Discover warehouse management strategies, software, and providers to streamline inventory, enhance delivery, and boost customer satisfaction in 2024.
No matter if you have inventory that could fill multiple football fields or just a small garage, keeping track of it is essential. It's key to success in ecommerce and retail. Customers want to get the ordered items, in the right specifications, as fast as possible.
It sounds simple, but how do you keep your inventory list accurate and matching what's actually on your shelves right now? How do you ensure refrigerated items are packed right before your delivery driver picks them up so they don’t spoil?
We've put together the best strategies and important tips for every step, from getting your products to delivering them to customers. Plus, we've got recommendations for software and service providers that work for companies of all sizes.
Here's what you'll find in this article:
Warehouse management involves handling everything from receiving and storing products to keeping them safe until they're shipped to customers. It's a key part of businesses that sell physical items. This process includes seven stages in the supply chain and is where the final delivery to the customer starts. How well your warehouse and delivery teams work affects how quickly your customers get their orders.
Warehouse management also means the team of workers in the warehouse who do the daily tasks needed to manage the supply chain.
The better you manage your warehouse, the faster you can get products to your customers, and the more likely they are to keep coming back. Online shopping is still growing. Therefore, route optimization is becoming crucial to efficiently use delivery labor and maintain profits. Companies can count on increased productivity and improved customer experience with route optimization.
eMarketer predicts that in 2024, getting customers and generating revenue cannot only depend on online channels like social media, as DNVBs have previously relied on. Namely, according to the eMarketer forecast from February 2024, US consumers are expected to spend $6.23 trillion in traditional retail stores this year. That offers a significant opportunity for DNVBs.
Good warehouse management is crucial for businesses, especially DNVBs. It enables efficient stocking and delivery of products, which supports strategies like expanding physical retail presence and partnering with wholesalers. This efficiency helps DNVBs drive sales, enhance customer experience, and maintain competitiveness amid rising advertising costs and shifting market dynamics.
Even more so, teamwork between your warehouse and delivery teams is key if you want to compete with big ecommerce companies like Amazon. Warehouses set up your delivery team to provide great order delivery and customer service.
Improving product deliveries and reducing turnaround times hinges on integrating efficient warehouse management with excellent last-mile delivery. Last-mile delivery is the final step in the shipping process. It directly impacts the customer experience.
Even if your warehouse runs smoothly, poor last-mile delivery can lead to delayed deliveries and dissatisfied customers. Similarly, efficient last-mile delivery won't matter if your warehouse isn't properly stocked.
Warehouse management and last-mile delivery are critical components that must be optimized together for business success. Even more so, avoiding return fees altogether can help you avoid losing customers. Namely, a whopping 88% of consumers will stop shopping through a retailer due to the paid returns policy. You can find more insights on optimizing last-mile deliverya and how eLogii supports businesses in overcoming these challenges.
It's natural to assume that no one will focus on your products and customers more than you do. That's why many retail businesses find success by handling last-mile delivery internally. eLogii has enabled retail and ecommerce companies worldwide to boost revenue by enhancing key performance indicators like delivery capacity and punctuality.
eLogii seamlessly integrates with various third-party software, including warehouse management systems. Through API integration, your entire team can stay coordinated, ensuring swift movement of products from packing to loading and final delivery.
Fleet managers can focus on strategic planning by relying on eLogii to compute optimized delivery plans for them. They simply need to upload orders and specify any constraints or route actions using the planning screen
With eLogii, you can also send customers real-time updates about their orders through email or SMS notifications. This not only enhances customer satisfaction but also reduces the need for customers to call and inquire about their package's whereabouts. These notifications are customizable and include a live tracking link that details the exact arrival time of orders.
If you ever need to use a shipping service or courier, this article offers useful tips and suggestions for reducing shipping expenses. Additionally, we've included a guide to package tracking with links to the most popular global couriers, allowing you to track your package instantly.
Seven Essential Duties of Warehouse ManagementWarehouse management teams begin by inspecting incoming products or raw materials before storing them. Employees receive pallets of inventory and inspect inbound products from suppliers to ensure they match the purchase order and are free of damage or loss during transit. Any discrepancies should prompt the initiation of a new purchase order.
Sometimes, warehouses receive shipments containing items of incorrect color, size, or material. Occasional errors are usually manageable. However, managers must identify if certain suppliers consistently deliver damaged goods or miss delivery deadlines. Persistent issues should be reported to senior management to evaluate the need for finding alternative suppliers.
Next, warehouse staff move the inspected products to designated locations within the warehouse. They will be securely stored until ordered by a customer. Careful consideration is essential for where and how items are stored. Products must be kept safe, with heavy items not placed on top of lighter ones, sensitive items potentially requiring temperature-controlled environments, and all products handled with care.
The layout and allocation of storage within a warehouse significantly impact the efficiency of order processing. That is especially true in larger and more complex facilities. It's crucial to store frequently ordered items close together to cut travel time for pickers. Popular products should be placed in easily accessible locations, such as lower shelves near the front. Additionally, items with expiration dates should be prioritized. Those expiring soonest should be located closest to the front for prompt shipment.
When a customer places an order, it's the picker's responsibility to collect the items from the shelf and deliver them to the packing area. Efficient pickers work swiftly and with high accuracy, ensuring they consistently retrieve the correct item, size, and color. A well-organized warehouse or distribution center, as described in step 2, facilitates easier and more effective picking operations.
These are the most common picking methods:
Picking starts right after a customer orders, so the clock is ticking. Any delays or problems from this point on will directly impact how quickly the order gets delivered.
Packers receive items from pickers and verify their accuracy before performing a final inspection to ensure items are undamaged and within expiration dates. They then securely pack the items for shipment and update the warehouse inventory. Packers handle fragile items carefully to prevent damage during transport. They may use specific packaging materials to meet courier requirements. They also prepare shipping labels and sometimes assist in loading courier vehicles.
Last-mile delivery involves transporting goods from the warehouse directly to the customer. This can be managed in two ways:
Regardless of the approach chosen, effective coordination between warehouse management and last-mile delivery is crucial. Packaging should be timed to coincide with courier arrivals for swift loading of delivery trucks, especially for perishable items.
Auditing a warehouse ensures inventory control and quality assurance, preventing minor errors or damaged products from becoming significant issues. Managers conduct audits at varying frequencies, depending on warehouse size and operational complexity. Audits typically involve cross-checking inventory levels against digital records to ensure accurate forecasting.
Managers also verify products with expiration dates to prevent disposal and restocking needs. In larger warehouses, audits may extend to evaluating personnel, product placements, scheduling strategies, and other operational aspects. These checks help identify and address potential issues before they impact customers or pose risks on the warehouse floor.
Returns and restocking are crucial aspects of warehouse management that are often underestimated. Establishing a smooth reverse logistics process for customers is essential in the product supply chain. Returns are inevitable, regardless of your team's skill or product quality. Warehouse management teams manage the receipt and restocking of returned products, as well as the picking and packing of new items for exchanges.
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All the typical challenges in warehouse management can be tackled using software, outsourcing, or a combination of both. These challenges include:
Fortunately, there are straightforward strategies you can use to address these challenges.
Prioritize hiring top-quality talent for your warehouse management team. Employees who are consistently tardy or mishandle products can lead to significant financial losses. Implement a strong employer branding strategy, a focused recruiting approach, and competitive salaries to mitigate pitfalls in your hiring process. Consider partnering with a specialized recruitment agency to attract exceptional candidates.
Engaging a third-party logistics company (3PL) to oversee your inventory is a viable solution for many businesses. Whether your company is large or small, there's a 3PL provider suited to your needs. These experts specialize in maintaining inventory levels and ensuring product safety while delivering excellent customer experiences. Most 3PLs have established partnerships with major couriers like UPS and FedEx, facilitating both local and broader product distribution.
Utilizing software solutions like Warehouse Management Software (WMS) or Enterprise Resource Planning (ERP) software can enhance both daily operations and strategic capacity planning. Implementing Software as a Service (SaaS) tools ensures that everyone has access to current information efficiently.
Warehouse management software (WMS) acts as a central hub for warehouse operations, minimizing human error. Managers can oversee operations remotely, even using tablets or mobile devices. Pickers benefit from WMS software by quickly locating SKUs, while packers can use it to notify the team promptly about outgoing orders. When integrated with delivery management and route optimization software like eLogii, these technologies create a robust system for achieving comprehensive logistical success.
Optimize your warehouse operations internally by simplifying your fulfillment and logistics workflows with WMS solutions customized to suit your requirements. Below, you'll discover a summary of four software options, including the types of businesses they cater to, along with an explanation of their unique features and functionalities. What's more, all these warehouse management solutions can integrate seamlessly with a route planner for comprehensive logistics management from start to finish.
Fishbowl inventory management software simplifies every aspect of warehouse management and more. It enables swift processing of incoming stock using barcode scanners and facilitates inventory tracking by expiration date or serial number. Additionally, Fishbowl supports creating work orders for repairs that can be saved for future use. Integration with popular ecommerce platforms like QuickBooks, Shopify, and Amazon is seamless.
Sortly offers an intuitive inventory management system suitable for businesses of all sizes, especially small enterprises. Employees can use Sortly's in-app scanner to efficiently process inventory by scanning product barcodes or QR codes using smartphones, tablets, or handheld scanners. It also allows granting specific access permissions to employees, enabling streamlined operations without constant managerial oversight.
Logiwa is a cloud-based warehouse management software designed to automate and streamline complex warehouse workflows. It optimizes time spent on picking and packing through features like wave, batch, and cluster picking. With multi-warehouse management capabilities, Logiwa is ideal for scaling businesses and larger enterprises. It integrates seamlessly with major marketplaces and ecommerce platforms such as Amazon and Shopify.
Infoplus Commerce caters to both small independent companies and large third-party logistics providers (3PLs). It offers robust inventory management solutions with integrations for marketplaces and artificial intelligence tools that prioritize tasks effectively. Infoplus Commerce supports various integrations including marketplace and shopping cart platforms, making it versatile for diverse business needs.
Prefer outsourcing? Below, you'll find details about four warehouse management providers available for managing your inventory. You can maintain control of last-mile delivery by using these providers alongside eLogii.
ShipBob offers comprehensive 3PL services, handling both forward and reverse logistics including returns processing, inventory management, and order management. It caters specifically to ecommerce companies using the DTC model and integrates seamlessly with platforms like Amazon, Walmart, and Shopify.
eFulfillment Service specializes in serving ecommerce businesses and integrates smoothly with popular selling platforms such as eBay and Shopify. Based in Traverse City, Michigan, this family-owned business has no minimum order requirements or storage space, making it ideal for small businesses and scalable options.
FLEXE provides on-demand warehousing, order fulfillment, and distribution services for retail stores and ecommerce businesses. They cater to enterprises and smaller businesses alike, with multiple warehouses across the United States. FLEXE has partnered with renowned brands like Ralph Lauren, Staples, and Ace Hardware.
Red Stag Fulfillment utilizes RSF OPS, a proprietary cloud-based system, to manage warehouse operations, storage, and fulfillment. They offer real-time monitoring capabilities for DTC and B2B ecommerce companies, allowing access to order status and inventory via computer or mobile devices.
Whether you opt for warehouse management software to manage your entire product journey internally or enlist a 3PL, eLogii is here to enhance your last-mile delivery. Our delivery management software optimizes routes for cost-efficiency, driver workload balance, or a blend of both. eLogii simplifies the input and storage of unique business constraints, offering managers analytics to inform strategic decisions for future planning.
We are dedicated to providing excellent customer service so you can do the same for your customers. Have questions? Just share details about your Distribution or Field Service business, and our product expert will demonstrate how eLogii can enhance your operational efficiency.
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