Author: Brad Baecker

Capitalizing on the most effective warehouse logistics and running a successful eCommerce warehouse operation can be a challenging endeavor, especially when faced with common problems that can hinder efficiency, safety, and profitability. However, with the right strategies and solutions, these issues can be addressed effectively. Here are the top five most common warehouse problems and how to eliminate them:

1. Inefficient Space Utilization

Problem: Many warehouses struggle with maximizing their space. Poor layout and organization can lead to cluttered aisles, misplaced items, and underused areas, all of which reduce the overall efficiency of operations.

Solution: Implement a strategic warehouse layout that maximizes the use of vertical and horizontal space. Consider using taller storage units and the right shelving systems to accommodate more items. Additionally, optimize picking locations using location naming conventions. Regularly review and adjust the layout to adapt to inventory changes. Employing warehouse management systems (WMS) such as SKULabs, can also help track and optimize space usage.

2. Inventory Inaccuracy

Problem: Mismanaged inventory can lead to several issues, such as stockouts, overstocking, and financial discrepancies. Manual processes and human errors often contribute to this problem, affecting customer satisfaction and operational efficiency.

Solution: Adopt automated systems like barcode scanners for accurate, real-time inventory tracking. Regular audits and cycle counts can also help maintain accuracy. A robust WMS can streamline inventory management and vastly improve your warehouse logistics, providing precise data for better decision-making. Solutions such as SKULabs can help reduce or even eliminate picking and packing errors saving you valuable time and money spent on customer service and the wrong items being shipped to customers.

3. Picking and Packing Inefficiencies

Problem: Inefficient picking and packing processes can lead to slow order fulfillment, increased errors, and higher labor costs. This often stems from poor layout, inadequate staffing, or ineffective methods.

Solution: Optimize the warehouse layout with strategically placed items to minimize travel time. Utilize the ABC grouping methods to help optimize product placement in the warehouse closest to your packing stations. Additionally, with intelligent inventory management software such as SKULabs, you can implement zone picking, batch picking, or wave picking techniques suited to your operation’s size and nature. SKULabs lets you check each item to know whether it is an A, B, or a C categorized item. Regularly run this report to consistently optimize item placement in the warehouse. If budget allows, consider automation tools like conveyor belts, robots, or automated guided vehicles (AGVs) to speed up the process. Training staff regularly and employing ergonomic practices can also improve efficiency and accuracy.

4. Safety Hazards

Problem: Warehouses can be dangerous places with risks of accidents and injuries stemming from falls, equipment, or heavy lifting. Safety hazards can lead to employee downtime, legal issues, and costly compensation.

Solution: Conduct regular safety audits and training sessions to ensure all employees are aware of best practices and emergency procedures. Keep aisles clear, mark hazardous zones clearly, and maintain equipment regularly. Investing in safety equipment like proper lifting gear, non-slip mats, and guardrails can significantly reduce accidents and improve performance.

5. Labor Shortages and Turnover

Problem: Finding and retaining skilled warehouse staff is a challenge many facilities face. High turnover rates can lead to operational disruptions, increased training costs, and a decrease in overall productivity.

Solution: Offer competitive wages and benefits to attract and retain employees. Create a positive work environment with opportunities for growth and development. Regularly training and upskilling employees can improve job satisfaction and efficiency. Additionally, consider automation to reduce the strain on staff and cover for labor shortages. Solutions such as SKULabs helps keep your orders and inventory on track. Cycle counting in SKULabs takes the burden of the infamous yearly / monthly inventory away from the employees. It involves auditing a small subset of inventory items in the warehouse at specific intervals, maintaining accurate inventory levels. Rather than halting operations to count all items, companies adopt regular cycle counts. This approach promotes consistent accuracy while allowing day-to-day operations to proceed unhindered.

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Implementing Solutions

Eliminating these common problems requires a proactive approach and continuous improvement. Here are general steps to implement these solutions effectively:

• Assess and Plan: Regularly evaluate your warehouse operations to identify areas for improvement. Develop a clear plan with specific, measurable goals.
• Invest in Technology: Leveraging modern technology like WMS, automated tools, and data analytics can significantly enhance efficiency and accuracy. Whether you are using a single or multi-warehouse operations, SKULabs can help ease the burden of automating most of your tasks.
• Train and Engage Staff: Ensure your team is well-trained and engaged. Their insights and cooperation are crucial for successful implementation.
• Monitor and Adjust: Continuously monitor performance against your goals. Be prepared to adjust your strategies as needed to address new challenges and opportunities.

Warehouse logistics are central to the success of many businesses. By understanding and addressing common problems like inefficient space utilization, inventory inaccuracy, picking and packing inefficiencies, safety hazards, and labor issues, you can significantly improve operations. Implementing the right solutions will not only enhance efficiency and safety but also contribute to better customer satisfaction and profitability. Remember, the key to overcoming these challenges lies in a strategic, integrated approach that involves technology, people, and continuous improvement.

Connect with SKULabs Today

Now is the perfect time to discuss how we can help you get prepared for taking your business to the next level!

Chat with one of our experts today. Schedule a meeting or give us a call at 1800-243-2986 to learn more.

Welcome to the world of Intelligent and efficient inventory management with SKULabs! If you’re new to this powerful tool, you’re likely eager to dive in and start incorporating your order fulfillment and inventory tracking processes. This blog post will guide you through the initial steps of onboarding with SKULabs, ensuring a smooth and successful start to your journey. Once these simple steps are completed, reach out and schedule your first onboarding account review. If you have not spoken with anyone on the team before you have signed up, we recommend reaching out to have brief conversation so we can put a game plan together that would work best for you.

SKULabs

SKULabs is an all-in-one inventory management and order fulfillment solution designed for eCommerce businesses. We integrate with multiple marketplaces, shopping carts, POS systems and shipping carriers, providing a centralized platform to manage your inventory, orders, and shipments. Whether you’re a small startup or a growing enterprise, SKULabs can scale to meet your needs.

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Have Questions or Need Assistance?

Remember at any time during your setup, if you have a question or need some guidance, you and your team always have quick access to your account manager through our in-app chat system! simply click your name at the top right, and click on contact us. This will open the chat dialog where you are free to reach out with any questions you might have. We are here to help you get set up at every step of the way!

Step 1: Setting Up Your Account

Sign Up and Choose Your Plan

First things first, sign up for an account on the SKULabs website. Choose a plan that fits your business size and needs. We offer various pricing tiers, so consider factors like the number of orders you process, the number of sales channels you are using, and the number of users you will need. These plans are designed to be flexible, so no need to jump to a higher package if you go over the order limit or want to add an additional store or user.

Our pricing page shows the amount given on each package and the cost for the add-ons such as additional channels, orders, users or warehouses. For example, a Starter plan that does 1100 orders per month will only be charged for the additional 100 orders ($20). This gives our users the flexibility to grow at their own pace without having to jump to higher packages once the limits have been reached.

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Account Configuration:

Once signed up, and you are starting your initial onboarding with SKULabs, the in-app wizard will guide you through an initial setup process. This includes setting up your company profile, adding users, and configuring basic settings like time zone and currency. Click on Get Started and follow the in-app guide or you can use our help article to get the ball rolling and start onboarding with SKULabs!

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Step 2: Integrating Sales Channels

Connect Your Stores

Integrating your eCommerce platforms with SKULabs is a crucial step. The wizard will take you step by step helping to connect your online stores (like Shopify, Amazon, eBay, BigCommerce). This integration allows SKULabs to sync your listings and orders to commence with the initial catalog creation within the app. If you are using multiple sales channels, we recommend connecting first the channel that houses most of your inventory, has the most complete information, and desired SKU #s that you would like to move forward with. You can still continue your day to day operations and fulfill your orders using your previous methods. You will notice SKULabs will move orders from the order processing tab to the shipped tab as your channel status changes to fulfilled or shipped.

At this stage, stock sync is not yet activated and you will be in a virtually read-only mode for your setup and testing purposes.

Stock sync will be the last step in onboarding with SKULabs before going “live” and at this stage we want to ensure all stock levels in SKULabs are what you want them to be.

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Step 3: Creating your SKULabs Catalog

Import Your Inventory

You can import your inventory into SKULabs via direct sync from your connected stores (or via CSV if necessary). Make sure your inventory items on your sales channels include essential details like SKU, product names, quantities, and barcodes. Additionally, and depending on your sales channel, make sure these items are active, set to track inventory, and physical (not digital) items. Some channels require at least 1 in stock to consider them an active listing. Keep in mind this is just the initial import to get a snapshot of your catalog. It is often standard procedure to import again and start fresh if any catalog errors are revealed. Avoid creating any kits or doing a lot of manual edits to your catalog at this stage until you have had your first onboarding account review with SKULabs. During this initial onboarding, we will do a thorough review of your account and catalog and guide you through the next steps to simple and accurate inventory control.

Each store has its own settings to manage the initial import. These settings give you the option to import stock levels from the sales channel, as well as assign them to one of your warehouses. There are also additional settings if you do not have barcodes and would like SKULabs to automatically generate them upon catalog import. Under the catalog setup settings, the “Build new items and link listings” is the default to use if importing items from your channel.

Skulabs will sync item information including inventory levels from your sales channels only upon the initial import of a new listing during catalog creation. This is to help simplify the setup process by giving SKULabs an initial stock count from your sales channel and prevent multiple listings for the same item from overwriting the previous information. This stock sync from the sales channel is not concurrent, and only happens once, upon initial import of a new listing. Once you go live with SKULabs, will we become your master of inventory. We will push the stock levels from SKULabs and overwrite what is on your sales channel. All inventory transactions should be done inside of the app vs sales channel side once stock sync has been enabled on your account.

Out of the box, SKULabs pushes the Free stock levels over to your sales channel(s). Your Free counts are what you have On-Hand, minus any open orders holding reserves on those particular items. This setting works well for most accounts, but of course you can have much more granular control of how this works by utilizing our stock rules to tailor advertised stock to your individual needs. We would be happy to give recommendations upon our your initial onboarding with SKULabs.

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Step 4: Shipping and Carrier Integration

Connect your Shipping Carriers

Integrate your supported shipping carriers (like USPS, UPS, FedEx) into SKULabs by following the in-app wizard. This allows you to compare rates, print shipping labels, and track shipments all from one place.

SKULabs offers discounts but you do not have to use the accounts provided. You are free to connect your own accounts if you already have negotiated rates.

USPS:

SKULabs is an official USPS Connect ecommerce partner. We can meet or beat your existing USPS rates with significant CPP and cubic discounts as an industry standard. You can optionally bring your own rates if you already have a USPS contract, just contact us to get started.

FedEx:

SKULabs offers discount rates through the FedEx Advantage program in partnership with both EasyPost and Shippo or using Shippo’s shared account which offers it’s own discounts. It’s just as easy to connect your own FedEx account to keep your volume + existing rates without bothering with our available discount programs.

DHL:

SKULabs offers discount rates using EasyPost’s or Shippo’s shared account. It’s just as easy to connect your own DHL account to keep your volume + existing rates without bothering with our available discount programs.

Can I use my own accounts?

Yes! It’s easiest to connect your own accounts into SKULabs and it’s what we prefer. Keep your volume! We’re not a shipping aggregator who requires you to offload your shipping volume to SKULabs to benefit from our software.

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Step 5: Printer Setup

Connect your printer to your workstation with PrintNode

The next step in your onboarding journey is to set up your printer to one of your workstations. This will enable all devices connected to your SKULabs account access to the printers. SKULabs connects via PrintNode and there are two versions available. One for Windows, and one for Mac. Make sure your are downloading the PrintNode app directly from our Printing and Scales article as these versions of PrintNode are tailored for SKULabs only. If you have previously used PrintNode or any other printer connectivity applications, it is best to uninstall these first before installing the SKULabs version of PrintNode. Once installed, you will see the app running on the host computer in the task bar. You will see a little orange, white and green icon.

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Double click the icon to open it and sign in using the Login credentials located in SKULabs app [Settings tab > Printing tab]. Find the user name and password here and use these to log into the PrintNode app.

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Next make sure you see your printers listed, then configure your page width and height to your desired settings. Ensure the host computers internal print settings are a match to avoid discrepancies. Need help troubleshooting? Here is our guide on common printer setup questions.

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Step 6: Familiarize Yourself with the Interface

Getting to know the Tabs

The SKULabs Orders tab gives you an overview of orders needing processing and what stage of processing they are currently in (Internal Order Status). Familiarize yourself with the interface and learn how to navigate through different sections like orders, items, listings and reports.

In the Inventory Tab, you will see three different tabs on the dashboard in regards to the products you sell, Basic, Advanced, and Listings.

Basic Tab: This tab is your item catalog inside of SKULabs, this represents all of the physical items you carry and various customizable information about each of these items. Refer to your columns tab and your filters tab to select the preferred information visible on this page. Additionally these columns can be drag and dropped to customize your views to your preference. This is the quick lightweight view of inventory which can be speedier than the Advanced depending on the size of your catalog.

Advanced Tab: This is an additional tab that displays your catalog as well, but has much more filtering, actions and reports located within. Most customers use this tab for their in-depth filtering and use the basic tab if they are just looking for something simple. These two tabs keep you from having to constantly adjust pre-set filters when looking for an item by giving you an additional tab for browsing.

Listings Tab: Not to confuse this tab with your items. This is a tab that represents the listings that SKULabs “sees” from across all of your sales channels. Multiple listings can be attached to a single inventory item within SKULabs.

New items will always be added to your sales channel first. Once new items have been added to the channel, simply run a listing sync from your dashboard. SKULabs will import the item, create the item in your catalog, automatically attach it to the listing on the sales channel, and will be ready to accept new orders!

Congratulations!

You have now completed the initial steps in your onboarding with SKULabs. You have connected your sales channels, imported your catalog, set up your shipping carriers, connected your printers, watched the webinar, and browsed through the app to familiarize yourself on how to navigate!

Embarking on your SKULabs journey is an exciting step towards more efficient and effective inventory management. Remember, the key to success with any new tool is patience and flexibility. A lot of softwares will accomplish the same thing yet the methods might not be exactly similar. Don’t hesitate to reach out to SKULabs support for any questions or guidance. Here’s to the beginning of a more organized, streamlined, and successful business operation with SKULabs!

Connect with SKULabs Today

Now is the perfect time to discuss how we can help you get prepared for taking your business to the next level!

If you have already signed up, and ready to schedule your first onboarding with SKULabs, feel free to follow this link here!

If you have not spoken with us yet, chat with one of our experts today. Schedule a meeting or give us a call at 1800-243-2986 to learn more.

Completing these steps are not a hard requirement to reach out and schedule. SKULabs was designed to be intuitive throughout the app and features the in-app wizard to guide you along the initial steps. Let us know what you think and we look forward to speaking with you soon!

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Below you’ll find the 5 most important inventory Management KPIs, a simple explanation of what they measure, how to calculate them, and how SKULabs can help your team improve these metrics. We know scaling your business can be an exciting journey, but it comes with its fair share of challenges. One key aspect that can make or break your scaling efforts is efficient inventory management.

We have ranked the 5 most important KPIs (Key Performance Indicators) to scaling your business through smart inventory management. Easily implement these metrics to have an immediate impact on your bottom line and help you take your business to the next level! 

KPI # 5: Fill Rate

Measures the percentage of fully filled orders

Calculation Formula:(Number of Orders Filled in Full / Total Number of Orders) * 100

A low fill rate can result in customer dissatisfaction and lost sales opportunities. When customers place orders, they expect timely and complete deliveries. A failure to meet these expectations can lead to order cancellations, potential refunds, and harm to your reputation. Ensuring a high fill rate is essential for retaining customers and maximizing revenue.

SKULabs order fulfillment management simplifies order processing, ensuring high fill rates by efficiently managing inventory availability and order prioritization.

KPI # 4: Carrying Cost of Inventory

Calculates the cost of holding inventory

Calculation Formula:(Average Inventory Value x Carrying Cost Percentage) / 100

High carrying costs can eat into your profits and tie up capital that could be used more effectively elsewhere in your business. These costs, which include storage fees, insurance, and depreciation, can become a significant financial burden. By reducing carrying costs, you can free up capital for investments in growth, innovation, or other strategic initiatives.

SKULabs inventory optimization feature identifies slow-moving items, allowing you to reduce storage costs. By optimizing inventory levels, SKULabs helps lower carrying costs.

KPI # 3: Inventory Accuracy

Measures the accuracy of recorded inventory count

Calculation Formula:(Actual Inventory Count / Recorded Inventory Count) * 100

Inaccurate inventory counts can have significant repercussions. If you think you have more inventory than you actually do, you may not reorder products when needed, leading to stockouts and lost sales. Conversely, overestimating inventory can result in overordering, tying up capital and potentially leading to increased storage costs. These inaccuracies can also affect your financial reporting and tax calculations, impacting your business’s overall financial health and compliance.

SKULabs inventory tracking with barcode scanning ensures precise recording of inventory movements. This feature reduces discrepancies between physical and recorded counts, improving inventory accuracy.

KPI # 2: Stockout Rate

Calculates the percentage of orders with stockouts

Calculation Formula:(Number of Stockouts / Total Number of Orders) * 100

Avoiding stock outs is crucial to maintain customer satisfaction and revenue. It’s especially important for businesses with high demand variability. Stockouts can have a direct impact on your bottom line. When customers can’t find the products they need, they may turn to competitors, resulting in lost sales and potential long-term customer loss. Stockouts can also disrupt your supply chain and lead to expedited shipping costs to fulfill orders, further eroding profitability. Additionally, frequent stockouts can damage your brand’s reputation and customer trust, which is often challenging to rebuild.

SKULabs can help reduce stockouts by sending automated low-stock alerts. These alerts prompt you to replenish inventory before it runs out, ensuring a higher stockout rate.

KPI # 1: Inventory Turnover Rate

Measures how often inventory is sold and replaced

This is often considered the most critical KPI as it directly reflects how efficiently you are using your inventory to generate sales and manage working capital. The inventory turnover rate measures how efficiently you’re utilizing your inventory. 

Calculation Formula: COGS / Average Inventory Value 

A low inventory turnover rate means you’re tying up valuable capital in slow-moving inventory. This can lead to increased holding costs, including storage fees, insurance, and depreciation. Additionally, slow turnover can result in the risk of products becoming obsolete or unsellable, which can cause financial losses. On the other hand, a high turnover rate indicates that you’re selling inventory quickly, optimizing cash flow, and minimizing holding costs. It allows you to allocate resources to other areas of your business and prevents your capital from being tied up unnecessarily.SKULabs can help optimize your inventory turnover rate through demand forecasting. By analyzing historical sales data and demand patterns, SKULabs can recommend optimal reorder quantities, ensuring you maintain the right balance of stock.

Remember that the importance of these KPIs can change over time as your business evolves and faces different challenges. It’s crucial to regularly assess and adjust your focus based on your business’s current priorities and objectives. Additionally, the interplay between these KPIs should be considered when making inventory management decisions.

With the right inventory management strategies and tools in place, you can easily implement and improve your business processes! 

Connect with SKULabs Today

Now is the perfect time to discuss how we can help you get prepared for taking your business to the next level!

Chat with one of our experts today. Schedule a meeting or give us a call at 1800-243-2986 to learn more.

As the festive glitter of the holiday season fades, eCommerce businesses often encounter a notable slump in January. This post-holiday period can be challenging, with consumers typically reducing their spending after splurging in December. However, with astute planning and innovative strategies, this quieter month can be transformed into a period of growth and opportunity. Let’s explore some practical approaches to help your eCommerce venture navigate and thrive in the new year’s onset.

Understanding Post-Holiday Dynamics

January is a unique month for consumer behavior. After the holiday season’s spending spree, many customers tighten their belts, leading to reduced sales for eCommerce stores. Many companies will mistakenly mirror this sentiment by cutting budget and therefore seeing less frequent engagement with their customers. Although this might have been the norm in the past, this is definitely not the right approach! Consider this, you have just spent the top of your budget marketing your Black Friday/Cyber Monday and Christmas campaigns generating a huge influx of new customers, only to let them go in January? This is the time to keep that momentum going to retain and turn them in to loyal repeat customers!

Additionally, it is crucial for businesses to conduct a thorough market analysis, understanding the current economic climate and consumer trends. This understanding helps in tailoring strategies that align with customer needs and market demands. Let’s explore some simple strategies to use in the upcoming season.

Engaging Customer Loyalty Programs

Loyalty programs are invaluable for retaining customers. In January, when new acquisitions may be lower, focus on your existing customer base. Enhance your loyalty programs by offering special rewards or points for purchases made in the new year. Consider exclusive deals or early access to new products for loyal customers, fostering a sense of belonging and appreciation.

New Year Promotions and Campaigns

Launch creative promotional campaigns themed around the new year. This could include special discounts, limited-time offers, or exclusive bundles. Additionally, consider cross-promotion opportunities with complementary brands. This not only broadens your reach but also provides added value to your customers.

Digital Marketing Focus

Digital marketing is your powerhouse in slower months. Use email campaigns to reach out to your customer base with personalized offers. Leverage social media to engage with your audience, perhaps by running contests or sharing user-generated content. Also, invest in targeted ads that reach potential customers based on their recent search history or interests.

Inventory Management and Clearance Sales

The start of the year is an ideal time for inventory assessment. Analyze which products sold well during the holidays and which didn’t. For items that are slow-moving, consider organizing clearance sales. This not only helps in clearing old stock but also attracts price-sensitive customers. Clearance sales can be marketed as “New Year Clear-Outs” to add a seasonal touch.

Leveraging Data Analytics

Data is king in the eCommerce world. Utilize analytics to understand customer behavior, track website traffic, and monitor sales patterns. This data will provide insights into what works and what doesn’t, allowing you to adjust your strategies accordingly. Pay attention to metrics like conversion rates, average order value, and cart abandonment rates.

Enhancing User Experience

A smooth and enjoyable shopping experience is vital for retaining customers. Ensure that your website is user-friendly, with easy navigation and quick load times. As more consumers shop on mobile devices, ensure that your website is mobile-responsive. Also, consider implementing features like live chat support to assist customers in real-time.

Sustainability and Social Responsibility

Increasingly, consumers are gravitating towards brands that demonstrate a commitment to sustainability and social responsibility. Showcase any eco-friendly practices or products your business has adopted. Engage in community projects or collaborations that underscore your brand’s values, resonating with a growing base of conscious consumers.

Taking Advantage of the Momentum

January offers eCommerce businesses a chance to kick off the year with momentum. To achieve this, it’s vital to grasp post-holiday consumer behavior and effectively manage inventory. Engaging customers with loyalty programs is not only an effective, but a tried and tested strategy. Bolster this success by launching new year campaigns, and by prioritizing an enhanced user experience. Additionally, placing an emphasis on sustainability not only aligns with current trends but also demonstrates responsibility. Collectively, these approaches transform challenges into stepping stones for growth and innovation.

As we embrace the new year, it’s time to put these strategies into action. Experiment with these approaches, adapt them to your business model, and watch your eCommerce venture thrive. Let’s make this year a remarkable one for eCommerce!

Connect with SKULabs Today

Now is the perfect time to discuss how we can help you get prepared for the upcoming season!

Chat with one of our experts today. Schedule a meeting or give us a call at 1800-243-2986 to learn more.