8 min read

Beginner’s Guide to Logistics Management & How to Improve It?

May 9, 2023 by Danish Khan - 8 min read

Logistics management has emerged as a crucial component of supply chain management in recent years. As timely delivery continues to be a crucial factor for businesses to gain a competitive edge, logistics automation has become an essential enabler. With new technologies, evolving consumer expectations, and global events, the logistics industry will undergo significant transformations in 2023. This article will explore the top five logistics management trends of 2023 and offer insights on how businesses can adjust to these changes.

logistics management

What is Logistics Management? 

Logistics management involves planning, implementing, storing and moving goods from the manufacturing or production facility to the delivery destination. The different stages of transportation that are managed by service providers include warehousing, inventory and order processing. It ensures businesses can meet the demands of their customers efficiently. With the growth of eCommerce and globalisation, logistics management has become a differentiator for most companies.

Logistics Management: How has it Changed the Supply Chain Industry?

Logistics management has significantly changed the industry’s performance by introducing new efficiencies and reducing costs. By optimising the supply chain, businesses can reduce their inventory levels, which helps them save money. It can also improve their delivery times, which enhances customer satisfaction. Logistics management has also enabled businesses to expand their reach by opening new markets and increasing their customer base. 

Top 5 Logistics Management Trends You Should Know About in 2023


In 2023, sustainability will continue to be a significant trend in logistics management. Businesses realise the importance of adopting sustainable practices to reduce environmental impact and meet consumer expectations. Sustainable logistics management involves reducing emissions, optimising transportation routes, and adopting green technologies. Businesses which follow sustainable practices are winning a competitive edge as consumers with environmental protection in mind prefer such providers. 


It will continue shaping the logistics industry in 2023. Automation helps to refine operations and minimise errors while advanced analytics tools can also help companies optimise their supply chain by providing real-time inventory levels, demand, and transportation data. Automated systems like robotics and artificial intelligence can optimise operations, reduce errors, and improve efficiency. Automation can help businesses manage inventory levels, reduce labour costs, and enhance supply chain visibility. Demand for fast and accurate delivery and automation will be higher in logistics management in 2023.

Omni-Channel Logistics

In 2023, businesses will continue adopting an omnichannel logistics management approach. It means that they will use multiple channels, such as online and offline, to reach their customers. This approach requires a flexible and agile supply chain that can adapt to changing consumer behaviour and preferences.

Last-Mile Delivery

In 2023, companies will focus on improving last-mile delivery to enhance customer satisfaction. It includes using new delivery methods, such as drones and autonomous vehicles, and optimising delivery routes to reduce delivery times.

Supply Chain Visibility

Visibility is increasingly essential in logistics management. In 2023, businesses will continue to invest in technologies that provide real-time data on the location and status of goods in transit.

offer same/next day delivey

Steps To Improve Logistics Management

 Businesses can optimise logistics management by implementing the following steps:

  1. Reduce logistics costs: Optimise transportation routes, manage inventory levels and adopt green technologies. You can also consider outsourcing logistics operations to a third-party provider to reduce overhead costs. 
  2. Use 3PL providers: Outsourcing logistics operations to a third-party provider can help reduce costs, improve efficiency, and enhance supply chain visibility. Logistics providers have the expertise and technology to optimise logistics operations, allowing you to focus on core business activities. 
  3. Ensure sustainability: adopting green technologies, optimising transportation routes, reducing emissions, and implementing a sustainable logistics strategy. You can also partner with logistics providers that prioritise sustainability and have the expertise to implement sustainable logistics practices. 
  4. Embrace technology: leverage automation, data analytics, and artificial intelligence to improve logistics management. These tools can help you streamline operations, reduce errors, and enhance visibility across the supply chain. 
  5. Improve communication: clear and timely communication with suppliers, customers, and logistics providers can help reduce delays, errors, and misunderstandings in logistics operations. You can also use collaboration tools and software to improve communication and collaboration across the supply chain. 
  6. Develop a contingency plan: unexpected disruptions can occur in logistics operations, such as natural disasters, labour strikes, or equipment failures. Developing a contingency plan can help you quickly respond to these situations and minimise the impact on your operations. 
  7. Enhance employee training: well-trained and skilled employees can help improve logistics management by reducing errors, improving efficiency, and ensuring compliance with regulations. Investing in employee training and development can positively impact your logistics operations. 
  8. Monitor performance: Regularly monitor and measure logistics performance by tracking metrics such as delivery times, inventory levels, and transportation costs to optimise your logistics operations continuously.

Top 5 Logistics Management Service Providers


Delhivery is one of the top logistic management service providers in India. They provide end-to-end logistics solutions, from warehousing to last-mile delivery. Their unique selling point (USP) is the technology-enabled platform that allows them to optimise routes, manage inventory, and track shipments in real-time. This results in faster deliveries and better visibility for customers. 


It’s a logistics aggregator that provides end-to-end logistics solutions for small and medium-sized businesses (SMBs) in India. Their USP is their technology-driven platform that connects SMBs with multiple courier partners and provides access to discounted shipping rates. They specialise in value-added services like shipping insurance, order tracking and bulk shipping. It offers technology-driven advantages to SMBs giving them the necessary inputs for advanced-level transportation of goods.


Has expertise in handling sensitive and high-value shipments like pharmaceuticals, electronics, and automotive parts. They have state-of-the-art facilities and adhere to international safety and security standards to ensure the safe and timely delivery of these shipments. 


DTDC is a logistics company that provides domestic and international courier services, freight forwarding, and supply chain solutions. Their USP is their focus on customer satisfaction, with a range of value-added services like cash-on-delivery, reverse logistics, and pickup requests. They also have a strong presence in rural areas, which enables them to reach even the most remote parts of India.


It’s a leading service provider for businesses in eCommerce, automotive and pharmaceuticals. They offer solutions tailor-made for the industry and improve customer satisfaction. They have a network of over 600 locations in India and offer services like warehousing, transportation, and value-added services like packaging and labelling.

Who Should Be The Logistics Provider for Your Business?

Choosing the right service provider in a crowded marketplace is a challenge. Some factors to consider are- 

  1. List requirements: Prior to speaking to service providers, a business has to define and list the requirements or needs. Begin with identifying shipping volume, delivery times, and budget.
  2. Look for experience: When choosing a logistics provider, look for a company with experience in your industry. Such providers will be aware of the challenges for some of the specific needs of your business, ensuring zero-errors. 
  3. Check for certifications: Logistics providers should have the necessary certifications to meet industry standards. It includes certifications for environmental sustainability, safety, and security 
  4. Tech tools in use: It is important to know the different types of technology tools and platforms the service provider will implement in managing your logistic needs. The year ahead will focus on advanced technology for a competitive edge. Evaluate the provider’s technology capabilities, such as real-time tracking and analytics tools.
  5. Consider customer service: Good customer service is essential in logistics management. Your choice should be the provider who is responsive and helpful in providing necessary service. 
  6. Evaluate cost-effectiveness: Cost is a critical factor in logistics management. When choosing a provider, care should be taken that the services are of top-quality despite the competitive pricing offered. 

Hence, logistics management is a critical aspect of supply chain management that will continue to evolve in 2023. Businesses prioritising sustainability, automation, last-mile delivery, omnichannel logistics, and blockchain technology will have a competitive advantage in the market. In 2023, companies need to adapt to the changing trends in logistics management to succeed in a rapidly evolving market. Partnering with the perfect service provider holds the key to such success.

Scale Your Business The Smart Way

Frequently Asked Questions(FAQs)

What is the difference between logistics and supply chain management?

While logistics management focuses on moving and storing goods and services, supply chain management involves coordinating and managing all activities involved in producing and delivering goods and services.

How does logistics management drive customer satisfaction?

Logistics management ensures customers receive their orders on time leading to highly satisfied customer service. By optimising the supply chain, businesses can improve delivery times, reduce errors, and provide better overall service to customers.

What are some challenges in logistics management?

Logistics management challenges include managing inventory levels, reducing transportation costs, and ensuring supply chain visibility.

How can technology help in logistics management?

Technology can help logistics management by automating processes, reducing errors, and enhancing supply chain visibility. With the help of technology, you can also get real-time inventory levels, demand, and transportation data.

May 9, 2023 by Danish Khan

7 min read

7 Steps to Refine Your Order Fulfillment Process

April 27, 2023 by Danish Khan - 7 min read

For any eCommerce business, one of the major goals is to keep its customers happy and coming back for more. A number of challenges can make it difficult for eCommerce businesses to achieve this goal. The biggest challenge is getting their orders right and delivering them on time. So, how to get your system to be smooth and efficient and in what ways can you improve it? Here are 7 best-working strategies which will help you enhance your order fulfillment process and keep the customers happy and loyal to your business. We also look at Fulfillment’s all-in-one solutions to manage eCommerce order processing challenges. 

order fulfillment

Understanding the Types of Order Fulfillment Process

There are four types of order fulfillment processes. 

1. In-House Fulfillment

In this type the employees of the company manage the entire order fulfillment process without any third party’s help. They handle the storing of goods, managing inventory and handling of products completely. This method is ideal for small startups and small businesses that do not have much volume and can handle the end-to-end control of the entire operations. This method gives you complete control over every step, but the risk of mishap also increases. Maintaining the entire operations process also does not leave you with enough room to scale your business, as a considerable amount of time and energy is spent in managing the order fulfillment process.

2. Dropshipping

In this type of order fulfillment process, instead of warehousing inventory, merchants purchase products from third-party suppliers as and when customers make orders. This means that you order the products from the supplier or manufacturers when an order arrives. The supplier handles all your orders and ships them to the customers, and sellers are only charged for the products they sell. Dropshipping is a preferable choice for many eCommerce and startup retailers, and it can generate high returns for the aspiring eCommerce entrepreneur.  

3. Third-Party

In this type of order fulfillment process, all services, including storing inventory, picking and packing orders, shipping and logistics, are outsourced to a specialised fulfillment company. This is great for businesses that do not have the bandwidth or space to handle in-house fulfillment. Partnering with a third-party logistics (3PL) or external provider can help disperse the workload. It helps save time and allows the company to focus on other important aspects of running a business. They also provide value-added services such as warehousing distribution, transportation management, inventory management that can be beneficial to the company. Choosing 3PL services can also help reduce the cost for your business.

4. Hybrid

Another approach to order fulfillment is to use a combination of the above-mentioned methods. Companies can tailor their fulfillment strategy to their unique needs by using a mix of in-house, outsourced, and dropshipping solutions. This hybrid approach offers greater flexibility and scalability for companies that are rapidly growing or need to adjust their fulfillment strategy over time.

Importance of Order Fulfillment Process 

When a customer places an order online, it sets off a series of steps that involve receiving, processing, and delivering that order. These steps include activities such as inventory management, picking the products at the warehouse and packing it, shipping and handling, and finally, tracking orders until delivery. The entire lifecycle of an order fulfillment process needs to be efficient in order to meet customer expectations and ensure on-time delivery. 

It is a critical stage where businesses have to strike a balance between customer satisfaction, operational excellence and financial goals. It is essential to have the right processes and systems in place to streamline the order fulfillment process and ensure that it runs smoothly.

With this understanding of the order fulfillment process, let us explore the 7 strategies which will improve the process to achieve eCommerce objectives. 

offer same/next day delivey

7 Steps to Refine Your Order Fulfillment Process 

There are several ways by which order fulfillment can be enhanced. The top 7 ways that you should implement to refine your order fulfillment process for a great customer experience are- 

  1. Invest in an Inventory Management Software:

Software that specifically addresses the challenges of inventory management is a very important step, as it will help you to track levels in real time and ensure you are not understocked or overstocked. This software will prove to be effective in forecasting demand, optimising order processing, and reducing inventory loss. 

  1. Optimise Your Warehouse Layout:

A critical step in improving order fulfillment is optimising the warehouse layout. This will reduce the time it takes to pick and pack orders, improve inventory organization for quick finding, and ensure that the correct orders are being fulfilled. This, in turn, can lead to faster delivery times and increased customer satisfaction. 

  1. Automate Your Order Fulfillment Process:

The most important strategy is automation, as it will eliminate most of the common human errors in order handling because of lesser human involvement.  It also leads to refined picking and packing systems since robotic assistants, conveyor belts and other accessories are used to automate warehouse operations. 

  1. Implement Quality Auditing:

A very important step in improving the accuracy of orders is to implement quality control. This step ensures products meet the expectations of the customer and helps in the detection of defects, and reduces the risk of returns and refunds. 

  1. Offer Multiple Shipping Options:

One of the ways to ensure customer delight is to have multiple options for shipping since it gives them greater flexibility and control over the delivery of their orders. For example, by offering same-day, two-day, or expedited shipping options in addition to standard shipping, you can cater to a wider range of customer needs and preferences.

  1. Utilise Data Analytics:

Knowing your market sentiment is critical to your eCommerce strategy as it will help you understand buying patterns and decisions. A key method to derive such insights is by studying your customer’s activities on your website and augmenting industry inputs to analyse order taking, processing and delivery for optimised sales. 

  1. Continuously Improve Your Processes:

This step is very important as it will bring together all of your strategies to improve your order fulfillment process. It is very important for you to repeatedly go back to your processes to review, evaluate and correct them in order to be competitive, control costs and ensure long-term customer engagement. 

Having a strategy to overcome order fulfillment issues is crucial for customer satisfaction, business reputation and cost efficiency. Thus, these seven strategies can help you refine the current order fulfillment process and give your customers a positive experience such that they come back for more. 


For every eCommerce business to remain competitive, a smooth and efficient order fulfillment process is essential. There are various ways to streamline your order fulfillment process and improve efficiency. The key is to work on the above-mentioned seven industry-tested strategies and tools to improve operations, increase customer satisfaction and lower operational costs. The most important strategy is to partner with reputed and proven service providers to find powerful solutions for your business and be successful in the eCommerce landscape. To know more about Fulfillment’s all-in-one solution that provides businesses with a comprehensive platform to manage their order process, click here.

Scale Your Business The Smart Way

Frequently Asked Question(FAQs)

How to handle order cancellations after the order fulfillment process has started?

If a change request is made after the fulfillment process has started the fulfillment center has to be informed immediately to halt the process. A well-framed cancellation and change policy proves to be very important in handling such cases.

How can you address order fulfillment issues from customers?

The ideal solution is to have a trained customer representative to handle order-related inquiries from customers. The queries could be related to tracking updates, order cancellations, order changes, delivery delays and more.

What is the best method to handle the challenges in the order fulfillment process?

An ideal method to overcome order fulfillment process challenges is to outsource the entire process to third-party service providers. Make sure you choose a reliable and established provider to achieve your business objectives.

Apr 27, 2023 by Danish Khan

7 min read

What is Distribution Center? Benefits & Key Processes

March 13, 2023 by Danish Khan - 7 min read

Distribution centers are indispensable for eCommerce. They are strategically located to help improve shipping and delivery times. A significant reason for the surge in the popularity of online shopping is the availability of well-planned distribution centers.

What is Distribution Center?

As the name suggests, “distribution centers” are the centers for distribution wherein goods can be safely stored before being delivered to buyers. The buyers can be wholesalers, retailers, or individuals.

Distributions centers

With the global e-commerce market expected to achieve USD 58.74 trillion by 2028, distribution centers will continue to be the driving force in accelerating order deliveries and enhancing company revenue. Strategic locations of distribution centers and technology adoption will play crucial roles in streamlining the distribution network of any eCommerce company.

Difference Between Distribution Centres and Warehouses

Warehouses are large spaces that store bulk quantities of goods or e-commerce inventory. They typically store goods for long periods. Warehouses rarely handle order processing and fulfillment tasks. Meanwhile, distribution centers are storage areas equipped with fulfillment infrastructure and technology that help eCommerce companies offer customers affordable, accurate, and prompt shipping.

A distribution center can be called a specialised warehouse that functions as a hub to store finished goods strategically, streamline the picking and packing processes, and transport goods to another location or the final destination. Distribution centers handle order fulfillment and other value-added services.

Though distribution centers and warehouses tend to take on warehousing capabilities such as goods storage, differences exist between the two, each facility designed to handle different operations.

Online retailers and eCommerce companies mostly use distribution centers. They are more agile and focus less on long-term storage and more on the flow of goods. This calls for technology that automatically places orders to the closest distribution center where inventory is stored, thus speeding the fulfillment speed while keeping costs down.

offer same/next day delivey

Role of Distribution Centers

With the explosive increase in eCommerce likely to reach $5,288.5 million by 2027, the logistics industry is expected to match demand with automation technology and the strategic location of distribution centers.  Competitively-priced service providers like Shiprocket, India’s #1 e-commerce shipping solution are expected to lead the expansion of the industry.  

Distribution centers can be operated and managed as per business needs. They are akin to all-in-one logistics operation centers that can store, move, pack, and ship goods to fulfil customer orders. Distribution centers focus on the quick turnover time of despatching finished products to the customer, prioritizing improved speed at lower costs.

The management of distribution centers combines traditional warehouse best practices, such as inventory management, space optimization, and quality control, with fulfillment practices, such as order processing, product return, and exchange processes.

Distribution centers form the elementary units of supply chain networks. They can run more efficiently by adopting the right technology, from warehouse automation technology to enterprise resource planning (ERP) solutions.

Key Processes Involved in a Distribution Center

A distribution center’s processes are designed to process orders quickly by picking, packing, and transporting packages to customers cost-effectively. It involves real-time monitoring of inventory levels to keep operations running as efficiently as possible.

Some significant processes involved at distribution centers are:

Receiving of goods

Receiving goods involves delivering, unloading, inspecting, and adequately storing goods at the distribution center. This process also involves proper documentation to avoid issues later on. Quantity and quality checks are conducted to ensure the goods are correctly received.

Storage of goods

Once the goods are received, they are stored in the distribution center for further processing. Goods are stored depending on the inventory management strategy used by the center, such as First In First Out (FIFO), Last In First Out (LIFO), or Last In Last Out (LILO). Proper handling and storage of sensitive or temperature-controlled products must be prioritized to prevent loss or damage to the product.

Order fulfillment

After an order is received from a customer, the goods are segregated (picked), packed, and then shipped to the customer’s correct address. With the help of technology, one can automatically assign similar orders with inventory near the warehouse, thus reducing delivery steps. This also creates an efficient workflow and improves speed and order accuracy. 

Returns management

A returns management process can significantly improve a company’s bottom line. Distribution centers that process returns must coordinate with customers to initiate the return and, once the product is received, restock or refurbish it.

Streamlining of Distribution Networks with the Best Distribution Centres

Distribution networks are interconnected storage facilities and transportation systems that receive goods and deliver them to customers. For a supply chain to function efficiently, ensuring that the distribution network is streamlined with the best type of distribution centers is of utmost importance. Distribution centers function as traditional-type warehouses but also have the capabilities of fulfillment centers to quickly and easily deliver goods to customers. Instead of reordering goods and waiting for delivery, retailers can easily collect them from the nearest distribution centers for hassle-free delivery to end-users.

Distribution centers help improve distribution efficiency and promote business growth when correctly aligned. Inventory-carrying costs can be reduced through the use of good distribution centers. If a distribution network has multiple well-aligned distribution centers, the efficacy of delivering goods to consumers can significantly improve. Examples of companies having multiple distribution centers are Amazon and Nike.

Care needs to be taken while operating distribution centers. Errors during the pickup and packing stages can lead to wrong deliveries, stoking customer discontent. Besides time being wasted, additional funds will be needed to replace the goods. Quality control needs to be maintained; else, it can lead to a reputation downgrade in the market. Shiprocket enables businesses to achieve 3x faster deliveries by storing inventory closest to customers in a pan-India network of e-commerce fulfillment centers.


Distribution centers are a vital part of the distribution network in logistics. They play an important role in ensuring finished goods are available to the customer in the shortest time and lowest cost possible. Distribution centers receive goods, store them properly, and pick, pack, and ship when an order is received. The distribution network will eventually be able to ensure order fulfillment. Automated systems help to easily track and trace goods with less human intervention and reduced paperwork.

Considering the critical need for distribution centers, organisations that were earlier investing in their own facilities are now exploring third-party service providers to sustain the explosive growth of eCommerce sales. Streamlining the distribution network with the best type of distribution center is essential to ensure the supply chain functions at its optimal best.

Scale Your Business The Smart Way

Frequently Asked Questions(FAQs)

What is the relation between the distribution network and distribution centers?

A distribution network ensures the organisation has a properly functioning supply chain. The distribution center plays a vital role in the distribution network. It helps to ensure the finished goods are readily available in the shortest time and lowest price to the customer. Strategic distribution centers will ensure that the distribution network is robust and can help the organisation ensure fast customer delivery.

What are the processes carried out in a distribution center?

There are primarily three processes in a distribution center. The first is the receipt of goods. Goods are received in the center and checked for quantity and quality. The second process is properly storing goods for easy tracking and tracing. Quick retrieval of goods is of prime importance. The third process is order fulfillment, which requires the correct quantity and product to be packed and shipped to a valid address at the earliest.

Which technologies are used in a distribution center?

Some commonly used automation mechanisms are RFID systems that can automatically track the position of the goods in the distribution center, and automatic storage and retrieval systems, which help store and retrieve goods with ease and less human intervention. These include vertical lifts, cranes, and robotics. Using automatically guided vehicles to receive goods and deliver them to the exit station at the distribution center is very helpful as they free up a workforce who would otherwise be occupied with executing repetitive tasks.

Mar 13, 2023 by Danish Khan

5 min read

Best Cold Storage Companies in India

February 23, 2023 by Danish Khan - 5 min read

India is the world’s second largest producer of fruits and vegetables, so there is a high demand for efficient and reliable cold storage solutions. Cold storage is a temperature-controlled storage facility for preserving perishable items such as fruits, vegetables, dairy products, meat, and pharmaceuticals. The role of warehousing in cold storage is crucial. Warehousing is the process of storing goods systematically, which plays an essential role in maintaining the quality of perishable products. The warehousing facilities in cold storage companies are equipped with temperature-controlled environments to preserve the quality of the products. The temperature is maintained at specific levels to ensure the products are not damaged due to high or low temperatures. The warehouses are also equipped with state-of-the-art technology, such as cold rooms, blast freezers, and quick-freezing facilities, to ensure that the products are stored under optimal conditions. Here is a list of some of the best cold storage companies in India.

1. Snowman Logistics

Snowman Logistics is one of the largest cold chain solutions providers in India, with a pan-India presence. The company has a state-of-the-art cold storage infrastructure and offers a range of temperature-controlled storage solutions, including deep freeze, blast freezing, and chilling. The company operates a network of temperature-controlled warehouses and a fleet of refrigerated trucks and trailers to ensure the safe and efficient transport and storage of perishable goods.

2. Coldrush Logistics

Founded in 2012, Coldrush Logistics offers end-to-end cold chain solutions, including temperature-controlled warehousing, transportation, and distribution services. The company specializes in cold chain logistics services for temperature-sensitive products across various industries. It is committed to using the latest technology and equipment to ensure the safe and efficient handling of temperature-sensitive products.

3. Gubba Cold Storage

Founded in 1987, Gubba Cold Storage is one of the first cold storage companies in Andhra Pradesh and has since grown to a capacity of 1.25 crore cubic feet. The company operates 17 cold storage facilities and provides storage and preservation services to a range of industries, including the seed, dairy, processed food, and pharmaceutical industries. With over 30 years of experience in cold storage technology, Gubba Cold Storage is a well-established and reputable company in the industry.

4. Indicold Logistics 

Established in 2019, Indicold Logistics is an Indian company that provides end-to-end temperature-controlled logistics solutions for perishable products, such as fruits, vegetables, dairy, pharmaceuticals, and other temperature-sensitive items. The company offers services, including warehousing, transportation, distribution, and value-added services. The company operates nationally, providing prompt, reliable cold storage and transportation services to its clients across India.

5. Arihant Cold Storage

Arihant Cold Storage provides end-to-end cold chain solutions for storing and transporting perishable goods, including fruits, vegetables, dairy, and frozen foods. Their services include temperature-controlled warehousing, transportation, and last-mile delivery to ensure the products remain fresh and safe for consumption. They use state-of-the-art technology and equipment to maintain the required temperature and humidity levels throughout the supply chain.

6. Coldman Logistics

Coldman Logistics is a leading cold storage company in India, offering temperature-controlled supply chain services for various industries with the capacity to handle a range of temperatures. Coldman Logistics provides a comprehensive range of customized warehousing solutions scalable to clients’/product-specific needs. It offers six different temperature zones ranging from -30°C to +30°C spread across strategic locations in India. Coldman Logistics handles products in almost every industry vertical, including quick-service restaurants, confectionery, food processing, poultry, meat, pharmaceutical, fruits, and vegetables.

offer same/next day delivey

These are some of the best cold storage companies in India that offer reliable and efficient cold chain solutions. With their state-of-the-art infrastructure and expert services, these companies ensure that perishable products are preserved in optimal conditions and delivered fresh to the market.

Shiprocket Fulfillment is a leading e-commerce logistics and fulfillment solution provider that enables e-commerce businesses to store their inventory in a warehouse. Shiprocket Fulfillment has multiple fulfillment centers across India and offers inventory management, quality checks, and packaging solutions to ensure that products reach customers in the best possible condition.

How To Choose the Best Cold Storage Company in India?

Here’s a more detailed explanation of the factors to consider when choosing the best cold storage company in India:

Location and accessibility of the facility: This is an important factor to consider since the location of the facility can impact the time it takes to transport goods and the associated costs. The facility should also be easily accessible to trucks and other vehicles for loading and unloading.

Storage capacity and flexibility to meet your needs: The cold storage facility you choose should have enough storage capacity to meet your needs and the ability to scale up or down as per changing needs. It should also be flexible enough to accommodate different types of products and packaging.

Quality of infrastructure and equipment: The facility should have high-quality infrastructure and equipment that is well-maintained, efficient, and reliable. This includes temperature control systems, backup generators, and other related equipment.

Temperature and humidity control systems: Cold storage facilities must maintain precise temperature and humidity levels to prevent spoilage and damage to goods. The facility you choose should have robust temperature and humidity control systems that consistently maintain the required levels.

Security measures such as surveillance and access controls: The facility should have appropriate security measures to prevent theft, damage, or contamination of your goods. This includes video surveillance, access controls, and other security protocols.

Compliance with food safety regulations and certifications: Cold storage facilities that handle food products must comply with relevant food safety regulations and obtain the necessary certifications. Make sure the facility you choose meets these requirements.

Reputation and customer reviews: Look for a cold storage provider with a good reputation and positive customer reviews. This can give you confidence that the provider is reliable and efficient.

Cost and pricing structure: Finally, consider the cost and pricing structure of the cold storage provider. Choose a provider that offers competitive pricing, transparent pricing policies, and clear invoicing practices.

By considering these factors, you can choose a reliable and efficient cold storage provider that meets your specific business requirements.

Scale Your Business The Smart Way
Feb 23, 2023 by Danish Khan

5 min read

ABC Inventory Analysis, Benefits & How to Use It?

October 28, 2022 by Malika Sanon - 5 min read

ABC Analysis, also known as Always Better Control Analysis, is one of the most commonly used inventory management methods. This analysis moves items into three groups (A, B, & C) based on their level of value in a business. 

ABC Analysis

Classifying inventory with ABC analysis helps businesses figure out their inventory, optimize their operations, and make smarter decisions. In this blog, we will understand the ABC analysis in-depth, explain how it can be used, and help you decide if that’s what you need for your business. 

Why Should You Use ABC Analysis in Inventory Management?

ABC analysis is the method of inventory management to store inventory into three main buckets. 

A Items: This is your inventory with the highest annual consumption value. It should be your highest priority and rarely, if ever, a stockout.

B Items: Inventory that sells regularly but less than A items. Often inventory costs more to hold than A items.

C Items: This is the rest of your inventory that doesn’t sell much, has the lowest inventory value, and makes up the bulk of your inventory cost.

Inventory categorisation is exceptionally essential for physical products because it protects your profit margins and also prevents you from losses. It is also the first step in reducing obsolete inventory, supply chain optimization, increasing prices, and forecasting demand.

The Pareto Principle & ABC Analysis

The Pareto principle, also known as the 80/20 rule, states that 80% of outputs are caused by 20% of inputs. 

The principle was discovered by Italian economist Vilfredo Pareto, who observed that 80% of the peas in his garden came from only 20% of the pods he planted. More significantly, he noticed a similar ratio when he realized that 80% of the land in Italy was owned by 20% of the population. 

After Pareto’s discovery, the principle changed how economics is studied and how we understand the distribution of the world’s resources. 

ABC inventory analysis is also based on the Pareto Principle, which means it’s often the case that about 20% of a company’s inventory accounts for 80% of its value. This helps leaders make more informed decisions. 

ABC analysis brings simplicity to inventory analysis by putting all of your stock into three buckets, enabling you to make well-informed decisions. 

What Are The Benefits Of ABC Inventory Analysis?


Accurate Demand Forecast

ABC analysis helps inventory planners predict demand for specific products and manage their inventory accordingly. This also minimizes keeping an obsolete inventory, helps create space for high-demand products, and also improves supply chain management.

Smooth Control Of High-Value Inventory

For most businesses’ a majority of their profits depend on A-class inventory. ABC analysis helps you identify those items in real-time, monitor their demand, and ensure they never go out of stock. By channelling your resources towards high-priority inventory, you can be assured you’re putting the odds of success in your favour.

Strategic Pricing

ABC analysis can optimize your pricing strategy for products that bring the most revenue to your business. Once you understand which products are in high demand, you can decide their price accordingly, which can significantly impact profits.

How To Use ABC Analysis for Inventory Management?

To apply ABC analysis to your business, follow these simple steps-

1. Classify The Inventory

Your inventory classification depends on the business you’re running and your company’s objectives. Your classification largely relies on the type of inventory you have in your business and the way your business operates. 

Any metric you use measures your inventory’s consumption value for a given period. Standard metrics are total sales, gross margin, purchasing, and holding costs. After calculating each item’s percentages, place them in your A, B, and C categories.

Offer Same/Next Day Delivery

2. Create Rules For Inventory Categories 

For all three categories (A, B, and C), we need to create rules or actions on how your classifications should function. 

3. Monitor & Look For Opportunities To Change Classes

Your classification mix will change as you grow and add items to your inventory. If you continue to monitor your analyses, you’ll start to notice patterns and forecast which inventory is most vital for you and which is least important. By always having the right inventory mix, your operations will run more efficiently, and cash flow nightmares will eventually be a thing of the past.

Shiprocket Fulfillment has fulfillment centers located in different cities across India. This means you can decentralize your inventory, store it closer to buyers, and save on shipping costs while providing one-day and two-day delivery. 

Not just this, the right technology stack, like warehouse management systems, order management systems, and logistics operations, enables your business to expedite deliveries. We are also equipped to reduce your order-to-ship time and meet the stringent requirements of marketplaces. 

Final Thoughts

Classifying inventory with ABC analysis will help you sort out your inventory and make more informed decisions. Inventory categorisation is essential for physical products and will protect your profit margins and save you from losses.

Scale Your Business The Smart Way
Oct 28, 2022 by Malika Sanon

5 min read

Just-In-Time Inventory Management: Advantages & Disadvantages

October 21, 2022 by Debarshi Chakrabarti - 5 min read

There are three inventory management techniques: pull, push, and just-in-time. Depending on the business requirements, a brand manufactures inventory based on customer demand, also known as the pull method. The push method is when a brand pushes out products based on expected demand.

Apart from these two methods, there is a third method, which is our focus in this blog – the just-in-time inventory management method.

Just-In-Time Inventory Management

What Is Just-In-Time (JIT)?

Just-In-Time or JIT is an inventory management method in which goods are received from suppliers only as and when they are needed. The main objective of this method is to reduce inventory holding costs and increase inventory turnover. Businesses use this method to reduce inventory waste, improve efficiency and have accurate demand planning.

Although the history of JIT traces back to Henry Ford, the American businessman who applied similar principles to manage inventory in the Ford automobile company during the early part of the 20th Century, the origins of JIT as a management strategy track down to Taiichi Ohno of the Toyota manufacturing company. 

He developed the just-in-time strategy as a means of competitive advantage during the post-World War II period in Japan.

Just-In-Time Management is also known as Lean Management, Cycle Time Management, Quick Response Manufacturing etc. However, while lean management is a customer-centric philosophy focusing on manufacturing and operations management, JIT has a more business-centric philosophy focused on the production process. Hence, businesses prefer it more as their go-to approach.

Offer Same/Next Day Delivery

How Does Just In Time Work?

JIT inventory management ensures that stock arrives as needed for production or to meet consumer demand, not earlier. The goal is to eliminate waste and increase the efficiency of business operations. 

Since the main objective is often quality and not the lowest price, JIT requires long-term contracts with reliable suppliers.

In JIT, the parts of the production or service system are interconnected. These systems exchange information and are mutually dependent on generating successful outcomes. It is a continuous improvement process aiming to streamline the business strategy.

For a successful just-in-time model, a business needs the following:

  • Steady & consistent production
  • Reliable material suppliers
  • Quality systems that work without any fail
  • AI-driven accurate demand forecasting 

Due to this type of inventory management, businesses require robust network connectivity along with Artificial Intelligence, machine learning, Internet of Things, cloud ERPs, and blockchain technologies to share and analyse data in real-time and make smarter decisions.

Just In Time Process

Just-In-Time – A Continuous Improvement Strategy

Since the just-in-time process aims to reduce waste and improve quality, the strategy goes through an 8-step cyclic process for continuous improvement.

  1. Design: The JIT process begins with a review of the product design, process design, personnel and manufacturing planning to eliminate disruptions, minimise waste & build a flexible system.
  2. Manage: A Total Quality Management (TQM) review ensures there is continuous improvement throughout the process. 
  3. Pull: The amount and time of material flow are determined by the rate and time of the actual stock consumption. A scheduling system is used for this process. 
  4. Establish: Relationship management is critical in the JIT process. Review your supplier lists. Negotiate contracts, and discuss lead times, delivery expectations and business requirements
  5. Fine-tune: Determine your inventory needs, brush up on the fine details of policies, and reduce unnecessary inventory movements.
  6. Build: Inform your team about the skills and capabilities it needs to complete its work and conduct team education and empowerment sessions to educate them. If your business uses automation, ensure the systems are capable of the work required.
  7. Refine: Reduce the number of steps in production by refining, standardising and reviewing the entire process.
  8. Review: Define and implement quality measures and metrics and conduct a root cause analysis of any problems. Emphasise improvements and track trends to improve every aspect of JIT.
Advantages Of Just In Time

Advantages Of Just-In-Time Inventory Management

Just-In-Time inventory management has several advantages.  It aims to boost a business’s ROI by reducing waste, increasing efficiency and lowering inventory carrying costs. 

Some of its other advantages are as follows:

  • Gives the manufacturer more control over the manufacturing process.
  • Decreases warehouse holding costs and reduces labour costs.
  • Reduces obsolete inventory, dead stock & defective product loss. 
  • Raises inventory turnover ratio and improves local sourcing.
  • Minimises raw materials on hand and inventory obsolescence.
  • Greater productivity with faster product turnaround with shorter production flow.

Disadvantages Of Just-In-Time Inventory Management

Although JIT has several advantages, there are some disadvantages of the same. The following are the drawbacks of JIT:

  • Any disruption in the supply chain can halt the entire production process.
  • With no finished goods in hand, businesses cannot address a sudden order surge.
  • Shortages and stockouts can disrupt inventory systems.
  • There could be forecasting flaws leading to disastrous outcomes.
  • Excessive supplier dependence can disrupt the entire supply chain in case of material delivery failure.

Factors To Consider Before Implementing Just In Time

JIT inventory management is not for every business. Every business has its own unique requirements and implements inventory management processes accordingly. Here are six factors to consider before opting for just-in-time inventory management.

  • Turnaround Time: Ask if your products can be supplied or manufactured quickly if needed.
  • Demand Forecasting: Consider if your business has accurate demand forecasting, even during festive seasons.
  • Flexibility: Ensure that your supply chain is flexible enough to adapt to disruptions like supplier drawbacks & natural calamities.
  • Distributors: Cross-check if your vendors & distributors are reliable and if your order fulfillment system is efficient enough.
  • Workforce: Check if you have multi-functional, cross-trained employees to perform several duties so team members can fill in when and where needed in the production line cell.
  • Technology: Check if your business uses inventory management software that supports the JIT inventory system.


Just-In-Time inventory management is helpful for businesses to manage production and fulfill orders efficiently. They find it beneficial because it reduces waste and helps maintain a positive cash flow. However, there are downfalls to the same. Now that you have an overview of JIT, you can make an informed decision about your business.

Scale Your Business The Smart Way
Oct 21, 2022 by Debarshi Chakrabarti

5 min read

What is FIFO(First In First Out) Method of Inventory Valuation

October 19, 2022 by Rashi Sood - 5 min read

Running an online business is not easy. You need to manage a lot of things, from providing excellent customer service to shipping orders on time. In all this chaos, inventory management is one thing that most sellers generally don’t give much thought to. While offering premium customer service and delivering orders on time is crucial, managing inventory and ensuring that you always have enough inventory to meet customers’ demands are vital.


And when it comes to maintaining accurate inventory records, keeping track of fluctuating inventory value is essential. One of the most common methods to ensure inventory records are accurate is the FIFO – First In, First Out method. This method suggests the oldest inventory is sold first, and the inventory value is calculated accordingly.

Read on to learn more about FIFO and its benefits and disadvantages.

What is the FIFO Method?

FIFO (First In, First Out) is an inventory valuation method that implies that the goods purchased first are sold first. Simply put, the oldest inventory is sold and shipped to customers before the newer ones. To calculate the cost of ending inventory, the cost of the products sold from the oldest inventory is used.

Inventory is an asset for eCommerce businesses. The cost of goods sold at the end of an accounting year helps determine the inventory write-offs, the closing inventory, and the impact on the balance sheet. With the FIFO method, the old goods are sold first and thus, the ending inventory can be of greater value since the goods’ value keeps fluctuating.

The FIFO method is essentially beneficial for perishable goods, has a shorter shelf-life, and gets obsolete quickly. However, using the FIFO method to calculate inventory valuation can sometimes create discrepancies if the cost of goods sold increases considerably.


LIFO, or last in, first out, is the method where the goods purchased later are sold first. The most recently purchased inventory is sold first. This method is not very famous and is only used in US-based businesses. On the other hand, FIFO is the most used inventory valuation method, even accepted by IFRS regulations. While you can record the original COGS in the income statement with, you have to record the most recent inventory costs with LIFO.

With LIFO, the cost of goods sold is generally higher as the most recent inventory cost is used. Thus, the profits are decreased, leading to lower income tax. Therefore, the government is not in favor of the LIFO method. Therefore, compared to LIFO, FIFO is a more accurate and transparent method for inventory valuation.

Advantages of FIFO

Here are some points why the FIFO method is most preferred:

  • The FIFO method is universally accepted. It is easy to understand and provides accurate values.
  • FIFO is based on the natural flow of inventory – sell the old products first and account for their costs first. This eliminates the chances of mistakes. Plus, there is less waste in terms of obsolete inventory as the oldest inventory is moved first.
  • A business that follows the FIFO method will have access to better market value. This is because the inventory that it holds is new, and the value is recent as well.
  • As discussed, FIFO method lead to higher profits. Also, with the FIFO method, it becomes challenging to manipulate financial records. Thus, you have an accurate and up-to-date picture of your finances, and you can plan your business’ future accordingly.

Disadvantages of FIFO

With the FIFO method, you can have higher profits, which also means higher income tax. You also need to be careful in terms of not overstating the profits. This can happen when the product’s costs rise, and these numbers are used to calculate the COGS. 

How FIFO Method Impacts Financial Statements

Let us now have a look at how using the FIFO method will impact your financial statements:

Inventory Valuation

By using the FIFO method to calculate inventory valuation, you show a recent value of your inventory. The current costs for manufacturing and acquiring inventory are also recorded in the financial records. Therefore, your financial records have the latest market inventory value.

Poor Match Between Revenue & Expense

Since the oldest products are sold first, the selling cost is matches with the outdated cost. Thus, there is a poor match between revenue and expense.

Leave Your Inventory Management to Shiprocket Fulfillment

You can leave your inventory management to us and focus on selling your products like a pro! Shiprocket fulfillment has 45+ fulfillment centers across India where you can store your inventory and save on shipping costs by storing inventory close to your buyers. Not just this, you also get access to the latest warehouse management systems and order management systems to scale your business to the new heights. Offer your customers one-day and two-day delivery options and become their favourite brand! Get started today.

Shiprocket Fulfillment
Oct 19, 2022 by Rashi Sood

4 min read

Goods in Transit 101: How to Account for In-Transit Inventory?

October 12, 2022 by Rashi Sood - 4 min read

A well-managed inventory flow is key to an efficient supply chain. Without it, it becomes difficult to understand how much and when inventory is required to keep your business running. Other important decisions, like where to store inventory, also depend on a well-managed inventory flow.

goods in transit

It is comparatively easier to account for your purchased and received inventory. But what about the stock that is in transit? To get a holistic picture of your inventory in hand, it is crucial that you also account for the inventory that you have purchased and is in transit.

To simplify things, we will talk about goods in transit and how you can account for them.

What are Goods in Transit?

Goods purchased, shipped by the seller, and yet to reach the buyer are called goods in transit. Often, this inventory goes unnoticed while accounting for the inventory as it is not present at the seller’s place or warehouse in physical form. 

Who Owns Goods in Transit?

The terms of sale decide the ownership of the inventory in transit. If the buyer is the inventory owner, he is liable to arrange the shipping of the goods. Accordingly, when the seller is responsible for the shipment, he is the owner of goods in transit.

In straightforward terms, if the sale of goods takes place only when the goods reach their destination, the ownership stays with the seller. Thus, the sale or purchase is not recorded in the books until the goods reach their destination, i.e., to the buyer.

Alternatively, the title is passed on to the buyer if the sale occurs before the goods are shipped. So, in case the buyer arranges for the shipment, the sale and purchase are immediately recorded in the books.

Accounting for In-Transit Goods

goods in transit

The ownership of goods plays a vital role in deciding the accounting for transit goods. If the title is not passed to the buyer, no sale or purchase has been made. Thus, the inventory is still included in the seller’s ending inventory.

However, if the title is passed, the seller records the sale in his books along with a receivable or cash. He doesn’t include the sold items in his ending inventory. Similarly, the buyer records the payable in his books and consists of the goods purchased in the ending inventory against it.

Insuring In-Transit Goods: A Good Idea?

Insuring in-transit goods can help reduce accidental risks. Even if you haven’t made the sale in your books, any problem during transit, like goods misplacement, shipping damages, or even slowdowns, might leave you in a jeopardized situation. It helps to have a contingency plan in place.

You can get your in-transit goods insured against natural disasters, theft, accidents, derailing when shipping by train, and sinking when shipping by sea. The goods’ owner will get appropriate insurance coverage depending on the sale terms.

Role of a 3PL Service Provider

When a business is in its growing stage, sometimes it becomes challenging to manage inventory. Here, 3PL service providers like Shiprocket Fulfillment can be the best go-to option. They not just help manage inventory but also pick, pack, and ship orders on your behalf. With their expertise, they can process orders with utmost accuracy and decrease shipping errors.

With a 3PL service provider, you can store your inventory in multiple fulfillment centers across the country and deliver orders the same or the next day. You also get access to the latest logistics solutions that help decrease shipping costs by a substantial margin and lower weight discrepancies.

Final Thoughts

When it comes to maintaining an effective supply chain process, taking your in-transit inventory into account is critical. You can also partner with 3PL providers like Shiprocket Fulfillment to distribute your inventory in different fulfillment centers across the country. This will reduce the in-transit time, associated risks and shipping costs.

Shiprocket Fulfillment
Oct 12, 2022 by Rashi Sood

6 min read

Inventory Analysis Methods and Tools for Inventory Management

October 7, 2022 by Aayushi Sharawat - 6 min read

Inventory management is one of the most crucial aspects of running a business. If not done correctly, it may lead to situations like stockouts and overstocking, which can harm your business’s reputation in the market. However, there are several tools that you can employ to manage your inventory better.

inventory analysis

Inventory analysis is one such tool that ensures that you have the right amount of inventory in hand at any given point intime. It also helps lower operational costs and offers more accurate demand forecasting. With inventory analysis, you’ll have a better grasp on your stock count and general operating efficiency which will eventually lead to better inventory optimization.

What is Inventory Analysis?

Inventory analysis is the process of determining how much inventory you should be storing to sustain your business well. With inventory analysis, you can get insights into how your inventory is turning and thus, manage inventory well. Additionally, inventory analysis is also crucial for increasing sales and reducing expenditures.

Need for Inventory Analysis Strategy

Regular inventory analysis can help keep inventory management on track. A robust inventory analysis can help ensure that you always having enough inventory and manage your demand forecasts accurately. Also, you can ensure that your less capital is invested in stock. You can manage supply chain efficiently with inventory analysis.

  • Sufficient Inventory: an inventory analysis approach focuses on various product identifiers, such as those in demand, essential, scarce, and so on. With their help, you can maintain stocks of the correct products and manage their quantities well on your warehouse shelves. Your eCommerce business can use stock analysis to make sure it has just the right amount of inventory in hand to prevent stockout or overstock situations.
  • Inventory Forecasting: deadstock frequently results from incorrect inventory forecasting. Therefore, it is essential to have an inventory analysis system in place. A reliable inventory analysis and reporting method will track all your SKUs, enhancing forecasting and reordering accuracy. 
  • Less Capital in Inventory: retailers and manufacturers invest a lot of money in inventory. You can evaluate which inventory to invest in and which is not turning good and thus, plan your investments accordingly.
  • Streamlining Supply Chain: inventory analysis is essential for optimizing supply chain optimization as it can help switch to single sourcing or combine suppliers. Additionally, inventory analysis provides insight into the product life cycle such as launch, growth, maturity, etc.).

Common Inventory Analysis Methods

inventory analysis

There are various inventory analysis techniques that you can use to manage your inventory well:

ABC Analysis

Most commonly used method, the ABC, or “Always Better Control,” analysis is helps retailers categorize their inventory based on the consumption value of each item and how it affects annual inventory expenditures. The ABC method classifies products into one of three groups:

  • A-inventory: items that generate the highest revenue
  • B-inventory: commodities that generate revenue between the most and least revenue
  • C-inventory: goods that have limited transactions but are vital to collective profit margins

With ABC analysis, you can devote more time to most crucial inventory that generates the highest sales.


HML inventory is based on cost per item. Three categories are used in this unit price analysis:

  • High Cost: high-value item per unit.
  • Medium Cost: item has a medium unit value.
  • Low Cost: low item value per unit.

You will set up the upper and lower limits for each category, which are always listed in descending order of unit value.


VED analysis works in contrast to ABC analysis. It considers how essential a particular thing is to the running of your organization efficiently. Businesses that have a wide range of different components adopt the VED technique. Three categories are generally used to categorize VED inventory:

  • Important inventory that must be available readily.
  • Minimum quantities of these things are sufficient.
  • Stocking these items is not required.


The SDE inventory analysis is a scarcity method based on how quickly you can obtain scarce products. The SDE analysis examines the inventory on hand and assigns each item or SKU a level of supply scarcity.

Inventory Analytics Tools That Save Time & Money

inventory analysis


An all-in-one eCommerce operations tool called Skubana helps companies synchronize their inventory data and analysis across sales channels, warehouses, third-party logistics providers, point-of-sale systems, purchase orders, and other systems. The sophisticated automation offered by Skubana for inventory tracking and reporting reduces storage expenses, eliminates dead stock, prevents stockouts, and even maintains balanced inventory turnover ratios. Additionally, your business may better schedule sales orders for raw materials by using real-time data analysis, which prevents stockouts and backorder inventory.


Ecommerce businesses can benefit from a top-notch inventory control system that accurately fulfills customer orders and spots any potential problems during the order fulfillment process when SkuVault and Skubana collaborate. SkuVault employs robust integrations and straightforward workflows to connect all of your channels, position your warehouses, and manage your inventory. Your business may access crucial inventory data and analytics using the SkuVault system to create thorough reports and ensure you never oversell or run out of any product.


The inventory data analytics in Daasity’s software are renowned for being simple to understand and translate into actual outcomes because they have been created for non-technical users. When using Daasity, your online business will feel empowered to go beyond simple reporting and use holistic sales data (broken down into individual channels). When Daasity and Skubana work together, your business can compile all of its analytics into one comprehensive picture, allowing you to discover insightful data that will help promote strategic, lucrative, and sustainable growth.

Inventory Planner

Inventory Planner, a pioneer in inventory management and demand forecasting, has automatic replenishment suggestions built to streamline the buying process. This technology is excellent for overcoming forecasting difficulties since it allows businesses to use up-to-date information from inventory analyses (based on their sales trends and vendor lead times). Your business may submit purchase orders directly to suppliers by utilizing Inventory Planner in conjunction with Skubana. It can also track pending orders and expected delivery dates and display its inventory requirements in one location.

Shopify POS

With the aid of Shopify POS, current Shopify users may create POs and transfer goods based on predicted inventory levels and past performance. Businesses can track incoming and outgoing inventory using this software, move goods between locations, and (on specific plans) do ABC inventory analysis to identify high-priority items. To further improve their online stores, e-commerce merchants can also integrate Skubana with Shopify. You can control inventory information from your Shopify account and sync everything in a single system through this union.


If you want to stay ahead of the competition and provide your customers with the desired experience, inventory management is essential whether you’re a physical store, eCommerce business, or multichannel company. You won’t succeed without inventory analysis.

Choose an e-commerce platform that enables you to integrate your store’s inventory management across all channels, or opt for inventory software that masters the fundamentals of inventory management and serves as a driver for your growth.

Oct 7, 2022 by Aayushi Sharawat

7 min read

Warehouse Management Software vs. Inventory Management – Which One Do You Need?

October 6, 2022 by Danish Khan - 7 min read

warehouse management

Several factors and departments contribute to the success of a business or a company. You have accounting, business development, sales, public relations and marketing, among other essential departments in running a business. 

There are also aspects of running a business that business people often overlook. One that not a lot of businesses think about is warehouse and inventory management. It’s no wonder inventory is only 63% accurate on average, causing many problems for businesses.

Warehouse and Inventory Management in the Digital Age

Warehouse and inventory management plays a crucial role in business growth in today’s day and age. The terms inventory management and warehouse inventory management are frequently misused and confused in the logistics sector. Despite the fact that both inventory management and warehouse management are crucial for keeping track of and managing stock, they differ in a number of ways. 

Warehouse management is restricted to keeping an eye on the stock in a warehouse or storage facility and does not cover the entire business, whereas inventory management operates on a much larger scale. Both of them may refer to the management techniques a company employs to distribute its goods.

Before determining which one to use for your business, let us look at the benefits of using either of the two management systems.

Benefits of Digitizing Your Warehouse and Inventory Management

Digitalization of warehouses

Digitizing your warehouse inventory management or using an inventory management system will definitely make your business more productive and profitable. Here are some of the benefits of digitizing your warehouse and inventory management.

Optimize logistics costs

The process of organizing and carrying out the effective storage and transportation of goods from the place of origin to the point of utilization is known as logistics. Providing timely and cost-effective customer service is the aim of logistics. When you digitize your warehouse and inventory management, you can lessen the cost without negatively affecting the quality of your logistics department. 

Having pre-shipment inspections is a mark of having effective logistics operations. It describes the procedures used by sellers to examine recently produced or sourced goods before they are shipped to the final client. When you digitize your warehouse and inventory management, you check the quality of the products, and the quantity of the goods, find any defects in the pieces, ensure that the safety requirements are met, and look for any inconsistencies in billing with lesser time but greater accuracy.

Lesser errors

Given that some manual labor is involved, it can be challenging. This is a major reason why digitizing your warehouse and inventory management is very important. While it is expected that there will be errors in our processes, if you want to increase customer satisfaction, you should aim to lessen or even eliminate errors in delivering your products and services to your customers. 

Order accuracy refers to the number of orders you completed and accurately shipped to the customer’s door. Given that it is directly related to the customer experience, it is a crucial metric to monitor. 

Faster service for clients

When you digitize your warehouse and inventory management, you are definitely managing inventory the smart way. The effect of managing your inventory in a smart way is bringing faster service for clients, which often ends in higher customer satisfaction. This is a simple picture of how warehouse and inventory management affects sales and customer experience. 

And if you pair it up with Pipedrive, a sales and CRM platform that assists sales teams in better managing their sales pipelines, you can guarantee that your clients experience the highest possible quality of service you can offer. 

What is Warehouse Management Software?

Software that controls daily warehouse operations is known as a warehouse management system. A stand-alone program or warehouse management software can offer the best solutions for enhancing output, reducing costs, and ensuring customer satisfaction. When spreadsheets are unable to manage replenishment and fulfillment tasks, businesses turn to a warehouse management solution. A WMS is used by managers to define or standardize picking, packing, and shipping tasks as well as obtain detailed information on stock levels. The system tracks the delivery of goods to customers from the warehouse.

Key Features of Warehouse Management Software

Some of the key features of a warehouse management system are the following:

  • Records and keeps an eye on the inventory that is present in a warehouse or storage space. With a warehouse management system, you get to see more specific details of your product’s inventory like size, color, location, expiration, arrival, etc. 
  • Evaluates profitability, product cost, production movement, and sales trends. The best warehouse management system can also provide the data and analytics of your whole inventory because it involves a specific warehouse. It can provide you the correct information for better decision-making. 

When You’ll Need Warehouse Management Software

You will be needing a warehouse management system if you want to improve your business process and scale your company. When you have growing demand, you need to grow your supply and it follows that you need a better system to check the condition of your products. 

The best warehouse management system equips companies with the resources they need to remain legally compliant and competitive. Real-time data recording and tracking, improved business intelligence, and business process automation tools are used to achieve this. Not only can the right warehouse management system help you sell more, but it can also help you sell to happier customers more quickly and accurately.

What is Inventory Management Software?

Software that controls the delivery system and supply chain is known as an inventory management system. It is a group of procedures that handle inventory management, demand forecasting, supply chain management, and reverse logistics. In most cases, it comes before warehouse management. 

An inventory management system is used by businesses to manage finished products for retail and manage raw materials for manufacturing. Stock level, economic ordering volume, price of goods, stock turnover, consumer-managed inventory, and vendor-managed inventory are some of the tools used in inventory management.

Key Features of Inventory Management Software

Some of the key features of inventory management system are the following:

  • Tracks and monitors a company’s overall inventory or stock. It gives you an overall view of your company’s overall inventory. 
  • Gives you the raw computation of profitability, inventory costs, production trends, and sales trends. An inventory management system provides you with a current and updated condition of all your inventory. 
  • Aids in focusing on completing orders by keeping track of inventory levels. Provides accurate information to enhance inventory management. 

When You’ll Need Inventory Management Software

The extent to which inventory management is required varies by industry, but the majority of these concepts remain the same. Inventory management is most beneficial to small businesses when all of the details are grasped. Using an inventory management system will help you minimize investment in remaining inventory, rental, shipping fees, and reverse logistics. 

E-commerce stores require warehouses as a point of contact between customers and suppliers. You need warehouse inventory management to make the most profit out of your inventory and ensure that your products do not go to waste. 

E-commerce Growth Depends on Better Fulfillment

69% of customers will no longer shop with a brand if they miss the promised delivery date by two days. That shows that better fulfillment operations are necessary for business growth. Warehouse and inventory management play an important role in fulfillment. So to improve those two will directly impact your whole e-commerce operation positively. Whether you choose to use an inventory management system or warehouse management system, you can find plenty of systems out there that you can smoothly integrate with ERP systems. Many businesses implement ERP to oversee all their processes. And ERP systems are not just for large enterprises, but also smaller ones.

Oct 6, 2022 by Danish Khan