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Monthly roundup of top stories in e-commerce fulfillment and warehousing.

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Retail
Manufacturing
E-commerce
Schedule and receive shipments
Schedule shipments based on inventory needs and storage capacity. Receive shipments at the warehouse or store.
Schedule shipments based on production requirements and warehouse capacity. Receive shipments at the warehouse.
Schedule shipments based on inventory needs and warehouse capacity. Receive shipments at the warehouse.
Verify documentation
Check shipment documentation, including the packing list, invoice, and Bill of Lading (BOL).
Check shipment documentation, including the packing list, invoice, BOL, and material certifications.
Check shipment documentation, including the packing list, invoice, and BOL.
Inspect the shipment for damage
Visually inspect the shipment for any visible damage or discrepancies.
Visually inspect the shipment for any visible damage or discrepancies.
Visually inspect the shipment for any visible damage or discrepancies.
Perform quality control (QC)
Conduct QC based on retail standards (e.g., product appearance, packaging quality).
Conduct QC based on manufacturing standards (e.g., material specifications, safety compliance).
Conduct QC based on e-commerce standards (e.g., product appearance, packaging quality).
Record and update inventory
Update inventory records with new stock information.
Update inventory records with raw material, components, or finished goods information.
Update inventory records with new stock information.
Sort and segregate products
Sort products by category, department, or store location.
Sort products by production line, work center, or storage location.
Sort products by category, SKU, or storage location.
Store products in designated locations
Place products on shelves or in storage areas designated for each product category.
Store raw materials, components, or finished goods in designated storage locations.
Store products in designated storage locations based on SKU, size, or category.
Update Warehouse Management System (WMS)
Update WMS with product location, quantity, and status.
Update WMS with material, component, or finished goods location, quantity, and status.
Update WMS with product location, quantity, and status.
Communicate with stakeholders
Inform store associates, buyers, and management about new inventory arrivals.
Inform production planners, procurement, and management about material or component availability.
Inform order fulfillment, customer service, and management about new inventory arrivals.
Communicate with stakeholders
Inform store associates, buyers, and management about new inventory arrivals.
Inform store associates, buyers, and management about new inventory arrivals.
Inform store associates, buyers, and management about new inventory arrivals.
System
Key Points
Use Cases
Warehouse Management System (WMS)
- Centralized tracking and optimization of inventory levels.
- Processing orders, allocation, picking, packing, and shipping.
- Managing labor, equipment, and storage space.
- Monitoring inventory, order status, stock levels, and performance metrics.
- E-commerce fulfillment
- Retail distribution
- Inventory management
- Order accuracy and visibility
- Resource optimization
Warehouse Control System (WCS)
- Efficient coordination and control of material handling equipment.
- Integration with advanced automation systems for smooth operation.
- Optimizing equipment usage and status.
- Automated warehouses
- High-throughput environments
- Conveyor and sortation systems
- Robotics and AS/RS integration
Warehouse Execution System (WES)
- Orchestrating order fulfillment processes, and optimizing workflows.
- Assigning tasks, managing sequences, and resource allocation.
- Managing multiple processes, orders, and constraints.
- E-commerce with varied order profiles
- Multi-order picking and sequencing
- Cross-docking and sorting
- Complex order fulfillment
Basis
Fulfilled by Amazon
Walmart Fulfillment Services
Customer Base
Global reach with millions of customers
U.S.-based customer base
Storage and Fulfillment Fees
Varies based on product size, weight, and storage duration
It is based on product size, weight, and storage duration
Product Categories
Diverse range of categories
Focused on specific categories, emphasis on alignment with Walmart's offerings
Shipping Speed
Prime-eligible for fast shipping
Two Day shipping available
Returns Handling
Amazon manages returns on your behalf
Walmart handles returns for WFS products
Geography focus
Offers international shipping
Primarily serves the U.S. market
Monthly Fees
$39.99/month for professional plan
None
Fulfillment Service Fee
Starts at $3.22
Starts at $3.45
Peak Season Fees
Additional peak season fees apply from Oct 15, 2023, to Jan 14, 2024
Holiday Peak Fulfillment Fee applies from October to January
No. of Fulfillment Centers
185+ globally and 110 in the U.S.
31
Product Labeling
Provides shipping labels
Does not provide
Integration with Other Sales Channels
Integrates with multiple e-commerce platforms
Primarily integrates with Walmart's platform
Marketing and Promotion
Access to Amazon advertising
Access to Walmart's advertising platform
Category
Cross-docking
Dropshipping
Inventory
Products are briefly held at a warehouse or distribution center for sorting and consolidation
The retailer holds no inventory; products are shipped directly from the supplier to the customer
Fulfillment
The retailer or a third-party logistics provider (3PL) manages the entire fulfillment process
The supplier handles order fulfillment, including shipping and customer service
Scalability
Ideal for businesses with high inventory turnover rates, such as retail chains, e-commerce companies, and industries dealing with perishable goods or time-sensitive products. Examples include Walmart, Amazon, and companies in the food and beverage sector.
This model suits businesses looking to minimize upfront investment and operational overhead, such as small to mid-sized e-commerce retailers, niche product sellers, and companies that want to offer a wide range of products without holding inventory. Examples include online fashion retailers and specialty product stores.
Feature
3PL
Dropshipping
Inventory Ownership
Businesses using 3PL services maintain ownership of their inventory. The inventory is stored in the 3PL provider's warehouse, but the business owns the stock and is responsible for purchasing and managing inventory levels
In dropshipping, the retailer does not own or stock the inventory. Instead, products are sourced from suppliers who own the inventory and fulfill orders directly to customers on behalf of the retailer
Fulfillment Control
Moderate to high control over processes, including customization options.
Limited control, as the supplier handles packing and shipping.
Upfront Costs
Utilizing 3PL services requires an upfront investment in inventory, as well as potential setup fees for integrating with the 3PL's systems.
Very low upfront costs, with most dropshippers offering a pay-as-you-go model.
Scalability
Highly scalable, 3PLs can accommodate growth in volume and complexity.
Scalable, but potential limits are based on supplier capacity and stock availability.
Risk Management
With 3PL providers, businesses have a shared risk model. 3PLs mitigate logistics risks, but you retain some liability
Lower financial risk, but higher risk of supplier issues impacting customer experience.
Process
Role in Order Fulfillment

Receiving

The receiving stage involves receiving inventory from suppliers, inspecting goods, sorting, and storing them properly. For brick-and-mortar stores, this often involves preparing floor stocks. In contrast, e-commerce requires items to be ready for individual picking and packing, while omnichannel businesses must cater to both.

Inventory Management

Physical stores might do periodic stock checks, whereas e-commerce and omnichannel businesses typically rely on real-time inventory tracking systems to maintain accurate inventory levels and prevent stockouts and overstocking.

Order Processing

In e-commerce and omnichannel retailing, this involves warehouse workers picking the product from storage, packing it for shipment, and then moving it to the shipping station.

Shipping

E-commerce and omnichannel retailers must select the appropriate courier and service level, print shipping labels, and manage the order fulfillment logistics of getting the package to the end customer. Physical retailers, on the other hand, don't ship directly to customers, but they might transfer stock between store locations.

Returns Processing

E-commerce often sees higher return rates than physical stores and involves receiving returned items, checking them, restocking, or disposing. Omnichannel retailing adds complexity, as returns might come in from any channel, making it more challenging to handle returns efficiently and accurately.

Customer Service

Throughout the fulfillment cycle, businesses need to provide customer support. While physical stores handle this in person, e-commerce support handles inquiries, complaints, and returns, often across multiple digital channels.
Benefit
Consideration
Cost-effectiveness of fulfillment operations
3PLs can offer economies of scale that might be hard to achieve in-house.
Expertise and experience
3PLs bring specialized knowledge and experience in logistics and supply chain management, which can greatly benefit companies without this expertise.
Scalability for all seasons
3PLs allow businesses to scale and adjust their fulfillment operations needs based on demand fluctuations — without significant investment.
Better geographic reach
A 3PL may provide a wider distribution network, enabling faster shipping times to a broader customer base.
Type
The Function of the Warehouse Label

Floor/Location Labels

These labels demarcate different areas or locations within the warehouse, such as aisles, rows, columns, shelves, and bins. Warehouse workers use these labels to navigate and find the right storage location quickly and accurately. Sometimes, you can also scan them to record the movement of goods in and out of these locations. Floor labels are usually durable to withstand traffic and wear.

Rack Labels

Rack labels are attached to storage racks and are used to identify individual locations within the rack where items are stored. These can be freezer-grade labels, magnet-backed, ultra-durable labels, multilevel labels, or color-coded. They allow for precise control over inventory location and facilitate efficient picking. In large warehouses, rack labels often include barcode labels or other scannable codes that can be read by handheld devices or automated systems.

Tote and Bin Labels

Totes and bins are used to group items for storage or transport within the warehouse. Labeling these containers allows for easy tracking of their contents, even if the individual items within are not directly visible. Accurate warehouse labels ensure the correct items are picked for orders, and that products are put away in the correct location after being received or returned.

Station and Dock Labels

In a busy warehouse, there are likely to be various stations where specific tasks are carried out, such as receiving, packing, sorting, or kitting. Similarly, there may be multiple loading docks for inbound and outbound shipments. Labeling these areas helps to direct workers and goods to the right place, improving efficiency and reducing errors. For example, when a truck arrives, it can be directed to the correct dock based on the labels.

Inventory Labels

Inventory labels are used at all stages of the inventory's lifecycle, from receiving to shipping. They usually contain information about the product, such as SKU, description, quantity, lot number, and expiration date. They can also include tracking codes like barcode labels or RFID tags. The format and content of inventory labels may vary based on the form factor of the inventory. For example, a warehouse pallet label might include a summary of all items on the pallet, while an item label would have information about that specific item.
Type
The Function of the Warehouse Label

Floor/Location Labels

These labels demarcate different areas or locations within the warehouse, such as aisles, rows, columns, shelves, and bins. Warehouse workers use these labels to navigate and find the right storage location quickly and accurately. Sometimes, you can also scan them to record the movement of goods in and out of these locations. Floor labels are usually durable to withstand traffic and wear.

Rack Labels

Rack labels are attached to storage racks and are used to identify individual locations within the rack where items are stored. These can be freezer-grade labels, magnet-backed, ultra-durable labels, multilevel labels, or color-coded. They allow for precise control over inventory location and facilitate efficient picking. In large warehouses, rack labels often include barcode labels or other scannable codes that can be read by handheld devices or automated systems.

Tote and Bin Labels

Totes and bins are used to group items for storage or transport within the warehouse. Labeling these containers allows for easy tracking of their contents, even if the individual items within are not directly visible. Accurate warehouse labels ensure the correct items are picked for orders, and that products are put away in the correct location after being received or returned.

Station and Dock Labels

In a busy warehouse, there are likely to be various stations where specific tasks are carried out, such as receiving, packing, sorting, or kitting. Similarly, there may be multiple loading docks for inbound and outbound shipments. Labeling these areas helps to direct workers and goods to the right place, improving efficiency and reducing errors. For example, when a truck arrives, it can be directed to the correct dock based on the labels.

Inventory Labels

Inventory labels are used at all stages of the inventory's lifecycle, from receiving to shipping. They usually contain information about the product, such as SKU, description, quantity, lot number, and expiration date. They can also include tracking codes like barcode labels or RFID tags. The format and content of inventory labels may vary based on the form factor of the inventory. For example, a warehouse pallet label might include a summary of all items on the pallet, while an item label would have information about that specific item.
Area of Improvement
Role of Warehouse Efficiency Improvement
Reduced Costs
By minimizing waste and maximizing resource utilization, warehouse efficiency helps lower operational costs associated with storage, labor, and inventory management
Customer Satisfaction
Faster order fulfillment and fewer errors translate to happier customers, boosting loyalty and repeat business
Inventory Management
Efficient warehousing systems employ technology-driven solutions for real-time tracking and accurate inventory management, reducing errors and preventing stockouts
Increased Productivity
Streamlined processes empower your team to work smarter, not harder, maximizing their output and potential
Competitive Advantage
Warehousing efficiency gives you the edge, allowing you to deliver faster and respond better to customer needs.
Risk Mitigation
Efficient warehousing is better equipped to handle unforeseen disruptions, such as supply chain disruptions or consumer preferences changes, minimizing business continuity risks
Scalability
As businesses expand, efficient warehousing operations provide a scalable foundation, accommodating increased demand and facilitating growth without compromising performance
Warehouse equipment
Contribution to pallet picking efficiency
Forklifts
Warehouse forklifts allow for the fast and safe movement of high-volume, heavy pallets. They allow warehouse pickers to access and reposition pallets stored at various heights and distances.
Pallet jacks
Pallet jacks allow warehouse pickers to pick pallets on a smaller scale. They can access tight spaces where forklifts can’t usually enter.  
Conveyor belts
Conveyor systems transport pallets along a fixed path in the warehouse
Robotic systems
Robotic systems have been gradually decreasing the dependency on manual input for pallet picking. Robots can already use vision systems and advanced algorithms to identify, grasp and pick pallets with speed and precision. 
Wearable Technologies
Smart glasses, wrist-mounted guidance systems, and other wearable technologies are providing warehouse pickers with hands-free access to real-time guided picking insights. Having constant access to this information, be it navigation guidance, inventory data, or pallet location, greatly increases pallet picking accuracy and efficiency.
Automated Guided Vehicles (AGVs)
AGVs can autonomously navigate the warehouse floor using cameras, sensors, or magnetic strips to assist with the pallet picking process. 
Item Number
Description
Quantity
Unit Price
Total Price
TSH-001
Crew Neck T-Shirt (Medium)
200
$5
$1,000.00
TSH-002
Crew Neck T-Shirt (Large)
200
$5
$1,000.00
TSH-003
Crew Neck T-Shirt (Large)
100
$5
$500