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Warehouse Capacity: Definition, Calculation, Importance and 10 Tips to Maximise Warehouse Storage Capacity in 2025

Warehouse Capacity: Definition, Calculation, Importance and 10 Tips to Maximise Warehouse Storage Capacity in 2025

In the eCommerce industry, the biggest assets of an online company are its warehouses, dark stores, fulfillment centers, cold stores or whatever else is used for storing their products. As we know, a virtual marketplace does not require a physical store but it does require a place to store listed items. Every eCommerce seller has a warehouse according to the size and scale of their products and needs to abide by specific requirements such as temperature, size, proximity to transport hubs, etc. The main aspect to be concerned about in a warehouse is the amount of space it has to store products. Needs may be different for each seller but the way to ensure that there is enough space to not only manage inventory or store goods but also track products to prevent stockouts, expiration, tackle high demand , etc. In this article, we will go into detail about what warehouse capacity is, how to calculate it and tips to improve warehouse storage capacity. What is Warehouse Capacity? Warehouse capacity refers to the amount of available space for product storage. Warehouse capacity can assist in understanding the difference between theoretical working capacity and storage capacity. For eCommerce sellers, space is conceivably the most important resource in warehouses and other storage facilities. Businesses can considerably improve the number of products they can keep in the facility by optimizing the utilization of their warehouse space. They can save money on transportation and other expenditures by having more items in storage at once. Additionally, it gives the warehouse KPI's personnel easier access to the goods, enabling them to process orders more quickly and deliver the goods to the consumer sooner. Warehouse managers and business owners should take the time to analyze how much space they have and how well they're utilizing it because space can be scarce in a warehouse setting. [contactus_gynoveda] How to Calculate Warehouse Storage Capacity? The first step in figuring out how to improve your warehouse capacity is to understand its present capacity. Here is a quick tutorial on how to determine a warehouse's capacity expressed in feet: Determine how many square feet your entire warehouse complex is. In this instance, let's assume it is 10,000 square feet. Calculate how much space is being used overall for non-storage uses, including offices, restrooms, break rooms, loading zones, etc. Let's assume that this equals 2,000 square feet. To calculate the usable space in your warehouse, subtract the total square feet of non-storage space from the total square feet of your warehouse. The equation is as follows: Usable Space = Total Square Feet - Non-Storage Space Square Feet Next, figure out how much useful storage space you have, i.e., the maximum stack height or clear height. You must take into account the lowest-hanging overhead object for this, such as lighting fixtures or warehouse racks. Let's assume that this height is 30 feet. To calculate your storage capacity in cubic feet, multiply your maximum stack height by the entire amount of usable space: Maximum Height of Stack in Feet x Usable Space in Square Feet This might offer you a general idea of how to calculate the storage capacity of your warehouse, but keep in mind that you also need to take into account facility-specific elements, such as workspaces for packing and picking. You can optimize space depending on your company's warehousing demands, including the number of units and distinctive SKUs, total equipment and fulfillment space needed to operate a warehouse by knowing how to assess warehouse capacity. Importance of Warehouse Capacity for eCommerce Businesses Mitigates Miscalculations Logistics operations depend heavily on warehouse capacity, which extends beyond just optimizing for inventory storage. Determining how much inventory you can afford to keep on hand to meet demand while also lowering the risk of potential stockouts and backorders requires an understanding of your warehouse capacity. Reduces Storage Costs Having greater warehousing capacity is not necessarily preferable. Your warehousing and carrying costs, such as rent, storage, picking and packing, and inventory management chores, will go up as your warehouse's capacity and square footage increase. Understanding your warehouse’s storage capacity will help you determine how much space you need so that you can remove any excess or unwanted procedures. Speeds Up Order Fulfillment More room also makes it simple to keep more goods than is required, which can result in an accumulation of dead stock. It is from investing in more inventory upfront, where capital is restricted until it is sold. You can also use the room for order fulfillment in addition to storage. If so, you must select how to organize your warehouse for effective workflows that will allow for quick order fulfillment and improved order accuracy. 10 Tips to Increase Warehouse Capacity to Maximise Storage in 2025 There are different ways to concentrate on your warehouse capacity optimization if you are dissatisfied with the amount of available storage space you are using. You can improve your warehouse utilization rates and save time and money by making a few minor adjustments to the design and organization of your space. Here are 10 suggestions you can employ to make the most of the available space and increase the storage capacity of your warehouse: Use Storage Solutions Your warehouse's storage utilization will be directly impacted by the types of storage solutions you deploy there. Select solutions that are appropriate for your space's size, shape and products you are storing in order to achieve maximum storage capacity. For better utilization of your space, you can: Vertically extend your racks Erect a mezzanine over the floor-level shelves Reduce aisle width in the racking area Modify storing methods Add spaces for storing half-pallets Utilize your warehouse management system to facilitate directed storage Utilize unused space Rearrange Aisles and Racks After selecting the best pallets, boxes and racks, it's time to organize how you store them to maximize your storage capacity. For the best fit and organization, group storage units and objects of the same size should be stored together. As long as they are still wide enough for your personnel and machinery to pass through safely and effectively, you can make your aisles a little bit narrower to put a few more rows in. Your storage capacity, cube size and total usage will all rise with a well-organized warehouse. It will also make your employees more productive because they will be able to move around and find things more easily. Increase Height Clearances The existing warehouse storage capacity you have is significantly impacted by the clear height of your building. Even though it could seem challenging to get more vertical space, you can improve your clear height by paying attention to any machinery, infrastructure or other objects that are suspended from the ceiling. You might be able to move, replace or adjust hanging lights, security systems, cameras or other objects to clear a few extra feet of space. To increase your clear height and thus, your possible storage space, consider mounting lights and security systems to the roof or walls rather than the ceiling. Keep Track of Seasonal Inventory Make sure to account for any volatility throughout the off-seasons if your warehouse stocks a lot of seasonal goods, such as holiday decorations, beach gear and winter clothing. Aiming for both an appropriate storage utilization number for the off-season and an optimal storage utilization number for the peak season are ideal strategies for warehouses that handle a considerable amount of seasonal inventory. It just would not make sense for them to maintain the same stock levels in the warehouse throughout the year, nor would it make sense to reorganize the space twice a year to accommodate the variations in inventory. Always Keep Some Extra Space In order to accommodate expansion and the introduction of new products, your warehouse's total storage cube should not be more than one-fourth of the total. If your warehouse capacity is operating at its full extent, it is an indication that it's time to expand your warehouse. You should always leave room in your warehouse for sale or growth since you never know when one of your products may become instantly popular. If that occurs, you will need to start stocking up on that specific item right away to meet demand. Before you face such an issue, being equipped to deal with it is a better alternative. Group Storage Locations Many retailers have different fulfillment centers and warehouses to store the same or similar products. To create more usable space, you can opt to store them in the same location so that it will be more organized and readily accessible if they are required urgently. This also creates more storage space across fulfillment centers so that more products can be stored. Store Excess Inventory in Off-Site Locations Some high-demand or seasonal products need to be ordered in large quantities to prevent stockouts and increased delivery times. However, these units might prevent other goods that also have decent demand levels from being stored in less-convenient locations. By storing excess inventory in off-site locations, warehouse storage capacity increases for more relevant items. Consider Using Dropshipping If your storage facilities and warehouse capacity are overburdened, consider making use of dropshipping so that products can be manufactured and shipped by the vendor directly and never have to be stored by you which creates more space for your other products while also maintaining inventory levels of other products directly through the vendor.  Arrange Inventory Based on Demand Different products have varying levels of demand and this is based on a variety of factors such as season, relevance, price, age and more. It is important to store high-demand items in the most easily accessible way possible to ensure that they get picked and packaged swiftly while storing lower-demand items in less accessible locations. Calculate Your Storage Dimensions You should guess when it comes to your warehouse storage capacity. Do not just have a simple look to estimate how much space you are utilizing for storage capacity. Take the time to calculate and determine the logistics of your total space so that you are aware of how to arrive at an exact number for your warehouse's storage capacity and utilization. Knowing proper figures can help you create the most effective layout for your warehouse. Conclusion: Maximize Your Warehouse Storage Capacity with WareIQ Increasing warehouse storage capacity is of utmost importance to eCommerce sellers, especially for ones that have already started expanding their operations. There are many different ways to optimise your warehouse capacity but one of the quickest and most effective options is to partner with a 3PL fulfillment company. Do you require access to more storage space? If yes, you can entrust WareIQ to handle all of your decentralized fulfillment center locations along with their management requirements. At WareIQ, you not only get access to our nationwide network of fulfillment centers and dark stores but we also work with you to decide how to distribute it most effectively across our logistics network based on product demand and proximity to your customers. By shipping orders to various locations, you can increase the number of customers you serve while lowering shipping costs and shortening transit times. eCommerce sellers are given complete visibility and transparency into their fulfillment operations with our sophisticated, user-friendly interface. You can have insights into factors such as warehousing costs, historical data, inventory management and real-time inventory updates. We also offer an entire range of other eCommerce services such as order fulfillment and online marketplace integration through our custom WMS. Warehouse Capacity Frequently Asked Questions: FAQs

August 22, 2022

What Are eCommerce Operations? A Detailed Guide for Operations Professionals on Functional Aspects & Best Strategies for eCommerce Operations Management in 2025

What Are eCommerce Operations? A Detailed Guide for Operations Professionals on Functional Aspects & Best Strategies for eCommerce Operations Management in 2025

eCommerce Operations are the foundation of any organisation and the function that makes things happen. And a lot is going on in the background regarding eCommerce operations. An eCommerce operations manager must enhance eCommerce processes that directly increase gross margins. Managers can wisely allocate essential resources to deliver the most value to the business by prioritising profit-generating eCommerce operations. According to statistics, Global retail e-commerce sales were estimated to be around 4.9 trillion dollars in 2021. Over the next four years, this amount is predicted to increase by 50%, reaching roughly $7.4 trillion by 2025. eCommerce has contributed to more than 40% of the rise in retail sales in the US alone, and by 2040, experts predict that 95% of all purchases will be conducted online. The operations manager significantly influences the growth of an online brand. To ensure that your operations can fulfil customer expectations and keep expanding, you must maintain a constant watch on the market, your rivals, and the wants of your clients. This article provides a detailed analysis of eCommerce operations and how to enhance eCommerce operations for productivity and growth. What are eCommerce Operations? All components of online goods sales and shipping are referred to as eCommerce operations. Successful online retailers are defined by having a solid eCommerce operations plan. Your ability to address essential eCommerce operations and sales components, such as order logistics and fulfilment, domestic and international shipping, and inventory management, is crucial to developing an efficient eCommerce operations management plan. Making your eCommerce operations strategy as clear and thorough as possible is essential because it enhances the likelihood that purchases will be finished and delivered on time, keeping customers happy and ultimately improving your business. Source Significant Functional Aspects Involved In eCommerce Operations Management Since its start, the eCommerce sector has expanded incredibly quickly to reach its present status, defined by a solid market position. Due to this process, new difficulties have also evolved in the worldwide landscape of eCommerce operations. Merchants must change to remain competitive and gain an edge over their rivals. The problem that most eCommerce merchants now confront is simplifying their business operations seamlessly. Here is a list of business tasks retailers can use to create a successful and efficient eCommerce operational workflow. Order Management Online stores have replaced traditional physical businesses as the norm in eCommerce. As a result, the need for multichannel order management has grown due to this transition. It is getting more challenging to handle and execute your orders when there are hundreds of sales channels available, whether they are marketplaces like Amazon, eBay, or Etsy or sales channels like Shopify, Magento 2.0, or Woo-commerce. Therefore, their most significant chance of remaining competitive is to have the capacity to manage orders across several digital channels. This helps eCommerce businesses both attract new clients and keep their current ones. Product listing, inventory management, order placement and processing, billing, payment collecting, fulfilment, shipment management, and communication are all included in the multichannel order management process. Import all your orders into one location: eCommerce shop owners with a fully integrated order management system can monitor and manage their orders from a single platform. As a result, they can stop logging into different portals to check on the status of their orders. Address verification: An automated address verification method is necessary to limit the number of failed deliveries, accounting for up to 10% of eCommerce package deliveries. Printing shipping labels and invoices in bulk: For anyone selling goods online, batch processing and mass printing shipping labels and invoices are essential. Thermographic printers make these processes simpler. [contactus_lilgoodness] Inventory Management A robust platform and successful inventory management system like Inventory LogIQ can help an eCommerce firm reach its highest potential. The two most essential factors in an eCommerce business are time and money. Companies can save both by using a centralised inventory management procedure. Furthermore, it provides companies with Accurate forecasting: An eCommerce business might profit from monitoring customer wants during a specific season and concentrating on marketing campaigns. Product Evaluation: Separating the products in high demand from those that aren't is just as important as anticipating. Long-term inventory storage of the latter can be dangerous for an eCommerce store's ability to sell. As a result, businesses can offer tempting discounts when buying such a product. Relationship between an eCommerce firm and its suppliers: A successful relationship between an eCommerce business and its suppliers is crucial. This guarantees the timely delivery of goods. Additionally, it is a good idea to have fallback plans. As a result, if the primary suppliers cannot ensure on-time delivery for some reason, the secondary suppliers can do it quickly, maintaining the positive perception of your brand among your target market. The ideal contingency plan should provide effective inventory management and serve as a conduit between eCommerce stores and their customers without jeopardising the interests of either. Including this information in the terms and conditions not only allays client concerns but also facilitates future business transactions by saving time, money, and hassle. Warehouse Management Warehouse management includes monitoring all aspects of eCommerce operations, from staffing to equipment and inventory management. Receiving, storing, and tracking inventory are only a few of the procedures involved in warehouse management. Other activities include keeping an eye on the flow of finished items into and out of the warehouse and managing their effectiveness. The flow of inventory and other activity across a warehouse (i.e., what is being received, stowed away, fulfilled, and sent and by whom) is frequently tracked using a warehouse management system (WMS). With a WMS, manual processes are eliminated, time is saved, and a more accurate picture of what is happening inside a facility is provided without needing ongoing warehouse audits. In addition, operations managers can track their success and find areas for improvement using the data collected from a WMS, which promotes supply chain optimization. Fulfilment and Shipping Logistics All these features are necessary for your system to fulfil your requests successfully. Serviceable Zip code management based on prepaid orders and cash-on-delivery Evaluating shipping costs across various carriers and the services they offer Real-time tracking number and allocation Expecting to complete this manually may cause delays and mistakes. Additionally, clients demand error-free communication from eCommerce businesses in this digital age. Further, the success of an eCommerce business determines its reputation. Choosing a Product, Packing it, and Shipping It Successfully processing customer orders is essential to the success of an eCommerce firm. This must be carried out without fail. An exemplary implementation creates a win-win scenario for an eCommerce company and its clients. While the latter can reduce the possibility of product returns, the former can prevent the potential for mistakes in monitoring its inventory inventories, and using equipment like a barcode scanner to automate order picking and packing up can be beneficial. Order Shipping, Schedule Pickups, Tracking & Delivery Ensuring prompt item delivery is one of the critical components of order fulfillment in eCommerce operations. It aids businesses in creating a favourable reputation and long-term customer retention. In addition, utilizing the advantages of shipping management software can help the company grow. Fulfilment automation has emerged as one of the current trends, with eCommerce businesses becoming increasingly reliant on them. Therefore, it makes a lot of sense for eCommerce enterprises to use software and systems that do away with the laborious manual processes and facilitate the efficient completion of this activity. Returns Management Owners of physical stores encourage a "no return or no exchange" policy regarding purchases made there. They can avoid the inconveniences of product returns as a result. However, this is not true with online eCommerce retailers. Customers have the option to cancel their orders while they are in transit, as well as return things after delivery with eCommerce businesses. The former might occur for several causes, ranging from unsatisfied customers to the delivery of incorrect goods. Therefore, having a well-planned and recorded return management policy is necessary for eCommerce stores. To ensure that customers know what they can return and how it is ideal for making this remark under terms and conditions. Returning an ordered or delivered item must also be made clear in advance. One of the best methods for putting customers and business owners at ease is this. As a result, it leaves clients with a favourable impression of an eCommerce store. Commercial Accounting Keeping track of your brand's financial activities and ensuring your books are in order are crucial components of your eCommerce operations. This includes balance sheets and inventory write-offs. Inventory is the most critical (and frequently valuable) asset for eCommerce enterprises. Thus any anomalies in inventory counts can affect your bottom line. You may gain insights into your spending and earnings with accurate eCommerce book-keeping, making it possible for you to be ready for tax season. 6 Best Practices To Simplify and Streamline Your eCommerce Operations in 2025 With today's technology, we have many eCommerce automation choices to choose from to meet our business needs. The idea is very straightforward—using software to turn manual processes into automated workflows. Numerous tasks can be completed with technology without the involvement of humans. Examples include sending emails to many customers, creating support cases, and completing orders. eCommerce automation saves not only time but also money. Additionally, it means that eventually, the company team will have more time to concentrate on innovation, client satisfaction, and creativity. Let's look at six ways technology could make an eCommerce business function more efficiently. Multi-Channel Automated Centralized Inventory Management eCommerce Brands can optimise their supply chain and stop any losses during stock-out situations by using a cloud-based omnichannel inventory management system. Businesses can display their products on many eCommerce platforms and handle orders using a single dashboard that provides real-time access to stock movement with the help of an IMS. Eliminating the manual component from inventory management saves additional overhead costs that may be spent to grow the firm rather than risking human error. The following are the main benefits that an IMS offers: Reduce the amount of staff needed for daily operations Reduce overstocking and understocking Prevent misshipments Hasten order fulfillment Accurately estimate and plan inventory Detailed inventory and sales reports Automated Accounting With Least Effort and Sales Identification A small sales team is one of the main advantages of a digital business. Automated processes and evaluation tools like a CRM can improve operations even with a small sales crew. For instance, gathering contact details, planning calls, and allocating follow-ups may all be done quickly and openly when a new lead is added to the system. Additionally, it prevents situations where several people are pursuing the same information, which is almost certainly a dead end. The sales staff can also record call details and outcomes, which could be helpful for follow-ups in the future. Some of the most well-known CRMs are Zoho, Hubspot, and Salesforce. Sales and accounting should always work together since book-keeping is never fun. There are several ways to keep track of accounts on your own, but you can pick one that integrates effectively with your inventory management system. Read more about eCommerce accounting software. Building Brand Loyalty With An AI-enabled Customer Service  Consumer service plays a crucial role in building brand recognition and customer loyalty. There are several options for handling customers and automating the time-consuming steps in the process. One of the most popular ways to handle this topic correctly continues to be chatbots. By responding to a set of predetermined circumstances, triggers, and events, chatbots help automate client interactions. As a result, companies are quickly using chatbots for their customer-facing products. According to a Facebook poll, more than half of customers believe they are more likely to shop with a firm that offers live chat. Customers anticipate being able to quickly and easily find the information they require. Chatbots are merely a tool to achieve that goal. Additionally, several tools can quickly and cheaply integrate chatbots into social media accounts and eCommerce websites. Since they have been around for a while, chatbots have established themselves as a crucial component of any company's customer care strategy. Innovative and Seamless Payment Methods Powered by Technology Customers desire personalization and frictionless eCommerce experiences. Global consumers are anticipated to make 1.1 trillion non-cash payments by 2024 as they buy goods and services using a combination of web, mobile, and connected devices, according to Business Insider. The experience is smooth when individuals can make purchases online fast, effortlessly, and safely. Passive authentication techniques like face and touch ID are becoming more and more common as technology advances since they may be used to complete transactions since the user's credentials are already stored in their wallet. This holds for applications such as GooglePay, AmazonPay, PayPal, PhonePe, Paytm, and others. Giving clients the option to use digital payment methods improves the customer experience because it is easier and takes less time. Nearly all eCommerce businesses provide a choice of digital payment alternatives nowadays to speed up checkouts and improve consumer convenience. Switch to An Omnichannel Customer Experience It's become less important to test a product before buying it. The ease of a single-click purchase on eCommerce sites, brand recognition, social media presence, and general lifestyle affinity are essential factors in deciding to buy. Social media, online markets, and web stores are part of omnichannel retailing. Making sure that marketing strategies enable customers to convert across any sales channel is the aim of multichannel selling. Your company may offer a smooth customer experience if you have efficient automation technology at your disposal and an omnichannel strategy in place. One of the best instances of how organisations can utilise technology using an omnichannel strategy is Walmart's "order-by-text and chat services." Walmart offered a service that guaranteed same-day delivery and allowed users to place orders by text message alone. Although the service is no longer in use, it opened the path for other eCommerce firms to provide their clients with something remarkable. You can use various tools and methods on your online store to collect data, monitor conversions, and target messaging when executing an omnichannel marketing plan. Make Social Commerce A Part Of Your eCommerce Strategy Many firms use social media platforms for advertising. The accessibility, ease and reach that come with social media aids consumers in purchasing. 2018 saw the launch of Facebook Marketplace, which aims to take on Google Shopping, Easy, and Amazon. In addition, Instagram started using product tags in 2016 to make it simpler for consumers to identify the goods and prices they see in advertisements, and in 2017 Shopify and BigCommerce were integrated, directing shoppers to a website where they could make an immediate purchase. Select brands were given buyable pins on Pinterest, which resembles Instagram in functionality, in 2015, and the number of brands increased in 2016. In addition, to make it simpler to make purchases from several merchants at once, a shopping cart was also developed. Conclusion In conclusion, operating in the eCommerce industry requires balancing many competitors with matching client needs and expectations. The technology at our disposal now has the potential to automate repetitive work and expedite processes that call for more attention to detail. You can start using parts of it immediately and take your time selecting others, like an IMS or a chatbot, to boost your company's overall productivity and operational effectiveness. How WareIQ as a 3PL Fulfillment Partner Helps in Your eCommerce Operations Management? WareIQ, as a tech-enabled fulfillment partner, uses a fulfillment network that returns information to our clients so they can monitor inventory levels and orders as they are chosen, packed, shipped and delivered in real-time. Orders are automatically delivered to our warehouses once your store is connected. The product is chosen, packed, and dispatched (and tracking info is pushed back to your store and shared with your customers). WareIQ's fulfilment services assist you in time and cost optimization as well as the utilisation of the delivery process to surpass customer expectations and take control of a more significant portion of the client relationship. With the aid of WareIQ's fulfilment facilities, you can strategically distribute your inventory among our locations to deliver your products more quickly and affordably. By keeping inventory close to your target market, you can cut down on the shipping zones and expenses involved in sending orders to distant locations. With WareIQ's 2-Day Express shipping model, you can provide 2-day shipping across the country whether you ship from one fulfilment centre location or several. WareIQ delivers data and analytics to assist you with everything from year-end reporting to better supply chain decision-making. We do this to give you visibility into our operations and performance and to hold ourselves accountable. For example, we provide information on the fulfilment centres you should stock, the number of days your inventory will last before it runs out, the effect of sales promotions on stock levels, the average cart value, shipping costs, and transit times for each shipping option, your fulfilment costs per order, your storage costs per unit, and much more. Ecommerce Operations FAQs: Frequently Asked Questions

August 21, 2022
What is Distributed Warehousing and How is it Beneficial for eCommerce Sellers in 2025?

What is Distributed Warehousing and How is it Beneficial for eCommerce Sellers in 2025?

It is difficult to recall a time when online orders would only be delivered after multiple weeks. Today, multiple companies and selling platforms claim to deliver their products on the same day and some even in hours. Premium users are usually given priority in this regard. On the technical front, orders are placed, immediate confirmation messages/emails are sent automatically, and the in-house staff gets notified about the order and packs the product instantly so the package can be ready for delivery within an hour but after this, the product has to get delivered to the customer. It is can prove to be a challenging task to run. But there are sellers who, with the help of distributed warehousing, are providing same-day delivery and next-day delivery. In this blog, we will discuss distributed warehousing in detail, how it is helpful and how you can use it to lower your operating cost. What is Distributed Warehousing? Distributed warehousing is a novel kind of warehousing in which a company delivers and distributes products from a number of smaller, strategically-placed warehouses in major cities across the nation. The main objective of distributed warehousing is to take advantage of providing quick order fulfillment by storing inventory closer to customers. Additionally, this business model gives owners access to inventory and on-site requirements from virtually anywhere. Storage, fulfillment, cross-docking, retail distribution, on-site co-working, and other tasks are carried out in these warehouses. Distribution warehouses are connected to particular distributors for particular items. For example, a laptop manufacturer would think about working with a distributor who represents computers and their peripherals. The distributor would keep those computers in its warehouse and ship them to the stores that would eventually sell them. The distributor may provide training or support for those laptops in addition to storing and distributing the goods. But doing so raises the manufacturer's costs and lowers their profit margin. Unlike laptop manufacturers, a clothing manufacturer doesn't need the same kind of support and pays less compared to a specialist distribution warehouse. Because of this, a key factor in deciding what kind of warehouse to use is the product type. [contactus_uth] 3 Types of Warehousing Models for Online Business Single In-House Warehouse Most new eCommerce companies typically rent one or two large, strategically situated warehouses and run their business independently. Although this conventional model has short-term viability, it is neither adaptable nor scalable. Finding and establishing new storage facilities will take time and work each time you try to increase your footprint. The strategy also attracts large fixed operational costs and calls for a significant amount of cash to invest in properties and long-term leases. Additionally, because the warehouses are centralized, each shipment will have to travel a significant distance, delaying the completion of orders. On the other hand, you do have total control over warehouse operations with this arrangement. A big internal workforce will be needed to manage the warehousing procedures, but it helps to assure quality control. That's where warehousing companies come into the picture, read more. Decentralized Warehouses at Multiple Locations As the name suggests, decentralized distributed warehousing means several warehouses are placed at multiple strategically chosen locations for easy operations, low costs, and proximity to transport hubs and areas of high demand. Read our blog on decentralized inventory to know how it helps eCommerce businesses in 2024. It will be easier to understand the benefits of distributed warehousing if you compare the pros and cons of decentralized warehouses with the conventional warehousing technique of centralized storage systems. Here are a few pros and cons of Decentralized warehouses: Pros Lowers delivery costs Reduces delivery time Meets the high expectations of buyers Has higher successful delivery rates Is easy and cost-effective to return or exchange goods Eases distribution at batch level Cons  Requires a big team to operate multiple warehouses Needs huge investment and operational cost Has reduced efficiency without technology It can be complicated to operate Needs highly trained personnel Outsourcing Storage to a 3PL Growing companies should outsource their warehousing needs to a tech-enabled 3PL service provider. This approach delivers the advantages of distributed warehousing without the majority of its problems, making it the greatest method for streamlining fulfillment in general. While you do have to pay for shipping, fulfillment, and storage costs, you gain access to a larger network of sites without having to make a financial commitment to renting or purchasing those locations. Additionally, 3PLs provide value-added services including digital warehousing tools that automate SKU distribution and management as well as order processing and fulfillment. Distributed Warehousing Vs Public Warehousing The public warehouse option usually has fewer amenities than distributed warehousing but it is lower in cost. Some public warehouses may not include features like temperature control, pick and pack or a state-of-the-art inventory management system while others will provide one or more of these auxiliary services. Requirements for public warehouses include flexibility, affordability, and short-term contracts that might not be possible with distributed warehousing. The best storage facility for your goods should be chosen after considering a number of aspects, such as price, time commitment, business model, product kind, and inbound and outgoing shipping requirements. Let us look at the differences in detail: [table id=47 /] Why is eCommerce Moving Towards Distributed Warehousing in 2025? Benefits of Distributed Warehousing in eCommerce There are several benefits of distributed warehousing such as easy deliveries, high rates of successful deliveries, easy returns, etc. but the below points are the most important ones: Cost-Effective Customers care about the delivery time but they care even more about delivery costs. In a study, it is found that a staggering 80% of buyers chose free shipping over speedy shipping when given the option. In most circumstances, the distance traveled and the cost of shipping is directly proportional where the more the distance traveled, the more expensive the shipping will be. Distributed warehousing allows you to move inventory closer to customers, reducing average shipment distance and consequently, average shipping expenses. Time-Saving Two-thirds of buyers expect 2-day delivery and again, more than 80% of consumers are more likely to make a purchase when 2-day delivery is an option. As a result, providing quick shipment is crucial to retaining current clients as well as attracting new ones. Distributed warehousing, unlike shipping from a single warehouse, promotes speedier shipping by keeping goods in fulfillment facilities that are practically closer to common order destinations. As a result, delivery times are shortened because the average distance that orders must travel is decreased. Businesses can offer 2-day delivery in this way without having to invest in pricey, accelerated solutions like air shipment. Meets Customers Expectations Customers these days look for an easy and convenient delivery experience and distributed warehousing allows a seller to meet these expectations. In cases of returns or exchanges, it is a win-win situation for both parties as the distance from the location to the warehouse is reduced. Oftentimes, buyers require their orders to be delivered as soon as possible and this is made possible due to distributed warehousing. How WareIQ is the Best Option for Distributed Warehousing for eCommerce Sellers in India? WareIQ's distribution and storage services can handle all aspects of inventory distribution if you are ready to expand your geographic reach efficiently and affordably. Along with our expanding fulfilment distribution network that consists of multiple fulfilment centres and dark stores across the country, WareIQ uses its warehouse management system (WMS) and logistical know-how to help you scale your business more effectively and with less effort. As a 3PL distribution partner, WareIQ provides optimized recommendations for the warehouse where your products should be kept to increase supply chain effectiveness. The order is instantly forwarded to the nearest warehouse to the customer as soon as it is placed. Order processing, fulfilment and delivery are then handled by WareIQ, freeing up your team to concentrate on the more important objectives of your business. Through a single dashboard, you can even keep track of inventory levels in real-time across more than 12 eCommerce marketplaces and it offers complete visibility into warehousing costs, transit times, and other statistics. For brands that require assistance managing inventory in real-time, decrease picking, packaging, and shipping errors, and want to scale with ease, WareIQ has a best-in-class warehouse management system (WMS). [signup] Distributed Warehousing: FAQs

August 17, 2022
25 Warehouse Management KPIs and Metrics to Monitor for Assessing and Enhancing Warehouse Performance in 2025 and Various Ways to Track Warehouse KPIs

25 Warehouse Management KPIs and Metrics to Monitor for Assessing and Enhancing Warehouse Performance in 2025 and Various Ways to Track Warehouse KPIs

Proper warehouse management is the first step in quick fulfillment since it affects how quickly you can acquire, track, and store goods to fulfill client orders. However, how can you tell if a warehouse is operating efficiently? Warehouse management KPIs and metrics should be closely monitored by tracking warehouse and supply chain KPIs for receipt, inventory control, and fulfillment. Optimizing your warehouse and making changes will be challenging due to failing to monitor critical KPIs. This post will let you learn what and how to monitor warehouse KPIs. What Exactly do Warehouse Key Performance Indicators (KPIs) Signify? Warehouse KPIs are performance metrics that aid managers and executives in determining how well a team, project, or even an entire business performs. It is not the aim; instead, it is a means of measuring objectives as part of a larger plan or as a tool to bring everyone together behind an exact target. KPIs may concentrate on more general operations or be more targeted at specific measures or procedures. By analyzing the effectiveness of an eCommerce warehouse, warehouse KPIs simplify monitoring. They also help to identify possible issues, manage risks, and find ways to improve operations. Since many factors are involved in warehouse management, including inventory management and fulfillment, warehouse KPIs are frequently divided into many categories. Examples of Warehouse KPIs include-  Inventory KPIs - Inventory needs to be maintained in a delicate balance; too much or too little might result in too much money being linked to unsold inventory or a stockout risk. KPIs for inventory tracking might aid in maintaining the balance. Receiving KPIs is the first stage in the warehousing process since it ensures that companies get what they paid for and that it comes when required. However, if precautions are not taken, a lot can go wrong. Put-Away KPIs- These metrics measure how quickly and where items can be stored in a warehouse capacity when they are received. This is crucial for perishable goods with shorter shelf life in particular. Order Management & Processing KPIs- When an order is placed, it is up to the picking and processing teams to choose the appropriate product quickly. Picking and processing KPIs may be monitored to identify possible obstacles in this process. Workforce and Safety KPIs- Measuring employee satisfaction, injury rates, types, overtime hours, the proportion of part-time workers in the workforce, yearly turnover rates, or labour expenses. Also, by keeping an eye on safety, firms may lessen the number of workplace accidents before they occur. [contactus_gynoveda] What Makes Monitoring Warehouse KPIs Important? Managing an effective supply chain requires careful attention to measuring warehouse KPIs. Additionally, it offers tips on what to look for while performing a warehouse audit. The significance of tracking warehouse KPIs are discussed down below- Warehouse KPIs Increase Its Productivity Monitoring warehouse KPIs enhances warehouse productivity. You can pinpoint areas to concentrate on, improve, and invest in by monitoring performance. Various elements influence a warehouse's efficiency; therefore, it's crucial to identify any weak points so you can enhance and optimize them. For instance, several developments in digital warehousing have made it possible to automate repetitive processes, which removes the need for time-consuming manual labour and saves thousands of man-hours. However, it's possible that your existing warehouse arrangement, rather than inefficiencies in how your team works, is the real culprit. The technology could assist you in improving your storage and simplifying orders if you're monitoring the correct warehouse KPIs. Overall, monitoring warehouse KPIs may help you figure out how to become more efficient by using technology or improving internal procedures. Retailers May Save Money by Monitoring Warehouse KPIs Along with increasing efficiency, addressing the parts of your warehouse operations that require improvement can reduce logistics expenses. Most e-commerce enterprises prioritize cost-cutting, but it's never been more crucial. Due to the increased demand for warehouse development and construction, logistics warehouse tenants have already seen a 10% rate increase in 2021 alone. As a result, the price of renting a warehouse alone might significantly reduce business margins. You can benefit from taking the time to figure out how to improve processes and efficiency; even better, determine how much warehouse space you require. This can also entail investigating ways to optimize inventory levels to satisfy demand while reducing holding expenses. Increases Client Satisfaction How your e-commerce warehouse runs influences customer happiness, enhancing workflows for accurate delivery or identifying methods to speed up the returns management process. Because of this, it's crucial to monitor specific e-commerce KPIs, including order accuracy and shipment timeframes, that show how your warehouse operation affects the consumer experience. To set up your warehouse or warehouses to satisfy client expectations, warehouse location is crucial. You could discover, for instance, that shifting your warehouse to a more central and accessible place to a more significant number of your clients will permit quicker and cheaper shipment. Improve Workplace Safety and Happiness. Your warehouse will run more efficiently if your crew feels engaged and protected. The US Bureau of Labor Statistics reports that in 2019, there were 4.4 injuries for every 100 full-time employees working in transportation and warehousing. Unfortunately, the incidence of fatalities and injuries in warehouses is going up. While efficiency is crucial, a dangerous workplace will make your team move more slowly. By looking at the safety KPIs, you can tell whether your internal procedures provide a safe atmosphere for your employees, increasing productivity. For instance, it's safe and simpler to manoeuvre a forklift if garbage or other items aren't left in the middle of the floor. Additionally, setting up warehouse workstations with a one-way workflow can be effective since it promotes safety and reduces congestion. 25 Warehouse KPIs and Management Metrics To Monitor For Assessing and Enhancing Performance  You must understand how important it is to gauge your warehouse's success as a manager. Measurement is the step that connects all of your other processes and enables you to monitor performance trends, assess how effectively you are working, identify possible issues, control risks, and do a lot more. You may assess your company's financial accounts, conduct performance evaluations, and utilize business metrics to analyze warehouse KPIs, among other methods. Nevertheless, one of the most often used approaches is to create warehouse KPIs (Key Performance Indicators), which assess how successfully your procedures are achieving their aims and objectives—sort of like a report card for your warehouse. Warehouse KPIs examine a particular operation or process and provide a result that illustrates how well that process performs by contrasting it with previous figures and standards. Even though every warehouse operates differently, most warehouse management KPIs may be used in most warehouses to achieve your company objectives. However, you might not need to employ every KPI. Instead, you might narrow your selection to those that you believe are most pertinent to your present objectives. How then can you locate the warehouse KPIs that you genuinely require? The following frequently used warehouse KPIs will be covered in this post, along with their benefits to you- INVENTORY KPIs The stock of goods you have on hand and kept in your warehouse is the focus of inventory KPIs. They are ideal if you want to track how your inventory is moving. Inventory accuracy, shrinkage, carrying cost of inventory, inventory turnover, and inventory to sales ratio are standard inventory KPIs. 1. Inventory Precision Goods accuracy is the agreement between the monitored quantity of inventory and the quantity present in a warehouse. The warehouse stock amount may not always match the amount usually tracked automatically by a warehouse or inventory management system. This may result from theft, damage, errors in judgement, shortages on the provider's part, etc. By dividing the stock monitored by the system by the stock present in the warehouse, the inventory accuracy KPI will demonstrate whether there is a discrepancy between the two figures.  Formula For Inventory Accuracy- Physically present inventory / System-tracked inventory Related Article: Stock Discrepancy 2. Shrinkage One type of inaccuracy in your inventory is shrinkage. This KPI will show you the value of inventory missing from your warehouse due to those circumstances. It is defined as excess inventory documented in accounting but no longer physically available owing to variables like theft, damage, or errors in computation. Use the formula for calculating shrinkage value- (Cost of recorded inventory - Cost of physically present inventory) / Cost of recorded inventory. 3. Inventory Carrying Cost The overall cost incurred by a company to own, store, and maintain inventory is known as the carrying cost of the stock. It shows the time your company can keep its goods in storage before it starts to lose money, and you have to find another way to deal with slow-moving inventory and dead stock. You may compute your carrying costs by dividing your overall expenses by the typical cost of your merchandise. Formula- Overall inventory expenses / total carrying costs 4. Inventory Turnover Inventory turnover measures how frequently your stock is sold. More robust sales are indicated by higher values, whereas lower values characterize poorer sales. Two methods may be used to determine inventory turnover: dividing the sales volume by the average inventory or dividing the cost of products sold by the average inventory.  To determine your inventory turnover ratio, use the formula-  The number of sales / the typical inventory or Product cost / Average Inventory 5. Ratio of Inventory to Sales The inventory to sales KPI provides you with the proportion of sales to the remaining list at the end of the month. Anyone in charge of a warehouse will find this value to be very helpful because it: You may anticipate future cash flow problems before they arise by demonstrating when increasing inventory levels and declining sales occur together. This ratio informs you how many things you've sold and how many are still in your warehouse at the end of the month. In addition, this might assist you in figuring out how much stock you need to buy to maintain your sales without experiencing any backorders comfortably. By dividing your leftover inventory at the end of the month by the sales you generated during that same month, you can establish your inventory to sales ratio. Formula- End of Month Inventory Balance / Sales for the month RECEIVING KPIs Receiving is the process through which a warehouse takes delivery of inventory, which it must subsequently process, sort, and ultimately store. The efficiency of the operations at this step is gauged using receiving KPIs such as receiving efficiency, cost of receiving per line and receiving cycle time. 6. Effective Receiving Receiving efficiency measures how productively your staff are working in your warehouse's receiving section. This will assist you in determining whether to introduce new training sessions or improved procedures. Formula- Volume of merchandise received / Hours worked by personnel. 7. Receiving Charges Per Line The overall cost for receiving a line of merchandise your suppliers have sent to your warehouse is the cost of receiving per line. This also covers the operations that occur upon receipts, such as handling and item accounting. With time, this cost should decrease due to more productive work. The total receiving expense is divided by the whole number of items in each receiving line. 8. Time For a Receiving Cycle Receiving cycle time is a measurement of the typical amount of time needed to handle incoming stock, which includes accounting for it, categorizing it, and storing it. Formula- Total amount of time spent sorting received inventory / Total quantity of things received Put-Away KPIs- Putaway is the process of storing a delivery of goods in your warehouse, typically in the most practical and acceptable area. You may gauge how well these procedures are working by using putaway KPIs like accuracy rate, cost per line, and cycle time. 9. Precision Rate Your accuracy rating determines the percentage of things appropriately arranged the first time. A rating of 1 denotes the absence of any faults or blunders. This rate is determined by dividing the amount of inventory that has been properly stored by the entire amount of inventory that has been stored. Formula- Total inventory put away / Correctly put away inventory. 10. Putaway Price For Each Line This KPI relates to the price associated with storing a whole line of goods. This indication can assist you in cutting costs related to your overall putaway procedures. You may figure it out by dividing the total putaway expense by the number of line items. Formula- Total line items / Total putaway costs 11. Putaway Cycle Time The average time needed to store one item from your inventory is the putaway cycle time. Better warehouse efficiency comes from shorter putaway cycle times. Rearranging things in your warehouse and raising worker productivity can reduce this time. Order Management & Processing KPIs- The operations between when your company receives a client order and when your customer receives their order are collectively referred to as order management. These include receiving the order, choosing the right items, selecting the proper packaging, sending the products to the appropriate delivery address, and managing post-sales procedures like returns and reimbursements. As a result, order management KPIs evaluate how well each process performs. 12. Accurate Product Selection To increase the overall warehouse efficiency of your order management procedures, this KPI shows you how correctly things are being chosen from your warehouse for client orders. Your picking accuracy should be as near to 1, which indicates no errors, as feasible. The formula for picking accuracy- (Total Number of orders - returned incorrect items) / Total Number of orders 13. Total Time for The Order Cycle Total order cycle time is the time it typically takes from when a client makes an order until it is dispatched. This comprises all intermediate steps, such as receiving the order, choosing the required products, packaging them, and preparing them for shipping. Therefore, increase your chances of keeping your consumers by shortening this period. 14. Order Lead Time Order lead time is the typical time it takes for a client to receive their order after they have placed it. Your order cycle time plus shipment time is essentially the order lead time. Similar to total order cycle time, shorter order lead times are preferable for your company. 15. Rate of Backorders Backorder rates relate how many backorders you've placed to how many orders you've placed overall. Therefore, if your backorder rate is significant, you should improve your forecasting, planning, and inventory tracking. Formula- Overall backorders / Overall orders 16. Accuracy of the fulfilment Rate Out of the total number of client orders received, this KPI determines the number of orders that have been entirely completed. This includes accurately filled orders, shipped on schedule, and containing the appropriate goods. You should review and update your order management procedure if this rate is low. Formula- Total orders received / Orders fulfilled without problems 17. Rate of Timely Shipping You may use this indicator to determine how effective your shipping procedures are. To keep customers happy, a high on-time shipment rate must be maintained. Formula- Total Number of orders shipped / number of orders dispatched on time or early. 18. Order Cost This KPI reveals the expenses associated with completing a client order from when it is placed until it reaches the consumer. By dividing the amount spent on order fulfilment by the total number of client orders you've received, you may calculate the cost per order. Formula- Total cost of orders filled / Total cost of fulfilment 19. Returns Percentage The rate of returns lets you know what proportion of consumers have returned their purchases due to things you could have prevented (such as broken goods, the wrong item being provided, or late delivery) or things you had no control over (such as fraud or problems with the product after delivery). Divide the number of products returned by the total number of items sold to obtain this rate, which you can then convert to a percentage. Formula- (Items Sold / Items Returned)*100 Workforce and Safety KPIs- Massive equipment is typically utilized in the operations of large warehouses. Even while equipments are helpful, there are hazards involved. To aid in their future prevention, monitoring warehouse KPIs connected to warehouse accidents is essential. 20. Annual Accidents This KPI measures the number of significant mishaps that cost people time and money in a given year. Ideally, the number should be zero, but even if it is not, it can still help determine the scope of the issue. 21. Time Since Last Accident- Despite the desire to avoid accidents, they occasionally occur for no apparent reason. But ideally, accidents happen seldom and after long gaps. 22. Accident Rate Despite the physical demands of warehouse work, skilled management may lower injury rates and improve warehouse safety. Examples of what not to do include Amazon fulfilment centres, notorious for imposing strict quotas and pressuring workers to work harder. It should be no surprise that Amazon has an injury rate 80% higher than the industry standard. 23. Employee Retention One important KPI for warehouses is turnover. Employees with more experience will be better able to handle issues as they develop and offer better fulfilling services. One of the critical reasons for providing such high-quality satisfaction is the knowledgeable team. One of the primary factors in employee retention is making warehouses enjoyable places to work. 24. Time Lost as a Result of Injuries- Time lost due to injuries: A company's first concern should always be employee safety. Even though it's not common knowledge that accidents are quantified in terms of time, keeping track of time missed due to injuries sheds more light on the influence of injuries on workplace productivity, employee happiness, and total expenses. 25. Total Recordable Incident Rate-  TRIR is the ratio of work-related accidents per 100 full-time employees over a year. This warehouse management statistic is used to evaluate a company's performance in terms of safety and to keep an eye on high-risk sectors. How Do You Track Warehouse Key Performance Indicators? It might be difficult to handle other aspects of your organization, such as product development, marketing, and customer support while keeping track of all these warehouse KPIs. But, again, automation and technology have a role in this. Due to the reduction in time, effort, and mistakes brought on by manual, variable operations, warehouse automation technology is a crucial component of supply chain optimization. Additionally, data is automatically collected and aggregated using warehouse technology, which makes it simple to monitor performance and make adjustments as necessary. However, automation and technology for warehouses may be expensive expenditures (on top of the high cost of leasing a warehouse or purchasing land). Tech-enabled Without having to manage your warehouse or spend money on expensive fulfilment systems, 3PLs provide the fulfilment infrastructure, technology, knowledge, and customer service required to build a successful online business. Warehouse Management System to Track Warehouse KPIs You need the appropriate technology in place to monitor and enhance warehouse KPIs. Brands with their warehouses who want assistance managing inventory in real-time, lowering picking, packaging, and shipping mistakes, and growing quickly have the finest possible warehouse management system (WMS). While retailers and brands may also use fulfillment services to enhance international shipping, save costs, and expedite delivery. 7 Best Practices While Monitoring Warehouse Management KPIs and Metrics in 2025 1- Concentrate On a Small Number of KPIs Choosing those that are vital to you or your company is more significant than selecting a list that could be useful to someone else. You may base your KPIs, for instance, on a certain section of your production or warehousing. Instead, monitor more high-level KPIs to assist you in identifying any flaws or areas of your operations that might use some improvement. Concentrating on a small number of critical warehouse KPIs in 2025 will give you more value and be better able to take action to increase warehouse efficiency. 2- Set Goals for Each KPI and Be Specific About the Expected Result Find out why you are measuring them and what your goals are. KPIs are tactical. You should concentrate on what is necessary and quantifiable. For instance, are you carrying out this exercise to save costs, make the environment safer, or shorten the lead time for production? Getting in touch with coworkers or employees might assist you in choosing what to focus on. Do you need to confirm that your intuition is correct because you are worried about something? Or perhaps you want to calculate the ROI of new equipment you just bought? Whatever the motivation, keep track of what is pertinent to you. 3. Specify What Success Entails Define success for each KPI by setting your own goals or benchmarking your warehouse against industry best practices. Ask your peers or other attendees at an industry event what they measure in their warehouse the next time you are chatting with them. Be clear when describing your expected results and understand that a warehouse KPIs is an indicator rather than a goal. 4- List Your Warehouse KPIs and Choose Your Measurement Method Prepare your KPI dashboard for your warehouse and decide how you will monitor the intended result. For each, a single, brief statement will do. Due to the range of tools being utilized, the data extraction process may differ from company to firm, and what you have available will always impact how you measure. For instance, if you use a warehouse management system (WMS), specific data can already be available or built into your programme. You will have more control over the precise metrics you want to measure if you employ a manual system, but data entry will take more time on the warehouse floor. Automated technologies ought to make tracking your KPIs and gathering data simpler. For instance, automating inventory management will allow you to have a more accurate supply on hand. 5. Set a Time Limit You'll have a sharper perspective of your business if your objectives and warehouse KPIs are time-bound and have deadlines. Tracking your progress along the way, though, can help you determine how successful you were in creating the KPIs in the first place. So keep a close eye on your warehouse KPIs dashboard data in relation to your goals and make any required adjustments. 6. Choose How You Will Monitor Your KPIs  You might require assistance or struggle to get the data you need to create your indicators. For appropriate tracking in a warehouse operation, data acquisition is crucial. Utilizing technology in a warehouse will provide the essential information you require. A warehouse management system (WMS) delivers accurate information. It gives limitless reporting options for data collection and automation, including barcodes and scanning, voice technologies, mobile devices and computers, and radio frequency identification (RFID). An ERP is also regarded as serving as a hub for data. 7. Reporting and Analysis  Create stunning visualizations with spreadsheets. Once your measurements are complete, a visualization tool, like the one offered in this racking assets management software, may help you understand and convey the information you've gathered to your team or senior management. Data visualization may alter how we view the data and how quickly and efficiently we draw conclusions.  Suggested Article: Distribution Metrics and KPIs for Online Businesses to Monitor in 2025 Conclusion Which of the 25 warehouses KPIs listed above are the most crucial? That relies entirely on where you think your warehouse may perform better and what you must demonstrate to management. Tracking pick accuracy and the number of things picked per hour can be more crucial if you need to support acquiring a new warehouse inventory management system. Get a grip on your rate of return and overall order cycle time if you are just starting. Whatever depends. Which metrics are the simplest to measure also matter? For example, measuring the backorder rate and inventory turnover will be simple if you have warehouse management (WMS) software that keeps track of inventory levels automatically. Likewise, integrating your sales and ordering software and calculating your sales-to-inventory ratio can be as simple. Nevertheless, obtaining these warehouse KPIs will be more difficult if your program doesn't have these measures or if you don't utilize any software. Utilize WareIQ to Outsource Your Warehouse and Fulfillment Operations Online merchants have a lot, from product development to attracting new clients. Fast-growing direct-to-consumer (DTC) brands do this by using WareIQ fulfillment services. You may maintain operational control by outsourcing fulfillment services to WareIQ, so you don't have to run your warehouse. In addition, WareIQ provides complete insight into your logistics operations, from receiving inventory to orders leaving the warehouse. The best-in-class technology is used throughout all of WareIQ's distribution networks and distribution services making it simple to monitor warehouse KPIs, real-time inventory levels, and fulfillment and shipping activities all in one location. Our data and analytics reports provide all the information you want to track warehouse KPIs more effectively and other supply chain analytics. [signup] Warehouse KPIs Frequently Asked Questions (FAQs)

August 05, 2022
What is Warehouse Putaway Process? Best Practices To Be Adopted For Optimizing Warehouse Putaway Process in 2025

What is Warehouse Putaway Process? Best Practices To Be Adopted For Optimizing Warehouse Putaway Process in 2025

Warehouse managers have consistently identified the warehouse putaway procedure as one of the significant causes of warehousing inefficiency throughout the years. The putaway technique utilized by many warehouse managers evaluated was incredibly inefficient. To improve the pick-pack-ship process and protect the security of goods, equipment, and workers, warehouses must have a precise and effective warehouse putaway procedure. A warehouse is always in motion from when an order is placed until it is sent. Therefore, getting putaway properly might be crucial for your company because it's one of the most necessary warehousing procedures. The many putaway tactics, their advantages, and how a 3PL may aid in enhancing warehouse inventory management will all be clarified in this article. What is Putaway Processing in Warehouse? Source Putaway in the warehouse is an essential part of warehouse management, which includes a number of procedures beginning with receiving in the warehouse and concluding with ensuring that inventory is kept in the proper warehouse locations. However, it involves much more than merely transferring the stuff from place A to place B. It becomes considerably more effective and straightforward to store goods without losing any SKUs with a systematic warehouse putaway system. Additionally, this procedure enhances warehouse organization and makes it simpler for pickers to locate the required SKU fast. [contactus_lilgoodness] Types Of Warehouse Putaway Process Although the warehouse putaway process(from dock to stock) may appear like a straightforward procedure, it has to be carefully planned because it is an essential part of storage. You might select one of these three kinds of warehouse putaway based on the kind, amount, and diversity of physical goods you have as well as other distinctive aspects of your company: Source Fixed Position Putaway Retailers who need to store a wide variety of products in the warehouse and want them to be accessible to customers may adopt this procedure. A distinct warehouse area designed for storing each type of commodity is allotted to it. For instance, preserved food will always be kept in a space with a regulated temperature. Additionally, heavier items will be housed in the bottom racks of the warehouse, while lightweight items can be held on the higher shelves. Dynamic Putaway Do you have a uniform mix of products? Are their physical attributes—size, weight, etc., similar? For that, pick a dynamic putaway to simplify stock retrieval and storage. Demand management is prioritized as judgments are made in real-time regarding where to put incoming inventories. Depending on the number of their sales, the items must be housed in the most accessible areas for quick collection as soon as they enter the warehouse. On the other hand, keeping track of the items is more challenging without a robust tech-powered ERP like warehouse management software because they are stored in new locations every time. Direct Putaway Direct warehouse putaway necessitates the least amount of product handling. Straight putaway, you may store the entire batch in a designated area without going through each item. For instance, putting the order away makes more sense than separating and storing each product if it is only for one buyer. Factors Affecting the Warehouse Putaway Process Depending on these three key elements, you should pick one of the putaway methods: Putaway Considering Movement Order fulfilment times may decrease by using ABC analysis to store things based on movement. Fast-moving goods, referred to as "A" categories, should be maintained close to the staging area and at an appropriate height so they may be picked up and prepared for shipment immediately. Similarly, "C" category items that move slowly should be stored towards the back of the warehouse. Putaway Based on the Kind of Package Products can be stored using this strategy based on their package. For instance, regardless of the type of goods, pallets and individual products can be stored in various places. Similar distinctions can be made between shipments depending on weight, shipment type, storage needs, and more. Utilization-Based Putaway Several goods are frequently combined, such as gas stoves and kitchenware. Employees can streamline the warehouse putaway process by grouping these goods according to their usage and the reasons they are being transferred. Benefits Of Warehouse Putaway Process An effective warehouse putaway procedure may result in less expensive and speedier outbound operations. A warehouse can gain the following main advantages by employing a planned and efficient putaway process: Optimizes The Layout Of The Warehouse You may make the most of your available retail warehouse space by adequately planning the workflow of your putaway procedure. It is simpler to keep things where they belong by grouping items of the same shape and size together and separating them based on various factors. By doing this, you may avoid disorganized inventory management that can limit warehouse employees' freedom of movement and ability to complete timely picking and packaging. Enhances The Selection Process Pickers wander about the warehouse for more than half their typical workday, looking for the items on their order. Travel can account for 50% of the picking time and another half of the total labour cost. They may significantly save the time it takes to look for items and complete an order by putting a solid warehouse putaway process in place. A practical choice procedure is unquestionable. Accurate Inventory Management Human mistakes and inaccurate inventory management systems can be expensive for the company. In the warehousing business, the typical picking mistake rate ranges from 1 to 3 per cent. This translates to an average cost per inaccuracy and a profit drain of up to 15%. You can accurately track where each product is, how much there is, and many other things when you have a putaway procedure. Additionally, it lessens the likelihood of losing or misplacing an item. Increasing Stock of High-Value Products Stocks of high-volume items can be increased by keeping them in an area that is simple to access and keep track of. Additionally, it stops pickers from repeatedly searching the warehouse for a specific item and delaying order fulfilment. You'll be able to tell right away whether the stock is falling. Suggested Read: Smart Warehouses Management System Best Practices to be Adopted For Optimizing Warehouse Putaway Process [2025] When improving warehouse operations, warehouse managers frequently overlook the putaway process, even though it is a crucial step in raising warehouse productivity. The selecting process, in particular, is directly impacted by the initial arrangement of the products in the warehouse. Travel and picking and packing times are longer when things are not kept in the most convenient place. The security/integrity of the cargo and the employees' safety are also at risk when cargo is not stored in the most advantageous position. The best practices and technology that warehouse managers may employ to enhance the warehouse putaway process and boost warehouse productivity in year 2025 are listed below. Collect Data and Report Analytics In Real Time Data is king when it comes to optimizing warehouse operations and putting in place a productive putaway procedure. Data on order/sales volume, storage availability, cargo category (e.g., Hazmat, perishable, high value, etc.), cargo size, weight, and height must be recorded regularly to determine the ideal storage site. As a result, two essential components of the warehouse management system (WMS) are required: sufficient and flexible data collecting capabilities and ongoing data analysis. The next stage is ensuring that we are collecting data reliably and effectively by automating warehouse collection as feasible after the relevant WMS is in place. This will enable us to eliminate entry mistakes and cut back on overhead. For instance, an integrated digital weighted scale may collect cargo weight data, while a package or pallet dimensioning system can gather data on dimensions. Both approaches automate these processes and do away with data entering mistakes. Keep an Eye on Space Availability and Storage Capacity By keeping an eye on storage capacity and availability, saving wasteful journey time to places with an insufficient room or ability to store the cargo and boosting warehouse efficiency is possible. To monitor capacity and space availability, warehouses may track used/unused space throughout warehouse zones using barcode scanners and bin positions. Currently, the majority of warehouse management systems support this method (WMS). This system, however, is vulnerable to human error since it depends on the warehouse clerk to scan the position of the bin and the contents each time they complete a putaway or pick action. The use of RFIDs to automatically record tasks without human interaction is another strategy. The usage of RFIDs in conjunction with more sophisticated solutions, such as sensors, will be part of an ecosystem of technologies to enable real-time tracking of capacity and space within the warehouse, even if this solution is still being adjusted and tested. Shorten Travel Time Another crucial element in streamlining warehouse operations, including the putaway process, is cutting down on travel time. Again, the aim is to reduce the time for items to transit from the receiving region to the storage site. Warehouse managers may perform an ABC analysis to comprehend high volume/frequency cargo better. Then, to cut down on trip time, the warehouse layout should be modified (if required) to bring high volume/frequency goods closer to shipping locations. For this to work, it's critical to continuously monitor order volume and frequency and adjust when significant alterations occur. Another option to reduce travel time is to designate routes that take the quickest way to the storage site. Warehouse managers should consider things like distance, warehouse traffic jams, and potential conflicts with other procedures that need movement. When Possible, Utilize Direct Putaway Process In Warehouse Whenever feasible, employ straight warehouse putaway as another great practice. With this technique, no staging phase is involved in moving the goods from the receiving region to the final destination. This method expedites the procedure while requiring less handling and warehouse space because it does not require specific staging areas. When putting this strategy into practice, it's critical to remember that the WMS must be able to assign final locations from the point of delivery at the receiving dock or from the advance shipment notice (ASN). Without this ability, it is nearly hard to manage an efficient straight warehouse putaway operation. Use Both Fixed and Moving Locations If the circumstances permit, utilizing a balanced combination of permanent and dynamic locations is also conceivable. A fixed placement is a predetermined storage area, warehouse zone, lane, or bin designated based on specific criteria. For instance, a fixed location may be connected to a particular client, product category, or end destination. Because warehouse employees can remember the precise position assigned to each container, fixed locations help the operation run more efficiently. Dynamic locations, on the other hand, offer greater flexibility since they let employees place anything in the first empty spot they come across. A trustworthy inventory management system is essential when employing dynamic locations to track products and locations. Additionally, high-volume seasonal products can be temporarily stored close to pickup sites using dynamic placements, and when volumes change, they can be swapped out for another item(s). Keep Warehouse Clean and Organized Lastly, an effective process might depend on having a tidy and organized warehouse and distribution centre. A crowded and disorganized facility will directly impact the pace at which items are stored. To get to the intended place, clerks must first discover suitable spots, shift freight to make room for it, and negotiate barriers. Most significantly, disorganized warehouses put workers at greater risk for injury and raise the possibility that the integrity of the cargo might be compromised. Streamlining your warehouse procedures or utilizing the newest technologies won't help if your warehouse isn't clean and orderly. Conclusion The warehouse putaway process is equally critical to the warehouse as picking, packing, and shipping. It remains, nonetheless, one of the most overlooked features of the warehouse. Businesses that don't implement an efficient warehouse putaway procedure may encounter various issues, including decreased production, product losses, ineffective inventory management, and more. Warehouses and fulfilment centres cannot afford to adopt a complacent mindset and allow process inefficiencies to impact productivity negatively and, in turn, the customer experience in today's fast-paced and always-changing consumer market. Therefore, there is a more critical requirement for constant visibility and data-driven business advice to make all fulfilment operations error-free. How Can WareIQ Enhance The Putaway Process In Warehouse With technological solutions, WareIQ assists e-commerce businesses in optimizing putaway and other warehousing procedures. Our distribution and fulfilment services make monitoring warehouse KPIs incredibly simple and expedite the warehouse putaway process. This increases your company's capacity for inventory optimization. Additionally, our clients have access to a network of fully functional distribution facilities, complete with staff and other services for warehouse management. The technology, support, and expanding distribution network made possible by WareIQ's warehouse network system enables retail enterprises to scale. [signup] Warehouse Putaway Process: Frequently Asked Questions (FAQs)

July 30, 2022
How to Improve Regional Utilization and Optimise Demand-Based Inventory Distribution in 2025 for Faster eCommerce Fulfillment with Accuracy & Lower Inventory Holding Costs?

How to Improve Regional Utilization and Optimise Demand-Based Inventory Distribution in 2025 for Faster eCommerce Fulfillment with Accuracy & Lower Inventory Holding Costs?

Brands must provide faster deliveries and effective order fulfillment as competition in the eCommerce sector heats up. It is essential to be able to predict demand effectively and keep inventory levels in line with consumer demands. The amount of time it takes an eCommerce business to deliver an item to a customer's door has a significant impact on how customers perceive a brand. It is essential for both small and large businesses to fulfill orders quickly and accurately if they want to grow their eCommerce consumer base. Smaller brands must increase their consumer base through flawless order fulfillment while larger companies and international brands must preserve their brand reputation and existing customer base. To make delivery quicker and more cost-effective, eCommerce businesses are practising regional utilization. Optimizing regional utilization can help ecommerce businesses reduce shipping costs, improve delivery times, and increase customer satisfaction. It can also help businesses better manage their inventory and reduce the risk of stock-outs or overstocking. Let us get a better understanding through this article. What is Regional Utilization? Regional utilization (RU) is an eCommerce calculation term which reflects the percentage of local and zonal order fulfillments out of the overall order fulfilment. It is a measure of how well the fulfillment center is able to meet the demand for orders within a specific geographic area. Giant eCommerce players consider regional utilization (RU) as a significant factor in determining the seller account status. Electronic brands and sellers often prepare their stock for some of the most awaited eCommerce season sales like Amazon’s Great Indian Festival or Flipkart’s Big Billion Day. Regional utilization (RU) ensures faster delivery and reduces additional logistic costs. [contactus_lilgoodness] How to Calculate Regional Utilization? To calculate regional utilization, you will need to gather data on the volume of orders being placed in a specific region and the efficiency of your fulfillment center in servicing those orders. Here is an example of how you could calculate regional utilization: Gather data on the volume of orders being placed in the region. This might include the number of orders placed per day, week, or month and the average order size. Gather data on the efficiency of your fulfillment center in servicing those orders. This might include the number of orders being fulfilled per day, week, or month, as well as the average time it takes to fulfill an order. Calculate the regional utilization rate by dividing the number of orders fulfilled by the fulfillment center by the total volume of orders placed in the region. For example, if your fulfillment center is fulfilling 1,000 orders per month in a specific region, and the total volume of orders placed in that region is 2,000 per month, your regional utilization rate would be 50%. This means that your fulfillment center is fulfilling half of the orders placed in the region. The following illustration shows the regional utilization (RU) formula: Let's see, with the help of an example, how regional utilization (RU) is calculated. Suppose you have 10 fulfillment centers across India and the following factors are at play: You received 25 total orders in the month of July, 5 from New Delhi, 5 from Mumbai, 5 from Bangalore, 5 from Pune and 5 from Chennai. Out of 25, you managed to fulfill 15 orders locally. Therefore, your regional utilization (RU) = 10/25 X 100 = 60% Why Should an eCommerce Business Figure Out Their Regional Utilization? Businesses calculate regional utilization (RU) for a variety of reasons, including: To Get Faster Order Fulfillment When inventory is stored in close proximity to your customers, their orders can be fulfilled at a faster rate due to the less amount of distance that needs to be traversed and less time needed to travel that shorter distance. For instance, if your company has fulfillment centers located in Mumbai and Pune and you get the majority of your orders from those 2 cities, fulfilling orders will be much faster than if your fulfillment center was located in Nashik.‍ To Achieve a Lower Amount of Returns If there is an unforeseen delay in the fulfillment of an order or delivery timelines are generally longer due to the physical distance between the fulfillment center and the customer, there is a higher chance of customers initiating a return. When businesses take advantage of regional utilization, they reduce the wait time that customers have to endure and thus, reduce the number of returns that are initiated. ‍‍To Save on Shipping Expenses By making use of regional utilization, you can save immensely on your shipping costs because prices increase along with distance and if the distance is shortened due to goods being located to the customers that order them, shipping expenses automatically decrease. To Increase Profit Margins Regional utilization not only reduces shipping and logistical expenses, it also increases the efficiency of fulfillment operations, including saving money on returns management. All these elements when put together lead to an overall increase in your company’s profit margins. Some more important uses of regional utilization are listed below: Finding the inventory allocation across the country according to demand Creating a successful strategy for effective deliveries Changing to a low-cost shipping module Increasing product visibility better helps your seller account on online marketplaces to perform better Reducing RTOs Increasing customer satisfaction by meeting their expectations Offering same-day delivery Storing different inventory items at different locations as per their order volumes 7 Ways to Improve Regional Utilization & Optimise Demand-Based Inventory Distribution in 2025 To improve regional utilization (RU), eCommerce businesses can adhere to 6 methods mentioned below:  Keep Warehouses at Multiple Locations A centralized warehouse is easy to manage, but it increases the cost and delivery time, affecting your revenue and customer satisfaction. It is always better to have decentralized inventory at multiple warehouses across the country to reach customers faster, that are located in any nook and corner of the country. Use a Demand-Based Inventory Model Source Instead of keeping all of your inventory in a single warehouse, consider using a demand-based inventory model that allows you to store inventory closer to your customers. This can help reduce shipping times and costs, and improve regional utilization. Have a Trained Resource Pool of Warehouse Operations & Delivery Personnel Trained human resources in warehouse management & last-mile delivery can make regional utilization easy, as they will ease operations and smooth your delivery processes. They can personally handle any task with great effectiveness. Opt to Partner with 3PL Partnering with a trusted 3rd party logistics company helps you to take more and more orders and then easily fulfill them. A few fulfillment partners come with the feature of same-day and next-day delivery and have micro fulfillment centers scattered across the country, which increases regional utilization. Never Risk Stock-Out of Inventory Always keep a minimum amount of inventory with you to deliver orders swiftly instead of risking stock-outs. MOQs, reorder quantity and reorder level can help you to avoid stock shortage and purchase it as per your demand, in addition to improving regional utilization. Optimize Data and Forecast Demand Data is the equivalent of gold in the digital market. In today’s world, every business is collecting leads. Data will help your company to forecast its demand and improve regional utilization to offer better order fulfillment. You will not be overloaded with inventory or face shortages during seasonal sales. (You can learn more about this here, seasonal demand) Look at data on where your orders are coming from, what products are selling the most, and when orders are being placed. This will help you understand your demand patterns and identify opportunities to optimize your inventory distribution. Use a Warehouse Management System A Warehouse Management System (WMS) is a high-tech software mainly used for warehouse management. It automates multiple warehouse processes which makes fulfilling orders faster and less prone to errors and mistakes. Inventory across multiple fulfillment centers and sales channels can be managed from a single dashboard. Suggested Read: 6 Steps for Effective Physical Distribution Conclusion: How to Optimise Inventory Distribution and Regional Utilization with WareIQ for Faster Order Fulfillment? Regional utilization (RU) is now the standard industry indicator for measuring the effectiveness of eCommerce companies, whereby shipping orders from the same area might greatly raise the market's profit margin. An increase in regional utilization (RU) can address the unbalanced dynamics of supply and demand, enabling quick fulfillment, significantly reducing shipping costs and enhancing the customer experience. By focusing on regional utilization, businesses can reduce shipping costs, improve delivery times, and increase customer satisfaction, which can all contribute to long-term success. We at WareIQ personalize your deliveries according to their demand, priority, locations, etc. We offer branded shipping and micro fulfillment centers across the country to enable regional utilization in most cities and towns. WareIQ is an eCommerce fulfillment platform that offers Prime-like logistics to online brands for same/next day delivery. You can split your inventory in-house or you can use a tech-enabled 3rd party fulfillment company like WareIQ to get access to fulfillment facilities that are strategically placed all over India. We combine a nationwide fulfillment & shipping network, a highly-skilled warehouse operations team and our vertically integrated tech platform & inventory planning product to drive: Over 30% accelerated sales with same/next day delivery options across 20+ marketplaces/D2C platforms 80%+ regional utilization & 40% lower holding costs 100% compliance with marketplace SLAs with 0% leakage claims in processing returns Regional Utilization: FAQs

June 29, 2022
What is a Retail Warehouse? Definition, Importance, Advantages & Challenges of Retail Warehouse in 2025

What is a Retail Warehouse? Definition, Importance, Advantages & Challenges of Retail Warehouse in 2025

The world of retail warehousing is changing, constantly morphing to keep up with structural changes in the global eco-social system. Supply chain management is in flux. The constant changes here have amplified the crisis in supply chains. Demand is fluctuating YOY, and labour shortages have added to the turmoil. With all these in the larger economic equation, firms struggle to meet even basic demand-supply. When you factor in the eCommerce boom with the above, you realise that retail logistics are at a defining moment in their history. The Guardian reports that in the first half of 2021, a record six billion pounds were invested in U.K. warehouses. What’s more, the global warehouse automation market is expected to be just under 31 billion USD by 2025. There comes the need for retail warehouse putaway. As eCommerce warehouses, the retail backbone, change, only one option seems feasible. We need to respect the change, welcome it, and adapt to it. We need to see the challenge as an opportunity. What is a Retail Warehouse? The retail warehouse definition includes the following elements:  It involves storing a retailer's goods Retail warehousing involves online order fulfillment For the above two points, warehouse space is used Retail warehousing for eCommerce is a part of the retail supply chain. It is an essential part of it, directly affecting the efficiency and quality of every part of the supply chain activity that occurs after it. To illustrate the above, imagine a disorganised storage process within the warehouse. Here, fulfillment will naturally slow down at the very first step due to the difficulty of product picking. On the other hand, imagine an optimised, tidy warehouse. Pickers can now quickly pick and pack without botheration. Warehousing can be done in one of the following ways, depending on the size of the business: Done from home Done from the store Rented warehousing 3PL warehousing Currently, warehouse renting or 3PL partnering are considered cost-effective and plausible based on average retailer size. [contactus_gynoveda] Why is a Retail Warehouse Required? Retail warehousing is required because it performs an essential function within the supply chain. It is responsible for crucial supply chain functions, including the following: Inventory Storage Customer Order Fulfillment Retail Store Order Fulfillment Inventory Storage This is a mission-critical process within the supply chain. It begins with procurement, wherein goods are ordered from the producer. After receiving the inventory, the warehouse organises and stores it. The process involves unloading every item of inventory. This is then sorted by SKU and type. Inventory counts are done to determine a match between orders and delivery. Inventory levels are reestablished. Once this is done, the inventory is stored methodically within the types of warehouse. Inventory organisation is essential. Popular SKUs are kept within easy reach. All SKUs have their location, and different SKUs are stored separately. For example, finished goods inventory is stored separately from production inventory. Customer Order Fulfillment A retail warehouse also functions as a fulfillment center, in which capacity they are also engaged in storage, picking, packing, and shipping preparation. Maintaining order accuracy while keeping the operations swift is the challenge. The warehouse management system, eCommerce platform, and inventory management systems need to work in sync to achieve this.  Retail Warehouse Order Fulfillment Order fulfillment is done in various ways by the warehouse: Retail warehouses often ship to retail stores rather than to the customer. DTC brands ship directly to the customer. Retailers can ship to both customers and stores. The Evolution Of The Retail Warehouse There have been four generations of retail warehouses so far. Generation 1: Conversion of industrial units for retail use Generation 2: Freestanding units built for a purpose Generation 3: Retail parks consisting of many units in one Generation 4: Fashion parks that were more complicated than standard retail parks.  As retail warehouses have evolved, the following changes have occurred within their setup: Well-trained employees: Due to the growing sophistication of the warehousing system, it is essential to keep employees well-trained. They need to know how to handle complicated software, like inventory management. They need to know when inventory needs to be restocked so as to always be ready for customer orders. Improved tracking systems: In the present generation of the retail warehouse, product scanning enables instant access to product information. Suppliers and customers can know important product information within seconds. Great storage systems: Modern tracking systems have made storage more efficient by optimizing available inventory spaces. This way, all the inventory space is utilized in the best possible way. The Developing Models Of Warehouses And Fulfillment Centers Warehouse management models are changing, and new bleeding-edge models are being born faster than ever before. Legacy systems are shifting. Let's talk about the strategies of warehouse and fulfillment centers in pointers here. These strategies have completely changed how warehouses function. Some of them are: Digital Warehouse Twinning Post-pandemic, the world now realises the importance of preparing for an emergency. Using technology, you can create a “twin” digital warehouse to simulate your physical warehouse performance. Twinning your warehouse (digitally) can provide a 20%-25% boost in your efficiency. New strategies for your warehouse can be tested on its digital twin. This can help make efficient business decisions regarding workflow and floor plan redesigns via simulation.  Suggested Read: Factors affecting Warehouse KPIs On-Demand Warehousing Businesses face sudden spikes and declines in demand. This is why on-demand warehousing is gaining popularity. This model helps businesses meet short-term and immediate needs. Companies can now meet rapid fluctuations in demand without rigid and long-term contracts. The Service Angle Of Warehousing And Distribution (WaaS, DaaS) WaaS and DaaS are the new stars of the retail sector. Labour shortages and supply chain disruptions are tackled by shifting their management to competent partners. SMEs can now grow quickly with minimum risk. Firms can now focus on their competencies, free from logistical nightmares. The Magic Of Micro-warehousing As eCommerce has risen, so have consumer expectations. The need for quick home delivery has led businesses to decentralise into physically separate, digitally connected units. This has allowed for same-day delivery. Underutilised physical stores are now used as “dark stores” that exclusively service online buys. Advantages of a Retail Warehouse For eCommerce Fulfillment Retail distribution warehouses are great for eCommerce fulfillment. The reasons are many: They use existing facilities optimally. Urban areas that are struggling (like the loss of a mall) can be helped out. They can serve niche markets competitively. They offer high standards complying with industrial use as well as ample parking. Furthermore, they add to regional and local floor fulfillment centers. 4 Main Challenges of Retail Warehousing Faced by Online Brands in 2025 If you want to scale your business online, retail warehouses are essential. As your business grows, warehouse management gets more complicated. As you scale, here are a few challenges you may face for the year 2025: Lack of Expertise Normal demand periods come with challenges of their own. When you are trying to scale, however, warehousing can overwhelm you. Small retailers often don’t know the nuances of warehousing as experts do.  The lack of experience may mean retailers overpay for low-quality solutions. Easily preventable errors may cost you money, time, and resources. Similarly, badly-planned logistics can jeopardise company operations. 3PL experience and knowledge can be a lifesaver in these circumstances. 3PLs can streamline warehouse processes and increase efficiency. Shipping protocols, last-mile logistics, and seasonal blockages can easily be countered by partnering with a great 3PL fulfillment provider. Inefficient/Outdated Technology One of the challenges of retail warehousing that can be nipped at the outset is poor technology. Outdated technology can lower warehouse efficiency instead of increasing it. Poor technology may be better than manual operations, but it can’t scale to a high order quantity.  To optimise warehouse operations, you need modern, relevant, and easy-to-learn Warehouse Management System Software. Invest in the best hardware (warehouse automation, robotics, labels, and barcode scanners). Also, invest in a modern IMS and WMS. Long-term, these will surely give you a high ROI. Inventory Management Inventory needs to be managed religiously for one reason - so that businesses can always cater to demand. When order volumes are high, inventory is replaced at a rapid pace. This means inventory needs to be replenished and scaled to ensure there is no shortage.  These are the steps involved in successful inventory management: Regular inventory audits to keep accounting practices and inventory levels at pace. Regular inventory replenishments to avoid stockouts and backorders. Demand forecasting, using trends and seasonality to hold enough ready stock and avoid deadstock. Keeping safety stock ready for emergencies. Keeping inventory counts current for all SKUs. Increased Order Volume Sometimes order volumes spike. To keep in tandem with high demand, an order fulfillment strategy that can manage higher than expected order volume is needed.  To meet customer needs, you need proper warehouse workflow systems, staff, and storage space. If you don’t have these optimised, it may result in low order volume, low returns or worse. Study your supply chain before major growth periods. Ensure your processes, floor space, and storage space are adequate to meet all needs. Sometimes sudden, rapid growth calls for partnering with a 3PL. WareIQ Warehousing Solutions for Growing Brands Growing brands would do well to partner with WareIQ warehousing solutions. This full-stack e-com fulfillment platform helps brands increase sales. The cross-national network of last-mile couriers and fulfillment centers helps your business store goods closer to your customers. You are billed based on usage. The prediction engine based on machine learning optimises inventory placement and the design of the warehouse network. We offer the following services for growing brands: Logistics Consulting Logistics consulting will help you optimise both efficiency and cost of your operations. This service works for larger and well-established businesses by delivering a high ROI. Keep everything in-house with our logistics consulting services. Warehouse Management Software If you want to save time and money via automation, use warehouse management software. WMS gives you a high return on the effort by automating different warehouse processes. You can analyse the productivity of your warehouse by tracking data. Order fulfillment mistakes can be minimised using WMS. This software helps retailers manage day-to-day operations and run their retail warehouses efficiently. Third-Party Logistics Partnering with a 3PL is great, not just for DTC brands. It works well even for small businesses and large retailers, who can gain from the advanced technology and experience of 3PLs. 3PL outsourcing allows retailers to scale efficiently. They gain resources to grow their business with direct capital and real estate investments.  Some retailers find it beneficial to store inventory in a centralised location. Others may find it better to distribute their goods across multiple warehouses throughout one nation. This lets retailers reach customers across pan-country locations efficiently.  One route to do this is to buy or rent warehouses that require large investments. But the more efficient and cost-effective solution is to partner with a 3PL. 3PLs can minimise retailer costs by analysis, optimisation, and improvements in operations. 3PL also optimises time. For retailers who want to cut out planning, coordination, and execution of operations, partnering with a 3PL is a great way to go. Fulfillment Solutions WareIQ enables businesses to use cutting-edge technology to optimise their logistics. These include services from warehousing to eCommerce shipping, including storage and fulfillment.  Prominent growing businesses, as well as smaller retailers, can benefit from partnering with WareIQ. You can reach more customers with WareIQ using multichannel retailing, B2B, and retail drop-shipping. A network of fulfillment centers and warehouses help you achieve fast shipping affordably.  Expect uniform operations and order fulfillment regardless of where you store your products. Best eCommerce warehousing practices are observed in every warehouse. Use automation to the fullest to optimise, analyse, and make sense of your business. WareIQ’s top-class fulfillment solutions ensure that you are at the top of your game. [signup] Retail Warehouse FAQs

June 02, 2022
What is a Warehouse Management System (WMS)? A Detailed Guide for eCommerce Sellers: Features, Types, and Benefits of WMS in 2025

What is a Warehouse Management System (WMS)? A Detailed Guide for eCommerce Sellers: Features, Types, and Benefits of WMS in 2025

The world is now moving towards digital platforms at a supersonic speed. You can find almost everything on the Internet today. This is remarkably changing customer behaviour. Right from ordering foods to getting their favourite camera, individuals prefer online platforms like never before. Moreover, the payment process, shipment tracking, and even returning the product, everything is possible from anywhere, anytime. The overall paradigm shift in the supply chain has put the wholesalers, third-party logistics - 3PL companies, and logistics companies under tremendous challenge. As per the Statista report, in 2022, the number of online buyers crossed the 2.14 billion mark globally. In terms of value, in 2022, the retail eCommerce sales were 5.1 trillion U.S. dollars worldwide, and it is forecasted to touch 7.4 trillion dollars by 2025. There is no doubt that the situation will become more challenging in the future. Therefore, there is a need for an efficient, user-friendly, and fast Warehouse Management System (WMS).  Managing a giant warehouse 24 x 7 is not an easy task. Additionally, it is like a nightmare without an efficient tool when you need to order many Stock Keeping Units (SKUs). WMS is a great tool to manage the entire activities of a warehouse. The WMS handles everything effortlessly from inventory management, stock replenishment, receiving, warehouse put-away, pick, packing, eCommerce shipping, and tracking of the logistics system. It helps you improve productivity and profit through advanced software and technologies. Barcode systems, RFID labeling, hi-tech automated robots for pallet movement, ERP systems, transport management systems, logistics software, augmented and virtual reality wearables, etc. are some of the hi-tech features of WMS. This article will walk you through the basic understanding of the warehouse management system, what is wms system, its features, how and where it fits with the supply chain, and different WMS systems. We will also discuss the benefits of Warehouse Management Software and the future of WMS. What is a Warehouse Management System (WMS)? A warehouse management system is a software solution that provides transparency and visibility to the entire warehouse operations. WMS is efficient enough to manage inventories, order fulfillment, and inbound-outbound logistics deliveries of any single warehouse or multi-location warehouse cluster. It is highly efficient in manufacturing setup and retail industries as it can track every movement of materials. An effective WMS can optimise your warehouse resources and allow you to maximize space utilisation. Moreover, with a suitable investment in the equipment, warehouse management software benefits the organisation by remarkably saving the material movement time. This, in turn, increases the efficiency of the warehouse. WMS reduces human efforts tremendously by tracking the entire material movement on a real-time basis. These software solutions are so efficient that they can trace the exact time of order placement, the pick-pack time, the person involved, and where the product has been transported by which vehicle. [contactus_gynoveda] What are the Features of a Warehouse Management System (WMS)? An efficient WMS offers many features to its clients, and the final goal is to simplify the business process while improving overall efficiency. While planning for a software solution for your warehouse, you must consider what feature tools are required. In general, there is a spectrum of warehouse management system features. Here are some essential features of a sound WM system. · Warehouse designing: The efficacy of a warehouse operation is maximum when it is appropriately designed, depending on the material flow, loading-unloading dock locations, number of materials to be handled, and many more parameters. WMS provides excellent design solutions to optimise the operations. It takes care of every minute detail of inventory management like storage location, pallet allocation, minimum travel path calculation, and many more. · Tracking of inventory: Modern systems can track every movement and reflect the fulfillment status on a real-time basis. Advanced technologies like AR wearable gadgets, RFID systems, and barcoding ensure that every material has its area and vice versa. Moreover, we can get a clear picture of the invoicing data, packing size, space availability, etc. · Receiving and storing: This includes receiving materials from suppliers, checking with the purchase order, and leaving materials at the correct location without any error. Additionally, the inventory is updated on a real-time basis. · Pick, pack, ship: The intelligent warehouse system analyses several parameters and provides solutions for the best way of picking the material from the shelf, packing procedure, and shipping information. This smart software can generate packing lists, invoices, and bills of lading with a single click and can send advance shipping notifications to the clients. · Workforce management: Hi-tech WMS helps the warehouse manager to run the show efficiently. It provides visibility on the resources and indicates human resources availability. Additionally, you can monitor their performances and set KPIs (Key Performance Indicators) for performance evaluation. · Reporting: Reporting is a critical part of a warehouse. It comprises abundant information from receipt, invoices, inbound and outbound deliveries, inventory status, and more. An innovative WMS can generate customized reports in real-time. · Yard and dock management: It assists the dock supervisor in getting a fair idea about available docks and reduces waiting time for the trucks. Moreover, it helps in managing cross-docking and other inbound-outbound deliveries. Where Does a Warehouse Management System Fit into the Supply Chain? A warehouse is the central part of any supply chain. It plays a significant role in running a smooth supply chain by receiving goods, storing them without any damage, timely issuing raw materials and components to the production shop floor, and delivering the correct finished products to the right person at the right time and quantity. For example, suppose the warehouse cannot provide the suitable material or component to the production line on time. In that case, it will hamper the overall production and SCM process, cause a delay in deliveries, and ultimately hinder customer satisfaction. This is a simple example of how warehouse management can impact the supply chain. The modern supply chain operates on visibility and transparency. The warehouse is responsible for providing the correct information on the inventory front, order fulfillment, invoicing, etc. The more efficiently the warehouse works, the more the organisation can fulfill the customer’s requirements. WMS suppliers are hence charting profitable territories. The warehouse profoundly impacts supply chain management's revenue and business strategies. It plays a significant role in improving SCM performance by Efficient storage Strategic location Security Inventory Accountability Fulfillment of orders and warehouse distribution services Economic benefits Value-adding operations What are the Types of Warehouse Management Systems in 2025? Basically, we can categorise it into three major types: Standalone WMS  This is the most traditional form that most organizations use. It is deployed on the company’s premises and uses its hardware system. According to their business complexities, every organisation can do a high level of customisation on this standalone WMS. Though it is a costly option, you can have tighter control over the system. After the system development and implementation, it is the asset of the company, and they need to bear the cost of maintenance, expansion, and updates. Another drawback of this traditional system is the complexity of integration with other latest next-gen technologies. Cloud-based WMS With the introduction of cloud technology, the latest WMS has adopted this platform to provide seamless solutions. You can enjoy the benefit of horizontal implementation at a faster pace. This, in turn, reduces the implementation cost. This system has the next level of advantages. There is no need to use your own hardware and IT resources for implementation and maintenance. The auto-update facility keeps you away from the headache of regular hassle. This system can be scaled up with your business expansion without investing much. Moreover, as it operates through the Cloud, your data is safe from any internal disaster. SCM and ERP-based WMS There are many software solutions that provide an entire system to the organisations for every function. For example, Enterprise Resource Planning software like SAP and Oracle offers a package solution that includes all the functions as modules. They have a finance module, production planning, material management module, inventory management module, and warehouse management module. The beauty of these solutions is, that they are integrated, and all data is linked to each module. Therefore, such systems are capable of providing a holistic picture to the management and offer end-to-end transparency of the supply chain. What are the Benefits of Warehouse Management Systems? There are several benefits of having a robust WMS in place. This helps the organisations improve their efficiency in every facet in the long run. We have listed some of its crucial advantages: Improved operational efficiency: The WMS is connected to many new advanced technologies, which helps streamline processes and reduce errors significantly. Warehouse management software checks every step to avoid mistakes from the inbound receipt to the outbound deliveries. Moreover, with the help of automated tools, the warehouse team can handle larger volumes with less effort and less paperwork. By eliminating the non-value-adding activities (NVAs) and duplication of work, WMS enhances the overall efficiency of warehouse operations. Better inventory management: Inventory blocks a tremendous amount of money in terms of materials but is essential to manage unplanned situations. An efficient warehouse management system in logistics indicates the correct inventory level and defines the min-max levels of items. Based on their usage and the number of picks from the warehouse, WMS indicates the frequent, medium, and rarely used items, which helps in correct material ordering. Moreover, the advanced warehouse management software can identify excess and obsolete inventories and trigger you to take necessary actions. Holistically, to manage a healthy inventory, you need a robust WMS. Improve labour management: You need not worry about labour management if you have intelligent WM software in place. To enhance the productivity of the resources, it can define workloads for the staff and optimise the in-warehouse movement path. It can even indicate the labour requirement and create a schedule for them. Safety is today’s topmost priority, and advanced WMS reveals the possible hazards within the space, ensuring the safety of man and machine. Reduce cost: Modern store management software is smart enough to calculate and advise optimum space utilisation ideas for e-commerce warehousing. It also determines the minimum travel path of the materials to reach the assembly line or loading point. Suppose you adopt the high-tech WMS during the initial warehouse design stage; its advanced simulation will help you to create optimised floor plans. Moreover, it highlights the perfect pallet locations, shelves, and equipment areas to run the warehouse with the highest efficiency, which, in turn, saves you a lot of money. Waste reduction: Modern software is backed up by solid data. WMS automatically identifies and applies the First-in-First-out (FIFO), Last-in-First-out (LIFO), or Highest-in-First-out (HIFO) policy on the goods based on the strategy. In the case of perishable or shelf-life items, this smart system informs you well in advance about the items approaching their end. It triggers you to pick those items first or prompts you for a sales push to avoid wastage. Boost customer satisfaction: Today’s businesses are driven by customers, and boosting their experience and engagement is crucial for success. Top-notch warehouse management software can help to boost your customer delight by improving order fulfillment, quicker deliveries, and fewer inaccuracies. If your WMS is integrated with any CRM software that provides a status update to the customer, it will improve your customer loyalty and brand reputation. Enhance supplier relationship: Suppliers are the pillars of any business. You need a close, transparent, and real-time information-sharing system with your suppliers to have a robust supply chain process. Your WMS can be integrated into the supplier’s system, bridging the gap and establishing a two-way information flow. It makes the process more flexible, and your suppliers enjoy a healthy business relationship. The WMS also benefits as the technology takes the entire industry towards the cloud infrastructure. Advanced cloud-based warehouse management software solutions provide some fantastic benefits as listed below. Fast implementation: Considering the traditional systems, cloud-based WMS is faster to implement. Where the conventional system takes months to implement, the advanced cloud-based platforms can be implemented within weeks, depending on the complexities. Quicker implementation provides minimum interruption to the running business and improves ROI and profit for fast-paced organisations. Fewer upgrade hassles: The beauty of cloud management includes the updates and modifications that occur on the cloud system itself. The vendor takes responsibility for making necessary modifications and changes in the cloud server. There is no need to update the system at regular intervals. It saves time and hassle for the customers. Moreover, it avoids costly customisations like the in-house software. It ensures that you always work on the latest version. Lower upfront cost: Cloud-based WMS is significant in terms of initial and running cost savings. This architecture neither requires any hardware or software installation nor any IT administrator to manage it. Additionally, the auto-updates, installation of the latest version, and modifications help you save tremendous time and money. There is no need to allocate additional resources to manage. Scalability and flexibility: As your business grows, you need to expand the IT systems and WMS. Cloud-based structures are remarkable in terms of scalability. The WMS can be scaled up quickly and can handle more complex supply chain situations. Furthermore, the flexibility of such a system provides a huge advantage to organisations in managing difficult situations. Seamless integration: You may be using different software solutions like ERP systems, software for your accounting process, and likewise for your business. The advanced WMS cloud versions are easy to integrate with your other business software, and you can get an integrated IT solution for your needs. How do I choose the right WMS for my business? There are several factors to consider when choosing the right warehouse management software for your business: Determine your business needs: Identify the specific problems you are trying to solve and the features you need in a WMS system. Research potential solutions: Look for options that meet your business needs and compare their features and pricing. Evaluate the vendor: Consider the vendor's reputation, customer support, and ability to customize the software to your specific needs. Test the software: Ask for a demo or trial version of the software to see if it meets your expectations and is easy to use. Consider integration: If you have other systems, such as an enterprise resource planning (ERP) system or transportation management system (TMS), make sure the warehouse management system can integrate with them. Get customer feedback: Ask for references from other businesses that are using the software and get feedback on their experience. Evaluate the total cost of ownership: Consider not just the upfront cost of the software, but also the ongoing costs of implementation, training, maintenance, and support. What is the Future of Warehouse Management Systems in 2025? With the increasing demand in eCommerce and other industries, there is no doubt that businesses need to deliver the products in the shortest time period. The best possible way to handle such a situation is to manage your warehouse efficiently. WMS is going to solve the major issues of organisations by providing advanced solutions, and the future of this technology looks bright. According to a study, in 2022, the worldwide valuation of the WMS market was USD 4.7 billion, and it is forecasted to touch the mark of USD 8.9 billion by 2030. This shows a significant CAGR growth of 11.1% from 2022 to 2030. But how will the warehousing system reshape itself in these next couple of years? Let us see in detail. Introduction of Robots To manage the mammoth material's inbound and outbound flow, it is evident that warehouse management systems in logistics need automation. The introduction of robots in managing warehouse operations is a must. This revolution has already started, and many companies are offering best-in-class robotic solutions in this area. These robots can move materials to designated places, load and unload materials from vehicles, accurately pick-pack and ship, etc. Cobots, which are collaborative robots, work with humans to enhance productivity. Articulated robot arms and automated guided vehicles reduce human errors significantly and provide a safer environment for the warehouse staff. Drones for WMS Organisations are now keener to implement drones in their warehouse management. Drones are primarily used in different events, corporate activities, and defense purposes. However, their high efficiency, speed, and uninterrupted flow can significantly improve the movement of the materials in the warehouses. Many organisations are experimenting with deliveries with drones. It will not be a surprise to see drones lifting materials from storage racks and issuing them to the shop floor or unloading raw materials from vehicles. Using Smart Gadgets in WMS Renaissance in technology from industry 1.0 to industry 4.0 showed us drastic changes in every facet. We saw the shift of store management from pen and paper to computerised systems and laptops. It is the era of intelligent and handy devices. In the Internet-everywhere environment, WMS can be accessed from anywhere, and you only need a smart device and Internet connectivity. The advanced WMS can operate on any device and operating system. You can scan barcodes and RFID, access the warehouse management system, track inventory, invoice shipping notifications, etc. This makes the system handy, increases productivity, and optimises the man force. Augmented Reality Wearables The popularity of using AR gadgets in warehouse management increases daily. These are innovative gadgets packed with ultra-modern features like scanning, WMS access, auto-counting, etc. These devices can help you identify the exact item code of the component and backtrack the order number, WBS element, and even the customer order number. They remove the dependency on human memory, and thus, will reach the maximum accuracy level in the future. Smart Automated Vehicles and Forklifts Auto-guided vehicles are the best gift of technology to the warehouse management system in logistics. Due to its high buying and maintenance costs, you cannot find these in most organisations. However, the future smart warehouses will be managed by these machines. Software programming enables these machines to operate automatically without any assistance. This will help organisations to reduce operational costs and increase efficiency drastically. On-Demand Warehousing Solution This is another prospect that will be a popular option in the future. It will offer flexibility to the organisations to manage pick situations demands. The additional capacity of the rented warehouse on an as-on-when-required basis will help small businesses spend less on costs. Big Data and Machine Learning Big data and ML are not new terms but the latest introduction to the warehouse management system. For large organisations, it is vital to analyse all the data points related to warehousing and populate them with decision-making templates. Warehouses store a massive amount of data; therefore, in the future, using Machine Learning and Big data analytics will be essential.    You can also read about the top warehousing companies here. Conclusion: Does your eCommerce business need a Warehouse Management System (WMS)? Currently, the business processes are getting highly complex. There are several factors like same-day or next-day delivery, changes in customer demand and expectations, challenges in the lead time, higher competition in the market, etc. To mitigate the ever-changing requirements and stay ahead of your competitors, you need to operate your warehouse efficiently. A warehouse management system can do it for you. If you are planning to set up your warehouse system or thinking of expanding your eCommerce business, it is the correct time to introduce an intelligent and next-gen WMS. It is an investment to increase productivity and take your warehouse operations to the next level. Knowing about WMS and its necessity in today's business environment. You must have thoughts, to access such warehouses to boost your business. You have an option of outsourcing such warehouse plus fulfillment centers run by experts without owning and spending millions on the system. WareIQ provides fulfillment services to amplify your business which not only gives you the benefits of the Warehouse Management System in logistics, but a lot more. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next-day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfillment centers, micro-fulfillment centers & urban dark stores near their customers Access to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possible Easy integration across multiple online platforms & marketplaces enhancing multi-channel selling Horizontal marketplaces: Flipkart, Amazon, etc. Vertical marketplaces: Nykaa, Myntra, etc. D2C platforms: Shopify, Magento, WooCommerce, etc. Social commerce platforms: Bikayi Access to a superior centralised tech platform for eCommerce operations ML-based prediction engine for efficient warehouse network design & smart inventory placement Centralised platform for core fulfillment & shipping operations Post-shipping apps for delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels.  WareIQ’s next-day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing, and data-driven decision-making. WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR report processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. [signup] Suggested Read: Warehouse Management Vs Inventory Management: Which Software is Better? Warehouse Management System (WMS) FAQs

April 30, 2022
What is Warehouse Management? Definition, Benefits, Strategies and Latest Trends in 2025

What is Warehouse Management? Definition, Benefits, Strategies and Latest Trends in 2025

Proper warehouse management is essential for the success of any business. If you sell goods, you must have a place to store them. These places are often fulfillment centers, distribution centers, or warehouses. You can purchase land and buy equipment, but many things need to be considered when managing inventory. You can have the most modern and state-of-the-art warehouse but if it's not operating efficiently, you will have lower profit margins, high operational logistics costs, ineffective leadership, and damaged customer relationships. What is Warehouse Management? Source Warehouse management spans all aspects of operation, from accounting to inventory. It includes receiving and supervising employees, as well as planning supplies and monitoring the flow of products through the warehouse. It is a very important aspect of eCommerce because much of the process of order fulfillment begins at a warehouse so efficient warehouse management is needed so that orders are picked, packed, and shipped efficiently and in the least amount of time possible. [contactus_uth] What are the Benefits of Warehouse Management? A warehouse is an invisible process that works to ensure that the customer gets their product on time. The operations are central to the success of any warehouse, and good management helps these processes run efficiently. Some benefits of warehouse management are: Optimized Space and Lower Operating Expenses  Warehouse management seeks to make the most efficient use of available space by determining the area size and analysing the floor plans. This determines where and how products can be stored, such as placing in-demand products and products close to expiry at the front, the rate at which products can be located, either to be shipped or packaged and results in the saving of time, resources and money. Inventory Visibility  Warehouse Management can also give insights into inventory levels for various products in multiple categories. This helps retailers to accurately forecast demand and avoid over-stocking or shortages. Effective Labor   Warehouse management enables maximum utilization of labour by intelligently assigning them to a specific warehouse based on their proximity, their availability, and their skills to ensure the highest levels of productivity and the complete mitigation of underutilization. This, in turn, saves on time, and money spent on labour and removes any chance of manual delays.  Traceable Materials  Warehouse management enables the traceability of inventory because products are grouped in sensible ways such as by demand, perishability or expiry date. All products have serial numbers which makes them easily identifiable in any given situation. Optimized Supply Chain  Warehouse management is designed to optimize existing processes within a warehouse, which can also extend to the external supply chain. WMS systems can troubleshoot any activity that is causing a delay and suggest methods to streamline those activities to mitigate such a delay in the future. It can also remove any unproductive activities from the process to ensure maximum productivity is being achieved. This helps in saving resources, time, effort, and money. What are the Various Strategies of Warehouse Management? By optimizing warehouse operations and managing inventory, warehouses provide the best services for clients. Warehouses that have poor strategy will have increased costs and wasted capacity. Quality warehouse management companies use a client-focused approach to their warehousing strategies. They provide logistics services to clients to support customer demand. The top expense of any operation is the labour required. Nevertheless, 3,000 hours each year are wasted due to inefficient planning of operations. If you're searching for strategies to increase your profits and lower costs, look at these nine ideas to improve your earnings. Use Sales Forecasts It's essential to use both past and future data when strategizing your warehousing. By thinking about how many orders will come in, you'll be able to plan accordingly. Planning for the future ensures that none of your employees is overworked. Having this strategy in place every quarter will help you foresee any potential problems and take appropriate measures to fix them. These strategies are especially useful in warehouses with heavy volumes, as they provide needed relief to your employees. Determine your expenses  It is possible to increase your revenue by reducing expenses. For example, there's a lull in dock activity during the last week of every month. It is an opportunity to reduce costs in labor and equipment. Still, without first figuring out where you need to invest money in your warehousing strategy, you won't be able to plan appropriately. Automate your processes Warehouses can use automation to increase efficiency by providing support for operations and analytics. The warehouse's needs determine the type of automation used. Companies often make life more difficult by using inefficient or ineffective technology. Make sure the software you choose is tailored to your day-to-day operations. Too much technology can be a distraction to your employees. Find that balance between state-of-the-art features and simplicity so employees can quickly transition as they would with an old system. Choose the right location When seeking a warehouse, find one where the talent is plentiful. Choose a location for your warehouse that provides access to the best possible employees for your specific needs. A competitive employer will find a place in reasonable proximity to its workforce when feasible, rather than being directly in the area of other businesses that might take away your talent. They also try to find a location within reasonable commute distance for their staff. Get rid of old inventory Unless you're selling long-term storage space, inventory that doesn't sell costs you money. Space is the primary factor in any warehouse and must be treated as valuable. Clear out your unused merchandise. When you find that the items you carry don't sell or only sell marginally, you could be stuck with them longer than desired. Getting rid of these products and saving space is an opportunity to make some profit. Choose centralized Warehouses Warehousing is a popular strategy in warehouse management, against the traditional use of smaller, regional warehouses. Companies see the benefits of a larger facility that serves the same customer base due to increased savings. Warehousing is cheaper, which means that the logistics of processing orders will also be more affordable. Warehouses require transportation, staffing, security, climate control, and lighting, which often leads to increased costs when there are many facilities. A centralized warehouse can take care of this issue.  Outsource To third parties Some companies outsource their warehouse management requirements to a lower-cost alternative that doesn't sacrifice quality to optimize profitability. Logistics providers understand warehousing well and can provide relevant information to help companies to improve quality while reducing costs. Read the blog on eCommerce Logistics Companies to know the benefits of partnering with them. Public warehouses are attractive to companies that outsource their emergency or temporary storage needs.  You can also see many other services related to logistics, such as shipping aggregators, freight transport, rail and receiving, container delivery, and import-export logistics. These work well for clients who want full-service logistics for an as-needed basis at an affordable rate. Use Electronic Monitoring Systems Warehouses are no longer reliant on security patrols to maintain safety. While security staff still poses a vital function, warehouses employ technological solutions to reduce the risk of theft.  Electronic monitoring systems work well for theft prevention, but they can also monitor against other threats like fire and water damage. Using this system is a great way to reduce your chances of being harmed by an internal or external source.  This type of warehouse system may deter theft and reduce the number of people who need access to your items. For customers, it means product safety and low prices. With a reduced amount of labor, businesses can keep costs down. De-clutter Warehouse Operations When carrying out warehousing tasks, it is essential to carry out Lean Operations. By optimizing the resources at our disposal and taking into consideration a "just-in-time" approach, we reduce the time it takes to undertake these tasks: Handling inventory Better coordination for effective supply chain management Looking for stock Loading and unloading onto transport Differences Between Inventory Management vs Warehouse Management [table id=14 /] What Facilities Should You Look for in a Warehouse Management Company? No. of SKUs ( stock keeping unit) Before you begin, you should assess your storage needs. Then, identify the SKU you want it under to track inventory in a warehouse. You can also think about the amount of space needed and what will be compatible or not. You might want to invest in durable shelving made of metal, as it will be a cheaper alternative. Warehouses will charge you based on the SKU, and this can get expensive if you have too many cereal items with different expiration dates. Warehouses often require a minimum monthly order from these companies. However, these minimum monthly orders are affordable if the inventory is readily available or rotated quickly. On the other hand, standalone warehouses are cheap for slow-turnover items with high SKUs. Product Type Warehouses usually don't have cold storage facilities. The product you sell will help determine which warehouse management company is best for your business. If a company requires space to store dairy products, it needs a warehouse that offers temperature-controlled storage. Customers will find glassware, manufactured goods, or perishable items like eggs or seafood in this store. Third-party fulfillment services provide workstations where value-added services are provided. Consider what storage option is perfect for your business. If you sell products that require strict safety protocols, you would be better suited to choose a warehousing management solution with trained staff, fire alarms, sprinklers, and adequate risk-reduction measures. Season Finding a warehouse management solution for your business needs is essential. Public warehouses are ideal because they offer short-term storage and competitive rates. It would be best to think about the time it takes them to deliver and their prices. Public warehouses are worth considering when looking to carry and store seasonal goods. If a company has a high demand, it might run out of space when they have periods of low sales. For example, if a store's turnover is generally slow in the winter season, it may find that stocking shelves during that time is difficult. Warehouse management providers solve this problem by providing automated material handling and storage automation solutions, such as forklifts for factories and warehouses. Contract warehouses offer reliable and long-term storage solutions, while short-term storage facilities are suitable for short-term needs. Under the contract warehouse, customers agree to the contract period before they're paid. Factors like the maintenance fees of inventory equipment affect their charges. Location Your warehouse location will affect the efficiency of your business. Location can impact how quickly you can deliver goods to consumers and where they are stored at your warehouse. The closer you are to customer hubs, the quicker the product can be provided. Warehouse management companies with facilities close to a transport hub make fulfilling orders much more effective than those in big cities. Your warehouse's location impacts your ability to meet the customer's expectations, improve profitability, and get products to customers faster.; however, this can come with a higher price if storage facilities are in rural areas. Read our blog on the 10 best eCommerce shipping companies in India to understand how you can outsource your shipping requirements. Here are some points to keep in mind: A small business should consider locating a warehouse close to their market or office. Companies with large market bases should look for warehouses that can hold specific quantities. Software & Technology Invest in a warehouse management facility and warehouse management software to handle inventory and shipments better. With these tools, you can enhance customer satisfaction by ensuring that the product matches their order, so they are satisfied with what they receive. Warehousing software is a vital tool for those who need to track and analyze each order. These programs are operated by intelligent robots, which automatically manage the order fulfillment process. The automatic routing of customer orders to your warehouse allows you to track order fulfillment more efficiently. You can also use automation to collect purchase orders and manage inventory items. Top 10 Trends of Warehouse Management in 2025 As we bid farewell to 2021, it's also time to gear up for the future with new ideas and strategies to make your business more productive. Warehouse management plays a crucial part in the supply chains of any eCommerce company. But sellers often overlook staying up-to-date with eCommerce warehousing trends to help them stay ahead of the game. As customers demand quicker turnaround times and pressure on eCommerce companies builds, warehouses will need to devise new ways of getting products picked, packaged, and shipped to meet the demands. The best way to increase warehouse efficiency is by implementing warehouse management technology. Warehouse management technologies will likely grow exponentially by 2025, with some reaching full maturities, such as warehouse automation and post-purchase processing. Automation (AI & Machine Learning) As the warehousing industry in India enters a period of consolidation, it will likely begin to integrate more advanced technologies such as robotics, machine learning, and artificial intelligence by 2025.  Although, in labor-intensive countries like India, the implementation of robotics can be difficult due to specific tasks only being performed by humans. Warehouse management companies are trying to incorporate machine learning and AI into the back-end. Technologies such as autonomous vehicles will cause the cost of warehouse operations to decline, causing this industry to almost double in size over the next two years. What are some ways in which we can plan for the future? The advancement of automation technologies has led to better self-driving with autonomous vehicles and inventory systems that reduce human labor. Receive instant updates about warehouse and shipping operations with the help of AI-powered inspections, packaging, and processes through business intelligence. The adoption of warehousing solutions that predict demand will take off in the following year. Robots Robotics is becoming integrated into the labor market, and this trend is projected to continue. Robotics help companies increase productivity while also tackling warehouse management and supply chain challenges.  Robots will become standard in warehouse management operations in the future. We will move away from fixed automation systems to miniature mobile robots. 5G connectivity and machine vision systems will also play increasingly important roles. Cloud-based Technologies Cloud technologies are advancing, and adoption is increasing. Current advances in hybrid cloud solutions, where components of a project reduce time and resources, will allow companies to implement better strategies. Cloud computing motivates many people to move to the cloud because it reduces costs and increases efficiency. It also helps eliminate data silos that predominate in many warehouse management systems and supply chains. Internet of Things (IoT) The Internet of Things has touched every industry and affected how we see the world. It stretches across interconnected devices, including cars, factory machines, appliances, TVs, and phones. Through IoT, your warehouse management processes can run simultaneously and increase efficiency. It can automatically complete tasks while you remotely access data and lowers costs since you have more efficient resource management. Sustainable Warehousing Many business owners will be looking for sustainable business methods in the coming year. It will change warehousing management techniques in 2025.  Ways you can opt for Sustainable Warehousing: Invest in Energy-efficient Equipment You can make your warehouse environment more environmentally friendly with eco-friendly lighting. While the initial cost will be higher, they will last longer and save on energy costs in the long run. Use Less Packaging Packaging made from biodegradable materials weighs less and costs less to ship. Switch from traditional packing materials to biodegradable products. Packing materials made from synthetic plastics and biodegradable materials take a long time to break down. Biodegradable materials can only last for months or years, while synthetics take hundreds of years to break down. Making your packing more efficient may mean you need less of it. Biodegradable materials are also compostable and can reduce waste and carbon footprint. Insulate your Warehouse Properly Ensure that your warehouse is insulated to keep air-conditioned air within the building. Insufficient insulation in your warehouse building results in higher energy costs, increased thermal output, and wasted resources. Water in a warehouse management system leads to wear and tear and increased energy bills. Block-Chain Technology Many stakeholders such as manufacturers, suppliers, customers, auditors and warehouse managers, are involved in warehouse management efficiency. Warehouses are looking for technology to manage transactions, assets, and data. The use of blockchain in coming years will be revolutionary for warehouses. Big Data Data is a significant point in supplying products and warehouse management since it helps with these tasks. Businesses rely on data for more reasons, and companies use more data-driven technologies now than ever before. It also allows for data products that can be used in data visualization to understand trends better. Good access to data and predictive analytics enables cross-disciplinary applications, which are instrumental in warehouse management. Proficient Last-mile Deliveries With the growth in eCommerce, last-mile deliveries are becoming more critical for the industry. In 2019, global eCommerce sales grew by nearly 21.5%. In the next few years, many business owners will strive to provide a shopping experience reminiscent of Amazon by working out logistics in a way that would make deliveries close to same-day. When customers place orders, the company will need to invest in more facilities and distribution methods. What are the last-mile facilities in supply chain management? The Right Warehouse Location Warehouses close to major highways and bridges reduce the cost of delivering to destinations. Building Quality Retailers should always look for properties that have features that allow for efficient utilization, given the demand for high volumes associated with today's retail environment. The archaic nature of traditional warehouses has led to structural limitations, and stretching the electrical capabilities of these warehouses is becoming more and more difficult. Substantial Ceiling Heights For warehouses, it's essential to optimize a high ceiling to set up modern racking systems. Every warehouse should consider the way goods flow in and out. Cross-dock Capabilities The food and beverage industry faces one of the biggest challenges regarding last-mile transport. A company may optimize its facilities' capabilities by cross-docking groceries to solve this problem. Cross-docking is receiving goods at one door and then sending them out through another. Perishable items can be delivered to your shoppers more efficiently, and food does not need to be stored. Sustainable Warehousing Electric charging stations will be essential parts of future sustainable infrastructure for that last mile. The gas costs combined with labor for the final stretch of delivery can add up to over 30% of a delivery's price, so cutting those expenses and providing an environmentally friendly solution could give you a winning advantage. Design & Layout One of the driving factors of warehouse management is its design and layout. It can be challenging to make changes to an existing warehouse, but you'll be glad you made an effort once you see improved productivity and lower accident rates. When you lack space for your automated systems, one solution is to use your vertical space. Technology solutions such as mechanical shelving and big data are also available to help more intelligent warehouse layouts. You can use analytics to monitor where your employees spend the most time so that you can create more efficient workflows. Introduction of Drones With technology moving on, these drones are starting to find their niche in warehouses. They're affordable and easy to use and can quickly map large areas. Drone technology has also been used in shipping and delivery, where it's used for scanning barcodes and RFID tags, inspecting goods in the warehouse, and taking items to an airport. Retail companies will likely use drones for warehouse management by 2025. Amazon has already had success in their warehouses by using them, and now smaller companies will probably start to do the same. For example: Humans are being phased out of the workforce. As technology advances, positions are no longer available to humans, and they are being replaced with machines that can do tasks much faster. A drone equipped with a special camera with optical sensors can scan barcodes at 100% accuracy even when the items are 10 meters away. Suggested Read: Warehouse Management Vs Inventory Management Conclusion: Does Your Business Need Warehouse Management? Warehouses have been around for years and have helped businesses with different storage needs. Today, warehouses are not simply storage facilities because they have changed to be more innovative. Companies that rely on warehouse management can expect increased productivity, satisfaction, and accurate demand forecasting. Some warehouse management companies offer additional services that optimize the supply. Warehouse management must monitor your inventory with many companies providing this service, renting out space, and providing other essential information such as the amount of heat produced or stock being moved. WareIQ can help with all your warehouse management requirements. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfilment centres, micro-fulfillment centers & urban dark stores near their customers Access to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possible Easy integration across multiple online platforms & marketplaces enhancing multi-channel selling Horizontal marketplaces: Flipkart, Amazon etc. Vertical marketplaces: Nykaa, Myntra etc. D2C platforms: Shopify, Magento, WooCommerce etc. Social commerce platforms: Bikayi Access to a superior centralised tech platform for eCommerce operations ML-based prediction engine for efficient warehouse network design & smart warehouse inventory placement Centralised platform for core fulfilment & shipping operations Post-shipping apps for delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfilment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with ecommerce shipping partners, strategically placed warehouses, economies of scale and scope in warehousing and data-driven decision making. WareIQ Fulfillment Centers WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. [signup] Warehouse Management FAQs (Frequently Asked Questions)

April 29, 2022
10 Types Of Warehouses in eCommerce & How Does it Work in 2025

10 Types Of Warehouses in eCommerce & How Does it Work in 2025

What comes to your mind when you think of  “eCommerce Warehousing”? Typically, we think of a huge shed-like space with an unsightly number of racks and shelves, goods and containers strewn all over, amidst a monotonous surrounding.  It is important to note that there are many types of warehouses and it may be surprising that typical modern-day eCommerce warehouses are the complete opposite. They are clean, brightly lit, well-organized, and filled with an unending buzz of frenetic activity. People, parcels, technology, monitors, goods carriers, and mini-cranes, the list is endless. Read further to get a better understanding of the different types of warehouses in eCommerce and which would be the right fit for your business. What are Warehouses? The concept of warehousing: The formal description of eCommerce warehouses is that they are huge structures such as a building or shed that houses goods and cargo (both raw materials and finished goods) till they are ready to be shipped further.   Naturally, the sizes, locations, infrastructure, and scale of warehouses vary greatly depending on what they are used for, the position they occupy in the fulfillment network, and so on. Several elements impact the selection of the type of warehouse you should choose, such as the industry it serves, what its ecosystem looks like, and locational and definitive business requirements. Importantly, all this directly impacts achieving customer satisfaction, which is the ultimate metric of a successful business. The eCommerce warehouse is an important cog in the order fulfillment wheel – it not only stores inventory but also forms a close working relationship between online firms, its distribution model, and the final customer. A strong network of eCommerce warehouses is critical-to-success for eCommerce firms.  Third-Party (3PL) logistics, warehousing, and fulfillment centers: 3PL fulfillment companies conduct a host of services for their clients. Typical examples are inventory storage, order receipt, processing, dispatch, and cross-docking.  Given the range of services and scale that 3PLs offer as a one-stop shop, it enables the supply chain to function more efficiently, faster, and more economically. As a result, its clients can focus on running the core elements of its business, i.e., sales, consumers, logistics innovations, profitability (etc.) without any extra hassle. When an online retailer outsources its warehousing and eCommerce fulfillment requirements to a 3PL, its capabilities - across locations, inventory, trained employees, optimized cost structures and compliance - help firms achieve seamless and efficient warehouse logistics. In addition, your 3PL’s warehousing capabilities should keep pace with your expanding needs as you grow. Additionally, you can learn about different types of warehouses here. [contactus_gynoveda] What Factors Do You Need to Keep in Mind While Choosing a Warehouse in 2025? When contemplating starting a new eCommerce business, or a business of any sort that involves the movement of materials and goods, your warehouses and fulfillment centers become an invaluable element for success. Not only must they synergize with your business strategy, but must also tick all the checkboxes that matter.  Listed below are some leading factors that you must consider while selecting between the types of warehouses for your business: Efficiency in design and layout Firstly, the design and layout of your eCommerce warehouse must be determined by your requirements, i.e., the type of goods, the storage guidelines, government rules (etc.). You shouldn’t put the cart before the horse.  Not all eCommerce warehouses are built equal. For example, if an old building with limited column spacing or ceiling height would affect that type of cargo and your eCommerce warehouse operations, then other types of warehouses would be better suited for you.  Select the one's where the design has been developed, keeping in mind the flow of raw materials into eCommerce warehouses and, likewise, the flow of goods outwards.  These warehouses are hubs of activity. People, machines, technological equipment, electrical connections, various controls, and many other components are all working in close proximity. As you would imagine, many of these elements could create a dangerous scenario for life and property if not managed properly. Therefore, make sure to check for an ergonomically designed layout that would ensure a seamless and efficient union of man and machine. For example, rough surfaces or sharp edges of shelves must be eliminated.  Availability of workforce By extension of the point above, they employ hundreds of workers who work around the clock. Selecting a warehouse because they are cheaper and whose locations are mostly in remote areas may affect your ability to attract workers or cause them difficulty in their daily commute, and safety, even if you plan on moving your existing workforce from one location to another.  Therefore, selecting a location that is easily accessible by your workforce is generally a key criterion for choosing the types of warehouses. Locations with a dense population and the presence of convenient transportation hubs generally score highly while making this selection, especially the latter. Even if commuting takes some time, at least it is made convenient. If your requirements have seasonal variations, then living quarters, canteens, banks, grocery supplies (etc.) to facilitate your workforce also become important. Operational intensity The intensity of operations and which way this intensity will go in the future is another important consideration. If your operations are light enough, then you can select the type of warehouses accordingly. Other variables such as outdoor facilities for storage, noise pollution caused, emissions (etc.) form a part of the consideration set when choosing a location(s) for your eCommerce warehouses. Accessibility to transportation Unless warehouses for eCommerce are closely connected with convenient modes of transport, it would be self-defeating. Remember that transportation makes up about 20-25% of your operating cost and directly affects the delivery times you can achieve. For goods that are fragile or need temperature-controlled transportation, poor accessibility would mean additional difficulties.  Whether air, water, rail, or land - whatever your needs are, it is important that the location of your warehouse is easily accessible.  For example, if you deal in heavy cargo across international borders and use ships to carry your goods, you would likely need a strong road or rail network to complete the cargo movement (both inward and outward).  The capability of handling material Again, the type of products, cargo, and materials that make up your business will always be the determining factor in the types of warehouses you select.  If fragile items (e.g., art, crockery, glass, and jewelry) are your main line of business, then ground floor locations are ideal, or at least not on a much higher level. In such cases, the layout of eCommerce warehouses should be spread out horizontally versus one with several floors. If hazardous chemicals or materials form part of your cargo, then you will almost certainly have to use locations that are peripheral to the city. Most governments also have guidelines that regulate the layout and location of different types of warehouses, depending on the inventory. Equipment, cross-docks, and staging facilities are critical in material handling, and you must consider this while choosing a warehouse. Available data makes it painfully evident that a significant percentage of breakages and product damage occurs during loading and unloading procedures.  If trucks are your first mode of transport, then eCommerce warehouses must have depressed docks, which may need to be internal, and so on. Similarly, one cannot operate a vast distribution network unless the warehouses have cross-docks.  Availability of space Well, this is probably the most obvious requirement of all. Unless eCommerce warehouses are sized to house your entire inventory in all its various shapes and sizes, they haven't fulfilled their most basic requirement. For companies starting or expecting to grow rapidly in the future, the capability of different warehouses for expansion is important. The network maintained by your 3PL is also important – you wouldn't want to select a 3PL that doesn't operate fulfillment centers or warehouses in locations you expect to grow into. Ability to comply with regulations Just like all aspects of business operations have to comply with their applicable rules and regulations, so do eCommerce warehouses. Before selection, you must be aware of the applicable laws in your location and ensure that your warehouse provider adheres to them. For example, you cannot store certain types of goods (e.g., hazardous materials) in certain areas. Or, you may need to hire local workers for your eCommerce warehouses. Proximity to customers Naturally, proximity to your end customers is an important consideration. If your target group is located around a specific region, using warehouses for eCommerce activities in that area itself will offer a strategic advantage. You can fulfill their needs quickly, better understand their requirements, and get accustomed to their purchasing habits. What Advantages Do Warehouses Offer? There are many advantages of using a capable and well-organized network of eCommerce warehouses. Let's look at some important ones: Operational efficiency When you outsource your warehousing requirements to a 3PL firm, you are aware of the capabilities of their services. The relationship is based on a well-defined SLA with clearly defined expectations from both parties. Therefore, once up and running, your partnership enables you to achieve an efficient operation quickly due to: Expertise Flexibility Measurability  The combined impact of all these factors results in a significant saving of time and resources. Inventory management Your warehouse management service's driving objective (WMS) is to keep your customers happy. That means delivering their parcels safely, on time, and at competitive rates. Additionally, customers want to be kept in the loop about the progress of their parcels. Therefore, WMS ensures real-time information on parcels in transit and identifies them with a host of trackers such as SKU, batch details, serial numbers, etc.  Data about the movement of goods, to and from eCommerce warehouses, is updated in real-time. The combined effect of all this is that your entire inventory management, including re-order levels, reverse logistics, current and developing trends, and projected requirements, is taken care of. This is very important for retail warehouse since it helps them understand consumer behavior, plan for future requirements, expand their range of products, etc. Flexibility If you decided to retain your warehousing and storage as an in-house function, you would potentially be limited by your ability to handle extraordinary circumstances or obstacles. For example, if an emergency were to arise or a larger-than-anticipated order was received, you would need to dedicate additional resources to handle such a situation. Possibly, workers wouldn't be trained or have enough time to handle the situation successfully. Because of this, partnering with a 3PL for your warehousing needs would set you up to benefit from their capabilities. 3PLs are vast global organizations that deal with a wide range of clients, ecosystems, and geographies. Due to their scale and experience, they are supremely equipped to handle a vast array of functions and annul potential problems.  Risk mitigation As you would've guessed by now, running operations of eCommerce warehouses isn't an easy task by any means. It requires significant investment, expertise, a large workforce, the latest technological systems, employee recruitment and training, and tax and legal compliance. While the scale of business offers profit and acquires market share, it also brings risk, i.e., the costs of failure such as being upstaged by competition, being made obsolete by innovation, or just being forced out by better, more efficient players and also a potential increase in logistical costs. Such significant expenses, including CapEx, when locked by order fulfillment and warehouse service activities, create inefficiencies that will show up in your business results sooner than later. However, using efficient warehouse services achieves the exact opposite, i.e., it takes away the risk of investing and maintaining your network of eCommerce warehouses and allows you to concentrate on managing the core business. Over a period of time, this improves profitability and productivity. Therefore, make sure you analyze your needs accurately and select the right 3PL accordingly.  Modern technological systems Just like the very birth and growth of modern-day eCommerce behemoths is a result of progressing technology, so are the benefits offered by 3PL warehousing services.  Fully integrated systems seamlessly connect with online platforms and stores. Some examples are given below:  Order management (receipt, processing, delivery) Order-delivery services Comprehensive distribution services Order tracking Inventory management in real-time  Automated re-order levels Detailed and automated reports  What are the 10 Types of Warehouses to Look for in 2025? Let’s look at the top ten types of warehouses. While each has its pros and cons, your business requirements determine which one would help you run your operations in the best possible way. Private Warehouse  Source As the name suggests, they are types of warehouses that are owned and operated by manufacturers, traders, and resellers and are exclusively used for their supply-chain management and activities. As the costs and fees of availing the benefits of private eCommerce warehouses can be high, many warehousing companies prefer to use (or combine them with) the services of public warehouses.  Maintenance costs include fixed costs and variables. CapEx, insurance, taxes, interest, etc. make up fixed costs, whereas outgoing monthly costs like operating/maintenance are variable. Firms typically use private eCommerce warehouses for: Building a competitive advantage over the competition  Servicing a geographic area with an elaborate network of warehouses and fulfillment centers Matching company scale/ growth requirements with the warehouse’s services and capabilities Typical examples of private eCommerce warehouses include: Producers (e.g., farmers) construct and manage eCommerce warehouses near their farmlands Wholesalers/ Retailers construct eCommerce warehouses close to their distribution and selling centers, or production units Retailers take eCommerce warehouses exclusively on rent Wholesalers lease or own eCommerce warehouses exclusively  Public Warehouse Source Public warehouses are types of warehouses that enable their customers to achieve a high degree of freedom of operations in managing their supply-chain network. Since private eCommerce warehouses may not be affordable, this option is always viable for such firms. Naturally, renting or buying is often unaffordable for eCommerce startups. Therefore, utilizing public eCommerce warehouses on a short-term or long-term lease, usually available by monthly agreement, becomes a viable option for such small businesses. Agreements could be based on cost-per-square-foot or even on a cost-per-pallet.  Generally, warehouses for eCommerce will also offer services like building maintenance, organizing transportation, inventory management, and employing workers to manage operations etc. It works out well since all costs are apportioned across several clients, and you pay a proportionate amount. Distribution Center Source Distribution centers are types of warehouses that have become a critical cog in the eCommerce supply-chain wheel. Due to the increased usage of technology and electronic tools, these distribution centers can now provide reliable and efficient transportation for cargo. Typically, such distribution centers have a much larger storage capacity than just a warehouse and provide prompt transportation facilities for huge volumes of cargo, on short notice. These centers are also located close to transportation hubs to optimize the speed of receipt and delivery. An ideal example is the distribution of highly perishable products, e.g., fresh vegetables and fruits. The receipt, sorting, and packing/ repacking of such products are done within a working day to minimize wastage.  Cold Storage Source Understanding the type of storage this type of warehouse provides is pretty transparent.  Cold-storage facilities are types of warehouses that are critical for temperature-sensitive products such as medicines, pharmaceutical products, fresh produce, ice creams, plants, meat products, etc. Perhaps, the importance of such a facility was recently reinforced when the Covid-19 vaccines had to be transported and stored under stringent temperature control measures. This goes a long way in ensuring the projected shelf-life for these goods.  Pick, Pack & Ship Warehouse  Source When eCommerce warehouses receive an order – whether from a physical store or an online portal – the process followed thereafter is to “pick, pack, and ship” the product. And, hence these are types of warehouses that are named after that process. They use modern gadgets like scanners and workers/robots to pick the products, required to fulfill their list. These "picked" products are then packed, tagged, and loaded into containers and shipped to their destinations.  Read our blog on shipping aggregators to understand how you can outsource your shipping and distribution requirements to dedicated companies. Smart Warehouse  Source Smart warehouses are types of warehouses that have increased in importance in the Modern Age, where everything is run by rapid advances in technology. The very existence of new business models such as eCommerce and the "App Economy" gives us daily reminders of this sensation. Additionally, tools such as data analytics, Artificial Intelligence, and Machine Learning provide the backbone for running these modern, tech-driven ecosystems.  Smart eCommerce warehouses are no different. When businesses seek to eliminate the costs of human error, smart eCommerce warehouses become a go-to option. Extensive use of drones and robots is deployed in warehouse operations, and manual intervention or usage is minimized or eliminated. However, this model does have some limitations and has stringent requirements for successful operation - the entire warehousing procedure needs to be redesigned so that the technology can be incorporated. This requires technical know-how, and upfront investment and necessitates training/retraining of warehouse employees. Breakeven and profitability may take several years. Bonded Warehouse Source Bonded warehouses are types of warehouses that can be owned by both private and government agencies and are a mechanism utilized by the government to ensure that the importers/exporters of these goods pay their due taxes on time. Without paying their taxes or duties (e.g., import duty, excise), an importer cannot even open their goods, let alone claim them.  As you can imagine, bonded eCommerce warehouses have a crucial role to play in cross-border trade, and those eCommerce firms that supply orders across international borders are well-served by them. This also works well for importers that can stock their goods here until they find a buyer for these products. Since firms do not have to pay any duty till they want their goods released, it works efficiently. For private agencies to operate bonded eCommerce warehouses, they need to get the required licenses as issued by the government. Climate-Controlled Warehouse  Source If you think that simply a temperature-controlled environment for your goods isn't enough, then climate-controlled eCommerce warehouses offer the next level of protection during storage. They are types of warehouses that control the temperature and humidity under which your goods are stored. For many products, the correct humidity levels prevent mold or mildew formation, which harms fabric, wood products, paintings, and artifacts, amongst many others. Both humidity and temperature are controlled to a stringent standard, and the variances allowed are minimal. This ensures a consistent atmosphere. Cleanliness and overall facility upkeep are important features that climate-controlled eCommerce warehouses must be particularly mindful of. Government-Owned Warehouse  Source They are types of warehouses that the government, whether State, Central, or an affiliated agency, owns and manages. They are available for use by private eCommerce firms and often present an economical option for startups or businesses that are growing while effectively offering the same services. Importantly, they offer peace of mind since the government manages them. The Central Warehousing Corporation of India is a renowned example. Cooperative Warehouse Source Cooperative Warehouses are one such type that are owned and managed by cooperative societies. They tend to be non-profit since their objective is to promote members of the cooperative, who can use these warehouse services at reasonable rates. Milk, winery, and farmer cooperatives are good examples. eCommerce firms that operate within their purview can take advantage of such types of warehouses. Conclusion: Does Your Business Need a Warehouse? Well, as evidenced by the above article, you should be able to see the numerous benefits that a well-researched, efficiently managed, and elaborate network of eCommerce warehouses brings to your eCommerce business.  While there may be cases of companies (e.g., a fledgling startup) that may make do with an in-house option (e.g., garage, basement) in the initial stages, growing companies will almost always opt for type of warehouse that suits their requirement and adds value to their business. WareIQ is a company that offers many ecommerce warehousing services that your business requires. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next-day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ fulfillment is a service where WareIQ offers you seamless management of your inventory and order fulfillment operations in WareIQ fulfillment centers, which are located near high-demand clusters. You store your product in our fulfillment center where we take utmost care of your inventory. WareIQ has customized offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. WareIQ's warehouses are present across the nation. We place inventory closest to your customer using a smart inventory placement system based on AI-ML algorithms. So when the customer places the order, the item is available in the closest fulfillment center to them and it is then delivered by same/next day via our shipping partners. [signup] Types of Warehouses FAQs (Frequently Asked Questions)

April 27, 2022