Perfect Order is a very important performance metric, which simply means what is going on in your business and how satisfied your customers are with the services you provide to them and the delivery of orders completely, correctly and on time is a very important key performance indicator, and it can be said. As the best performance measure, and in this article on  LOGSTIAT logistics solutions, we will explain what is meant by Perfect Order, and what the factors necessary to obtain a perfect order are.

What is a perfect order?

As we indicated in the introduction, the perfect order is one of the important metrics that reveal to you what is happening in your business and also explain to you the percentages of customer satisfaction with the services you provide to them.

And we can say that it is a measure to clarify the success of the business that you do, we call any order a perfect order in the event that an order has been delivered to the customer in a final, accurate and on time exactly, that is, without any errors or defects.

Consequences of Incomplete Orders

Incomplete orders will have many consequences, as:

• Increase your business costs.
• The need to give the customer a replacement item as compensation.
• Loss of many deals and clients.
• Decrease in your revenues and sales of your company.

Factors needed to obtain perfect order

There are many factors that will help you in getting a perfect order and the following are the most important factors that you can take advantage of:

Order Entry Accuracy

The first thing you will need to measure in order management to check the perfect order is the accuracy of entering orders into your systems. Of course, you receive more phone calls and requests from your online store, so are you entering them into your systems accurately?

In the event that your customers obtain high order entry accuracy, this means a decrease in error rates and thus an increase in the satisfaction of your customers, which will reflect positively on the performance of your company and your leadership as well.

Inventory Availability

One of the most important things that you should take care of measuring permanently is the extent of your inventory availability, the first thing you must take into account when a customer orders a product from you is that product available in that required quantity in my store? Thus taking care of gauging your stock availability will assist you in achieving a perfect order.

DIFOT service level

The level of service is measured by the ability of your warehouse management to carefully select the required product, then package it and prepare it to be sent to the customer on time.

If the level of service is low, this will negatively affect your organization and its reputation in general, meaning that a high level of service means achieving a perfect order.

The Transport Company’s DIFOT

When you succeed in delivering the transport company in full and at the agreed time, this is wonderful, and neglecting it and not paying attention to it or measuring it periodically will have serious consequences for you.

The Customer Acceptance Order

Do you have returns? Do customers refuse to receive their orders? Of course and in a large proportion there are problems with their requests.

And that makes them refrain from receiving the order, clients accept their requests if they are not damaged and also identical with what they actually requested.

Invoices Paid on Time

One of the most important factors that will help you achieve a perfect order is measuring how well your bills are paid on time, as you will need to gauge whether the invoices are paid on time or there is a delay in payment.

Assessing Your Performance

In order to be able to get the most accurate picture of your business performance, you need to evaluate your performance continuously and periodically, and if your ideal order rate is low, you must think about ways that will increase your performance so that you can reach the perfect order.

Righting the Wrongs

In order to be able to correct mistakes and avoid their recurrence, you will need to train your team to continuously improve your inventory, which will positively affect general metrics and not just achieving perfect orders.

The post The Best KPI: The Probability of a Perfect Order appeared first on LOGSTIAT FOR LOGISTIC CONSULTANT & LOGISTIC TECHNOLOGY.

Third-party logistics services (3PL) as well as fourth-party logistics services (4PL) have a fundamental role in the supply chain, and there are differences between fourth-party logistics service providers (4PL) and third-party logistics service providers (3PL). Fourth-party logistics services (4PL) have greater responsibilities and thus help in a deeper and greater way to achieve customer goals, and in this article on  LOGTIAT logistics solutions we will show you all what you want to know about third-party logistics (3PL) as well as from fourth party logistics (4PL).

What is a 4PL?

It is one of the types of logistics services, and they are external sources for organizing and managing the supply chain of individuals, so the owners of factories and companies use those external sources, and they are the professionals to get a better management.

What do 4PL providers offer?

Perhaps the most prominent characteristic of the services they provide is their high level of control and accountability to a large extent; through them you will be able to obtain the highest level of effective management of your supply chain.

Once the fourth-party logistics service providers (4PL) are hired, they will then take control of all operations related to packaging, warehousing, etc., allowing the owners of these companies to control other aspects of their business, and the most prominent of their services are:

• • Shipping sourcing strategies.
• • Business planning.
• • Project management.
• • Logistics services.
• • Analysis of transportation expenses.
• • Carrier performance analysis.
• • Manage inbound, outbound and reverse logistics services.
• • Coordinating a broad base of suppliers
• • Capacity utilization analysis.
• • Inventory planning and management.

Advantages of 4PL

Here are the most prominent features that 4PL can provide to you

1. Manage your operations more broadly

One of the main advantages of 4PL services is the expansive management of your operations, as all shipping, distribution as well as warehousing is better handled.

2. Take advantage of information technology

As 4PL services depend on modern technology and software, along with automated systems that improve your communication and increase visibility in real time, as well as provide a lot of information.

3. Offer an endless number of solutions

4PL services are characterized by having a sweet-oriented approach, through the interest of service providers to design the solution first in order to meet the business requirements, and they have significant experience in managing the operations of shipping and distribution, and they provide a large number of IT-based solutions.

Disadvantages of 4PL

Despite the huge advantages offered by 4PL services, there are a number of disadvantages, which are:

• • Reduced ability to control implementation processes as service providers handle the bulk of implementation and logistics operations.
• • Relatively high cost, especially for small and emerging companies.

What is a 3PL?

They act as intermediaries between manufacturers and retailers. 3PL providers also offer a number of logistics services similar to those provided by 4PL, but the main difference is that they allow you to manage business in a greater proportion than others. Third-party logistics services do not oversee the entire supply chain management and organization processes.

Difference between 3pl and 4pl

The most prominent difference between 4PL services and 3PL services is that the first deals with the entire supply chain, and the second deals only with the logistical process, and here are a number of differences that highlight the difference between 3PL and 4PL services:

• • 4PL services are the most suitable form for large and medium companies, while 3PL services are more suitable for small and emerging companies.
• • The 4PL functions focus on the improvement and integration of the entire organization, while the 3PL functions are completely focused on the day to day operations of the company.
• • 4PL service providers provide a number of assets, trucks and warehouses as well, unlike 3PL who do not.
• • 3PL services focus on one-time transactions only. 4PL services are the complete opposite, as they seek to obtain great value through effective coordination of all activities.

Which one is right for your company 3pl or 4pl?

The process of determining which type of services is most suitable for you depends on the type and size of your business itself, so we find that if you own a small or medium-sized company, 3PL services are the most suitable option for you, which will give you greater advantages and will suit your budget greatly.

As for if you are a large company owner, 4PL services will be more suitable for you, especially if you are looking to expand the range of services in your organization, as they will help you in that better than 3PL services.

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Deciding to outsource logistics management or switch logistics partners is a scary thing, especially since in fact no one knows your product or customers better than you, but working with outside logistics sources can help you a lot in your business, especially since working with a 3PL partner It can give you time to focus on other, more important matters, such as the process of launching a new product, but unfortunately there are a number of mistakes people make when choosing a partner, and in this article we will show you 4 Common 3PL Mistakes on Logistics outsourcing contract.

What is third-party logistics (3PLs)?

If you hire an outside service provider for your logistical requirements, which service provider is called a third-party logistics provider, and in industry parlance, service providers are also referred to as 3PL.

Common 3PL Mistakes on Logistics Outsourcing Contract 

There are a lot of common mistakes people make in contracts; here are the top 4 common 3PL mistakes when making a contract logistics outsourcing:

1. Having clear expectations

and i should say right from the outset that through your rft your rfp process you should be in the latter stages of that sharing the contract that you want the 3pl to be signing it’s the power of the draft it’s your opportunity to lay down exactly what you want and how it’s all going to work there are still lots of companies that don’t have contracts it’s surprising they have a rate card which basically says you know here’s our rates for providing different services but no actual contract.

it’s very important to have a contract because hopefully you never need to refer it to it very much but if something were to go wrong at least you can pull that out and see what was agreed probably more importantly though i think you see the requirement for a contract is to set up expectations so at least you and the other party are sitting down going through all of the elements of the relationship and it kind of sets things straight so number one is clear expectations about what well service what are the service needs that you have what are the service targets that you have so certainly you want some kpis in that contract.

2. Cost management

just a quick recap the types of rate structures you might have are unit prices so you know it’s a cost per pick per unit dispatched per order dispatch per order delivered whatever that might be less common are cost plus contracts where basically.

the 3pl says look we’ll resource the contract and whatever the cost of that is you’re going to pay plus a margin cost plus can work sometimes when you really are not sure about volumes and things like that but i was I would always say to people go for a unit cost so you want your rate structure in there how you’re actually going to be paying for the service.

what i often like to do as we’re developing the contract and this would happen through the rfp or rft process is really to get the 3pl’s responding with what they believe their costs are in in a fixed and variable way so if you imagine all of the fixed costs let’s say in operating and  warehouse management there’s going to be the warehouse lease all of the all of the costs that are not impacted by the volume going through the warehouse so there’s going to be lease costs management overheads there’s going to be probably a base level of salaries and wages there’s going to be base level of maintenance so those are your fixed costs and then you’ve got the variable costs that rise and fall depending on the volume actually being processed through the warehouse.

so that could be additional labor overtime consumables all those sorts of things which are volume dependent i always like to see a contract costed with two buckets of costs the fixed and the variable and then quite often that allows you to actually put together a fee structure which says hey we’ll cover the fixed costs every month and then we’ll have a variable sort of unit cost to cover these other costs and that’s going to go up and down depending on volume so of course there’s many different ways to actually structure those contracts.

but that’s just an example of one so certainly number two cost management how are the rate structures going to work um talk about sort of rise and fall mechanisms so how will it be impacted by increases in labor costs and fuel costs and all those sorts of things, so  you know who’s responsible for losses.

So we’ll allow a certain amount of damage and loss but of course that wants to be a minimal amount so all of those things are in cost management.

3. Continuous improvement

Number three is continuous improvement because whilst you are setting out with a certain service and cost in mind you should be encouraging the 3pl to improve that service and cost over time as well so it’s not just a static thing you know we’re not just paying five dollars a unit now and in five years’ time it’s five dollars a unit plus cpi we want to see that cost coming down that unit cost and we want to see the service going up perhaps and this is where you can have all sorts of incentives with the 3pl so that they can be gain sharing and so on so, continuous improvement really important.

4. How do you manage the contract?

How are you going to manage the contract? you do not outsource warehousing and transport and sort of throw the task over the fence now for the 3pl or the transport carrier to look after it for you have to manage the relationship how will that be managed who’s going to be who’s going to be managing it how often will performance reviews take place and what’s the agenda for those all of that can be mapped out during the rfp and rft process and actually put into the contract.

so have clear expectations, make sure that you have cost management very clear in the contract, make sure you have continuous improvement and make for sure you have a very clear framework about how that contract is going to be managed Thus you will be able to avoid those common mistakes in logistics outsourcing contract.

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Warehouse Processes is one of the most important support functions in organizations and companies; Because it plans and organizes the storage and maintenance of materials and supplies the customers or the main departments within the company with their needs in a timely manner to ensure the continuation of their work efficiently and without interruption, and in this article we will learn together about 7 Key Warehouse Processes.

What are Warehouse Processes ?

A warehouse is a commercial building for storing goods, and Warehouse Processes are used by manufacturers, suppliers, as well as exporters and wholesalers, and are usually large flat buildings in industrial areas, and the warehouse is provided with loading platforms for loading and unloading goods from trucks.

7 Key Warehouse Processes

Although all Warehouse Processes differ in the way each process is performed physically and controlled electronically, there are 7 main processes that all warehouses share, and below we will show 7 Key Warehouse Processes:

1. Receiving

Receiving means handling the products in a warehouse and on a specific system, and those products or items may be large or small, and one of the best ways to deliver the products is the (ASN) method, which means prior shipment notice. If the delivery service is using (ASN), operators can scan bar codes. For the shipment and receipt of goods or items from the order itself,

2. Put-Away

Good systems motivate employees, so if there is stock in preparation waiting to be transported to the storage location, the cleaners scan the barcode of those goods to be put away, and at this stage the system will direct the storage personnel to deliver the goods to the appropriate storage location.

When the products or goods arrive at their location, the operator will either allow the barcode of the goods or manually verify that the goods are in the correct place.

3. Picking

After the elements are received, they are downloaded and then picked, and this Picking may be separate or in a group, and in general there are two main types of selection, namely:

• Basic selection: in which the selection is done for the first time and for the last time as well, where selection is made at the beginning on the packing table, then shipping and dispatching, so the first selection becomes the last also.
• Secondary selection: selection is done for the second time, and after the spread of online sales and e-commerce, a large number of companies are conducting secondary selection processes largely.

With the increasing sales of items over the Internet, companies are increasingly installing picking devices on belts and walls, in order to handle the largest possible number of orders.

But in general, selection uses a large amount of resources, and smart picking systems and WMS are essential for large and complex companies in their operations.

4. Packing

Packaging is an extension of the selection process, which must be managed and handled with great care in Perfect order to ensure that orders will be complete and accurate. There are many ways in which goods are packed, and the following are the best rules by which you can reach a successful packing process, and they are:

1. That the selected goods and products be traceable in terms of the location from which they were previously picked, with the importance of having the relevant usage dates, as well as batch dates and codes.
2. The necessity to verify accuracy and quality assurance in the process through various verification processes.
3. Attempting to merge the goods that were picked from multiple areas within the warehouse, while trying to manage the system more easily in order management to ensure the completion of the order.
4. All goods must be packed according to volume, quantity, required temperature, value, as well as legislative requirements.
5. The need for shipments to be also traceable through the system itself.

5. Dispatching

There is the so-called art of successful dispatch, an art that many companies are ignorant of, and which means the ability to prepare goods for timely departure for carriers to load their trucks. Therefore, the manager must balance the times of delivery of goods, as the arrival of goods too early or too late will result in a lot of chaos, so a large number of companies resort to picking and packing in waves in line with the delivery methods that have been identified, or types Transportation companies.

6. Returns

Returns are the most complex part of any business, so there has to be a defined process for recording the entire transaction accurately and reliably.

We find that every company wishes its returns to disappear, and due to the e-commerce revolution, the volume of returns is increasing for many companies, and there are a number of things that you must do when processing returns, namely:

• When a customer returns goods, he must obtain permission from the Return Department, in which the item being returned and the reason for returning it shall be clarified as well.
• The necessity that all returns can be tracked easily, through its invoice.
• The company should set up a returns process so that it specifies in advance what to do with the returned goods.

7. Value-Adding

Added value is an economic term referring to the value of the transformation that occurred in a substance as a result of a specific production process.

Value added is also related to performing the work itself on a product, and the process of adding value can be more complex, especially when many different elements are combined to form a new product.

But with the tremendous development witnessed by the current era, and modern technical methods, systems have evolved to help complete the processes of adding value.

The post 7 Key Warehouse Processes .. What are they? appeared first on LOGSTIAT FOR LOGISTIC CONSULTANT & LOGISTIC TECHNOLOGY.

The inventory is one of the largest physical assets that reflect the management’s efficiency in operating capital, which is listed on the assets side of the balance sheet, and there are many types of inventory and there are 4 basic types of inventory we will show you in this article, and in general if you want to run your business To effectively reduce your costs, you are in dire need to understand the special types of inventory, which we will present in some detail and explain how LOGSITAT logistics solutions can help you through the inventory management program that it provides to you.

What is the inventory?

Inventory is an asset that a company holds either to sell or to use in production; consequently, the inventory is divided according to its function into two types: sales inventory, which is finished products ready for sale, and production stock, which includes raw materials and semi-finished materials (in operation).

What are the 4 types of inventory?

Inventory has a number of different classifications, and each classification has a special importance in the supply chain, and in general, there are 4 types or stages of inventory.

And in order to be able to manage your inventory effectively, you are in dire need of a good understanding of the four types of inventory, and the following is an explanation of those types:

1. Raw Materials

One of the most important types of inventory is raw materials, as they are the basis for turning your inventory into a finished product that can be used.

2. Work-In-Progress

The second type of inventory is the stock in progress or the one that is still being worked on, and it includes raw materials, labor and general costs, and it is also important because without it the final product will not be provided, and if you provide medical products, the packaging in which those products will be placed is The part that can be considered work in progress.

Finished Goods

The third type of inventory is finished goods, and it is the most direct type of inventory, because it is finished goods that are already completely ready for sale and display to the public.

Overhaul / MRO

We can define MRO inventory in the name of maintenance, repair and operating requirements, and it includes those small details in any commodity or product that you provide, as it represents the element used in the production of the forum itself, but it is not included in the final product, such as the gloves that you used to handle the medicine package that you manufacture, for example.

How LOGSTIAT Inventory Management Software Can Help

LOGSITAT inventory management software can help you monitor all activities related to your inventory.

The inventory management system helps you to organize your inventory, by using LOGSTIAT modern technology that automatically distributes shipments with a programmed audio system for each case in your warehouse,

The following are the most prominent services that LOGSTIAT inventory management software provides:

• Once you scan the barcode, you can know the destination of the shipment.
• A sound system for every situation and city.
• A smart system that refuses to receive duplicate shipments and informs you of the error.
• Automatic update of every shipment once shipments are scanned.
• Extracting data and reports and saving them for this system.
• Printing labels for each shipment automatically in case the shipment is scheduled.
• It does not require experts to handle the system and more manpower.
• Do not lose any scheduled shipment, extract it and prepare it for delivery.
• Alerts for shipments not sent for delivery.
• View alerts for duplicate or unregistered shipments.
• Alerts on shipments that have not been returned to your customers in the required time.

The post What are the 4 types of inventory? appeared first on LOGSTIAT FOR LOGISTIC CONSULTANT & LOGISTIC TECHNOLOGY.

Shipping for Shopify, E-commerce sales, especially shopify, have grown significantly in the past few years, and e-commerce sales are expected to increase from $ 2.3 trillion in 2017 to $ 4.5 trillion in 2021, especially after the health restrictions and the spread of the Corona pandemic in all around the world.

Shopify is one of the most popular and easy-to-use tools if you want to create your own online store, it is a subscription product designed for beginners who want to create their first online store and start an online business, it is very easy to use and with this tool you can create an online store Professional in record time!

What is Shopify?

Shopify is a commercial platform that allows anyone to create an online store with great ease and sell their products.

Shopify began more than ten years ago when the founder of Shopify wanted to sell snowboards, as he soon realized that it was extremely difficult to sell online without using an easy-to-use e-commerce platform.

So he decided to create an easy-to-use platform himself, and that’s how Shopify was created.

What is dropshipping?

It is intended to display products of one of your suppliers on your site and when you start receiving orders for different products, you transfer those requests to the supplier.

As this supplier ships those orders directly to the customer, and that does not require you to any actual intervention in manufacturing, purchasing, or even Shipping for Shopify products.

Shopify dropshipping an ecommerce shop

I do not know if you have heard about the term dropshipping, but we can say that the biggest suffering for people who work online in the field of electronic selling or trade in general is the purchase of goods and storage.

Simply because you can buy a commodity in a certain quantity and then do marketing for it and try to bring in buyers, but it does not succeed and therefore you lose all your capital or even the difficulty of storing and finding a suitable place, especially if you are a beginner in trade and do not have the best enough.

Therefore, a new method appeared which is that there is no need to buy a large amount of the product, store it and then sell it, you only have to communicate with the supplier to ship the product to the customer directly from the factory and you get your commission or profit.

And you can create your own online store and specialize in displaying other people’s products in it and get only your percentage or commission from selling and displaying and thus achieving profits without any problems regarding the possibility of losing your capital or not selling the goods that you have purchased.

Shopify dropshipping for beginners

The ability to sell physical products is the main focus of shopify, as it is exactly like Amazon, but you can control your store completely.

In general, it is difficult to set up an online store through many other platforms and to do sales, unlike the ease of the Shopify platform.

Therefore, Shopify has reduced you a lot of technical and financial effort to start selling online. These are a few steps and your store on the Shopify platform is ready to work and get purchase orders.

Shopify can help you to make a profit and your own business, as when you create your store on Shopify, you will add pictures of the product that you will sell and then put your own profit price on it, for example a smart watch that costs $ 20 from the supplier, and you put a profit increase on it to reach its price of 45 Dollars.

Thus, so that it guarantees a profit, especially with the work of a marketing campaign for the product, it will pay costs that are deducted from the profit, so it is important to create a plan to start an e-commerce project.

The first step to building a dropshipping company is to know what you sell and who your target customers are. You must define the field or type of products that you will offer and to whom you will provide them, and here are the basic steps for beginners:

1. Search for keywords

Start by creating a list of product keywords in your potential market. You can do this by brainstorming and trying to find all the keywords for the product that you will be offering.

2. Select product trends

Having keyword data is important, but of course you will also need to combine this with data on the trends of the product you intend to show. This is so you can see if an item is gaining popularity and has an audience that needs it or not.

3. Check your profitability

The popularity of the product is definitely a good indication of good profits initially, but that is not enough, you need to research to find out how profitable the product you are going to offer.

You can also read : The 5 key factors for a successful delivery service

How do I set up shipping on Shopify?

Here are the steps that will help you to configure Shipping for Shopify settings in the Shopify store:

1. Go to the Control Panel in the Shopify settings first and click on Shipping or Shipping Settings, and here the address that you registered with at the beginning will appear.
2. You can choose an address in the United States of America, then (domestic shipping) we will amend the domestic shipping and make it the United States of America, for example, and then we click on Add and with this we set the data.
3. The shipping price is determined here according to weight or volume or according to the price or the carriage, for example by weight we will divide it into categories (light weights from … to …) and heavy weights (from … to …) and we will determine a shipping price for each category.
4. For each specific weight or weight category, we will set a shipping price for it and shipping here can make it free because we work in drop shipping and my earnings will be from the price of the products, or it is possible that I take my gain from the shipping price and offer the product at a low price.
5. Then, upon completion of the internal shipping settings, we save it, and then return again to shipping, we will find here that the internal shipping has become defined according to the categories that you previously specified.
6. Then we will click on edit to set the shipping price to the rest of the world, and it includes 239 countries, and I divide the shipping price here also into categories, as in the past, for example, according to weight, and often in our work we will rely on free shipping, so this price that you put is an additional gain for you if you do not want it, do not specify a price for shipping .
7. Finally, we save the settings.

Shipping for Shopify rates

Shipping for Shopify rates are those prices that you charge to your customer, along with the cost of the product itself that the customer orders.

Shopify allows you to choose a variety of shipping rates and methods to appear as options for your customers, and when creating shipping rates, you can define the rules you want regarding the available shipping methods based on the contents of the customer’s shopping cart.

Shopify provides you with the best shipping rates due to the partnerships that the site has with the most famous leading shipping providers around the world, ensuring that you get a winning deal for sure.

Best shipping for Shopify

Shipping for Shopify makes it easier and faster to fulfill orders, and solves many common shipping problems. You can purchase shipping labels directly in Shopify, print multiple labels simultaneously, and get orders out of the door quickly.

Shipping for Shopify helps you fulfill your customers’ orders faster, and it can also solve shipping problems, and there is more than one form of Shipping for Shopify.

Shipping for Shopify works with the most popular shipping companies in the world, such as USPS, UPS, and DHL, and offers multiple categories of mail with each carrier.

Therefore, Shipping for Shopify gives you access to numerous features, as:

• Fast delivery.
• Receipt of parcels.
• Shipping insurance.
• Tracking information.
• International shipping.

It can also provide you with that entire at the most competitive price for each shipping service, and include them automatically in every plan at no additional cost to you.

LOGSTIAT Fulfillment handles your shipping for Shopify

LOGSTIAT Fulfillment can handle your shipping for Shopify, helping you get the products ordered into customers’ hands easily and quickly, from the moment a customer’s order begins, right up to the moment they receive their order.

Best Shopify Fulfillment warehouse with our partner LOGSTIAT

And our partner LOGSITAT can provide you with the best shopify Fulfillment warehouse where the products are delivered on the same day and pack kits and customize products, especially since LOGSITAT guarantees you the highest standards of quality, productivity, storage and space in the Kingdom of Saudi Arabia.

It is also through the modern technology provided by LOGSITAT that you can track your entire inventory online and without making any contact as well, regardless of the size of your business, the DigiPack provides you with the necessary space.

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optimize Warehouse Layout. Planning a well-designed warehouse is one of the most important things that you must consider that will help you in running your warehouse optimally, and it also saves you many procedures, time and costs as well, a well-designed warehouse planning enables you to effectively process orders and simplify your operations in a great way, and in this article we will learn about the benefits of optimizing Warehouse Layout and how to optimize Warehouse Layout.

Optimize Warehouse Layout

Optimize Warehouse Layout means enhancing the various stages that occur during the order execution process, the goal of any company is to obtain the right products for the right customers, in the shortest possible period of time.

And in order to be able to improve your warehouse, you need to improve a number of processes in turn, such as operations receiving, selecting, packing, shipping and storing as well.

The benefits of optimize Warehouse Layout and design 

Improving the warehouse has many benefits that will positively affect the performance of your company as well as your revenues. The following are the most important benefits of improving the warehouse:

• Optimizing your use of space.
• Increase warehouse productivity and save money.
• Achieve your business goals and make your customers happy with orders that arrive on time every time.
• Improve traffic flow in your warehouse.
• Reducing inventory losses.
• Enhance overall efficiency.

Collect information and analyze the data

In order to be able to optimize warehouse layout, you need more and more data, which will help you in planning your warehouse, determining the inventory, as well as the required items with high efficiency, and the most prominent information you will need in this regard are:

• The receipt.
• Shipping.
• Items collection and handling areas.
• Quality inspection.
• Reverse storage Forward picking.

Of course, you will also need to verify the inventory you have, and warehouse management systems can also help you optimize warehouse layout.

How a warehouse management system (WMS) helps you optimize Warehouse Layout

The warehouse management system is a software solution that provides visibility to the entire inventory and manages supply chain implementations from the distribution center to the store shelves.

In today’s dynamic multichannel fulfillment economy, connected consumers want to buy anywhere, and return anywhere and this is what WMS can provide.

A warehouse management system can help you facilitate the optimization of your warehouse layout, enabling you to organize and handle all activities and resources in your warehouse.

Optimize Warehouse Layout and picking strategy

Improving the flow of items in your warehouse will help you verify that all items are being picked correctly, thus reducing travel time, enhancing the work environment and making it more efficient.

Here are a number of points that can help you in optimizing warehouse Layout and picking strategy:

• Choose the path: that is focus heavily on the picking path, because through it will be moved to it when processing orders, which will significantly improve productivity and efficiency.
• Replenishment Strategy: You must verify that your sourcing strategy is well aligned with the picking strategy, so that you can choose enough inventories to meet all orders.
• Choose Face UoMs: don’t forget to also separate storage units that will help you make it easy to store and pick up with the appropriate handling equipment.

Implement an ongoing optimization strategy in your warehouse

If you want to ensure that your warehouse runs as efficiently as possible, then you need to implement a continuous improvement strategy in your warehouse, and thus gradually make improvements in the planning of your warehouse, by relying on the data that the warehouse management system will provide you with.

LOGSTIAT can help you provide the best warehouse management system, especially as it has modern technology that automatically distributes shipments with a voice system programmed for each case in your warehouse, and many other distinctive services at competitive prices.

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Fulfillment centers are one of the most important things that help electronic stores to use external sources for shipping and storage operations, and this has a great impact on reducing the space needed to store all products, as the merchant sends his goods to Fulfillment centers and they store them and then ship them to customers on their behalf, and thus The storage issue that might be experienced by a large number of e-store merchants is being solved and in this article we will talk about Fulfillment centers and their importance.

What is a fulfillment center?

Fulfillment centers are physical locations where merchants can send their goods to be stored and shipped to clients on their behalf. They are third-party logistics (3PL) providers.

Thus fulfillment centers receive orders on behalf of e-commerce retailers and prepare and ship orders to customers, saving time and effort for e-commerce businesses.

How do fulfillment centers work? 

Fulfillment centers fulfill the requests of customers of a particular store on behalf of that store; they are key links in the company’s supply chain,

So fulfillment centers help e-commerce companies in controlling local inventory as well as receiving and shipping orders to customers on time.

These fulfillment centers receive the products of the e-commerce companies and place them in the storage centers that they own to fulfill the customers’ requests.

Once the customer completes the purchase process, the fulfillment center identifies those items and prepares them for shipment to the customer.

Fulfillment centers can process orders from company to company (B2B) as well as process company-to-customer (B2C) orders.

What is a fulfillment warehouse?

A fulfillment warehouse is defined as a fulfillment center, but the most prominent difference between warehouses and the fulfillment center is that a warehouse is a place for storing products and items inside only, but fulfillment include a large number of operations besides the process of storing products.

You can try the Fulfillment System offered by LOGSTIAT

What are the differences between warehousing and fulfillment centers?

You may think that fulfillment and warehouses are the same and there is no difference between them, but you are wrong. There is a big difference between warehouses and fulfillment. Here are a number of points that illustrate the most prominent differences between them:

1. Warehouse specializes in storing products and items, but fulfillment also store products and fulfill customer orders more efficiently and effectively than in

2. Warehouses are more stable, but fulfillment are constantly moving, as it performs a large number of functions besides the function of storage, where:

• Receiving the inventory
• Prepare picking lists for items and products
• Processing of product packing boxes.
• Preparing shipping orders.
• Returns management.

3. Warehouses may not have relationships with multiple shipping companies, unlike fulfillment, which have many relationships with a large number of shipping companies, and therefore can deliver products faster to customers and also at a lower delivery cost because they find the best offer.

4. Warehouses can offer long-term storage options, while fulfillment relies heavily on short-term warehousing, as they focus on rapid inventory turnover, thus storing products for a company in the short term only.

5. Also, the longer the period of storing products, the greater the cost to the retailer, but storing his products in his own warehouse will not cost him all of those costs.

Eliminate storing inventory and packing boxes

And storing has many benefits, and perhaps the most important and prominent benefit is Eliminate storing inventory and packing boxes,

especially since there are a large number of retailers who do not prefer to take over the task of packing and sending products to customers, especially that in the case of increasing orders, the matter becomes more difficult for them. .

Here, fulfillment centers come to solve this problem by assuming the task of storing, packaging and shipping products to customers also on time on behalf of retailers in electronic stores.

They are ready to complete the largest number of orders in the least possible time, which provides retailers more time to grow their business and focus on other important things.

Can a fulfillment center do one- or two-day delivery?

The answer is of course yes, as provides retailers with many fast delivery options, which include the ability to ship within a day or two, and also the ability to ship on the same day.

And these services differ from one fulfillment center to another according to the geographical location of the shipping center as well as the technologies used and companies Transport that is handled.

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Inventory cycle counts is one of the important practices that ensures that your inventory records are accurate and free from any fraud, and Inventory cycle counts allows tracking the movement of inventory in terms of outgoing or incoming, and thus knowing the turnover rate of each product, and accordingly order management are prepared from Items that are not available, or orders for fast-revolving products in the appropriate quantities, and this is only done by continuous monitoring of stocks, and in this article on LOGSTIAT we will show you how often cycle counts should be performed.

What is an inventory cycle count?

An inventory cycle count means counting a small amount of inventory you own on a specific day without having to do a completely manual inventory, and it is a type of inventory sampling technique that allows you to match the accuracy of your inventory records with the actual inventory available.

Why Are Inventory Counts Important?

The process of inventory counting is very important, as it allows you to know the inventory that you have at a specific time. Here are a number of points that show you the importance of inventory counting:

1. Avoid running out of stock

Inventory counting helps you to store your items in an orderly and accurate manner and thus forecast demand,

And as a result you will be able to improve your inventory levels, and thus lower costs and higher revenue.

2. Determine the possible losses and reduce them

Inventory counting helps you determine and prevent your potential loss by determining how long and how much inventory you own.

3. Determine your inventory accurately

As we talked about in the introduction, inventory counting gives you complete and accurate information about your inventory levels, thus providing clear information for the entire supply chain management.

How often should inventory cycle counts be done?

There is no fixed number for calculating inventory cycle counts, there are many factors that in turn affect how inventory cycle counts, where:

• The value of inventory
• Inventory turnover
• The amount of seasonal demand for your inventory
• How accurate the inventory is and the efficiency of your employees

All of this will enable you to determine how often cycle counts should be performed.

Best practices for determining when to perform inventory cycle counts

Although there is no fixed number for calculating inventory cycle counts as mentioned in the previous section, there are a number of recommended practices that can help you determine how often cycle counts should be performed:

1. ABC Analysis Cycle Counting

ABC analysis is one of the ways to help companies or factories focus on controlling the more important inventory. For example, class (A) items include about 20% of your items but contain 70% of your inventory value,

And class (B) items include about 50% of your items but It contains only 5% of your inventory value, also Class (C) items include 30% of your inventory but contain only 25% of your inventory value and so on.

2. High-Usage Cycle Counting

If there are items that are delivered frequently, they should be counted more frequently no matter how expensive even if they are expensive, then the items with high and frequent use should be counted frequently.

3. Control Group Cycle Counting

If you are calculating specific parts of your inventory to determine whether or not your entire inventory is accurate, of course, the Control Group Cycle Counting method is suitable.

Thus, you do Control Group Cycle Counting more than once a month, which helps you identify any errors in your stock.

4. Random Cycle Counting

If you have a large amount of similar inventory, the Random Cycle Counting method is best suited, which means that you take a part, but not the whole, inventory to check how well the inventory matches what is already there.

How to automate inventory cycle counts

Inventory management systems take two forms, either manual or automated, and a large number of companies have started moving towards Automating the Cycle Counting Process, through:

1. Use of inventory management software

Traditionally, warehouse owners write inventory data manually, but with automation, inventory management systems have become more appropriate, more accurate, saving time, effort and labor costs, thus eliminating additional costs.

Inventory management systems transfer and process inventory data automatically and then upload it to your own system. The data is also updated periodically, which helps in promoting more effective inventory management.

2. Use of mobile scanners

Instead of hand-delivering and designing count sheets, there are mobile scanners, which provide inventory data by scanning the barcode on each item in your inventory.

That data is then transferred to your inventory system easily and quickly, so these mobile scanners make it easy to manage your inventory in real time.

So automate inventory cycle counts helps you keep track of your inventory properly and audit it in real time, eliminating tedious work and extra costs.

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E-commerce retailers need robust order fulfillment strategies in order to retain customers and build a good reputation for them and their online brand. Square brand is one of the powerful solutions companies are turning to so that they can accept credit cards easily and affordably. Indeed, the Square brand has achieved remarkable success in e-commerce, and in this article we will talk about how to set up a fulfillment system on your Square Online site

Top ecommerce sites require powerful fulfillment solutions

Retail fulfillment for ecommerce is very important, because it is in fact one of the most important components of the e-commerce supply chain, which entails building a good online brand reputation.

Simplified fulfillment strategy helps increase order accuracy and reduces the likelihood of buyers dropping out of their shopping cart—building customer loyalty toward your brand.

In fact, businesses have a few different fulfillment options for fulfilling customers’ shipping orders, and they are:

• Self-fulfilling orders in-house.
• Managing a warehouse
• Partnering with a third-party logistics (3PL) company.

What is Square? 

Before we start talking about order fulfillment, we will first need to get to know Square, which is one of the powerful fulfillment solutions that supports companies working in e-commerce by providing them with a set of business management tools.

In addition to making it easier for stores to obtain credit cards, it is an electronic platform that makes it easier for retailers to set up an online store,

Along with a number of other useful services, such as processing payments and providing individuals with innovative delivery solutions.you can try our Delivery Management Software To access these services

Square order fulfillment

There are a number of fulfillment options Square offers you, and here are the top 4 types of square order fulfillment:

1. Delivery orders

The first type is Delivery orders, and Square has helped make it easier to fulfill orders locally, by allowing your customers to have their order delivered from their nearest physical location.

2. Pickup orders

The second type is Pickup orders. Customers who buy items online through your online store can pick it up themselves from their nearest retail location, with an automated text message sent to them when their order is ready.

3. Curbside orders

The third type, which some customers prefer, is the Curbside Pickup, in which orders are delivered to customers manually by parking their cars in designated areas, providing greater safety for customers.

4. Shipping orders

Our fourth and final type is shipping orders, where Square facilitates the process of shipping items to customers in a simple number of steps.

It integrates with all possible fulfillment solutions so that the process goes as easily and as efficiently as possible.

When shipping to nationwide customers, you have 2 options

E-commerce companies offer two key options for shipping to nationwide customers:

1. In-house fulfillment

It includes fulfilling orders yourself, and the in-house fulfillment process often takes somewhat longer,

Because that process involves managing inventory, shipping orders, as well as picking and packing.

Also in this type of shipping there are many other hidden costs, such as the costs of packaging materials suppliers, the costs of shipping insurance,

And the opportunity costs of spending too much time on the logistics, which makes In-house fulfillment an ineffective model.

2. 3PL (third-party logistics) fulfillment

It is the second best option compared to the first option, as 3PL (third-party logistics) fulfillment can help you provide an efficient and robust fulfillment center network, along with providing advanced technology.

This new technology will help you in automating the implementation process and thus speeding it up, and 3PL (third-party logistics) will save you a lot of time and effort to invest in growing your business.

3PL fulfillment allows your store to grow faster

3PL’s fulfillment technology is very useful for commercial companies, as it helps in automating most of the processes,

Thus, reducing potential human errors, in addition to saving the time and effort that you will spend in completing and following up on logistics services.

3PL provides you with the ability to focus on promoting your online store, by delegating the execution of orders to experts and specialists,

Below are a number of benefits that syncing your store with 3PL’s fulfillment solution can provide you:

1. Automated order processing

3PL execution technology can help automate some order management processes, providing you with the possibility of automated order processing.

2. Optimized storage

3PL will provide you with the right space for your inventory, they are experts in warehousing and order fulfillment,

And they handle a number of other aspects of order fulfillment, which will bring you maximum efficiency in order fulfillment in the fastest time.

3. Distributed inventory

3PL will also help you divide inventory across multiple fulfillment centers thus reducing shipping costs as well as delivery times for customers.

Choosing your order fulfillment partner

After we talked about order fulfillment and the importance of choosing an order fulfillment partner, you should consider a number of things before choosing your order fulfillment partner, as:

1. Define your budget

Fulfillment costs vary based on the 3PL you partner with and their pricing model, so before partnering with one of them check their rates and your budget.

2. Review the locations of the partner’s distribution centers

When choosing an order fulfillment partner or working with 3PL check that they have several well-located distribution centers so you can split your inventory across more than one location.

This will save you the possibility of having your inventory available in many shipping destinations, thus significantly reducing shipping costs.

3. Check out the available packaging options

A number of 3PLs give dealers the option of using standard packaging or custom brand packaging.

They also have partnerships with individuals who offer innovative packaging solutions that you can take advantage of if you like and use custom packaging.

4. Check the availability of customer support

Customer support helps provide peace of mind for you and your customers as well, so check with your partner about the customer service they provide and how they can provide a complete view of the implementation process.

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