Top Benefits for Using a Digital Warehouse for 3PL Fulfillment

Updated: Nov 26


digital warehousing services for 3PL fulfillment center

Do you remember the last time you went to a post office?


We all know the future is digital. But to what extent can digitization happen?


We have replaced posts with emails, audio cassettes with mp3, analog with digital. Are we about to change conventional warehousing to digital?


As everything is getting faster, conventional warehousing is making things difficult. Warehousing is an effective way for D2B businesses to gather inventory at one large place and let the 3PL company handle the order fulfillment. However, it is slow and inefficient.


On the other hand, digital warehousing uplifts the e-commerce supply chain. Digital warehousing is the apt usage of artificial intelligence and rapidly-evolving technologies. E-commerce fulfillment gets smoother with digitization. It is fast and effective.


What is a Digital Warehouse?

It is an automated and paperless warehousing system seeking help from modern technology and AI. It is arduous to keep track of SKUs, manage inventory, and order fulfillment In a conventional warehouse. Thus, it results in order delays, lost inventory, and losing customers.


Digital warehousing is an intelligent solution to all problems. It starts from drastically improving real-time data collection and inventory management. The popularity of digital warehouses is gaining momentum and the next 7-10 years will completely change this course of eCommerce fulfillment.


How is a Digital Warehouse Different from a Traditional Warehouse?


Digital is the solution for warehouse mobility. We are aware that huge warehouses make mobility difficult for workers. With complete digitization, workers will be able to get access to data not only within the premises of the warehouse but also outside it.


Most futurists are optimistic about automated vehicles to substitute traditional forklifts. There are two types of visible options; drones and Automated Guided Vehicles (AGVs) to help with order management.


One of the most obvious differences between digital and traditional warehousing would be robotics! We already know that robots are more disciplined and more efficient.


Digital warehouses will have improved data analysis and machine learning. With more real-time data in hand, managers would get to anticipate trends, manage inventory effectively, and allocate budget.


Benefits of a Digital Warehouse


There are many factors where digital has an edge over traditional warehousing. Let's see some of the main factors:


No more lost inventory


Lost inventory has been a rising concern for third party logistics (3PL) companies. It has been raised to new heights post-COVID-19. Orders shipping to warehouses were lost either on their way or in the warehouse. In this chaos, third-party logistic companies found the leakage.


Digitization of warehouses reduces the lost order complaints by managing the supply chain effectively.


Smart inventory management


When you cannot track your orders, you cannot calculate the upcoming orders. This vicious cycle is harmful to businesses. Digital warehouses have data records to inform vendors accurately regarding order fulfillment.


It helps the D2C or on-demand logistics by preventing excess inventory. It will also reduce the demand for emergency deliveries by calculative measurements.


No more manual warehouse service


Warehouses need effective management. Digital warehouses have a very well-developed technology to track orders, manage bills, and develop efficient production plans.


3PLs who choose digitization of warehouses will yield better results.


How Do I Implement Digitization into a Full-functional Traditional Warehouse?


Set goals


Before 3PL companies decide to implement digitization blindly, it is important to review the overall condition of the warehouse to determine the weak points. Once you know where improvement is required, the work gets easier.


Go paperless


There are many technologies available to digitize paperwork. Third-party logistic companies focus on adapting paperless technology. Go green, go digital.


Track real-time data


Knowing what is happening at the moment in the warehouse was a dream for the warehouse service managers. Real-time data is necessary if businesses want to flourish. With the ever-increasing same-day delivery ideas, people want instant gratification. Competitive businesses are ready for this challenge and if you do not adapt to this idea, your business will soon become a course of history.


Now, companies can track and manage inventory in real-time. To digitize the warehouse, you would first have to build the REAL-TIME mindset. It is a total game-changer!


Use an advanced WMS


From ERP TO WMS, management systems are ruling the world. A WMS or Warehouse management system is a software app to manage, optimize, and support warehouse functionality.


A WMS can work on:

  • Tracking and allocating inventory within the distribution center.

  • Managing finance and logistics aptly.

  • Planning and scheduling product moves.

  • Managing orders and planning of loads.

  • Risk management and customer handling.


Most warehouses prefer a WMS for inventory handling. This way you'll need labor to pack and ship only.


Digital warehousing can reduce the workload on humans dramatically! If you want your business to thrive in this rapidly changing world - go digital. The benefits are too good to miss and the loss is minimal. The supply-chain industry rarely changes, from shipping to logistics, everything is manual. If there is the hope of change, we must adapt to it sooner.


Looking for a digital warehouse in Los Angeles?


You have a lot of options to choose from when looking to digitize your warehouse or outsource your order fulfillment to a 3PL. ShipBots incorporates technologically-advanced solutions to benefit your business.


At ShipBots, we care about your branding and customer experience, along with inventory, order, shipping, and warehouse management. ShipBots is a third party logistics 3PL fulfillment center that will store, ship, pick and pack your products on your behalf. Get in touch with us to learn more about how we can streamline your e-commerce fulfillment.