Inventory Management

The Basics of Inventory Management: Warehousing, Picking, Packing and Shipping

Small businesses need to understand a simple strategy that concerns establishing coherence between customer demands and the existing supplies. More often than not, startups and even medium-sized enterprises fall short of resources— which in turn sabotages their credibility. While manufacturing is never really an issue with technological innovations at the helm, it is the product distribution that takes a beating.

 

Major issues include inadequacies related to product picking, packing and shipping. In addition to that, certain businesses also find it hard to store their products in an efficient manner. However, if businesses continue worrying about these aspects of inventory management, it becomes hard for them to grow and even outrun the competition. Moreover, delayed shipments can easily kill off the customer satisfaction levels with companies failing to deliver products on time.

 

There are several firms which readily outsource the pick and pack services— in order to save time and even overhead costs. Pick and Pack warehousing is a comparatively newer aspect that combines the essentials of product storage with excellent shipping services. Companies that worry about storing their products in a secured environment are better off hiring 3PL service providers which emphasize on Pick and Pack warehousing. While it easily mitigates the storage constraints, a host of other benefits are also available for businesses to leverage.

 

Meeting Customer Demands

 

Having specialized warehousing services at the helm can help enterprises meet varied customer requirements. Once a business starts blossoming and growing rapidly, it becomes important to stay on track with the persistent user preferences. This is where outsourcing comes in handy, especially by offering excellent Pick and Pack storage and distribution services to the concerned organizations.

 

Fulfilling the Storage Requirements

 

Before we delve any deeper into the basics of Pick and Pack services, it is important to understand the influence of outsourcing in regards to handling the storage needs. Manufacturing industries usually need to ship extensively and having a restricted storage space can actually slow them down. While it is always possible to hire specialized warehousing services, most companies look for cohesive options that can cover multiple bases. Having one logistics company handle the basics of storage, picking, packing and shipping can be the best possible option when the manufacturer is looking to minimize the costs.

 

Efficient, off-site warehousing is one aspect of this cohesive program that allows an enterprise to manage inventory without opting for contract or distribution warehouses. Online warehouse management is also possible. Unlike other warehouses that solely offer storage options, facilities synonymous to the Pick and Pack management believe in dispatching the products, almost instantly. To be exact, enterprises can enjoy the benefits of a dynamic storage system where products aren’t dumped for an eternity but are expedited immediately.

 

Understanding Picking and Packing Better

 

Unlike conventional warehouses that offer storage facilities, managerial flexibilities and a host of other features, enterprises relying on Pick and Pack services are best served when it comes to the holistic catalogue of services. These include a variety of Inbound and Outbound services, dedicated towards amplifying the revenues and serving the customers better.

The best part about using Pick and Pack Distribution is that a shared warehouse can serve the purpose for multiple organizations. The products are then immediately packed and distributed to the concerned customer base. As we could already infer from the discussion, this form of inventory management is affordable and exceedingly cost-effective. With small businesses using Pick and Pack services rather extensively, the popularity seems to be validated.

 

In addition to that, outsourced pick and pack services also assist manufacturers with their inventory solutions. Firstly, the designed warehouses managed by these specialized 3PL service providers are organized and extremely efficient. Apart from that, they offer advanced inventory management solutions like stock replenishment and necessary intimations. As the part of a holistic cycle, these solutions also involve picking up manufactured products from the companies, storing them in bespoke warehouses, packing them accordingly and finally, shipping them across multiple channels.

 

Bottom-Line

 

An inventory-specific business model requires higher levels of cohesion between warehousing, packaging and distribution. While hiring a 3rd party fulfillment service for the specifics is a good option, pick and pack service providers are actually best suited for a retail-specific business. This form of inventory management works wonders for small to medium business owners, thereby helping them save additional costs and efforts.

 

 

10 Myths About E-commerce Fulfilment Solutions

The high paced growth of the E-commerce sales channel has given immense boost to the E-commerce Fulfillment Solutions and various Third Party Logistics companies. However, there exists a wide section of the market – especially the smaller, newer e-commerce players who debate the concepts of outsourcing their Fulfillment operations or for that matter, even consider a professional Fulfillment solution. So here’s an attempt to break certain myths about the whole order Fulfillment solution and put things into perspective.

  1. Getting orders is tough; Order Fulfillment is easy.

Right and wrong. While the base of any business is getting more and more orders for your products, it is equally important to have a seamless, cost effective and fully optimized order Fulfillment process in place to ensure repeat customers, better revenues and even better profits. Many small and new businesses believe that having a good product to sell is a war won. However, what they miss is that order Fulfillment is a giant that will slowly grow so big that it would be tedious and not profitable to do it all by themselves.

  1. Fulfillment solutions are only for the BIGGIES.

A BIG Myth. Fulfillment solutions can benefit businesses of any scale. The key is to tap on the right Fulfillment partner for your business’s need. A bit of research and having clarity of what you need from your Fulfillment partner can be far more beneficial and economical than doing it all by yourself.

  1. Fulfillment Solutions Are Expensive.

At the first look of it – Yes they are! But have a closer detailed look and you would know that it’s an investment that saves you a lot more expense at a later point…maybe even today. If you are an ecommerce merchant handling your own order Fulfillment, you know how high your fixed costs have gone. You can cut them down by outsourcing your order Fulfillment to a specialized Fulfillment solution provider. Imagine not having to bear the cost of that warehouse?

  1. Order Fulfillment solutions are only friends of ‘volumes’.

No doubt, volumes ensure better profits but Fulfillment solutions are profitable to all. Smaller businesses often go through fluctuations in their sale volumes. Festivals and special occasions can sometimes give a huge spike which can become highly difficult to manage in terms of product deliveries. Having a Fulfillment partner ensures that you receive the scale up and down of order Fulfillment resources without having to either increase your fixed costs or lose market credibility with poor deliveries.

  1. We’re too small to have complex systems and processes

Small e commerce ventures believe that having Fulfillment solutions may end up complicating their otherwise simple delivery process. On the contrary, if you wish to grow and scale up your business in future, it is far more important to have your processes put right at an early stage. Looking in to detailing at the start and letting Fulfillment experts set up your base can actually save you lot of time, money and effort of revamping at a later stage.

  1. We know them best- Our Business, Our Customers

Most retailers are driven by the thought that they know their business and their customers well and no third party can match up to the standards of reaching out to their customer. Remember, just like you, the 3PL or Fulfillment solution providers are experts of their business and your delivery services may actually not match up to their efficiency and standards. Let the experts do the job!

  1. We’ll lose sight and control.

Business owners worry that having their warehouse stocking, logistics and shipping out of their main system may lead to losing sight of their product and control on their deliveries. However, the truth is that modern Fulfillment solutions give better control and visibility to business owners. With providers offering real time tracking, order Fulfillment can be a cake walk.

  1. It’s Only Packing and Shipping! What Extra would They Do?

Most small to mid-size companies are not fully aware of the offerings of modern day 3PL’s and thus fail to see the benefit. Order Fulfillment companies are way beyond a pick, pack, ship player. Their extensive value added services can really help your business grow.

  1. They may stunt our growth

For the ambitious ones, being stuck with a Fulfillment partner is a scary thought. The truth, however, is having selected a ‘fit to your needs’ Fulfillment partner and having a great working rapport can in reality help you scale faster than you could do yourself.  Your partner scales up as your business grows.

  1. What if my inventory is slow moving? It’ll be far more expensive.

Yes, it’s a fact that there may be chances of you paying much extra on storage for slow moving inventory. However, collaborating with a good Fulfillment partner who gives you a good picture of your stock and stats, can help you avoid the scenario of SMI in the first place. Additionally, Fulfillment solution providers offer value added services like promotions in order delivery which can help the slow inventory pick pace.