VANCOUVER, Canada — As the logistics industry prepares for the cyber sales boom this week, many smaller operators face additional pressure. Warehouse software is helping smaller USA warehouses overcome storage constraints. The Wall Street Journal claims that smaller warehouses are being squeezed by demand from larger retail businesses for additional inventory storage space.
Although the cyber sales online shopping frenzy brings increased demand, warehouse capacity concerns, and accelerated last-mile dispatch expectations, it is the most anticipated sales season of the year for logistics operators. CartonCloud, a provider of logistics cloud software, is assisting smaller warehouses in overcoming daily obstacles, increasing revenue, and competing with major industry players.
Shaun Hagen, COO/Head of North America at logistics software company CartonCloud, stated, “Global supply chain bottlenecks and disruptions experienced over the past two years have caused the industry to shift from a leaner, centralized inventory model to having more inventory located in multiple locations, to shorten supply chains and increase the speed of last-mile fulfillment.”
“This is putting pressure on smaller warehouses to compete by increasing demand for warehouse space from the larger players, particularly during times of peak demand like the Black Friday sales.”
Sixty percent of global customers anticipate same-day, next-day, or two-day delivery, according to a recent Shopify report titled “The Future of Commerce.” Given that online sales on Black Friday and Cyber Monday are anticipated to continue growing for an additional year, this pattern indicates that the sector will be prepared to meet the highest volume of the year and the quickest delivery times.
According to recent data from CBRE, an American commercial real estate services and investment firm, the nation’s warehouse vacancy rate has already reached 3.6%, a record low. CartonCloud CEO Vincent Fletcher stated, “We expected to see these stock backlogs prior to the sales season as warehouse customers prepare for the sales boom.”
“However, there are a few things that smaller businesses can do to scale up operations and provide more value to their customers throughout the cyber sales boom.
“We are aware that the industry is heavily dependent on the survival of small and medium-sized businesses; consequently, it is essential for these businesses to have access to software designed specifically for them in order to assist them in optimizing their operations, reducing costs and time, and expanding.
The global pandemic’s effects really changed the game. It demonstrated the significance of data transparency and forecasting, particularly in terms of the services that third-party logistics (3PL) providers can provide to their clients to assist them in navigating the logistics industry’s complexities. This is essential for smaller businesses.
CartonCloud is a software as a service (SaaS) provider of warehouse and transport management software. Its goal is to help smaller logistics companies compete with larger ones by streamlining workflows, automating data, facilitating software integrations, and enabling them to establish additional revenue streams.
CartonCloud was chosen by TNS Logistics, an e-commerce 3PL, to simplify their warehouse management procedures, diversify their revenue, expand their customer base, and reduce administrative burdens through software integrations.
TNS has completely revamped its warehousing strategy ever since forming a partnership with CartonCloud, incorporating brand-new software features with each new client they acquire. Matthew Norton, the commercial manager, knew that choosing cloud-based software that was made and designed for small and medium-sized businesses like TNS was a no-brainer because it made it easy for them to meet the various requirements of new customers with one system.
“The fact that the team had come from a warehouse background was one of the things I really liked about CartonCloud.” Norton stated, “They had observed the day-to-day operational difficulties and created a product that was actually able to help us.”
The software company anticipates significant increases in warehouse order fulfillment and transport consignments in the coming weeks due to its over 23,000 daily active users.
Fletcher stated, “We work closely with our clients and with other members of the industry.”
“It is what distinguishes us. Even though digital trends are changing, we provide software that is specifically tailored to the requirements of logistics professionals.
“In response to supply chain bottlenecks, shipping delays, and stock shortages in previous years, we’ve seen a significant shift in the approach to the sales season over the past few years.
“To try to extend the activity and give distribution channels a better chance of keeping up, brands these days begin their sales before Thanksgiving weekend. More modest distribution center and cargo organizations can utilize their product frameworks to assist them with arranging out stock levels with clients and give total request satisfaction straightforwardness.”
Hagen explained that warehouses looking to make more use of their space might also use storefronts as stock depots alongside multiple warehouses to cut down on last-mile distance or offer cross-docking for faster handling and dispatch.
“They can integrate their WMS directly with customer online storefronts using cloud-based solutions, allowing for seamless and instantaneous data flow for quicker and more transparent order fulfillment. Cross-docking services may also be offered by some warehouses to eliminate the need for warehouse storage. These services involve moving inbound orders to staging, where they can be matched to outgoing orders on different transport legs.
“It’s about equipping our customers to be able to offer more with fewer resources, less time, and lower overhead costs. Customers of CartonCloud can make use of these features to better serve their clients and get ready for the sales season.
For some direct-to-shopper marks, the digital deals season represents most of their yearly deals. Cyber sales between Black Friday and Cyber Monday alone make up 20% of all online sales in the United States between November and December 30.
Because of the high stakes, companies partnering with a third-party logistics provider to outsource their logistics will look for a 3PL that can provide online ordering, order tracking, and quick fulfillment.
Online ordering must be integrated directly into their WMS from their customer’s Shopify or other online stores, allowing for accurate order placement and instant updates without middleware. With new online stores opening each day, the majority of which are powered by Shopify or Woocommerce, there are approximately 12-24 million e-commerce websites worldwide.
Additionally, their warehouse system must be simple to use and teach new employees. Seasonal workers can easily pick up processes during peak demand seasons in this manner. The warehouse will be able to respond quickly to new business because they will be able to begin fulfilling orders faster and with better accuracy. A system that is simple to use can also make employees happier and help keep warehouse workers in their jobs.
Lastly, order tracking and system integrations with transport partners are necessary to guarantee a smooth delivery and dispatch process. With automated real-time data tracking, cloud-based 3PL software like CartonCloud also gives 3PLs and their customers more control.
