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Are you using BigCommerce for your business? Or, are you thinking about using BigCommerce? We don’t blame you. In fact it’s one of the most trusted eCommerce softwares on the market with a highly rated industry leading customer satisfaction team. This SaaS software can put you ahead of the game when it comes to your online store and it integrates with multiple different softwares your business can utilize.

What is BigCommerce?

If you haven’t heard of BigCommerce, this software provides retailers with a SaaS platform to serve all their eCommerce business. The software includes many customizable services such as online store creation and search engine optimization for businesses of all sizes. BigCommerce is a company who isn’t satisfied with “good enough”. They continually strive to push the boundaries of eCommerce offerings and have won several awards in doing so. No matter what the structure of your business looks like, this solution can work with all business models including multi-storefront, headless commerce, B2B, wholesales, omnichannel, international, and commerce-as-a-service. They offer both enterprise and essential solution offerings so you can pick the package which works best for you and your business. And the open API offers users the ability to tie other softwares for their business needs directly into BigCommerce. If you’re unsure about the purchase of this software, BigCommerce provides you with key insights into their product before you buy so you know exactly what to expect from the software. With this 17 minute product tour video you get deep insight into the product itself.

Why use BigCommerce?

This is a platform to use if you want to customize your eCommerce solution to fit your way of doing things. Their goal is to offer business owners flexibility, scalability, and the speed and agility needed to protect and grow sales. They even claim that by using BigCommerce, many leading brands have seen significantly lower TCO (total cost of ownership) which gives your product better value in the long run. Perhaps one of the best features of BigCommerce is the Apps Marketplace. Here you can find 100s of apps and integrations which can help your business with anything from advertising to email marketing. And if you have any issues along the way they offer many forms of customer support including a live chat, phone support, email support, and a listing of common questions with their resolutions. Order management for your business is simple with their order management workflow that starts at receiving an order. It has a built-in list of order statuses which represent the stages within the fulfillment process, and of course the stages can be re-labeled to fit the workflows your business uses. Which means any fulfillment process you currently have, or want to build, will be achievable within this platform.

BigCommerce Fulfillment Options

But at the end of the day, BigCommerce is only a software solution. You still need to decide how best to fulfill your customers' orders. Especially as you grow or experience seasonal spikes it’s important to have a fulfillment option which can scale as you need it to. This is why we have curated a list below of some of the best order fulfillment services for you as a seller if you use BigCommerce.

ShipHero

This is a great option if you want to dump the headache of running your own warehouse or if you need technology to help streamline your warehouse processes. With both a steller warehouse management system (WMS) and a fully outsourced fulfillment option, their clients get peace of mind. The warehouse management system (WMS) streamlines your warehouse's entire processes and procedures to increase efficiency and help your team become more effective. The WMS also helps you get rid of manual processes and lost paperwork, confusing fees, and bland generic packaging. Plus, they offer a highly rated Client Support team so you work with a fulfillment expert to help you with any questions or concerns on your supply chain. Overall, whether you want to outsource your order fulfillment or need software to streamline your processes, they have the industry knowledge to help.

Cahoot

This is a great solution when looking at your order fulfillment. They have a quick setup with BigCommerce which allows you to connect your store and delineate your inventory to Cahoot fulfillment locations. In terms of order volume you can start small, then as you grow you can add product inventory in any Cahoot fulfillment center where your products are popular. They have high fulfillment standards and reliable same-day fulfillment Monday through Saturday. Working with them will get you automatic order routing and fulfillment, free and fast shipping options, a nationwide shipping network, and visibility into each delivery. They want to help you level the playing field against marketplaces like Amazon and Walmart who create high shipping expectations with fast and free shipping options for their clients and can help you do so within your own store.

ShipMonk

You can sync your BigCommerce store directly with ShipMonk. Account creation takes seconds and your account is free until you start shipping products from their warehouse. They are a great fulfillment solution for high growth brands who need an elastic fulfillment solution. With their inventory portal, you can identify best selling SKUs and receive restock alerts. Plus they understand shopping cart abandonment is often due to high shipping costs, so they negotiate great shipping rates for those on their platform. And they are not limited to the type of product they can help you fulfill as they have experience with many products from clothing to food and beverage products. In addition, they continually and heavily invest in warehouse automation technology. This means your business will get the advantage of quicker fulfillment at cheaper costs as this technology continues to improve.

Verde Fulfillment

With a direct integration into BigCommerce, Verde Fulfillment is another good choice. Their cloud-based system gives you real-time access to many features including back orders. They can also help your business with all the frustrating product returns, especially because you want your customers to have the best experience possible when they have to return something. In addition their inventory management system is intuitive and smart as it’s updated in real-time. And, as you know, limiting SKUs in your supply chain is important. With Verde you can set inventory alarms which automatically help you to know when a product has low value and you can quickly disable it from your shop. Their goal is to offer your clients the best experience possible so they will become repeat customers.

Amazon MCF

New to the BigCommerce App Marketplace, you can integrate with the Amazon Multi-Channel Fulfillment (MCF) network in order to fully automate your fulfillment. This gives your BigCommerce orders the power of reliable Amazon fulfillment, even if you don’t sell directly on the Amazon site. With the Amazon MCF network you’ll get faster shipping, your customers will receive delivery promises at check out, and you can benefit from automatic inventory placement. These are Amazon-backed delivery dates so your customers know they will arrive ontime. Plus with Amazon MCF you can set customer price rules in order to have control over the cost of shipping. You can even replace Amazon’s rate with a rate of your own, or offer free shipping options.

Streamline Fulfillment

Streamline Fulfillment will connect directly to your BigCommerce store and handle your order fulfillment, shipping, and supply chain management on a global scale. When you sign on with Streamline an expert will work with you to analyze every part of your fulfillment process. In this consultation they will listen to your future plans and needs, while gaining an understanding of where you are currently at in your logistical journey. Together they will work with you to improve these processes so your company can save time and money. Which means you will get a tailored approach to your fulfillment specific to the needs of your business. For them an intimate relationship with their clients is important as they hope to be a partner their clients can trust to help them grow their business.

Fenix Commerce

With Fenix Commerce, you get an AI-powered solution which streamlines the order experience. It has API’s for easy integration and supports all major eCommerce platforms, including BigCommerce. They can help you reduce shipping costs because their software can intelligently select the cheapest shipping providers which will get an order to its destination within the necessary shipping window. Plus the platform can route orders to specific fulfillment centers so you can optimize your inventory management by keeping products within customer proximity. And if you need to get set up quickly they can have you up and ready to go in as little as two days. Which means you have quick data to help you make high quality logistical decisions for your company. They specifically seek to help retailers and DTC brands provide a high quality experience to their customers.

Deliverr

This order fulfillment solution allows you to fulfill your orders with 2-day and next day delivery. They handle your port to porch logistics with the goal to help businesses of all sizes offer competitive shipping. With their vast network you can keep your product within 100 miles of your customers. And they understand that your business may require multiple fulfillment and logistics services in order to fill your business needs. With them you can mix and match logistical services as you build out your company's future. Plus, if you like the idea of Amazon’s MCF fulfillment, Deliverr’s transparent pricing model is competitive with Amazon’s MCF network. And the prices you see with the cost calculator on their site includes receiving, picking and packing, order handling, packaging, and shipping to any destination in the US.

ShipWire

This order fulfillment software works with BigCommerce and is available via Order Desk. It’s a ready-to-use integration which doesn’t require in-depth knowledge to set up. With ShipWire you get access to order entry directly from BigCommerce to ShipWire automatically, order tracking with expected delivery dates, multi-ship support to handle multiple shipping address on an order, order sync daily, and an inventory sync from ShipWire to BigCommerce four times a day. ShipWire is also a global fulfillment solution so it’s a great option if you have customers outside of the US. They specifically work to fulfill orders within eCommerce, direct-to-customer, retail, and dropship channels. Plus they have been operating for over 40 years! Which gives you a marid of logistical expertise at your fingertips.

Flowspace

This is a great easy to use platform for eCommerce brands. The Flowspace has a connected network of fulfillment centers nationwide which allows you omnichannel fulfillment at scale. With their software you can retain customer data, beat customer expectations, and support your omnichannel eCommerce. You can connect your brand with a one click integration and begin optimizing your inventory with the Network Optimization algorithm. This helps you identify the fulfillments centers needed for your business and can help you to determine how best to allocate your inventory. They make fulfillment easy by handling the process of picking, packing, and shipping your product. And it connects everything in one place offering an eCommerce command center where you can organize your orders and inventory, and gain customer insights.

Conclusion

When it comes to customer retention and shopping cart abandonment, every eCommerce store is looking for ways to improve the customer experience. If you use an order fulfillment system alongside your BigCommerce store you can streamline those processes and give your clients a high quality experience. Companies who ship faster and share tracking information along the way build customer retention. This is why the fulfillment solution you choose is such an important choice. Aside from your store, it’s one of the most palpable processes within your business a customer will experience. And if you use one of the above fulfillment services, you get the chance to leverage the knowledge of logistical industry experts who are as dedicated to quality as you are.

Don’t work with BigCommerce? Find the best carriers for many of the highest profile marketplaces on the web.

Top 10 Best Order Fulfillment for AmazonTop 10 Best Order Fulfillment Partners for WalmartTop 10 Order Fulfillment for eBayTop 10 Best Order Fulfillment Options for WixTop 6 Best Order Fulfillment Options for SquareTop 10 Best Order Fulfillment Partners for ChannelAdvisorTop 6 Best Order Fulfillment Partners for WooCommerceTop 10 Best Order Fulfillment Options for SquarespaceTop 10 Best Order Fulfillment Options for eCommerce Sellers

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

PricingShipHero 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

PricingShipwire 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

PricingYou 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

PricingContact 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

PricingYou 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

PricingStorage 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

PricingRakuten 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

PricingShipMonk 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

PricingSPS 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

PricingYou 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 AmazonTop 10 Best Order Fulfillment Partners for WalmartTop 10 Order Fulfillment for eBayTop 10 Best Order Fulfillment Options for WixTop 6 Best Order Fulfillment Options for SquareTop 6 Best Order Fulfillment Partners for WooCommerceTop 10 Best Order Fulfillment Options for BigCommerceTop 10 Best Order Fulfillment Options for SquarespaceTop 10 Best Order Fulfillment Options for eCommerce Sellers

The realities of the COVID-19 pandemic mean that more people are taking advantage of eCommerce than ever before to avoid hitting the stores. Unfortunately, a rise in online shopping tends to result in a corresponding jump in returns. According to a survey by the National Retail Federation and Appriss Retail, the average online returns rate last year was 20.8 percent – that represents a 2 percent increase over the previous year.

While returns are a fact of life in the eCommerce world, having the right returns management system can make a significant difference when it comes to your company’s reputation and profitability. Not only can an inefficient returns process in your warehouse damage customer relations, but it can also result in extra work for your staff and affect your bottom line. As winter and the holiday season approach, discover how ShipHero can help optimize your warehouse for returns.

What Is a Warehouse Return Process?

Returns management is a crucial part of any warehouse system. Whereas traditional logistics refers to the process of delivering products to your clients, reverse logistics involves transporting goods from clients back to their point of origin. At this point, previously purchased inventory can be resold, refurbished, or in some cases trashed or recycled. Not only does optimizing the returns process in your warehouse allow you to retain value, but it also provides valuable insight into which items are being sent back regularly and why.

How Do You Optimize Warehouse Operations?

Whether you handle returns management internally or outsource this job to a third party, optimizing warehouse operations is crucial to maintaining your customer base and your bottom line. Here are some tips for improving your system before the holiday season.

Identify Why Customers Are Returning Your Products

When assessing the returns process in your warehouse, one of the first steps is quantifying why goods are coming back to you. Businesses can cut costs by addressing some of the main issues, such as product quality, shipping damages, sizing confusion, and items not arriving as pictured online. Correcting some of these problems can save your company money while also improving your reputation with customers.

Consider Automating Your Warehouse

Of course, not all returns are controllable. However, automating warehouse processes can go a long way toward cutting costs while also improving efficiency. By utilizing new technologies like automated order picking and autonomous mobile robots (AMRs), companies can streamline putaway processes and restock popular items faster. As a bonus, these systems help improve accuracy and cut down on in-aisle traffic while freeing team members up to focus on tasks requiring a human touch.

Look at Your Logistics

Busy modern companies may struggle to handle all their logistics in house. If returns are overwhelming your business, it may be time to consider using a warehouse management system like the one available through ShipHero. Along with providing insight into which products are being returned and why, the software allows for easy integration with eCommerce platforms and vendors. As a bonus, businesses enjoy access to the most up-to-the-minute shipping rates from major carriers, so they don’t pay more getting returns out the door.

When it comes to returns management, today’s businesses have a lot on their plates. The fact is that every returned good has an impact on your bottom line. Over time, businesses that don’t find ways to optimize warehouse returns through technology and automation may find themselves raising prices to combat the lost income. By reducing unnecessary returns and repackaging items for resale as quickly as possible, companies can keep profits high while ensuring their online reputation stays positive.

Talk to our software experts today and learn more about how our warehouse software is built for eCommerce brands to optimize their warehouse and Returns management.

Aaron Rubin, Founder & CEO

ShipHero

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

Follow Aaron on Twitter&LinkedIn.

The Entrepreneurs We've Talked To This Season

It's hard to believe that our little podcast, Objects! With ShipHero, has reached its season finale already. But what a season it's been! From laughter to tears, we've navigated the ups and downs of being an entrepreneur with the help of ten inspiring guests who have launched successful products in the eCommerce industry. We feel grateful to have been able to share our guests' journeys and learn from their experiences—cheers to all our fellow entrepreneurs out there crushing it every day. Keep launching, keep learning, and keep growing. Which podcast episode was your favorite?

Which one inspired you? Let’s recap on a very successful season one and the fabulous guests we had along the way!

Episode 1: WiFi Thermometers and Hygrometers

Digital sensors. Who knew? Not these guys, until they discovered a way to make and sell digital sensors that measure humidity, temperature, and other environmental conditions. It turns out there are all sorts of people and businesses who need these sensors. So the entrepreneurs turned their creative consultancy into a thriving business, making and selling digital sensors to everyone from individuals to major corporations. What started as a simple idea has turned into something pretty amazing. Become a fan of SensorPush by listening to our podcast.

Episode 2: B Side: Sensor Push

If you're feeling lost or adrift, take a page from Nick and Jonathan's book and start selling something. It can be anything from your consultant skills or your story. The important thing is that you get started somewhere, and the rest will follow. Check out our interview with Nick and Jonathan from SensorPush to hear more about their entrepreneurial journey.

Episode 3: EDC Knives & Climate Friendly 3PLs

If you're curious about the world of EDC, listen to our podcast with special guest Yong-Soo Chung. In this episode, you'll learn about the community's origins and what motivates people to seek out the best-made versions of unremarkable items. You'll also hear hilarious stories about knives (you might even want to start carrying one yourself). Who knows? Maybe after listening to this episode, you'll be inspired to launch your own online store for everyday carry enthusiasts.

Episode 4: D2C Jewelry Brand

Stefanie Taylor is the perfect example of a leader who knows how to read her market and adapt. She’s taken her 3rd generation retail jewelry company from $3M annual revenue to over $20M by being bold and pivoting her business model when necessary. If you want to learn more about being a successful entrepreneur, listen to our podcast with Stefanie herself.

Episode 5: Healthcare Fashion

If you're in the market for a good cry, listen to our podcast with special guest Chat Razdan. The founder of a healthcare fashion brand, Razdan, is radically changing how hospital gowns and other medical devices look and feel. He founded his company without any experience in healthcare OR fashion, proving that anyone can make an impact in this industry. So pull up a chair, grab some tissues, and enjoy the story of one man's mission to make healthcare more comfortable for everyone.

Episode 6: B Side: Urban EDC

The world is a big place, but it can be even bigger if you're willing to explore. I think that's what our guest today was trying to say when he told us how far his journey has taken him - from Wall Street right into coding school and then onto taking tests selling headphones on Amazon! Listen up because this podcast could give insight to anyone who doesn't know where their passions lie or how they should use them as an income source with a special guest: Yong-Soo Chung.

Episode 7: Adult Toys (and MORE)

As a self-taught entrepreneur, Anna Dee quickly learned that the best way to succeed was to dive in and figure things out as they came. Starting with handmade items on Etsy, she soon expanded her offerings and developed her website for her now wildly popular dildo business. That little venture turned into five successful companies, including a warehouse, online store, and community, where she teaches others about entrepreneurship and maintaining a positive mindset. Be sure to listen to this fun podcast about extraordinary and unique products.

Episode 8: Antimicrobial Copper Phone Cases

Say hello to Nick O'Brien, the quintessential entrepreneur who didn't let a global pandemic stop him from achieving his dreams. He co-founded a phone case company in quarantine and navigated the challenges of setting up a Shopify site and finding a manufacturing partner. And if that wasn't impressive enough, his company even got featured on Good Morning America! How did he do it? Get ready to take some notes from this podcast and turn your quarantine ideas into a real business.

Episode 9: African-Inspired Fashion

Meet Chioma and Uchenna, the entrepreneurial sisters behind the booming African-inspired fashion brand Cee Cee’s Closet NYC. From humble beginnings selling their wares at pop-up shops to being featured on NYC billboards, these ladies know how to make a splash in the business world. So how do they turn social media content into brand loyalty? It's all about authenticity and connecting with their audience on a personal level. The sisters share key lessons learned during their journey, like the importance of taking risks and staying true to your mission.

Episode 10: Vegan Cookie Dough

Erica Rankin is the mastermind behind Brodough, a vegan cookie dough company taking over Canada with its delicious and healthier-for-you treats. What started as a mere idea in Erica’s head blossomed into a full-fledged business, despite her lack of prior entrepreneurial experience. In this interview, we get to hear about Erica’s journey and learn some valuable tips for aspiring entrepreneurs. So if you’re looking for some culinary inspiration or just want to hear a delicious success story, be sure to give this podcast episode a listen.

Episode 11: Cold Water Smoking Pipes

Even if you're not in the market for a smoking apparatus, Rich's story is exciting and provides insight into what it takes to be a successful entrepreneur. He has over 20 years of experience in the retail industry, which gives him the knowledge and skills necessary to design, manufacture, and market his products. If you are looking for inspiration or want to learn more about what it takes to start your own business, check out this episode of Objects! with ShipHero.

Get Inspired to Start Your Business Journey

It's always exciting to see and hear about successful entrepreneurs constantly blazing their trails and setting new goals. They serve as examples of what is possible and inspire us to think outside the box and push ourselves to do better. So go ahead and check out some of their stories, and remember-- entrepreneur or not-- never stop dreaming big.

Be sure to subscribe and follow Objects! With ShipHero on both iTunes and Spotify for even more success stories in season two. Thanks for tuning in!

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Objects! with ShipHero is a detailed, 360' exploration of eCommerce and shipping one object at a time. John Wakim, your new host and ShipHero Head of Partnerships, will drill into the details to help you make sense of this world. If you have an object that you want to profile, please send a note to John Wakim at pitch@shiphero.com.

Click HERE to Listen on iTunes.                              Click HERE to Listen on Spotify.

About the host: John Wakim is the Head of Partnerships at ShipHero and Host of the Objects! With ShipHero podcast. As an early-stage entrepreneur with experience in SaaS, eCommerce, and retail, John has a diverse background. His innate ability to embrace challenges head-on makes him an early adopter at heart. No matter if he's working alone, with an in-house or remote team, with a vendor, or with an agency, John can wear many hats and roll up his sleeves and work relentlessly to meet goals.

How a Guy Who Never Went to College Built an eCommerce Empire

You can all relate to scrolling through Facebook when an article about some college kid who started a billion-dollar company pops up in your feed. You think, "that could be me if I just went to college." And so the never-ending cycle of regret begins. But what if I told you that you don't need an ivy league school degree to start your own business? Today we'll meet Allen Walton, founder of spyguy.com – a company he started from nothing! So how did he do it?Keep reading his recent interview with ShipHero’s podcast host, John Wakim, to find out.

James Bond is Cool

Meet Allen Walton, the founder of SpyGuy.com, a one-stop shop for all your covert surveillance needs. His story isn't your typical success narrative. He didn't have a burning passion for spy gear or attend a prestigious university before starting his company.Allen spent much of his time during young adulthood pondering his next move. He wasn’t interested in business or entrepreneurship. Though he had been exposed to a business, doing the grunt work was actually what excited him. But after wasting a few years at his parent’s house, indulging in the World of Warcraft video game, fate was ready to step in and get him to the next level.While spy gadgets may not have been his top career choice, he stumbled upon a job that turned out to be quite an education. Allen applied for a position at the local spy shop at his parent's insistence and was lucky enough to snag an on-the-spot interview with the store owner.“It just seemed like an interesting opportunity, and you know, security cameras and installations and stuff for businesses and whatnot. I was like, okay, this is kind of up my alley. I like Electronics; I'm tech-savvy. I think James Bond is cool, and maybe I'll meet some cool people working here.” Allen said.

Sell Solutions, Not Products.

When he first stumbled into sales, it was purely by chance. However, Allen quickly realized that he had a knack for it and became curious about the strategies and techniques behind successful selling. Thus began his passion for personal growth and self-improvement. Allen read books, studied the industry, and became more motivated to excel in his job and continue developing his skills. In fact, not having a natural passion for sales has been a blessing in disguise. Without any predetermined expectations or beliefs about what selling should be like, he can approach each situation with an open mind and continuously strive to improve himself. The bottom line is that passion can definitely drive success, but sometimes, having the drive and determination to improve can lead to impressive accomplishments.Working in retail taught him more about customer interactions and merchandising than any college class could. As he was moved from store to store, he observed how managers interacted with customers and laid out products appealingly. It may seem like a small detail, but how products are displayed can make a big difference in sales. He learned how to approach customers, effectively merchandise products, and create an overall welcoming shopping experience. Who knew a spy shop could be such a valuable learning experience? His time there taught him more than how to pick locks or install surveillance equipment - it taught him the importance of finding the right solution for each individual's unique situation.

It's Showtime

When Allen started selling spy gear, he was just another cog in the machine. But his natural talent and drive quickly propelled him to the rank of manager in only 18 months. That is until a popular TV reality show producer came along and saw potential in Allen's skills. Suddenly, he found himself as CEO of their online spy store - talk about a career change! While it may not have been the path he planned, Allen proved that hard work and determination could lead to success in unexpected ways. But, when the show he was working on ended, he found himself jobless and without a plan. Rather than letting it get him down, he saw it as an opportunity to pursue his passion. He started selling spy gear online and found success for four years before deciding to branch out on his own. Starting a business from scratch can be daunting, but thankfully he had a leg up on the competition. With pre-existing relationships with suppliers and an understanding of what products sell well, Allen hit the ground running with the online store. When his eCommerce business started, he knew they were doing well with their regular customers and word-of-mouth marketing, but they knew they needed to expand. So, he took a shot in the dark and hired a friend to handle SpyGuy’s Google ad campaigns. The results were insane - in just 18 months, he was able to drive to over a million dollars in sales. They fine-tuned our campaigns and targeted the perfect keywords, leading to a significant increase in revenue.

How to Become a Successful Entrepreneur

Being a successful entrepreneur in a niche market can be challenging. As much as Allen loves what he does, he knows it's essential to constantly strive for growth and change. He is currently focused on improving operations and hitting financial goals. He plans to hand off the reins to someone else and move on to his next venture. Stagnation is the enemy of progress, after all. But while he may be looking toward the future, Allen will never forget the experiences and lessons that got him where he is today. The age-old question of "follow your passion or make a pragmatic decision" boils down to an individual's priorities. While following your passion may not always yield the most remarkable financial security, it often brings satisfaction and a more profound sense of purpose. On the flip side, chasing the almighty dollar may seem like a safe bet, but it can lead to long-term dissatisfaction and even regret. And then there's the third option - taking the path of least resistance. But let's be honest - is there any real reward in opting for mediocrity and complacency? As they say, fortune favors the bold. So why not live life on your terms and follow what truly lights a fire in your soul? After all, you only have one shot at life - why not make every moment count?—Objects! with ShipHero is a detailed, 360' exploration of eCommerce and shipping one object at a time. John Wakim, your new host and ShipHero Head of Partnerships, will drill into the details to help you make sense of this world. If you have an object that you want to profile, please send a note to John Wakim at pitch@shiphero.com.Click HERE to Listen on iTunes.                              Click HERE to Listen on Spotify.About the host: John Wakim is the Head of Partnerships at ShipHero and Host of the Objects! With ShipHero podcast. As an early-stage entrepreneur with experience in SaaS, eCommerce, and retail, John has a diverse background. His innate ability to embrace challenges head-on makes him an early adopter at heart. No matter if he's working alone, with an in-house or remote team, with a vendor, or with an agency, John can wear many hats and roll up his sleeves and work relentlessly to meet goals

Between priority shipping demands and expected free returns offers, it’s no secret that clients today want more from the businesses they shop. In light of these requirements, the technology used in warehouses is more important than ever. Luckily, smart warehousing means that companies have options when it comes to staying competitive. From inventory counting drones to the use of AI in logistics, smart warehouse technologies offer a number of benefits, including improved productivity, greater accuracy, and fewer accidents on the job.

The Importance of Smart Warehousing

Among the many benefits of smart warehousing technologies is the opportunity to protect your workforce from harm. By optimizing warehouse processes and utilizing AI where possible, companies can keep mistakes to a minimum while cutting down on accidents and injuries. In fact, studies show that utilizing warehouse robots could reduce both lifting injuries and those resulting from physical fatigue.

Just as smart tech protects workers, it can also lower your operating costs. By leveraging automation, businesses can empower their human labor team to focus on more specialized and technical tasks while also cutting picking errors. With current rates standing between 1 and 3 percent, companies that don’t go smart risk draining profitability by a whopping 13 percent overall.

Get to Know These Smart Warehousing Technologies

The good news is that the technology used in warehouses can go a long way toward helping your business better serve its clients while benefiting your bottom line. By simplifying the picking and packing process, you can empower your team to do more in less time while cutting costs company wide. Here are some of the ways automation and AI in logistics and supply chains are helping companies like yours achieve their goals.

Warehouse Management Systems

Smart warehousing technologies can give you access to critical warehouse data at the click of a button. An end-to-end warehouse management system like the one available through ShipHero offers expedited reporting, real-time statistics, and superior planning abilities. As a bonus, companies can streamline and automate many warehouse functions, allowing them to distribute labor where it can do the most good. The end result is both improved warehouse flexibility and better relationships with employees, suppliers and clients.

Autonomous Vehicles in Logistics

Incorporating automation and AI in logistics can have a big benefit on your bottom line. Also known as AGVs, automatic guided vehicles allow for the efficient storage of heavy materials while helping companies automate the receiving process. According to a report by PwC, the digitization and automation of these processes have the potential to reduce logistics costs nearly 50 percent by 2030. As a bonus, utilizing more autonomous guided vehicles can help protect your workers from injuries on the job, including muscle strains, falls, slips and repetitive motion injuries.

Drones in Warehouse Management

Inventory counting drones are another way for businesses to use technology to their advantage. Not only can drones easily scan barcodes and RFID tags, but they can also alert warehouse workers about the number of units in stock at any given time. The end result is that inventory disparities are found faster and with less effort from staff. Additionally, drones can help boost safety and minimize the number of dangerous tasks performed by workers.

Work Smarter, Not Harder

There’s a reason that new technologies often make a big splash when they are first introduced. The amount of work they can do, and the amount of stress they can take off the labor force is astonishing.

Smart warehousing technologies can have a profound impact on your bottom line. By incorporating AI and warehouse drones into your current management, you can save on costs while doing your part to protect the people who have helped make your business the success it is today.

If you want to find out more about ShipHero’s smart Warehouse Management Software, we invite you to talk to one of our sales team members today.

Maggie M. Barnett, Esq., is the COO of ShipHero

‍ShipHero

‍About the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.

Follow Maggie on Twitter&LinkedIn.

When you’re running an eCommerce business, an important factor in online success is keeping your inventory organized. The best way to do this is by using a coding system. SKU in supply chain management and eCommerce is an essential tool that helps business owners know exactly what’s in stock in their inventory.

In a competitive market, eCommerce businesses have to keep up with the desires of their clients, which means it’s imperative to keep products relevant and accessible. This has to include having a clear picture of available inventory since clients want to be sure their desired product is available before making a purchase.

What is the Definition of SKU?

The acronym SKU stands for stock keeping unit. It’s a digital method used to track products by converting data about each product into a combination of letters and numbers that can be tracked by computer software.

This is an efficient identification system that uses information that’s unique to your business and helps to differentiate products from each other. It makes it easy for your team to locate and identify products being sold through your eCommerce shop.

SKU Structure

Each business can design its own structure of SKU identifiers. These identifiers refer to key pieces of information based on a product’s most important characteristics such as:

• Brand
• Style
• Color
• Type
• Size
• Price
• Warehouse location

The information provided by SKUs provides a lot of important information such as sales data and what products need to be reordered. As products are sold and SKUs are scanned, it’s easy to see which items are selling well and which variations of the same product are more popular.

How Using SKUs is Crucial to Managing eCommerce Inventory

Businesses retain historical data on the SKU level. This is crucial to inventory management because SKUs allow you to track the movement of inventory and to know exactly where a particular product is at any given time.

When an item is sold, it’s automatically removed from inventory. This makes it easy to determine what items need to be restocked. Data on SKUs also provides information on product popularity and sales trends.

How Do SKUs Compare to UPCs?

SKUs meaning isn’t the same as UPCs (universal product codes). Most people are familiar with UPCs, the barcodes that can be read by a scanner. While SKUs are scannable codes just like UPCs, there are some key differences between the two. These differences include:

• A UPC barcode identifies a product, and the same UPC identifies the same product carried by different businesses.
• A UPC contains only numbers.
• An SKU is an alphanumeric combination that’s unique to your business, so the same product sold at a different company would have a different SKU.

UPCs are always 12 numbers and always include barcodes. SKUs may be printed with or without a barcode and may vary in length.

SKU Productivity Definition

SKU productivity refers to evaluating the effectiveness of your SKUs by comparing the number of SKUs that are live on your site to the number that resulted in sales. Before doing this comparison, deduct items that have been returned.

Calculating SKU productivity gives you important information about products that don’t sell as well as expected. It makes it possible to get a better idea of what your customers are looking for so that you can satisfy demand and keep your product selection relevant. Low-performing SKUs can be swapped out for those that customers are more interested in.

Is Your SKU Level Too High or Too Low?

From the client’s perspective, one reason to limit SKUs in the supply chain is that too many SKUs mean too many options. While consumers don’t want to be limited to only a few choices, they also don’t want to be bombarded with so many options that it’s impossible to make a decision.

An SKU level that’s too high may lead to analysis paralysis on the part of consumers as they try to select a product from a large number of choices. Another reason to limit SKUs is the manpower required to maintain too many SKUs. In eCommerce, each item often requires uploading images, videos and product descriptions, which can be a time-consuming task, especially if a large number of SKUs don’t lead to sales.

Using the Right Number of SKUs in eCommerce

Your eCommerce team’s focus must be on products and SKUs that are most apt to lead to sales. A lower number of SKUs with higher quality images and more detailed descriptions is likely to lead to better results.

With information about SKU trends, decisions can be made about possibly purchasing fewer of the products that aren’t selling as well and more of those that are most in demand. Using SKUs helps eliminate guesswork. Whether your eCommerce business is large or small, SKUs in supply chain management are a vital tool for effectively managing your inventory.

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

‍About ShipHero

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

Follow us today on Twitter and LinkedIn.

Operations management in eCommerce refers to what goes on behind the scenes to make an eCommerce company successful. A big part of operations management is inventory management, which is an essential part of running a profitable business.

Effectively managing your inventory means having a good grasp on what items are in your inventory and how they should be stocked going forward. The 80-20 rule in inventory management can give insight into what products are in demand and which are delivering the most profitability.

What is the 80/20 Inventory Rule?

The Pareto Principle is a well-known concept that states that approximately 80 percent of results come from 20 percent of causes. There are many possible applications of this principle in the business world.

In eCommerce inventory management, the 80/20 rule shows that 20 percent of a company’s inventory generates 80 percent of sales. If you apply this rule to your current inventory, the next step is to determine what products are in the 20 percent that are generating most of the sales or profits. Shelves should be stocked with these products at all times.

Deciding What to Do with Lower Performing Inventory

Clearly, eCommerce businesses need to increase the on-hand stock of items that fall in the 20 percent range of what is considered high-performing inventory. At the same time, decisions have to be made about how to manage inventory that may not be performing as well.

For products that aren’t in the 20 percent that are most profitable, consider those that are in the middle of the range and think about what needs to change to make these items more appealing to clients. Those that have been identified as the least effective performers may need better marketing or may need to be replaced with different products.

What Are Some 80/20 Rule Examples?

There are many examples of ways the 80-20 ratio may be applicable in the business world and in everyday life. Consider a few of them:

• Staff – 20 percent of a company’s staff is generating 80 percent of the profits.
• Clients – 80 percent of sales come from 20 percent of clients.
• Wealth – 20 percent of the population possesses 80 percent of the wealth.
• Complaints – 20 percent of your clients are responsible for 80 percent of complaints against your company.
• Accomplishments – 80 percent of your accomplishments happen during 20 percent of your invested time.
• Web content – 80 percent of your web traffic is driven by 20 percent of your web content.
• Projects – 20 percent of your work projects produce 80 percent of your stress.
• Effort – 20 percent of effort leads to 80 percent of results.

The main thing to be learned from the 80/20 rule is to look for the smallest things that are producing the biggest results. Work toward eliminating the 80 percent that’s not producing the results you’re looking for, or look at what changes could make a difference.

Applying the 80/20 Rule to Operations Management Decisions

Decisions must be made in operations management that affect the future results of a company. Using the 80/20 rule can provide important insights into many aspects of your eCommerce business. It’s a powerful guideline that can help managers identify where success and profitability are coming from and what strategies may need to be revised.

Analyze data and trends to find out the top 20 percent of categories such as best-selling products and sales that are improving. Are the items that are the top sellers the same as the items that are delivering the most profitability? Consider what items in the bottom 20 percent could be discontinued without creating a lot of client dissatisfaction.

Better Inventory Planning with the 80/20 Rule

When the 80/20 rule is applied to inventory, the insights gained can help you to fine-tune your inventory planning strategies and better align your decisions with the desires of your clients. This knowledge helps you to have a better idea of what items should be kept in stock.

Keep in mind that the 80/20 rule is a guideline but it’s not a guarantee. New products and services shouldn’t be discarded too quickly. Products that haven’t made it into the top 20 percent may still have the potential to generate profits somewhere down the line with the proper marketing on social media or other sources.

Continuous Monitoring

Using the 80/20 rule provides reliable timely data that can be used to improve profitability and reduce costs. Eliminating products that are selling poorly can reduce inventory held in warehouses and the costs associated with them.

Applying the 80/20 rule to operations and inventory decisions in eCommerce isn’t something that should be applied only once. Continuously monitor what products are boosting profits and what changes might lead to better results. Work to identify the 20 percent of business resources that are producing 80 percent of your results and focus most of your efforts on optimizing that 20 percent.

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

Click HERE to Schedule a Meeting with Our Sales Team.

‍About ShipHero

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

Follow us today on Twitter and LinkedIn.

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

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

What is a Just-in-Time Inventory System?

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

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

Benefits of Just in Time Inventory Control

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

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

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

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

Drawbacks to Just in Time Inventory

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

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

Tracking and Organizing Inventory

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

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

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

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

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

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

Click HERE to Schedule a Meeting with Our Sales Team.

‍About ShipHero

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

Follow us today on Twitter and LinkedIn.

Understanding the contrasts between push and pull supply chain strategies is key to effective operations, especially in a world of fluctuating customer demands. As the scale of these demands grows, the question arises: which strategy is most effective for my operation?  ‍

This article discusses the importance of these strategies, their impact, and real-life examples.

What is a Push System?

A push system anticipates supply chain operation plans, inventory levels and activities in advance, based on forecasts and projections. It represents the initial point of the supply chain cycle, focusing on the warehousing and transportation of goods. A push system helps you anticipate future demand and manage inventory accordingly.

The push strategy focuses on predictions. It uses forecasts to plan inventory levels, procurement, and the distribution centers' activities. While this supply chain strategy still requires a level of predictability, it is robust against demand uncertainty and maximizes capacity utilization in the best warehouse fulfillment centers. This strategy is an innovation in the supply chain and production process that helps in solving the problem of demand uncertainty. However, its effectiveness depends on the accuracy of methods of how to forecast demand and the data used.

What is a Pull System?

A pull strategy, on the other hand, responds directly to customer demand, ensuring flexibility and efficiency. Both strategies aim to deliver the right products at the right times. Read more about push and pull strategies here.

‍In contrast, the pull strategy is customer-first. It bases operations on actual customer demand rather than predictions, offering flexibility in response to changes in immediate consumer demand and patterns. This strategy plays a key card in meeting immediate customer needs, hence enhancing customer experience. It provides solutions to the problem of sudden changes in demand.

Pull Supply Chain Strategies

Pull strategies are a form of stock management in just-in-time. They aim at minimizing stock and focusing on last-minute supply. Under this strategy, the product is pushed into the supply chain whenever customer demands justify it. Those companies that operate under this strategy are examples of companies that wait until they have received an order to build their own computers and sell the product. A pull strategy can help businesses minimize costs by carrying as much inventory that can't be sold. If a company doesn't increase production in definite quantities, it risks losing the supply and demand for fewer products.

Real-World Example: How Walmart’s Supply Chain uses a hybrid push-pull system

Walmart provides an excellent example of the use cases of both push and pull warehousing strategies at scale. Their utilization of a hybrid push-pull strategy with data insights for inventory management and demand response illustrates the importance of these strategies in different steps for enhancing customer satisfaction, reducing waste, and increasing revenue. This is a use case that shows how these strategies matter in real-world situations.

Impact of Push and Pull Strategies on the Bullwhip Effect and Consumer Demand

The bullwhip effect describes the magnified fluctuations in orders that often occur in most businesses as customer demand ripples through the supply chain. Effective use of push and pull strategies can help mitigate this effect, creating a more balanced and responsive supply chain. This is where the goal of these strategies comes into play.

Impact of Technology on Both Push vs Pull Systems in Supply Chain Strategy

Technology is an instrumental tool for both push-and-pull supply chain strategies. Under a push supply chain strategy, technologies like AI and machine learning can improve the accuracy of forecasting, helping businesses better anticipate customer demand and plan their inventory accordingly.

On the other hand, in a pull strategy, technologies like IoT can enhance real-time visibility into customer demand, triggering the production or delivery of goods exactly when needed. Also, technologies like blockchain can provide a secure and transparent way of tracking goods in both pull systems and strategies, thereby reducing risks and improving trust.

How do Inventory Management Strategies Change Between a Push and Pull System?

In terms of inventory management and manufacturing processes, a push strategy often relies on maintaining safety stocks to buffer against forecast inaccuracies and sudden demand changes. Techniques like the Economic Order Quantity (EOQ) model can be used to balance order size and frequency, minimizing overall inventory costs. Conversely, a pull production strategy typically employs methods like Just-in-Time (JIT) inventory, where goods are produced or ordered to meet actual demand. This approach minimizes stockholding costs but requires accurate demand sensing and quick response capabilities.

Risk Management in Supply Chain

Risk management in a supply chain varies between push strategies and pull strategies. A push strategy can guard against supply disruptions by maintaining a safe stock, but there is a risk of overproduction if demand forecasts are inaccurate. On the other hand, a pull production strategy, relying on actual demand, can minimize overproduction and stockholding costs. However, it requires a more robust system to prevent stockouts during sudden demand surges or supply interruptions.

Choosing Between Push and Pull Strategies

Choosing between a push and pull strategy for your own supply chain management strategy involves considering several factors, each with its unique impact on your supply chain efficiency and operation:

1. Business Model and Product Nature:The nature of your products and your business model plays a significant role. Are your products long-lasting, or do they have short lifecycles? Is your market stable, or does it fluctuate frequently?
2. Demand PredictabilityIf your business experiences predictable demand patterns, a push strategy could be effective. It allows for accurate forecasting, efficient inventory planning, production scheduling, and engaging with distributors. However, the risk here is overproduction if demand is overestimated or changes unexpectedly.
3. Market VolatilityOn the contrary, if your market is highly volatile, a pull strategy might be better. This strategy is flexible and customer-centric, enabling you to respond swiftly to demand changes. By focusing on customer demand sensing, real-time communication, just-in-time inventory, and strong supplier engagement, waste can be significantly reduced, and customer satisfaction can be improved.
4. Real-Time Data ManagementThe pull strategy's effectiveness largely depends on your ability to manage real-time data and ensure supplier flexibility. Thus, your infrastructure capability to handle real-time data should be a key consideration.

In summary, the choice between push and pull-based supply chain management strategies should be made after carefully analyzing your capacity for demand forecasting, understanding the volatility of your supply chain partners and market, considering your product lifecycle, and assessing your capability to manage real-time data. Such comprehensive analysis can guide you in implementing the most effective strategy for your supply chain.

Implementing a Push Strategy in Your Supply Chain

Implementing a push strategy in your supply chain inventory system can be an effective way to control your inventory and manage demand. Here are some steps to a push system to follow:

Accurate Demand Forecasting

Use historical data, market trends, and predictive analytics tools to generate accurate demand forecasts. Understand the patterns, peak times, and seasonality in your business.

Inventory Planning

Based on both production and demand forecasts, plan your inventory. This includes determining safety stock levels to buffer against unexpected changes in demand or supply.

Production Scheduling

Schedule production to match the forecasted demand. This ensures that sufficient goods and raw materials are produced in advance to meet customer needs.

Distributor/ Retailer Engagement

Engage with distributors or retailers to ensure that products are delivered at the retail store at the right time. This requires effective communication and coordination.

Monitoring and Adjusting

Regularly review the forecast accuracy and make necessary adjustments. This ensures your push strategy remains effective even as market conditions change.

A push strategy requires a robust infrastructure for data collection, storage space analysis, and communication with production processes. Also, it requires a certain level of predictability in future demand itself. If implemented effectively, a push strategy can help you maximize your supply chain's efficiency and utilization.

Implementing a Pull Strategy in Your Supply Chain

A full pull system and strategy is driven by actual customer demand, allowing for a more flexible and responsive supply chain. Here's how to make pull systems and implement it:

Customer Demand Sensing

Implement real-time data collection systems to sense and meet customer demand more accurately. This data integration ability could involve point-of-sale data, online traffic analytics, or customer feedback.

Real-time Communication

Set up real-time communication with suppliers and manufacturers. When a sale is made, the information is instantly relayed, triggering a replenishment order.

Just-in-Time Inventory

Adopt a Just-in-Time (JIT) inventory approach. Produce or order goods as needed based on actual or anticipated demand, reducing costs and minimizing inventory costs.

Supplier Engagement

Establish strong relationships with suppliers. The pull strategy requires suppliers to be flexible and responsive to changes in demand.

Continuous Monitoring and Adjusting

Keep track of key performance indicators such as lead times, order fulfillment rates, and stockout rates. Use this data to continuously optimize your pull strategy.

While a pull strategy requires a significant level of coordination and real-time data visibility, it can reduce waste, minimize stockouts, and improve customer satisfaction. Implementing a pull strategy is particularly effective in highly volatile markets or for products with short lifecycles.

Concluding Thoughts

In a rapidly changing world, it is essential for retailers to adapt their supply chain strategy strategies to stay ahead in their operations. With careful planning and capacity utilization, supply chains can effectively meet customer demands. The result is a more efficient and responsive supply chain that benefits economies at large. After all, in the world of supply chain management, retailers hold the cards and everything counts.

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‍About ShipHero

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

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