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September 9, 2025

How AI is Transforming Warehouse Management: Impact, Benefits, and Use Cases

Imagine running a warehouse where orders are picked quickly, inventory is accurate, and all operations run smoothly without any errors or delays. Thanks to Artificial Intelligence, this can now become a reality with ease.

AI is transforming warehouse management by enhancing efficiency, intelligence, and the ability to meet the rapid demands of today’s eCommerce-driven market.

ShipHero is pioneering this revolution with its AI-powered warehouse solutions, setting new industry benchmarks. This article explores ShipHero’s AI Picking feature, highlighting how it’s transforming warehouse management and enhancing operational efficiency.

Benefits of AI in Warehouse Management

The integration of AI technologies, including machine learning, robotics, and predictive analytics, is revolutionizing warehouse operations, driving significant improvements in efficiency, accuracy, and overall performance. These innovations are optimizing processes across various areas, from inventory management to order fulfillment. Below are the key benefits of AI in warehouse management.

  • Improves efficiency: By automating routine tasks, AI speeds up warehouse operations and streamlines workflows.
  • Reduces operational costs: With AI automating repetitive tasks, businesses can save on labor costs and minimize errors.
  • Enhances inventory management: AI ensures that inventory is always accurate, with real-time updates and better control over stock levels.
  • Predicts demand: AI accurately predicts demand, enabling businesses to manage inventory effectively and avoid stockouts or excess stock.

Key Components of AI-Driven Warehouse Systems

A combination of AI technologies is shaping smarter warehouse systems to help revolutionize warehouse management.

  • Inventory Management Systems – AI-powered inventory management systems ensure that stock levels are continuously updated and accurately tracked to improve operational efficiency and minimize errors in inventory counts.
  • Automated Guided Vehicles (AGVs) – Automated vehicles (AGVs) optimize routing by quickly transporting goods, speeding up processing times, and improving throughput.
  • Robotic Process Automation (RPA) – RPA automates repetitive tasks like picking, sorting, and shipping to allow 24/7 warehouse operations with minimal human intervention.
  • Predictive Analytics and Demand Forecasting – AI tools predict demand accurately, ensuring optimal inventory levels and reducing stockouts or overstocking.

ShipHero’s AI Picking: A Game Changer in Warehouse Efficiency

ShipHero has taken AI integration to the next level with its AI Picking feature, designed to significantly improve warehouse efficiency. This feature automates the picking process, reducing the reliance on manual labor and enhancing productivity in ways that were once thought impossible.

Let’s dive deeper into how ShipHero’s AI Picking works and the advantages it offers.

How AI Picking Works

AI Picking optimizes warehouse operations in two key ways:

  • AI Path Optimization: By calculating the most efficient routes, walking time is reduced by up to 30%, allowing pickers to spend more time fulfilling orders.
  • Smart Batching: Orders are intelligently grouped to maximize pick density, minimizing trips while speeding up processing times.

Benefits of AI Picking

The AI Picking feature delivers a wide range of benefits:

    Increased Productivity: With optimized paths and smart batching, pickers can fulfill more orders in less time, dramatically increasing throughput.Lower Labor Costs: AI Picking reduces the need for human labor, cutting operational costs.Improved Warehouse Efficiency: Path optimization and smart batching maximize space and resources, streamlining operations.

Broader Impacts of AI in Warehouse Management

The transformative power of AI extends far beyond just picking. AI is also revolutionizing other aspects of warehouse management, driving improvements in operational efficiency, inventory management, and safety.

Operational Efficiency

AI automates tasks, reducing errors and increasing speed. Automated sorting and real-time inventory tracking ensure accuracy, while real-time monitoring helps managers adapt and ensure timely deliveries.

Inventory Management

AI plays a vital role in maintaining accurate inventory levels. By leveraging predictive analytics, AI can forecast demand and optimize stock levels, helping warehouses avoid both stockouts and overstock situations. This leads to better inventory management and fewer disruptions in supply chains.

Safety and Compliance

AI-driven systems can monitor warehouse conditions to ensure safety and compliance with industry regulations. These systems can analyze warehouse data and predict potential hazards before they occur, proactively reducing risks and ensuring a safer working environment.

Applications of AI in Supply Chain and Logistics

AI technologies are playing a transformative role in the supply chain and logistics sectors by improving efficiency, reducing costs, and enhancing decision-making.

These intelligent systems effortlessly manage supply chain processes by using data to optimize operations, predict trends, and automate routine tasks. This ultimately reshapes everything, from how goods are moved to stored and delivered.

  • Inventory Optimization: AI analyzes sales data, trends, and external factors to optimize stock levels. This reduces stockouts, overstocking, and excess inventory, ensuring more accurate and cost-effective inventory management.
  • Demand Forecasting: AI helps predict future demand by analyzing historical data and market conditions. This allows businesses to plan inventory, production, and procurement more efficiently, reducing waste and ensuring product availability.
  • Route Planning and Optimization: AI also optimizes delivery routes by considering real-time factors, including traffic and weather conditions. This helps businesses reduce fuel costs, improve delivery times, and enhance overall logistics efficiency.
  • Warehouse Automation: AI-powered robots can automate picking, sorting, and packing in warehouses. This increases accuracy, reduces labor costs, and enhances order fulfillment speed, eventually improving overall warehouse efficiency.

The Future of AI in Warehouse Management

The future of warehouse management looks promising with greater automation and efficiency, but future warehouse digitization brings challenges, such as high upfront costs and the need for skilled personnel.

Emerging Trends and Innovations

AI-powered drones, autonomous robots, and IoT integration are smart warehouse technologies that are revolutionizing warehouse operations. Drones will deliver goods quickly, while robots automate sorting and transportation, thereby reducing the need for manual labor.

IoT and AI integration will enable real-time monitoring and optimization of operations. Smart technology in warehouses is leading to fully automated systems that are faster, scalable, and need minimal human input.

Challenges and Considerations

While AI offers immense benefits, businesses must also consider certain challenges. High initial investments in AI technology, data security concerns, and the need for skilled personnel are just a few of the hurdles that must be addressed.

However, with a strategic approach, companies can eliminate the challenges and embrace AI’s full potential to boost accuracy in picking and improve overall warehouse operations.

Key Takeaways

  • AI is transforming warehouse management by making operations faster, more accurate, and cost-effective.
  • ShipHero’s AI Picking system demonstrates how AI can help warehouses handle more orders, cut down on labor costs, and streamline their processes.
  • AI improves routing, aids decision-making, and ensures timely stock replenishment, helping businesses stay competitive in eCommerce.

Frequently Asked Questions

How can AI help in reducing warehouse errors?

AI minimizes error by automating tasks like inventory tracking, order picking, and sorting, ensuring greater accuracy and efficiency.

Can AI be used for predictive analytics in warehouse management?

Yes, AI-driven predictive analytics can predict demand, track inventory levels, and improve supply chain efficiency by forecasting needs with greater accuracy to help businesses stay ahead of trends and market fluctuations.

Is AI in warehouse management affordable for small businesses?

AI solutions are becoming more cost-effective thanks to cloud-based services and subscription pricing models. These options make AI technology more accessible to small businesses, allowing them to take advantage of its benefits without large upfront costs.

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September 9, 2025

Warehouse Receiving Process Checklist: Definition and Template

When pallets roll in and loading docks buzz, your warehouse’s receiving process becomes the gatekeeper of inventory accuracy. And if that gate isn’t well-guarded with structure, speed, and oversight, errors slip in.

A mislabeled item here, a damaged shipment there, and suddenly your warehouse faces stock discrepancies, late order fulfillment, or even lost customers.

A warehouse receiving process checklist streamlines receiving operations and ensures compliance across teams, regardless of who’s on shift.

What is a Warehouse Receiving Process Checklist?

A warehouse receiving process checklist ensures every shipment that enters your facility is properly documented, inspected, and integrated into your inventory system.

Unlike ad hoc or verbal processes, this structured document verifies product condition upon arrival, checks against purchase orders to confirm accuracy, and documents all inspections for future reference.

However, ShipHero’s digital platform already seamlessly integrates this checklist into your system, automating the tracking of goods from the moment they arrive.

Because it captures critical shipment details, a receiving checklist can double as a warehouse audit checklist sample, especially when preparing for performance reviews or inventory audits.

If you’re looking for ways to improve accuracy and accountability, learning how to audit your warehouse with a structured receiving checklist is a great place to start.

What to Include on a Warehouse Receiving Process Checklist

Receiving Checklist Sample 1          

                       

Receiving Checklist Sample 2

A well-structured warehouse receiving process checklist is crucial for ensuring accurate and efficient inventory management. Including the mentioned key components helps streamline the process, reduces errors, and enhances overall warehouse performance.

Here’s what you must include in your checklist to maintain control and accountability:

Purchase Order Number

This anchors the entire inspection. By referencing the purchase order (PO) number, warehouse teams can verify the received goods against the original order, ensuring the correct items and quantities are delivered.

Supplier Name & Address

Having the supplier’s full details improves accountability. If there’s a delivery issue, this info helps your team evaluate supplier performance and speed up resolution.

Date & Time of Delivery

Timestamping each delivery helps you review delivery schedules, track shipment delays, and identify potential gaps in receiving coverage.

Receiving Inspection

Here, staff will assess damage or discrepancies, confirm specifications (e.g., size, color), take photos if needed, and record all inspections in case of claims or audits. An effective inventory audit checklist incorporates these inspection protocols to ensure accuracy from the moment goods arrive.

Material Name

Listing the material name (e.g., product name, SKU, or description) prevents mix-ups during inventory allocation and ensures all items are accounted for. This also helps your Warehouse Management System (WMS) update stock records correctly.

Information Like “Delivered By” and “Received By”

Identifying who delivered and who received the shipment establishes accountability, helps resolve disputes over damaged or missing items, and ensures proper handoff records.

Documentation

Maintaining proper documentation, such as packing slips, invoices, and bills of lading, facilitates order reconciliation and supports formal audits and record keeping.

Why is a Warehouse Receiving Process Checklist Important?

A single receiving error often ripples through the entire warehouse. A structured receiving checklist breaks this cycle by establishing clear protocols that coordinate with supply chain operations and create accountability at every step. It drives big improvements in:

  • Faster receiving times: Teams know exactly what to do, in what order, and what to record.
  • Error reduction: Prevents items from being missed, mislabeled, or stored incorrectly.
  • Better supplier relationships: Helps track trends in late shipments, missing items, or recurring damage.
  • Improved stock accuracy: A clear receiving trail makes it easier to spot when something goes wrong.

This plays out in real operations. A mid-sized clothing retailer had ongoing issues with stock discrepancies during receipt. However, implementing a standardized receiving checklist significantly reduced the number of missing items and stock inaccuracies.

Employees also appreciated having clear instructions to follow, which reduced confusion and helped maintain a smoother workflow during peak delivery periods.

How to Create a Warehouse Receiving Process Checklist

Before drafting your checklist, take a closer look at your existing receiving workflow. Next, identify any inefficiencies and pinpoint areas that could benefit from more structure and consistency.

Decide on Information to Include in the Checklist

Choose the data points you’ll need based on your warehouse flow, system integration, and team size. Include only what’s necessary to document key handoff moments.

Choose a Proper Checklist Format

You can go with paper, but digital formats (via tablets or mobile apps) are easier to scale. Software-based checklists can instantly update records and integrate with your WMS.

Create the Checklist Using a Software Template

Use inventory management platforms or cloud-based tools to build your checklist. For example, ShipHero’s template system allows you to configure fields, set mandatory requirements, and establish workflow rules that guide staff through the receiving process. This makes sure every receiving action is consistent and auditable.

Train Employees

Train staff to make sure every team member follows standardized procedures. This minimizes human error, especially for new or seasonal workers.

Implement the Checklist

Roll out the checklist during a test period. Assign clear roles (e.g., receiver, inspector), gather feedback, and then launch warehouse-wide. Revisit and refine it quarterly to keep up with operational changes.

Warehouse Receiving Best Practices

Your warehouse receiving checklist works even better when paired with these best practices:

Building a Proper Receiving Schedule

Spacing out deliveries helps reduce bottlenecks and allows teams sufficient time to track inventory levels accurately. It also allows for more accurate inspections.

Optimizing the Warehouse Space

Keep receiving areas clutter-free and near the entrance. This shortens the time it takes to organize storage locations after goods are received.

Upgrading Warehouse Receiving Equipment

Invest in equipment such as barcode scanners, conveyors, or forklifts to speed up receiving operations, especially during peak seasons.

Separating Damaged Goods

Don’t let broken items enter inventory. Flag them, document the issue, and notify procurement so the issue can be escalated quickly.

Simplify Warehouse Receiving with ShipHero’s Automated Solutions

By leveraging real-time inventory tracking and barcode scanning, you can eliminate the need for manual checklists, ensuring that every received item is accurately logged. ShipHero automates the entire receiving workflow, reducing human errors and speeding up the process.

Customizable receiving workflows allow you to tailor the system to your warehouse’s specific needs, eliminating the need for paper-based checklists. Improve efficiency, accuracy, and consistency, all with ShipHero’s advanced automation tools.

Key Takeaways

  • A warehouse receiving checklist provides structured workflows that ensure accurate, efficient processing of incoming shipments
  • For operational transparency, checklists should include critical information, such as PO number, supplier information, inspection results, and timestamps.
  • For best results, use tools like ShipHero to digitize checklists, train your team properly, and regularly review performance.

Frequently Asked Questions

How Often Should You Update the Warehouse Receiving Procedures?

At least annually, or anytime your business introduces a new product line, supplier, or technology upgrades.

Is It Beneficial to Cross-Train Staff on Receiving Processes?

Absolutely. Cross-training builds flexibility, enabling teams to cover for absences and maintain efficiency even during peak periods or periods of high turnover.

What Should You Do If the Item Received Is Damaged?

  1. Document the damage with photos and notes.
  2. Isolate the damaged item to prevent it from entering inventory.
  3. Notify the supplier immediately with details and evidence.
  4. Update your stock count to reflect the issue.
  5. Follow supplier protocols for returns or replacements.

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September 9, 2025

Warehouse Daily Checklist: Guide and Free Template

One missed check can cost you thousands of dollars. You may have a damaged pallet, a missing fire extinguisher, or a skipped safety step that can put your team at risk.

Warehouse daily checklists serve as a pilot’s pre-flight checklist. Before takeoff, every switch, lever, and system is checked. Why? Because skipping one step can lead to serious problems. The same goes for your warehouse.

Without a solid checklist, you risk delays, missed shipments, or worse, accidents and safety violations. A checklist ensures your team follows the right procedures and nothing falls through the cracks.

Here’s everything you need to include in a warehouse daily checklist, its definition, and templates you could use to get started fast.

What is a Warehouse Daily Checklist?

A warehouse daily checklist is a structured form that helps warehouse staff systematically inspect, verify, and record essential tasks on a daily basis. It covers all the daily to-dos that keep your warehouse operations running smoothly and safely, such as inventory tracking and forklift inspections.

The warehousing and storage industry reported an injury rate of 4.8 per 100 full-time workers, nearly double the national average of 2.7. Following a daily warehouse checklist ensures the right procedures and safety protocols are followed and nothing important gets missed.

Creating an Effective Warehouse Daily Checklist Template

A great warehouse daily checklist supports the safety of your warehouse, reduces errors, and keeps your workflow on point. Here’s how to make a checklist that your warehouse workers will actually use and benefit from.

Components of a Warehouse Daily Checklist

Every component of your checklist ensures your facility, staff, and inventory remain safe, compliant, and productive.

Common components include:

  1. Inventory Checks: Your team should do an inventory audit. Monitor current stock levels, confirm the accuracy of quantities, check the condition of stored items, and inspect the labeling and bin organization to prevent errors, shortages, or misplaced goods. Real-time inventory visibility and predictive restocking tools, such as ShipHero, make this process seamless. Make sure that the receiving process is airtight as well.
  2. Equipment Inspections: Your checklist should ensure that all tools, forklifts, devices, and fire extinguishers are operating safely and efficiently. Inspect the equipment for wear and damage, document the condition, and update the maintenance schedule when necessary.
  3. Safety Protocols: Safety and security checks minimize accidents. Inspect the visibility of signage and emergency exits, and oversee the handling of known hazards.
  4. Cleanliness & Housekeeping: A clean and organized warehouse is a safer and more efficient one. Monitor the cleaning of floors, the clearing of walkways, and the organization of storage zones to support optimal workflow and reduce risk.
  5. End-of-Day Tasks: To properly close operations, include tasks that secure the workplace and prepare for the next shift. Record the completion of final duties, document the status of unresolved issues, confirm system backup, and update the daily reports for supervisor review.

Instructions should be clear and structured to help your team move through inspections efficiently and consistently.

Step-by-Step Guide

Your daily warehouse checklist doesn’t have to be very detailed and complicated. It needs to be thorough, practical, and easy to follow.

Here’s how to build a great one:

  1. Identify Daily Tasks: List out everything that needs to happen each day. Walk through the warehouse and discuss routine procedures with your supervisors and warehouse staff to capture all relevant information.
  2. Assign Responsibilities: For each task, decide who’s in charge. Is it a shift supervisor, floor staff, or a designated inspector? Make responsibilities clear so no task is missed or assumed to be “someone else’s job.”
  3. Format It Clearly: Use a structured, easy-to-use layout with checkboxes, concise instructions, and well-defined sections, such as safety and cleanliness. Keep it readable because you want quick glances, not long paragraphs.
  4. Incorporate Timing & Schedules: Some tasks should be completed in the morning, others throughout the shift, and some before closing. Schedule them accordingly, and use timestamps if needed (e.g., “Check emergency exits before 10 AM”).
  5. Include a Sign-Off or Signature Field: Have the assigned employee or team member document their name and time completed. This builds accountability and provides a record for inspections, audits, or compliance tracking.
  6. Involve Your Team in the Design: Ask your warehouse workers what works and what doesn’t. They know the real flow better than anyone. Involving them boosts buy-in, reduces resistance, and ensures the checklist actually helps them.

When your checklist comprehensively details the tasks in a concise manner, it becomes a tool that delivers massive impact. This ensures your warehouse operations run smoothly, safely, and efficiently.

Free Warehouse Daily Checklist Template

Ready to skip the setup and just get started? Feel free to copy our Warehouse Daily Checklist Template to your Google Docs or Microsoft Word document. It’s accessible, user-friendly, and 100% customizable to your needs.

Section Task Completed Person in Charge Time Signature
Inventory Checks Verify current stock levels
Check the condition of stored items
Confirm the accuracy of item labels
Inspect the bin and shelf organization
Equipment Inspections Inspect forklifts (damage, fluid levels, battery charge)
Ensure tools are returned to proper storage
Test barcode scanners and mobile devices
Safety Protocols Check fire extinguishers (placement, charge, expiration date)
Ensure emergency exits are accessible and clearly marked
Confirm that safety signage is visible and undamaged
Inspect for any spills or hazards in work zones
Cleanliness & Housekeeping Sweep and clean floors
Clear walkways and aisles
Organize storage zones
Dispose of waste and recycling properly
End-of-Day Tasks Secure all warehouse entrances and exits
Backup system data
Document unresolved issues
Submit daily report to supervisor
Remarks:


Employee Name: Date:
Supervisor Signature:

Simply plug in your specific details, and you’re set. It’s built to save time, support compliance, and help you manage your daily workflow like a pro.

How ShipHero’s Warehouse Management System Improves Warehouse Efficiency

ShipHero’s Warehouse Management System (WMS) boosts warehouse efficiency by automating key processes like inventory tracking, order picking, and shipping. By streamlining these workflows, it reduces manual labor, minimizing errors and delays.

The system’s real-time data updates allow staff to make quick, informed decisions, improving overall productivity. Customizable features enable businesses to adapt ShipHero to their specific operational needs, further enhancing efficiency. With ShipHero, warehouses can achieve faster turnaround times, reduced costs, and improved accuracy.

Key Takeaways

  • A daily warehouse checklist boosts safety, reduces errors, and supports smooth warehouse operations.
  • Include sections for inventory, equipment, safety, cleaning, and end-of-day procedures.
  • Download our free, customizable template to save time and increase productivity from day one.

Frequently Asked Questions

How Often Should a Warehouse Daily Checklist Be Reviewed?

Review a warehouse daily checklist, weekly, or monthly to maintain accuracy and relevance. Frequent reviews help align the checklist with workflow changes, new safety protocols, or operational updates.

Can You Customize a Warehouse Daily Checklist Template?

Yes, you can customize a warehouse daily checklist template. Most templates are designed to be modified based on team size, warehouse layout, and operational goals. Customization improves relevance and usability across different warehouse environments.

Is Training Required to Use a Warehouse Daily Checklist?

Yes, basic instruction and simple training on how to use the checklist ensure employees understand how to follow the checklist, report issues, and meet safety or performance standards. Training improves consistency and accountability across shifts.

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February 15, 2021

The Fulfillment Innovation Wheel: Professional Services

ShipHero recently launched The Fulfillment Innovation Wheel to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.

The Fulfillment Innovation Wheel listed a set of twelve (12) capabilities that fulfillment providers and logistics companies should implement to continually delight their customers and push themselves towards greater success and innovation.

The twelve capabilities are:

  1. 2-Day Delivery
  2. Same Day Shipping
  3. At the Box Personalization
  4. Designed for Returns
  5. Sustainable Fulfillment
  6. Resilient Shipping
  7. Distributed Fulfillment
  8. Data Now
  9. Automation
  10. Scale Up and Out
  11. Integration Stack
  12. Professional Services

In this article, we will be diving into Capability #12: Professional services.

‍And be sure to stay tuned for future articles as we deep-dive into each capability.

Capability #12: Professional Services

If you want to grow your business, your Warehouse Management Software (WMS) needs to keep up by collecting and processing more data, offering users more capabilities and automation, and providing more customizable reports and integrations. As WMS grow more and more powerful with each iteration, naturally so does its complexity. That’s why business owners who want to get the most out of their WMS are turning to Professional Services offered by their fulfillment provider.

Customization

App developers try to make WMS interfaces as easy to use as possible, and often take a one-size-fits-all approach to developing their solution. When that doesn’t cut it for your business, Professional Services are the perfect way to custom-fit the solution to your exact specifications.

ShipHero customers can select a wide range of customization services that include (but are not limited to):

  • Custom reports
  • Custom invoices and labeling
  • Custom API integrations
  • And more!

Error Correction

Everyone makes mistakes! Professional Services are the easy way to get you right back on track with your WMS.

For error correction, ShipHero offers:

  • Manual/Bulk Data correction
  • Re-running Automation Rules
  • Integration testing/debugging
  • And more!

Consulting

Sometimes you just need an expert opinion. Warehouse process and development experts stand at the ready to help you figure out the tough problems.

ShipHero’s experts are available to provide:

  • Warehouse Process Consulting
  • API Consulting
  • Onboarding Consulting
  • And more!

So, does your fulfillment provider give you the attention and service that you need? Whether you need a quick fix over the phone or a more hands-on approach with our onsite visits, ShipHero helps its customers any way they can through their extensive list of Professional Service. Not only that, ShipHero maintains a community of customers that all chip in to help each other.

It’s this white-glove approach to service that brings an average of 100 new signups for our fulfillment service per day, and we attribute this success on the Fulfillment Innovation Wheel to Capability #12: Professional Services.

‍Stay tuned next as we cover Capability #11: Integration Stack! Integrate-ful for your business. ShipHero.

Learn more about ShipHero's industry-leading warehouse management software.

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February 11, 2021

President Biden’s Policies and Their Impact on Logistics

The incumbent President of the United States made quick work in demonstrating to our citizens and the rest of the world exactly what our country’s priorities will be for the next four years and beyond. Within his first week of taking office, President Joe Biden enacted a long list of executive orders that sought solutions to the pressing issues stemming from the COVID-19 pandemic, immigration, and climate change.

Sustainability has been of great importance to the Biden administration since his Vice Presidency, and continued to be a main aspect of his campaign during the 2020 election, so it came as no surprise when President Joe Biden signed an executive order to initiate his plan to combat climate change through a Clean Energy Revolution and Environmental Justice.

No matter who you voted for, it’s time to get acquainted with his stance on climate change, what measures the government will be taking to lower our carbon footprint, and how the  logistics industry will be impacted. In essence, it comes down to carbon emissions and the railroad.

Carbon Emissions

Under Biden’s leadership, the United States rejoined the Paris Agreement on climate change, which calls us to determine a reduction target for emissions and direct our federal agencies to execute on that promise.

For example, US agencies have been directed to purchase American-made, zero-emission vehicles, and suspend new oil and natural gas leases on public lands in hopes to conserve at least 30% of federal lands and waters over the next ten years.

The Biden Plan for a Clean Energy Revolution and Environmental Justice also promises to make major public investments in automobile infrastructure, including 500,000 electric vehicle charging stations, while accelerating R&D on battery technology and battery production. This is sure to increase production and widespread use of EV vehicles, buses, and trucks for transportation.

Impact to Logistics

Sustainability

‍As the current pandemic situation unfolds, sustainability in the supply chain has gone by the wayside as urgency and necessity push for speed and reliability in shipping. But even still, some shoppers opt to use the Amazon Day feature to try and offset their purchases with their rationale being, if they have to come here, at least let them bring more than one thing. Post-COVID however, sustainability will be sure to resume as a large priority for consumers and retailers once more.

For fulfillment providers, retailers will push for low-carbon and zero-carbon (if not negative) emissions throughout the supply chain. There will be a push for clean transportation options, namely electric vehicles (EV) including electric trucks for long-distance shipping, whereas air freight has the worst carbon emissions.

Although it remains unclear what Environmental Justice specifically entails, we don’t find it out of the realm of possibilities that a national carbon tax could be introduced similar to Canada, Britain or some US states, or rather an incentivized stimulus for low-emitting companies. If enacted, a carbon tax could make logistics companies like Amazon rethink their air-heavy fulfillment strategy and make way for 3PLs that are built on sustainable practices.

‍But where, WHERE, are these sustainable transportation methods coming from?, you may have shouted into your computer screen. Well, toot toot, the answer to that falls on…

The Railroad

Biden’s plan aims to spark “The Second Great Railroad Revolution”, a push to modernize US rail infrastructure, which will ensure that we have the cleanest, safest, and fastest rail system in the world — for both passengers and freight.

A US Rail Revolution will not only reduce pollution, by working with Amtrak and private freight rail companies to further electrify the rail system, but also provide workers with “good, union” jobs and stimulate investment in communities better linked to major metropolitan areas. In order to streamline the loan process and make capital more available for the railway industry, Biden has tapped existing federal grant and loan programs at the US Department of Transportation.

Impact to Logistics

Multi-modal

‍Currently, fulfillment is dominated by ground travel, with long-distance trucking and last-mile delivery vans. Although rail freight can carry 400 times what a single truckload can with much fewer emissions, the current process for fulfillment by rail is too complex and downright costly. However, Biden’s plan could be the answer for this.

By modernizing rail freight and designing it for today’s eCommerce world, rail freight could once again become a viable option, and 3PL providers that account for this shift could disrupt the logistics industry entirely by cornering the multi-modal transportation space.

Multi-modal transport (also known as combined transport) is the transportation of goods under a single contract, but performed with at least two different modes of transport, often performed by contracted sub-carriers. The carrier responsible for the entire carriage is referred to as a multimodal transport operator, or MTO.

So, any 3PL that can become the leading MTO could position themselves to become the 4th major player in logistics and fulfillment, with UPS and Fedex at capacity, and Amazon weighed down by its traditional infrastructure.

Conclusion

We’re no fulfill-osophers, but we do predict that a smart logistics provider like ShipHero, one built to scale through agility, will be perfectly positioned to quickly claim market share and delight their customers with sustainable shipping and multi-modal options.

‍Through use of already existing clean energy and green technologies, the logistics industry can lead the way towards sustainable practices in eCommerce supply chains. Moreover, the pandemic-caused boom of eCommerce has given rise to a plethora of opportunities and growth in the fulfillment space; and where money goes, progress follows.

Investments to improve fulfillment practices driven by big data and blockchain will be the spark necessary for companies to derive ROI from their sustainable practices, and effectively contribute to Green Joe’s climate plan.

Learn more about ShipHero's industry-leading warehouse management software.

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February 10, 2021

The Fulfillment Innovation Wheel: Integration Stack

ShipHero recently launched The Fulfillment Innovation Wheel to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.

The Fulfillment Innovation Wheel listed a set of twelve (12) capabilities that fulfillment providers and logistics companies should implement to continually delight their customers and push themselves towards greater success and innovation.

The twelve capabilities are:

  1. 2-Day Delivery
  2. Same Day Shipping
  3. At the Box Personalization
  4. Designed for Returns
  5. Sustainable Fulfillment
  6. Resilient Shipping
  7. Distributed Fulfillment
  8. Data Now
  9. Automation
  10. Scale Up and Out
  11. Integration Stack
  12. Professional Services

In this article, we will be diving into Capability #11: Integration Stack.

‍And be sure to stay tuned for future articles as we deep-dive into each capability.

Capability #11: Integration Stack

These days, all you need to start an online business is a laptop and a dream. With just a few clicks, more and more people are chasing their entrepreneurial passions by leveraging eCommerce platforms like Shopify, Wix and Squarespace, which provide all the software solutions that they need to get their business up and running.

Online businesses today are piecemealed together by a whole assortment of cloud applications, created by different app developers with different methodologies, to accomplish a specific task, e.g, returns, transactional emails, shipping labels, etc. However, without a way to tie them all together, the benefits from the expertise are lost when the entrepreneur is forced to spend enormous effort in navigating from one app to another, figuring out how to transfer information between all of their tools.

So, the eCommerce platforms like Shopify are not inherently powerful in and of themselves; rather, the real power of these platforms lies in their ability to integrate seamlessly with multiple solutions, tying in expertise from a whole plethora of applications that are otherwise customized to do one, specific thing.

Similarly, fulfillment providers need to be able to integrate seamlessly into your business, not to mention offer automation tools to speed up your workflows, leaving you time to focus on what really matters.

The Fulfillment Integration Stack

Retailers have come to expect that their fulfillment provider integrates into the platforms and applications that they are already using, allowing them to transfer data cross-applications and simplify their business processes. However, this is often no easy task.

Only 3PLs and fulfillment providers that are born from agile methodologies and built to scale can offer the wide-ranging integration methods that retailers demand. Without them, they will only slow down your business and as the old adage goes: time is money.

‍ShipHero’s integration marketplace offers a suite of valuable integrations that make it easy to connect our customers to a long list of shipping carriers and ecommerce platforms. As seen with our recent integrations with Alloy and Returnly, ShipHero is constantly expanding our capabilities and partnering with companies so that our customers have the very best options when it comes to easy, one-click integrations.

Along with our direct integrations, we also have over 20 partners that provide integrations and systems expertise, as well as an open API so that users can code their own integrations and webhooks if it’s not already on our list.

‍Our customers love the integration that ShipHero provides. We attribute this success on the Fulfillment Innovation Wheel to Capability #11: Integration Stack.

‍Stay tuned next as we cover Capability #12: Professional Services! At your service, professionally. ShipHero.

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February 4, 2021

A NSFW eCommerce Case Study, ft. The Horny Stoner (Rated R)

*THIS ARTICLE IS NOT INTENDED FOR ANYONE UNDER THE AGE OF 21… OR IF YOU ARE EASILY OFFENDED...*

Give the young and prude a moment to leave… great. *cue retro adult film music -- bom chicka wow wow*On this featured NSFW customer story by ShipHero AfterDark, we deep-dive into our customer (not like that): The Horny Stoner, a brand that caters to empowered babes that aren’t afraid to express their individuality, or as Founder and CEO Ana Dee affectionately refers to them… Bud Sluts, discreetly providing novelty items from peace pipes to dildos, from grinders to butt plugs, and just about everything that goes in between. Ana Dee takes immense pride in authentically sharing her entrepreneurial journey, proving to up-and-comers that anything is possible. Working as a dancer at a local strip club, Ana Dee saved up $2,000 (“no regrets!”) to start the foundation for her brand. Her businesses took off rapidly, and she went from using a spare room in her house to owning and operating a North Carolina warehouse, powered by ShipHero WMS.

"My team went with Shiphero because there isn’t any other software on the market that is the all-in-one package that easily integrates with Shopify. Not to mention the speed it has to cater to small businesses like our own, with the potential to grow with us when 10,000 SKUs grows to 100,000."Ana Dee- Founder and CEO of Horny Stoner

Since the Horny Stoner has long been satisfied with ShipHero’s all-in-one package (or so she tells us), we just had to tie her down for an interview and study her case. Without a taxi cab in sight, Ana Dee confessed all the juicy details about how she started her successful business and why she chose ShipHero to fulfill her customer’s desires, and packages. ;)~ShipHero: Ana Dee, tell us about your business.Ana Dee: “I refer to my empire as ‘The Mothership.’ Alien Outfitters is my first brand, which led to the birth of my two new sister stores, The Horny Stoner and Blades For Babes. We sell a wide range of clothing/accessories, adult toys and tobacco products, and fashionable knives within our online web stores...After shipping orders out of my upstairs rec room for three years, I ended up renting container units at a local fulfillment center. And within six months, we were busting at the seams and slowing down the fulfillment process with the number of orders we had. I knew in my gut it was time to handle the fulfillment ourselves. I am very hands-on with my customers’ entire unboxing experience*. I knew I had to get my own warehouse to truly keep our customer experience sustainable by having more control over our fulfillment process. Not only that, but I wanted to provide employment opportunities that diverse individuals don’t have.”*Talking about her customized unboxing experience, every Horny Stoner order is jam-packed with pink stardust and shipped out of their North Carolina warehouse. Early on, Ana successfully identified her target market in the Bud Sluts, and the company was converting sales at a dizzying pace. However, she found that having to integrate multiple platforms just to ship a single order was making her fulfillment process much more complicated than necessary.SH: What was your fulfillment process like before ShipHero?Ana Dee: “Pre-Shiphero was honestly a shipping sh*t storm... Groovepacker was the system we used to ensure the correct items were picked. The process lagged, the backend was a mess, but it was the only option I could afford at the time. As far as label printing, Shipstation provided a lot for the price point. Still, as we grew, it lacked the automation our stores required, such as combining orders, removing drop-ship items, and packing slip customization. I grew more and more frustrated when the bulk of my time was manually doing things that the platforms couldn’t execute.Our problems seemed like simple fixes, yet you would put in ticket request after ticket request to software companies who didn’t care about changing their systems. Most of the time, we wouldn’t get a response for weeks at a time, which just caused delay after delay. As the tiny problems stacked, I couldn’t grow my business because I simply didn’t have the time.”SH: Naughty, naughty platforms. Did you… spank them?Ana Dee: “If you call raising hell via email with the developers, then yes.”

SH: So when it comes to a fulfillment provider, what’s, like, your type?*twirls hair in fingers*Ana Dee: “When searching for a fulfillment partner, it’s imperative to hop on a call and really see what the process looks like. As we got quotes from other companies, we noticed the lack of excitement they had or the lack of resources we needed. We saw that Shiphero cost a pretty penny for a small business, but let’s face it, you get what you pay for. Shiphero had in-depth videos that trained us before we even had the hardware in our hands.”SH: Speaking of hardware in your hands, what was the integration process like with ShipHero? Was it… good? You enjoyed it too, right?Ana Dee: Well with consent from both parties, our first time integrating with ShipHero was… a blast. [retelling the story] So it’s the peak of a pandemic, post-Black Friday, and we find the perfect warehouse that hasn't hit the market yet. Miraculously, we purchased the building within 2 weeks and moved in within 48 hours. Now it was crunch time [to fulfill holiday sales].Shiphero had a simple online document that provided us with EXACTLY what computers, scanners, and other accessories needed to make this happen. Being an entrepreneur, you are built to solve problems, so we made it happen with the natural ability to move fast. Within seven days, we had the process down and hired three more packers who had the pull and packing process down the same day they were hired. I still look back and can’t believe this was possible, but the reality is that Shiphero made it possible. Any other software would have hindered our success and ability to hit our numbers before the year was over.”

"Within seven days, we had the process down and hired three more packers who had the pull and packing process down the same day they were hired. I still look back and can’t believe this was possible, but the reality is that Shiphero made it possible."

SH: Well, pulling packages is sort of our specialty. What would you say the biggest advantage and disadvantage of ShipHero has been for your business?Ana Dee: “The advantage with Shiphero, hands down, is the accuracy for pulling and packing orders. There is a zero chance you will pull the wrong product in an order. Shipping the correct products removes human error, saves money, and creates happy returning customers. The speed of the barcode readers allows us to move efficiently, getting an order fulfilled within 60 seconds.Thus far, the only disadvantage is that I haven’t dove into the system’s other capabilities, such as creating kits for our products and getting our returns portal set up.”SH: Wait til you see our back end capabilities. Anyway, how has your business been impacted by the COVID-19 pandemic and lockdowns?Ana Dee: “It was pretty clear that everyone was staying home, had a lot of time on their hands, and felt stressed about the pandemic. I didn’t understand the power our products had until our customers needed them most.It’s a no-brainer that adults were partaking in 18+ activities as time went by. We all certainly needed to take a load off. The Horny Stoner saw a 400% increase in sales. On the contrary, as sales went up, products were selling out.There was no way I could keep up, because even our suppliers couldn’t. We were getting calls and emails about shipping delays and lack of resources left and right. 90% of international suppliers couldn’t even give us a date when they would be up and running again, let alone 50% of them closing down for good.But, when things go south, I try to find the silver lining. In this case, I wanted to provide jobs for people who lost them. So I found smaller brands who had stock. I bargained with sellers I found on Etsy to purchase their whole supply, which helped them eliminate stale inventory and minimize their financial hardship during Covid. The other side, too of course, was ensuring our employees were safe to be in a space together.SH: Amazing, and what’s next for you and the Horny Stoner?Ana Dee: Purchasing a warehouse is not something everyone in their lifetime gets to do, and I want to make this experience memorable for myself, my employees, and our followers. They have been on this journey with me since day one and now they get to indulge in our next chapter here.So now that I have this big hunk of space, it’s no surprise that it will be full of glitter and neon lights in no time.”

Follow Ana Dee and the Horny Stoner’s journey at their website and Instagram. https://hornystoner.com/https://www.instagram.com/thehornystoner/Want to be featured in our case study? If you would like to share with us stories about your ecommerce experiences, whether it’s how you started your business, what opinions you have on the stories we share, or if you just feel like venting… we’re here for you. Shoot us an email and you could be featured on an upcoming Case Study, our critically-acclaimed weekly news segment The Packet, or if you’re lucky, you could be invited to join one of our many Podcast episodes!

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February 3, 2021

Calling All Gig Heroes

By all accounts, gig workers are redefining the American Dream. To date, over one third of Americans take advantage of the Gig Economy to enjoy the freedom of setting their own work schedule and chasing projects that resonate with their passions.

There is only growth for gig workers forecasted on the horizon.

While US regulations are finally catching up to the speed at which the Gig Economy continues to grow, more and more major companies are adding freelancers and gig workers to their workforce at varying positions and ranks, up to about two thirds of major companies currently. And 80% of companies are planning to make the switch to independent work in the coming year.

Specifically, several sectors like the warehouse and ecommerce fulfillment industry are ramping up their use of gig workers due to the flexibility and expertise that they provide. Not only that, gig workers in these industries are constantly being offered full-time work if they need more stability. There’s just too much work in ecommerce fulfillment right now.

Gig workers have more control of their work life now more than ever.

Greater acceptance of remote work has proven to be a win-win situation for gig workers. That’s because their work can now transcend the boundaries of where they can physically show up to work, and at the same time, the demand for work that does require in-person attendance is only skyrocketing.

With the advent of staffing platforms like Indeed and AngelList, it’s never been easier for businesses to find and team up with quality and trusted independent workers. This has led to many predictions that virtual organizations and solely-online retailers will continue to rise through the consistent employment of gig workers.

Gig workers are always adept at finding that next big project.

76% of gig workers claim satisfaction in their work life, despite the pressure to continually find projects. But perhaps it is this pressure, rising to the challenge, designing a personal work style and life, that entices gig workers to this style of work in the first place.

Today, 15% of independent workers have side-gigs, and with services like Indeed and ecommerce platforms like Shopify that allow people to market and sell their services and goods like never before, this proportion is sure to grow.

Are you a Gig Hero?

We at ShipHero are seeking gig workers to become Gig Heroes at our warehouses as Pick-and-Packers and fulfillment specialists, because we value the expertise and flexibility that they bring to a work environment. We are currently hiring experienced warehouse team members to join our team to help us pick, pack & ship orders in our 150,000 sqft warehouse in our network in Pennsylvania. You'll be part of a team that helps ship over $5 billion of e-commerce orders a year, and there’s always options for full-time employment.

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February 2, 2021

We're Just Human! Podcast: Bikes, Tesla & Ops

Welcome to Episode 10 of We're Just Human! Today's guest is Andrew Marshall, the head of operations and finance at Pacific Northwest Components, a business that’s focused on making great quality bicycle components that don’t cost a fortune. Prior to @PNWComponents, Andrew worked in logistics operations for some of the largest automobile supply chains in the world, and then experienced Tesla, with some notable differences.

Oh and that article Andrew references when talking about how you can take your standard mountain bike and do some upgrades: https://www.pnwcomponents.com/blogs/news/how-to-upgrade-an-old-bike

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February 1, 2021

The Fulfillment Innovation Wheel: Scale Up and Out

ShipHero recently launched The Fulfillment Innovation Wheel to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.

The Fulfillment Innovation Wheel listed a set of twelve (12) capabilities that fulfillment providers and logistics companies should implement to continually delight their customers and push themselves towards greater success and innovation.

The twelve capabilities are:

  1. 2-Day Delivery
  2. Same Day Shipping
  3. At the Box Personalization
  4. Designed for Returns
  5. Sustainable Fulfillment
  6. Resilient Shipping
  7. Distributed Fulfillment
  8. Data Now
  9. Automation
  10. Scale Up and Out
  11. Integration Stack
  12. Professional Services

In this article, we will be diving into the Capability #10: Scale Up and Out.  

‍And be sure to stay tuned for future articles as we deep-dive into each capability.

Capability #10: Scale Up and Out

Your business constantly strives for growth. Whether it’s new customers, new markets, new products, your quest for innovating and providing more value seemingly never ends. Shouldn’t you ask the same of your fulfillment providers?Without clear-cut criteria and a well-executed strategy for growth, your fulfillment provider could slow your business down. As we saw with this global pandemic, traditional shipping carriers like FedEx, UPS, and even Amazon could not scale quickly enough to meet the soaring demands of the eCommerce boom. Conversely, FaaS providers and third-party logistics (3PL) companies like ShipHero that were built for scale, equipped with agile development processes and defined expansion strategies, not only experienced tremendous growth and innovation but were able to deliver for their customers when others could not. We attribute this success on the Fulfillment Innovation Wheel to Capability #10: Scale Up and Out.

The Data-Driven Approach

First and foremost, through real-time data monitoring and executive reporting, your fulfillment provider should get the right data to the decision-makers, so that they can make the best possible decisions when it comes to expansion. Let the data tell you when it’s time to expand, because over-expansion is a kiss of death all on its own.Make sure you are tracking the data that tells the real story, like ‘Miles Travelled per Order’ or ‘Time to Fulfill’; whatever it may be for your business. Remember, locking in new warehouses to your network is expensive and very difficult to undo, so you need to ensure that there are no simple fixes for your current fulfillment capacity. At ShipHero, we have clearly defined criteria that informs us when it’s time to expand our operations. We know it’s time to expand when one of the following happens:

  • We reach physical storage limits for inventory
  • We reach shipping capacity, in terms of the amount of orders that can be shipped in a day
  • We recognize regional bottleneck trends, e.g., a distribution center on the East Coast is frequently shipping to the West Coast

If you are a 3PL or FaaS provider, be sure to collect the right data and set clear-cut goals for expansion. If you are a customer looking to outsource fulfillment, make sure that your fulfillment provider has these in mind, and can grow as quickly you do.Want to learn more? Some content from this article was borrowed from our previous article: Warehouse Buying 101: A Guide to Scalability, where we dive deeper into the expansion strategy that launched us to become trusted by over 4,000 ecommerce brands and 3PLs every day, in just under a year.

‍Stay tuned next as we cover Capability #12: Professional Services! At your service. ShipHero.

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January 29, 2021

Biden’s Environmental Justice League, Chairman Bernie Sanders Sells...

Front and Center

Environmental Justice League

In a slew of Executive Orders signed during his first week on the job, President Biden aims to tackle climate change through his plan for a Clean Energy Revolution with Environmental Justice. In so doing, Biden has set up several councils and initiatives specifically focused on administering environmental justice and creating green jobs to fulfill his plan.

I’m not saying President Joe Biden is Captain Planet, I’m just saying that I’ve never seen them in the same room at the same time...

What’s the goal?

President Biden’s plan aims to conserve at least 30% of the United State's lands and waters by 2030. The plan also calls for a pause on new oil and gas leases on public lands and waters, while taking steps to increase offshore wind energy production 100% over the next ten years.

The plan also promises to make major public investments in automobile infrastructure, including 500,000 electric vehicle charging stations, while accelerating R&D on battery technology and battery production. This is sure to increase production and widespread use of EV vehicles, buses and trucks for transportation.

Railway Revolution

Besides him famously commuting to work daily on trains, earning him the nickname “Amtrack Joe” (which would be a sweet rapper name), Biden’s infrastructure plan also promises to usher in the next great railway revolution.

“Biden will make sure that America has the cleanest, safest, and fastest rail system in the world — for both passengers and freight”, reads his Plan. “Biden will work with Amtrak and private freight rail companies to further electrify the rail system, reducing diesel fuel emissions.”

Heavy investments on the railway system will lead to millions of “good, union jobs” for many Americans and breathe new life into America’s middle class. Way to go, Amtrack Joe.

Impact to Logistics

While nobody can be certain what the future will hold, we predict that logistics companies will be forced to move away from transportation systems that carry a heavy carbon footprint (think: air freight) and move towards a more eco-friendly option.

Currently, multi-modal transportation systems that incorporate freight are too complex and downright costly, but Biden’s plan could turn the tides and make freight a viable option once more.

What do you think?? Will freight be a viable option for the future of logistics? Let us know your thoughts by emailing us here.

Back of the Packet

Order Up: 200 Million Piping Cold Vaccines

Besides checking off “climate change” on his presidential to-do list, President Biden also has the COVID-19 pandemic response to deal with. President Biden has ordered 200 million vaccines to be distributed equally between Pfizer/BioNTech and Moderna, in an effort to reduce reliance on vaccines coming from other countries.

Chairman Sander’s Merch

WE CALLED IT! Last Packet you may recall our prediction of the impending global fashion craze launched by the elegant and stunning Bernie Sanders walking the Red.. er.. Blue Carpet. Now Bernie Sanders merch has Sold Out on the Bernie Sanders official website, and all proceeds are going to a good cause.

“...all of the money that’s going to be raised – which I expect will be a couple of million dollars – will be going to programs like ‘Meals on Wheels,’ that feed low-income senior citizens,” Sanders said.

In a trend that just continues to prove the growing importance of political merchandise, the Bernie Sanders meme has taken a viral turn, being featured in everything from album covers to Japanese anime. What is it with Anime artists and Sanders men?

ShipHero News

Design for Returns

We start our The Fulfillment Innovation Wheel series by explaining Capability #4: Designed for Returns.

Plain and simple, customers have come to expect a quick and easy return process. Can’t you just hear them shout “It’s 2021! why can’t this be easier?!” into the ear of your poor customer service rep? That’s why a growing number of businesses, led by Amazon and Walmart eCommerce, have taken the customer-centric approach by offering generous return policies and a frictionless return process.

Find out how your business can offer a frictionless return process and bolster your customer loyalty.

Stay tuned as we break down each of the twelve capabilities. Next we will discuss Capability #10: Scale up and out.

Dropship It Like It’s Hot

In the first of our Shipping Method Explained series, we dive into dropshipping. In this article, we weigh the pros and cons, and discuss when it’s right for your business. Stay tuned as we cover 3PLs and logistics providers next.

Get Featured

We were overjoyed by the fabulous submissions from our wonderful and extremely attractive Packet community. While we engage with these businesses to squeeze every last juicy detail from them to share, we continue our search for more businesses that want to tell their story. If you would like to share with us stories about your ecommerce experiences, whether it’s how you started your business, what opinions you have on the stories we share, or if you just feel like venting… we’re here for you.

Shoot us an email and you could be featured on an upcoming edition of The Packet, or if you’re lucky, you could be invited to join one of our many Podcast episodes or featured on our Blog!

Check out the packets you missed here and Subscribe below so you don't miss the next one!

 

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January 28, 2021

Shipping Methods Explained: Fulfillment-as-a-Service (FaaS) Made Simple

Welcome to our Shipping Methods Explained blog series. In this series, we will deep dive into fulfillment methods - that is, how businesses fulfill their online orders and get products to their customers.

Sounds simple right? Well, in theory, it is. You could hop on your itty-witty bicycle and hand-deliver your product, mission accomplished. But consider the complexity when your company fulfills hundreds to thousands of orders daily, not to mention the skyrocketing shipping costs that could price you out of the market.

Managing inventory, navigating each carriers’ specific requirements, calculating the lowest cost from thousands of shipping options… it’s a daunting task. That’s why more and more businesses are outsourcing their fulfillment methods.

Are you ready to outsource your fulfillment? Let’s analyze your options to help you decide the best method for your business. In this second article, we’ll discuss Fulfillment-as-a-Service (FaaS). What is FaaS? What are the pros/cons? When is it right for my business? Let’s dive in.

‍(Check out our first article on Dropshipping here. And be sure to check back for future articles where we’ll cover even more fulfillment methods)

What is FaaS?

Simply put, Fulfillment-as-a-Service (FaaS) is where your company employs a third party company or warehouse to prepare and ship orders for you. This allows you to tap into fulfillment capabilities with no upfront investment of capital, and only pay for the services that you use.

Think about it like a subscription to Netflix. As long as you pay the subscription price, you have access to the content and services. Same with FaaS. As long as you partner with a third party logistics (3PL) provider, you can use them to pick, pack, and ship your product.

Now consider the alternative: in-house fulfillment, where companies must invest heavily in warehouse space, labor, management, and software to keep things running smoothly. With FaaS, this is all included in one subscription price, and you can pick and choose the specific capabilities that you need.

We wrote previously about how to choose which fulfillment method is right for you. Take a look here.

How to Start Shipping With FaaS

With seamless integration between your business systems and their fulfillment cloud-based platforms, getting started with a fulfillment provider has never been easier. All it takes is 3 easy steps to start delivering the goods.

Step 1: Find your Fulfillment Partner

The first step to outsourcing your fulfillment is to find the right FaaS partner for you.There is an endless list of fulfillment companies vying for your business. So when you are vetting each, ask questions like:

  1. Does the 3PL provider have the capabilities to fit your business needs?
  2. Can the 3PL provider integrate with your business systems?
  3. Does the 3PL provider have a proven track record offering reliable services?
  4. What are the costs? Do they charge per hour, per unit or packet? Are there transactional fees or recurring costs?

Not all 3PLs operate the same way: some value customization over speed, some strive to be the low cost option at the expense of service, so be sure to select the fulfillment partner that aligns with your specific strategic goals.

Step 2: Integrate

Once you decide on a fulfillment provider, it’s time to integrate.

FaaS providers offer cloud-based software solutions so that your business can utilize their warehouse management capabilities to control the flow of your products. These solutions offer great value to your business because this allows for highly customized options when it comes to fulfillment - custom packing, custom unboxing, custom bundles - you name it.  

Also, smart fulfillment companies like ShipHero provide you with the ability to create automated workflows and a frictionless return process through strategic partnerships with companies like Alloy and Returnly.

Step 3: Send Your Inventory

The final step is to send your inventory to your 3PL’s warehouses and get to shipping.

Once the inventory is received, the warehouse will begin to pick, pack and ship your products for you. If you picked a good fulfillment provider that is built for performance and scale, the 3PL will also disperse inventory across their network of warehouses, bringing the products closer to where the orders are coming from.

ShipHero is able to provide 2-day ground shipping for the contiguous US due to intelligent forecasting solutions powered by AI. We bring the products to where your customers are located, instead of a central fulfillment hub. This allows us to lower costs and our carbon footprint through an emphasis on ground transportation.

Fulfillment-as-a-Service Pros and Cons

Is FaaS right for your business? Or would you benefit from dropshipping or another fulfillment method? Let’s look at the pros and cons of fulfillment-as-a-service so you can decide for yourself.

FaaS Advantages

Business with big goals, fluctuating sales, and not enough time all find great value in the FaaS model. Beyond the obvious benefit of saving time and effort by having a third party fulfill your order for you, FaaS provides advantages in terms of skill specialization, agility, and scalability.

Flexible Pricing

As you grow, 3PLs are able to adapt to your needs and adjust costs accordingly. Conversely, when your business goes through a bit of a slow down (hopefully not), the costs can reflect this as well, and you won’t be weighted down with high overhead. FaaS allows you to forego the high costs, risk, and commitment of leasing and operating your own warehouse.

Skill Specialization

‍When you choose FaaS, you don’t just get a fulfillment provider, you get a business partner. Most 3PLs employ teams of logistics experts and support staff to help you with your shipping needs, and this comes standard with years of experience with fulfillment best practices and software solutions.

Not only do they provide shipping expertise, but also when handling the dirty business of returns. As online shopping continues to grow, so do the number of returned products. 3PLs can help you manage the nightmare of returns and offer a frictionless return experience for your customers.

Agility

‍If there is one thing that FaaS providers do well, it’s move quickly. Whether it’s shipping times or software development, 3PLs embody the spirit of agility. Many fulfillment providers like ShipHero offer 2-day shipping to anywhere in the US; this would require an immense investment from a business, so more and more retailers are partnering with 3PLs to achieve a level of agility they otherwise wouldn’t achieve.

FaaS Disadvantages

The advantages above explain why more and more retailers are partnering with third party logistics providers and fulfillment specialists. Despite the pros, FaaS is not right for every business.

Need Consistent Orders

‍If you are a startup or a small business still getting their feet wet, it may be better to handle your orders in-house due to the costs associated with fulfillment-as-a-service. But when customers are knocking down your door and you can’t handle the growing number of orders, 3PLs are standing by to help you as needed.

Lose Full Customization and Control

‍You’d be surprised with the range of customization that 3PLs can offer, but still there is a limit when compared to the full autonomy that you would have with in-house fulfillment. So if you have very detailed and highly specialized requirements when it comes to fulfillment, handling your fulfillment in-house may be a better option.

So, is FaaS right for your business? If you’re not sure, stay tuned for our next article as we dive into Fulfillment by Amazon (FBA).

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January 28, 2021

We're Just Human! Podcast: Retail, Wholesale and DTC

Welcome to Episode 9 of We're Just Human! Starting out at the ripe old age of 17, our guest Tance Hughes started his own print on demand business making t-shirts for teams. Since then, he's gone on to found several business starting with Southern Designs. Selling a range of products for the home and business that are manufactured, printed and fabricated in Vidalia, Lousiana.

Tance shares how he started coming from modest beginnings, the journey of building a business that has covered retail, wholesale and DTC, as well as the challenges and opportunities of hiring and growing his businesses in the madness of 2020. My only concern is Tance likes to wake up at 4:30am... :)

The products are really cool too! Check out the maps that are laser cut from metal https://www.cutmaps.com/ as well as some rather lovely home products that have me rethinking my wallpaper strategy https://www.carterandmain.com/

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