Storage and Fulfillment Fees
When you work with a fulfillment provider, you purchase space within their warehouse. Some fulfillment services charge for storage, by the item when shipped, or by monthly average order volume. You can count on your fees being roughly $3 to $5 per item on average. Though this tends to get higher when demand for fulfillment providers is at its peak. When you store inventory with a fulfillment partner, they will likely utilize different fees for different aspects of your inventory.
Pricing
As you hunt for the perfect fulfillment partner, you can ask for a breakdown of costs to understand exactly what you’ll be paying and why. The best fulfillment partners will look at your current fulfillment spend, compare it to your needs, and help you find a process which saves you money and returns more margin to your pocket. Additional costs for fulfillment providers may include storage costs, inventory levels, distribution costs, bin occupation, palletizing costs, and much more. Though many companies find these fees preferred to the cost of setting up their own logistical operation.
Returns Management
A good fulfillment provider can help you navigate the road to returns with return automation, warranties, and exchanges. The hassle of returns can quickly turn off a customer. If they have a bad experience with your product, then have a bad return experience, you can almost guarantee they won’t purchase from you again. A fulfillment provider who can help you with returns management in your eCommerce business can make all the difference.
Multichannel Integration
With a multichannel integration you can sell online, instore, on Amazon, on Etsy, and many other locations. Marketplaces like Amazon, eBay, Google, and Walmart are key places to sell and a prime example of multichannel retailers. Which means you need to have the ability to connect different systems or platforms involved in your eCommerce business together so you can streamline between them and create a consistent shopping experience.
Ease of Use
Using your fulfillment providers platform shouldn’t be hard. You should never be confused about where orders go or struggle to set up your logistical processes. Keep ease of use in mind when searching for a fulfillment provider. The goal of this solution is to take work off your plate and give you back time, and a complicated fulfillment solution, likely won’t give you that relief.
How We Chose the Best Big Cartel Fulfillment Companies
As we looked at fulfillment provider options for Big Cartel, we looked at several factors. The above seven to be specific with an emphasis on the ability to integrate into your store. Based on our findings, below are the three best Big Cartel fulfillment providers for your store.
Best Big Cartel Fulfillment Companies
If you want to dump the headache of running your own warehouse, or if you want to run your warehouse more efficiently, ShipHero has a solution. With both a steller warehouse management system (WMS) and a fully outsourced fulfillment option their clients have peace of mind. The warehouse management system (WMS) streamlines your warehouse’s entire processes and procedures to increase efficiency and cut costs.
Pros
With ShipHero you get a fully outsourced fulfillment solution with a user-friendly software interface. Plus, they focus on giving you 30% faster shipping times and can integrate directly into your Big Cartel store. And on top of all that, they have a highly rated client response team which provides you with a fulfillment expert to help with any questions or concerns in your supply chain.
Cons
There are no costs listed on the website, and if you’d like to get a cost you need to go through their quote process. This can be confusing for users who want to see pricing listed on the site but isn’t listed because ShipHero would prefer to customize your pricing to your needs.
Pricing
With ShipHero you can request pricing directly on the site and receive a demo and a customized quote to your needs. Plus your quote will have pick, pack, box & postage fees built into the fees so you don’t have to worry about the separate cost of those items.
Find out more about ShipHero’s Fulfillment Solution!
2. Fulfyld
This fulfillment provider has a direct BigCartel integration. They are an eCommerce service focused on helping eCommerce businesses handle everything from storage selection, to picking, packing, and fulfilling. They can help with your subscription box fulfillment and simplify your fulfillment processes by distributing inventory to the most effective location based on your client order history.
Pros
With Fulfyld, you will experience seamless integration into your Big Cartel store. This platform is easy to use, offers you simple, transparent pricing, and free shopping cart and marketplace integrations. They are focused on helping you succeed and have a highly effective support team.
Cons
According to reviews, tracking numbers are said to be slower to update, and if lost inventory does occur, claims tracking can be tricky to work through as well.
Pricing
With Fulfyld you get flat-rate pricing with no hidden fees. Though they don’t have pricing listed on their website, you can request a free quote. They will give you a clear list of what is included in your pricing as well as detail out each part of the fees you’ll be paying.
3. Printful
For those of you looking for a dropshipping, print-on-demand model for your store, Printful is a great solution. Because of their print-on-demand model, Printful will manage your inventory counts and shipping rates and various shipping options with no upfront costs, you only pay when you make a sale. Plus, they help you make personalized products to list in your store!
Pros
With Printful, you can list your product options and fulfill them through their print-on-demand model, or you can use Printful to make your products. Their website can help you design, print, or embroider any logo or picture you sell. Plus they have several print centers globally so they can support your business worldwide.
Cons
Printful does not hold any inventory, which can present a problem if your customer needs something right away but the materials are scarce.
Pricing
Printful has highly transparent pricing. It’s free to sign up then as you add products to your store you will see the pricing to make and ship those products to your customer. If you approve, you can get that product listed with your markup added!
Check out ShipHero’s Fulfillment Solution!
Final Thoughts
Your fulfillment provider matters. You need to choose the right provider to fit your business, and the marketplace you plan to utilize. eCommerce is a continually challenging field which ebbs and flows continually. Picking the right fulfillment partner will allow you to survive those waves!
Order Fulfillment for Big Cartel FAQs
How Long Does Big Cartel Take to Ship?
This is depending on the fulfillment provider you choose to work with. When you receive an order in Big Cartel you have the power to mark the order as “shipped” almost immediately, which, with the email address they entered at checkout, will trigger a tracking email to your client, but this is why it’s key to have your fulfillment provider integrated directly into your store. Because your clients may not get accurate shipping information if this is a manual process.
Does Big Cartel Provide Shipping Labels?
Yes, you can do this. Once your shop is connected you can print a packing slip from the Orders tab in Big Cartel. Here is the help article on how to do so.
Can I Link Printful to Big Cartel?
Yes! Printful has a direct integration into Big Cartel so you can start selling clothing, accessories, art, and other merchandise through your eCommerce store with no order minimums. You can connect Printful to Big Cartel by going to your Printful Dashboard and navigating to the Stores menu where you select and add your Big Cartel store.
Aug 2, 2023 | Blog
Outsourcing some of your operations to other organizations is a necessary part of the growth of eCommerce companies. Engaging the services of third-party logistics (3PL) solutions providers is supposed to help you save time and money, but it has its challenges, especially in the beginning. Fortunately, technology can make the process easier. Your 3PL company should choose a WMS (Warehouse Management System) platform that meets your requirements and those of your team and clients. There are plenty of 3PL WMS systems out there, but they differ in their efficiencies, integrations, and implementations. Choosing the best WMS software platforms can help you achieve success with your current clients and even attract a new, lucrative project.
What is WMS?
A WMS (Warehouse Management System) is a software solution that manages and implements warehouse processes in real-time. It is more comprehensive than just using fulfillment software. Warehouse management systems provide you with many different warehouse operations, such as order fulfillment, storage of goods, the printing of shipping labels, and managing workflows such as FIFO. Choosing the right warehouse management software suite can help warehouses operate more efficiently so that they can serve their customers more effectively.
What are 3PLs?
3PL stands for third-party logistics, and it is a common way of doing business in the eCommerce industry. In a 3PL setup, the company makes and ships the products at a warehouse that the eCommerce retailer company does not own. The company that owns the warehouse (the “third party” in third-party logistics) is in charge of fulfilling the orders and other warehouse functions. All WMS systems collect a lot of data regarding tracking, distribution, and other aspects of the supply chain. They also automate tasks to reduce labor costs and prevent miscommunications among workers. Some of them even have features that enable the software to make planning decisions, such as when to reorder certain products. Warehouses that engage in third-party logistics functionalities need WMS to serve their clients and their client’s customers efficiently so that they can stay competitive in the market.
Why is WMS Important for 3PLs?
WMS is important for 3PLs because a machine can keep track of more information at one time than a human being can, even a human being with a prodigious mind. When a warehouse implements WMS software, the WMS sends the relevant information to each employee’s mobile device. If your task today is order fulfillment in the shoe aisle, then your dashboard only shows you which shoeboxes you are responsible for picking, where to find them, and which truck to put them on so that the appropriate person can pack them. 3PL companies are also often in charge of ordering supplies, shipping orders to customers, and processing customer returns. Therefore, accuracy and traceability are of paramount importance for 3PL WMS.
How to Choose the Right WMS for Your 3PL
Choosing a WMS for your 3PL company is not something that you should do on a whim. You should research several 3PL WMS products from various companies before you make a decision. To do this, first, read some blog posts or a user guide or watch a demo video of the software’s features on the website of the WMS company. Write down the questions that come to your mind after your preliminary search for information about WMS products. Then call some WMS companies and ask your questions to someone in the sales or customer service department. Interacting with the company that makes the WMS is an important step because you want to make sure that the people who will help you set up and troubleshoot the WMS are helpful.
Scalability and Flexibility
WMS helps you be more accurate and efficient in the execution of your warehouse processes, even if you operate multiple 3PL warehouses in different parts of the country. You can use data to ensure that customers are receiving the package in record time. The WMS is always collecting and analyzing data about transportation costs and times so that the packages can reach the customers after the fewest number of steps and with the fewest errors. A WMS can do this as easily for just a few types of products as for a whole warehouse, and it can do it as seamlessly for multiple shipments of varying sizes as it can for a single order. Best of all, when there are glitches in the supply chain, the WMS can offer quick fixes, so you can easily work with the materials you have to meet the demands of the market.
Integration Capability
The best WMS for 3PLs integrates easily with a variety of business software platforms. You don’t have to buy the rights to access multiple new applications just to add WMS to your 3PL operation. If you use different software for invoices, charges, billing, reports, or other aspects of your business, WMS for 3PLs will integrate smoothly with your other software. WMS for 3PL plays well with others. When you implement WMS for 3PL, your warehouse employees will not notice any difference in their work device usage except that they will see the WMS logo on their portals and a longer list of options when they look at their dashboards.
Multi-Client Support
Your mission as a 3PL service provider is to partner with different companies in different areas of the country that use your warehouse location as a piece of their supply chain. Your clients have the goal of providing customer satisfaction and affordable prices for their customers, and your warehouse operations are tools that enable them to achieve that goal. Most 3PL providers store products belonging to a range of different companies in the same warehouse. Therefore, you must meet the needs of multiple clients simultaneously and ensure the timely delivery of all of their products. WMS for 3PL can help you fulfill that mission.
Real-time Visibility
The most significant relief that WMS brings to 3PL providers is that it enables warehouse managers to see what is going on in multiple areas of multiple warehouses all at the same time. WMS for 3PL gives you a bird’s eye view of the entire supply chain. You can see what is going on in different marketplaces, and you can use these insights to make wise decisions that benefit you and your clients. The real-time visibility that you get with WMS and transportation management systems (TMS) for 3PL can help you reduce errors and save on costs.
Automation Capabilities
Warehouse jobs have a reputation for being boring, monotonous, and dangerous, but automating some of your warehouse processes can help keep workers away from safety hazards and reorient their work toward tasks that require human judgment and communication while leaving the truly monotonous tasks to the robots. With WMS for 3PL, workers can enter input on devices, or simply watch the robots do their work as the machines do predictable tasks such as counting and stacking items or kitting products that customers frequently order together.
Advanced Inventory Management
Frequently reevaluating and modifying your warehouse workflows can help your warehouse stay efficient and competitive. For example, you can pick nonperishable products on a first in first out (FIFO) basis, while picking and shipping perishable food items, including those with a fairly long shelf life, on a first-expire-first-out (FEFO) basis. WMS can easily keep track of the complex organization of your warehouse and clearly and efficiently communicate it to workers on their devices.
Reporting and Analytics
Even the simplest WMS suites have robust reporting and analytics features. You can generate reports on demand or at regular intervals, and you can even watch the data update itself in real-time. You can use the reports generated by your WMS to make decisions about warehouse layout, reordering, pricing, and transportation routes, among other matters. You can even authorize the software to make certain decisions on its own based on the data. For example, you can rely on it to reorder a certain item whenever the stock level gets below a certain point.
Customer Portal
The most complete WMS for 3PL has a web portal not only for managers and employees but also for customers. Consumers who order products stored at your warehouse can track their orders in real-time. The customer portal can also help customers navigate the return process and provide necessary feedback.
Ease of Use
Business owners are familiar with the ups and downs of implementing new software or installing new devices at work. With the best WMS for 3PL, getting started working with the new WMS is as easy as downloading a game on your mobile phone and playing it. The user experience of WMS for 3PL is intuitive for employees and customers alike.
Vendor Support and Training
Even though it is easy to get used to the new WMS, many employees find it beneficial to have someone explain to them live how to use the features of the WMS. In addition to online training videos, we offer in-person training to help the employees in your warehouse and your company get used to using the WMS features that they will be using in their work on a regular basis.
WMS for Different Industries in 3PL
Different industries have different warehouse management needs. WMS suites are available that are suited to different industries, such as raw materials, wholesale goods, and retail distribution centers. If your 3PL company is in charge of various parts of the supply chain, then you should choose a WMS that is equipped to manage the processes of various kinds of warehouses.
Best Integration of WMS in 3PL
Most companies that seek to implement WMS are not small startups that have just recently gotten the idea that they want to store and distribute products. Rather, they are established 3PL service providers that have been in the supply chain logistics industry for years. They already use business software that works for them, so they need a WMS that integrates well with it.
Cost of Implementing WMS in 3PL
The days of installing software onto each individual device in your network from a CD-ROM are long gone. Not only is implementing business software, including WMS for 3PL, much faster than it used to be, but it is also less expensive. WMS for 3PL is available for a monthly subscription fee, with different packages available at different price points.
Pros of WMS for 3PLs
WMS can help 3PLs save on labor costs and shipping times because they enable warehouse managers to see what is going on at all parts of the supply chain. They reduce human error and lack of efficiency by tracking the progress of the work in real-time and updating the information on workers’ devices on an ongoing basis.
Cons of WMS for 3PLs
Once you get started with WMS, you will wonder how your warehouses ever managed to operate without it. All new software programs involve a learning curve, but it should not take long before the employees of your warehouse get used to using the new WMS.
Key Takeaways
Automation and analytics are key to operating a warehouse efficiently and ensuring that the supply chain operates in a streamlined manner. WMS can help your warehouse or 3PL operation reduce labor costs and increase the speed and accuracy of work.
FAQs
These are some common questions that 3PL service providers ask about warehouse management systems.
What is the Difference Between ERP and WMS?
ERP stands for enterprise resource planning. Warehouse management systems (WMS) are only one aspect of ERP.
What is the Pricing for an Extensive 3PL Warehouse Manager?
An extensive 3PL warehouse manager costs a monthly subscription fee that is higher than the subscription fee that you would pay for a simpler one.
Is There a Suitable 3PL Software for Small Businesses?
3PL software packages are available for businesses of all sizes. You can choose a 3PL WMS suite that fits the needs and size of your business.
Contact ShipHero today for a demo.
