Key Activities
- Inventory management and replenishment planning
- Order management (OMS)
- Warehouse operations: receive, stock, pick, pack, ship
- Return processing and reverse logistics
- Carrier selection and contract negotiation
- 3PL vs. insource decision-making
- Customer delivery experience and WISMO management
- Packaging strategy and dimensional weight optimization
Negotiate carrier contracts with a professional. Most merchants leave significant rate savings on the table. Your volume is leverage — use it. And revisit contracts annually, not when renewal forces you to.
KPIs
- Cost per unit (pick / pack / ship)
- Packout time (units per labor hour)
- Average shipment transit time
- Return rate by category
- Time to process returns
- Perfect order rate (on-time, complete, undamaged)
- Order fill rate (% of items shipped complete)
- Inventory accuracy rate (physical vs. system)
- Inventory turnover rate by category
- Carrier on-time performance by zone
- Damage in transit rate
- WISMO contact rate (% of orders generating a 'where is my order' contact)
- Returns processing cost per unit
Use Case: 3PL to Insource
How Insourcing Fulfillment Cut Costs 70% and Delivery Time 86%
A 3PL partner increased rates by 40% and delivery times grew exponentially as volume scaled. The warehouse couldn't handle growth and order backlogs mounted. The team had to shut down all promotions immediately after Cyber Monday just to catch up with orders already in queue.
The decision was made to insource fulfillment operations entirely. The transition was complex, but the results were transformational.
70%
Reduction infulfillment cost
86%
Reduction indelivery time
Current Best-in-Class Tools
OMS (Enterprise)
Manhattan Associates
Best-in-class OMS and WMS suite for complex multi-node fulfillment networks and omnichannel operations.
OMS (Modern)
Fluent Commerce
Cloud-native distributed OMS purpose-built for omnichannel, ship-from-store, and BOPIS scenarios.
Fulfillment (DTC)
ShipBob
Tech-enabled 3PL with distributed warehouse network, 2-day delivery positioning, and real-time inventory visibility.
Shipping API
EasyPost
Multi-carrier shipping API with rate shopping, label generation, and tracking unified in one integration.
Shipping Management
ShipStation
Multi-channel order import with carrier rate shopping, batch label printing, and automation rules.
Returns (Best-in-Class)
Loop Returns
Self-service returns portal with exchange-first logic. Retains revenue on return events instead of just processing refunds.
Returns
Happy Returns
Box-free in-person drop-off return network with 10,000+ locations. Reduces return shipping cost significantly.
Post-Purchase Experience
Narvar
Order tracking, proactive delivery notifications, and returns experience management. Reduces WISMO contacts significantly.