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Retail success depends on more than high sales figures. Strong retail inventory management is a must. It ensures products flow without delays in the supply chain. Retailers struggle with stockouts and overstock when inventory is not managed well. Manual errors and phantom inventory make the problem worse. These problems raise costs and disrupt operations.

Every unit in storage has carrying costs, including warehouse space, handling, and transportation. Inventory accuracy helps businesses keep the right products in stock. It ensures they meet demand without locking up extra capital. Retail logistics management software helps solve these challenges by automating key workflows. Such as ordering, tracking, storing, shipping, and returns.

The industry itself shows rapid growth. The retail inventory management market is projected to reach USD 54.98 billion by 2032, with a 13.1% CAGR. These stats show the importance of advanced inventory control systems. Retailers now rely on POS integration, SKU tracking, and AI-driven forecasting worldwide. Businesses that adopt these solutions gain stronger inventory optimization. While also gaining a competitive edge in an evolving retail landscape.

Retail inventory management: A unique challenge

Inventory management is vital for any business. In retail, it carries even more weight. Retailers handle perishable items such as meat and dairy. They also stock seasonal goods, including electronics and holiday decorations. With demand constantly shifting, tracking product locations is vital. It is equally important to check stock levels and profit margins across all channels. Both online and physical stores need real-time inventory visibility to stay efficient.

Despite this, 41% businesses still struggle with manual methods (Source: Gartner). According to industry reports, 41% of small businesses must actively monitor their inventory. While 21% businesses report having no stock at all. These gaps highlight the risks of poor inventory tracking. These include phantom inventory and lost sales opportunities.

The solution lies in modern retail inventory management software. By adopting real-time systems, retailers can raise accuracy and prevent stockouts. Along with increasing customer experience.

What is Retail Inventory Management Software?

Retail inventory management software is a digital solution for retailers. It helps track and control stock at every stage, from receiving goods to final sales. It replaces manual spreadsheets with a system that keeps records accurate and updated in real time.

Modern retail inventory management software supports inventory control by monitoring stock levels. It also alerts you to shortages and automates the reordering process. It allows retailers to manage items across multiple stores and channels. POS integration and cloud-based dashboards simplify the process.

With built-in retail inventory optimization tools, retailers can reduce overstocks and prevent stockouts. These features make the supply chain more efficient. They help businesses make smarter purchasing decisions. While also enhancing customer experiences.

Core Features of Retail Inventory Management Software

The following are some core features of inventory management:

Automated Warehouse Receiving

Retail inventory management software improves accuracy from the first step. Automated warehouse receiving uses OCR, barcode scanning, RFID, and mobile-first tools. Each item is tracked at entry. This reduces manual errors and phantom inventory. The result is faster receiving and higher inventory accuracy.

Centralized Product Management

Centralized product management gives retailers full control over stock data. All product information is stored in one system. This reduces duplicate entries and improves visibility. Multi-location inventory management makes it easier to see stock across warehouses and stores in real time. Retailers can align purchasing and sales strategies with accurate product data.

SKU Management

Effective SKU management is key to inventory accuracy. Retail software tracks products with item-level tagging. Each SKU can be monitored across channels and locations. This improves reporting, reduces mismatches, and ensures better control of stock flow. Strong SKU tracking also supports faster audits and cycle counting.

Pick-and-Pack Fulfillment

Pick-and-pack fulfillment tools speed up warehouse operations. Workers use guided picking methods such as FIFO, batch picking, or wave picking. This process reduces handling errors and ensures that items move in the right order. Faster picking improves productivity and lowers fulfillment costs.

Order Fulfillment

Order fulfillment is optimized through automated inventory control. Retail systems connect with e-commerce and POS platforms to process orders quickly. Omnichannel fulfillment is supported, allowing customers to order online and pick up in-store. Accurate stock data ensures that orders are completed without delays or stockouts.

Purchase Order Management

Purchase order management helps retailers control stock purchasing. The system creates and tracks purchase orders with accuracy. Retailers can align vendor communication, approvals, and deliveries in one place. This ensures timely replenishment while reducing excess stock.

Reorder Management

Reorder management keeps stock levels balanced. The software calculates safety stock, EOQ, and reorder points automatically. Predictive demand forecasting uses AI to adjust reordering based on trends. This avoids overstock and stockouts while maintaining smooth inventory turnover.

Returns & Reverse Logistics

Reverse logistics is a challenge for most retailers. Inventory software manages them with real-time reconciliation of returned goods. Integration with e-commerce platforms makes reverse logistics easier. Retailers can track returned items and reduce losses with such transparent processes.

Advanced Capabilities Modern Retailers Need

In today’s evolving retail industry, outdated strategies no longer work. Here are advanced capabilities every retail inventory management system must have.

Real-Time Inventory Management

Modern retailers cannot rely on outdated tracking methods. A perpetual inventory system updates stock levels with every sale, return, or transfer. It reduces errors that come from periodic checks and improves inventory accuracy. Real-time visibility helps retailers avoid both stockouts and overstock situations.

Forecasting and Analytics

Accurate demand forecasting is key to efficient retail operations. AI-driven analytics study sales patterns, seasonal demand, and customer behavior. Predictive models help retailers plan inventory and set the right reorder point. Strong forecasting prevents losses and ensures better customer satisfaction.

Optimization Techniques

Retailers use proven techniques like ABC analysis to focus on the valuable products. The economic order quantity (EOQ) method balances order size with holding costs. Regular cycle counting improves accuracy and keeps records aligned with physical stock. These practices improve turnover and reduce carrying costs.

Integrations Across Systems

Seamless ERP integration connects inventory with finance, sales, and supply chain systems. Linking the platform with POS integration and e-commerce channels gives a single source of truth. Retailers gain unified dashboards, better reporting, and faster decision-making. Integration ensures smooth operations across all locations.

AI and Automation

AI-powered tools now streamline inventory tasks. Automated alerts highlight low stock, safety stock breaches, or reorder needs. Smart AI scanning and vision systems improve accuracy at receiving and shipping. Automation cuts manual work, reduces errors, and supports inventory optimization software.

The Role of Hardware & Tagging

Modern retail inventory management depends on reliable hardware and smart tagging methods. These tools improve speed, accuracy, and visibility across all locations.

Barcode Scanners

Barcode scanning is still one of the most trusted methods for item tracking. Handheld and wireless scanners help reduce errors at checkout, receiving, and stock counts. They allow staff to update inventory data in real time.

RFID Technology

RFID inventory management provides item-level tagging and instant product identification. Retailers use RFID tags to track movement across warehouses, stores, and distribution centers. It lowers phantom inventory and strengthens inventory accuracy.

Electronic Shelf Labels (ESL)

ESL systems display real-time pricing and stock information on shelves. This makes inventory updates faster and improves customer experience.

Mobile-First Inventory Control

Smartphones and tablets now serve as mobile inventory management devices. Staff can scan items and update SKUs from anywhere. They can also access dashboards, making operations flexible and efficient.

Benefits of Retail Inventory Management Software

The following are a few benefits of retail inventory management software:

• Higher Inventory Accuracy
  Retailers face losses from phantom inventory and stock mismatches. Retail inventory management software improves accuracy through real-time tracking and cycle counting. It ensures SKU management is consistent across stores and warehouses.

• Lower Operational Costs
  Carrying extra stock increases storage expenses and shrinkage. Inventory optimization software maintains safety stock and automates reorder points. Retailers improve inventory turnover and reduce waste by aligning stock with demand forecasting.

• Improved Customer Experience
  Customers want products available across online and in-store channels. Cloud-based inventory software supports omnichannel fulfillment with real-time stock updates. Faster order picking and accurate availability improve customer trust.

• Scalability for Growth
  Retail operations expand with new stores and higher order volumes. Scalable logistics systems and cloud-based platforms adapt without disruption. AI forecasting and automation keep inventory control efficient at every stage.

• Future-Proofing with Innovation
  Modern software supports RFID inventory management, mobile scanning, and sustainable practices. These tools improve visibility and prepare retailers for long-term success. Investing in advanced solutions keeps operations competitive and resilient.

Choosing the Right Retail Inventory Management Software

Selecting the right retail inventory management software is a critical step. It needs careful consideration as it will define your long-term success. 

The right tool reduces errors, improves visibility, and supports business growth. When comparing solutions, focus on factors that directly impact daily operations and scalability.

Key Evaluation Factors

• Scalability:
  Choose cloud-based inventory software. They can adapt to growing product catalogs and multiple store locations. A scalable system helps retailers expand without losing control of stock accuracy.
• Integration:
  Look for software with seamless POS integration, ERP connectivity, and e-commerce platform support. Omnichannel retail requires a single system of record to manage SKUs across channels.
• Reporting and Analytics:
  Strong reporting tools offer insights into safety stock, reorder points, and inventory turnover. Advanced analytics support accurate demand forecasting and cycle counting.
• Ease of Use:
  User-friendly dashboards and mobile accessibility reduce training time. Retail staff can process orders, manage SKUs, and track returns faster.

Case Study: How a Retailer Improved Inventory Accuracy by 70% with PackageX

A leading retailer faced challenges with mismatched cycle counts and delayed order processing. This ultimately leads to increased operational costs. Their warehouse teams relied on manual tracking and spreadsheets. This created phantom inventory and fulfillment delays.

After adopting PackageX Inventory Management Software, the business automated receiving, order fulfillment, and SKU tracking across multiple locations. AI-powered scanning and real-time dashboards gave staff instant visibility into stock levels.

The results were clear:

• 70% improvement in inventory accuracy
• 50% faster order processing times
• Stronger customer satisfaction through fewer stockouts

This transformation highlights how the right inventory solution can reduce errors. Not only that, but it can also help retailers scale with confidence.

Why Retailers Choose PackageX for Inventory Management?

PackageX helps leading retailers manage stock with speed and accuracy. It enables them to reduce errors, scale operations, and deliver better customer experiences.

Here’s why more businesses rely on PackageX:

• Eliminate phantom inventory with AI-powered scanning.
• Automate purchase orders, reorders, and cycle counts.
• Manage SKUs across multiple stores and warehouses.
• Gain real-time visibility into stock levels and order fulfillment.
• Cloud-based inventory management software that grows with your business.

Discover how PackageX supports modern retail. It enables you to optimize stock, reduce costs, and serve customers with confidence.

Book a demo today!

FAQs

What are the 4 types of inventory management?

In retail logistics understanding the types of inventory is key to smooth operations. The four main types are:

• Raw Materials: Basic materials used to create products.
• Work-in-Progress (WIP): Items that are in the production process but not yet finished.
• Finished Goods: Completed products ready for sale or distribution.
• Maintenance, Repair, and Operations (MRO): Supplies used to maintain equipment and operations.

Each type plays a unique role in managing stock efficiently and reducing costs across the supply chain.

What is the inventory management system for retail?

A retail inventory management system is software designed to help stores track and manage their stock. These systems:

• Monitor inventory levels in real time
• Manage purchase orders and suppliers
• Forecast demand accurately
• Sync inventory across multiple sales channels

Using an effective retail inventory management system prevents these problems. For instance overstocking, avoids stockouts, and helps retailers make smarter business decisions.

How do retail stores track inventory? 

Retail stores track inventory in several ways:

• Manual counts: Using spreadsheets or paper logs for periodic checks.
• Barcode scanning: Items are scanned into the system when stocked and scanned out at checkout or shipment.
• RFID technology: Tags provide real-time inventory updates across the store.

Combining technology with regular audits improves overall inventory efficiency.

PackageX is committed to transforming logistics operations for warehouses, stores, and buildings by digitizing data and automating day-to-day receiving and fulfillment workflows. In this series, we pinpoint common areas in logistics that are ripe for automation and offer quick-win solutions to improve efficiency and reduce costs. 

This article explores reverse logistics, or the customer-initiated process of returning goods to the seller or manufacturer. According to Shopify, the average return rate in ecommerce is 20% to 30%. In 2022, US customers returned $861 billion in merchandise, representing 16.5% of total retail sales. Of the total returns, 10.4% were fraudulent—for every $100 in returned merchandise accepted, retailers lose $10.40 to return fraud. 

Despite the costs incurred for returns, offering a free and intuitive returns process can boost conversions on high-ticket items by 17%, making returns both a cost center and revenue driver. Employing opportunities for automation in reverse logistics could significantly reduce total costs. 

Retailers have heavily invested in improving the ease of customer returns over the last ten years. Despite these efforts, the manual and outdated returns operations at warehouses, stores, and consolidation centers have persisted, leading to increased costs from delays in restocking and fraud.

In this article, we’ll break down key steps in reverse logistics, from customer initiation to warehouse receiving, and suggest opportunities for automation. 

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Customer Initiation, Label Creation, & Returns Authorization  

Reverse logistics begins after a customer has received a package, inspected the product, and decided to make a return. The reason for returns varies: the item doesn’t fit (75%), the item doesn’t align with the description on the website (56%), the customer is dissatisfied with the item (33%), the customer ordered multiple items with the intent of returning some (14%), or the item arrived late (11%). 

There are several approaches retailers employ to help shoppers initiate a return. Some retailers include a return label in the initial package, eliminating the need for shoppers to create a label. Many retailers still require shoppers to contact their support teams to obtain a return label, depending on the nature of the product. Other retailers require shoppers to enter their order number into a self-service returns portal to generate a label or QR code, often utilizing returns management software like Happy Returns or Loop. In addition to shipping returns directly to warehouses, many retailers introduced convenient drop-off locations in partnership with carriers and big-box retailers. 

Automation Opportunity: An Optimized Digital Returns Journey 

Many warehouses accept hundreds or thousands of returns from dozens of portals. Each portal has a different process associated with getting returns to the warehouse, and the workforce is left manually checking different systems to ensure returns are routed and sorted correctly.

Rather than a customer creating a label and initiating a return in a process disconnected from the supply chain, retailers should look to digital returns portals that provide retailers with instant insights on what items are being returned, who is returning them, when to expect the return at the warehouse, and more. Most digital returns platforms integrate with systems you already rely on: your order management system (OMS), warehouse management system (WMS), inventory control software, and more. 

For example, suppose a shopper initiates the return process. In that case, they can attach an image of the item during the initiation process, allowing the retailer to identify the product and its condition. A label or QR code is generated based on its disposition, ensuring the product is shipped to the right warehouse for restocking or recycling. Not only does this improve visibility and automatic routing, but it also represents a roadblock for shoppers trying to commit fraud. 

Many retailers have already employed digital returns portals to improve the customer experience during the returns process. However, many warehouses accept hundreds or thousands of returns from dozens of portals. Each portal has a different process associated with getting returns to the warehouse, and the workforce is left manually checking different systems to ensure returns are routed and sorted correctly. This often results in a drawn-out returns journey because returns get sent to the wrong place, visibility is non-existent until the return is at the warehouse and more. Retailers must ensure that changes to the digital returns journey balance shopper experience with workforce productivity and return-to-stock rate. 

Free returns improve conversion rates, but returns fraud and friction in reverse logistics significantly cut retailers’ profit margins. Establishing simple and intuitive processes for shoppers to assess, classify, and document their returns can minimize friction and fraud.

Shipping & Receiving of the Return ‍

Shipping begins with the customer taking the relabeled package containing the return to a location for shipping. Retailers offer different options for return shipping, including a dropoff location provided by a parcel carrier (63%), partner locations (40%), dropoff in brick-and-mortar stores (36%), and collection from the customer’s home (26%). From there, the item can begin transportation to a warehouse. Offering more return options is generally favorable; customer loyalty and seamless returns processes go hand-in-hand. 

Once the return arrives at the warehouse, the process typically begins with a barcode scan to capture tracking details. From there, packages will be opened and manually sorted to be inspected. Before the inspection, however, the workforce will need to manually record information like the Return Materials Authorization (RMA), sender details, weight, etc. 

Over the past decade, retailers have made significant investments to make customer returns as frictionless as possible. However, the actual returns processing at the warehouses and consolidation centers still involves manual data entry and working with legacy backend systems. According to a 2024 study by Blue Yonder, more than half of retailers are using non-digital methods of returns initiation, and at least 42% are still manually approving refunds, meaning returns are often received blind at the warehouse. The downstream effects of manual entry during returns include a slowed down return-to-inventory rate and processing time. These inefficiencies continue to increase costs and reduce margins for retailers as returns move through receiving, verification, and restocking at their own or a 3PL warehouse.

Automation Opportunity: Digitizing Returns Data at Receiving 

Digitizing data is key to an efficient returns process. Instead of traditional barcode scanners, warehouses, and stores can use computer vision and AI software like Packagex's OCR API to scan detailed returns label information, integrating it with existing systems like digital returns portals, WMS, and inventory management software.

Additionally, suppose data digitization is initiated upstream during the customer initiation and label creation process, as suggested above. In that case, automated receiving can be coupled with that data to consolidate return data and prevent fraudulent returns. This data can also be used to enhance existing workflows in the warehouse. For example, if a customer returns an item they claim is damaged and has created a label that indicates that, upon receiving, items can be redirected on a conveyor belt to an area for damaged products. 

Inspection and Processing of Returned Items 

After receiving is complete, the return begins an inspection process to determine the condition of the items and what amount of value can be salvaged from the return. If an item is damaged, it must be sorted for appropriate disposal. If the item is not damaged, it can be scanned into the WMS or returns system. This is a hugely time-consuming step in the returns process—all items must be inspected differently and according to different rules. A broken smartphone, for example, would have much more stringent inspection rules than a lipstick, which could simply be disposed of. 

If you combine complicated, manual, and lengthy inspection procedures with a large volume and variety of products eligible for returns, the warehouse workforce becomes bogged down with inspections. However, forgoing a sufficient inspection process will be costly. Returns will need to be disposed of, regardless of their condition. 

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Automation Opportunity: AI-Detected Package Damage Detection and Digitized SOPs

Instantly identify any signs of damage on packages or items moving along warehouse conveyor belts or during the inspection process with advanced vision technology, artificial intelligence, and deep learning. PackageX Damage Detection helps the workforce at warehouses and stores become more efficient by reducing inspection time and manual sorting errors. 

Data digitization at receiving and AI can do much of the upfront damage detection and sorting, helping to sort damaged items before any human inspection is needed automatically. However, the warehouse workforce must still inspect many items using detailed, multi-criteria inspection processes. Most standard operating procedures (SOPs) for ecommerce returns are still captured manually. This lack of digitization or standardization means inspection data is not connected to relevant systems or analyzed to identify return patterns or fraudulent shoppers. 

Creating standardized, digitized SOPs for each product will speed up the inspection process and provide retailers with invaluable data on the state of returns for their brand.

Getting Started with Returns Automation 

Returns are hard. They are complex and costly. Still, a seamless returns process is a nonnegotiable for many shoppers. While most retailers have prioritized the shopper experience, it’s time also to consider profitability. How much money and stock are you losing to returns every year? How many of your shoppers are taking advantage of your return policy at the expense of your profit margins? How bogged down are your warehouse workers with manual returns processes? 

At PackageX, we help retailers reshape their logistics workflows to multiply efficiency at warehouses and stores. To learn how our solutions can help you incorporate automation into your reverse logistics workflows, speak with our Sales team. 

In the ever-evolving landscape of inventory management and logistics, two prominent technologies have emerged as frontrunners: Radio-Frequency Identification (RFID) and barcodes. Both offer unique advantages and applications, and businesses grapple with deciding which technology aligns best with their needs. 

This article explores the origins, evolution, and applications of RFID and barcodes, shedding light on how they compare in the dynamic realms of inventory management and logistics.

The historical roots: RFID's warped journey

RFID, originally deployed during World War II as Identify Friend or Foe (IFF) technology, was critical in distinguishing allies from enemy aircraft. Post-war, the concept of "serious" changed, and commerce emerged as a major player in the global arena. 

As the World Trade Organization reports a staggering 4500% growth in world trade volume from 1950 to 2022, efficient inventory management became paramount.

On the other hand, barcodes, a newer and more cost-effective alternative, gained prominence in the retail sector just before the substantial surge in global trade during the 1990s. The United States mandated the use of UPC barcodes for inventory management, establishing barcodes as the go-to technology for affordable and efficient inventory control.

RFID's resurgence in retail: a pricey proposition

Around 2005, major retailers like Walmart embraced RFID technology for inventory management, while others utilized it primarily for theft control. However, the adoption of RFID faced hurdles due to its exorbitant costs. 

RFID tags tailored for logistics and supply chain management can range from $20 to $50 or more per tag. This cost factor has led businesses to explore alternatives, particularly in a burgeoning market and an expanding array of products.

The rise of computer vision: barcodes as a viable solution

In response to the challenges posed by RFID costs, logistics professionals were looking for a sustainable way too make barcode scanning more reliable, accurate, and future-proof. The spotlight shifted toward computer vision technology. This innovative and holistic approach involves reading barcodes, identifying parcels based on shape and size, and instantly acquiring additional information, such as bill of lading slips. 

Unlike RFID, which relies on expensive tags, computer vision leverages existing information on the product or packaging and using machine learning and AI to interpret that data in the way a human would. 

One notable player in this space is Radar, a technology company at the forefront of integrating computer vision and RFID for in-store inventory management. This hybrid solution aims to provide the advantages of RFID without the exorbitant costs. Currently deployed in 500 American Eagle locations, Radar represents a promising step towards the practical integration of these technologies.

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Bridging the gap: A practical vision for logistics

While RFID holds promise for in-store applications, solving logistics challenges with RFID remains a costly and complex endeavor. The supply chain industry is rallying behind barcodes as the standard for inventory tracking, making adopting and maintaining RFIDs costly and confusing. The implementation would necessitate unanimous agreement across the entire supply chain, from manufacturers to shippers to sellers. In contrast, a more pragmatic approach involves visually identifying items and bypassing the expensive RFID step altogether.

By combining the familiarity and cost-effectiveness of barcodes with cutting-edge computer vision technology, retailers can connect relevant data fields to barcode identifiers to achieve a seamless and more integrated inventory management experience. This approach feeds data into a sophisticated vision AI model tailored specifically for logistics, offering a compelling alternative to high-cost RFID solutions.

In conclusion, RFID and barcodes each bring distinct advantages to the table regarding inventory management and logistics. While RFID has its merits, the prohibitive costs and logistical challenges associated with its widespread adoption make it a less feasible solution for the broader supply chain. 

The synergy between barcodes and computer vision technology emerges as a practical and cost-effective approach, providing businesses with the tools needed to navigate the complex landscape of modern commerce. However, as technology advances, the choice between RFID and barcodes will ultimately hinge on each business's specific needs and priorities.

RFID has its roots in helping allies win WWII while barcodes were specifically designed for retail after the war. Despite the RFID hype in retail, barcodes — combined with computer vision — continue to offer a more efficient solution to managing inventory and logistics.

#logistics #supplychain #technology

In logistics, few processes are as crucial as yard management. This umbrella term refers to various activities within a facility's yard, including the scheduling, coordinating, and directing of assets.

However, as with most logistics and supply chain elements, effective yard management is not as easy to execute as it is to define.

To track and transport freight effectively, future-proof yard management must focus on reducing delays, improving visibility, and automating processes.

This is where yard management service comes in. This software enhances yard operations and improves customer experiences, a critical component of last-mile logistics. 

To truly understand its importance, we must first examine the current state of yard management and its challenges.

Yard Management: An Overlooked Link in the Supply Chain

A recent surge in ecommerce, coupled with customers' ever-rising expectations, has placed immense pressure on the supply chain to deliver more items more quickly.

While transport and warehouse management are prioritized, yard management—the crucial link between the two—is often overlooked. Nearly 60% of the 2023 State of Yard Management survey respondents said only a fifth of their facilities had an effective system in place.

This lack of investment in yard management services and reliance on manual processes has led to many inefficient practices. It has also proven to be the most significant barrier to ensuring on-time deliveries and maintaining customer satisfaction.

Yard management strategies are poised to see significant advancements in the near future. McKinsey recently identified digital yard management as one of the technologies beginning to scale in transport and logistics.

Until then, yards will continue to be plagued by by outdated processes.

Challenges in Yard Management

Yard management involves overseeing the flow of inbound and outbound freight, organizing the movement of trucks, scheduling loading and unloading operations, and tracking and moving assets.

The broad scope of activity and complex processes have led to the following challenges:

Gate Congestion

Gate management is plagued with inefficient practices. Manual check-in and check-out processes, wildly outdated and impractical in the digital age, leave drivers waiting in long queues daily, especially during peak hours and seasons. This is a massive waste of time and fuel—two of the most critical resources in logistics and shipping.

Over time, even minor delays add up, leading to lost productivity, missed delivery times, and unhappy customers.

Time-Consuming Asset Tracking

Yard managers and logistics experts are expected to conduct routine inventory checks. They must know exactly how many trucks are entering the facility and identify which trucks will be loaded and unloaded with which items. These complex tasks are carried out manually without modern IoT-enabled asset tracking systems—including Radio-Frequency Identification (RFID) or GPS-based tracking devices. This is incredibly time-consuming and prone to errors.

If perishable goods are involved, delays in asset tracking could result in spoiled inventory, which is a massive waste.

Long Dwell and Detention Times

Poor yard management practices, such as inefficient staffing or scheduling issues, lead to long dwell times, where cargo containers or trailers are kept at terminals or gates. If left unchecked, these dwell times lead to detention fees, usually passed down to the customer.

A 2018 study found that the successful reduction in dwell times could increase transportation capacity by 2% to 4%. It also showed that long dwell times pose a safety concern, as more fatigue among drivers was linked to a 6.2% increase in accident rates.

Ineffective Dock Management

Difficulties in coordinating the unloading and loading of freight at the dock, as well as delays in locating empty trailers, are also common yard management problems that lead to increased congestion. Manual processes are often the culprit—scheduling appointments and allocating staff becomes incredibly challenging without a cloud-based solution to coordinate all yard activity. 

Lack of Visibility

Limited visibility of trailers, personnel, and equipment is a severe challenge in yard management, leading to increased delays, errors, and security risks.

With real-time operational data on the movement and location of various assets, workers can efficiently prepare to load and unload trucks, keep track of parking spaces, or allocate personnel. This can result in the arrival of unanticipated trucks or congestion at the gates. A lack of visibility leads to frustrated drivers and yard workers.

Optimizing efficiency and increasing visibility requires real-time operational data and proper tracking tools, as provided by a robust yard management service.

Compliance

Ensuring compliance with various industry regulations and safety protocols is another challenge that yard teams must face. Failure to comply will lead to penalties, disruptions, and increased safety risks.

With limited access to real-time data, teams struggle to promptly address compliance issues, including overseeing trailer inspections, identifying load limits, or ensuring loading and unloading procedures are up to the mark. The lack of digital tracking tools makes ensuring that all drivers meet the required standards difficult.

How Yard Management Service Can Save the Day

Yard management service is the ultimate solution for the challenges outlined above. Cutting-edge cloud-based software can automate and optimize many elements of yard management, such as tracking all assets, minimizing delays, maximizing resources, and ensuring satisfied staff and customers.

An effective yard management system also seamlessly integrates with existing warehouse management systems, transport management systems, and enterprise resource planning systems (ERPs) to improve team collaboration and ensure a seamless supply chain. Here are some features a yard management solution is typically known to offer:

Real-Time Visibility of Yard Assets

Three out of four respondents on a 2023 State of Yard Management survey reported that improving visibility was their top priority in the near future.

Advanced yard management software provides increased visibility into all operations and processes. By gaining access to real-time data on locations, capacities, and the utilization of resources—including personnel, equipment, and storage areas—yard managers can effectively minimize bottlenecks and reduce dwell times.

Real-time communication and information sharing, as offered by a yard management service, also optimizes resource management while significantly increasing worker productivity.

Increased visibility also allows managers to identify potential risks, thus minimizing accidents and ensuring worker safety. At the same time, real-time monitoring of personnel and equipment reduces the risk of theft and property damage.

Automation of Gate Management

Effective yard management service can also streamline gatehouse management. Electronic documentation ensures smooth and seamless arrivals and departures so guards can effortlessly direct trucks and trailers to a designated area based on their inventory. This level of automation significantly reduces the workload of warehouse staff.

Apart from improving wait times, effective yard management contributes to the accuracy of gate procedures and minimizes the risk of human error. Drivers can also leverage self-service options, such as managing digital appointment confirmations and accessing real-time data about parking locations within the yard.

Improved Dock Scheduling

Efficient dock scheduling features also ensure the optimized flow of goods in and out of any facility. Managers can quickly assign doors and manage the flow of trucks from a centralized platform. They can also access and update data regarding dock availability and scheduled shipments in real-time.

Appointment management features can help carriers and shippers identify available time slots and self-schedule appointments. Based on the dock door’s status, the logistics team can efficiently allocate resources, coordinate labor, and schedule inbound and outbound shipments.

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Reporting and Analytics

Yard management service allows managers to extract vast amounts of data and turn it into actionable insights.

Critical KPIs and metrics are easily tracked through comprehensive reports and intuitive dashboards. These can range from gate metrics (e.g., number of transactions by load type or number of transactions by status) to equipment metrics (e.g., number of shipments by day of the week) and beyond. Data can be used to identify patterns and correlations within yard operations, unlocking the power of predictive analysis.

By making more data-driven decisions, yard managers can more effectively optimize yard layouts, manage and allocate staff, and fine-tune their daily operations. 

Undoubtedly, yard management service is indispensable for logistics professionals looking to increase efficiency, reduce costs, and make the most of their operations. The scalability of such a solution also ensures that it won’t be long before advanced technologiesan be leveraged to automate operations completely.

Streamline First-to-Last Yard Logistics with PackageX

When yard management practices meet PackageX, the results are revolutionary.

Teams that employ PackageX’s cloud-based first-to-last-yard logistics platform are empowered with real-time visibility to streamline yard management practices and the rest of their inventory management operations. PackageX has helped hundreds of enterprises digitize inventory, fulfill orders, ship, and manage operations with its developer-friendly APIs and modular suite of mobile and web apps.

The PackageX platform increases productivity, reduces supply chain complications, and reduces operational costs, all while improving customer and employee experience.

Keeping track of inventory is a mammoth task. Most organizations, whether they operate as business-to-business (B2B) or business-to-consumer (B2C) enterprises, need to monitor the location of goods through the supply chain constantly. This requirement becomes more crucial in storage facilities such as warehouses and fulfillment centers, where significant volumes of goods are stored collectively.

The old-fashioned method of maintaining paper ledgers to keep inventory records has proven inadequate to the demands of today’s fast-paced business environment. Companies need a much more efficient method of logging and tracking inventory as it moves through their supply chains. A barcode inventory system is the answer, and this article will explore how it can positively impact a business.

Barcodes: The answer to inventory tracking woes

In modern-day logistics, barcodes are the backbone of inventory management. These scannable symbols can be found wherever goods are stored and traded. From singular pieces of fruit at the local supermarket to enormous aircraft components in a factory, barcodes serve as a universal method for labeling inventory, enabling convenient tracking mechanisms.

All a business has to do is scan an item’s barcode every time it moves to a new location, and the information is updated in the company database from the warehouse to the point of sale.

Barcodes have been widely used for around 50 years, starting with their introduction to the general public in the 1970s. Advances in smartphone features have made mobile scanning technology widely accessible, thereby prompting even broader use of barcodes for inventory management.  In an interconnected, digital world, both buyers and sellers benefit from barcodes. A 2022 survey of US and UK-based retailers found that 83% of businesses believed offering barcode and QR code scanning apps was crucial to maintaining customer loyalty.

So what do these simple, ubiquitous symbols mean, and how do they help businesses?

What do barcodes signify?

Everyone is familiar with what a barcode looks like. It’s a sequence of broad and narrow black lines on a white background. Lately, QR codes, a newer kind of barcode, have also begun being used more frequently. Both these types of barcodes operate on a similar principle.

Barcodes are designed to be scanned by devices connected to a company’s inventory management system. The hardware scans the pattern of light and dark on the barcode, which encodes a unique sequence of numbers and characters. This sequence is used to identify the product every time it moves along the supply chain.

There are two different categories of barcodes, which are sometimes used in combination by retailers. These are Universal Product Codes (UPCs) and Stock Keeping Units (SKUs).

UPCs are 12-digit codes assigned to companies by the international agency GS1. They are used to identify the manufacturer and the product and remain unchanged regardless of where they are sold. SKUs are barcodes created by retailers for individual products in their inventory. These 8- to 12-digit sequences contain further information about a product’s characteristics and features, giving businesses greater visibility over their inventory.

What are barcode inventory systems?

Barcode inventory systems refer to solutions that use a combination of hardware and software to streamline barcode scanning and package processing workflows. Using a barcode inventory system lets companies trace their goods more easily and achieve higher efficiency in inventory management.

Some of the hardware components of a barcode inventory system are:

• Printers
• Computers
• Scanning devices
• Smartphones

A barcode inventory system’s software component can include:

• Automated inventory management systems
• Warehouse management software (WMS)
• Additional infrastructure like third-party application programming interfaces (APIs)

These components work together to create an accurate inventory-tracking solution.

However, since barcodes are universal symbols, including every single component is unnecessary. Many elements of a barcode inventory system can be customized to fit the needs of a particular business.

Guide to different types of barcodes

The best way to understand the different types of barcodes is by looking at the two most commonly used examples: linear barcodes and QR codes. While both types serve the same purpose of conveying information about a product, QR codes represent a step up from linear barcodes because they have the capacity to hold more detailed information.

What sets the two types of barcodes apart is that linear barcodes are one-dimensional (1D) barcodes, while QR codes are two-dimensional (2D) barcodes. 1D barcodes are seen on nearly every manufactured product and allow scanners to identify information about the product. 2D barcodes can include even more detailed information, such as website pages and media links, and can be printed in different sizes while retaining the ability to be accurately scanned.

The commonly seen 1D barcodes include:

• Code 39
• Code 93
• EAN-13
• EAN-128
• UPC-A
• UPC-E
• USPS IMB

Apart from QR codes, other kinds of 2D barcodes include:

• Aztec
• Data Matrix
• GS1 Databar
• MaxiCode
• PDF-417

Each type of barcode has its own limitations on the number of characters and information they can contain. Businesses looking to implement a barcode inventory system should conduct an analysis to see which barcode type best suits the nature of their inventory.

Five benefits of using a barcode inventory system

Barcode inventory systems are designed to streamline inventory management by reducing the amount of effort while increasing the amount of useful data. When paired with robust WMS and inventory management, barcode inventory systems can significantly benefit an organization. Organizations that can effectively implement a barcode inventory system can expect to enjoy improved performance in five key areas.

1. Higher accuracy

Since barcode inventory systems connect directly to automated inventory management software, they greatly reduce the chances of incorrect information entering the database. With barcode inventory systems, there is no need to persist with error-prone processes like manual data entry.

2. More reliable

Barcode inventory systems are fairly easy to use. Training employees to operate a barcode inventory system is much easier than expecting them to perform error-free manual data entry. Using barcode inventory systems reliably increases the speed and efficiency of a company’s goods moving through its supply chain.

3. Efficient data collection

Barcode inventory systems boost an organization’s data-gathering capabilities. Scanning product barcodes as they move locations lets companies take stock of their inventory in real-time. Access to timely information also helps businesses plan their stock levels to meet fluctuating demand and dynamic market conditions.

4. Reduce processing errors

All UPC barcodes have an interesting feature known as the “check digit.” This special character is included in the sequence to ensure the code was scanned correctly. It’s a feature that helps workers avoid preventable errors, like incorrectly scanning an item.

5. Conduct data-driven analysis

Logistics is a data-driven exercise. With barcode inventory systems, companies can gather useful data about their products at every stage, from receiving goods at warehouses to last-mile delivery to customers. This data helps to further optimize logistics operations and achieve greater levels of efficiency.

Challenges of implementing a barcode inventory system

Barcodes are extremely helpful in optimizing inventory tracking operations. However, choosing the right barcode inventory system and implementing it can be challenging for organizations if they aren’t prepared. Here are some common hurdles businesses face when adopting a new barcode inventory system.

Requires considerable set-up

Even though the key selling point of barcode inventory systems is how they save time and boost efficiency, getting them up and running is time-consuming and labor-intensive. Appropriate barcodes have to be printed and applied to every product, which can be a drawn-out process without automation.

Remains susceptible to employee error

If the barcode inventory system is being operated by a human employee and not automated software, it is impossible to altogether remove the possibility of human error. Something as simple as an employee forgetting to scan an item while processing it could lead to confusion in the inventory tracking system.

Initial investment costs

There are considerable costs associated with owning the devices and software licenses required to build a barcode inventory system. Businesses must be prepared to bear the initial costs. Alternatively, businesses can outsource operations to a third-party logistics (3PL) company.

Hardware and software compatibility

Since barcode inventory systems rely on specialized devices and programs, there is a chance that a customized solution could be made redundant due to incompatibility between the hardware and software. Companies should take the time to research every component and platform they will integrate into their barcode inventory system to ensure they work well together.

Data accuracy

If the barcodes are damaged during transport, the barcode inventory system could misread the information or fail to capture data accurately.

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Countering The Limitations of Traditional Barcode Scanning Systems with Computer Vision 

The market is saturated with handheld and fixed-mount barcode scanning options that scan and capture barcodes. As technology has advanced, why haven’t traditional barcode scanners evolved to do more than simply capture codes? The technology used for ingesting barcode data should help logistics professionals achieve their goals: simplify workflows, process inventory faster, and improve data accuracy.

Computer vision is a game-changer for barcode verification because it dramatically improves the effectiveness and accuracy of barcode verification while simultaneously connecting the barcode data with relevant inventory data. With computer vision, machines will ingest and interpret visual data from a label through image processing techniques that mimic human vision. Instead of taking in one piece of data (the barcode), computer vision can ingest all the data from a label and use artificial intelligence and machine learning to detect trends, forecast, improve fulfillment workflows, and more. This can help businesses avoid many inventory challenges, including: 

• Siloed & disconnected data - With only barcodes being scanned, barcode data can not be automatically ingested alongside other important fields like invoice number, ref number, and more. With computer vision, all this data is ingested with one image capture and used to optimize downstream processes, including sorting, storage, transportation, shipping, and more. 
• Time Lost to Manual Entry - Many businesses use barcode scanning technologies and feed that barcode data to manual processes for tracking inventory, updating records, or sorting goods. Computer vision automates data entry processes using cameras and advanced algorithms. 
• Lack of Integrability with necessary systems: Extra steps will need to be taken to integrate barcode data from traditional barcode scanning systems with essential warehouse software like ERPs and WMSs. Computer vision can be used with flexible APIs to retrieve and send information to and from a warehouse’s current systems.

Streamlined barcode scanning solutions for businesses

3PL companies like PackageX provide complete solutions for inventory management, including barcode scanning and stock-taking functions. The PackageX inventory management software goes beyond traditional bardcode scanning methods and uses optical character recognition (OCR), a subset of computer vision, to read linear barcodes and QR codes. With the Packagex OCR API, employees can feel empowered to turn any smartphone into a powerful scanner fueled by machine learning trained on more than 10 million labels. Request a demo to learn more about the OCR API and find out if it is right for your team.

The shipping warehouse has become an integral part of modern logistics. It works as a command center, built for speed, precision, and adaptability. As consumer demand increases and delivery windows shrink, businesses are rethinking how goods move from the shelf to the doorstep.

The global warehousing and storage industry is expected to grow at a compound annual growth rate (CAGR) of 5.7%, reaching an estimated value of USD 1,012.43 billion by 2030. These stats highlight the power of smart automation, tighter supply chains, and the rising need for real-time control in warehouse shipping operations.

From AI-driven inventory management tools to robotic sorters, today’s shipping warehouses are lean, fast, and future-proof. Whether handling e-commerce returns or high-volume fulfillment, a modern shipping warehouse has become essential.

What Is a Shipping Warehouse?

A shipping warehouse is a dynamic hub where goods are received, sorted, packed, and shipped to their final destinations. Acting as a vital bridge between production and delivery, these warehouses streamline the warehouse shipping process to ensure orders reach customers quickly and accurately.

Unlike traditional storage facilities, a modern shipping warehouse is designed for rapid fulfillment. It supports high-volume order processing, real-time inventory tracking, and optimized routing to keep pace with fast-moving supply chains.

Shipping warehouse vs fulfillment center

Though both are used in order fulfillment, there is a clear distinction between shipping warehouses and fulfillment centers. While both serve as storage facilities, each has different logistical purposes.  The critical differences between shipping warehouses and fulfillment centers are as follows:

• Shipping warehouses are meant for medium- to long-term storage, while fulfillment centers are designed for short-term storage.
• Shipping warehouses are designed to store inventory, and fulfillment centers are created to process customer orders quickly.
• Shipping warehouses typically schedule pick-ups at regular intervals, but fulfillment centers may have multiple order pick-ups on the same day.

With the distinction between these two storage facilities clarified, the next topic is the various types of shipping warehouses that businesses can utilize as storage solutions.

Key Functions of a Shipping Warehouse

A modern shipping warehouse functions as a fast-moving hub that connects suppliers, businesses, and customers through a chain of tightly coordinated tasks.

Here’s a breakdown of its core functions:

1. Receiving and Storage
Every warehouse begins with receiving, where incoming shipments are checked for accuracy and damage. Once verified, goods are stored efficiently to allow quick retrieval and reduce handling time.

2. Inventory Management
Smart warehouse shipping software keeps track of inventory in real time, reducing errors and helping avoid overstocking or stockouts. This level of visibility is crucial for an agile supply chain management.

3. Order Fulfillment
When orders come in, the warehouse picks, packs, and preps them for dispatch. In fast-paced environments, automation ensures accuracy and speed in every step.

4. Shipping and Distribution
The core of warehouse shipping is timely delivery. Shipping warehouses coordinate with carriers, optimize routes, and handle documentation to ensure goods reach their destination quickly and cost-effectively.

5. Additional Services
Many shipping warehouses also offer extras like labeling, kitting, or light assembly, helping brands customize the final mile and enhance customer experience.

How the Shipping Process Works Step-by-Step?

Here’s how the warehouse shipping and receiving process unfolds step by step, often managed with advanced warehouse shipping software:

1. Order Placement & Processing

It all begins when a customer places an order, online, in-store, or through a B2B portal.

• Order Verification: Payment is confirmed and inventory is checked in real time.
• Inventory Updates: The warehouse for shipping syncs its inventory data to ensure accurate stock levels.
• Order Prep: Items are queued for pick and pack fulfillment using warehouse and shipping services.

2. Packaging & Labeling

• Packing Materials: Durable boxes, wrapping, and inserts are selected to ensure damage-free delivery.
• Labeling: The system prints shipping labels with tracking info, recipient details, and carrier barcodes, all automated through warehouse shipping software.

3. Customs Clearance (for International Orders)

• Export Compliance: Required documents, such as invoices and shipping manifests, are submitted as part of the broader invoice management and shipping compliance process.
• Import Clearance: Customs at the destination reviews and approves the shipment before release.

4. Transportation & Tracking

• Carrier Booking: A suitable shipping partner (FedEx, UPS, freight) is selected.
• Transit Begins: Packages leave the fulfillment warehouse shipping dock and hit the road, sky, or sea.
• Live Tracking: Customers and sellers track progress via digital dashboards or API feeds.

5. Final Delivery

• Arrival & Inspection: The shipment reaches the local hub and is inspected.
• Last Mile Delivery: Couriers make the last mile delivery to the customer’s door, the most critical and time-sensitive part of the process.

When streamlined with the right tools and systems, warehouse and shipping services turn logistics into a competitive advantage.

Types of Shipping Warehouses

There are various types of warehouses, and each one functions in a distinct way that makes it a good fit for certain kinds of products and businesses.

There are six main types of warehouses businesses can use to store goods:

1. Public Warehouse

One of the most cost-effective warehouse and shipping services is a public warehouse. This is a government-owned facility where individuals and private companies can rent storage space for their items.

The biggest benefit of using public warehouses is that they offer some of the most affordable rates.

2. Private Warehouse

Many companies and private organizations build and manage their own facilities. These are privately owned and usually used to store the proprietor’s goods.

Most private warehouses are equipped with warehouse shipping software and automation tools. They can provide full-service logistics, making them ideal for businesses with consistent volume and the need for an integrated warehouse for shipping control.

3. Cooperative Warehouse

When ownership of a warehouse is divided among a group rather than one company, it is called a cooperative warehouse. Members of the group can use the warehouse space at a discounted rate.

For example, a local farmers' collective may share a warehouse to store seasonal crops before distribution. This setup supports shared warehouse and shipping services at lower cost.

4. Bonded/Duty-Free Warehouse

A bonded or duty-free shipping warehouse is ideal for businesses that deal in imported goods. These facilities are approved by customs to store foreign goods without paying duties or taxes upfront.

Companies often use these warehouses to hold inventory until the exact moment of dispatch, streamlining international warehouse shipping and compliance.

5. Consolidation Warehouse

Some businesses don’t move enough volume to justify an entire warehouse. These organizations use consolidation warehouses to store goods until shipment.

By combining multiple shipments, businesses save money on transport. This is a common practice in fulfillment warehousing, especially for smaller retailers or B2B suppliers.

Key Technologies Used in a Shipping Warehouse

Running a modern shipping warehouse demands smart systems that move fast, think faster, and work around the clock. Here are the key technologies powering today’s warehouse shipping and receiving operations:

• Conveyor and Sortation Systems
  These systems move products quickly through the warehouse. Items are sorted based on destination, size, or order type. This helps reduce delays and cuts down on manual errors across fulfillment warehouse shipping tasks.
• Automated Storage and Retrieval (AS/RS)
  AS/RS systems use machines to store and retrieve items. They save space, speed up picking, and help scale warehouse for shipping needs without adding labor.
• AGVs and AMRs
  Automated Guided Vehicles (AGVs) follow set paths. Autonomous Mobile Robots (AMRs) move freely and adapt on the fly. Both handle internal transport and boost efficiency in warehouse and shipping services.
• Warehouse Management Systems (WMS)
  Modern warehouse management software keeps everything in check. WMS platforms track inventory, manage orders, and guide operations with real-time data.
• Assisted Picking Tools
  Pick-to-light and voice-picking tech help workers move faster with fewer mistakes. These tools are essential for fast-moving warehouse shipping operations.
• Robotic Packing Systems
  Packing robots seal boxes, apply labels, and prep shipments. They help shipping warehouses process more orders in less time.
• RFID Technology
  RFID tags let teams track items without manual scans. That means better visibility and fewer lost items across the entire warehouse shipping and receiving workflow.
• IoT Devices
  Sensors track temperature, humidity, and equipment use. This data helps avoid downtime and improve output in any busy shipping warehouse.
• AI and Machine Learning
  Smart algorithms predict demand, optimize space, and even plan AGV routes. These tools turn a basic warehouse for shipping into a well-oiled machine.

Benefits of a Shipping Warehouse

Following are the proven advantages of a shipping warehouse:

• Lower Costs
  A well-run warehouse for shipping helps cut overhead. Bulk storage and automation reduce labor and handling expenses. With warehouse shipping software, you can avoid costly errors and delays.
• Faster Shipping and Delivery
  Speed matters. A fulfillment warehouse shipping setup gets products out the door faster. It shortens delivery times and meets rising customer demands.
• Better Inventory Management
  Warehouse shipping software gives you real-time tracking. You know what’s in stock and what’s not. It keeps your supply chain tight and responsive.
• Happier Customers
  A smooth warehouse shipping and receiving process means fewer mistakes. Orders go out right and on time. That keeps your customers coming back.
• Scalability
  Modern warehouse and shipping services can scale fast. Whether you’re shipping ten orders or ten thousand, smart systems adapt.

Why Smart Warehouses are the Future of Shipping Operations?

Smart warehouses are going to redefine the industry in the coming years. The rate of technology adoption in warehouses is steadily increasing, and by 2027, the warehouse automation market is projected to reach a global value of $41 billion.

Transforming traditional shipping warehouses into smarter versions via automation and robotics allows these warehouses to function as more than mere storage facilities. Smart warehouses create a data-driven logistics environment where key metrics can be tracked to gain valuable insights that add business value.

When implemented correctly, smart warehouses boost efficiency, reduce costs, and afford greater visibility over an organization’s inventory.

Why Choose PackageX for Smarter Warehouse Shipping?

PackageX helps teams manage warehouse and shipping services with speed, control, and simplicity. From first scan to final delivery, it turns a traditional shipping warehouse into a smart, connected system. With AI-driven tools, warehouse shipping software, and ready-to-use logistics APIs, PackageX gives teams full visibility without added complexity.

Here’s how PackageX supports your operations:

• Simplify warehouse shipping and receiving tasks with AI scanning.
• Tracks inventory and orders in real time using warehouse shipping software.
• Connects easily to other systems with out-of-the-box API integration.
• Powers fulfillment warehouse shipping with accurate, fast updates.

PackageX is built for teams that need speed, accuracy, and control. Whether you run a single location or manage multiple shipping warehouses, it delivers the tools you need to grow and adapt.

FAQs

What do shipping warehouses do?

Shipping warehouses receive, store, pack, and ship goods to customers or retailers. They streamline the warehouse shipping process using automation and real-time inventory management tools. These facilities play a key role in modern logistics operations.

What does it mean when your package is at a warehouse?

It means your item is in the shipping warehouse, where it's being sorted, packed, or prepared for delivery. This is a key stage in the warehouse shipping and receiving process. Your order will be dispatched once it's ready for transport.

What is a warehouse shipment?

A warehouse shipment refers to goods being dispatched from a shipping warehouse to their final destination. This process involves order fulfillment, packaging, and coordinating with the carrier. Efficient logistics and inventory management enable timely delivery.

Modern supply chains are under constant pressure to operate faster, leaner, and more accurately. As ecommerce continues to expand, businesses must adapt to rising customer expectations and the demand for seamless delivery experiences.

Traditional warehousing models are mainly reliant on manual processes that are no longer sufficient. Delays, inventory inaccuracies, and inefficiencies can impact performance across the entire order fulfillment network.

In response, organizations are turning to smart warehouse solutions. These advanced systems integrate automation, data analytics, and real-time visibility to improve speed and scalability.

The global warehouse automation market is projected to grow at a CAGR of 15.9% from 2025 to 2034, highlighting a transformative shift in how fulfillment is managed.

For companies, smart warehouses can offer a competitive edge in ecommerce product fulfillment.

In this blog, we’ll explore what smart warehousing is, the technologies behind it, and how it’s reshaping the future of fulfillment.

What Is a Smart Warehouse?

A smart warehouse is a technology-driven facility that uses automation, data analytics, and integrated systems to streamline inventory management and order fulfillment. These warehouses improve efficiency by reducing manual labor and increasing accuracy through connected tools and real-time insights.

Unlike traditional warehouses, which rely heavily on manual processes, smart warehouses often include a warehouse management system (WMS), barcode scanners, and automated sorting systems. They help businesses move products faster, reduce costs, and improve customer satisfaction.

This evolution supports the growing demands of ecommerce and global logistics. It also strengthens the role of third-party logistics (3PL) providers, who integrate smart warehouse systems to deliver faster and more reliable services.

Core Technologies of Smart Warehousing

Smart warehouse technology is reshaping how modern logistics operate. These tools improve speed, accuracy, and control across the supply chain. Here's a look at the essential tech stack behind today’s smart warehouse systems:

• IoT (Internet of Things):
  IoT sensors monitor inventory in real time. They help track stock levels, temperature, and asset location. This enables faster, data-driven decisions.
• RFID (Radio-Frequency Identification):
  RFID tags and readers simplify item tracking. Unlike barcodes, RFID doesn't need direct scanning. It boosts efficiency and reduces theft or loss.
• AI & Machine Learning:
  AI helps forecast demand by analyzing trends and behaviors. ML algorithms adapt over time, improving order accuracy and reducing stockouts. It’s a must-have for smart inventory management.
• Warehouse Management System (WMS):
  A modern WMS offers real-time inventory control. It streamlines receiving, picking, and shipping. Integrated with cloud systems, it provides access from anywhere.
• Automation & Robotics:
  Autonomous mobile robots (AMRs) handle repetitive tasks like picking and moving. This reduces labor costs and improves warehouse flow.
• Cloud-Based Integration:
  Cloud systems unify data across platforms. They enhance visibility and speed up ecommerce fulfillment.

These technologies make order fulfillment more efficient. For businesses scaling quickly, smart warehouse systems offer the agility and precision that modern ecommerce demands.

Smart Warehousing vs. Traditional Warehousing

As supply chains evolve, many businesses are re-evaluating their warehouse operations. A smart warehouse management system offers a clear advantage over traditional methods, especially for those relying on advanced 3PL logistics services.

Below is a structured comparison:

Traditional operations often face challenges with visibility, speed, and scalability. A smart warehouse system addresses these gaps, offering integrated solutions for 3rd party logistics companies seeking to improve performance.

Understanding what a third-party logistics provider needs from warehouse infrastructure makes smart warehousing a strategic advantage in today’s competitive logistics operations.

Benefits of Smart Warehousing

Smart warehouse solutions are changing how companies manage inventory, fulfill orders, and scale operations.

Here are five key benefits driving their adoption:

1. More Accurate Order Fulfillment

Automated systems reduce delays and mistakes. Orders are pick and packed, and shipped with greater precision, improving customer satisfaction.

2. Real-Time Inventory Insights

Smart warehouse management systems offer live data. Teams know exactly what’s in stock, what’s low, and what’s incoming. This cuts down on overstocking and backorders.

3. Cost Efficiency Across Operations

Reducing waste, minimizing errors, and lowering return rates all save money. Smart systems also reduce manual tasks, streamlining workflows.

4. Labor Optimization

Robotics and automation ease repetitive labor. Workers focus on high-value tasks. This balance boosts both speed and morale.

5. Scalability for Ecommerce 3PLs

As ecommerce grows, so does demand. Smart systems support fast growth without any issues. That’s why 3PL experience matters in this space.

Challenges in Implementing Smart Warehouse Solutions

Transitioning to a smart warehouse system comes with its own set of challenges. Here’s what to expect, and how to manage it.

1. Upfront Investment

Cost is one of the first barriers. Smart systems, automation tools, and sensors require capital. For many businesses, especially smaller ones, this can feel like a major leap. But over time, these tools can improve accuracy and reduce waste, leading to long-term gains.

2. Workforce Training

Employees may need to learn new systems and workflows. Adopting smart warehouse tools often changes how day-to-day tasks are done. Without proper training, there’s a risk of slow adoption or errors. Investing in support and onboarding is key.

3. System Integration

Smart warehouse management tools don’t work in isolation. They need to connect with ecommerce platforms, WMS software, and other tools already in place. A skilled third-party logistics company can help bridge these systems for smoother operations.

4. Data Security and Compatibility

Smart warehouses rely on data. That means protecting it is essential. Compatibility with existing systems and blockchain technology measures must be in place. A trusted third-party logistics provider can offer both the infrastructure and support to handle this.

How to Transition to a Smart Warehouse?

Moving to a smart warehouse is a simple process. Here's a simple step-by-step roadmap:

1. Audit Your Current Operations

Start by assessing workflows, tech gaps, and fulfillment delays. Identify what’s slowing you down.

2. Set Clear Goals

Define what success looks like: faster picking, better inventory control, or smoother 3PL logistics services.

3. Choose a 3PL Provider

Partner with a 3PL provider that understands automation, integrations, and smart warehouse solutions. Look for real-time inventory data visibility and proven experience.

4. Evaluate Your Tech Stack

Check if your systems can support smart tools like WMS, IoT, or AI. Upgrade what’s outdated.

5. Roll Out in Phases

Start small. Test and refine before scaling across all operations.

6. Track KPIs Consistently

Measure order accuracy, lead times, and storage efficiency. Adjust based on data.

Working with the right partner, one that knows what a 3PL logistics company should makes all the difference.

The Future of Smart Warehousing

The future of smart warehousing is efficient, connected, and data-driven. As predictive automation continues to advance, warehouse systems will operate based on real-time data, improving speed and decision-making accuracy. Autonomous technologies will handle core tasks such as picking, packing, and material movement with minimal human involvement.

Sustainability will become a key focus. This includes energy-efficient infrastructure, optimized space utilization, and reduced inventory waste.

End-to-end logistics integration will also be essential. Smart warehouse technology will connect seamlessly with transportation, demand forecasting, and fulfillment systems to create a unified logistics environment.

As companies grow, many will turn to 3PL fulfillment companies to support this shift. Compared to 4PL models, 3PLs maintain greater operational control while still delivering scalable and agile solutions.

Why Choose PackageX for Smart Warehouse Solutions?

PackageX gives warehouse and fulfillment teams the tools they need to operate smarter, faster, and with greater accuracy. As a modern third-party logistics company, we combine smart automation with real-time visibility, making your logistics operations easier to manage and easier to scale.

From order tracking to inventory control, our platform simplifies fulfillment across every smart warehouse location.

Here’s how Package X helps:

• Real-time inventory visibility through one smart warehouse system.
• Fast, accurate order fulfillment powered by automation.
• Seamless WMS integrations with your existing workflows.
• Built-in flexibility for ecommerce brands and multi-location operations.
• Trusted support from a seasoned 3PL logistics provider with industry experience.

Get a demo and see how Package X can help transform your warehouse into a smart logistics hub.

FAQs

What are the three types of warehouses?

The three main types of warehouses are public warehouses, private warehouses, and smart warehouses. Public and private warehouses serve traditional storage needs, while smart warehouses use automation, IoT, and data-driven systems to optimize fulfillment. 

What are the advantages of smart warehousing?

A smart warehouse improves order accuracy, inventory visibility, and operational efficiency through advanced technologies like RFID, AI, and robotics. These systems reduce manual errors and enable faster ecommerce fulfillment, making them ideal for modern 3PL logistics services. 

What is a smart logistics system?

A smart logistics system integrates AI, smart warehouse technology, and data analytics to automate supply chain operations. It enables real-time tracking, predictive decision-making, and seamless coordination between warehouses, carriers, and customers.

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In today's era, online shoppers are spoiled for choice. With the Internet, they can browse and buy from any company or store worldwide. Once they’re ready to make a purchase, they select from a range of shipping methods, from same-day delivery to those that could take up to 15 days. Offering customers a range of shipping options is necessary for ecommerce retailers who want to remain competitive.

Anyone who runs an ecommerce business knows that shipping costs significantly impact profit margins. Thanks to the trends set by large companies like Amazon, two-day delivery has become a standard expectation in online retail. But, not every shipping method needs to prioritize speed over profit.

For online businesses looking for an order fulfillment method that can lower their shipping costs and increase their profit margins, it is worthwhile to consider offering economy shipping.  

Is economy shipping a cost-effective solution?

In the realm of delivery options, economy shipping stands out. It defies the norm of offering customers faster delivery times and prioritizes affordability over speed. Put simply, economy shipping is the most cost-effective way to deliver goods to customers.

Unlike express shipping, economy shipping uses less expensive modes of transportation like roads or waterways. While this increases shipping times, it lowers fuel costs and eliminates the need to send orders before the truck or shipping container reaches full capacity. This method, known as full truckload (FTL) shipping, also lets a company fulfill more orders with a single shipment, bringing down their shipping costs per order.

Though economy shipping is an attractive option when considering costs, it’s not suitable for every product type. Goods that are required urgently, like medical supplies, or those with a short shelf-life, like food products, should never be sent via economy shipping. The longer delivery times in this method mean the goods could deteriorate or be damaged before reaching the customer.

On the other hand, economy shipping is ideal for sending out bulky, durable packages that aren’t time-sensitive. Goods like furniture, home appliances, and artwork are prime examples of products that can survive the longer delivery timelines involved in economy shipping.

Businesses considering adopting economy shipping as a fulfillment method must ensure it is the right fit for their products. They should compare the benefits of using economy shipping over other shipping methods before deciding.

Economy shipping vs. other shipping methods: Which is better?

As established above, the defining characteristics of economy shipping are lower costs and longer timelines. These features set it apart from most other delivery methods used by ecommerce retailers.

There is also a marked difference between domestic and international shipments sent using economy shipping. Packages shipped within the country will typically be delivered within one to six days, whereas international packages might take at least a week to 15 days to reach the customer.

Here are the ways economy shipping differs from other popular order fulfillment methods:

Economy shipping vs. overnight/expedited shipping

Whether it entails same-day or overnight delivery, expedited shipping is the opposite of economy shipping. This method prioritizes speed above all else and utilizes air transportation, which is inevitably more costly than other modes of shipping.

While packages sent through economy shipping can take days to arrive, customers who opt for expedited shipping expect a wait time of 24 hours or less.

Economy shipping vs. standard shipping

Standard shipping refers to order fulfillment methods that usually take two to three days to reach the customer. When paired with a minimum order value (MOV), standard shipping is the most popular method when offering customers free shipping on their purchases. Compared to economy shipping, standard shipping methods are more agile and could use more modes of transportation.

However, there can be cases where unforeseen delays extend the timelines of standard shipping to four or five days. Considering how economy shipping methods can reach domestic destinations in under five days, there isn’t much difference in timeline compared to standard shipping.

The real differences arise when sending out international shipments, where economy shipping generally takes longer and costs much less.

Economy shipping vs. ground shipping

Ground shipping simply refers to sending packages exclusively by trains or trucks. This is the cheapest and slowest mode of transporting shipments, which makes it similar to economy shipping in many ways. In a domestic context, economy shipping and ground shipping are practically interchangeable. The key difference arises when sending international packages, where ground shipping is often simply not viable for transportation.

The pros and cons of economy shipping

Ecommerce businesses should consider both sides of the equation when deciding on whether economy shipping is a good fit for their needs. While the obvious trade-off is between lower costs and longer delivery times, other pros and cons are also involved with economy shipping.

The key advantages associated with economy shipping are:

• Affordable shipping solution: Economy shipping is the most cost-effective of all the order fulfillment methods. Even if a business has to send out large orders or international shipments to far-flung destinations, economy shipping will not cut too deeply into the profit margins.
• Comparable to standard shipping: For domestic orders, the timelines for economy shipping and standard shipping are fairly similar. When offering customers free shipping, it’s a much more pragmatic choice to use economy shipping instead of standard shipping methods.
• Perfect for bulky and heavy orders: Factors like the size and weight of a package contribute to shipping costs. The greater the package dimensions, the higher the shipping rates. Most of these large packages usually contain durable products that aren’t time-sensitive, so economy shipping is the cheapest way to deliver them compared to any other shipping method.
• Environmentally friendly: As more businesses become conscious of their environmental impact, economy shipping helps reduce their carbon footprint by using methods that consume less fuel and emit fewer carbon emissions.

While it seems convenient, some drawbacks are also associated with economy shipping. These are:

• Unsuitable for some products: Economy shipping is detrimental to businesses selling perishable, fragile, or time-sensitive goods. It’s always better to ensure customers receive their packages in prime condition, so economy shipping should not be used for this category of goods.
• Limited package tracking systems: Unlike expedited and standard shipping, economy shipping usually uses less-detailed tracking systems. Since it is a cheaper service, the buyer and seller both have access to less information, frequently limited to just the location of the package and its status. If tracking a package in real-time is required, consider alternative shipping methods.

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Economy shipping services offered by major carriers

Major carriers offer economy shipping services that can inspire businesses looking to reduce shipping costs. Here’s a list of some of the most popular major carrier economy shipping services for ecommerce sellers:

1. USPS Priority Domestic

For packages shipped within the U.S., the United States Postal Service (USPS) offers a convenient, low-cost shipping service. USPS Priority Domestic is a service where large packages weighing up to 70 pounds and 130 inches in length can be sent. With a starting price of just $7.70 and an estimated delivery time frame of one to three business days, this is a value-for-money service when shipping packages.

2. FedEx Ground

FedEx Ground is a convenient economy shipping service for small and large packages. With shipping rates starting at $9.25 for a three-pound package and going up to even 150 pounds, FedEx Ground can be relied upon to deliver packages within two to seven days.

3. UPS Ground

For economy shipping within a reasonable timeframe, businesses can opt for UPS Ground. Packages sent through this service have an upper weight limit of 150 pounds and cost $19.05 to send a three-pound package from New York City to Miami (a distance of over 1,000 miles!).

The timeframe of one to five days makes this a competitive and economical alternative to standard shipping.

4. DHL Economy Select

Shipping carrier DHL offers sellers access to international economy shipping via its service, DHL Economy Select. Businesses can expect packages to reach their customers within two to five days and will also have the ability to track the package using DHL tracking services.

Pass on the benefits of economy shipping to customers

Economy shipping helps ecommerce businesses save on fulfillment costs. In turn, they can share these benefits with their customers by offering competitive prices while maintaining their profit margins.

For ecommerce businesses that aren’t certain how to set up an economy shipping workflow by themselves, partnering with a third-party logistics (3PL) company is the best solution. 3PL companies like PackageX connect businesses to a network of carriers offering attractive, discounted rates. With PackageX as a partner, businesses can easily convert new customers by adding economy shipping to their offerings.

For buyers and sellers, shipping remains one of the thorniest problems in ecommerce. Retailers must balance two critical components: providing consumers with quick and efficient shipping options while being conscientious of costs.  

But online retailers don’t have to sit back and watch shipping costs cannibalize their profit margins. With certain strategies, shipping packages can be cost-effective. In this article, ecommerce retailers will discover the cheapest way to ship a package and turn what was once a costly necessity into a differentiator.  

Why shipping rates are so important in ecommerce

The ecommerce industry employs various shipping models. A short list of some of the types of methods used by retailers includes:

• Free shipping: Easily the most popular option with customers
• Flat-rate shipping: Where customers pay based on a predetermined rate for every package size
• Expedited shipping: Delivers packages faster than regular shipping, like overnight shipping, at a higher price

Depending on the type of ecommerce business, there are various shipping variations to consider, such as local shipping, international shipping, and same-day delivery. Each of these methods has a different impact on a business. Whether it's a small business or a large corporation, offering customers a range of shipping options is essential for catering to different geographies and needs, contributing to the overall success of the online store. 

Allowing shoppers to select from various shipping models also helps increase conversion rates. A recent survey found that 47% of online shoppers abandon their shopping carts because of unattractive shipping rates.

In 2025, US deliveries are projected to reach an average of 67 million packages, equating to about one package for every five Americans each day. And this figure projected to climb to 498 billion by 2028.

Though free shipping is popular with customers, some retailers might feel differently. However, by introducing a minimum order value (MOV) to qualify for free shipping, businesses can cater to customers’ demands while boosting sales revenue. Regardless of the model they choose, businesses need to evaluate the cheapest way to ship a package.

Factors affecting the cost of shipping packages

An online retailer needs to consider several factors to understand how to reduce shipping and fulfillment operations costs. The final shipping cost is composed of different elements that come together to determine the final price. Let’s look at each of them and how they affect shipping rates.

1. Speed

The most pressing question for retailers is how fast customers expect their packages. Perishable items like food products need to be shipped within a limited timeframe. In contrast, long-lasting products like paintings or books can be shipped over several days. The faster the delivery speed, the more expensive the shipping method is.

2. Distance

To set realistic delivery timelines, online retailers need to be aware of the distance their packages will travel before reaching the buyer. For domestic deliveries, the U.S. is divided into eight shipping zones, and the more zones a package must cross before reaching its destination, the higher the shipping costs.

International shipping is even more expensive since businesses must find a reliable way to deliver their products overseas.

3. Size

The size of a package is directly proportional to its shipping costs: Larger packages have higher shipping rates and vice versa. This variance is because bigger packages take up more space in the holding area of delivery vehicles, limiting the number of packages the carrier can transport in a single trip.

4. Weight

Along with the size of the package, its weight is also an important factor. A set of dumbbells and a feather pillow might be packed in boxes of roughly the same size, but the dumbbells are obviously going to be more expensive to ship. Lighter packages are cheaper to ship since they require less fuel to transport and less manpower to handle.

While these four factors play a crucial role in determining all shipping rates, a few other supplemental factors could add to the cost. Businesses should, therefore, also consider costs associated with shipping insurance, handling fees, and additional surcharges. Online retailers must look into all the hidden fees a carrier might levy when seeking the cheapest way to ship a package.

Popular shipping carriers

The ecommerce industry relies heavily on shipping carriers to fulfill their orders since many small-and-medium-sized online stores do not have the resources to deliver packages themselves. These shipping carriers move a vast quantity of packages across the globe to keep the wheels of ecommerce turning. 

There are several popular carriers to choose from for U.S.-based ecommerce companies. These are:

• The United States Postal Service (USPS)
• United Parcel Service (UPS)
• FedEx

Other smaller carriers are operating in the market, but these are considered the Big Three regarding order fulfillment. One of the cheapest ways to ship a package from these popular carriers is through a third-party logistics (3PL) company that gets attractive deals on an ecommerce retailer’s behalf.

What is the cheapest way to ship packages in 2025?

Once ecommerce retailers understand all the variables involved in determining shipping rates, they can find the cheapest way of shipping. The list below contains details of all the shipping services offered by major carriers that a business can choose from, depending on their package dimensions and delivery timelines.

Cheapest ways to ship based on delivery speed

Delivery timeframes will differ based on the number of shipping methods an online retailer offers and the type of goods they sell. Thanks to the standard set by ecommerce giant Amazon, most customers have come to expect free shipping within two days as a standard service. Suppose a business doesn’t have the resources to ensure order fulfillment within that time frame. In that case, they can either partner with a 3PL company or cut a deal with a shipping carrier to manage deliveries.

Here are some of the services offered by major carriers based on delivery speed:

Overnight shipping

• USPS Priority Mail Express: Costs $24.05
• UPS Next Day Air®: Costs $141.70
• FedEx First Overnight: Costs $193.20

Standard two-day shipping

• USPS Priority Mail: Costs $24.05
• UPS 3 Day Select®: Costs $55.01
• FedEx Express Saver: Costs $62.25

Please note that the rates mentioned for these shipping services are based on the assumption that the package being sent is a standard package weighing four pounds or less.

Cheapest ways to ship small packages

The definition of a “small package” will vary from carrier to carrier. However, most companies classify packages weighing less than five pounds as small. It’s worthwhile to look up a preferred carrier’s guidelines on package dimensions and weights when deciding to ship small packages.

• USPS Retail Ground: Costs $6.25
• UPS Ground®: Costs $19.50
• FedEx Ground: Costs $18.90

Cheapest ways to ship large packages

Only some ecommerce retailers will be dealing exclusively in small packages. In fact, for businesses that sell goods like home appliances, exercise equipment, or other heavy machinery, it’s far more likely that their packages will be either medium or large. Below is a list of the cheapest shipping rates from carriers for large packages that are 50 pounds or heavier.

• USPS Retail Ground: Costs $120.60
• UPS Ground®: Costs $118.69
• FedEx Ground: Costs $115.12

Cheapest international shipping methods

Shipping goods internationally is naturally a more expensive undertaking than domestic shipping. The price will depend on how far the destination is from the business’s fulfillment center. For U.S.-based retailers, shipping to Canada is often the cheapest option.

Many carriers offer international shipping services, varying rates depending on package dimensions and destination. Here is a brief list of international shipping services provided by the major carriers:

• USPS Priority Mail International
• UPS Express Saver
• FedEx Global One Rate Economy
• DHL Express Worldwide
• GlobalPost Economy

Reduce shipping costs with a 3PL partner

One of the easiest ways to optimize shipping operations is to turn to the experts. 3PL companies like PackageX have extensive experience in fulfillment and related logistics operations. Partnering with PackageX to streamline shipping operations can give a business access to the cheapest ways to ship a package, sorted by speed and price. They can also benefit from discounted rates from most major carriers and track all shipments while they are in transit.

Cheap yet reliable shipping options are more accessible than ever with PackageX’s shipping solutions. Visit the PackageX website and request a demo today.

In the fast-paced world of logistics technology, the balance between usability and reliability stands as a critical factor in ensuring seamless operations and customer satisfaction. What happened to Flexport customers last year serves as a cautionary tale, illustrating the potential pitfalls of placing too much emphasis on user interface (UI) at the expense of operational reliability.

The pitfalls of prioritizing sleek user interfaces

Flexport found itself in crisis mode as operational glitches and public drama eroded customer trust just before the 2023 holiday shopping season. 

The supply chain and logistics platform, known for its visually appealing UI, faced skepticism from key clients like Sonos Inc. and Western Digital Corp when its software failed to provide timely notifications about critical issues. For example, one customer discovered that Flexport had outsourced orders to DoorDash which never delivered packages it was contracted to.

While a sleek UI may draw initial admiration, the Flexport case highlights the risks associated with half-baked delivery partnerships and questionable logistics infrastructure. As Flexport tried to reconnect with customers and address concerns, it became evident that balancing usability with reliability is paramount for logistics platforms.

The role of reliability in logistics technology

Reliability is the bedrock upon which successful logistics operations are built. In an industry where timely and accurate information can make or break a business, the importance of a reliable logistics platform cannot be overstated. What does reliability look like in this context?

1. Real-time tracking and notifications

A reliable logistics platform ensures customers have access to real-time tracking information. This not only empowers businesses to monitor their shipments but also enables proactive problem-solving. 

Timely notifications about any deviations or disruptions in the supply chain also enable customers to take corrective actions promptly. For example, if the Flexport customer mentioned above was notified that packages were delayed or never delivered, they could have contacted shoppers instead of shoppers contacting them.

2. Data accuracy and integrity

Accurate and reliable data is the lifeblood of logistics. A platform that prioritizes reliability ensures that the data presented to users is precise and trustworthy. Inaccuracies can lead to shipping errors, misplaced inventory, and dissatisfied customers. Logistics companies must prioritize data integrity to build trust with their clientele.

This means capturing and digitizing data at every touchpoint. Leveraging technologies like barcode scanners and vision AI ensures systematic data recording throughout the supply chain. This approach enhances real-time tracking, enables swift issue resolution, and provides valuable insights for resilient and reliable logistics.

3. Consistent performance during peak times

Reliability is tested during peak seasons, such as the holiday rush. A logistics platform that can consistently perform at optimal levels, handling increased loads and maintaining efficiency, demonstrates its reliability. Flexports challenges heading into the 2023 holiday season underscore the importance of a platform that remains robust under pressure.

Striking the right balance: The PackageX approach

In the competitive landscape of logistics technology, our approach at PackageX revolves around striking the right balance between usability and reliability. We recognize that a visually appealing and intuitive UI is essential for user engagement, but we understand that it should complement, not compromise, the reliability of our platform.

It’s also worth noting that we do something much differently than Flexport. While Flexport aims to help companies manage freight forwarding, we aim to help companies manage end-to-end logistics operations. That said, we always consider the cautionary tales of Flexport and other logistics-related platforms when building PackageX. This has allowed us to create a revolutionary platform for warehouses, retailers, campuses, and carriers.

For these types of companies and other companies that must manage the movement of goods, we built our platform based on the following principles that improve upon the principles adopted by other logistics-related platforms.

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1. An uncompromising user-friendly interface

At PackageX, we prioritize creating a user-friendly interface that streamlines the logistics process. Our platform boasts an intuitive design that facilitates ease of use for both novice and experienced users. However, we ensure that the UI doesn't overshadow the critical functionalities required for reliable logistics operations.

​​In recognizing the dynamic nature of field logistics, it’s also worth underscoring the need for user-friendly and human-error proof applications. In this high-churn position, quick learning curves become essential. We understand this demand and go a step further by advocating for the evolution of field logistics technology. 

Emphasizing the importance of tech that digitizes data and automates workflows, we advocate for solutions that transcend traditional web portals on laptops and desktops. To build trust in data integrity, PackageX champions the use of field logistics apps and robust APIs that seamlessly connect to other systems, ensuring a more efficient and reliable logistics ecosystem.

2. Robust and flexible infrastructure for seamless operations

Behind our visually appealing UI lies a robust and reliable infrastructure. We invest in cutting-edge technology like artificial intelligence to ensure real-time tracking, accurate data management, and consistent performance even during peak seasons.

In addition to our advanced UI and technology, we take pride in our flexible and interconnected logistics infrastructure, promoting the 'chain' concept within the supply chain. Unlike traditional logistics systems that impose rigid structures, we believe in adapting to our customers' operational and evolving needs. 

Recognizing that every business operates differently, we empower our users to leverage pre-built apps or collaborate with us to build logistics tech tailored to their requirements. Whether utilizing our API or SDK for Vision AI, or integrating pre-connected APIs to streamline logistics from inbound to four-wall to outbound, PackageX offers the utmost flexibility to enhance efficiency and accommodate diverse business processes.

3. Sustainable growth strategy

Unlike companies that succumb to the allure of massive venture capital injections and rapid expansion, PackageX adopts a steady growth strategy. We believe in doing things right rather than rushing the process. This measured approach allows us to focus on continuous improvement, ensuring that our platform remains dependable as we navigate the dynamic landscape of logistics technology.

In conclusion, the Flexport crisis serves as a stark reminder of the delicate balance that logistics tech companies must strike between usability and reliability. At PackageX, we believe that this equilibrium is not just achievable but essential for sustained success in the industry.

In the dynamic realm of logistics, the emergence and rapid advancement of Generative Artificial Intelligence (AI) have set in motion a profound transformation, reshaping conventional operational paradigms and elevating supply chain management to unparalleled levels of efficiency and transparency. 

This comprehensive article navigates through Generative AI's extensive impact on logistics, encompassing its evolutionary trajectory, critical components, real-world applications, the compelling business rationale driving its adoption, and the strategic steps pivotal for seamless integration within logistics operations.

Evolution of generative AI in logistics

Initial adoption and utility

The initial adoption of Generative AI in logistics stemmed from its exceptional capacity to leverage data-driven insights, predictive analytics, and sophisticated scenario modeling. This capability empowered logistics stakeholders to accurately forecast demand patterns, optimize routing, simulate diverse supply chain scenarios, and significantly augment decision-making processes. 

Expansion into advanced applications

As Generative AI evolved, its applications transcended beyond predictive analytics and scenario modeling, advancing towards multifaceted functionalities.

• Advanced predictive analytics: Relying on historical and real-time data, Generative AI models evolved to meticulously forecast demand patterns, identify anomalies, and anticipate potential disruptions. This empowered logistics professionals to proactively address challenges and optimize inventory management with precision.

• Synthetic data generation: Generative AI's unique capability to generate synthetic data emerged as a pivotal asset for logistics companies. By conducting extensive simulations, training AI models, and refining strategies without sole reliance on historical datasets, this functionality ensured comprehensive risk assessment and strategy validation, fortifying decision-making capabilities.

• Optimization algorithms: Fueled by Generative AI, sophisticated optimization algorithms emerged as a cornerstone of logistics operations. These algorithms focused on route optimization, scheduling, and resource allocation within logistics networks. They aimed at minimizing operational costs, maximizing efficiency, and orchestrating holistic optimizations across logistics operations.

Components of Generative AI in logistics

Component #1: Diverse generative models and algorithms

Generative AI encompasses a diverse spectrum of models and algorithms tailored for various logistics tasks. Advanced models including Variational Autoencoders (VAEs), Generative Adversarial Networks (GANs), and Transformer models spearhead tasks such as demand forecasting, anomaly detection, and route optimization within logistics, ensuring adaptability and precision in decision making.

Component #2: Synthetic data generation capabilities

Generative AI's proficiency in creating synthetic data empowers logistics companies to conduct extensive simulations, train AI models, and refine strategies without exclusive reliance on historical datasets. This fosters comprehensive risk assessment and strategy validation, amplifying decision making robustness.

Component #3: Predictive analytics for enhanced decision making

Generative AI's predictive analytics capabilities equip logistics professionals with actionable insights derived from extensive data analysis. These insights fuel informed and data-driven decision making across the supply chain management spectrum, spanning inventory, distribution, and procurement.

Component #4: Real-time decision support systems

Generative AI facilitates the development of real-time decision support systems, leveraging AI-generated insights to assist logistics professionals in making swift and informed decisions based on predictive analytics and scenario simulations.

Real-world applications of generative AI in logistics

PackageX uses AI to connect human and digital worlds

At PackageX we employ AI technologies to bridge the gap between structured digital information and the inherently unstructured real-world data within the logistics domain. More specifically, we integrate AI within our logistics cloud, revolutionizing operational efficiency and customer service. 

Optical Character Recognition (OCR) serves as a cornerstone of our AI utilization, where sophisticated AI models are employed to accurately interpret package labels, bills of lading, and various logistics documents. This technology, combined with Natural Language Processing (NLP) and deep learning for information extraction, facilitates the accurate understanding of scanned content, enhancing the precision of data extraction.

AI agents replace truck tracking apps and redundant dispatch calls

At PackageX we’re transforming communication within the logistics ecosystem through our Threads API. This AI-driven platform facilitates effective and streamlined interactions among suppliers, logistics service providers (LSPs), retailers, and consumers through personalized, one-to-one, and multi-party conversations. 

Traditional communication modes involving repetitive inquiries such as location updates, estimated time of arrival (ETA), and shipment details are seamlessly replaced by AI agents operating within the Threads API. These agents engage in natural conversations with truck drivers, extracting crucial information that is then structured into accessible 'threads', eliminating the need for additional tracking apps and fostering a more efficient means of communication across logistics stakeholders.

The Threads API disrupts the conventional tracking paradigm by addressing the disparity between truck drivers' reluctance to be tracked constantly and the requirements of middle-mile recipients like major retailers for accurate truck arrival times. AI agents, functioning as intermediaries between drivers and recipients, offer an effective solution by engaging in periodic conversations with drivers to determine ETAs based on historical data, traffic patterns, and other pertinent factors.

The business case for Generative AI in logistics

According to Bloomberg, the generative AI market is poised to explode, growing to $1.3 trillion over the next 10 years from a market size of just $40 billion in 2022. This phenomenal growth underscores the transformative effect that AI can have in optimizing logistics operations, fostering innovation, and galvanizing supply chain efficiency.

Considerations for implementing generative AI in logistics

What types of companies can benefit from optimizing logistics with Generative AI?

Various companies across industries such as e-commerce, manufacturing, retail, transportation, and supply chain management can significantly benefit from optimizing logistics with Generative AI. Ecommerce entities can expedite order fulfillment and delivery processes, while manufacturers can optimize production schedules and inventory levels. Retailers can better manage stock levels and distribution channels, and transportation firms can enhance routing efficiency.

What's the ROI of implementing Generative AI in logistics?

Improved demand forecasting and inventory optimization as a result of Generative AI further contribute to lower carrying costs and decreased stockouts, consequently boosting sales revenue. Additionally, the reduction in human error and the ability to adapt to dynamic market conditions can lead to significant savings in both time and resources. While the exact ROI can vary depending on the specific use case and implementation strategy, the long-term benefits of improved efficiency and reduced operational expenses make the adoption of Generative AI in logistics a financially sound investment for many companies.

What obstacles do logistics companies face in implementing Generative AI?

Despite its numerous advantages, implementing Generative AI in logistics presents several challenges. One primary concern is data quality and availability. To leverage AI effectively, high-quality, diverse datasets are essential. Logistics companies often grapple with fragmented or incomplete data sources, necessitating data standardization and cleansing efforts. Another challenge is the need for skilled personnel capable of developing and managing AI models. Hiring data scientists and AI experts proficient in logistics operations becomes imperative to deploy and maintain these systems effectively.

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Navigating the integration of Generative AI in logistics

Step 1: Identify integration opportunities

An exhaustive analysis of current logistics operations becomes the cornerstone for pinpointing areas where Generative AI can profoundly boost efficiency, decision-making, and overall operational processes. This involves scrutinizing workflows, data utilization, and resource allocation to identify prime areas for AI integration.

Step 2: Develop a strategic implementation plan

Crafting a comprehensive strategic plan is crucial. This plan delineates clear objectives, scope, milestones, and timelines, all aligned with broader business strategies. By addressing operational challenges head-on, this plan ensures a seamless integration of Generative AI into existing workflows, without causing disruptions to ongoing operations.

Step 3: Forge collaborations with AI solution providers

Strategic partnerships with proficient AI solution providers specializing in logistics are essential. These collaborations streamline the selection and implementation of tailored Generative AI solutions that precisely align with specific operational requirements. These partnerships offer invaluable technical expertise, customization, and seamless integration support.

Step 4: Conduct pilot projects and scale up

Implementing pilot projects stands as a crucial phase. This step allows for the testing of Generative AI solutions in controlled environments before scaling them across broader logistics operations. This iterative process facilitates adjustments, optimizations, and enhancements to maximize the efficacy of AI-driven logistics systems.

By meticulously following these steps, companies can leverage Generative AI to revolutionize their logistics operations, optimizing efficiency and fostering smarter decision-making while aligning with overarching business objectives

When customers shop online, they are primarily seeking convenience. The ability to place orders and receive packages with the click of a button is the crucial factor that has made ecommerce so popular among consumers.

Ecommerce statistics highlight this trend, with survey data reflecting that an overwhelming majority of U.S. consumers— approximately 76% —prefer shopping online. With such a large customer base, there is no one-size-fits-all delivery solution. In fact, some goods and clients require a higher level of attention or what can be termed a ‘luxury’ delivery experience.

In order to meet this demand, retailers need to offer white glove home delivery services, which is commonly known as the gold standard for shipping packages in the logistics sector.

As the name implies, white glove delivery service represents a high-end experience for the customer. Retailers can stand out from the competition and achieve higher levels of customer satisfaction by going above and beyond to offer white glove deliveries.

This article explores the need for white deliveries, how they can benefit sellers and buyers alike, and how ecommerce retailers can offer this service to their customers.

What Is a White Glove Delivery Service?

If you are asking yourself, ‘What does white glove delivery mean?’ The term has its origins in the hospitality industry. Picture servers in an upscale fine-dining establishment: Their immaculate white gloves are a defining element of their uniforms. Since then, ‘white glove service’ has come to represent elevated care and attention toward consumers in any professional service.

In logistics, white glove delivery is a special form of delivery where the package is shipped with an added level of attention to detail and extra care. White glove contracts offer a premium service that offers add-ons like trained package handlers, unpacking, assembly, and installation on top of the white glove last-mile delivery. These complementary features make white glove deliveries distinct from traditional delivery methods— and also contribute to increased shipping rates for the customers.

Special Features of White Glove Delivery Services

Despite the name, no gloves are involved in the white glove delivery service!

Instead, there are a number of processes that need to be incorporated into the logistics operations of a particular company if they want to be able to offer customers white glove deliveries for high-end goods.

Let’s look at the features that set white glove deliveries apart from other, more traditional methods.

Expert Handling

One of the biggest fears ecommerce consumers have is that their packages will be damaged in transit. White glove delivery services eliminate that concern by ensuring packages are handled delicately and with utmost care throughout their journey — from the point of origin to their final destination.

Packers, drivers, and handlers are trained to follow any and all special instructions when it comes to safely handling the package.

Package Processing

With white glove deliveries, there are reduced chances of damaged goods reaching the customer or packages reaching the wrong destination. Every package is inspected to ensure it is in perfect condition before being shipped, and shipping labels are carefully checked so there are no misplaced packages.

Secure Transportation

Items that are fragile, perishable, or both are the most challenging packages to ship. This is because they can leave the fulfillment center in perfect condition but still end up damaged during transportation. White glove delivery uses measures like custom packaging materials, climate-controlled transport vehicles, and specially designed equipment to guarantee the packages are not affected by outside factors during transportation.

Delivery Destinations

Nobody likes carrying a heavy package up a staircase by themselves. White glove deliveries spare customers the effort of picking their package up from their doorstep or mailbox by offering them the option to have it delivered to their preferred destination.

This means delivery executives will bring a package into the customer's home and place it in the room of their choice, safely bringing it through any tight spaces, like narrow hallways and cramped stairs, without inconveniencing the customer.

Installation Assistance

Certain purchases, such as electronic appliances or furniture, require some setting up or assembly after delivery. While traditional delivery services usually leave this up to the customer, white glove deliveries offer the convenience of having trained professionals install the products according to the proper guidelines.

This can be performed either by the delivery executives at the time of delivery or by setting up an appointment with the manufacturer's installation representatives.

Packaging Removal

The white glove delivery experience doesn’t end once the customer’s product has been installed. As a premium offering, white glove delivery also involves clearing out all the packaging material, sparing the customer the inconvenience of cleaning up, and leaving them with a product set up and ready to use.

Personalized Customer Service

Another feature that distinguishes white glove delivery from regular delivery is that every customer receives individual care and attention. This includes having trained professionals who are able to answer any of the customer’s doubts and queries, make the deliveries, and follow any special instructions the customer might have given.

Overall, white glove delivery services are expected to maintain a higher level of professionalism and consideration for the customer’s needs.

Benefits of White Glove Delivery Services

While white glove delivery services are primarily meant to offer customers an elevated experience, they also provide a number of benefits to the retail business that offer them.

Some of these benefits include the following:

1. Better Customer Experience

By offering customers personalized service, letting them schedule deliveries at their convenience, and ensuring they receive their goods in perfect condition, white glove deliveries contribute to creating a positive customer experience.

2. Damage-Free Deliveries

Shipping damaged goods can hurt ecommerce businesses, as they will have to bear the costs for return shipping from upset customers. If a company sells delicate items or goods with limited shelf-life, white glove delivery means it can rest assured that the goods will reach customers in prime condition.

3. Increased Revenue

White glove deliveries remove most of the concerns shoppers have when making online purchases. By assuring customers of top-notch delivery services, ecommerce businesses can increase their conversion rate, fulfill more orders, and draw increased revenue.

4. Reliable Shipping Services

Finally, using a white glove delivery service gives businesses more transparency over the entire shipping process. First, they can track the progress and status of all the packages even while they are in transit. Second, the business can better calibrate its shipping operations for maximum effect.

When Does a Business Need White Glove Delivery?

White glove delivery is a specialized service. Just like it’s not possible to eat caviar with every meal, not every business package justifies the use of white glove deliveries. For ecommerce businesses, there are several factors that need to be considered before deciding to offer white glove delivery services. These are:

• Does the ecommerce store sell delicate, valuable, or specialized items?
• Is the customer base made up of high-end consumers who prefer luxury services?
• Do the products require expert handling and assembly before, during, and after delivery?

If the answer to any of the above questions is yes, then the business can definitely benefit from offering white glove delivery services.

Some products that are best suited for white glove delivery include:

• High-end or expensive electronic appliances
• Valuable and delicate pieces of art
• Specialized medical equipment
• Furniture (white glove furniture delivery is especially useful for pieces that require assembly)
• Perishable goods (like freshly baked desserts)

Offering an LTL white glove service is an easy way for e-commerce businesses to stand out from the competition and get positive reviews from customers. However, for an independent seller, setting up white glove delivery options can quickly drain their resources.

Businesses that are unable to get a white glove delivery service up and running by themselves or find it costly to do so should consider partnering with a third-party logistics (3PL) company. This is a solution that has proven convenient and effective for many.

How to Find the Right Partner for White Glove Deliveries

As more players enter the ecommerce arena, the importance of competent 3PL partners is becoming increasingly evident. The total revenue from the 3PL market is expected to reach $1.31 trillion this year. More and more sellers are choosing to outsource their logistics operations to 3PL partners, which frees their time and energy to focus on growing their business.

For businesses seeking a white glove fulfillment partner to help fulfill their white-glove deliveries, it’s best to research the options available thoroughly. Before deciding which white glove delivery company to partner with, they should also ask the following questions:

• What add-on services does the 3PL partner offer with shipping?
• Do they have experience handling the business’s type of goods?
• What safety protocols are followed during deliveries?
• How prepared are they to handle customized instructions?
• What is the level of training their delivery professionals possess?
• Can they provide real-time white glove delivery tracking and updates for packages in transit?

In a crowded market, PackageX stands out as a partner that meets the needs of leading ecommerce brands. By offering an array of shipping options, discounted rates from white glove carriers, and real-time package tracking, PackageX offers a comprehensive solution for various white glove shipping needs.

It’s time to delight shoppers with a premium delivery experience that ensures they return as loyal repeat customers.

How PackageX Meets White Glove Logistics Demands

White glove delivery services are all about offering premium, personalized experiences, and PackageX can help businesses elevate this service with ease. Here's how we do it:

• Real-time Tracking: PackageX ensures you and your customers can track every step of the delivery process, providing the reliability white glove delivery is known for.
• Precision with Label OCR: Say goodbye to manual errors. Our label-scanning technology ensures quick and accurate package handling for those delicate or high-value items.
• Tailored Workflows: Do you need to handle fragile items or customize steps for special deliveries? PackageX lets you create workflows that match the demand for care white glove services.
• Seamless Integration: Whether you’re running an eCommerce store or managing logistics, PackageX easily integrates with your existing systems for smooth operations.
• Proof of Delivery: Get detailed delivery records, including photos and signatures, ensuring transparency and trust for your customers.

PackageX’s tools make it easy to meet the high standards of white glove delivery, ensuring your business stands out with exceptional service.

FAQs

Does white glove delivery include assembly?

Yes, with white glove delivery, your product doesn’t just arrive at your doorstep—it’s delivered to the exact room you want, carefully unboxed, and even assembled for you.

Is white glove delivery worth it?

White glove delivery is worth considering if it aligns with your business goals and the value it brings outweighs the cost.

Does white glove delivery include removal? 

In trucking, white glove service goes beyond standard delivery by offering specialized transportation that includes careful handling, setup, and even removal.

Manifest is here with an impressive lineup of over 250 speakers! Our CEO is set to contribute to a pivotal panel discussion around logistics digitization, the theme of 23 other sessions happening at this highly anticipated event. 

In addition to sessions around digitization, there are 100+ more dedicated to themes like robotics, cybersecurity, safety, sourcing, and sustainability. With so many to choose from, it’s wise to select one theme and attend sessions primarily around that theme.

If you want to modernize logistics operations with new technology — and improve customer satisfaction (the topic of our CEO’s talk) — digitization is a vital prerequisite and a theme worth dedicating your time at Manifest to. Because of this, we’ve compiled a list of every conversation and presentation around digitization happening at Manifest.

This way, instead of trudging from one speaker track to the next, you can attend a handful of sessions that will make Manifest both productive and enjoyable. This will also leave time to come see the PackageX team at booth 1009!

Monday, February 5

The Power of Global Trade – Announcing TradeView + Live Demo

In an era where a headline like 'Container ships targeted in Red Sea' can send shockwaves through global markets, staying ahead of the curve is more crucial than ever. Join us for a TradeView demo where we'll unravel two compelling stories reshaping the landscape of global trade. From real-time disruptions in the Middle East to ensuring apparel compliance in Europe, we'll explore how TradeView data empowers businesses with insights to help navigate the complexities of global trade.

• Kyle Henderson, CEO & Co-Founder @ Vizion
• Robert Kirk, Head of Analytics Financial Institutions @ Dun & Bradstreet

How To Solve the Challenges of Visibility and Data Quality

Achieving visibility and defining data quality remain critical challenges in the supply chain industry. Throughout this discussion, attendees will gain insights into who is responsible for ensuring accurate and reliable data in the supply chain ecosystem and how to stay ahead of the curve with visibility requirements across various modes/geographies. Join us for a thought-provoking session that will make you reflect and plan for the future of your supply chain operation.

• Shradha Balakrishnan, Senior Product Manager @ Uber Freight
• Tyler Hughes, CTO & Co-Founder @ Vizion
• Eric Johnson, Senior Editor @ JOC.com
• Stefan Kalmund, CEO @ Nexxiot

Tuesday, February 6

Orchestration: The Future of Supply Chain Digitalization

Orchestration, the future of supply chain digitalization, is one of the biggest buzzwords in supply chain. And, it can mean different things depending on who you ask. In this session, join DHL Supply Chain Global Digital Transformation Officer and North American CIO Sally Miller as she unpacks the term orchestration and explains the impact on the logistics industry. She'll outline how tomorrow's logistics market leaders leverage orchestration across all organizational levels: From continuously applying the optimal balance of human, robotic and automated resources within the four walls of distribution centers to coordinating and synchronizing all activities across the entire supply chain network.

• Sally Miller, Global Digital Transformation Officer & CIO North America @ DHL Supply Chain

Navigating Supply Chain Disruptions: How To Turn Logistics Chaos Into Opportunity

While business leaders are grappling with emerging trends like generative AI or the TikTok generation, the global logistics industry has yet to solve some of its most fundamental issues. Antiquated supply chain technology, outdated physical infrastructure, persistent labor shortages and unforeseen disruptions like those in the Red Sea are making it extremely challenging for companies to meet the ever-changing needs of consumers. In this session, Flexport CEO Ryan Petersen will paint a picture of how new technologies and service models are reinventing the global logistics industry. AI powering the supply chain decision making is no longer a distant promise; it’s here now and saving us millions of dollars while enabling this much-reviled cost center to become a true accelerant for companies to meet the ever-growing demands of empowered consumers.

• Ryan Petersen, CEO & Founder @ Flexport

Purpose-driven & Innovation-forward Supply Chains – Collaboration & Digitization Are Key

What similarities exist between the leading Gartner Top Supply Chain Company and a winner of a Leader in Supply Chain Awards? Both will share their expertise for the Manifest Vegas audience. Gartner identifies top supply chains as those capable of fostering growth in the face of increased risks, transitioning from one-to-many networks to many-to-many ecosystems, and effectively integrating solutions and individuals. This discussion will delve into their approaches to the 'end-to-end' value chain, strategies for addressing global disruptions, and the profound impact of AI, ESG, IT, and automation on both workforce and customers.

• Harald Emberger, Chief Supply Chain Officer @ Beiersdorf
• Kenneth Engel, SVP of Internet Giants @ Schneider Electric
• Donna Palumbo-Miele, Managing Director & Founder @ Concordia Supply Chain Group

What Measures Are We Taking To Combat Inventory Disruptions?

Inventory levels have been fluctuating wildly since the pandemic, akin to the erratic movements of a rollercoaster - from widespread disruptions across the global supply chain leading to shortages in supply and inventory - to surpluses and excess stock throughout 2022. As Mark Twain once said "too much of anything is bad" and this was evident across the retail industry as excess inventory led to a bevy of challenges including increased holding costs and inaccuracies in demand forecasting. Retailers were finally able to bring inventory levels to "normal" throughout 2023 and you'll get to hear from some of those retailers and technology leaders that have actively battled these disruptions.

• Seth Clevenger, Managing Editor, Features @ Transport Topics
• Tim Judge, CEO & President @ Agillitics
• Marc Tomkinson, CTO @ C3 Solutions
• Ashley Yentz, VP, Supply Chain Strategy and Material Flow @ Sleep Number Corporation

Cross Border Shipping – From Compliance and Customs to Transport

Cross-border shipping represents a complex web of regulations, logistics, and operational intricacies. It involves navigating compliance and customs protocols while ensuring efficient transport and clearance of goods. An esteemed group of supply chain and technology leaders discuss the integration of AI and technology to optimizing various facets of cross border from compliance and customs to handling and transportation.

• Daniel Covarrubias, Director, Texas Center for Border Economic & Enterprise Development @ Texas A&M International University
• Michael Sachaj, VC Investor @ HPA
• Yikun Shao, Head of NA Supply Chain @ Alibaba.com
• Evan Smith, CEO & Co-Founder @ Altana
• Alex Yancher, CEO & Co-Founder @ Passport

Tools & Technology That Make Sense – How Can We Enable Our Employees and Our Partners To Succeed?

Automation, robotics, AI, data analytics, digital twins - it all sounds so cool and trendy - but who do they work for? How do they impact one's workforce and partners. Some of the world's largest food, beverage and CPG organizations and logistics service providers who are tackling these issues head on share their experiences detailing HOW they are being used in supply chains.

• Matthew Cicinelli, VP, U.S Operations & Global Supply Chain Technology @ HelloFresh
• Gabby Contro, Partner @ Crosslink Capital
• Kristen Daihes, VP, Global Supply Chain - Mars Snacking @ Mars
• Bill Durbin, Head of North America Logistics & Planning @ Kraft Heinz
• Michael Newcity, Chief Innovation Officer @ ArcBest

How To Keep Pace With Evolving Customer Expectations

CEOs that pay close attention to shipping do so to ensure the overall success and sustainability of their businesses. Four of these CEOs join the stage to take a deep dive into customer experience, cost efficiency, and the partnerships that are enabling agile and responsive supply chains while reducing disruptions and meeting market demands effectively.

• Sarah Barnes-Humphrey, Founder & Host @ Let's Talk Supply Chain
• Peter Coratola Jr, CEO & President @ EASE Logistics
• Farrukh Mahboob, CEO & Founder @ PackageX
• Coby Nilsson, CEO & Co-Founder @ Enveyo
• Itamar Zur, CEO & Co-Founder @ Veho

Supply Shortages, Risk, and Costs – What Have We Learned From the Recent Past?

Shortages in raw materials and specialty products and increased transportation costs are common challenges that were felt across numerous verticals including pharma and healthcare logistics. To navigate, supply chain and data science leaders were required to enhance collaboration and transparency with partners, suppliers and manufacturers - as well as leverage AI & machine learning, IoT, automation and control towers with resiliency being top of mind. Learn from a panel of seasoned experts who collectively bring over 70 years of experience in navigating and managing disruptions throughout the global supply chain.

• Imara Charles, VP, Process & Digital Excellence, Global Supply Chain @ Bristol Myers Squibb
• Sanjay Choubey, VP & CIO/CDO, North America @ Dr. Reddy's Laboratories
• Ravi Dosanjh, COO @ Caliber.global
• Amit Prasad, Chief Data Science Officer @ TI Holding Company
• Kirk Serjeantson, Chief Information Officer @ American Expediting

The World of Carrier Identity – Trust Built Through Transparency and Truth presented by Highway

It all starts with carrier identity. At Highway we believe that the fraud issues brokers face in the freight industry today are at their core, identity issues. True carrier identity drives trust between both brokers and carriers through transparency, creating an more integrated, digital and secure ecosystem. This is the world Highway is on a mission to create.

• Jordan Graft. CEO @ Highway

The Future of Supply Chain Visibility in the Post-Crisis Era presented by MarineTraffic a Kpler Product

Although the recent supply chain crisis highlighted the critical need for visibility, it also revealed its constraints. This session will delve into the evolving role of real time visibility logistics technology, address the market’s unfulfilled expectations, and emphasize the necessity of collaboration among key players. Join to chart the course for the future of supply chain visibility in the post-crisis era.

• Adil Ashiq, Regional Sales Manager, Americas @ Kpler Maritime
• Maximilian Weigelt, Team Lead Sales Specialist @ Kpler Maritime

Customs Brokerage Breakthrough: How Generative AI Is Disrupting Global Trade

Deep Cognition features state-of-the-art, “trainingless” generative AI that turns documents into data. Enterprises can generate ROI on day 1 of deployment and transform their data entry processes at scale. Gone are the days of labelling and annotating different vendor formats for your automation needs. PaperEntry AI, our intelligent document processing solution, achieves 90-99% accuracy for the most complex documents, no matter the format. Even add new document types yourself, right from the frontend. Please stop by Deep Cognition’s booth and experience a live demo of PaperEntry.

• Kurt Knapton, CEO @ Deep Cognition

Unlocking Potential: The Future of Unified Supply Chain Technology presented by Manhattan Associates

The traditional supply chain landscape, marked by isolated operations and siloed solutions, is undergoing a paradigm shift with the advent of unified supply chain technology. This session will explore the groundbreaking advancements in unifying transportation and yard management into a single, unified, modern platform. Expert panelists will explore how this unification amplifies operational efficiency and empowers strategic decision-making, transcending conventional limitations.

• Bart De Muynck, CEO & Founder @ Bart De Muynck LLC
• Bryant Smith, Director of Product Management @ Manhattan Associates

Silos Are for Grain: The Importance of Data in Supply Chain presented by AWS

Timely, accurate data are the foundation of the visibility and control needed to address supply chain challenges. Join AWS and guests to learn more about how supply chain professionals can best collect, harmonize, and use data from disparate systems to create a unified picture of their supply chain operations.

• Dieg Pantoja-Navajas, VP New Products, AWS Business Applications @ AWS

Reinventing Ourselves To Meet and Exceed Customer Expectations

No matter what it takes, it's your job to ensure your customers get their favorite warm donuts snugly tucked under their preferred polo shirt, all while wrapped in their ultra-cozy comforter. Gain insights directly from the companies intricately involved in the behind-the-scenes efforts - utilizing a robust supply chain network, partnering with innovative 3PL services, and harnessing technology - to maintain seamless connections with the customer so that donut wrapped in the comforter gets to it's destination on time and in perfect condition.

• Jamin Dick, Chief Supply Chain Officer @ Lands'​ End
• Dave Finnegan, Head of the Customer Experience Practice @ Reach Partners
• Ben Jackson, CEO & Co-Founder @ Bungii
• Rachel Levy, COO @ Brooklinen
• Patrick McIntyre, Head of Development @ Krispy Kreme

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Wednesday, February 7

Navigating the Path to a Digitalized and Climate-Positive Supply Chain

In a pivotal session, one of the top 6 supply chain leaders of 2023 takes the stage to unveil the blueprint for revolutionizing supply chains. With a visionary approach, this luminary illustrates the intricacies of driving long-term and holistic transformation within supply chains while harnessing cutting-edge technology, all while prioritizing the imperative of a climate-positive impact.

• Dirk Holbach, CSVP, CSCO @ Henkel Consumer Brands

Creating the Antifragile Supply Chain: Through Innovation, Talent & Collaboration

Gartner's "Masters" category highlights a select group of companies exhibiting enduring excellence in their supply chains, assessed across financial, ESG, and community sentiment criteria. Among this exclusive cohort is a global consumer goods powerhouse, reaching 3.4 billion individuals in 190+ countries, sustaining its "Master" status for five consecutive years. The global supply chain leader of their flagship brand will unveil their strategies for maneuvering through the evolving supply chain landscape, focusing on resilience, capacity, business model evolution, sustainability, and talent development.

• Biswaranjan Sen, Global Chief Product Supply Officer, Beauty & Wellbeing @ Unilever
• Maria Villablanca, CEO & Co-Founder @ Future Insights Network

The Evolution of Digital Freight Models

Two titans of the freight industry take you on the road and map out the transformative journey within the freight market. This session delves deep into the disruptive forces of digitalization, automation, and AI that are reshaping road logistics. Join to explore how these advancements are redefining operations, enhancing efficiency, and paving the way for a future of agile and interconnected freight systems.

• Laurent Hautefeuille, EVP @ Uber Freight
• David Nothacker, CEO & Co-Founder @ Sennder

The Current & Future State of Integrations – Identifying Real Use Cases of AI & Next Gen Tech

Expert 3PLs, shippers and technology pioneers converge to explore the intricate realm of supply chain integrations. The focus lies on illuminating the transformative potential of leveraging generative AI to propel supply chain efficiency to unprecedented levels - all while charting a course towards optimized, adaptive, and future-proof supply chain ecosystems for shippers and partners.

• Dave Broering, President, Integrated Logistics @ NFI Industries
• Erik Kiser, CEO & Founder @ Orderful
• Daragh Mahon, EVP & CIO @ Werner Enterprises
• Judy Webb-Hapgood, Chief Supply Chain Officer @ The University of Miami/The University of Miami Health System
• Janie Yu, Partner @ LFX Venture Partners

Intelligent Infrastructure – What Enables True Visibility & Connectivity?

Charting the future of mobility, logistics, and transportation involves a fusion of autonomous vehicles for both cars and semi-trucks, innovative rail systems drawing inspiration from hyperloop technology, and comprehensive connectivity software spanning devices and locations. Esteemed panelists from the mobility industry step onto the stage to discuss infrastructure requirements, the synergy between private and public sectors, and the crucial aspects of executing these advancements effectively.

• Harjinder Dhaliwal, Chief Capital Programmes Officer @ Nevomo Technologies
• Michael Granoff, Founder @ Maniv Mobility
• Ian Kinne, Director of Logistics Innovation @ Hillwood
• Parthsarathi Trivedi, CEO & Co-Founder @ Skylo

Achieving Importer Visibility and Control With 3rdwave’s Supply Chain Execution Platform

3rdwave is proud to introduce its Shipment Execution Platform. By focusing 100% on the needs of the importer, the Shipment Execution Platform is able to deliver where most industry solutions fall short. We will discuss the current state of visibility and TMS solutions, why many of them have a hard time meeting the specific needs of importers, how the 3rdwave Shipment Execution Platform is designed from the ground up to be different, and why that difference matters.

• Josh Blinick, CTO @ 3rdwave

Innovation to the Last 10ft

what3words is a precise address system - with a grid of 57 trillion 10ft squares, each square is labelled with 3 words from the dictionary. Customers use it to specify an exact entrance to a building for a delivery, or to tag safe-space locations to leave packages. Used by DHL, DPD, Aramex and other delivery companies around the world, what3words decreases time spent in the final mile locating the doorstep or entrance, and helps customers get their packages to exactly the right place. Clare Jones is the Chief Commercial Officer of what3words and will share some case studies of the tech in action and what it could mean for the future of autonomous delivery.

• Clare Jones, Chief Commercial Officer @ what3words

An old English proverb says, “There’s many a slip between the cup and the lip.” It implies that unforeseen challenges can complicate an activity before it is completed.

Nobody knows this better than businesses engaged in shipping goods to their customers. Fulfilling an order only seems straightforward. In reality, there are many things that can go wrong between the time a package leaves the warehouse and reaches the customer. In order to simplify the process of transporting goods, many direct-to-customer retailers choose to work with a logistics company.

This article is an introduction to logistics companies, the work they do, and the advantages they offer to their business partners. If an ecommerce business relies on shipping goods, finding the right logistics company to partner with can transform their entire supply chain!

Understanding logistics

Before examining logistics companies and their workings, let’s briefly look at the reason for their existence. Logistics is the process of storing and transporting goods from their point of origin to their point of consumption in a timely and efficient manner. Ensuring logistics run smoothly is a key component of an overall supply chain management strategy.

This is especially true for the small and medium-sized ecommerce industry. Smaller retailers compete with giants like Amazon, which offers fast, convenient, and cheap delivery options. This means that smaller businesses can potentially lose out on customers who are always looking for better delivery options. In fact, as many as  84% of shoppers in a survey said they wouldn’t return to a company after just one negative experience.

That’s a very narrow margin for error, and ecommerce retailers can’t afford to make mistakes if they want to retain customers. Luckily, even if a business doesn’t have the resources to set up an efficient shipping and distribution network that competes with industry leaders, there are others that can help. Logistics companies are a savior when there is a need to optimize a business’ logistics operations.

What do logistics companies do?

Many retailers who have just started operations think they can handle the responsibilities that come with the self-fulfillment of customer orders. They soon realize that their supply chain won't function as planned without experience in warehouse management, inventory management, and moving goods. This leads to shipment delays, which in turn leads to customers abandoning a brand and seeking alternatives.

Working with a logistics company can prevent this scenario from happening.

Logistics companies specialize in storing and moving another company’s goods within their supply chain. And it’s not just transportation—logistics companies can also manage every other aspect of their clients’ supply chains, depending on each client’s requirements.

Functions of a logistics company

From planning out the supply chain to actually executing order fulfillment, logistics companies contribute to moving goods at every stage of the process. They perform many functions that add value to any business, and we shall look at these in more detail.

1. Warehouse management

A warehouse is the central hub of a distribution network, especially for an ecommerce retailer who doesn’t have a physical store. All the orders received will have to be processed, prepared for shipping, and dispatched from the warehouse. Logistics companies take on warehousing responsibilities, including tracking stored inventory and preparing packages for shipping on time.

2. Packaging

First impressions are important, and the first thing customers see when they receive their orders is the packaging. While some goods might come pre-packaged for retail, transport packaging is an entirely different affair. Logistics companies help clients by providing durable yet compact transport packaging that protects goods from damage during shipping.

3. Transportation

The prime function of any logistics company is to assist in the movement of goods. Regardless of what other services they offer, all logistics companies will have a solution for transporting goods from their point of origin to their point of consumption. Different logistics companies specialize in transportation over short, medium, and long distances, with some even helping move goods across international borders.

4. Inventory management

Having an efficient transportation network is pointless if inventory management is shoddy. Simply put, inventory management is all about ensuring goods are in stock and easily accessible when it’s time to fulfill customer orders. Many logistics companies have optimized inventory management with software that tracks inventory levels and automatically routes orders to the closest fulfillment center.

Modern inventory management software is extremely valuable in optimizing logistics operations and reducing costs. It accomplishes this by streamlining logistics workflows, which means less time and resources are spent on tracking inventory. Using inventory management also enables the automatic cataloging of inbound shipments, instant generation of packing slips for outbound packages, and the creation of shipping labels for orders before they are dispatched.

5. Data collection

Logistics is an ongoing process. Every logistics action yields new insights into how the process can be further streamlined and made efficient. Logistics companies track various metrics and collect important data related to order fulfillment that helps retailers fine-tune their supply chain management strategies.

All this data also helps fine-tune warehouse management software (WMS) and optimize shipping methods. Digitizing the logistics process enables greater transparency and a measurement of how efficiently they are performing.

6. Order tracking

Once an order is dispatched from a storage center, it’s vital to keep a tab on its location. Both customers and sellers benefit from being able to track their orders through the supply chain. Logistics companies make it easy to instantly access information about the status and location of every package in transit.

Tracking packages is easier than ever before with modern digital solutions. The ability to track a package in real-time and receive updates about its progress gives the seller a greater degree of control over the customer’s delivery experience. For retailers who send out a high volume of orders daily, having software that tracks all their orders in transit is a must.

7. Customer service 

Apart from order tracking, customers might have other needs while they wait for their package. From special delivery instructions to responding to customer queries, some logistics companies add value for retailers by offering additional customer service functions.

Types of logistics companies

Order fulfillment can be complicated, as ecommerce sellers know all too well. Individual sellers will face different challenges based on their own approach to supply chain management. In order to cater to the wide range of requirements, multiple kinds of logistics companies have emerged. Each type of logistics company offers different services, so it is best to choose one that suits specific business needs.

The three main types of logistics companies are:

1. Freight brokers

A freight broker’s role is to act as an intermediary between the seller and the carrier. However, two different types of companies engage in freight brokering and offer different services. The two types of freight brokers available are:

• Freight companies: These companies are directly engaged in transporting goods. Freight companies usually specialize in a particular mode of transport, like road, rail, air, or sea.
• Freight forwarders: Instead of directly transporting the goods, freight forwarders act as agents who facilitate the goods’ movement. They handle documentation for imports and exports and coordinate transportation solutions between shippers and freight carriers.

2. Carriers

In logistics, a carrier is a company that only offers transportation services for goods. These companies handle the goods directly and are typically trucking, rail, air cargo, and ocean freight companies.

3. Third-party logistics (3PL) companies

Out of the many types of logistics companies, 3PL companies offer the most comprehensive solutions. They don’t simply handle freight — they also tackle all the other aspects of the supply chain as per their client’s requirements. The services offered by 3PL companies include distribution, storage, transportation, and fulfillment. Modern 3PL companies also harness the power of technology, using machine learning (ML), artificial intelligence (AI), and advanced analytics to deliver the best possible results over time.

Why is partnering with a logistics company necessary?

Efficiently managing delivery operations is crucial for any company’s success, especially in ecommerce. A business should ask itself these questions to determine if it needs to partner with a logistics solutions provider: 

• Are shipments regularly delayed?
• Have customers expressed dissatisfaction about order fulfillment?
• Are employees overwhelmed by order processing tasks?
• Is the warehouse and inventory management system working as intended?
• Will sales see a sudden increase due to seasonal demand?

If the answer is “Yes” to any of the questions above, it’s likely that partnering with a logistics company will be beneficial for the business.

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The benefits of partnering with a logistics company include:

Expanding into new markets

Setting up a distribution in a new market can be tricky. Thankfully, 3PL companies can help businesses establish new networks by providing inventory management and fulfillment services to reach customers in untapped markets.

Reducing risk

A logistics company will step in to solve problems in a client’s supply chain before they adversely affect business operations. This reduces the risk associated with transporting goods using self-fulfillment methods.

Eliminating stress

The paperwork involved in processing orders and moving them across borders can be time-consuming and stressful. By outsourcing this to a logistics company, employees are freed up to focus on more critical tasks.

Lower costs

Most logistics companies have standing deals with carriers to get preferential shipment rates. Their clients also enjoy discounted rates, bringing the cost of transportation down. By optimizing inventory management and finding appropriate storage solutions, logistics companies can also reduce operational costs.

PackageX: The perfect logistics partner for retail businesses

Over 90% of companies surveyed by McKinsey in 2022 reported investing in digital supply chain technologies, a sign that businesses were aware they needed help with logistics. Whether an ecommerce business is looking for solutions in inventory management, order fulfillment, or shipping for deliveries and returns, PackageX has the answer. With AI-enhanced capabilities, PackageX is the ideal logistics partner for a fast-moving, data-driven, digital world.

Waiting for a delivery to arrive might be the most frustrating part of online shopping. The entire experience is designed to be convenient, and there’s no reason the checkout-to-door experience can’t be the same way. While two-day shipping has become the industry standard thanks to platforms like Amazon, shoppers want an even better solution. With as many as 88% of consumers ready to pay extra fees for expedited delivery, overnight shipping becomes the difference maker for every ecommerce business.

When you offer customers overnight shipping, you’re not just offering speedy delivery options; you’re promising shoppers a higher level of service when they shop at your ecommerce store. Limited shipping options can negatively impact the conversion rate. Up to 22% of online consumers abandon shopping sessions because the shipping options are not satisfactory.

If you want your business to stand out from the competition, having expedited, same-day delivery options for your customers will do the trick!

What is overnight shipping?

In overnight shipping, deliveries are completed on extremely short timelines. Customers receive their package the very next day after placing an order. Usually, overnight shipping is the fastest delivery option offered by couriers. For example, if a customer makes a purchase with overnight shipping on a Monday, they can expect to receive their package on Tuesday.

Overnight shipping is a premium service that can add tremendous value to any ecommerce business. Despite this clear advantage, only about half (51%) of retailers currently offer such delivery options with a fast turnaround. That number is likely to rise even higher in the coming years, and your company should be able to take advantage of this critical trend in logistics.

Next-day delivery, one-day shipping, and overnight shipping

Retailers use a variety of names for the same level of service. Both next-day delivery and one-day shipping can be used interchangeably in place of overnight shipping. As with overnight shipping, this naming clearly sets customers’ expectations for a speedy delivery.

Ultimately, it doesn’t matter what you call your expedited shipping method as long as the deliveries reach shoppers at the promised time. Few things can hurt a brand as badly as failing to uphold its own delivery guarantees. A survey of U.S. shoppers found that while most customers are willing to wait up to two days for delivery, they are far less accepting of delivery times any longer than that.

How does overnight shipping work?

As with the convenience of air travel and fast food, overnight shipping requires many moving pieces that many of us take for granted. It’s incredible that you are able to place an online order with a California-based company while sitting in New York and receive your package the very next day.

But there’s a lot involved in the process.

From the moment your customer places an order to the point where they unbox the package, there are multiple steps that need to be taken to ensure a speedy delivery. Let’s look at the process step-by-step:

• Order placement: A customer places an order on your online store before the daily cut-off time, thereby qualifying for overnight delivery.
• Order processing: Warehouse workers prepare the product for shipping and hand it off to the shipping department. Urgent packages, like overnight deliveries, are shipped out on the same evening that the customer placed the order.
• Package sorting: After an overnight journey by road, rail, boat, or air, the package reaches the local distribution hub. The following day, a team at the distribution center sorts the packages according to the delivery destination.‍
• Delivery: Expedited deliveries are sent out the same day they arrive at the distribution hub. The courier picks up the package from the distributor and drops it at the customer’s doorstep.

The entire process, from order placement to delivery, takes less than 24 hours.

The growing popularity of overnight shipping

Overnight shipping didn’t become a viable means of transporting goods until the 1970s when it was pioneered by courier companies like FedEx and DHL. Since then, it has become an indispensable tool for ecommerce companies looking to distinguish themselves from their competition.

Today, nearly every ecommerce company offers some version of overnight shipping. For example, though Amazon’s standard delivery time is two days, members of Amazon Prime can avail of free and expedited delivery options. This is one of the most popular hooks to get people to subscribe to Amazon Prime, with 72% of users saying the unlimited free deliveries were the most important perk of the service.

Key considerations for overnight shipping

Ecommerce companies are able to meet the strict deadlines involved with overnight delivery by maintaining a robust transport network that spans the country, if not the globe.

To run a successful overnight shipping operation, ecommerce companies need to quickly process orders, track their inventory in real-time, and manage the costs of transportation — all at the same time. It seems like a daunting task, but it’s worth the effort. Customers have a clear preference for brands that offer fast delivery options, so taking the trouble to set up an overnight shipping distribution network can pay off for your business.

For an ecommerce company to successfully fulfill overnight shipping orders, it needs to pay attention to the small details, like:

• Only offering overnight delivery for orders placed before the cut-off time
• Creating a shipping label and safely packing the goods for delivery
• Dropping off the package at the designated distribution hub on the same day the order is placed
• Safely storing and sorting the package at the distribution hub overnight
• Customers should receive their package on the next business day after placing the order

How much does overnight shipping cost?

Overnight shipping is a complex, costly logistical endeavor. At a minimum, overnight shipping comes with a price tag of around $25. However, depending on a collection of other factors we will examine next, that price tag can increase to $70, if not more. So, what contributes to the final cost of shipping goods overnight?

1.   Package dimensions

When you ship goods for delivery, you also have to account for their packaging and external containers. The length, width, and height of the package, along with the weight of its contents, come together to form the dimensional weight or DIM weight. Another name for this value is billable weight since this is the figure that carriers consider when setting a price.

2.   Package weight

While the DIM weight has several components, the most important one among them is still the product itself. Heavier products mean heavier packages, leading to higher shipping costs.

3.   Shipping zones

Most carriers use shipping zones, which are pre-defined geographical areas, to help set their rates. The number of shipping zones your package has to cross will raise the price.

4.   Shipping carrier contracts

If you are regularly sending out goods for delivery, it doesn’t make sense to continue paying retail rates for shipping services. Approach your preferred carrier to set up a contract to fulfill your overnight deliveries in return for favorable rates. Research the different carriers in your area and their pros and cons before entering into a contract with anyone.

Benefits of overnight shipping

Overnight delivery can sometimes feel like a tall order, but it’s worth the effort so that your business can enjoy the benefits. These include:

1.   Faster Order Fulfillment

Fulfilling orders quickly isn’t just a question of meeting deadlines. Some products, like perishable goods or emergency medicines, absolutely must be delivered as soon as possible. Overnight delivery ensures customers receive fresh goods.

2.   Greater Customer Satisfaction

Overnight shipping is a great option for customers who can’t wait to get their hands on your product. Offering it as an option during the checkout phases lets the customer decide if they wish to pay extra for a faster delivery, saving you the expense.

While some customers will be fine with standard shipping options, an expedited delivery option lets you convert customers who need their packages more urgently.

3.   Boost for Revenue

Every service your ecommerce company offers needs to have a business value. Overnight shipping’s value is in driving up revenue. It does this by boosting sales and outsourcing the costs of expedited delivery to the customers who opt-in. Since the customer chooses to pay for a speedy delivery, your company doesn’t have to bear the costs itself.

Overnight shipping drives up your sales conversions because it helps you target two different groups of customers at your checkout touch point: Those willing to pay for faster deliveries and those who are fine with the standard shipping period. With tailor-made shipping options to suit their needs, both sets of customers are more likely to complete a purchase.

After successfully receiving a package via overnight shipping for the first time, your customers become more confident about placing repeat orders. An effective overnight delivery operation can create valuable customers who goon to become ambassadors for your brand.

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How to Succeed at Overnight Shipping

Following a few simple pointers will help streamline your overnight shipping operation and get you ready to serve online customers. The Three things that you must remember when setting up your shipping infrastructure are:

• Store goods in multiple ware houses to ensure good coverage for your transportation network
• Choose warehouses located close to your customer base for shorter last-mile deliveries
• If customers are located in close proximity to your business, consider offering a ship-from-store fulfillment option
• Set clear terms for customers who use overnight shipping, including a daily cut-off time for placing orders

Choose the Right Overnight Shipping Partner for Success

It’s unlikely that your business is prepared to tackle the logistical challenge of shipping without an expert partner. PackageX is a one-stop solution for all your shipping needs. Transform how you ship to customers with a convenient and robust shipping app that allows you to check out rates of a vast network of traditional and on-demand carriers, create cost-effective shipping labels at scale, automate delivery notifications, and much more.

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Creating shipping labels efficiently is a crucial component in the smooth operation of an ecommerce business. This guide is an essential resource for ecommerce entrepreneurs aiming to refine their shipping and fulfillment strategies. We delve into the details of formatting and customizing labels to include all necessary information, such as the recipient's address, package weight, and tracking number. This ensures that your packages are not only compliant with carrier standards but also present a professional image to your customers.

Moreover, the guide addresses the integration of shipping label creation with your ecommerce platform and inventory management systems. This integration is vital for automating the process, reducing manual errors, and saving valuable time. By automating the shipping label process, businesses can handle a higher volume of orders more efficiently, leading to faster dispatch times and improved customer satisfaction.

We also explore cost-effective strategies for shipping label creation, including bulk printing and negotiating better rates with shipping carriers. These strategies are particularly beneficial for businesses looking to scale up and manage increased order volumes without compromising on efficiency or customer experience.

In addition to the technical aspects of creating shipping labels, the guide emphasizes the role of shipping labels in enhancing the customer experience. A well-designed shipping label can be a part of your brand's packaging experience, creating a positive and memorable unboxing experience for your customers.

What is a Shipping Label, and Why is it Important?

A shipping label is a crucial element of every online order you accept. It’s a sticker placed on packages before delivery containing all the essential information needed to ship them to their destinations. This includes the package’s destination address, return address, contents, tracking number, and weight. Carriers also use all this information to determine shipping rates and methods.

If you fail to place the proper shipping labels on your packages, there’s a good chance they might be delayed, delivered to the wrong addresses, or lost with no means of retrieval.

A recent report on global parcel theft found that almost 42 million parcels in the U.S. were lost or stolen over a year (May 2021 to April 2022), resulting in an estimated $1.8 billion loss for consumers. In e-commerce, customer satisfaction and loyalty are of prime importance, and losing their orders over a small detail, like improper shipping labels, can be detrimental to your business.

Standard Information for Shipping Labels

The reason shipping labels play such a central role in logistics is the information they contain. While various carriers like the U.S. Postal Service (USPS), FedEx, DHL, and others use slightly different templates for their shipping labels, the information fields are usually the same.

Regardless of the template, the standard format for shipping labels includes the following:

• ‍Return address: Includes the sender’s name and address in case the package cannot be delivered to the recipient and has to be returned
• ‍Destination address: Includes the recipient’s name, address, and contact details so that the carrier can reach them to deliver the package
• ‍Package weight: Specifies the weight of the package, including the box and wrapping, so that carriers can determine shipping rates
• ‍Special instructions: Depending on the contents of the package, some shipping labels contain special instructions on its handling, such as “Fragile” or “This Side Up”
• ‍Unidirectional/QR code: Used by machines to scan shipping labels and read the information they contain
• ‍Postal barcode: A unique barcode that can be scanned to access the recipient’s zip code
• ‍Shipping method: Contains details on whether the parcel was shipped through standard, express, or any other shipping method
• ‍Routing number: Used by carriers to route the package to its destination
• ‍Tracking number: Used by customers and sellers to track the package online

If you are new to shipping orders, the sheer volume of information needed to create shipping labels might seem intimidating. Don’t worry! There are many ways to create shipping labels that streamline the process and reduce the likelihood of errors.

How to Create Shipping Labels

It’s possible to buy shipping labels directly from your carrier and manually fill them out, but it’s time-consuming and expensive. This is only sustainable for businesses that aren’t shipping out many orders (less than 10 per week) and that can afford to pay retail rates for postage charges.

It’s much more cost-effective to create your own shipping labels. This lets you enjoy postage discounts and have the carrier pick the packages up directly from your facility instead of dropping them off yourself.

There are various methods to create your own shipping labels, including:

How to Create Shipping Labels through Your Carrier

Most major carriers, including USPS, FedEx, DHL, and UPS, allow you to create your own shipping labels. This is the perfect solution for e-commerce sellers who ship a low volume of packages every week.

Creating shipping labels through your carrier involves:

• ‍Step 1: Visit your chosen carrier’s website and fill out the shipping label template that they provide
• ‍Step 2: Download the file.
• ‍Step 3: Print the required quantity of shipping labels for your needs

How to Create Shipping Labels Using a Template

You can also create shipping labels using online templates.

There are various online templates available for you to download and use. They include all the essential fields you need to fill in to create a shipping label, such as destination and return addresses, package weight, shipping instructions, etc.

While easy to use, you should keep a few things to keep in mind:

• Make sure your template contains all the required fields for your packages
• Double-check that the template you use meets the specifications set by your carrier
• Choose a template that can accommodate any special instructions for handlers during the shipping process

How to Create Shipping Labels with a Third-Party Solution

Partnering with a third-party solutions provider might be the most convenient method of creating shipping solutions. This method is ideal for businesses that need to send out large volumes of orders and lack the manpower or bandwidth to oversee the process of creating shipping labels.

In addition to letting you create cost-effective shipping labels at a large scale, many third-party shipping partners also offer additional services, such as carrier discounts and advanced reporting tools.

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Best Practices to Follow When You Create Shipping Labels

Once you’ve mastered how to create shipping labels, your e-commerce business will start to see several benefits. Creating perfect shipping labels helps your business in many ways, such as:

• Improved order fulfillment rates
• Greater customer satisfaction rates
• Reduced shipping and storage costs
• Fewer losses due to returns or unsuccessful deliveries

With these benefits in mind, incorporate the following best practices while creating shipping labels for your e-commerce orders.

1. Clearly Display Special Instructions

Creating the right shipping label begins with understanding your own shipping needs. This is even more important if you are shipping items of a delicate nature or need your order delivery expedited by the carrier. Ensure any special instructions are clearly visible on your shipping label.

2. Make the Label Placement Hard to Miss

Warehouse workers and delivery drivers handle hundreds of parcels daily. If they misread or don’t spot your shipping label, the chances are your package may be delayed or lost. You should ensure the label stays secured to the package until it arrives at its destination and that every handler in the supply chain can easily spot it along the way.

3. Include Every Relevant Field of Information

Even a small blank space on a shipping label can lead to a logistics mix-up, so ensure you fill out every essential field. Double-check the details before sending out the package.

4. Work with a Shipping Partner

Working with a shipping partner can make the shipping process more streamlined. You can partner with many major carrier companies for bulk rates and optimized shipping solutions. Or, you can partner with a third-party logistics provider to outsource every aspect of the shipping process, including creating shipping labels.

Smart Shipping Label Solutions for E-Commerce Businesses

As an e-commerce seller, you can choose from several third-party shipping partners. PackageX offers business owners one of the most comprehensive shipping solutions on the market. It has competitive rates from its network of major carriers, the ability to track packages through their journey, and scale up shipping operations. It also allows you to create shipping labels without hassle.

PackageX subscribers can create shipping labels in bulk at discounted rates. All you need to do is enter the package details, choose your preferred carrier, and complete the payment according to the shipping rates. The software automatically creates labels for same-day or standard shipping.

Shipping labels play a key role in the overall success of your online order fulfillment. Reduce the number of mistakes and improve your shipping operations efficiency by choosing the right partner for your business.

In today's competitive retail landscape, expedited shipping has become a cornerstone of success, prompting industry leaders like Amazon, Target, and Walmart to innovate and redefine their distribution strategies. Each retailer has carved its unique path to meet the soaring demand for faster deliveries, leveraging technology, network optimization, and innovative approaches to shipping.

Evolving distribution networks: Amazon's same-day delivery centers

Amazon, the pioneer in fast and efficient shipping, continues to revamp its distribution network by establishing a multitude of same-day delivery centers strategically positioned across 90 metropolitan areas. These centers, comprising a smaller footprint compared to traditional warehouses, epitomize Amazon's commitment to speed and precision.

With more than 175 fulfillment centers globally and a concerted effort to reduce average delivery times by over 50% since 2018, Amazon's relentless pursuit of rapid order fulfillment is evident. The company's same-day facilities are meticulously designed to curate high-demand inventories aided by cutting-edge AI-driven technology. This integration of technology ensures seamless order processing, enabling packages to traverse shorter distances and reach customers within a matter of hours.

In the WSJ Shipping Wars series, an Amazon spokesperson emphasized: "Our same-day facilities stock high-demand items, enabling us to send out packages over much shorter distances, resulting in faster deliveries." The strategic placement of these centers significantly reduces delivery times and strengthens Amazon's position as a trailblazer in the world of swift e-commerce deliveries.

Utilizing store networks: Target's cost-effective shipping approach

In contrast to Amazon's extensive fulfillment centers, Target adopts an innovative “stores as fulfillment centers” strategy. With a network of over 2,000 stores strategically dispersed across the country, Target capitalizes on the proximity to customers to streamline shipping operations.

By transforming its stores into mini-fulfillment hubs, Target caters to 95% of its online orders, significantly reducing shipping costs. The integration of in-store fulfillment processes allows Target to expedite next-day deliveries while optimizing space within existing store footprints.

Despite challenges such as space limitations and balancing in-store shopping with online fulfillment, Target's innovative approach has resulted in a substantial surge in next-day deliveries. A Target representative highlighted: "Our stores provide a great advantage when it comes to fast delivery because they're located within 10 miles of 90% of the population."

Automating fulfillment: Walmart's technological leap with robots

Walmart relies on automation and technology integration at its Market Fulfillment Centers (MFCs) to scale its shipping operations. These MFCs, attached to Walmart Supercenters, house thousands of popular products and leverage a fleet of over 175 robots to expedite order processing.

With a commitment to processing 95% of orders in under 12 minutes, Walmart's investment in cutting-edge technology like Alphabots for efficient order picking sets it apart. The seamless integration of automation and technology allows Walmart to fulfill orders rapidly — often within hours — leveraging its extensive network of over 4,600 stores, with more than 4,000 offering same-day delivery.

In the race for expedited shipping supremacy, Target, Walmart, and Amazon employ distinctive yet effective strategies tailored to their strengths. While Amazon revolutionizes its distribution network with same-day centers, Target leverages its store network for cost-effective shipping, and Walmart scales its operations through automation.

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Learn more in the Shipping Wars video series

The insights in this article are based on the Shipping Wars series by The Wall Street Journal. We highly recommend checking out each video about Amazon, Target, and Walmart.

• Inside Amazon’s Meticulous Same-Day Delivery Strategy
• Inside Target’s Strategy to Beat Amazon and Walmart’s Fast Delivery
• How AI and Automation Fuel Walmart’s Ultrafast Deliveries

One of the most disappointing experiences you can give your customers is telling them an item they want is out of stock. That’s why stock control is so essential for any business that sells its products to consumers, either directly or through a distribution network.

If a business cannot fulfill purchase orders regularly, it runs the risk of losing customers. Whether it’s something minor, like a bakery never having enough of your favorite cookies, or a more urgent situation, like a pharmacy being unable to fulfill a prescription, these are red flags that consumers do not miss.

Whether your business is online or in stores, stock control is necessary for customer satisfaction, cost optimization, and smooth supply chain management (SCM).

Optimized stock control also adds value by minimizing your losses due to stock-outs, damaged or expired goods, and production or distribution delays.

In this article, we will delve into how you can get the maximum value from your inventory.

Stock Control: An Essential Process

If you’re unfamiliar with the ins and outs of inventory management, you might be wondering, “What is stock control?”

Stock control is the process by which a business accounts for all its stock. Given that the terms “stock” and “inventory” are often used interchangeably, another term for stock control is inventory contr

Stock control is a must-have for any retailer in order to:

• Track which items are selling faster than others
• Meet orders on time and increase customer satisfaction
• Fine-tune logistics and supply chain operations
• Avoid inventory shortages

Stock control exercises also yield insightful data that you can use to develop short and long-term business strategies.

However, despite the importance of stock control, not enough businesses have harnessed its potential. Studies have shown that 43% of small businesses lag behind in stock control measures. Some still rely on manual methods for tracking their stock or, in some cases, do not track it at all!

But, once you understand how stock control can help transform your business for the better, you will agree that it is an essential process that should never be overlooked.

Stock Control Vs. Stock Management

Quite often, stock control and stock management are mistaken for one another. These are two very closely interlinked processes, but while they have a shared purpose, they differ in scope.

Stock control is only concerned with the stock you are currently holding. The aim is to track every item in the inventory as accurately as possible. Meanwhile, stock management is broader in its scope. It involves forecasting future demand and arranging for timely restocks from suppliers.

Stock control involves knowing where your stock is; stock management is about knowing how you will acquire the stock you need and in what quantity for your business to function. These processes work together to ensure that your company’s inventory is in the right place at the right time and easily available for customers.

Other Aspects of Stock Control

Some essential aspects of stock control include the following:

• ‍Fixed Assets: This is a category of asset that is separate from your production stock and finished goods. Fixed assets are typically used in your production processes and include items such as machinery and equipment. Their maintenance and upkeep represent a hidden cost that some business owners sometimes overlook.‍
• Warehouse Management: Used to make stock easy to find in storage, optimize shipping operations, reduce storage costs, and make the best use of available space across your warehouses.
• ‍Stock Control System: A technological solution that lets a company track its goods accurately during their entire movement through the retail supply chain and automates manual processes like stock-taking.

Understanding these concepts will help you better grasp the finer points of stock control.

Stock Control Systems

While the term stock control system usually implies a technological solution such as inventory management software, this wasn’t always the case. Before digitalization made stock control a simple matter of tracking goods via the cloud, manually taking stock of the entire inventory was the widespread stock control system.

Thankfully, this outdated and error-prone system is being phased out in favor of technology. In fact, 72% of the retailers included in Zebra’s Retail Vision Study declared their intention to invest in automation for inventory tracking and supply chain management.

The main types of stock control systems commonly used today include:

Periodic Inventory System

This method involves taking stock of the inventory at periodic intervals. It’s a relatively low-tech system for stock control since it does not involve remote scanning or advanced inventory management software. This is one of the reasons why the periodic inventory system is so popular with many small businesses. The one major drawback of this system is that since stocktaking is usually conducted manually, there is more room for human error.

Perpetual Inventory System

Inventory is dynamic, with levels constantly rising and falling depending on the rates of shipments coming in from suppliers and customers buying products. Though this makes it harder to track, a fast-moving inventory is a sign your business is doing well. What’s needed at this point is a system that is as dynamic as the stock levels themselves: Enter the perpetual inventory system.

This system continuously tracks stock levels and automatically posts updates regarding their movement. Today’s perpetual inventory systems use tools like barcodes and remote frequency identification (RFID) tags to make following the movement of products easier.

However, relying solely on readings and scans might paint an inaccurate picture of your actual stock numbers if goods were lost or damaged while still accounted for under the perpetual inventory system.

Methods of Stock Control

There are multiple methods of stock control, each outlining a different method of procuring, distributing, and eventually selling your business inventory. Here are some of the most commonly used methods:

• ‍First In, First Out (FIFO)/Last In, First Out (LIFO): In the first method, goods procured earlier will be sold first. In the second, goods that were acquired more recently are sold before older stock.
• ‍Just in Time (JIT): In this method, a business acquires stock only when it is needed according to its production schedule.
• ‍Vendor-Managed Inventory (VMI): This method involves a third-party vendor who manages and owns the inventory up until the point of sale.
• ‍Economic Order Quantity (EOQ): An approach where every inventory order is calculated to optimize warehouse space and optimize production costs.

Benefits of Conducting Stock Control

Stock control is one of the most effective ways to get the most out of your inventory. There are many benefits you can expect with strategic stock control measures. Let’s look at some of the most impactful ones.

1. Customer Satisfaction

Ensuring that your customers are satisfied is undoubtedly the most important outcome of efficient stock control. Stock control enables you to always make your goods available to customers who demand them.

2. Fulfillment Efficiency

Along with processes like stock management and warehouse management, stock control ensures your logistics operations run smoothly. It also helps you plan your distribution network in such a way that any orders can be fulfilled in the quickest time possible.

3. Cost Savings

Many business overheads can be reduced with smart stock control measures. Paying attention to stock control can help reduce carrying costs, storage costs, lost value, and transportation costs.

4. Inventory Accuracy

To make important decisions regarding inventory, you need reliable information. Stock control also acts as a data-gathering exercise, and the findings from your observations can be used to make forecasts about future demand and replenishment orders. With an accurate system tracking your inventory, there are fewer chances of you accumulating stock that will be hard to sell.

5. Reduced Stock-Outs

Stock-outs are embarrassing for any business. Not only does it lead to you missing out on a sale, but it also invites the possibility of your customer moving on to a better stocked competitor. One of the best things about comprehensive stock control measures is that they drastically reduce the odds of you running out of goods while demand is high.

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In Summary

Stock control is an essential business process, whether you operate in e-commerce or physical retail. It benefits businesses and customers alike. With technology, it has become possible to adopt perpetual inventory systems that enable constant tracking of stock movement.

Effective stock control also positively affects other areas of the business, like inventory management, customer relations, and logistics.

Stock control essentially gives you the power to decide how to best deploy your inventory to meet your business goals.

Blockchain technology has emerged as a transformative force across various industries, with logistics standing at the forefront of its revolutionary impact. This groundbreaking technology is reshaping the landscape of supply chain management by bolstering transparency, fortifying security measures, and optimizing operational efficiency.

In this article, we'll delve into the evolution of blockchain in logistics, highlight essential components of a blockchain-enabled supply chain, showcase practical applications in logistics, and break down the business case for adopting and integrating blockchain into current operations.

Evolution of blockchain in logistics

Initial adoption

Blockchain initially gained momentum in logistics due to its inherent potential in fostering transparency and traceability within supply chains. Companies swiftly recognized the technology's capability to create immutable records of transactions and the movement of goods, thereby enhancing the transparency and authenticity of data.

This early adoption validated blockchain's role in securing data and thwarting risks associated with fraud, counterfeiting, and unauthorized modifications within the supply chain. It laid the foundation for blockchain as a pivotal technology, enabling trust and transparency among diverse stakeholders in logistics.

Expansion into advanced applications

As blockchain technology matured, its applications in logistics expanded beyond mere traceability and transparency.

• Supply chain visibility: Blockchain facilitates end-to-end visibility by recording and securely storing every transaction or movement of products across the supply chain. This enhanced visibility empowers stakeholders to monitor items in real time, thus reducing delays and optimizing inventory management.

• Smart contracts and automation: Smart contracts, powered by blockchain, automate and enforce predefined contractual agreements between parties. In logistics, smart contracts streamline processes such as payments, customs clearance, and compliance, thereby reducing paperwork and enhancing operational efficiency.

• Secured data sharing: Blockchain ensures secure data sharing among supply chain partners while preserving data integrity. This feature significantly reduces the risk of data breaches and unauthorized access, fostering secure collaboration within the logistics ecosystem.

Components of blockchain in logistics

Component #1: Blockchain networks

Blockchain networks serve as the fundamental architecture of a blockchain-enabled logistics ecosystem. These networks comprise decentralized and distributed ledgers that record transactions in a secure, transparent, and immutable manner.

Public blockchains, like Bitcoin and Ethereum, offer open access and transparency, while private and consortium blockchains restrict access to authorized participants, ensuring enhanced privacy and control over data.

Interoperability among these networks is crucial for seamless data exchange and collaboration between various entities within the logistics chain.

Component #2: Digital tokens and cryptocurrencies

Digital tokens and cryptocurrencies, native to blockchain networks, play a pivotal role in logistics by facilitating secure and efficient transactions.

Cryptocurrencies, such as Bitcoin and Ethereum, enable borderless and frictionless payments, eliminating intermediaries and reducing transaction costs. Digital tokens, representing physical assets or contractual agreements, streamline processes such as asset tracking, inventory management, and cross-border payments.

These digital assets, empowered by blockchain technology, offer a novel way to tokenize assets, enhancing liquidity and enabling new business models in logistics.

Component #3: Smart contracts and decentralized applications (DApps)

Smart contracts, or self-executing pieces of code stored on a blockchain, automate and enforce predefined contractual agreements between parties. In logistics, smart contracts streamline processes by automating tasks like payments upon delivery confirmation or triggering actions based on predefined conditions.

Decentralized Applications (DApps) built on blockchain networks provide innovative solutions for logistics operations. These applications leverage the decentralized nature of blockchain to offer secure and transparent services, ranging from supply chain tracking to inventory management.

Component #4: Data encryption and security protocols

Blockchain harnesses advanced cryptographic techniques to ensure data security and integrity within logistics operations.

Encryption mechanisms protect sensitive information, rendering it tamper-proof and accessible only to authorized parties. Additionally, consensus mechanisms within blockchain networks ensure agreement among network participants before validating and recording transactions, thereby preventing unauthorized alterations.

Real-world applications of blockchain in logistics

Maersk and IBM's TradeLens platform

Maersk and IBM collaborated to develop TradeLens, a blockchain-based shipping platform aiming to digitize global supply chains. TradeLens provides a transparent and secure platform for various stakeholders, including shippers, port operators, and customs authorities, to collaborate and share real-time shipping data.

The platform leverages blockchain's immutable ledger to create a single source of truth, enabling participants to track cargo, streamline documentation processes, and reduce delays.

IBM and Maersk Demo Blockchain Cross-Border Supply Chain Solution

Walmart's food traceability initiative

Walmart implemented blockchain technology to enhance food traceability in its supply chain. Leveraging blockchain, Walmart can trace the journey of food products from farm to store shelves, ensuring transparency and quick identification of product origins in case of recalls or quality issues.

This initiative significantly improves food safety, reduces the time taken for traceability tasks, and builds consumer confidence in the supply chain's integrity.

Food Safety and Blockchain: Trust Through Transparency

The business case for blockchain in logistics

The market for blockchain in logistics is witnessing substantial growth, with Verified Market Research estimating its value at $3 billion in 2020, projected to reach an astounding $1.6 trillion by 2028. This exponential growth underscores the industry's recognition of blockchain's transformative potential in optimizing logistics operations.

Considerations for implementing blockchain in logistics

How will blockchain technology enhance our supply chain's transparency and security?

Integrating blockchain technology into logistics guarantees enhanced transparency by maintaining an immutable ledger of transactions and movements. This ensures a secure and tamper-proof record of every interaction within the supply chain, minimizing the risk of fraud, errors, and unauthorized alterations.

What is the expected ROI and payback period for implementing blockchain solutions?

The ROI associated with blockchain implementation in logistics varies based on factors like scale, technology utilization, and specific applications. Typically, blockchain solutions offer cost savings through improved transparency, reduced administrative overheads, and minimized risks. The payback period varies, often ranging from a few months to a couple of years, depending on the achieved operational efficiencies and cost reductions.

How will blockchain seamlessly integrate with our existing systems and infrastructure?

Assessing compatibility between blockchain technology and current logistics systems is crucial. Seamless integration ensures uninterrupted data flow, enhances collaboration among stakeholders, and mitigates disruptions. Staff training and potential infrastructure upgrades should be considered for a smooth integration process.

Challenges with blockchain technology in logistics

There was a lot of hype around blockchain in the logistics space when it emerged as a potential solution for tracking movements within modern supply chains. 

As we wrote about in a previous newsletter, organizations like the Blockchain in Transportation Alliance (BiTA) formed that aimed to fix tracking inefficiencies in logistics with distributed ledger technology. Members of BiTA included companies Anhesuer-Busch, Bridgestone, and Target, as well as logistics providers like FedEx, J.B. Hunt, and Werner.

In total, there were over 450 members of BiTA and the future of blockchain in logistics seemed bright. But there was one problem: 50% or more of industry professionals were still using pen and paper or spreadsheets to manage logistics and their supply chain.

For the same reason BITA failed as an organization, individual companies fail to effectively integrate blockchain technology into their logistics operations. There are also other challenges that mid to enterprise logistics companies face when adopting blockchain technology, including:

• Cost and complexity: Implementing blockchain technology can be expensive and complex. Mid to large-sized logistics companies often have established systems and processes that would need significant overhaul, resulting in high costs and operational disruptions.

• Lack of expertise: There's a scarcity of blockchain experts, and for many logistics companies, finding the right talent to implement and manage blockchain technology is a challenge.

• Scalability issues: Blockchain technology, particularly in its current forms, can have issues with scalability. Handling large volumes of transactions quickly and efficiently is critical for logistics companies, and blockchain might not always meet these demands.

• Regulatory uncertainty: The regulatory environment for blockchain is still evolving. Companies might be hesitant to adopt a technology that could face future regulatory hurdles.

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Navigating the integration of blockchain in logistics

For companies that decide to implement blockchain technology, there are some basic high-level steps to follow to increase the chances of success.

Step 1: Identify opportunities for blockchain integration

Initiating the integration process requires a thorough assessment of existing logistics operations. It involves examining various facets of the supply chain, from procurement and manufacturing to warehousing and distribution. This in-depth analysis helps identify potential areas where blockchain integration can significantly enhance transparency, traceability, and efficiency.

Step 2: Develop a strategic implementation plan

Developing a meticulous plan is crucial for a successful integration of blockchain technology into logistics. This strategic blueprint outlines specific objectives, defines the scope of implementation, and sets clear milestones and timelines aligned with broader business strategies.

The plan addresses operational challenges directly, ensuring a seamless integration of blockchain into existing workflows without disrupting ongoing operations. It delineates the selection criteria for appropriate blockchain solutions, whether it involves private, public, or consortium blockchains, based on the unique requirements identified during the analysis phase.

Step 3: Collaborate with blockchain solution providers

Forge strategic partnerships with reputable and experienced blockchain solution providers specialized in logistics. Collaborating with these experts is pivotal in selecting suitable technologies and executing effective integrations tailored to the operational requisites identified in the earlier stages.

These partnerships extend beyond merely selecting the technology. They involve close collaboration to customize the blockchain solution according to the specific needs of the logistics operations. The providers offer technical expertise, assist in designing and implementing blockchain protocols, and ensure seamless integration with existing systems and infrastructure.

Step 4: Pilot and scale

Implementing pilot projects serves as a critical phase in the integration process. These pilot initiatives allow logistics companies to test the selected blockchain solutions in controlled environments or specific segments of their operations. They offer invaluable insights, enabling necessary adjustments, enhancements, and optimizations before scaling up the technology across wider logistics operations.

This comprehensive exploration illustrates the substantial impact of blockchain technology on the logistics industry. Its evolution, components, applications, business case, considerations, and integration steps all play a crucial role in optimizing logistics operations. As logistics continues to evolve, the integration of blockchain stands as a pivotal step towards a more efficient and transparent supply chain ecosystem.

Augmented Reality (AR) is emerging as a transformative force in various sectors, with logistics being one of the primary benefactors. This cutting-edge technology is reshaping the supply chain by enhancing visibility, improving accuracy, and creating interactive experiences.

AR equips logistics with a blend of digital and physical worlds, overlaying digital information onto the real world. This integration is revolutionizing the way logistics companies approach tasks such as warehousing, transportation, and delivery.

In the retail sector, AR is proving to be a game-changer within logistics. By integrating AR technology into warehousing and inventory management, retailers are streamlining their operations significantly. For instance, AR-enabled devices allow warehouse workers to visualize inventory information in real-time as they navigate through shelves, expediting the picking process and minimizing errors.

This article will explore the evolution of AR in logistics, highlighting the key components of an AR-enabled logistics ecosystem and showcasing real-world applications. The aim is to understand how AR is not just an innovative addition but a necessity in the evolving landscape of logistics.

Evolution of AR in Logistics

Early adoption

Initially, AR found its application in logistics primarily for warehouse operations. Companies began using AR for tasks like picking and placing goods in warehouses. With the help of AR headsets, workers could see digital overlays on physical objects, which guided them to the right location and provided information about the items.

This early adoption of AR showcased its potential to streamline warehouse operations, making them faster and reducing errors. It also demonstrated AR's capability in training and guiding personnel through complex logistics environments.

Expansion into advanced applications

As AR technology matured, its applications in logistics became more comprehensive and sophisticated.

1. Enhanced training and maintenance: AR provides interactive training modules for logistics staff. It allows for virtual simulations of real-world scenarios, enabling workers to gain experience in a controlled, digital environment. Additionally, AR aids in equipment maintenance by overlaying digital instructions and diagrams, helping technicians perform repairs and maintenance efficiently.
2. Improved delivery and navigation: In transportation, AR assists drivers with navigation by providing real-time information overlay on their field of vision. This technology can highlight the optimal routes, alert drivers to potential hazards, and offer real-time traffic updates.
3. Interactive loading and unloading: AR helps in loading and unloading processes by visualizing the best way to arrange packages in a vehicle or container, maximizing space utilization and ensuring stability.

Components of AR in logistics

Component #1: AR devices

AR devices in logistics include a range of hardware designed to superimpose digital data onto the physical world. 

The most common are headsets and smart glasses, like Microsoft HoloLens and Google Glass, which offer hands-free operation, crucial for tasks requiring manual handling. These devices come equipped with built-in displays, cameras, and sometimes even voice control, allowing workers to interact with the digital overlays without interrupting their workflow.

Mobile devices, such as tablets and smartphones, are also widely used for AR in logistics. They are more accessible and can be easily integrated into existing operations. These devices leverage their cameras and screens to display AR content, providing a flexible and cost-effective solution.

The effectiveness of these devices depends on factors like field of view, battery life, comfort, and the ability to work in various lighting conditions. Advancements in AR device technology continue to address these challenges, making them more adaptable to the diverse environments found in logistics.

Component #2: Software applications

Software applications are the backbone of AR systems in logistics. These applications are designed to process data from various sources and create the digital overlays seen through AR devices. They range from simple visual guides to complex interactive systems that can provide real-time information about inventory, navigation, and task management.

These applications are often customized to meet specific logistics needs. For example, in a warehouse, an AR application might display the most efficient route to pick items, while in transportation, it could show real-time traffic updates and delivery information. 

Integration with existing Warehouse Management Systems (WMS) or Transportation Management Systems (TMS) is also crucial, allowing for seamless data flow and maximizing the utility of AR.

Component #3: Sensors and cameras

Sensors and cameras play a pivotal role in the functionality of AR in logistics. These components are essential for capturing information about the surrounding environment and the user's interactions within it. For instance, depth sensors and cameras help in understanding the layout of a space, facilitating accurate overlay of digital information.

In logistics, these sensors can be used to track the movement of goods and equipment, ensuring accurate placement of virtual elements in the physical world. They also enable gesture and voice recognition, allowing for intuitive interaction with the AR system. The precision and reliability of these sensors directly impact the effectiveness of the AR experience.

Component #4: Data analytics

The vast amount of data generated by AR systems in logistics is a goldmine for optimization and decision-making. Data analytics tools are employed to process this data, offering insights into operations like inventory levels, equipment status, and workflow efficiency.

These analytics can be used for predictive maintenance, identifying potential equipment failures before they occur. They also help in optimizing routes for transportation, reducing fuel costs and delivery times. In warehousing, data analytics can improve space utilization and inventory management, leading to increased efficiency and reduced operational costs.

The integration of AR with Big Data and AI technologies is further enhancing the capabilities of AR in logistics, providing more sophisticated analytics and predictive models. This combination allows logistics companies to move towards a proactive rather than reactive management style.

Real-world applications of AR in Logistics

DHL improves picking efficiency by 25% with augmented reality

DHL has made significant strides in warehouse efficiency with its successful augmented reality (AR) pilot project in a warehouse in the Netherlands. In collaboration with Ricoh and Ubimax, DHL employed smart glasses and AR to implement 'vision picking' in their warehousing operations. This innovative approach enabled warehouse staff to be guided through their tasks with visual cues displayed on smart glasses, streamlining the picking process and minimizing errors. 

This pilot project not only proved the practical value of AR in logistics but also achieved a remarkable 25% increase in picking efficiency. Jan-Willem De Jong, Business Unit Director Technology at DHL Supply Chain Benelux, emphasized the transformative impact of 'vision picking', highlighting its role in enhancing productivity and offering substantial benefits to their customers. This development marks just the beginning of DHL's journey in integrating AR technology across various supply chain segments.

The pilot aimed to evaluate the technology's benefits and limitations over three weeks. During this period, warehouse staff in Bergen op Zoom used head-mounted displays like Google Glass and VuzixM100, which presented essential task information such as product location and quantity. This experiment involved 10 order pickers handling over 20,000 items and completing 9,000 orders. The result was a significant improvement in speed and accuracy, with staff performing tasks faster and error-free. 

XPO transforms warehouse efficiency with AR and VR

XPO's adoption of AR in its warehouses has been particularly impactful as it has allowed for the display of diagrams and essential information directly in the field of vision of its workers. This innovative approach aids in accurately picking and collecting goods, as described by Mario Harik, XPO’s Chief Information Officer. By ensuring workers validate the correct object during the picking process, AR technology significantly reduces the likelihood of errors and improves overall operational efficiency.

In addition to AR, XPO Logistics has also embraced VR for both training and marketing purposes. The use of Oculus for Business headsets in their training programs has led to notable improvements in learning retention and productivity. Trainees experience a repeatable 3D environment that not only reduces the time required to reach target productivity levels but also minimizes waste and errors in cross-dock and driver operations.

The business case for AR in logistics

AR is making significant inroads in the logistics industry, with its market poised for exponential growth. Precision Reports estimates that the global AR in logistics market, valued at $35 billion in 2021, is projected to soar at a substantial CAGR of 39% and reach $246 billion by 2027. This escalating trajectory underscores the industry's recognition of AR's transformative potential.

Considerations for implementing AR in logistics

How will Augmented Reality (AR) technology enhance our operational efficiency and accuracy?

Integration of Augmented Reality (AR) technology into logistics promises a significant leap in operational efficiency. By providing real-time data overlays on asset location, inventory monitoring, and task guidance, AR enables improved resource allocation, minimized downtime, and heightened accuracy in logistics operations. This, in turn, amplifies overall productivity and operational effectiveness.

Which devices can we use for augmented reality?

When implementing AR solutions into logistics, there are several pieces of hardware to consider. Various logistics software providers offer AR hardware and software for specific use cases while major companies like Apple also offer AR technology. For example, the Apple Vision Pro was recently released for a variety of business use cases and could eventually support warehousing operations in retail and other industries.

What can we use these AR devices for?

One key application involves optimizing the receiving process. By utilizing mobile devices, headsets, or glasses coupled with a person at the receiving desk, AR facilitates the automation of this operation. This is achieved through the integration of shipping label APIs, bills of lading APIs, and applications like the PackageX Receive app that can be integrated with Apple Vision Pro and other devices.

What is the expected return on investment and the payback period for implementing AR solutions?

The ROI associated with AR implementation in logistics is contingent on multiple factors, including the scale of deployment, types of AR technology utilized, and specific application scenarios. Typically, AR solutions contribute to cost savings through heightened workforce efficiency, reduced errors, and enhanced task completion times. The payback period varies, often ranging from a few months to a couple of years, determined by the attained efficiency gains and cost reductions.

How will AR technology seamlessly integrate with our existing systems and infrastructure?

Critical assessment of the compatibility between Augmented Reality (AR) technology and existing logistics systems and infrastructure is essential. Seamless integration of AR solutions with current logistics management systems, Warehouse Management Software (WMS), and operational tools is pivotal to ensure uninterrupted data flow and to avoid disruptions in ongoing processes. Additionally, considerations for staff training and potential infrastructure upgrades should be factored in to support the seamless integration and utilization of AR technology.

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Navigating the integration of AR in logistics

Step 1: Identify areas for AR integration

Initiate the process by conducting a comprehensive analysis of logistics operations to pinpoint potential areas benefiting from AR integration. Focus on enhancing real-time asset tracking, optimizing inventory management, and refining warehouse operations through AR-enabled devices.

Step 2: Craft a strategic implementation plan

Develop a meticulous plan delineating objectives, targeted AR technologies, and anticipated outcomes aligned with broader business strategies. Addressing operational challenges directly within this plan ensures a seamless AR integration into existing workflows.

Step 3: Collaborate with AR solution providers

Forge partnerships with experienced AR solution providers well-versed in logistics. These collaborations are pivotal in selecting suitable technologies and executing effective integrations tailored to your specific operational requisites.

Step 4: Pilot and expand

Implement pilot projects to test selected AR solutions in controlled environments. These pilots furnish crucial data and feedback, enabling necessary adjustments before scaling up AR technology across wider logistics operations.

The integration of AR heralds a transformative era in logistics, presenting a paradigm shift in operational management and execution. Embracing AR not only amplifies operational efficiency but also fosters a more responsive, transparent, and customer-centric supply chain. Logistics companies poised to harness the potential of AR are set to lead the charge toward a more innovative and efficient future.

This article that features PackageX was originally published on Microsoft Start.

In today's highly volatile economy, we see the consequences of inaccurate inventory management and demand forecasting in real-time. This is especially true in the retail sector, where supply chains are under immense pressure. Around 43% of small businesses in the U.S. do not track inventory or stock levels which increases the risk of stockouts and causes delays in order fulfillment. The current inflationary environment is putting unprecedented strain on businesses, and those who cannot accurately predict or manage their inventory are experiencing the effects most keenly.  

Inventory management is a serious issue for any business, but it is especially critical for retailers who rely on just-in-time delivery to keep their shelves stocked. If retailers cannot accurately forecast demand, they risk overstocking or, worse, running out of inventory entirely. This can have a devastating effect on sales and profits, leading to giant markdowns. The average retail business in the U.S. has an inventory accuracy of just 65%, which is ridiculously low. As per Zippa, 69% of companies lack total visibility in their supply chain and inventory management, which explains the reason behind the high rate of inaccuracies.

Therefore, accurate forecasting and effective inventory management are critical for businesses to weather this storm. One of the best solutions to this problem is "Inventory Management Automation," which can work wonders for your businesses. Automated inventory management systems help retailers and wholesalers keep track of their inventory in real time. They streamline workflows, making the process faster and more efficient while saving valuable time. It can be a valuable source of empowering the logistics workforce instead of replacing them. 

Inventory Management Crisis: An Overview   

Some of the biggest U.S. retailers are getting hit by overstocking as they rushed to restock depleted inventories early in the pandemic. Stores like Target, Walmart, and Macy's are struggling with large stockpiles of apparel, workout equipment, and furniture because they shifted from a "just-in-time" to a "just-in-case" inventory management strategy. Sneaker giant- Nike reported that it did not have enough inventory to fulfill consumer demand for the last two years, but now it has a surplus of inventory. For this reason, it had to step up discounts to clear out the goods. Its inventories rose 44% to $9.7 billion, and the profit margin was squeezed due to high discounts.

If we talk about the inventory-to-sales ratio, it has remained at historically low levels for the retail sector, but the sales have escalated. According to the latest data shared by the U.S. Census Bureau, the inventory-to-sales ratio for U.S. retailers in August 2022 was 1.24, while retail sales reached $598,380. 

The eCommerce giant Amazon also got into trouble due to a supply and demand mismatch. During the pandemic, Amazon doubled its warehouse capacity and is now struggling with overcapacity. Therefore, companies need to improve their inventory intelligence to prevent the losses caused by supply chain disruptions.   

Automation in Inventory Management  

Inventory management automation can solve a variety of problems, like managing the stock, forecasting demand, and planning for unforeseen events. In this way, businesses can operate smoothly and handle disruptions in the supply chain effectively. Nowadays, the inventory management software market is growing rapidly as businesses have realized how important automation is. The global inventory management software market is projected to reach $2.56 billion at a CAGR of 6.62% by 2029. This automated inventory software helps businesses automate their inventory operations, including manifest matching, item management in the warehouse, order fulfillment, and shipping. 

Is Automation Technology Going to Replace Humans?  

Advancements in robotics, machine learning, and artificial intelligence have marked a new age of automation, but technology can never replace human labor across industries. Humans have traits like cognitive thinking that can't be reproduced in robots and other technologies. Similarly, humans cannot replicate the accuracy, precision, consistency, and memory that technology offers. This indicates that humans and technology are meant to complement each other, not replace each other. 

Businesses can only keep pace with today's economy by incorporating AI and machine learning into their workforce. This harmonious union is essential for the retail sector because they have to meet modern consumer demands, which is why retailers always look for technological solutions to increase efficiency and productivity.

Let's take the example of a warehouse with an average size of 185,000 square feet. Now imagine being a worker who has to match the inventory against the manifest, enter data manually, check inventory levels and identify inaccuracies constantly. It is a complex and tedious task for humans. Here inventory management technology can help humans monitor inventory levels, ingest data and generate data that guides management in decision-making.

How Does Inventory Management Automation Work? 

Inventory automation works by collecting real-time data throughout the supply chain and transforming it into actionable insights using advanced software. It tracks products via methods like RFID tags, IoT sensors, or Bluetooth, depending on the level of accuracy and scale required. Networking technologies, such as Wi-Fi, 4G/5G, or private 5G, ensure seamless data flow to inventory management software. This software analyzes data, forecasts demand, and automates tasks like reordering stock and preparing for seasonal shifts. Integrated with systems like POS or order management, it provides real-time visibility across sales channels, enabling businesses to optimize inventory, minimize errors, and increase efficiency.

How Can Tech-Human Coexistence Improve Inventory Management?  

While some businesses invest in inventory management automation, many still lag. According to Zippa, almost 67.4% of supply chain managers use Excel spreadsheets as an inventory management tool which consumes a lot of time and effort. Here inventory management software can significantly help because it helps the workforce do their job better and amplifies the human element.  

Below are some advantages of inventory management automation that will convince you to invest in inventory management software and empower your workforce. 

1. Automation saves you time and money          

Manual labor costs a lot of money and time, especially in warehousing and inventory management. Counting products manually and maintaining spreadsheets is a laborious task for your staff. Also, these tasks have greater room for human error. Almost 65% of a typical U.S. warehouse's budget is consumed on manual labor, increasing by 3% yearly. ABI Research suggested that only by using RFID technology for inventory management can a business save thousands of dollars based on its inventory size.  

This is where inventory management software helps. It removes manual processes from inventory management, reduces human error, saves time & money, and increases your staff's productivity and efficiency.  

2. Automation helps in demand forecasting  

Automated inventory management systems helps you keep track of stock changes, making trends more visible, and you can prepare for the next season. It enhances the accuracy in demand forecasting, due to which your inventory levels keep up with the demand even in peak seasons when the order volume is significantly high.  

3. Automation prevents stock-outs & overselling   

Stock-outs and overselling are two major challenges of eCommerce businesses that do not have an accurate handle on their inventory. You can manage your inventory across all sales channels with inventory management software that works as an automated stock control system. In this way, you know when the stock needs to be replenished.  

4. Automation provides real-time access to data   

An inventory management software helps your workforce know the location of every item, understand how well your warehouse is stocked and generate reports at any time. All these features provide you with a competitive advantage when it comes to managing inventory. 

5. Automation increases scalability   

Automated inventory management provides scalability to your business. You can adapt to market changes quickly and adjust your stock levels accordingly. Scalability is essential for businesses that depend on events like Black Friday. 

6. Automation increases inventory visibility  

Optimizing inventory visibility is one of the most critical improvements businesses need to make. In a supply chain network where order fulfillment occurs across multiple channels, inventory management software can reveal the complete availability of inventory across all channels, creating a better fulfillment experience. It helps synchronize inventory across different sales channels and locations, which improves visibility and allows businesses to maintain accurate buffer inventory levels.  

Case in point: A third-party logistics company (3PL) that supports 5-6 different eCommerce brands and covers inventory storage, fulfillment, and returns management for them is a perfect example to explain how automated inventory management is going to uplift the workforce without snatching their jobs. Managing fulfillment for 5-6 retailers means storing a lot of inventory and managing thousands of SKUs. With manual systems, the staff has to match the inventory against the manifest, log them by hand, pick & pack the order manually and ship it to the customer. It takes a lot of time to process each order and increases the risk of error. Automated inventory management can streamline all these operations, and the human burden can be significantly reduced.

How to Choose the Right Inventory Management Software?  

Enterprise-level businesses using spreadsheets and outdated manual systems for inventory tracking must invest in third-party inventory management software. However, not every software is built the same. Therefore, businesses should choose the inventory management software that suits their needs, varying from business to business. 

Enlisted below is the criterion that inventory management software should meet: 

• The software should easily connect with any enterprise resource planning software (ERP), customer relationship management software (CRM), or warehouse management system (WMS).  
• It should work closely with your existing order management process. 
• It should provide real-time updates on inventory positions and orders.  
• The inventory management system should be able to add or remove warehouses quickly.  
• It should provide real-time inventory visibility and support BOPIS, Curbside pickup, and Ship-from-store models.   
• The inventory management software should offer the latest features, such as inventory receiving through a smartphone label scanner, bulk inventory import or export, asset tracking, managing storage, pick/pack, and shipping operations, creating digital manifests, and sharing inventory visibility with the customers.

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Ready to Empower Your Workforce?  

In a world where technology is changing how we do business, it's important to remember that humans are still the most important part of any company. After all, it is human ingenuity and creativity that drives innovation. While inventory management automation can streamline processes and allow employees to focus on more creative tasks, it's important to remember that these systems are only as good as the people who design and operate them. With the right team in place, inventory management automation can empower humans instead of replacing them.

Inventory management automation, such as that provided by PackageX, is changing the game for retailers and warehouses. By leveraging the platform's flexible first-to-last yard logistics infrastructure, retailers can digitize their manual workflows, streamline their operations and unlock a host of new benefits. PackageX Inventory provides retailers a single source of truth for inventory and stock-level accuracy across the logistics ecosystem. It allows retailers to unify their inventory management, create digital manifests and automatically match incoming inventory to the ordered lists. In short, PackageX's API-firstheadless logistics cloud is a powerful tool that allows businesses to digitize and connect logistics across all industries.

Therefore, instead of fearing automation, businesses should embrace it as a tool to empower humans and improve their operations. By combining the strengths of human and machine intelligence, they can create a more efficient, sustainable, and human-centered supply chain ecosystem.

FAQs

What is automation in inventory management?

An automated inventory management system is a smart tool that helps businesses track their stock levels with minimal effort. Reducing the need for manual intervention ensures a proactive approach to avoiding common challenges like stockouts and excess inventory.

How do I create an automated inventory management system?

When choosing an automated inventory management software, it’s important to keep a few things in mind. Start by looking at your workflow—think about your products, where you need to track them, and the insights you want from automation. Also, make sure to consider the key features your business needs for a smoother process.

What is AI inventory management software?

AI improves traditional inventory management by using data analysis, machine learning, and predictive analytics. With these tools, AI can optimize key tasks like demand forecasting, supplier management, and stock replenishment, making the entire process smarter and more efficient.

Which technology can help you be more efficient while ordering inventory?

Businesses can streamline inventory tracking by using barcodes or RFID tags on their products. These tools make it easy to monitor stock levels, track product movements, and keep tabs on expiration dates. This approach not only enhances efficiency and accuracy but also improves traceability and accountability throughout the inventory management process.

Every leader who works in ecommerce knows that one of the fastest ways to lose a customer is to fail on order fulfilment. Think about it from the point of view of a consumer. Few things are more frustrating than seeing a company advertise a product and going to their website to purchase it, only to receive the dreaded message, “The item you ordered is not in stock.”

Every ecommerce team is dedicated to retaining acquired customers, growing their relationship with them and improving customer lifetime value.  One of the primary requirements to doing so is the implementation of effective inventory management practices.

Inventory management is the process of overseeing a company’s resources and assets from the point of acquisition to the point of sale. It includes the goods sold to customers, as well as all the raw materials and component parts needed for their production.

The chief concerns of inventory management are purchasing materials at cost-efficient prices, storing goods and assets safely, and shipping them in a timely manner. The ideal inventory management strategy for your business will depend on the type of goods you sell and the nature of your business. And developing a process that works for your company will lead to many benefits.

Inventory Management: A Key Ingredient for Success

Unfulfilled orders aren’t the only problem caused by poor inventory management. Production delays, wasted stock, and sunk costs are all a result of companies failing to manage their assets properly.

Despite these dangers, many companies continue to persist with archaic and ineffective inventory methods that are poorly suited to the fast-moving and globalized modern supply chain model. As many as 67% of the respondents to a 2018 survey reported still using Excel as a tool for supply chain management!

On the other hand, cracking the inventory management code helps companies improve their performance in several key areas. Let’s look at some of the most important benefits of effective and accurate inventory management:

Increased Revenue

With proper inventory management, you will always have stock to fulfill any order that comes through, regardless of purchase channel. You won’ to supply shortages and instead drive up your sales numbers because of happy shoppers.

Inventory management sets businesses up to consistently meet the market’s demand for their products.

Lower Costs

Storing excessive non-moving goods is a waste of space and money. Warehousing dead stock is an avoidable expense and can be avoided with proper inventory management strategies. By minimizing the amount of inventory in storage and ensuring that it is sold, you can save on warehouse expenses, handling costs, and lost revenue due to obsolete or expired goods.

Better Shopper Relations

The main goal of inventory management is to ensure that there is always stock available for paying shoppers. And as shoppers come to depend on your company and know it can always be relied on to fulfill an order, they will appreciate your practices and want to place more orders in the future. Satisfied shoppers are loyal customers, and effective inventory management is one way to guarantee their satisfaction.

Popular Inventory Management Techniques

Inventory management combines analytics, logistics, and fieldwork. It’s impossible to declare any single inventory management model as the most effective since each is meant for a certain type of business.

While a grocery store has to move its inventory at a fast clip and sell out all fresh vegetables by the end of the day, a car manufacturer can afford to sit on showroom-ready vehicles for months before the stock becomes unsellable. Each business has to find the right inventory management strategies that suit its industry as a whole and its organization in particular.

Here are some widely used inventory management techniques you can apply to your own company:

1.     Economic Order Quantity (EOQ) and Minimum Order Quantity (MOQ)

There are two ways to deploy inventory management based on the raw materials and products you purchase for your business. The first is EOQ, and the second is MOQ.

EOQ is a model where a company determines the optimal inventory levels needed for each production cycle in advance and then places the order to its suppliers. The ideal cost of purchasing this inventory is calculated by considering market demand, sales forecasts, and holding costs.

The MOQ model involves purchasing the smallest amount of goods and materials needed to keep operations running and maintaining the lowest possible inventory costs. More expensive items will have a lower MOQ, while cheaper, mass-produced items will have large MOQs.

2.     ABC Analysis

The ABC analysis method of inventory management divides inventory items into three categories based on their perceived value. The organization then maintains a certain minimum stock level in each category based on their requirements.

The three categories used in ABC analysis are:

• Type A: These valuable items only comprise 20% of the total inventory but account for up to 80% of its overall value.
• Type B: Items of medium importance, which account for 30% of total inventory and 15% of its value.
• Type C: Comprising low-cost items that make up around 50% of the total inventory but just 5% of its value.

3.     Just in Time (JIT) Inventory Management

One way to prevent inventory from turning into dead stock is to hold it for as little time as possible. The JIT method of inventory management is an approach that takes this principle to the extreme—this is when companies only order inventory when it is needed.

By ordering stock as needed, the only inventory on hand is what is on demand. It’s a dynamic method that can lower inventory-related costs, but it is perilous and can also backfire. Without reliable suppliers and logistics partners, there is a considerable risk of falling short on stock to meet shopper orders. That’s why companies using the JIT inventory technique need to track their existing stock and market demand at all times.

4.     Safety Stock

The philosophical counterpart to the JIT method is the safety stock approach. It involves maintaining a stockpile of inventory that can be used to meet excess demand or in the case of a supply chain breakdown.

The rationale behind this technique is that it is better to have inventory and not need it than the other way around.

Though maintaining safety stock insures against shortages and supply disruptions, it also has drawbacks. Over-ordering can leave you with dead stock that can be difficult to unload. This is why companies need to carefully calculate the right amount of safety inventory based on factors like demand variability and holding costs.

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5.     First In, First Out (FIFO) and Last In, First Out (LIFO)

If you are managing your inventory based on the order in which the goods are being sold, there are two main approaches: FIFO and LIFO. The choice of which to use in your business depends on the kind of goods you sell.

In FIFO, older inventory is sold first. This ensures that the items do not remain in storage for so long that they expire or that consumer trends pass by entirely while in the warehouse.

The LIFO method takes the opposite approach, selling the newest inventory first. This ensures shoppers are receiving the freshest possible items. It’s best to use LIFO when dealing in perishable goods with very short shelf lives, and FIFO is better suited for long-lasting products that could increase in value over time.

6.     Demand Forecasting

No successful inventory management strategy is complete without an element of demand forecasting. With projected sales, you estimate how much inventory your company needs in order to meet the expected demand.

These forecasts must be based on historical sales data and variables based on ongoing trends and market forces.

Of course, it’s difficult to predict how shoppers will behave in the future, which is why demand forecasting requires periodic adjustments after each production and sales cycle. Relying on poorly researched or outdated information could lead to over-ordered inventory for the next cycle or a lack of stock to sell despite having outstanding orders.

Improve Inventory Management with the Right Tools

In our fast-moving world, manual inventory management is incredibly inefficient and no longer a practical choice. Companies must use robust software tools with features that can be used to solve their inventory management problems.

From digitizing inventory databases to optimizing fulfillment strategies, there are software as a service (SaaS) solutions for nearly every element of inventory management.

If you are looking to modernize your inventory processes, inventory management software like PackageX is what you need. It allows you to easily create digital inbound manifests, streamline dock-to-stock workflows, and gain real-time inventory visibility. Tools like PackageX add value to your business and increase the effectiveness of your chosen inventory management techniques.

Learning the best way to move goods and resources around will lead to more sales, lower costs, and happier customers. All you have to do is master the right mix of inventory management techniques and partner with a reliable company to take your business to the next level! 

Barcodes are the stripes of varying widths printed on products and packages, representing data by varying the spacings and width of parallel lines. They are a key technology in logistics, critical for managing inventory, tracking shipments, and ensuring the accuracy of deliveries. Barcodes and logistics together drive efficiency and scalability in the global movement of goods.

In this article, we delve into the role of barcodes in logistics operations and how they reduce errors, speed up processes, and improve inventory management to expedite trade and commerce.

The evolution of QR codes in logistics

The early adoption of barcodes

The journey of barcodes in logistics began in the 1970s, but it wasn't until the subsequent decades that their full potential was realized in the industry. Initially used to manage retail inventories, barcodes quickly became valuable for tracking shipments. The adoption of Universal Product Codes (UPC) and the International Article Number (EAN) allowed for a standardized system of identification that streamlined global trade processes.

Traditional methods of barcode scanning

To work, barcodes required scanning devices that employed various techniques and hardware for decoding and capturing barcode information. Two primary methods prevail in this landscape: laser-based scanners and image-based scanners.

Laser-based scanners

Laser scanners are the more conventional option. They utilize a laser beam to read the barcode by reflecting light off the black and white bars of the code. These scanners typically feature a single line of laser light that sweeps across the barcode, detecting the variation in reflected light to interpret the encoded information. They are adept at scanning linear barcodes and are often employed in retail environments due to their quick scanning capabilities.

Image-based scanners

Image-based scanners, on the other hand, leverage a different technology. They capture an image of the entire barcode using a built-in camera or imaging sensor. Advanced algorithms within the scanner then process this image to decipher the barcode data. This method accommodates various barcode types, including 2D barcodes like QR codes, and offers more versatility in scanning different surfaces, damaged, or poorly printed barcodes.

Modern applications with QR codes in logistics

QR codes emerged as a sophisticated evolution of barcodes, capable of storing more information and being scanned from any direction, which increased their utility in logistics. The introduction of smartphones and tablets equipped with cameras has made scanning these codes more accessible and flexible. Logistics companies have adapted by using these mobile devices to manage inventory and execute shipping and receiving operations, eliminating the need for bulky, specialized barcode scanners.

Here are some modern applications that barcodes, QR codes, and mobile scanners support:

• Inventory management: By scanning barcodes with automated scanning devices, logistics operators can instantly record stock levels, reduce the chance of human error, and enable real-time inventory updates. This is especially crucial for just-in-time inventory systems, where accuracy and timing are essential.

• Shipment tracking: Scannable codes transform the tracking of shipments, providing live updates as goods move through the supply chain. These updates are crucial for logistics providers and customers alike, enhancing transparency and accountability in delivery services.

• Sorting and routing: Automated sorting systems use barcodes and QR codes to direct packages through distribution centers. This technology streamlines the process by quickly determining the destination of each package, improving the speed and reliability of package sorting operations.

Components of barcodes in logistics

Component #1: Standardization

The efficacy of barcodes and QR codes in global logistics is deeply rooted in standardization, with organizations like GS1 providing a series of guidelines that ensure these codes meet international standards. This uniformity allows for interoperability, enabling different devices across the globe to scan and interpret barcodes and QR codes consistently. 

The efficiency of standardized codes accelerates the scanning process, minimizes errors, and facilitates quick data entry. As businesses grow, standardized barcodes and QR codes enable scalability, allowing them to integrate with systems in new markets without extensive reconfiguration. 

Component #2: Mobile scanning technology

The advancement of mobile technology has transformed the logistics sector, making barcode and QR code scanning more accessible and cost-effective. 

Modern smartphones and tablets, equipped with high-resolution cameras, decode barcodes and QR codes quickly and accurately. These devices offer versatility by combining the capabilities of scanning, data analysis, communication, and GPS tracking into one tool. Moreover, the ease of use afforded by the user-friendly interfaces on these devices shortens the training period and simplifies the adoption process.

Companies with integrated barcoding systems that enable users to scan barcodes rather than type numbers are commonly achieving 99 percent data accuracy.

Component #3: Data management systems

Scanning barcodes and QR codes is a critical first step in the data capture process within logistics systems. 

The information gleaned from these scans is channeled into data management systems, which serve as the operational nerve centers for logistics operations. They monitor inventory with real-time updates that enable swift responses to stock changes. Shipment tracking also becomes more transparent and provides visibility of an item's journey from the warehouse to the customer.

Component #4: Integration with other technologies

Barcodes and QR codes are often integrated with RFID and IoT technologies to create a comprehensive tracking system that enhances the reliability of data. 

RFID tags provide a secondary verification method that augments the information from barcodes. When paired with IoT devices, barcodes and QR codes can trigger the collection and logging of detailed information, offering a granular view of the supply chain. This integrated approach to logistics solutions allows for consolidated data from multiple sources, granting stakeholders a wide-ranging view of their operations. 

Real-world examples of barcodes in logistics

Scandit enables BYOD grocery scanning for Shipt contractors

In response to a surge in demand during the pandemic, Shipt, a delivery company specializing in groceries and essential goods, swiftly adapted its operations with Scandit's Barcode Scanner SDK. Facing a threefold increase in orders due to customers avoiding in-store shopping, Shipt needed a scalable solution to accommodate fluctuating demand. 

The key lay in enabling their workforce, composed of new and temporary contractors, to perform high-speed and accurate barcode scanning on personal smartphones, or their “bring-your-own-devices” (BYODs). Scandit's solution became instrumental in this transition, ensuring swift scalability, superior user experience, and minimal training requirements for contactless order picking.

The scanning technology not only facilitated rapid scaling by integrating seamlessly into the existing shopper app but also empowered independent contractors to perform diverse workflows, from order picking to proof of delivery on their smartphones.

Amazon uses mobile barcode scanners for efficient warehousing

Amazon's sophisticated use of mobile barcode scanners in its warehouse operations exemplifies the company's innovative approach to inventory management, a cornerstone of its success as the world's largest online retailer. 

In one of their colossal distribution centers, workers use handheld scanners to meticulously track inventory. On a regular day, the center processes over 1,200 tons of items, with around 100 delivery trucks docking to unload goods that are promptly checked, sorted, and scanned into Amazon's system. 

These barcode scanners are pivotal, guiding workers to the most efficient route through the seemingly chaotic warehouse layout to pick and process orders, significantly enhancing speed and efficiency in fulfilling customer demands.

PackageX uses barcodes to digitize and automate logistics

At PackageX, we use barcode and QR code technology — along with our OCR (Optical Character Recognition) API — to revolutionize package handling and mailroom operations. 

The technology streamlines the process of receiving, sorting, and managing packages by leveraging the power of machine learning and computer vision. When a package arrives, the OCR API quickly scans and reads the information encoded in the barcode or QR code on the package label.

The OCR technology does not solely rely on traditional barcodes or QR codes; it can also interpret handwritten and printed text with high accuracy. This capability is crucial in logistics, where package labels can vary in quality or clarity. 

Once the system captures the data, it digitizes and uploads it to the cloud, where it can be accessed in real-time from any device. This process significantly reduces the possibility of human error, as manual data entry is minimized.

Our use of barcodes and QR codes extends beyond mere identification; it enables smart notifications and accountability. For instance, recipients can be automatically alerted when their packages arrive, and the system keeps a digital log, creating an audit trail that enhances security and traceability. 

The business case for scanning technologies in logistics

Today's barcodes are highly reliable, providing a simple and cost-effective method for tracking items. However, QR codes elevate this efficiency to new heights with their ability to store more information and their ease of use with mobile devices. Computer vision technology further enhances logistics operations by enabling systems to recognize and process items without the need for a physical code at all. 

Together, these technologies offer comprehensive solutions that streamline inventory management, enhance real-time tracking, and facilitate data-driven decision-making.

Considerations for integrating scanning technologies

The integration of advanced scanning technologies in logistics is important, but it's crucial to assess their alignment with your business objectives. To do so, consider the following questions.

What are some common challenges associated with barcode scanning?

While barcode scanning has revolutionized logistics, it isn't without its challenges. Several issues persist, impacting operational efficiency and hindering seamless processes:

• Hardware limitations and compatibility: One of the significant challenges lies in the hardware itself. Many systems are proprietary, vendor-locked, or incompatible with certain software. This limitation often results in logistical headaches when integrating or upgrading systems, as compatibility issues can arise between barcode scanners and the software they need to communicate with.
• Vendor lock-in: Another hurdle in the barcode scanning realm is vendor lock-in. Some companies find themselves tied to a specific vendor due to proprietary technology or contracts. This dependency restricts flexibility in choosing hardware or software, making it challenging to adapt to evolving business needs or technological advancements.
• Data accuracy and reliability: Barcode scanning heavily relies on the accuracy and readability of the codes. Damaged, poorly printed, or dirty barcodes can lead to misreads or failures in capturing accurate data, causing delays and errors in logistics processes.

Is your tracking and inventory management keeping up with the pace?

Barcode scanning is fast, but QR codes can contain more data and be scanned from any angle, which speeds up processing times. Computer vision can identify products without barcodes, cutting down the time even further.

Are you leveraging the full potential of your data?

While barcodes are effective for tracking, QR codes can store a vast array of information, from product details to handling instructions, all accessible with a quick scan. Computer vision goes a step further by analyzing the physical characteristics of packages, making it possible to automate sorting without barcodes.

Do you need to improve efficiency and accuracy in your logistics operations?

The manual scanning of barcodes can lead to bottlenecks. QR codes and computer vision allow for bulk scanning and instant recognition, which can significantly reduce errors and increase throughput.

In conclusion, while barcodes are still relevant, adopting QR codes and computer vision can lead to significant gains in efficiency, accuracy, and data management. As you consider integrating these technologies into your logistics processes, focus on how they can enhance your operations and provide a competitive edge.

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Getting started with barcodes and other scanning technologies

If you're ready to integrate scanning technologies into your logistics workflow, follow these steps:

Step 1: System evaluation

Analyze your current barcode system thoroughly. Assess the types of barcodes, scanning devices, and decoding software/SDKs in use. Evaluate the system's efficiency and accuracy. Verify its compatibility with different barcode symbologies, and assess its adaptability to newer ones.

Explore integrating QR codes for enhanced data encoding and error correction, along with the potential implementation of computer vision to recognize and interpret barcodes without conventional scanners.

Step 2: Integration objectives

Define precise goals for QR code and computer vision integration. Determine if the aim is to expedite scanning, improve data accuracy, or minimize manual errors. Set measurable targets such as increased scan speed or enhanced recognition accuracy.

Outline compatibility requirements for new barcode symbologies, specifying the technical parameters necessary for seamless decoding using mobile devices.

Step 3: Technology selection

Research advanced scanning technology platforms aligning with integration goals. Assess open-source barcode scanning tools and SDKs for compatibility and their ability to decode various barcode types, including newer symbologies.

Consider enterprise-grade solutions with robust support and scalability. Ensure chosen technology provides necessary APIs, libraries, or SDKs for decoding diverse barcode symbologies via mobile devices. Evaluate features like real-time decoding and adaptability to evolving industry standards.

By evaluating, setting clear objectives, and selecting technology capable of decoding diverse barcode symbologies via mobile devices, you can strategically integrate QR codes and computer vision, improving logistics operations' efficiency and accuracy in the modern supply chain landscape.

The Internet of Things (IoT) stands as a cornerstone of modern technological innovation, fundamentally altering the landscape of numerous industries. Logistics, a sector central to global commerce, is experiencing profound changes driven by IoT advancements. 

IoT technology creates an expansive network where devices, vehicles, and an array of items are not just connected but are also embedded with sophisticated software. This software facilitates communication and data sharing across the network, forming an interconnected web of intelligence that spans the entire logistics chain.

This burgeoning network is redefining the logistics industry. By equipping containers, warehouses, and transportation vehicles with IoT devices, logistics companies can monitor and manage their operations with an unprecedented level of precision and insight.

As this article explores the multifaceted impact of IoT on logistics, it will delve into the evolution of this technology in the sector, dissecting the key components that make up an IoT-enabled logistics ecosystem. It will also highlight real-world applications, showcasing how businesses are leveraging IoT to revolutionize their logistics operations.

Evolution of IoT in logistics

Early adoption

In the initial phase, IoT found its first major application in logistics through the tracking of shipments. Industry leaders such as FedEx and Maersk were at the forefront of this revolution. They integrated cutting-edge technologies like GPS for location tracking and Radio-Frequency Identification (RFID) for seamless cargo identification. This integration enabled them to monitor the whereabouts of shipments globally, in real-time. 

Such early adoption not only demonstrated the potential of IoT in logistics but also established a foundation for future advancements. It marked the beginning of a new era in logistics management, showcasing how digital technology could revolutionize traditional processes.

Expansion into advanced applications

As IoT technology matured, its applications in logistics became more diverse and sophisticated, encompassing several key areas:

1. Advanced tracking: Modern IoT devices have transcended basic location tracking. They are now capable of providing granular details about the shipment conditions. For instance, they can monitor environmental parameters critical for perishable goods, such as temperature, humidity, and even atmospheric pressure. This level of detail helps in maintaining the quality of sensitive products throughout the transportation process.

2. Fleet management: IoT's role in fleet management is multifaceted. It involves optimizing delivery routes using real-time traffic data, thus saving time and reducing operational costs. Additionally, IoT devices monitor the health of vehicles, alerting managers about necessary maintenance or potential issues. This proactive approach not only extends the life of the fleet but also minimizes unexpected downtimes.

3. Warehouse automation: The integration of IoT in warehouse operations has led to significant advancements. IoT devices, working in tandem with robotics and advanced software systems, facilitate automated picking and sorting processes. This automation boosts efficiency and accuracy, reducing the likelihood of human error. Additionally, IoT enables real-time inventory management, ensuring stock levels are maintained optimally and helping in quick replenishment.

Components of IoT in logistics

Component #1: Sensors

Sensors are the cornerstone of IoT in logistics, responsible for collecting a wide array of essential data. They gather information such as temperature, humidity, geographic location, and motion. These sensors are versatile and can be embedded in various elements of the logistics chain, including packages, pallets, containers, or directly within transport vehicles. 

Their primary function is to provide stakeholders with continuous, real-time data, which is pivotal for maintaining the integrity of the goods, ensuring timely deliveries, and optimizing the logistics process.

Component #2: Connectivity

Connectivity plays a critical role in the IoT ecosystem, acting as the conduit for data transmission from sensors to central processing systems. This connectivity is achieved through a variety of technologies, such as cellular networks, Wi-Fi, and satellite communications. 

The diversity in connectivity options ensures that IoT devices can transmit data reliably and continuously, even in the most remote or challenging environments. This persistent connectivity is essential for real-time tracking and management of logistics operations, providing a constant flow of information regardless of location.

Component #3: Data processing

At the core of IoT functionality is data processing. IoT devices generate vast amounts of data, necessitating robust and efficient computing solutions for processing and analysis. Technologies like cloud computing and edge computing are employed to handle this data deluge. 

These computing solutions enable rapid processing and analysis of the data, providing actionable insights. This capability is crucial for timely decision-making in logistics. It allows for swift responses to changing conditions and optimization of logistics operations based on up-to-date information.

Component #4: User interface

User interfaces are the human-facing element of IoT systems in logistics. They include interactive dashboards and mobile applications that present the processed data in a clear, understandable format. These interfaces are designed for ease of use, allowing logistics managers and other stakeholders to quickly interpret the information provided by IoT systems. 

Real-world applications of IoT in logistics

Maersk monitors 700 vessels and millions of containers

Maersk utilizes IoT technology to enhance its extensive logistics operations, which include a fleet of over 700 vessels and the management of millions of containers annually. They require a unified global connectivity solution to ensure constant tracking and monitoring of their vast array of assets, including vessels, containers, and equipment across their global container terminals.

The IoT solution employed by Maersk allows for constant visibility and debugging of their systems. It enables real-time global connectivity debugging, critical for ensuring stable operations and providing maximum insights to customers. This solution also supports Maersk in launching new devices, optimizing battery life in IoT devices, and reducing power consumption by minimizing the time devices are on-air and the amount of data transmitted.

Amazon investors in wearable tech and robotics

Amazon has launched a $1 billion venture investment program, the Amazon Industrial Innovation Fund (AIIF), aimed at driving innovation in supply chain, fulfillment, and logistics, with a strong emphasis on automation and workplace robotics. This initiative responds to the changing market landscape where customer satisfaction increasingly hinges on delivery times and online shopping experiences. The fund focuses on developing technologies that enhance both customer and employee experiences in warehousing and logistics. 

In its first round of investments, the AIIF is concentrating on wearable safety technology. Companies like Vimaan (computer vision), BionicHIVE (autonomous robotics), and Mantis Robotics (sensor-equipped robotic arms) are among the initial beneficiaries. This investment is part of Amazon's broader commitment to igniting innovation in technologies that improve employee safety and operational efficiency.

The business case for IoT in logistics

According to BlueWeave Consulting, the size of the global IoT logistics market was worth $37 billion in 2021 and is projected to grow at a significant CAGR of 14.0%, reaching a value of $93 billion by 2028. The burgeoning IoT in logistics market is a testament to the growing recognition of its potential.

Considerations for implementing IoT in logistics

Can IoT technology help us improve asset tracking?

IoT for asset tracking offers real-time insights into asset location, condition monitoring, and predictive maintenance. By leveraging IoT sensors and devices, companies with logistics operations gain a comprehensive view of their assets. This technology facilitates proactive decision-making, allowing for timely interventions to prevent potential issues.

How can our company use RFID technology to improve logistics operations?

RFID (Radio-Frequency Identification) technology presents a game-changing solution in improving logistics operations by offering seamless item tracking and automated inventory management. Companies can leverage RFID tags attached to items, pallets, or containers to enable swift and accurate identification and tracking throughout the supply chain. 

RFID readers, strategically placed at various checkpoints, automatically capture tag data, providing real-time visibility into inventory levels, location, and movement. This technology streamlines processes such as receiving, picking, and shipping, reducing manual errors and labor-intensive tasks. 

By harnessing RFID technology, companies enhance inventory accuracy, optimize stock levels, minimize stockouts, and improve overall efficiency within their logistics operations.

How will IoT technology integrate with our existing systems and infrastructure?

It's crucial to assess the compatibility of IoT technology with existing systems and infrastructure. IoT solutions should seamlessly integrate with current logistics management systems, warehouse management software, and other operational tools. This integration is essential for ensuring smooth data flow and avoiding disruptions in existing processes. Additionally, consider the need for staff training and potential upgrades to existing infrastructure to support IoT technology.

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Getting started with IoT in logistics

Step 1: Analyze potential upgrades

Commence by conducting an in-depth analysis of logistics operations to identify areas that can benefit from IoT integration. This entails employing various sensors like RFIDs, chips, and weight sensors. For instance, RFIDs enhance real-time asset tracking, chips assist in automated stock updates, and weight sensors optimize warehouse operations. The technical aspects involve installing these sensors and establishing their networking, incorporating input into main systems through Kafka or MQTT servers.

Step 2: Create a strategic roadmap

Develop an intricately detailed strategic plan aligning IoT goals with overarching business strategies. This plan should encompass the technicalities of deploying chosen IoT technologies and their expected outcomes. It should address operational challenges, such as sensor failures, through a health dashboard for each sensor and a repair protocol.

Step 3: Collaborate with IoT experts

Forge alliances with proficient IoT solution providers well-versed in logistics. These partnerships are pivotal in selecting apt technologies and ensuring their seamless integration into the logistics framework. Seek providers with a solid track record in the logistics sector and a comprehensive understanding of specific operational needs.

Step 4: Test and scale

Execute pilot projects to test chosen IoT solutions. These pilots serve as controlled environments to evaluate technology effectiveness and scalability. They yield crucial data and feedback, facilitating necessary adjustments before widespread implementation across operations.

The integration of IoT heralds a significant shift in logistics, revolutionizing operational management. Embracing IoT not only boosts operational efficiency but also cultivates a more responsive, transparent, and customer-centric supply chain.

Logistics plays a central role in global trade and business growth. Every product we buy depends on supply chains. From food to electronics, they rely on efficient movement. Companies that manage logistics well lower costs. Along with improving delivery speed, and keeps customers satisfied.

The global logistics market is projected to grow from USD 78.74 billion in 2024 to USD 187.45 billion by 2032. It shows a strong CAGR of 11%. This growth proves that logistics and supply chain management power modern commerce.

Strong logistics supply chain management gives businesses an edge. It helps them handle rising customer expectations, balance transportation needs, and reduce risks. In a competitive economy, efficient logistics management is not just a support. It is a key factor in long-term success.

What is Logistics Management?

Logistics management is the planning and control of how goods and information move from origin to destination. It covers procurement, storage, transportation, warehousing, and distribution. The aim is simple. Deliver the right product in the right quantity. At the right time and place. In the right condition and at the right cost.

The term has roots in the military, where it referred to keeping troops supplied with equipment and rations. In business, it now defines how companies handle inbound and outbound flows of goods. This includes everything from sourcing raw materials to shipping finished products to customers.

Logistics management is a core part of supply chain optimization. It shapes how resources are used, how fast deliveries happen, and how costs can be reduced. Retail, e-commerce, and manufacturing companies rely on it. It keeps operations efficient and customers satisfied.

Key Functions of Logistics Management

Logistics management is more than moving goods. It connects supply, storage, and delivery into a single flow. Each function plays a role in keeping operations fast and cost-effective.

Procurement

Every supply chain begins with procurement. It covers sourcing raw materials or finished goods. Strong procurement practices reduce costs and create stable supply.

Transportation

Transportation is the backbone of logistics. Companies use road, rail, sea, and air to move products. Strong transportation and logistics management reduces delays and keeps distribution reliable.

Warehousing

Warehousing keeps products safe until needed. Good storage practices protect stock and support faster order cycles. Many firms now depend on advanced warehouse management systems to manage space better.

Inventory Management

Smart inventory management balances supply with demand. Too much stock increases storage costs. Too little stock risks losing sales. Smart logistics management solutions help track demand and adjust stock levels.

Order Fulfillment

Order fulfillment delivers on customer promises. It covers picking, packing, and shipping. Strong logistics management services speed up fulfillment and raise customer satisfaction.

Reverse Logistics

Returns and recycling are part of modern logistics. Reverse logistics manages product returns, repairs, and recycling. It helps reduce waste and strengthens customer trust.

Together, these functions build a smooth supply chain. Strong logistics and supply chain management depend on how well these parts work together.

Why is Logistics Management Important?

Here’s why logistics management is important for modern businesses:

Better Customer Experience

Strong logistics management ensures on-time and accurate deliveries. Customers today expect fast and reliable service. A single delay can affect brand trust. With effective logistics and supply chain management, businesses improve customer satisfaction. They also cut down on costly returns.

Lower Costs and Higher Efficiency

A well-planned logistics management system helps companies streamline operations. It trims fuel costs and avoids delays, as well. Businesses that adopt logistics management software also gain real-time inventory visibility. This reduces waste and ensures products are available when needed. This makes supply chain and logistics management more cost-effective.

Higher Profit Margins

When logistics supply chain management is optimized, companies prevent stockouts and avoid overstocking. Smooth transportation and logistics management improve delivery times. Better delivery drives revenue growth and stronger profit margins.

Stronger Risk Management

Disruptions in logistics and supply chain management can halt production and damage customer relationships. Companies face fewer risks with advanced logistics tools. These solutions improve visibility across the supply chain. Real-time data analytics strengthen logistics risk management to help businesses.

Flexibility and Growth

Logistics management services give companies the agility to respond to changing demand. While allowing it to expand into new markets. By combining supply chain management and logistics with advanced technology, businesses stay competitive in fast-moving industries.

Benefits of Logistics Management

Strong logistics management is the backbone of supply chain success. Businesses use logistics management solutions to improve operations. Here are the top benefits:

1. Cost Savings

A logistics management system helps reduce costs across transportation, warehousing, and inventory. Route optimization lowers fuel use. Better warehouse planning reduces storage costs. Smart inventory control prevents overstocking and wasted capital.

2. Greater Efficiency

Logistics and supply chain management rely on speed and accuracy. A structured logistics management process streamlines order processing, warehousing, and last-mile delivery. It shortens lead times and keeps operations consistent.

3. Improved Customer Experience

Logistics management services ensure orders arrive on time and in the right condition. Accurate tracking and flexible delivery options give customers reliability and confidence. Satisfied customers often turn into repeat buyers.

4. Risk Reduction

Supply chain and logistics management often face risks like shipment delays and lost packages. Logistics risk management lowers these challenges by using real-time tracking and proactive monitoring.

5. Competitive Edge

Companies with strong logistics management solutions gain a clear market advantage. Faster delivery, lower costs, and reliable service create trust and long-term loyalty. In competitive industries, this can define market share.

Logistics Management vs Supply Chain Management

Logistics management and supply chain management are often confused. Many use the terms as if they mean the same thing. In practice, they serve different purposes.

Logistics management deals with the movement and storage of goods. It focuses on transportation, fulfillment warehousing, order fulfillment, and reverse logistics. It begins with material sourcing and ends with product delivery to customers. A logistics management system or logistics management software helps companies handle these daily operations.

Supply chain management covers a broader scope. It includes planning, sourcing, production, and logistics. It connects multiple companies in one network, from suppliers to manufacturers and distributors. Supply chain logistics management looks at strategy, risk, and performance across the entire chain.

Here is a clear view of the difference:

In short, logistics focuses on how goods move. Supply chain management sets the strategy for how all parties connect. Both are linked, but they solve different problems. Companies that combine logistics management solutions with supply chain management can achieve success.

Future Trends in Logistics Management

The logistics management industry is entering a new phase. E-commerce, technology, and sustainability fuel market growth. The following are some future trends that we can witness:

Market Growth Driven by e-commerce

Online shopping continues to push the need for faster and more accurate deliveries. Retailers must rethink logistics and supply chain management to meet rising expectations. Many rely on third-party logistics providers to manage transportation and logistics management at scale.

Rise of Digitization and Automation

Automation is no longer optional. Warehouses are using robots, automated storage systems, and guided vehicles. Companies deploy logistics management systems to improve efficiency. AI and data analytics help predict demand. They optimize freight routes while also strengthening supply chain management.

The Expanding Role of Third-Party Logistics

The market for 3PLs is growing fast. Small and mid-sized operators are offering logistics management services to support larger enterprises. This shift makes global supply chain and logistics management more flexible and cost-efficient.

Green Supply Chains

Sustainability is shaping the future of logistics supply chain management. Companies are adopting energy-efficient vehicles, optimized routes, and recyclable packaging. State incentives encourage greener operations and better logistics risk management practices.

Agility and Visibility

Businesses are building supply chains that can adapt quickly. They invest in digital tools that improve supply chain visibility and reduce costs. A modern logistics management solution offers the transparency needed to respond to changing market conditions.

Smart Logistics Strategies for Businesses

AI is changing how businesses run logistics and supply chain management. Real-time data and smart automation make it faster. They also make the supply chain more accurate and help with decisions. Companies using logistics management software and AI tools gain visibility and serve customers faster.

Real-Time Data and Analytics

AI works with IoT sensors to track shipments in real-time. These sensors monitor temperature, humidity, and location inside containers. Predictive analytics uses this data and past trends to forecast demand. This helps businesses plan resources and avoid stockouts or delays. With logistics management systems, managers can make data-driven choices. This will eventually help in inventory control.

Optimize Warehouse Operations

AI boosts warehouse operations efficiency through automation. Robotics and automated systems speed up picking, packing, and sorting. Autonomous mobile robots move goods between sections without human help, lowering labor costs. Smart sorting tools reduce mistakes and shorten processing times. These improvements help warehouse operations align with logistics and supply chain management goals.

Strategic Network Design

AI analyzes geography and demand to place warehouses in the right locations. This reduces shipping distances and costs. It can also suggest the best transportation modes based on cost and reliability. Supply chain logistics management becomes leaner with just-in-time inventory and cross-docking. While also helping to cut storage costs and delivery lead times.

Embrace New Technology

AI integrates with innovations like blockchain, 3D printing, and drones. Blockchain secures transactions and tracking. 3D printing supports on-demand production closer to customers, reducing shipping needs. Drone delivery offers a faster and cheaper option for last-mile logistics. These tools expand how supply chain and logistics management work in practice.

Seven Rights of Logistics Management

Logistics management is at the center of supply chain logistics management. To understand it, experts often point to the seven rights. These guide every decision in logistics and supply chain management.

• Right product: Goods that match customer demand.
• Right quantity: No excess stock or shortage.
• Right condition: Products must arrive safely and ready for use.
• Right place: Delivery to the correct warehouse or customer location.
• Right time: On schedule, without costly delays.
• Right price: Controlled logistics management costs.
• Right customer: The order reaches the intended buyer.

These seven rights are the foundation of transportation and logistics management. Companies use logistics management solutions to follow this framework.

PackageX provides logistics management software that supports warehouse operations, retail, and distribution. This creates efficiency across logistics and supply chain management while reducing risks.

Why PackageX Logistics Management Solutions Are the Right Choice?

PackageX goes beyond standard logistics management services. It brings speed, accuracy, and flexibility to modern supply chain operations. PackageX logistics management software adapts to your needs. Whether you run a small business or an enterprise. 

Why it’s the smart choice for logistics and supply chain management:

• Streamlines logistics management processes with automation and real-time visibility.
• Provides an advanced logistics management system that reduces delays and errors.
• Strengthens logistics risk management by offering secure, data-driven insights.
• Integrates with existing supply chain logistics management platforms for smoother workflows.
• Offers cloud-based access so teams can manage logistics operations anytime, anywhere.

With PackageX, logistics management services become more reliable and future-ready.

FAQs

What are the Three Types of Logistics?

Logistics can be divided into three main types:

1. Inbound Logistics: Manages the flow of raw materials and goods from suppliers to your business. It ensures timely delivery and proper storage.
2. Outbound Logistics: Focuses on shipping finished products to customers or retailers. It includes transportation, warehousing, and order fulfillment.
3. Reverse Logistics: Handles returns, recycling, and disposal of products. It improves customer satisfaction and reduces losses.

What Does a Logistics Manager Do?

A logistics manager oversees the movement of goods and information across the supply chain. Their responsibilities include:

• Planning and optimizing transportation routes.
• Managing warehousing and inventory levels.
• Coordinating order fulfillment and reverse logistics.
• Monitoring logistics risk management and solving delays.

What is Logistics in Simple Words?

Logistics is the process of moving goods, services, and information from the origin to the customer. It ensures the right product reaches the right place at the right time.

What are the Four Flows of Logistics?

The four flows of logistics describe how goods and information move:

1. Product Flow: Physical movement of goods from suppliers to customers.
2. Information Flow: Data sharing across the supply chain for better decision-making.
3. Financial Flow: Payments, invoices, and credit between suppliers, businesses, and customers.

Reverse Flow: Returns, recycling, and disposal of products.

Optical Character Recognition (OCR) is a technology that converts different types of documents, such as scanned paper documents, PDF files, or images captured by a digital camera, into editable and searchable data.

In the logistics industry, OCR finds its application in automating data extraction from various documents like shipping labels, bills of lading, and invoices. This technology significantly reduces the need for manual data entry, thereby minimizing human error and expediting the processing time.

In this article, we'll delve into how OCR technology can bolster your logistics operations by enhancing data accuracy and streamlining workflow.

Evolution of OCR in logistics

Early adoption

In the initial stages, the logistics sector recognized the value of OCR primarily as a tool for converting physical documents into digital formats. Major logistics companies like FedEx and UPS led the way by deploying OCR technology for specific use cases such as scanning and interpreting shipping labels. 

The technology revolutionized sorting and routing processes by dramatically reducing the need for manual labor and minimizing human errors. With the OCR systems in place, these companies could automatically read labels, sort packages, and streamline the overall shipping workflow.

Modern applications

Today, OCR technology plays a multifaceted role in logistics, extending its functionalities far beyond simple label reading. Below are some of the key areas where OCR now makes a significant impact.

• Document management: Advanced OCR solutions can scan a broad range of documents—invoices, contracts, or compliance documentation—and convert them into editable and searchable digital files. This transformation facilitates efficient records management by making it easier to store, access, and retrieve essential information quickly.

• Automated data entry: One of the most game-changing applications of OCR in logistics is its capability for automated data entry. OCR software can scan documents and directly populate fields within logistics management systems, thereby reducing manual data entry to a great extent. This automation leads to a significant reduction in human error and increases overall operational efficiency.

• Freight management: OCR technology now comes with the ability to recognize and extract essential data from a multitude of shipping documents like bills of lading or airway bills. Once the OCR system captures this information, it integrates seamlessly with freight management systems to provide real-time tracking updates and streamline shipment workflows.

Components of OCR in logistics

Component #1: Text capture

Text capture serves as the entry point for any OCR workflow in logistics. In this phase, scanners or cameras scan the physical document or image that requires processing. 

It was once necessary to use expensive, specialized hardware to achieve clear scans. But the integration of OCR into everyday devices like smartphone cameras has removed the need for this. Additionally, technological development in the OCR software itself has made it possible to capture usable images in areas with varying degrees of lighting and visibility.

Component #2: Text recognition

During this phase, specialized algorithms analyze the scanned image to identify individual characters and symbols. The software maps these visual elements to their corresponding machine-encoded text characters. 

One of the remarkable features of advanced OCR systems is their ability to recognize text in multiple languages, alphabets, and fonts, thereby making them extremely versatile. 

Text recognition is crucial because any error at this stage could lead to incorrect data extraction, compromising the integrity of the whole process.

Component #3: Data extraction

During extraction, customized rules and patterns guide the OCR software to pull out specific pieces of information relevant to logistics operations. 

For example, the system might extract shipping details like tracking numbers, consignee addresses, and item descriptions from a bill of lading. Similarly, it could pull line-item specifics, such as product codes and prices, from an invoice. 

In the example below, OCR technology from PackageX is used to extract data from a bill of lading.

The accuracy of this phase is pivotal, as the extracted data will feed into various functional areas like inventory management, billing, and shipping.

Component #4: Data integration

The final step involves seamlessly integrating the extracted data into a logistics management system. In this phase, automated workflows use the OCR-extracted data to perform various tasks like updating inventory levels, generating customer invoices, or providing real-time shipment tracking. 

By directly populating the system, OCR minimizes the need for manual data entry, thereby reducing errors and increasing overall operational efficiency. 

It's worth noting that modern OCR solutions often come with APIs that allow for easy integration with various types of management software, offering flexibility and scalability.

Mailrooms use OCR to automate package receiving and pickup

In the logistics sector, OCR technology is revolutionizing package management and delivery. One striking example comes from the property management domain, where PackageX Receive — our OCR-enabled digital mobile application — has substantially improved package processing efficiency.

Faced with a 22% surge in package deliveries during the pandemic, our client, a property management service provider, grappled with constrained mailroom storage space. Their previous system took seven minutes on average to process a single package, leading to a backlog and poor resident experience. 

Now they’re using OCR technology that instantly reads package labels and automatically outlines the next steps in processing. This reduced the processing time to mere seconds per package, allowing for a more efficient use of mailroom space. Furthermore, the app sends immediate notifications to residents, encouraging timely pickup and reducing package loss.

But the impact of OCR technology goes beyond just speed. The app's accurate tracking features have brought lost package instances down to nearly zero. In addition, it has improved same-day package pickups by 38%, optimizing storage duration and freeing up mailroom capacity.

AWH uses OCR to verify consignment information automatically

By implementing an OCR solution, the logistics and warehousing company AWH achieved significant energy savings and elevated work efficiency, addressing longstanding challenges such as manual data entry, accuracy, and timely processing.

Before the OCR integration, AWH grappled with issues like manual intervention, duplicate key entries, and overstaffing, according to John Kilbride, the company’s Chief Information Officer (CIO). After analyzing existing processes, they developed a fully automated solution that streamlined AWH's consignment management process.

The OCR technology reads and verifies consignment information automatically, extracting key data and line items. The system then exports this verified data into AWH’s logistics system, subsequently feeding it into a record management solution. The process automates the creation of a filing path based on the extracted data, sparing operators from manual filing tasks.

According to Killbride, this OCR-based automation freed up staff to focus on more value-added tasks. The impact extends beyond mere efficiency gains and ensures that AWH meets crucial compliance standards. 

The business case for OCR in logistics

In 2022, the OCR market size was $10.6 billion and is projected to reach $39.7 billion by 2030, growing at a CAGR of 16%. This escalating market size signifies the increasing trust and integration of OCR technology across various sectors, including logistics.

The current generation of OCR technologies offers impressive levels of accuracy when it comes to reading and understanding printed or handwritten text. These capabilities present valuable applications for digitizing documents, automating data entry, and enhancing compliance processes within logistics.

Considerations for using OCR in logistics

As you weigh the value of incorporating OCR into your logistics operations, you should evaluate the following questions with your team.

Is manual data entry draining resources?

Many logistics companies face the tedious task of manually entering data from shipping manifests, invoices, and bills of lading. OCR can swiftly convert these paper-based documents into digital formats, automating the data entry process. By doing so, it not only reduces human error but also frees up personnel to handle more complex tasks, increasing overall efficiency.

Reports highlight that over 40% of employees spend at least a quarter of their week on repetitive tasks, with data entry often topping the list. And the desire for automation is strong, with 70% of workers identifying the reduction of time spent on such repetitive tasks as the prime benefit. 

This isn't just a matter of preference. Automation stands to reclaim hours of work: nearly 60% of workers believe they could save at least six hours a week if automation were implemented, time they would redirect towards more valuable, rewarding work. 

From a warehousing and logistics standpoint, if we assume it takes an average of two minutes to enter data for a single shipping label, a worker could process about 240 labels in an eight-hour shift. For a company handling 10,000 shipments per day, this would require roughly 42 full-time employees for data entry alone.

Do you face challenges in compliance and document verification?

Logistics operations must adhere to numerous regulatory guidelines, often necessitating rigorous document verification. OCR can facilitate this by quickly scanning and cross-referencing documents, ensuring they meet the required standards. This can be especially crucial in international shipping where discrepancies in documents result in costly delays.

Is paper-based documentation slowing down your supply chain?

A lag in the flow of information, especially if relying on paper-based systems, can cripple a logistics operation. OCR can digitize important documents in real-time, thereby speeding up information flow and decision-making. Faster access to data can improve coordination among suppliers, distributors, and customers, optimizing the entire supply chain.

In summary, OCR offers an extensive array of solutions that can dramatically benefit logistics functions, from automating data entry to enhancing document verification and speeding up information flow. As you contemplate integrating OCR into your logistics business, concentrate on the areas where automation and data digitization will deliver the most impactful gains.

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Getting started with OCR in logistics

If you're a logistics professional looking to integrate OCR into your existing workflow, follow these steps to get started.

Step 1: Identify the need

Pinpoint the areas in your logistics operations that could benefit from converting physical or digital images of text into machine-encoded text. Frequent applications include automating invoice processing, digitizing shipping labels for tracking, and extracting information from customs documentation.

Step 2: Set clear objectives

Clearly define what you hope to accomplish with OCR technology. Are you looking to speed up document handling, improve the accuracy of inventory tracking, or reduce manual data entry errors? Your objectives will inform your technology choices and implementation strategy.

Step 3: Select the right technology

A variety of OCR platforms and tools are available, catering to different needs and budgets. If you're just getting started, open source options like Tesseract may suit your needs. For more advanced and customizable solutions, consider enterprise-grade options that offer features like multilingual support, API integration, and a scalable cloud-based platform.

As supply chains and consumer demands continually shift, predicting accurate future inventory needs is crucial. However, achieving precise forecasts is an intricate process that involves data analysis, industry experience, and customer insights. If demand is not properly predicted, companies can end up with too much inventory — a dangerous position for a company to be in.

If a company ties up too much cash in excess inventory, they may be forced to slash prices down the road, chasing a shrinking consumer base being hit hard by inflation.

Faced with these challenges, how can companies avoid overstocking their inventory with so many outside factors affecting the modern supply chain? 

Challenges in demand forecasting: lessons from the 2022 inventory glut

To avoid excess inventory and a shortage of cash, it’s crucial that a company collects accurate data. There are several essential data points to consider…

Knowing your current inventory levels, maximum stock levels, and historical trends is crucial — but any black swan event can easily knock you off center.

If you’ve forgotten to account for outstanding purchase orders, they can affect your future inventory as soon as they’re delivered. If you haven’t accurately forecasted seasonal demand because of outdated data from years before, you can end up over-ordering for a holiday season, and be left sitting on a mountain of inventory as soon as it ends.

In 2020, the American supply chain was thrown into chaos after covid-19 hit the scene. As inflation rocked the average consumer, American companies could not fill their orders when the disruption tied up inventory on ships. 

In Q2 of 2022, all of that excess inventory hit companies simultaneously. In the wake of that tidal wave of stock, many organizations slashed their prices to reduce the excess. 

“Three years ago, our inventory management processes were manual. We were using spreadsheets, but it worked. Then covid-19 hit and the wheels fell off. We are still experiencing the supply chain disruptions caused by it. We now realize we need to move to a more robust solution.”
- Alex Koshulko,   Cofounder of GMDH Streamline

For companies offering a diverse range of products, accurate forecasting is particularly crucial. The industries hit hardest by the 2022 inventory tidal wave were manufacturing and wholesale, sectors with many moving parts. 

The consequences of overstocking: lessons from a pandemic economy

Before the pandemic struck, two-thirds of supply chain managers relied on Excel as their go-to supply chain management system. The landscape was predictable, allowing for straightforward demand forecasting based on historical data.

However, the pandemic abruptly altered this landscape. Companies suddenly found themselves drowning in excess inventory, just as inflation began to tighten its grip on American consumers.

This surplus inventory came with a hefty price tag, beyond just the cost of goods. Warehousing, increased insurance, and heightened security expenses began to erode profits. Moreover, the excess inventory tied up valuable capital, diverting resources from other essential business operations. As a result, overstocked warehouses introduced a new set of challenges, such as errors in order fulfillment, shipping delays, and a higher risk of products going out of stock.

The longer this excess inventory sits idle, the more likely companies are to resort to forced discounts and sales to move it. While this may clear space, it also comes with its own pitfalls. Forced sales not only shrink profit margins but can also tarnish a brand's perceived value. In the long run, this conditions customers to expect discounts, which weakens brand loyalty. Even worse, products risk becoming obsolete before they even leave the warehouse.

Strategies to prevent overstocking

To avoid the pitfalls of overstocking, businesses are adopting various strategies that not only optimize inventory but also enhance profitability.

Acquire superior tools and services

Several tools and services facilitate real-time data-driven forecasting. Demand forecasting software, customer relationship management (CRM) systems, and point-of-sale (POS) systems can help enhance the accuracy of demand predictions.

During the pandemic, in the midst of the biggest supply chain crisis in modern history, American Eagle acquired two supply chain software companies, AirTerra and Quiet Logistics. Because they didn’t see the solutions they wanted on the marketplace, they invested in and created their own.

They reduced their package miles by two billion, time to deliver to stores by 80%, and cost per package by $1.50. Their profitability doubled when they saw savings of $360 million in freight and markdowns and an 18% jump in productivity.

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Embrace just-in-time (JIT) inventory methods

JIT is a lean inventory strategy aimed at minimizing overstocking. Businesses only order inventory as needed, reducing excess inventory carrying costs. To implement JIT successfully, you'll need reliable suppliers, efficient logistics, and an agile supply chain.

Toyota is one the most well-known JIT success stories. During the pandemic, they realized that raw material cost was one of their biggest inventory challenges. Instead of ordering raw materials weeks or months in advance, they switched to a JIT model, and now only order raw material to their production floor after a customer has placed an order.

Collaborate more effectively with suppliers

Retail giants like Walmart and Procter & Gamble have achieved remarkable results through collaboration. Walmart's Retail Link system allows suppliers to access real-time sales data, enabling them to adjust production to match demand. Meanwhile, Procter & Gamble's "Continuous Replenishment" program integrates supplier inventory systems with their own, fostering a seamless flow of goods.

Additional resources

• 5 ways AI can benefit demand forecasting and inventory planning - An in-depth blog post from Forbes about leveraging AI to generate effective, lean demand forecasting
• It’s a Retail Armageddon - An article from CBS News written during last year’s supply chain crisis that shows the hidden costs of poor inventory management‍
• PackageX Inventory Management Software - Our cloud-based inventory management and forecasting software that seamlessly integrates with your existing software

To run a successful business, you need to understand inventory management. After all, inventory management is central to success in both B2B and B2C organizations. It affects many aspects of the business, from production timelines to operating costs and even the customer experience. Effective inventory management can help your organization function more smoothly while neglecting it will have the opposite effect.

The best way to develop an inventory management strategy that works for your company is first to understand the types of inventory you will be dealing with. This article is a guide that will help you learn to classify inventory according to the types of inventory and the purpose. But first, we need to understand what we mean when we discuss the term.

What is Inventory?

The ultimate goal of every business is to make a profit. Against that background, inventory refers to all of the goods, materials, and merchandise the company uses to draw in revenue. It’s essential to make a distinction between company inventory and company assets. Inventory is ultimately intended to be sold off; assets are possessions that remain with the company.

The difference between the two types of inventory can be illustrated with the example of a furniture store. The furniture pieces make up the store’s inventory, while the workshop where they are made counts as an asset. Essentially, inventory exists to be sold at a profit, while assets are used to carry on company operations.

Identifying Inventory in the Manufacturing and Service Industries

It’s easy to classify types of inventory when dealing with physical goods. From cheap consumer goods like fast food to expensive, one-off purchases like cars or electronics, inventory includes the finished products and all the raw materials that went into their creation. Carrying forward the example of the furniture store, its inventory will consist of not just the finished pieces but also raw materials like wood planks and semi-finished goods and any work in progress.

In the service industry, where there is no physical exchange of goods, it is a bit more challenging to pin down what counts as inventory. Items that are consumed in offering the service, like band-aids at a first-aid clinic, are considered inventory for professionals in the service industry. 

Now that we’ve learned how to recognize inventory, the next step is knowing how to classify it according to its type.

Types of Inventory

There are multiple types of inventory. Despite this, there are certain common traits regardless of the types of inventory at hand. Inventory will always take the form of a tangible or intangible asset that has an exchange value and is intended to be used in making a sale. Apart from this common thread, many distinctions can be used to classify inventory according to type.

1. Raw Materials

One of the first types of inventory is raw materials. These are items that will be used while making the final product. This is only applicable to companies that are engaged in manufacturing processes. Companies that trade goods but do not produce any will not need to concern themselves with raw materials. For example, in a food processing plant that makes chips, the potatoes sourced from farmers will count as raw materials.

A further distinction can be made between direct and indirect raw materials. The difference is that direct raw materials are used in the finished product, whereas indirect raw materials are part of the overheads required to carry on production. The potatoes in the above example would count as direct raw materials since they will be going into the final product. Meanwhile, the crates used to store the potatoes before processing will count as indirect raw materials.

2. Works in Progress

The next category of inventory is work in progress (WIP) inventory. Basically, WIP inventory consists of everything that is currently on the factory floor, from raw materials to semi-finished goods. As the name implies, these goods are still unfinished and not ready to be sold. Additional processing is required to make WIP inventory ready for the market.

For example, WIP inventory at an automobile factory would consist of a partially assembled car that needs a coat of paint and additional parts installed. But it also includes a fully assembled car that still hasn’t passed the safety tests. Until an item is ready to be sold to consumers, it counts as WIP inventory.

3. Finished Goods

The final category of inventory is finished goods. The title is self-explanatory: These are goods that are ready to be shipped and sold. For inventory to be considered finished goods, it needs to pass through all stages of processing and clear all quality control and safety tests. Finished goods are what most people refer to when discussing inventory, as they can be sold for a profit.

4. Maintenance, Repairing, and Operating Inventory

While raw materials, WIP inventory, and finished goods make up the three main types of inventory, there is also a fourth category. Maintenance, Repairing, and Operating (MRO) inventory is an ancillary category, but it is also crucial as it wouldn’t be possible to manage the other inventory types without it. MRO inventory includes the items used in manufacturing the finished goods, which aren’t included in the final product. Factory equipment, consumable goods, and office supplies count as MRO inventory.

Special Purpose Inventory

The types of inventory discussed above are the standard classification methods for inventory management. They deal with all the goods and materials involved, from manufacturing to making a sale. They are classified according to their place in the manufacturing-to-market cycle. But in order to ensure smooth operations, most companies also need to maintain stockpiles of all four main types of inventory outside this cycle for special purposes.

1. Buffer Inventory

The purpose of buffer inventory is to protect a company from demand fluctuations, production snarls, or transport delays. These problems are difficult to predict and can lead to a situation where the company’s finished goods are out of stock in the market. Buffer inventory is also known as safety stock. It can be anything from finished goods stored in a warehouse to a stockpile of raw materials in a factory. Companies use buffer inventories when their established processes are upset due to unforeseen outside factors.

2.     Cycle Inventory

Every company needs a minimum amount of materials to carry on producing goods. This is known as cycle inventory, as it is necessary to keep the production cycle going. Most companies order their cycle inventory in batches and at regular intervals. If cycle inventory is not in stock, the company will find it hard to meet even its minimum production quotas for that manufacturing cycle.

3. Decoupling Inventory

Manufacturing processes are complex and have multiple stages. A complication at any single stage can throw the entire process into jeopardy. Take the example of a textile mill that uses multiple machines to convert fibers to fabric and fabric to finished textiles. Should a single machine in this process break down, no further steps can be taken.

Decoupling inventory is a solution to this problem. It consists of WIP inventory that is kept in storage. It is only used in the event of a breakdown in the production process. In the textile mill’s example, it could consist of unprocessed fabrics that are ready to be converted to finished textiles. Should the fiber-to-fabric process break down, the decoupling inventory can be used to continue the fabric-to-textile process without stopping production while the problem is fixed.

4. Transit Inventory

Inventory that is being moved between locations is known as transit inventory. This category includes all inventory types. Raw materials being freighted into the factory and finished goods being shipped off to stores are both examples of transit inventory.

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Why Inventory Management is so Important

The ability to accurately classify your inventory will help your company streamline its operations and order fulfillment. Knowing exactly where goods and materials are stored and their state of completion is critical to optimize the supply chain. Poor inventory management can throw a wrench in company operations or even delay customer shipments, which is an undesirable outcome for both the company and the consumer. Market research conducted by Reliant Funding revealed that 34% of businesses have had to delay shipping an order because the product sold was no longer in stock.

From tracking inbound shipments of raw materials to keeping an accurate tab on warehouse stocks, inventory management is a sprawling exercise. Conducting it manually leaves room for errors.

Luckily, there are enterprise software solutions that make inventory management much simpler. Cloud solutions like PackageX enable companies to track all types of inventory in real-time, increasing productivity, reducing supply chain complications, and bringing down operational costs. Along with these benefits, they improve the customer and employee experiences. Visit the PackageX website to learn more about their flexible cloud offering and key benefits of their inventory management offering. 

The best way to ensure your company’s production cycle continues uninterrupted is by implementing a robust inventory management system. Your company inventory can be a major business asset, but you must know how to use it effectively. Start by learning how to classify your inventory according to type and purpose, and then apply inventory management principles to extract maximum value from it all.

Natural Language Processing (NLP) is a domain of artificial intelligence (AI) that gives machines the ability to read, understand, and derive meaning from human languages. It's a technology that's playing a pivotal role in decoding the vast data involved in logistics management.

In logistics, NLP improves efficiency and accuracy in several applications. From translating foreign shipment details and interpreting customer inquiries in real-time to enabling voice-activated commands for warehouse operations, NLP is transforming how data is handled across the supply chain.

In this article, we explore how incorporating NLP into your logistics operations can minimize delays, reduce human error, and enhance customer service by streamlining communication processes.

Evolution of natural language processing in logistics

Early adoption

Tracing the first use of NLP in logistics is difficult due to the expansive and varied nature of the logistics industry. However, several large enterprises such as UPS and FedEx started to experiment with NLP applications to streamline various operations.

These companies initially used NLP for tracking packages using voice-activated systems. Customers could call and vocally state their tracking number to receive real-time updates about their shipments. Over time, this technology was extended for use within the company, from voice-directed warehousing operations to natural language chatbots that handle internal queries about inventory levels and shipment scheduling.

Modern Applications

Natural Language Processing is no longer a tool only for large corporations with deep pockets. Thanks to the advent of cloud computing and services like Google Cloud NLP, IBM Watson, and others, the power of NLP can be harnessed for a broad range of applications within logistics. Below are three key areas where NLP shines.

Components of NLP in Logistics

Component #1: Language modeling and tokenization

A pivotal first step in the application of NLP is language modeling. These models, often designed using deep learning, are trained on vast datasets including industry-specific documentation, text, or speech. 

Tokenization is a sub-process that breaks down sentences into smaller pieces, often words or sub-words, called 'tokens.' In the logistics world, this allows NLP systems to understand terms like "ETA" (Estimated Time of Arrival) or "POD" (Proof of Delivery), which are essential for operations such as route optimization or shipment tracking.

Consider the use case of automated email processing. Logistics companies receive thousands of emails related to orders, tracking, and invoices. A language model would tokenize these emails, understand the context and the terminology used, then proceed to the next stages of NLP for further action.

Component #2: Text classification and sentiment analysis

After tokenization, the next step is text classification. This involves categorizing incoming text data into predefined classes, such as 'Invoice Query,' 'Shipment Update,' or 'Customer Complaint.' 

Sentiment analysis, a specialized form of text classification, gauges the emotional tone behind text data. This can be especially useful for customer service applications and communication between logistics partners.

For example, a receiver of goods can use AI agents to contact logistics partners about their location and estimated time of arrival. With sentiment analysis, this experience is preferred over tracking apps.

After each conversation, we analyze the sentiment of the entire interaction using sentiment analysis AI. This analysis helps PackageX determine if the conversation was positive or negative and enables recipients to retain or replace the AI agent accordingly as each agent can have a different “personality”.
- Farrukh Mahboob, CEO @ PackageX

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Component #3: Named entity recognition

Named entity recognition (NER) is a specialized task that identifies particular entities in a string of text, such as names, time, geographic locations, or even specific logistics terms like 'SKU' or 'Tracking Number.' This is highly relevant in logistics where precise terminology is often crucial.

NER can be vital in automating the processing of customs documentation. An NLP system could scan documents to find and highlight terms like 'Country of Origin,' 'HS Code,' and 'Import Duty' to speed up the verification and submission process.

For one of the world’s largest malls, PackageX used NER to create a system that extracted important attributes from customer receipts. The system extracted attributes with over 95 percent accuracy to help the company quickly convert information on paper to valuable business data. 

Component #4: Information extraction and text mining

Information extraction is the process of automatically extracting useful information and relationships from unstructured data. This component could be particularly useful for sifting through extensive textual documents, such as contracts or supplier agreements, to quickly pull out relevant information. Text mining goes a step further, aiming to discover new insights or patterns from text data.

Logistics companies can employ text mining techniques to analyze shipping labels.

Below is an example of a common shipping label that a text mining algorithm can derive valuable insights from that the naked eye would miss.

To apply text mining, information is first extracted with optical character recognition (OCR) technology. 

What follows is the raw OCR response from the shipping label above. 
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E\n\nPart # 156148-434 MTW EXP 02/23.\n\nORIGIN ID: JDYA (562) 946-1718\nWAREHOUSE\nCOMPULOCKS BRANDS INC.\n9115 DICE ROAD UNIT #18\n\nSANTA FE SPRINGS, CA 90670\nUNITED STATES US\nTO KYLE GRZYBOWSKI\n\nAll\n\nPACKAGEX\n500 7TH AVE 8TH FLOOR\n\nNEW YORK NY 10018\n\n(586) 260-2409\nTHU:\nPO: 4000210651\n\nTRK#\n0201\n\nAZ\n\nREF: SH22A004573\n\n2718 2716 2523\n\nH2 MTPA\n\nSHIP DATE: 08APR22\nACTWGT: 23.00 LB\nCAD: 253334140/WSX13600\nDIMS: 16x14x10 IN\nBILL SENDER\n\nDEPT:\n\nFedEx\nExpress\nE\n\nULUIGUI\n\nTUE-12 APR 4:30P\n** 2DAY\n**\n\n10018\nNY-US EWR\n\nShipBush\n

Without text mining applied, the OCR response doesn’t present any meaningful information to the end user. Only after the algorithm is applied can usable information become available, as shown in the examples below. 

The screenshot on the left includes meaningful information about the package and receiver while the image on the right includes meaningful information about the sender, as well as logistics attributes.

Component #5: Conversational interfaces and chatbots

Conversational interfaces, such as chatbots, are often the most visible applications of NLP. These systems can interpret natural language queries and respond, thereby simulating a conversation.

Many logistics companies now offer chatbot-based customer service to handle common queries like tracking shipments, estimating delivery times, or scheduling pickups. The chatbot can interact with customers through text or voice, providing quick and efficient service.

Component #6: Translation and multilingual support

In the global landscape of logistics, the ability to understand and interpret multiple languages is invaluable. NLP systems with multilingual capabilities can automatically translate incoming queries or documents, breaking down language barriers that might otherwise slow down operations.

Consider a scenario where a company has suppliers in China, warehouses in the United States, and customers in Europe. A multilingual NLP system could translate communications across the board, ensuring seamless operations.

Real-world examples of NLP in logistics

DHL uses chatbots for customer service

DHL has integrated an NLP-powered chatbot into its customer service operations. Unlike traditional rule-based chatbots, their system uses machine learning and NLP to understand customer queries in a more nuanced way. This allows DHL to resolve issues faster and provide more accurate tracking information, thereby increasing customer satisfaction.

“Automating some of the low-level queries with chatbots can really increase the value of each interaction between customers and human agents by letting them focus on more high-level queries. That basically increases our throughput by a multiplier, not just a marginal increase.” - Ben Gesing, Project Manager, Innovation and Trend Research @ DHL

Leveraging NLP and machine learning positions DHL for future scalability and adaptability. As the technology continues to evolve, the chatbot can learn from the vast array of customer interactions to offer even more personalized and efficient service. This learning capability is crucial for handling the fluctuating volume and variety of queries, especially during peak seasons or unforeseen events like supply chain disruptions. 

Integrating NLP into our logistics platform

One of the key areas where we utilize NLP within the PackageX logistics platform is in optical character recognition (OCR) for package labels and logistics documents. NLP is combined with OCR and deep learning to understand what scanned characters mean. The application of all of this technology creates a powerful AI system.

These capabilities are available within the PackageX Logistics Cloud as an API or through our Vision SDK that can convert any smartphone or tablet to an OCR, barcode, and QR code scanner.

While OCR itself is not new, we take it a step further by employing NLP and AI models to understand the scanned content accurately. Whether it's identifying shipping labels, bills of lading, or purchase orders, the AI system analyzes the data and extracts relevant information.

The business case for NLP in logistics

As of 2023, the NLP market size is valued at $24.1 billion and it is expected to soar to $112.3 billion by 2030, growing at a CAGR of 24.6%. This growth trajectory underscores the increasing adoption and confidence various industries have in NLP technology.

Today’s NLP algorithms have drastically improved, boasting high accuracy levels in understanding human language, both written and spoken. This brings substantial advantages in automating customer service, improving real-time tracking, and generating data-driven insights in logistics operations.

Considerations for using NLP in logistics

Implementing NLP in logistics holds promise, but is it the right fit for your specific business? To help decide, consider the following questions with your team.

Does your customer service team face overwhelming demand?

A common bottleneck in logistics is the high volume of customer queries related to order status, tracking, and other service issues. NLP-powered chatbots can automate the initial customer interaction, filtering and resolving simpler issues while forwarding complex matters to human operators. This enables your customer service team to focus on more complicated problems, thereby enhancing overall efficiency.

Do you struggle with real-time information dissemination?

Logistics companies often juggle intricate networks of suppliers, distributors, and customers. Real-time information exchange is crucial but often laden with miscommunication. NLP can analyze and summarize textual information like emails, contracts, and reports quickly. Furthermore, it can generate real-time notifications for critical situations, ensuring all stakeholders remain informed and can act promptly.

Are manual processes slowing down data analytics?

The logistics sector generates large sets of unstructured data, which requires considerable time and expertise to analyze manually. NLP can sift through this data, transforming it into actionable insights. For example, it can identify trends in customer complaints, predict potential bottlenecks in supply chains, or optimize routes by analyzing historical traffic patterns.

In summary, NLP offers a myriad of applications that can significantly benefit logistics operations, from automating customer service to enhancing real-time communication and data analytics. As you consider integrating NLP into your logistics business, focus on the areas where automation and analytics can yield the most significant benefits.

Getting started with NLP for logistics

If you're a logistics professional looking to incorporate natural language processing into your current workflow, these steps will set you on the right path.

Step 1: Identify the need

Determine the aspects of your logistics operations that could benefit from language data analysis. Common use cases include chatbot customer service, route optimization through textual data, and sentiment analysis for quality control.

Step 2: Set clear objectives

Outline the specific outcomes you aim to achieve with NLP. Are you interested in automating customer inquiries, enhancing supply chain visibility through textual analytics, or monitoring employee sentiment for improved workplace management? Knowing your goals will shape your technology choices and deployment plans.

Step 3: Select the right technology

Numerous NLP platforms and tools exist, so make your selection based on your defined objectives. Open source libraries like NLTK or spaCy can serve as excellent starting points. For more specialized needs, consider for enterprise grade solutions that provide APIs and scalable cloud-based platforms.

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The rapidly expanding eCommerce landscape means that there’s also a much greater demand for fast and efficient shipping options. Online shopping has become the norm for millions of shoppers who want their packages delivered fast. Businesses must find the most efficient and cost-effective ways to expedite shipping.

According to Statista, expedited shipping is the top reason why 80% of online shoppers prefer to buy from Amazon. This means eCommerce businesses looking to improve their bottom line and remain competitive would do well to follow suit.

This guide outlines all you need to know about expedited shipping and how you can implement it for your retail business.

What Expedited Shipping Entails

Expedited shipping is faster than standard and express shipping, which we’ll also look into.

Usually, trucks assigned to transport expedited packages travel directly from the warehouse to their designated delivery destinations without any stops. The drivers assigned to these vehicles also take the fastest routes possible to ensure that the packages are delivered with utmost urgency.

Delivery speed will vary depending on the courier, but expedited shipping generally includes the following:

Various factors may affect the specific duration of expedited shipping, such as the carrier, the eCommerce platform or retailer’s logistics network, and the source and destination of the parcel.

Retailers usually count shipping time from the moment the order is shipped out, not at the time of order placement. As such, shipping times don’t include the order processing period, especially if a customer places it on weekends or holidays.

What Types of Goods Are Usually Expedited?

Expedited shipping is often used for the following products:

Perishable Goods

Food, frozen items, and other perishables that need to be delivered unspoiled are shipped in temperature-controlled vehicles. Sellers that offer perishable items usually offer expedited shipping options to prevent damage and expiry of these goods.

Fragile Goods

Items prone to breakage or damage are labeled fragile and best delivered via expedited shipping. This significantly reduces the chances of the items getting damaged in the mail alongside hundreds of other packages.

Standard delivery vehicles also transport items in a start-stop manner, so constant jerking motions may cause fragile items to break while in transit.

Luxury Items or Expensive Products

Extremely valuable items or expensive goods are typically delivered via expedited shipping to reduce the risk of theft, product damage, or package misplacement.

Time-Sensitive Goods

Items that need to be delivered immediately for various reasons may include groceries, medicines, medical supplies, equipment, etc. These will usually be expedited especially if they are needed to fill a shortage at a certain facility or are urgently needed by patients and other consumers.

What’s the Difference Between Expedited Shipping and Other Options?

Let’s take a look at how expedited shipping stacks up compared to other shipping options:

Expedited Shipping vs. Standard Shipping

Standard shipping services are the default option as they are the most affordable for retailers and consumers. In the United States, standard shipping usually means that packages will be delivered within three to seven business days. However, specific durations vary depending on the shipping carrier and fulfillment provider.

Generally, standard shipping is slower as packages are processed and delivered at a normal schedule. They are not marked as urgent or prioritized in any way. Couriers conduct standard shipping in large batches to fulfill more orders per trip and maximize their shipping channels.

In some cases, shipping carriers may set their standard shipping period to two days at the fastest—a timeline that’s close to the maximum for expedited processes. However, expedited shipping is the best bet for shoppers who need their orders at the earliest possible time to get their items delivered next day or within two days at most.

Expedited Shipping Services vs. Express Shipping

Express shipping is faster than standard shipping—orders are shipped with special provisions so that they arrive at the recipient’s doorstep relatively quickly. These methods include shipping through air, sea, or a mix of multiple channels to meet the express timeline.

Express shipping often guarantees that packages will arrive within one to three business days. While sometimes the terms “express shipping” and “expedited shipping” may be used interchangeably, expedited shipping is technically quicker and delivered with utmost urgency.

Key Benefits of Expedited Shipping

Aside from speed, expedited shipping offers many advantages for retail leaders. Here are a few of the most important benefits of providing expedited delivery options for your e-commerce store:

Prevent Cart Abandonment

Statistics show that almost 70% of online shoppers abandon their carts for a variety of reasons, and one of them is unsatisfactory delivery offerings. In fact, 22% of e-commerce shoppers reportedly didn’t go through with their purchases upon seeing the delivery options at check-out.

Offering affordable, expedited shipping options and being transparent about delivery times can help reduce cart abandonment and boost conversion rates.

Protect Items During Shipping

The National Retail Federation (NRF) reported a loss of approximately $816 billion in sales in 2022 due to customer returns. One of the top reasons for returning products was product damage incurred during shipping. Because the demand for online shopping continues to increase, items are shipped in bulk and risk being damaged in the process.

While no one intends for this to happen, many factors (e.g., product handling and overcrowded shipment hubs or vehicles) can lead to damaged items in transit.

Expedited shipping’s non-stop delivery routes significantly reduce the risk of damaging fragile and expensive items.

Increase Customer Satisfaction

Research has shown that 60% of online shoppers make purchasing decisions based on the convenience of delivery options. Offering fast, affordable shipping like express and expedited delivery gives retailers an undeniable edge against their competition.

As cited earlier, Amazon is a classic example of this and should be emulated by e-commerce businesses looking to increase their sales.

Drive Repeat Purchase Rates Up

Repeat purchase rate (RPR) is a metric that measures the number of customers who repeatedly purchase from a certain business. In the context of e-commerce, it has been found that RPR is responsible for generating 40% of a business’s revenue. Astoundingly, these shoppers only make up a small percentage (8%) of a brand’s overall customers.

By ensuring that all shoppers get their items securely and promptly, e-commerce businesses can drive RPR way up. Satisfied customers are more likely to repurchase from their trusted stores.

Cut Storage Costs

Expedited shipping leads to increased sales, meaning items spend less time in storage. This saves e-commerce retailers thousands of dollars on holding costs. Businesses that offer expedited shipping can clear their inventory much more quickly and make better use of existing warehouse storage space.

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How to Offer Expedited Shipping and Protect your Margins

Expedited shipping will inevitably cost more than standard options. It can be a prohibitive expense, but there are ways to save money.

Pass it to the Shopper

The most straightforward way to offer expedited shipping without having it create a significant dent in your bottom line is to pass the burden to your customers. By making it optional rather than a default shipping option, you can charge the customer whatever the shipping carrier will quote upon checkout. This option is viable if you sell items that may weigh a lot, with large dimensions, or offer long-distance and international shipping.

Set Valid Shipping Zones

Limiting the delivery range for expedited shipping is another option. By setting certain shipping zones within a certain distance, you can minimize the cost of expediting delivery, whether you plan to shoulder the cost or have the customer pay for it.

Set Weight or Size Limits

If you don’t want to limit shipping options by geography, you can set weight limits so that only smaller items are expedited. This will limit surcharges from your shipping carrier.

Negotiate with Multiple Carriers

Shipping carriers have varying expedited shipping arrangements, so it’s best work with a dynamic platform that can help you decision between rates offered by multiple carriers. While carriers essentially deliver packages at similar speeds, other elements like dimension restrictions, package tracking, and prices may differ.

Outsource fulfillment to a 3PL

You can also partner with a third party that ships products from fulfillment centers closest to your customers. This will ensure faster delivery times and lower carrier costs, as fulfillment centers will usually have ties with carriers as well.

Conclusion

Modern consumers expect a lot from the retail businesses they order from, such as shortened delivery times. Expedited shipping offers many advantages to businesses and consumers, and they undoubtedly outweigh the extra costs that it may incur.

PackageX Ship offers plug and play apps, SDKs and APIs that enable retailers to ship to shoppers faster, easier and smarter. One request through our shipping tool instantly shows rates from a massive network of traditional and on-demand carriers, allowing you to dynamically match the best shipping rate with every shopper every time.

Even at a premium price, e-commerce businesses can save money on expedited shipping by opting for flat-rate boxes, partnering with fulfillment centers, charging carrier costs to customers, or setting weight and geographical restrictions. 

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Companies face a complex landscape when selecting logistics software. While specialized applications promise to handle various aspects of supply chain and logistics management, the sheer variety often leads to a fragmented technology stack. 

Companies may find themselves using one software for warehouse management, another for transportation, and yet another for inventory tracking. 

A recent survey showed that 67% of supply chain professionals consider Excel to be a supply chain management software, an approach that can leave key information dispersed across multiple spreadsheets. This scattered approach creates integration challenges, making it difficult to have a single, unified view of operations.

This multi-software environment not only raises the operational complexities but also increases costs substantially. Each software comes with its own licensing fees, service fees, and learning curve. As a result, instead of streamlining logistics processes, companies may find themselves burdened by the very technology meant to simplify their operations.

How to select the right logistics software

"Every company needs to think globally about their business, and strategically about technology.” ~ Daniel Stanton, Mr. Supply Chain

Step 1: Identify your software needs

Planning up front can save you from a reactive bolt-on approach down the road. Which logistics operations are manual? Where are you lacking visibility? And finally, what operations do you want to automate to get smarter for you business and customer? Think about priorities now and later. Reducing supply chain costs from 9% to 4% can double profits so don’t overlook this step. Correlate your business goals with your software needs to save yourself time and effort in the long run. 

Step 2: Shortlist modular logistics platforms

Look for platforms that have APIs for easy customization and migration. These are more cost-effective since you’ll only pay for features you use, rather than rushing to find new software as issues arise. 

Step 3: Select the most unified platform

Ideally, the logistics modules/APIs should all be connected on a platform where operators and admins can easily interact with data and make no-code configurations. The more integrated the platform is, the less time you’ll have to spend putting out fires with new and expensive software. 

Step 4: Choose a platform that enables automation

The solution that will make the biggest impact on your business will prioritize data digitization at every logistics operation. Data digitization vs, capturing it on a piece of paper, spreadsheet, or within a soled legacy system, is a prerequisite for automation.

Which logistics software to avoid

“Companies must look at skills relevant for the new normal. What made us successful yesterday may not be what takes us forward.” ~ Kris Timmermans, Supply Chain Management Review

In Q2 of 2022, J&J snack foods lost an estimated $20 million in revenue after a transition to a new ERP led to “picking and scheduling issues.” This is, sadly, typical. Three quarters of ERP transitions go over schedule or budget, and two-thirds bring a negative return on investment. 

Mission Produce faced a similar challenge this year when they were hit with a $4.1 million operating expense increase after an ERP transition. ERPs are a great system of record, but they can’t be relied on to deliver logistics efficiencies. 

If you’re looking for a better software solution for your company, avoid bolt-on software that fills in for a shortcoming of your current logistics software. 

For example, if you have outdated supply chain software, visibility software that gives you insights into where shipments and inventory are in your chain will not be included in the total package. If visibility is not included in the core supply chain software, it’s best to switch to avoid piling up tech debt.

To ensure you’re not taking on too much at once, request demos and trials. Getting hands-on experience with a variety of different tools can offer you a window into a tool’s functionality before you commit to it. Also don’t overlook total cost of ownership (TCO) which includes ongoing licensing fees, maintenance, customization, and training costs.  Ignoring the full financial picture can lead to budget overruns and financial strain.

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How to transition to a unified logistics platform

Michael Hill, a Commonwealth jewelry company operating in Australia, Canada, and New Zealand is a supply chain transition success story. Three years ago, realizing that they needed to optimize their shopping experience, they brought their whole supply chain under one software umbrella. They launched an internal operation to streamline their entire supply chain and never looked back. 

“The really exciting part is how fast we can adapt to changing business needs. We are driving efficiencies in our warehouse, trialing new fulfillment models, and unlocking deeper insights into customer experiences faster than ever before.” ~ Ian Dallas, Program Manager of Supply Chain and Finance @ Michael Hill 

Transitioning to new software can be complex, but there are several steps you can take to make it less daunting:

• Set clear goals and objectives. Draft a detailed project plan that outlines the scope, goals, timelines, and responsibilities involved with the software transition.
  
• Use the strangler fig pattern. Choose one feature at a time (Inventory application for example) to move from your old platform to the new platform. If this experiment is successful, move more features to the new platform.
  
• Work closely with the software provider. Configure the new system to match your specific business needs. Customize workflows, reports, and user interfaces so that your organization can hit the ground running with the new software.
  
• Continuously monitor performance. Gather feedback from users within your organization and make necessary adjustments to optimize its ease of use and address any issues that arise.

Additional resources

Computer vision is a field of artificial intelligence (AI) that enables any piece of hardware with a camera to interpret data and make decisions based on captured images. 

In logistics, computer vision is used in handheld devices like smartphones to extract data from package labels and detect damages on parcels offloaded at receiving docks. Computer vision is also used in other hardware like drones to facilitate real-time inventory tracking in warehouses.

In this article, we’ll help you understand how adding computer vision technology to your logistics operations can decrease human error and increase the speed at which packages move through your supply chain.

Evolution of computer vision in logistics

To understand how computer vision is used today for logistics applications, it helps to know why it was introduced to the industry in the first place.

Early adoption

The exact identification of the "first" company to use computer vision in logistics might be a little elusive, given the vastness and diversity of the sector. However, one notable early adopter in the realm of large-scale companies is Amazon.

Amazon started exploring computer vision applications to improve its logistics in the early 2010s. Their fulfillment centers saw the integration of Kiva Systems robots, a company Amazon acquired in 2012. 

These robots, equipped with computer vision capabilities, navigate the warehouse floors autonomously, locate items, and bring them to human workers for packing. The goal was to streamline the picking and packing process, reduce human errors, and improve overall efficiency.

Amazon continues to use this technology to optimize its warehousing operations. The technology also inspired Amazon Recognition, an AWS service for robotics that improves quality assurance and operational efficiencies in manufacturing applications.

Modern applications

Computer vision technology is no longer reserved for the juggernauts of the world. With cloud services like Amazon Recognition and logistics cloud suites like PackageX, you can build for almost any application imaginable. However, there are three popular applications that computer vision is best suited for in logistics.

1. Inventory management: Imagine having a warehouse worker who never blinks and keeps an eye on the shelves 24/7. Computer vision does just that. It automatically counts items, keeps track of what’s in stock, and sends alerts when it’s time to restock. 
2. Parcel sorting and tracking: This is like having a sorting hat, but for parcels. Computer vision swiftly identifies and sorts parcels, whether by size, shape, or destination. It also tracks packages in real-time within facilities, reducing the chances of misplaced items.
3. ‍Quality inspection: Computer vision systems can meticulously inspect goods and products for defects or damages, ensuring that only quality items make it through the supply chain. This saves on costs related to returns and reverse logistics.

Components of computer vision in logistics

Component #1: Image acquisition

Image acquisition is responsible for capturing visual data for further analysis and automation. High quality images are essential for assessing the condition of goods, reading labels, and recognizing objects.

In warehousing, cameras and sensors acquire images of incoming and outgoing packages, ensuring accurate inventory management and identifying possible damages or discrepancies. This acquisition process is often facilitated through smartphones, scanners, ground robots, and drones that capture aerial views of large stock areas.

The application of image acquisition in logistics is not limited to warehousing but extends to transportation as well. For instance, in vehicle routing, images of road conditions, traffic patterns, and obstacles are acquired in real-time to aid navigation and optimize delivery routes.

Component #2: Image pre-processing

Once images are acquired, the next step involves the manipulation and enhancement of images for better interpretation by machine learning models. Techniques such as noise reduction, histogram equalization, and normalization are employed to eliminate noise and maintain consistent results under different lighting and weather conditions.

Component #3: Object recognition

Object recognition enables the identification and classification of objects within images. 

In logistics, it’s applied to recognize various items, packages, vehicles, and even people. For example, in a warehouse setting, object recognition algorithms are used to identify different products and their quantities, read shipping labels, and route packages to the correct conveyor belts and carrier vehicles. 

The application of object recognition in logistics is not confined to warehouses; it is extensively used in transportation. The real-time recognition of road signs, obstacles, and other vehicles contributes to safer and more efficient transportation.

Component #4: Decision processes

Decision processes are the culmination of the preceding components, where the extracted features and recognized objects are used to make informed decisions by pairing computer vision with artificial intelligence and natural language processing (NLP) technology. 

In logistics, combining CV and NLP is integral for optimizing operations, allocating resources, and responding to changing conditions. 

When it comes to inbound logistics and label scanning, the technology is used alongside AI to train itself with millions of labels in your specific industry, country, and language. Based on the recognition of packages and their features, decisions regarding sorting, storage, and transportation are made, ensuring the timely and cost-effective movement of goods.

How computer vision is used in real-world logistics

Tyson uses CV to count packed chicken trays

Tyson Foods announced a collaboration with AWS in February 2020 to implement computer vision technology at its chicken facilities to refine inventory management. This collaboration led to the development of a cutting-edge chicken tray counting CV solution that offers real-time insights into inventory quantities.

The traditional methods Tyson used for monitoring packed chicken tray counts wasn’t very accurate and couldn't provide immediate feedback on overproduction or underproduction. Given the vast processing capacity of Tyson (45 million chickens per week), achieving precise counting in production counting is paramount. 

The solution developed by Tyson uses CV to offer accurate, real-time assessments of processed chicken, which helps employees promptly spot and address potential issues in the packaging and production processes.

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According to the AWS blog post about this solution:

“A trained object detection model can predict bounding boxes of all the trays placed in a bin at every video frame. This can be used to gauge tray counts in a bin at a given instance. We also know that at any point in time, only one bin is being filled with packed trays; the tray counts continuously oscillate from high (during filling) to low (when a new bin obstructs the view of filled bin).”

WeWork uses CV to ingest shipping label data

As the coworking company WeWork expanded its global footprint, it faced significant challenges in package management for its mailrooms. Their initial barcode-based system was flawed, especially when a single package passed through multiple couriers, leading to multiple barcodes. This caused confusion in the system and resulted in incorrect notifications and lost packages. 

To solve this issue, WeWork uses PackageX Receive. 

With this technology, WeWork employees who manage inbound logistics take a picture of a package label using a smartphone. PackageX then uses optical character recognition (OCR) and computer vision to read every bit of text on the label, including barcodes and QR codes. Next, PackageX Receive uses NLP technology based on an algorithm trained with over 10 million labels to turn the raw text into meaningful data. 

The image below shows how the system buckets the data captured into 34 classes, inferring the sender/receiver details, package information, and other logistic attributes. 

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PackageX Receive yields over 95% accuracy in terms of reading shipping labels across the globe, making it an industry-leading solution for logistics receiving and data ingestion. The system also notifies relevant coworking tenants and stores the information, streamlining global operations with its support for 57 languages. 

With this blend of computer vision and NLP, WeWork reduced package processing time by 85% and saved an average of one hour daily per location, per employee. These savings were redirected to enhance customer service and reduce operational costs.

One reason the WeWork team sees so much success with PackageX OCR technology is that it was built from the ground up with advanced AI and machine learning algorithms – other providers typically tack on OCR to existing capabilities. Also, the solution was easy for WeWork to adopt as the solution requires no advanced hardware – just an everyday smartphone.

The business case for computer vision in logistics

In 2020, the computer vision market size stood at $3.6 billion and it's projected to reach $19.1 billion by 2027, growing at a CAGR of 25.7%. This rapid growth indicates the widespread adoption and trust industries are placing in the technology. 

In less than a decade, today’s computer vision systems have reached 99 percent accuracy from 50 percent, making them more accurate than humans at quickly reacting to visual inputs. This means significant cost savings in storing, sorting, picking, packing, shipping, and many other logistics-related activities.

Considerations for using computer vision

Optimizing logistics operations with computer vision is a good idea in general, but is it right for your specific business? What follows are some questions you can consider with your team to determine this.

Is too much time spent on manual data entry?

One of the primary challenges faced by many companies in the logistics sector is the extensive time spent on manual data entry. Tracking inventories, updating records, and ensuring accurate data input are repetitive tasks. 

By automating data entry processes using cameras and advanced algorithms, computer vision can instantly capture, analyze, and input data into systems without the need for human intervention. This can be particularly effective in scenarios such as scanning barcodes, reading labels, or even detecting and categorizing goods as they move through a supply chain.

Is data entry prone to human error?

Human error remains one of the most pressing challenges in the logistics sector. In an environment characterized by fast-paced operations and vast amounts of data, even minor mistakes can result in significant losses. Computer vision is capable of consistently monitoring, analyzing, and automating various tasks with a degree of accuracy and speed that surpasses human capabilities.

When considering the integration of computer vision to reduce human error, companies must evaluate its potential in areas such as inventory management, shipment tracking, and warehouse operations.

In inventory management, computer vision systems can scan and recognize products, ensuring the correct items are picked, packed, and shipped, thereby reducing misdeliveries or returns. Similarly, in warehouse operations, such systems can monitor the movement of goods, ensuring they're stored in the correct locations, while also identifying potential safety hazards.

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Getting started with computer vision for logistics

If you're a logistics professional aiming to integrate computer vision with your existing operations, here's a simple pathway to get you started.

Step 1: Identify the need

Pinpoint areas in your logistics operations that would benefit from visual data interpretation. Common applications include warehouse management, package sorting, vehicle tracking, and damage inspection.

Step 2: Set clear objectives

Determine the specific goals you want to achieve with computer vision. Are you looking to speed up package sorting, improve accuracy in inventory counts, or monitor cargo in real-time? Having clear objectives will guide your technology choices and implementation strategies.

Step 3: Select the right technology

With multiple computer vision platforms and tools available, make choices based on your objectives. Open-source platforms like OpenCV can be a good starting point, but for more complex applications, consider specialized enterprise solutions that offer APIs or pre-built apps.

In an era where instant gratification is not just desired but expected, the role of distribution centers has become pivotal in ensuring a seamless supply chain. The rise of ecommerce has further amplified the importance of these hubs, necessitating a deep dive into their functionalities, technologies, and operations to comprehend how they manage to meet escalating consumer demands.

What is a Distribution Center?

A distribution center is a principal node bridging the gap between a retailer and its shoppers. It is a strategic point in the supply chain where goods are received, stored, and dispatched, ensuring that the right products reach the right shoppers at the right time. The essence of a distribution center lies in its ability to streamline logistics, manage inventory, and facilitate swift and efficient order fulfillment.

Core Functions of a Distribution Center

The core functions of a distribution center include:

What is a Distribution Warehouse?

A "distribution warehouse" is a term that blends the concepts of a distribution center and a warehouse, embodying elements of both facilities. It's a logistics hub that stores products and also plays a role in distributing those products to retailers, wholesalers, or directly to consumers. The term reflects the evolving nature of logistics facilities in adapting to the demands of modern supply chains, especially in the context of ecommerce.

What is the Difference Between a Warehouse and a Distribution Center?

The lines between warehouses and distribution centers have blurred over the years, especially with many warehouses now offering fulfillment services. However, there are still distinct differences between the two in terms of their primary functions, operations, and strategic roles within the supply chain. Here's a breakdown:

Technologies Used in Distribution Centers 

Distribution centers utilize various technologies to enhance efficiency, accuracy, and speed in their operations. Here are some of the key technologies employed:

• Warehouse Management System (WMS): Software that assists in managing inventory, orders, and data within the center.
  
• Automated Storage and Retrieval System (AS/RS): Automated systems that store and retrieve items, enhancing speed and efficiency.
  
• Robotics and Automation: Robots and automated systems that assist in picking, packing, and moving goods.
  
• IoT and Smart Technologies: Devices and technologies that facilitate real-time tracking, data analytics, and intelligent decision-making.

Distribution Center FAQs 

How big are distribution centers?

The size of distribution centers can vary widely based on the needs of the businesses they serve, ranging from smaller, localized hubs to massive centers exceeding a million square feet.

What is the difference between a distribution center and a fulfillment center?

While both manage inventory and order processing, distribution centers often handle bulk shipments to retailers, while fulfillment centers typically manage ecommerce order fulfillment, dealing with individual customer orders.

How long does a package stay at a distribution center?

A ready-to-be-shipped package should remain in a distribution center for a shorter period. Typically, if orders are placed before a set time, like noon, most distribution centers have the capability to dispatch packages on the same day when carriers arrive for collection.

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Modernize Your Distribution Center with PackageX

PackageX's Logistics Cloud is a transformative solution designed to modernize distribution center operations. By seamlessly integrating with various technology stacks, it caters to the specific needs of 3PLs, retailers, suppliers, manufacturers, and more. Its innovative OCR API can turn any smartphone into an efficient label scanner, capturing all details from text to barcodes and QR codes, thereby enhancing inbound logistics. PackageX provides customizable workflows within the distribution center to optimize sorting, storage, and order fulfillment processes. 

For outbound logistics, its advanced APIs automatically pinpoint the most economical shipping rates, streamline dispatch planning, and continuously track packages until their successful delivery. In essence, PackageX stands as a pivotal tool for distribution centers seeking streamlined operations and modern efficiency.

Store-based fulfillment decreases shipping times and improves ecommerce experiences by having local stores fulfill online orders with inventory that’s also available to in-store shoppers. However, this omnichannel fulfillment method can make retailers vulnerable to stockouts that leave shelves bare and compromise in-store shopping experiences.

How stockouts happen with store-based fulfillment?

Before “ship-from-store” became a popular method of ecommerce fulfillment, 72% of in-store stockouts happened due to faulty in-store ordering and replenishing practices. Many retailers solved this challenge with IT solutions. However, these solutions were not built with ecommerce in mind and became untenable when retailers started adopting omnichannel fulfillment.

There are still many causes of in-store stockouts today, but the following scenario is often what plays out when ecommerce fulfillment is responsible.

How to avoid ship-from-store stockouts?

The following three steps will help you minimize stockouts when integrating ecommerce fulfillment with in-store inventory.

How Gamestop avoided store fulfillment stockouts?

Gamestop is notorious for adopting ship-from-store fulfillment early on without compromising their beloved in-store shopping experience. 

In 2016, GameStop implemented this fulfillment strategy to triple its e-commerce inventory. By teaming up with a third-party technology provider, GameStop was able to link in-store POS systems with its online order management systems to offload excess inventory.

This connection facilitated the ship-from-store method that was particularly advantageous for GameStop given its trade-in model. Linking store-based inventory with ecommerce channels helped them offload excess games (old versions of games that were traded in for new ones).

However, store-based fulfillment didn’t work for every company around this time. In 2015, Target relied too heavily on store inventory for online orders which led to stockouts in physical locations.

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Additional resources for optimizing ship-from-store

The Practitioner’s Guide to Ship-From-Store Implementation (ebay Enterprise) - 32-page ebook with considerations or adding ship-from-store to an omnichannel fulfillment strategy.

5 Ways to Start Distributing from Your Retail Store (USPS) - Blog post with additional information about transforming your stores into effective distribution centers.

‍PackageX Inventory Management: Our cloud-based logistics solutions for combining offline and online inventory data and giving employees the tools they need to be successful.

Fulfillment center and warehouse are the terms often used interchangeably in logistics and supply chain management, but they actually serve surprisingly different purposes. While both are essential in storing inventory, their functions, capabilities, and goals vary significantly. Therefore, understanding the difference between fulfillment centers and warehouses is crucial in today's competitive retail landscape. Below, the two options are compared and contrasted in depth.

What is a Fulfillment Center?

A fulfillment center is a specialized facility retailers and third-party logistics providers (3PL) use to receive, store and manage inventory, plus fulfill shopper orders. Whether outsourced, managed in-house, or established in-store, they play a vital role in the supply chain, serving as hubs where products are received, processed, picked, packed, and shipped out  to shoppers. 

As ecommerce has surged in recent years, many retailers have also begun using their brick-and-mortar stores as fulfillment centers, leveraging their physical locations to expedite the delivery process and improve the shopper experience. An example that illustrates the strategic use of stores as fulfillment centers by retailers can be seen in Target's approach. Target utilizes its stores as fulfillment centers, which enables the company to reduce the time and costs associated with shipping orders.

Fulfillment centers are strategically designed and organized to maximize efficiency, accuracy, and speed in order processing and last-mile delivery. They often utilize advanced automation technology and supply chain management systems, such as warehouse management software, to optimize these processes. This makes fulfillment centers a crucial component of modern ecommerce operations.

How Does a Fulfillment Center Work?

Here's how a fulfillment center typically works: 

Receiving and Storing Inventory: Suppliers or manufacturers send products in bulk to the fulfillment center. Upon arrival, the items are scanned into inventory and stored in designated locations within the center.

Inventory Management: Fulfillment centers are responsible for tracking inventory levels across the product catalog and sharing this information broadly to prevent stockouts or overstocking. Many fulfillment centers have adopted modern inventory management software so they can track and provide inventory level visibility in real-time.

Order Processing: When a shopper places an order, the fulfillment center retrieves the items, which are then picked from shelves and packed for shipping with appropriate packaging materials.

Shipping: The packaged order is then labeled with a shipping label and handed over to a carrier, such as FedEx, UPS, or a local courier service, for delivery to the customer. 

Returns Management: Fulfillment centers often handle returns as well. When a customer initiates a return, the center processes it, assesses the condition of the returned items, and restocks them if they meet quality standards.

Benefits of a Fulfillment Center

Fulfillment centers can improve ecommerce operations, providing a seamless, efficient, and customer-friendly order fulfillment process. Here are some key benefits of utilizing fulfillment centers:

What Does a Warehouse Do?

On the other hand, warehouses are facilities used to store inventory and other items, typically in bulk, for an extended period of time. They provide a secure and organized environment for storing various types of goods, merchandise, raw materials, and excess inventory. Products are stored on shelves, racks, or in designated storage areas within the warehouse. Warehouses also facilitate cross-docking, a process that expedites the movement of goods by unloading them from incoming trucks or containers and then immediately loading them onto outgoing ones, minimizing storage time and enhancing overall supply chain efficiency.

According to an article from the Wall Street Journal, retailers and logistics operators are facing challenges in finding adequate space to store the increasing volume of goods that have overwhelmed warehouses. Prologis Inc., a logistics real-estate giant, anticipates that the surge in inventories might necessitate an additional 500 million square feet of warehouse space.

What is a Fulfillment Warehouse?

A fulfillment warehouse is a facility that combines the functions of both a traditional warehouse and a fulfillment center. It stores inventory and is equipped to process and fulfill customer orders. This means that, like a fulfillment center, it focuses on efficient order processing, including picking, packing, and shipping individual customer orders.

Omnichannel fulfillment has become a crucial aspect of modern retail operations. Retailers are adapting to changing consumer expectations by optimizing their warehouses for omnichannel fulfillment. They are now transforming their traditional warehouses into multifunctional facilities that combine aspects of both fulfillment centers and warehouses.

Fulfillment Center vs. Warehouse: What’s the Difference?

The main differences between fulfillment centers and warehouses lie in their primary functions and the services they offer:

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Frequently Asked Questions

Can a brick-and-mortar store be used as a fulfillment center?

Yes, utilizing a brick-and-mortar store as a fulfillment center has become a strategic adaptation for many retailers in the evolving retail landscape. This approach leverages the physical space of the store to store, pack, and ship online orders, thereby reducing delivery times by utilizing inventory that is proximate to customers. It also offers customers flexible shopping options like Buy Online, Pick up In-Store (BOPIS), and curbside pickup, enhancing the convenience and accessibility of online shopping.

Can an outsourced fulfillment center do one- or two-day delivery?

Yes, any shipping speed can be achieved coming out of an outsourced fulfillment center, and many retailers are leveraging fast shipping to meet the growing customer demand for rapid delivery services. The ability to offer expedited delivery options largely hinges on the strategic location of the fulfillment center, efficient inventory management, and whether the retailer is using on-demand carriers or a robust shipping carrier network.

What are the advantages of an in-house fulfillment center?

Managing an in-house fulfillment center offers retailers several benefits, primarily revolving around having complete control over the order fulfillment process ensuring adherence to brand standards in packaging and customer service. It provides the ability to manage inventory directly, reducing risks of stockouts or overstocking, and enables swift decision-making and problem resolution in operations.

Unlock Seamless Fulfillment with PackageX

The PackageX Logistics Cloud modernizes inbound, outbound, and four-wall logistics for fulfillment centers and warehouses. The Platform’s flexible suite of apps and APIs can easily integrate with any technology stack to meet the unique requirements of logistics service providers, retail stores, and more. 

PackageX’s OCR API streamlines inbound logistics operations by converting any smartphone into a powerful universal label scanner that reads every bit of text on the label, including barcodes and QR codes. This can be automatically matched against digital manifests and inventory or synced with an Order Management System (OMS). 

Streamline four-wall logistics operations with flexible workflows for meeting your sorting, storage and order fulfillment needs. PackageX’s outbound logistics APIs automatically select the best rate for every package, plan for dispatch, and track the item’s journey to its final destination.

It goes without saying that meeting customer shipping and forwarding service level agreements (SLAs) is a top priority for every supplier, manufacturer, distributor and wholesaler. For leaders in the commercial logistics space, SLAs aren’t simply contractual obligations, but opportunities to preserve their reputation, build relationships and drive operational efficiency. 

Running shipping and forwarding operations without the ability to compare options from multiple providers, and do it with a real-time understanding of rates, is no longer efficient or effective.

Benefits of Using a Dynamic Carrier Marketplace

A dynamic shipping carrier marketplace automatically pulls the best rates from traditional and on-demand carriers, providing the tools and flexibility needed to consistently meet or exceed SLAs. 

Here are some of the benefits of dynamic shipping carrier marketplaces:

How to Use PackageX Ship to Manage SLAs?

PackageX Ship dynamic carrier marketplace & rate selection engine automatically selects the best rate from a growing list of national and on-demand carriers, making it easier than ever to meet SLAs.

This tutorial is a step-by-step guide on how to use PackageX Ship to meet and exceed customer demands in today's competitive logistics market.

Step 1: Sign In to PackageX Cloud and Head to "Ship"

Step 2: Access the Settings

1. Within Ship, click on "Settings".

Step 3: Manage Providers

Manage Common Providers:

1. Click on "Manage Providers."
2. In the "Common Providers" tab, you'll find a list of common carriers such as FedEx, USPS, DoorDash, and UPS.
3. These common carriers are enabled by default, except for "Private Rates."
4. Customize your carrier selection by enabling or disabling specific providers as needed.

Manage Other Providers:

1. In the "Other Providers" tab, you'll find less common providers that can be configured.
2. Select the providers you want to see shipping rates from when generating a label.
3. The selected providers will be the only ones displayed when generating shipping labels in the future.

Step 4: Manage Service Levels

1. Return to the "Settings" menu and select "Manage Service Levels."
2. You'll find various service levels available for selection, including in-person pickup, curbside pickup, on-demand, same-day, next-day early, next-day earlier, two-day, three-day, and ground delivery.
3. You will also notice "Library Mail" and "Media Mail," which are USPS Only rate classes. These can be enabled for discounted rates for educational institutions or media shipments.

Step 5: Create a Shipment

1. Now, go to the "Shipments" section and create a new shipment to experience the filtered providers and service levels in action.
2. Add the sender's, recipient's, and package details.
3. Click "Get Shipping Options."

Step 6: Select a Rate

The next step is to select a shipping rate. Here, you will only see the list of providers and service levels you have chosen. The return rates will be based on your specified settings in the Ship app.

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Step 7: Complete the Shipment

1. Select the rate that suits your needs.
2. Add payment details.
3. Click "Purchase Label."
4. You can now print the label using any printer.
5. Congratulations! Your shipment is successfully created, meeting your selected SLAs.

Following these steps, you can efficiently use PackageX Ship to manage your shipping providers, service levels and create shipments while meeting your specific SLAs and preferences.