1 min read

Warehouse Trends To Watch For In 2023 [Infographic]

September 21, 2022 by Malika Sanon - 1 min read

In the wake of the pandemic, the modern warehouse industry is going through a facelift. As having an optimized warehouse system is vital for your eCommerce business. 

With the rapid evolution of new technologies, the world will transform dramatically, allowing your warehouse and supply chain to take leverage of the same and increase profits. 

Warehouse Trends
Sep 21, 2022 by Malika Sanon

3 min read

How to Choose a Warehouse Racking System?

September 14, 2022 by Aayushi Sharawat - 3 min read

Proper inventory management is essential to simplify warehouse operations in today’s fast-paced and fiercely competitive world. The correct warehouse racking system can help with this difficulty, one of many that warehouse professionals must overcome.

What Is A Warehouse Racking System?

A warehouse racking system is a storage solution made to stack materials in multiple-level, horizontal rows. These can assist you in sorting goods to simplify operations while managing and making better use of your warehouse.

Factors When Selecting The Right Racking System

Every warehouse has a unique set of specifications. The proper racking system should be able to maximize space usage without impairing operations, particularly considering the following:

  • Budget – Consider the approximate price per pallet when ensuring that the racking system meets all your needs. Budget is important when considering which racking system is the best for your warehouse.
  • Floor Utilization – A racking system’s capacity to make the most of available warehouse floor space.
  • Storage Utilization – The amount of room the racking system can hold. Your cargo’s quantity, size, and weight will determine how much storage you require.
  • Forklift Accessibility – The capacity for forklifts used for oversized freight. This takes into account the aisle width needed for forklift manoeuvrability.
  • Versatility – Racking systems’ capacity to hold a greater variety of items.
  • Inventory Management – Consider the sequence in which the warehouse needs its inventory retrieved.

Different Warehouse Racking Systems

Selective Racking System:

Due to its low cost and comprehensive range of sizes and attachments, the selective racking system is used the most often. This racking system works well for ordinary storage in all situations where quick product access is required.

Narrow Aisle Racking System:

Compared to selective racking, narrow aisle racking provides better access to every pallet. The warehouse storage racks create high-density storage by better using the floor space and roof height.

Drive-In Racking System:

The drive-in racking system provides your warehouse with the highest possible product density. It is excellent for storing multiple quantities of goods in a small space and eliminates aisles in a warehouse facility.

Double-Deep Racking System:

The double-deep racking system is a variation that offers a nice boost in density but necessitates specialized equipment and is slower to use. This is the best alternative to a high-density racking system.

Pallet Flow Racking System:

Pallet flow racks are high-density storage that combines elevated rails with moving parts like conveyors and gravity rollers. These storage racks for warehouses rely on gravity. This racking system is better suited for products with short shelf lives and can double or even quadruple your warehouse’s storage capacity.

Push Back Racking System:

The push-back pallet racking system provides more pallet storage while preserving superior selectivity, making it simpler to find, pick up, and store items. In this type of racking, different lanes are used for each SKU. The front loading/unloading method used by push-back warehouse storage racks avoids the need for additional aisles.

Narrow Aisle Racking System:

Compared to selective racking, narrow aisle racking provides better access to every pallet. The warehouse storage racks create high-density storage by better using the floor space and roof height.


Due to the vast range of racking systems available in the market, selecting the best warehouse racking system frequently proves to be a tiresome task. The easiest method to prevent feeling overwhelmed by this activity is to consider the reasons mentioned above and maximize your space for effective inventory management and warehouse operations by choosing a suitable warehouse racking system.

Sep 14, 2022 by Aayushi Sharawat

4 min read

Smart Warehouse Technology To Use In 2022

September 7, 2022 by Malika Sanon - 4 min read

Day-to-day warehouse management can cost a lot of money, effort and time. It is one such arena continuously growing in need and is still one of the most neglected areas. 

This can negatively impact the functioning of the warehouse and the supply chain, which could further result in loss of sales, shipping delays and so on.

Smart Warehouse

In this modern age of technology, you can leverage innovation and implement warehousing measures that’ll improve your operations and increase efficiency. Technology has contributed to powerful advancements in how warehousing managers orient their resources and interact with their customers.

People use technology to utilize their resources in a better way and make their operations seamless and straightforward. Technology also plays a crucial role in enabling businesses to scale by implementing their resources better.

Imagine how much potential an automated warehousing system has and how much value it can add to your business. It can fast-track operations, notify you about real-time inventory status, and ultimately help keep customers happy with your fast and efficient services. 

What Is A Smart Warehouse & Why Do You Need One?

An intelligent warehouse will be an updated version of a warehouse with multiple technological advancements. Installing smart technologies will help your business produce better profits. This would further enable you to optimize operations.

What IS A Warehouse

There can be many benefits of having a smart warehouse, and here are a few of them listed below-

  • Smart warehouses can help automate processes, thereby improving the efficiency of the workflow and reducing the risk of error.
  • With the help of technology, you can process and use data better to study consumer behaviour, market trends, and much more. 
  • You can assess and manage your business requirements better with the help of smart warehousing.
Types Of Smart Warehouses

Comprehensive Management System 

The warehouse management system, or WMS, is software designed to fit your business’s needs, and this can change how you manage your warehouse entirely. 

This software contains all necessary information and updates about your business – including real-time updates about orders, order processing, shipments, delivery, inventory and much more. This will also give you a bird’s eye view or visibility of what’s going around your business at any time. It also makes all data available to your network, helping automate most things for your business. 

IoT In Warehouse

IoT helps you to synchronize data in just one platform and helps you with inventory control. With IoT-enabled inventory management systems, managers can quickly realize when to restock their inventory in advance. 

Not only this, IoT also helps in keeping goods safe from theft, damage and much more. Similarly, using devices such as temperature sensors can help prevent your goods from perishing due to inadequate storage conditions. This can be really important for you if you deal in cold chain products. There is only so much that one can do manually. But relying on technology can make it more convenient, efficient, and flawless!

Automation In Warehousing 

With Automated Mobile Robot (AMR) technology, you can reduce the need for manual labour and replace it with reliable and fast-paced robots. These robots are usually even better than their human counterparts. And there are already robots that can perform tasks like picking up items, packaging, picking pallets and transporting them, and more. 

More simple AMRs are mentioned below-

  • Driverless Forklifts – Can be used to pick up heavy pallets, drive to the desired location, and drop off the goods carefully. 
  • Conveyor Belts – Quickens the pace of the movement of goods.
  • Drones – Can be used to pick and drop goods from one location to another without disrupting other tasks.

Blockchain Technology 

Most of us get intimidated when we think about blockchain technology. It is only because we are unaware of what it is and how it can help us! Blockchain is an innovative way of record-keeping that can be implemented in a warehouse to improve operational efficiency and security. This method can ensure data security and can also make record-keeping tamper-resistant. 

Competing businesses can often resort to methods like hacking data to understand the progress or harm your business by putting false data, and blockchain can prevent your systems from getting tampered with. This will also lead to improving accountability in the workplace and not to mention increasing transparency. 

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 options. 

Not just this (Shiprocket Fulfillment Testimonial), the right technology stack like warehouse management systems, order management systems, and logistics operations to enable your business for expedited deliveries. We are also equipped to reduce your order-to-ship time and meet the stringent requirements of marketplaces.

Sep 7, 2022 by Malika Sanon

6 min read

Meaning and Formula of Average Revenue Per Unit (ARPU)

August 25, 2022 by Srishti Arora - 6 min read

You already know that tracking data is essential for running your eCommerce business. However, tracking some data points can be more important than others. You need to watch your performance metrics closely in order to stay focused on areas of improvement and keep a close eye on your overall financial health. What drives performance in any business? Revenue. Knowing the amount of revenue produced from the products you sell is crucial to the success of your business. This metric shows how much you’ve sold, how well you’ve priced your products, and whether your business is growing or shrinking. If your goal as an eCommerce business owner is to boost your revenue, then you need to understand ARPU. It’s far more than just an average; this KPI encompasses multiple vital metrics that can give you a clear overview of how your business stands. Keep in mind the benefits of accurately measuring and improving it. Let’s look at average revenue per unit, how you can calculate it, and its importance for your eCommerce business

What is Average Revenue Per Unit?

The average revenue per unit (ARPU) is a vital eCommerce and inventory management KPI measure. It tells you how much you’re earning on average from selling one unit of inventory and can also be used to measure the amount of revenue you generate from each subscriber or user.

ARPU is employed mainly by media and streaming companies, phone carriers, internet service providers, and software-as-a-service companies. It can also be used for subscription box services and membership-based eCommerce businesses. Consequently, it’s an essential metric for managing inventory management, but it’s also helpful in calculating performance from individual product sales that can’t be measured.

The Formula of Average Revenue Per Unit

The following formula is used to calculate your total revenue divided by the total number of units sold:

Average Revenue Per Unit = Total Revenue / Total Units Sold

Importance of Calculating Average Revenue Per Unit

There are many benefits to calculating your average revenue per unit. Improved profitability, increased revenue, and better decision-making is all-inclusive.

Managing SKUs Accurately

You can improve your SKU management process by using SKU tracking with your average revenue per unit. This gives insight into the profitability, how fast each SKU is selling, and which ones need step-ups in a promotion or which to cut altogether. SKU rationalization is a process where you identify, replace and discontinue SKUs that aren’t profitable. Using ARPU can help optimize the process because it will allow you to understand what items to discontinue quickly. For example, it could be discontinued if an item has a low SKU count and ARPU. This will allow you to save time on procurement and reduce the cost of holding the SKU.

Future Revenue Growth Projection

Businesses need to make projections to plan and strategize. Without this, you can’t accurately predict the future. The average revenue per unit plays a vital role in helping businesses project revenue growth for the future. This calculation involves multiplying your ARPU with your projected acquisition and retention numbers. Accurately forecasting your revenue enables you to manage your credit flow better and plan. If you predict in advance, you can determine whether you’ll have to take out more credit or just have access to capital. Accurately forecasting also allows you to forecast future demand, which is essential for production and procurement.

Identifying Opportunities to Increase Revenue

Revenue per unit is a great way to identify opportunities for revenue growth. The metric tells you which products are good at generating revenue. You might want to include popular items in smaller box subscriptions to increase revenue. You can also bundle slow-selling SKUs with higher ARPUs. Fulfillment providers like Shiprocket Fulfillment can help you bundle orders and ship them faster to customers. 

Improving Inventory Management

You can measure your ARPU by finding the average of your revenue for a unit. Your ARPU is relevant because it tells you how much profit you are getting from one item. You want to work with a higher ARPU if you’re going through less supply and more inventory-holding costs. When you have too much inventory, the rise in risk leads to dead inventory sitting on your shelves; this decreases revenue per unit because the excess inventory is more expensive. Inventory management makes it easier to see if any slow-moving SKUs need to be discontinued and identify SKUs with better profitability and inventory turnover. This will allow you to determine the minimum order quantity for each unit, which is essential for maintaining optimal inventory levels across warehouses and fulfillment centers.

Optimizing Pricing Strategy

Calculating your average revenue per unit is an excellent way to check your pricing strategy. If you notice that your prices are too low, you may need to reassess the pricing of your products in order to optimize for profitability. For eCommerce businesses that are scaling, it is vital to have a pricing system that changes over time. Knowing your average revenue per unit is essential so you can set a baseline and make decisions. Ensure that your pricing strategy is well thought out and considers how your competitors are doing. With careful planning and consideration, you can increase prices without losing customers.

Identifying Areas to Reduce Cost

Understanding your ARPU is essential because you may need to adjust the number of items you purchase to improve it. For example, if you find that your cost of inventory is reducing your revenue, you may want to reduce the number of items in your store and try re-evaluating how much money that frees up for customer service. When looking at your ARPU and the costs incurred, there are many opportunities to lower your costs. You should examine your ARPU in coordination with the expenses incurred. If the cost of holding inventory is affecting your average revenue per unit, it might be time to take action – like reducing inventory levels or better forecasting demand.

Average Revenue Per Unit vs. Customer Lifetime Value

Sometimes people get confused between ARPU and the LTV. While the two metrics have a deep connection, they have different purposes. A unifier for this difference is that ARPU focuses primarily on how much revenue you generate from an individual customer. In contrast, LTV focuses on how much revenue you will make from future profits from that customer.

Customer lifetime value calculates how much each customer is worth over a certain period.

Meanwhile, average revenue per unit is used for measuring the revenue generated from making sales from inventory on a unit basis.

The factors to calculate LTV include refund rates and transaction fees. These elements determine LTV by using this formula:

Customer Lifetime Value = (Lifetime Spend – Variable Costs) / Total Number of Customers Acquired

Final Thoughts

When it comes to a subscription business model, measuring ARPU is critical. It’s the number that will allow you to make intelligent decisions about pricing and future marketing efforts. As you run your subscription business, take the time to track your ARPU to see how your marketing efforts are impacting your bottom line.

Aug 25, 2022 by Srishti Arora

6 min read

What is Order Cycle Time and Its Relevance?

August 19, 2022 by Srishti Arora - 6 min read

As more companies enter the eCommerce market, it has become significantly more competitive in recent years. With so many companies trying to steal your customers from you, you must find ways to differentiate your brand. One of the best ways to do this is by improving your customer experience and order process. One way to improve the order experience is by reducing the time between when a customer places an order and when they receive it. Businesses of all shapes and sizes rely on rapid order fulfillment to drive customer satisfaction, repeat business, and sales. While most customers are satisfied with the time it takes an online retailer to ship their orders, there is always room for improvement. Causing frustration among your buyers could harm your brand and lead to poor product ratings on eCommerce sites. One of the crucial factors that can make or break your business is your order cycle time. If your business is not optimizing this key metric, read the post to learn its importance and how you can improve it for your business.

What is Order Cycle Time?

The order cycle time refers to the average time it takes to ship an order, excluding the shipping time. This is important because it helps you measure your operations and how efficient they are. 

Significance of Order Cycle Time

Order cycle time is a factor for measuring a company’s efficiency. The shorter the order cycle time, the more quick and sensitive a business is to customer orders. 

Help Detecting Discrepancies in the Supply Chain

The order cycle time is helpful when auditing the supply chain process to identify any inefficiencies or discrepancies that need to be optimized or removed entirely. One example of inefficiency is manual order receiving, which can be time-consuming and prone to errors. 

Understanding Customer Satisfaction

You should try to produce a fast order cycle time. You may increase customer satisfaction by delivering a seamless fulfillment experience. An extended order cycle time will result in fulfillment delays and an increase in dissatisfied customers. A long cycle can lead to fulfillment delays and delivery times, irritating customers. A shorter order cycle time will enable you to deliver a seamless, more likely to be satisfactory service.  

Gauging Readiness to Scale

A short order cycle time indicates whether or not you’re ready for the next step in your business. To expand your operations, you need a supply chain that can handle more orders without affecting overall performance. A short order cycle time may be a good indicator of your readiness.

Order Cycle Time Formula

The order cycle time can be easily calculated with the formula below – 

Order Cycle Time = (Delivery Date – Order Date) / Total Orders Shipped

If a company is making this calculation for a specific time, they need to look at the date the customer received their order and the date on which the order is placed. The number of orders shipped refers to the amount of orders shipped within that specific time frame.

Tips to Improve Order Cycle Time

Measure Cycle Time

The company’s order cycle time varies over time, especially with changes or disruptions in the supply chain. For example, an unexpected delivery exception can result in a much longer order cycle time than usual. Or you may notice a much shorter order cycle time after implementing an automated system to improve your warehouse receiving process. Poor customer service can also lead to long order fulfillment times because the staff is too busy with return transactions. Managing variable factors throughout the supply chain is a challenge that many companies face. Supply chain variables determine how long it takes to complete an order. If you’re consistently monitoring the process, you can reconsider your supply chain practices and make things go faster. For example, if you implement a new process, you need to evaluate whether or not it’s working efficiently by looking at order cycle times.

Define Protocols and Limits

Setting up guidelines on your fulfillment process is important to provide your employees with a guide. For example, limiting the size of batches will speed up the process, and items can quickly be picked or shipped. You may also set limits on when to place inventory reorders so there are no late backorders. It is vital to address orders stuck in transit as soon as they occur, especially during last-minute deliveries. To improve your customer’s experience, you should create a protocol to follow up and work on the order when it is delayed or can not be delivered. Being transparent with your customers will help you maintain a positive customer experience. Setting realistic expectations helps lower customer stress levels and leads to a better experience.

Work On Warehouse Flow

Slowing down the order processing times can result from bottlenecks in warehousing. For example, can pickers easily find items? Is the warehouse spaced adequately so that they can move around quickly? Are all these parts too far from the pickup area? All these roadblocks add up and slow down order processing time. By identifying these inefficiencies, you’re able to reduce order cycle time. Start by measuring your warehouse KPIs and looking for opportunities to make improvements. You may need to optimize your warehouse setup and use warehouse slotting to make the most available space and improve picking efficiency.

Outsource Fulfillment Operations

The easiest way to speed up your order cycle time is by outsourcing the fulfillment process to a third-party fulfillment partner. Finding a third-party company that outsources fulfillment will offer you faster turnaround times and expense control. Ideally, look for a tech-enabled 3PL that can automate significant portions of the fulfillment process. For example, a 3PL will integrate technology into your online store, which will work closely with their warehouses and fulfillment centers. This way, an order will be received in their warehouse or center as soon as possible. Automating these processes will reduce human error and also minimize the need for manual input. This will result in orders being shipped out in a matter of hours, just a few days after purchase, so you can provide the best-personalized customer service experience possible.

How Can Shiprocket Fulfillment Help?

Shiprocket Fulfillment can process your orders with 99% accuracy and deliver them to customers 3X faster along with same-day and Next-day delivery. Shiprocket Fulfillment can help your business as we do the picking, packaging, and shipping of products on your behalf. Using a 3PL provider, you can reduce shipping costs, offer faster deliveries, decrease ordering errors, and create repeat buys.

Final Thoughts

As you can see, improving your order fulfillment times can effectively retain customers and increase conversion rates, so eCommerce businesses need to pay attention to their order management processes. You can offer better service, lower shipping costs, and improve customer experience by optimizing your entire order process, from purchase orders to shipment delivery.

Aug 19, 2022 by Srishti Arora

6 min read

Optimizing Your Inventory With Warehouse Putaway

August 16, 2022 by Srishti Arora - 6 min read

It’s become increasingly crucial for brands to provide consumers with a seamless, personalized shipping experience. Warehousing and logistics are essential because they provide the foundation for any successful ecommerce business; it’s where inbound and outbound materials need to be stored until processed by your store. This means that warehousing and inventory management is key to any online business because it impacts shipping times, inventory accuracy, shipping costs, and more. Warehouse putaway strategies are one of the first ways that you can maximize and optimize your warehouse inventory. The best part about these putaway strategies is their flexibility, as each can be used together for more significant results. Optimizing your warehouse inventory with putaway software helps drive efficiency and accuracy in your inbound and outbound logistics. Warehouse putaway is a manual task that could be streamlined to remove errors, increase speed and optimize the picking process. To ensure a more accurate workflow and more efficient distribution, warehouse putaway will significantly impact the efficiency of your operation.  

In this article, let’s look at warehouse putaway, its types, advantages, and best practices for success. 

What is Warehouse Putaway?

When running a warehouse, putaway is one of the most crucial aspects of warehouse management. Putaway involves several processes, from receiving inventory to ensuring that inventory is stored in the correct warehouse locations

Instituting a strategic warehouse putaway system can lead to a more efficient, tidy, and well-organized place for your inventory. This leads to better customer service as it becomes easier to locate the proper SKU. 

Types of Warehouse Putaway

Warehouse putaway is an integral process of warehousing, especially considering the many factors that must be regarded to run successfully. There are three types of warehouse putaway, based on what you need.

Dynamic Putaway

If your products are similar in size, weight, and other characteristics, then you should use dynamic putaway to make retrieval and storage easier. This involves real-time decisions about where to store the inventory and prioritize demand management.

Incoming inventory is placed in the most convenient location for fast pickup, increasing demand management. In contrast, goods are stored in different areas each time, making it more challenging to manage without robust ERP software.

Fixed-Location Putaway

This storage process is ideal for retailers with many goods that must be stocked in their warehouses. Each h category is assigned a specific warehouse space for storing goods. When stocking the warehouse, depending on the size or content. For example, frozen food is always held in temperature-controlled areas, and heavier goods are stored on the lower shelves.

​​Direct putaway

The moment goods reach the warehouse, items are put away and sent off to their final destination. With direct putaway, goods should be ready and not need transitory storage. This improves efficiency by reducing unnecessary delivery handling and movement.

Advantages of Warehouse Putaway

Proper Use of Storage Space

With a warehouse putaway and slotting strategy, you can save space and stock by ensuring they are stored safely in the appropriate location. You can reduce the stress of keeping material by using your design to save space. It also enables improved productivity as well as efficiency within the warehouse. Knowing where each good goes, the warehouse employees can store them safely. In addition, this dramatically reduces the chances of any goods being stolen or misplaced.

Reduce Lost or Misplaced Items

A stringent process for restoring restocked inventory can improve your ability to know where each SKU is. By being able to see the position of your inventory, you are also able to better track and avoid instances of misplaced or pilferage SKUs. Warehouse workers who use the putaway process can quickly account for what is there, making it easier to identify if an item has gone missing.

Efficient Picking

To improve productivity and delivery, stock your best products in easy-to-access locations. It will also help to know where each item is located. This speeds up the process and ensures faster deliveries, guaranteeing customer delight.

Best Practices For Warehouse Putaway

Reduce Traveling Time

Accuracy and convenience is the key to a successful picking system. To make the picking process fast, place popular items near pickers and know where they are. This guarantees a shorter order cycle time. 

Create End-to-End Timeline

Warehouses are buzzing with activity. Once goods are replenished, they must be put away as soon as possible. The faster customer orders can be fulfilled, the better chance to get what they want. Clear directions and timelines for the warehouse putaway process must be communicated to employees to distribute their workload across the floor evenly.

Track Items Efficiently

Warehouses need to use the best-practice technologies to keep track of each product. This is so that the workers can be focused on other tasks and know where everything is at all times. When products are received, barcode scanned, and put away, you will get real-time updates of the SKU count, condition, and location. This makes it easy to find and dispatch the right items whenever customers place an order.

How Can Shiprocket Fulfillment Help?

3PL providers can help to delegate operations and reduce costs with a significant degree of efficiency. It’s easy to find fulfillment services. Shiprocket Fulfillment gives you the best rates and the closest service to your buyers. You can ship your inventory for quick pick and pack, saving time and money. This technique will reduce your costs and efficiency, increase shipping speeds by 3X, decrease shipping weight discrepancy issues, and reduce Return To Origin (RTO) time. With less time spent on shipping, you can complete more orders in a shorter period. This improves your business and allows you to expand.

Final Thoughts

There are, of course, a few other things to improve your warehouse putaway and increase inventory organization. However, the steps outlined above are probably the most important ones to keep in mind as you look to optimize your inventory storage. The more organized a warehouse can be, and the quicker a picker can find what they’re looking for, the better your overall fulfillment process will run.

Aug 16, 2022 by Srishti Arora

5 min read

Understanding the Growth and Impact of Digital Warehousing

May 4, 2022 by Srishti Arora - 5 min read

The concept of warehousing has evolved tremendously over the past few years. Especially after authorities imposed several lockdowns due to COVID-19, warehousing has gathered an altogether new meaning in the supply chain of various eCommerce businesses. Being an integral aspect of any brand’s operations, warehousing, supply chain management, and eCommerce fulfillment have grown to become more than just a space, warehouse racks, forklift, etc. 

Growth and Impact of Digital Warehousing

The digitization of warehouses has become necessary for businesses to make operations more efficient, improve customer experience, and improve their capabilities.

Intelligent warehouses are the future, and businesses are slowly adopting the concept of speed, automation, visibility, and transparency in their eCommerce supply chain

Let’s look at what digital warehousing is and its scope in our supply chains. 

What is Digital Warehousing?

Digital warehousing uses modern technology and optimization to improve warehouse processes and workflows.

Digital warehousing improves speed and accuracy, and transparency. 

Today, several brands outsource their operations to tech-enabled fulfillment centers to flexibly scale their business. 

How is Digital Warehousing Different from Traditional Warehousing?

Traditional warehousing is storing eCommerce inventory in a designated warehouse space until the items are fulfilled. 

Usually, the inventory is put away in these warehouses where it is inefficiently managed, which often causes a delay in order processing, and there is a lack of information transfer between different warehouses and locations. 

In digital warehousing, warehouses are optimized with the help of technology to automate operations, record data in real-time, and increase the speed and efficiency of fulfillment. 

Under digital warehousing, businesses or 3PL fulfillment centers utilize warehouse and inventory management systems to share data with different stakeholders in real-time. This helps in integrating the supply chain and optimizing operations for your business. 

Advantages of Digital Warehousing

Benefits of Digital Warehousing

Improve Efficiency

The first and foremost advantage of digital warehousing is the improvement of efficiency. When you optimize and automate operations in your warehouse, the dependency on manual labor decreases, and you can conduct operations in a much more streamlined manner with arrow centralization between different components of your supply chain. This helps you reduce the order to ship time, and you can improve your order accuracy tremendously. 

Increase Visibility

When you share data in real-time with different stakeholders in the supply chain management process, it helps improve visibility across channels. Digital warehousing improves visibility by utilizing warehouse management and inventory management systems to track data and records in real-time. 

Promote Integrated Systems

Several moving parts are added and subtracted when your supply chain grows with your eCommerce business. You need to have direct touchpoints with every component, from receiving inventory to picking, shipping, and even managing returns.

With digital warehousing, you can promote an integrated operation system where data is shared continuously throughout the supply chain. This type of complete transparency enables you to track inventory stored in multiple fulfillment centers, know when to reorder stock, and access inventory levels. 

The Scope of Digital Warehousing

Digital warehousing is slowly becoming a known phenomenon among D2C eCommerce businesses growing in India. Let’s have a look at the scope of digital warehousing

Real-Time Information Transfer

Digital warehousing will promote real-time information transfer throughout the supply chain, which will enable businesses to make decisions much faster and optimize their warehousing and fulfillment operations. This will allow access to inventory stored in multiple fulfillment centers so that companies can avoid situations of stockouts and dead inventory accumulation. 

Warehouse Management Systems

Next, digital warehousing will incorporate the use of warehouse management systems that will help optimize the layout of the warehouse, formulate intelligent routes for picking executives to reduce the processing time, integrate the order management system on the website with the warehouse management system in the location to update inventory level in real-time, keep track of incoming orders, etc.

Forecast Demand

Digital warehousing will bring to life the concept of demand forecasting, where sellers can forecast the demand at different times of the year based on past trends, inventory levels, etc. this will help plan for the season better and maintain inventory levels according to the data rather than guesswork. 

Automation in the Warehouse

Automation within the warehouse will enable faster processing times and improve delivery, logistics, and return management. This will enhance customer experience by a considerable margin as the executives working in the warehouse will be able to process orders quickly and without errors. An improved order accuracy will help improve your successful deliveries and reach customers faster. 

Real-Time Inventory Management

Last but not least, digital warehousing will enhance real-time inventory management that will help you keep track of your inventory at different levels, avoid occurrences of discrepancies, and avoid situations of stockouts. 

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How Can 3PL Fulfillment Providers Help?

Even though digital warehousing might seem like a lucrative concept that you would want to apply to your eCommerce business, it is no secret that it involves a lot of capital investment. Automating your warehouse might seem the solution to many of your problems; however, sourcing systems can become difficult. 

This is where 3PL fulfillment providers come into the picture. 3PL fulfillment providers like Shiprocket Fulfillment have multiple fulfillment centers located across the country equipped with the latest warehouse management and inventory management systems. They provide you with complete visibility across fulfillment centers and let you outsource order fulfillment entirely or partially. 

With 3 PL fulfillment providers, you can achieve the success and benefits of digital warehousing without investing in its physical aspect. Without a doubt, 3PL fulfillment providers like Shiprocket Fulfillment help you reduce order processing time, delivery time, shipping costs, and RTO. 

Final Thoughts

Digital warehousing is the next big thing for eCommerce in India. If you are not automating systems for yourself, you live under a rock. It is time to upgrade and bring your eCommerce business to par with the leading brands. 

Shiprocket Fulfillment - Top fulfillment provider in India
May 4, 2022 by Srishti Arora

5 min read

A Closer Look At Warehouse Racking Systems And How To Include Them

April 20, 2022 by Srishti Arora - 5 min read

For every small business, there comes a time when your incoming orders are growing, and you need to move to a larger space to store your inventory. That’s when you decide to transfer stock to a full-fledged warehouse!

Warehouse racking systems and how they work in eCommerce fulfillment

But before you do so, you need to analyze how you will store inventory in one place. Randomly placing inventory in a warehouse will only lead to more complications like delay in order processing, accumulation of deadstock, and instances of stockouts. To organize inventory properly in your warehouse, you need to have the correct equipment. This is where warehouse racking systems come into play. They are specialized equipment designed to store inventory in your warehouse or storage space efficiently. 

But, they aren’t straightforward to decipher. You need to have a hang of the correct type to determine how they will benefit your eCommerce business. Let’s look at what warehouse racking systems are and how you can set up a warehouse racking system for your business.

What is a Warehouse Racking System?

Warehouse racking systems are storage systems used in warehouses to store inventory

They consist of warehouse racks and shelving units made of metal and designed specifically to contain boxes or pallets in multiple rows and columns horizontally and vertically. 

Uses of Racking Systems

E-commerce businesses mainly use warehouse racking systems to improve their warehouse storage.

Suppose you have a warehouse with considerably lower floor space. You can utilize racking systems to develop storage by adding shelves and pallets to make a cost-effective solution without paying for the square footage. 

Racking systems can also help you optimize inventory and make it more organized as it has dedicated storage space for each SKU. 

Suppose you are just transitioning from a garage or home storage to a warehouse with limited capacity. In that case, you can utilize shelving racks and storage bins to improve your inventory management and optimize picking operations

How to setup a warehouse racking system

Tips for Setting Up a Warehouse Racking System


When setting up a warehouse racking system, the first thing to keep in mind is spacing. You need to ensure ample space between the racks to make all the products accessible. To improve picking efficiency, you must not start racks close to each other to improve picking efficiency.


The next important thing is the aisle width. Usually, in warehouses where you have stacked products on top of each other, the aisle width must be such that forklifts or jacks can quickly move around safely and efficiently. 


To improve the efficiency of the warehouse racking system, it is essential to follow a consistent labeling system to organize your inventory. You can label the products as you deem fit, but usually, it is advisable to do it based on the picking practicality. You can store items commonly purchased in the beginning and closer to each other, and the seasonal products can be stored farther. 


Finally, it is essential to plan the warehouse layout to ensure that you maximize it on the space provided. Create a design for the warehouse racking system so that you can go through it over again to accommodate for the obstructions, etc. 

What is a Shelving Load?

The shelving load is defined as the maximum weight on an individual shelf. The total sum of the shelf load must not exceed the bay load. 

How to Calculate Shelving Load?

To calculate the shelving load, you need to factor in different parameters. They are as follows – 

Upright capacity 

Upright capacity refers to the upright racking system’s height, weight, and spacing. 

Beam capacity

Beam capacity is the rack’s depth-to-length ratio and the thickness and length of each beam. 

Height of each pallet position

It is from the top of one beam level to the top of the next. 

Number of storage levels

These are the number of storage levels in a racking system. 


Material refers to the quality, thickness, and strength. 

SR Fullfilment

Carry Out Warehousing With the Experts

Most small businesses suffer because they have difficulty transitioning from a small space to a large warehouse. Even though an efficient tracking system can help you reduce the workload and improve efficiency by a considerable margin, it is still a significant investment and maintenance for your business. A common misconception in e-commerce SMEs is that outsourcing fulfillment operations will cost you a lot. 

Think about it – 

If you install elaborate racking systems, work with inventory and warehouse management software, and hire labor to carry out these day-to-day operations, would it not be more expensive than outsourcing it to a 3PL fulfillment provider?

You can save on fulfillment costs by outsourcing your fulfillment operations to 3PL fulfillment providers like Shiprocket Fulfillment.

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

Not just this, Shiprocket Fulfillment offer you the right technology stack like the warehouse management systems, order management systems, and logistics operations to enable your business for expedited deliveries. We are also equipped to reduce your order to ship time and meet the stringent requirements of marketplaces. 

Final Thoughts

With the right warehouse racking system for your business, you can save on costs and improve the efficiency of operations. However, you can forego this process if you outsource 3PL fulfillment providers. Understand your business requirements and decide accordingly. 

Shiprocket Fulfillment features
Apr 20, 2022 by Srishti Arora

4 min read

Is Amazon FBA Still a Profitable Business?

March 3, 2022 by Malika Sanon - 4 min read

Many people assume that selling on Amazon is always a profitable business. However, the notion that you can start making millions overnight is a lot to expect. A few years ago, when there was less competition on the platform, this could be true. But now, this isn’t the case for every business that starts selling on Amazon

Amazon FBA Profitable Business

What is Amazon FBA?

Fulfillment by Amazon (FBA) is a one-stop solution to sell your products on Amazon. If you are an Amazon seller and also use FBA, you only need to send your products to Amazon Fulfillment Centers, and the rest will be taken care of by the Amazon team. 

They store your products in their warehouses, and when an order comes, Amazon takes care of packaging, shipping, and delivering the product to the customer’s doorstep. FBA products are also listed with a prime badge and are usually delivered the same day or the next day to the eligible customers. Apart from this, Amazon also handles any returns or customer support for you. 

The Amazon FBA Business Dilemma

There are many vital factors that a business needs to evaluate while starting an online business. The customers’ expectations are incredibly high, perfection comes at an expense, and fulfillment costs increase every day. Also, there is stiff competition between other eCommerce websites such as eBay, Flipkart and etc which can make it almost impossible to run a successful business. 

 To grow a business, sellers need to clearly understand how to bloom a business and how to make it reach the next level. The seller needs to plan and execute with accuracy to make it successful. 

According to Forbes, “Amazon delivered a record performance in 2020 with annual revenue up 38% to $386 billion. This is a yearly increase of over $100 billion, which means that the platform is doing fairly well. “

These figures are testimony that starting an eCommerce business can still be profitable in 2022. However, you need to figure out how to find the right market to sell your products. This is not an overnight task, but the right market and target audience can make you a good amount of money. 

Types of Business Models

Types of Business Models

Before you even start listing your product, you need to decide what kind of seller you want to become. Some of the most common Amazon FBA business models are employed by third-party sellers. Let’s discuss types of business models; here we go-

Retail Arbitrage

Retail Arbitrage is also known as ‘reselling.’ This means buying products at a low price and reselling them for a reasonable profit margin. However, if you fail to find products that you are selling at a lower price, it will be hard for you to profit. 


Wholesalers buy products in large quantities and then sell them for large profits. These sellers buy products directly from manufacturers. They can purchase products at a lower price than others as they buy products in bulk. Also, this is more profitable than retail arbitrage in the long run. However, you also need a bigger capital since you will be buying thousands of items at once.  

Private Label

This is one of the most challenging ways of building a business, but once you’re through, this is one of the most profitable ways of making an FBA business. In private labeling, sellers contact manufacturers to create generic products for them. And here, the manufacturers will create the products for you and add brand and logo to the products. 


The sellers usually forward the orders directly to their manufacturers. However, the customer receives the order in the seller’s name. A seller can make a profile without maintaining any physical inventory

How to Choose Fulfillment for your Business?

Fulfillment for Business

Now that we have understood how to start an Amazon FBA business, the next step is to choose your fulfillment method. 

Fulfillment by Merchant (FBM)

Here the seller lists the products and handles everything related to fulfillment and storage. They can make more profits by purchasing in large volumes and getting more discounts. However, they need more workforce and more work compared to the FBA sellers. 

Fulfillment by Amazon (FBA)

In this, you only sell and market the products, and Amazon does the fulfillment and ships them. Bulk products are sent to Amazon fulfillment centers. The employees pick, pack, and ship the products to the customers. Amazon also handles return and customer service, including refunds for them. 

Shiprocket Fulfillment is a 3PL provider with fulfillment centers across India in all major locations. The fulfillment centers are equipped with the latest warehouse management technology to ensure that the orders are delivered on time. This allows you to store all your products closer to the customers and deliver them faster. 

Mar 3, 2022 by Malika Sanon

5 min read

The Cold Chain Logistics : How Does it Work?

March 1, 2022 by Malika Sanon - 5 min read

Cold chain logistics revolves around the transportation of temperature-sensitive products and maintaining a supply chain through thermal and refrigerated packaging methods. A considerable amount of logistical planning goes into protecting these types of shipments.

Cold Chain Logistics

What is Cold Chain Logistics?

Social media has made the world a global village and has made the relative distance between regions across the globe extremely slim. However, in reality, the physical separation of the same areas is humongous.

The more the physical distance, the more likely the shipment will get damaged. Therefore, it is necessary to understand the complexity of the operations involved.

Many goods get damaged by temperature variations and by shocks. Perishable food products quickly degrade with time, and not keeping them in a temperature-controlled environment can affect the quality of the products. Time and coordination of moving the products from one place to another are vital factors for food production. Each delay can have significant negative consequences if the temperature control is missed.

To ensure that the products are not damaged or compromised throughout the supply chain, businesses like medical and food companies primarily rely on the cold chain.

Cold chain products are transported in several ways: refrigerated trucks and railcars, refrigerated cargo ships, reefers, and air cargo.

Cold Chain: a Science, Technology, and a Process

It is a science requiring one to understand the chemical and biological processes linked with the products. It is a technology as it heavily relies on temperature control. And it is a process as a series of tasks need to be put in place to prepare, store, transport, and monitor temperature-sensitive products.

What are the Main Elements of a Cold Chain?

Cooling Systems

This helps maintain the appropriate temperature of food for storing and transporting the products.

Cold Storage

Keeping the goods stored at a nearby location for some time in a temperature-controlled environment for distribution.

Cold Transport

Having conveyances available to move goods and maintain stable temperatures to protect the produces for the customers.

Cold Processing and Distribution

Providing facilities for the transformation and processing of goods and ensuring sanitary conditions.

How to Provide a Temperature-Controlled Environment? 

Temperature Controlled Environment

Ensuring that a shipment will remain within the temperature range for an extended period depends mainly on the type of container used and the refrigeration method. Cargo refrigeration takes up approximately 20% of all energy consumed in cold chain logistics.

Other factors such as duration of transit, the size of the shipment, and the ambient or outside temperatures experienced are essential in deciding what type of packaging is required and the related level of energy consumption.

It varies from small insulated boxes that only require gel packs or dry ice to rolling containers to a reefer with its own refrigeration system.

The cold storage facility is the most commonly used in cold chain logistics. It can range from a single temperature-controlled room to large dedicated warehouse centers. 

Shiprocket Fulfillment is one of the fulfillment providers that also provide cold storage facilities in their warehouses. You can now process your orders with 99% accuracy and deliver your products 3X faster to the customers with one-day and two-day delivery options.

Cold Chain Operations 

To maintain shipment integrity, businesses need to move a shipment through the supply chain without any setbacks and manage the temperature to ensure shipment integrity. This process has several levels, including the shipment preparation to its final verification at the delivery point.

Shipment Preparation

One of the significant concerns in temperature conditioning and packaging is that the temperature should already be what it is needed to be. Primarily, the cold chain devices are designed to keep the temperature constant. So, if the temperature is not prepared in advance, it won’t perform adequately.

Modal Choice 

Many factors come into play when the shipment is moved- distance, size, weight, and time restrictions of the product. The shorter distance is easier to manage as the delivery can be done via a van or a truck. However, a longer trip may require an airplane or a container ship.

Custom Procedures 

Custom procedures can be a little tricky. Since the cold chain products are time-sensitive, they are subject to more inspection than regular freight (e.g. produce, pharmaceuticals, and biological samples). The level of difficulty in this differs on the nation and the gateway since there are variations in procedures and delays.

Customs issues must be handled as they are crucial in establishing successful and reliable cold chains.

The Last Mile

The final stage is delivering the destination to its destination and in logistics, it is also called the ‘last mile’. It is key to keep in mind the delivery timing so the required space for warehousing is made available.

Trucks and vans, the primary modes of transportation for this stage, must meet the specifications necessary to transfer the cold chain shipment.

Integrity & Quality Assurance

After delivering the shipment, temperature recording devices help understand if there are any temperature anomalies or not. This process builds the foundation for trust and accountability.

Therefore, the setting and operation of cold chains depend on the concerned supply chains. Each shipment has different requirements in location, demand, level of concentration, load integrity, and transport integrity.

Mar 1, 2022 by Malika Sanon