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. 

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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. 

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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. 

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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 that 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. 

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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 to be done 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 gives you a chance to store all your products closer to the customers and deliver them faster. 

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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.

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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.

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Mar 1, 2022 by Malika Sanon

4 min read

Fulfillment Center Vs Distribution Center: Which Is Better?

January 6, 2022 by Pulkit Bhola - 4 min read

Warehousing is one of the key elements of a distribution network for any business. This is especially true if a business operates in the eCommerce space. Did you know? The number of warehouses worldwide is anticipated to reach 180,000 by 2025.

Choosing the best form of warehousing based on your operational needs is critical for the smooth functioning of your supply chain. Typically, there are types of storage options with specific order fulfillment procedures- fulfillment center and distribution center.

fulfillment center vs distribution center

While you should take both of them into account when planning your operations, it is important to recognize the subtle differences between the two. A fulfillment center has different purposes than a distribution center. 

This article is about- fulfillment center vs distribution center. Read on to know what fulfillment centers and distribution centers are, which one out of them you should prefer for your business, and why.

What Is A Fulfillment Center?

A fulfillment center is a third-party logistics(3PL) warehouse that receives, processes, and fulfills customer orders on behalf of your business. To manage inventory with a fulfillment center, you can receive and examine the goods before sending them to the center or have the manufacturer send them directly to the center. 

Fulfillment centers are an integral part of the supply chain as they ensure that online orders reach customers faster and more affordably. They help you store your products strategically, ensuring your orders are picked up quickly once a customer has completed an online purchase.

Reasons To Choose A Fulfillment Center

fulfillment center vs distribution center- why to choose fulfillment center

Direct Delivery To Customers

Every time you get a new order, a fulfillment center processes it through a set workflow and delivers the products directly to your customer.

Located Close To Customers

A fulfillment center is generally located close to your customers and strategically so. The idea is to reduce the distance between your customer and your warehouse for efficient shipping.

Pickup & Packaging On Your Behalf

Your inventory is received and managed by trained fulfillment experts who could also pick products, pack your shipments, and label them on your behalf.

Technology & Automation

Whether it’s a warehouse management system, an order management system, or shipping automation, technology ensures transparency at every step of the order fulfillment process.

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What Is A Distribution Center?

A distribution center is also kind of a warehouse. However, it appears at a different point in the supply chain than the fulfillment center. The most basic definition of a distribution center is any warehouse along the way that facilitates the redistribution of products.

When we talk about fulfillment center vs distribution center, the key difference between the two is that a distribution center does not ship directly to customers. Instead, it serves as a transit point for products to change the way they are transported.

Distribution centers can also act like inventory hubs for large retailers so that products are replenished quickly on the shelves, and there are minimum shortages. This helps to keep the supply chain as proactive as possible.

Reasons To Choose A Distribution Center

fulfillment center vs distribution center- why choose distribution center

High Storage & Delivery Capacity

Distribution centers are designed to store and redistribute large quantities of products. There is more than enough space to store large quantities of your store inventory at once.

Long-Term Storage

You enjoy the freedom to store your inventory on a long-term basis without digging a big hole in your pocket.

Affordable Costs

Not just for long-term storage, but distribution centers are generally cheaper as compared to fulfillment centers, majorly due to economies of scale & lesser technological requirements.

Located Close To Target Market

A distribution center enables you to store more inventory closer to your target market. If you’re a multi-channel retailer, you might as well want to store inventory closer to your physical store.

Fulfillment Center Vs Distribution Center: The Conclusion

A typical supply chain usually has both fulfillment centers and distribution centers. The distribution center is a transit hub for goods as they change the mode of transport. Instead, the fulfillment center holds the products before they are shipped to customers.

Most eCommerce sellers require a fulfillment center rather than a distribution center. However, these companies must find a suitable fulfillment solution that is quick, effective, reliable, and efficient.

Shiprocket Fulfillment stores your products closer to your customers in a PAN India network of over 15 leading-edge fulfillment centers. Result? Your orders get delivered three times faster and up to 20% cheaper.

How about offering same-day and next-day delivery to your customers? Outsource your warehousing, order processing, and shipping operations to Shiprocket Fulfillment. Get started today.

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Jan 6, 2022 by Pulkit Bhola

4 min read

Carrier-owned Container vs. Shipper Owned Container – A Brief Comparison

December 28, 2021 by Rashi Sood - 4 min read

Ever confused about choosing between a COC container and a SOC container? You need not worry, as we’ve got you covered everything related to this topic.

The shipping industry is one of the best platforms for the trading of goods and services. The containers are essential and useful assets for booming businesses.

Carrier-owned Container

In the past few years, due to the COVID-19 pandemic the container shipping industry has witnessed an imbalance, which has raised concerns for the seamless flow of the global demand and supply chain. To fulfill both the demand and supply of goods, many companies are holding on to containers and moving empty containers.

Today there are millions of containers in service that helps in maintaining the flow of goods globally. That’s why you should know that the containers are classified into the following types:

  • Shipper Owned Container (SOC)
  • Carrier Owned Container (COC)

As the name itself suggests, a Shipper Owned Container (SOC) is owned by the shippers which may be a supplier and a Carrier Owned Container (COC) is a container owned by a carrier company.

As we all know, choosing a particular container type solely depends upon the type of cargo to be transported, the distance to be covered, and the charges to be paid at the end of delivery.

Shipper Owned Containers

Carrier-owned Container

The shipper-owned container (SOC) is particularly owned by a supplier. It is the responsibility of the owner to pay the carrier charges only when goods are to be imported. Once the goods are ready to be transported via cargo, they are sent to SOC containers for importing goods. They can also be used to store goods. The shipper-owned containers are quite flexible to use and can be easily replaced with the same container.

SOC containers help speed up the supply of goods across the globe without any delay. These containers help in eliminating the risk of unexpected costs and demurrage during the loading of shipments, customs clearance, etc. In addition, a supplier can source their own cargo as per the requirement in remote areas at reasonable rates.

Carrier Owned Containers

Carrier-owned Container

It is owned by a carrier company or a shipping company. You need to pay some charges in case of demurrage and detention of shipment. The Carrier Owned Containers are mainly used for the import and export of cargo and for the storage of goods. They are the responsibility of the carrier company once the payment has been made. COCs are used for standard shipments on long routes with a lot of shipping boxes. It is an economical way to ship your packages to foreign countries. It’s flexible and easy to use a COC container. You only need to make an “all-in” freight payment to move your goods.

SOC ContainersCOC Containers
SOC containers are good to speed up the supply of goods across nations, without delaying the shipments.COC containers are utilized for standard shipments on routes with a lot of cargo flow.
SOC helps in avoiding unexpected demurrage and detention costs for the loading time, customs clearance, drayage, port congestion, etc.It’s much simpler to use a COC container, one just has to pay an “all in” freight payment to the carrier to move their goods.
One can source their own cargo as per the requirement in remote areas.COC containers allow for higher freight rate discounts in the high surplus areas.    

If you want to make shipping on your own, it’s better that you partner with a third-party fulfillment service (3PL) to handle your ecommerce fulfillment and shipping needs.

SR Fullfilment

Shiprocket is a leading 3PL provider that helps optimize eCommerce fulfillment operations warehousing, manage inventory, order fulfillment, and automate shipping so as to save your time and money on logistics. You can also talk to our experts and book for international as well as domestic shipments at discounted rates.

Final Thoughts

Although there is a marginal difference in both types of containers, these containers are important to have for shipping companies looking to generate tremendous revenue in the industry. These containers offer a myriad of options for your export and import business without paying hidden or unwanted charges. It provides a profitable way to receive world-class shipping services.

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Dec 28, 2021 by Rashi Sood

3 min read

An Overview of Third-Party Logistics Sector in India

December 23, 2021 by Rashi Sood - 3 min read

When we look at India’s third-party logistics sector, eCommerce digitization, and infrastructure modernization are the main growth drivers for the 3PL sector in India.

Third Party Logistics-Sector

According to reports, the Indian third-party logistics (3PL) sector is set to grow by US$10.74 billion in the period 2021-2025 at a CAGR of 8%. Also, as per the market reports, the 3PL market in India is all set to expand at a CAGR of 8.36% by the end of 2022.

This shows that collaborating with a 3PL organization can help big and small companies with their logistics and eCommerce fulfillment operations that can lead to a growth in revenue and sales.

Future of 3PLs in India Post COVID-19 Pandemic

Third Party Logistics-Sector

COVID-19 pandemic in 2020-21 struck the logistics operations of many businesses. Today they are as unorganized as they were before. But gained more traction after eCommerce businesses took the help of the 3PLs to reduce their response time for last-mile deliveries.

According to an industry report, the 3PL industry in India is planning to employ more than 40 million people that will become the biggest job creator in India in two to three years.

Evidently, the growth of the 3PL providers in India has increased post the COVID-19 pandemic. It is due to the imbalance which has occurred since the pandemic struck the nation.

The E-commerce industry has realized the importance of 3PLs and how they play a key role in the success of the company. It is now imperative to have an organized and tech-driven operational infrastructure for an integrated supply chain.

Another factor that leads to the demand for 3PL companies in India is the changing business scenarios that have made corporations move to 3PL experts to handle their operations. The third-party logistic providers can change the way of business execution and take their business to greater heights with cost reduction.

This is the reason why several eCommerce companies are moving to 3PL services to focus more on core business, to improvise supply chain efficiency, and operations management.

Technology – The Future of 3PL Sector in India

Third Party Logistics-Sector

Technology will change the way the 3PL industry operates across India. With the evolving digital trends, companies focus more on improving productivity and efficiency with a digitally connected supply chain.

Companies are focusing on technologies such as Artificial Intelligence (AI), Machine Learning, Robotics for the management of supply chains and the logistics sector. This will surely increase the efficiency and effectiveness of the supply chain process.

The third-party logistics market is rapidly growing in the market. At such a time, technology and innovation should be the top priority of a company looking for supply chain outsourcing.

SR Fullfilment

The 3PL sector in India is poised for technological adaptation and enabling infrastructure across industrial sectors and companies that look to reduce their carbon footprint and ensure competitive operations. Shiprocket is one of the best 3PL providers in the market, is known for its effective eCommerce fulfillment, warehousing management, and third-party logistics (3PL) services. With a proven track record and a deep understanding of eCommerce business functions, Shiprocket is known for specializing in integrated operations of inventory management, order fulfillment, warehousing, and logistics.

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Dec 23, 2021 by Rashi Sood

5 min read

Store Inventory Management: How Do You Manage Store Inventory?

December 21, 2021 by Pulkit Bhola - 5 min read

Your inventory, as they say, is actually money that’s just sitting around in another form. Since you must manage your money wisely, store inventory management is definitely something you need to be good at.

No matter how many warehouses you’ve got to maintain, you must count each item of stock in each one of them, record the results, and take necessary action accordingly. It seems so challenging, right?

Well, you can’t help but keep track of your inventory levels all the time. After all, an unexpected stock-out is the last thing you’d wish for. Some inventory management software do come to your rescue by making store inventory management less of a headache.

store inventory management

Managing your stock is often like you’re stuck between the devil and the deep blue sea. On one hand, you don’t want to disrupt your cash flow with excess stock. On the other, you want to keep enough stock to timely meet the demand of your customers.

This is where store inventory management comes into the picture. Let’s understand what it is and how you can do it effectively.

What Is Store Inventory Management?

Store inventory management refers to maintaining your stock at the optimum levels across your online stores. In other words, it means keeping track of incoming stock, outgoing stock, and the stock lying in your warehouse.

Managing your inventory effectively helps you not only save big on your costs but also enables you to make timely decisions. You can get a crystal clear idea about when to recover your stock or sell your old stock.

Result? You can enjoy an uninterrupted cash flow and also can fulfill your orders on time. Here are the best practices of store inventory management to help you along the way:

Effective Practices Of Store Inventory Management

Did you know? Mismanaged inventory had cost retailers a whopping US$ 677 million during the coronavirus pandemic last year. To protect your business against such a situation, do the following:

store inventory management

Forecast Accurately

If you fail to forecast, you forecast to fail. Always base your sales projections on crucial factors such as your past sales data, economic environment, marketing plans, and the ongoing market trends.

Utilize The FIFO Approach

FIFO(First In, First Out) approach of store inventory management suggests that your products should be sold in the same chronological order as they were bought or manufactured. This is particularly useful in case of perishable products like food items

However, it’s also a great idea for non-perishable goods as long as there is a risk of damage or becoming unsellable. Here’s a trick. Always add new stock from the back, so the older stock is at the front.

Identify Excess Stock

You see, excess of everything is bad. Get rid of every stock item that hasn’t been sold at all in the last six to twelve months. Maybe, consider running a special discount or promotion for such products to clear that stock.

Do A Stock Audit

No matter how good your store inventory management software is, don’t forget to manually count your inventory from time to time to avoid any surprises. This can be done through various techniques, such as an annual physical inventory count or an ongoing spot audit.

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Deploy An Inventory Management Software

If you aren’t using any store inventory management software, get one today. The most important things you need in an inventory management software is real-time insights and regular inventory alerts via Email or SMS.

Keep Track Of Your Stock Levels

Never ever lose track of your stock levels. You simply can’t do that, unless you want to waste your time and money. While tracking your inventory levels, always prioritize the most expensive products. A good inventory management software can also help you do this easily.

Ensure Proper Quality Control

Last but not least, take a pledge now that you’ll keep your products in tip-top condition and are working properly. To start with, hand over a simple checklist to your stock auditors that covers damage, labeling, and other quality-related aspects. 

That’s it for now. We hope you must have got a clear understanding of what store inventory management is and how you can implement it in your business. But here’s a tip. If you don’t want to take any stress, how about outsourcing your entire order fulfillment process to a third party?

Manage Your Inventory Like A Pro

Using Shiprocket Fulfillment, you can sync your inventory from all your sales channels and marketplaces in a single place. You can also integrate new channels in just a few clicks. 

It’s easier to keep track of your stock and determine how many products you have on your hand. Our system will let you know when you are running out of stock so that you can update your inventory on time.

Simplify your fulfillment, warehousing, and logistics operations today.

Shiprocket Fulfillment features
Dec 21, 2021 by Pulkit Bhola

5 min read

Quantitative & Qualitative Forecasting Techniques For Your Supply Chain

December 7, 2021 by Pulkit Bhola - 5 min read

Did you know? Last year, global eCommerce sales crossed 4.2 trillion US dollars and are expected to rise to 5.4 trillion US dollars by next year.

To stay relevant in a market this big and to cater to the increasing demand, it is important to understand how to properly forecast your supply chain. Keeping your supply chain on-track results in stronger business relationships, better customer experience, and more capital to scale your business.

qualitative and quantitative forecasting methods

However, forecasting your supply accurately based on your historical data can be difficult at times. You, as a result, end up feeling worried and under-prepared for what’s coming your way.

This is why it is crucial to know about the different quantitative and qualitative forecasting techniques & how you can use them to optimize your supply chain.

What Is Supply Chain Forecasting?

Supply chain forecasting refers to the process of predicting everything about your supply chain to ensure smooth running and continued growth. This is done using various data points and research methods.

Supply chain forecasting not just helps in demand forecasting and sales projections, but also makes it easy to determine production lead times, product pricing, labor needs, and others. 

You can forecast your supply chain using two types of methods or techniques: quantitative and qualitative. Let’s understand the qualitative and quantitative forecasting methods in detail:

What Are Quantitative & Qualitative Forecasting Techniques?

Quantitative forecasting methods use past data to determine future outcomes. The formulas used to arrive at a value are entirely based on the assumption that the future will majorly imitate history.

On the other hand, the Qualitative forecasting method is primarily based on fresh data like surveys and interviews, industry benchmarks, and competitive analysis. This technique is useful for newly launched products, or verticals wherein historical data doesn’t exist yet.

Now that you know what qualitative and quantitative forecasting methods are, let’s deep dive further:

Types of qualitative and quantitative forecasting methods

Qualitative Forecasting Techniques

Delphi Technique

In this method, a forecast is made, and then it is validated by experts. The estimates made are discussed in a group until all the members reach a consensus.

For instance, you could forecast the amount of inventory you need to hold to meet your holiday demand in the upcoming winter season. Your forecast could then be analyzed by all department heads in a group discussion until everyone is on the same page.

Market Research

Market research is one of the best methods of supply chain forecasting. Through market surveys, competitive analysis, and expert interviews, you can predict supply and demand, which is in line with your profit goals.

It can be implemented either internally by marketing experts or by a third party specializing in this field.

Panel Consensus

In this method, members from all levels of a business come together to make a forecast. It enables all the participants to express their opinions based on their knowledge and experience openly.

For example, you could work with your customer support team to identify which products are being given negative feedback and why. Similarly, you could ask your sales team to tell you your best-selling products.

Historical Analysis

This kind of forecasting is used to forecast sales on a presumption that a new product will have a similar sales pattern to that of an existing product. This can be either being sold by you or your close competitor.

Historical analysis might not be that accurate in the short term, but it can prove to be helpful in the medium as well as the long term.

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Quantitative Forecasting Methods

Moving Average

Moving average is a statistical method in which the normal average is considered as the basic calculation for forecasting seasonal demand. To make your average move over time, you need to remove the oldest values from the data and add new values.

For instance, you could use your week-by-week revenue data to forecast revenue for the coming week using the moving average method.

Regression Analysis

Regression analysis is done by knowing the relationship between two or more variables. The idea is to measure the influence of one or more independent variables on a dependent variable.

This is a relatively faster and easier method to establish forecasts based on existing assumptions, like seasonality.

Exponential Smoothing

This method considers past data but gives more importance to recent observations. It allows you to make essentially data-driven forecasts without the need to examine multiple sets of data.

If you have the right tools, the exponential smoothing method can prove to be really effective for short-term forecasting.

Adaptive Smoothing

The adaptive smoothing method uses multiple variables to make a forecast. It helps you to dive deeper into changes over a period of time and pinpoint particular patterns.  

By using this method, you can concentrate on specific variables and make wiser decisions.

That’s all. By now, you must have a clear understanding of all the qualitative and quantitative forecasting methods. But which one is the best?

The Best Of All Qualitative & Quantitative Forecasting Methods

While there is no one best method of supply chain forecasting, it is important to note that short-term forecasts are generally more accurate than long-term forecasts. 

In fact, it is also true that all of these qualitative and quantitative forecasting methods have some or other errors due to the underlying assumptions.

In a nutshell, the type of method you should use depends on your objectives. As the qualitative methods rely on subjective opinions, we suggest that you consider the quantitative methods to be a bit more reliable.

Strengthen Your Supply Chain

By outsourcing your eCommerce warehousing and fulfillment operations to Shiprocket Fulfillment, you can store your inventory closer to your customers in a PAN India network of fulfillment centers. 

As a result, you can deliver your orders three times faster and easily manage a surge in demand. Strengthen your supply chain with efficient logistics. Get in touch with our fulfillment experts today.

Shiprocket Fulfillment features
Dec 7, 2021 by Pulkit Bhola

5 min read

Reorder Level & Reorder Quantity Formula

November 23, 2021 by Pulkit Bhola - 5 min read

What is the worst nightmare an eCommerce seller could have? The answer is- an unexpected stockout. If you don’t update your inventory timely and adequately, you’re inviting the risk of going out of stock during high demand.

On the other hand, having a lot of inventory would be an unnecessary investment. You never want your products to expire or become obsolete before you sell them.

reorder level & quantity formula

Therefore, you need to strike a balance between the two. This is where inventory management comes into play. By optimizing your inventory management process, you can maintain the right amount of inventory.

That’s why you must know the reorder level and reorder qty to keep your shipping costs, storage space, and stockouts at a minimum. Let’s understand what reorder level is and how you can calculate reorder quantity using the reorder quantity formula.

What Is Reorder Level?

The reorder level or reorder point is that level of your inventory at which you need to place a request for preventing a stockout. It is usually based on the average time taken by the supplier/manufacturing team for recovery, maximum usage of the product during the recovery time, and safety stock requirement.

Ideally, the reorder level should result in the arrival of inventory as and when your existing inventory quantity has dropped to zero. However, it’s always beneficial to keep an additional measure of stock, called safety stock, to meet immediate demand.

Calculating Reorder Level – Reorder Level Formula

The next question is – how to calculate the ordering level formula?

To calculate your reorder level, multiply your average daily usage rate by the lead time in days for an inventory item.

Suppose, Mamaearth experiences an average daily usage of its Vitamin C Hand Cream of 10000 units, and the lead time for producing new units is 5 days. 

Hence, the reorder level is 10000 units x 5 days = 50000 units. 

When the inventory level of Vitamin C Hand Cream declines to 50000 units in stock, Mamaearth should stock more units. By the time the additional units arrive in 5 days, the on-hand inventory balance should have dropped to zero.

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What Is Reorder Qty?

The reorder quantity is the total number of units of a particular product that needs to be recovered in the stock. This number depends on numerous factors like quantity discounts, shipping rates, warehousing costs, and working capital needs.

The ordered quantity or the number of units needs to be optimum considering the various factors like cost of the order, cost of transportation, carrying costs, etc. The reorder quantity is the quantity that provides the best balance between the various factors like quantity discounts, freight, storage costs, and working capital requirements.

Reorder qty is the total number of product units you request from a manufacturer or supplier on an inventory replenishment purchase order. The exact amount should not be so high that you have too much capital tied up in inventory and subsequent warehousing costs, but not so low that there’s not enough safety stock and you risk selling out before you can get the next batch of inventory.

Reorder Quantity Formula

You can calculate reorder quantity in 3 easy steps using the reorder quantity formula.

Let’s look at how this formula works in detail.

calculating reorder quantity formula

Decide your Average Daily Usage (ADU)

Average Daily Usage(ADU) is the total units of your product sold per day.

Usually, 30 days is a reasonable timeframe to consider, but it’s dependent on the time of year. For example, if you need to order products in time for Diwali, your ADU should be calculated based on the previous year’s Diwali ADU.

Determine your Average lead time (ALT)

Your Average Lead Time is the time(in days) taken between placing a purchase order and receiving the inventory.

For instance, if you reordered inventory on November 1, and that new inventory is ready to be used to fulfill your orders on November 30, then your ALT is 29 days.

Find Your Reorder Quantity

To know your reorder qty, all you need to do is multiply ADU and ALT. The result gives you the amount of inventory you need to reorder. Here’s an example:

ADU = 10 units

ALT = 29 days

Your reorder quantity is equal to 290 units.

Why Do You Need Reorder Quantity Formula?

To Prevent Stockouts

Out of stock means lost customers. You can always offer backorders or split shipments, but those solutions don’t provide a seamless customer experience.

Knowing your reorder level helps you ensure a recovery in time before your stocks run out, while reorder quantity enables you to order just enough to last until your next order.

To Minimize Costs

You also never want to block too much capital in your inventory. If your stock levels are too high, you’ll need to scale up your warehousing storage capabilities.

By calculating reorder quantity, you can keep just enough inventory to meet your demand without overspending.

To Manage Inventory

When you know exactly how much to reorder and when you need to reorder, you can set up notifications in your inventory management system, enable live inventory tracking, and manage changes in demand over time.

Store Inventory Closest To Your Customers

Do you know? You can fulfill your orders 3X faster by storing your inventory closest to your customers in our PAN India network of fulfillment centers. This not only empowers you to provide 1-day & 2-day delivery but also reduces your shipping costs by upto 20%.

Get in touch with our warehousing and fulfillment experts today. 

Shiprocket Fulfillment - Top fulfillment provider in India
Nov 23, 2021 by Pulkit Bhola