Congratulations on taking the first step towards starting your own fulfillment center! Buying an empty warehouse is a big accomplishment, but it's just the beginning. Now you need to turn that empty space into a well-oiled machine that can process orders quickly and efficiently.

Planning your layout

The layout of your warehouse is one of the most important factors in determining its efficiency. A well-planned layout will help you to process orders more quickly and efficiently, which will save you time and money.

There are a few things to keep in mind when planning your layout: 

Flow of traffic: The flow of traffic in your warehouse should be efficient. Employees should be able to move around the warehouse easily and without having to walk long distances.

Product organization: Your products should be organized in a way that makes it easy to find them. This will help you to process orders more quickly.

Equipment: The type of equipment you use will also affect the layout of your warehouse. For example, if you use forklifts, you'll need to have wider aisles.

Space: You need to make sure that you have enough space for all of your products, equipment, and employees.

There are a few different types of warehouse layouts that you can use. The most common layouts are: 

L-shaped layout: This layout is the simplest and most common type of warehouse layout. It's made up of a long, narrow aisle with the receiving and shipping areas at opposite ends.

U-shaped layout: This layout is similar to the L-shaped layout, but it has the receiving and shipping areas at the same end of the warehouse. This layout can be more efficient for warehouses that handle a lot of returns.

A-shaped layout: This layout is similar to the U-shaped layout, but it has the receiving and shipping areas at the center of the warehouse. This layout can be more efficient for warehouses that handle a lot of orders. 

In addition to these traditional layouts, there are several newer, more innovative warehouse layouts that are being used by larger companies like Amazon and Walmart. These layouts are designed to maximize efficiency and productivity.

One example of a newer warehouse layout is the cross-docking layout. In a cross-docking layout, products are received and immediately shipped out without being stored in the warehouse. This layout can be very efficient for warehouses that handle a lot of high-volume, low-margin products.

Another example of a newer warehouse layout is the mini-load layout. In a mini-load layout, products are stored in small, movable units called mini-loads. This layout can be very efficient for warehouses that handle a lot of small, high-value products.

The best warehouse layout for your business will depend on the size of your warehouse, the types of products you fulfill, and your specific needs. By carefully planning your layout, you can create a warehouse that is efficient and productive.

Here are some additional tips for planning your layout:

Consider your future growth: When planning your layout, you need to consider your future growth. You don't want to have to redesign your warehouse in a few years because you've outgrown it.

Get input from your employees: Your employees are the ones who will be using the warehouse, so it's important to get their input on the layout. They can help you to identify potential problems and suggest improvements.

Use a warehouse layout software: There are a number of warehouse layout software programs available that can help you to plan your layout. These programs can help you to visualize your layout and identify potential problems.

Planning your warehouse layout is an important step in starting an ecommerce fulfillment center. By carefully considering your needs and using the right tools, you can create a layout that is efficient and productive.

Installing the necessary equipment

Once you have a layout, you need to install the necessary equipment. This includes things like conveyor belts, forklifts, and pallet jacks. You'll also need to invest in software that can help you manage your inventory and track your orders.

The type of equipment you need will depend on the size of your warehouse, the types of products you sell, and your specific needs. For example, if you're selling heavy products, you'll need forklifts. If you're selling small products, you might be able to get away with using pallet jacks.

Here are some examples of the types of equipment that large companies like Amazon, Walmart, and Wayfair use:

Conveyor belts: Conveyor belts are used to move products around the warehouse. They can be used to move products from the receiving area to the picking area, from the picking area to the packing area, and from the packing area to the shipping area.

Forklifts: Forklifts are used to lift and move heavy products. They are essential for warehouses that handle a lot of bulky or heavy products.

Pallet jacks: Pallet jacks are used to move pallets of products around the warehouse. They are a smaller and more maneuverable alternative to forklifts.

Warehouse management software: Warehouse management software is used to track inventory, manage orders, and optimize the flow of products through the warehouse.

The number of each type of equipment you need will depend on the size of your warehouse and the volume of orders you process. For example, if you have a small warehouse and you only process a few orders per day, you might only need one or two forklifts. However, if you have a large warehouse and you process hundreds of orders per day, you might need dozens of forklifts.

You can purchase warehouse equipment from a variety of vendors. Some popular vendors include:

Crown Equipment: Crown Equipment is a leading manufacturer of forklifts and other warehouse equipment.

Toyota Material Handling: Toyota Material Handling is a manufacturer of forklifts and other warehouse equipment.

When purchasing warehouse equipment, it is important to consider the following factors:

The size of your warehouse: You need to make sure that the equipment you purchase is the right size for your warehouse.

The types of products you sell: You need to make sure that the equipment you purchase can handle the weight and size of the products you sell.

Your budget: Warehouse equipment can be expensive, so you need to make sure that you purchase the equipment that you need within your budget.

Installing the necessary equipment is an important step in starting an ecommerce fulfillment center. By carefully considering your needs and purchasing the right equipment, you can create a warehouse that is efficient and productive.

Inventory storage solutions

In addition to the equipment you need to move products around your warehouse, you also need to consider how you will store your inventory. There are several different inventory storage solutions available, including:

Plastic bins, containers and totes: Plastic bins, containers and totes for the warehouse are are a versatile, long-lasting and affordable option for storing inventory. They come in a variety of sizes and colors, and they can be stacked or nested to save space. Many containers have optional lids and are designed to be last for many years, removing the need to continually replace wornout cardboard.

Pick rack systems: Pick rack systems are a good option for warehouses that handle a high volume of orders. They allow you to store inventory in a way that makes it easy to pick and pack orders quickly and efficiently.

Mobile carts: Mobile carts are a good option for warehouses that need to move inventory around frequently. They are easy to maneuver, and they can be used to transport large or heavy items.

The best inventory storage containers and solutions for your business will depend on your specific needs and requirements. However, all of the solutions listed above can help you to store your inventory in a safe and organized manner.

Additional considerations:

The size and type of your products: The size and type of your products will determine the type of inventory storage solution that is best for you. For example, if you sell small, lightweight items, you might use plastic bins or totes. If you sell large, heavy items, you might use containers or pick rack systems.

The volume of your inventory: The volume of your inventory will also determine the type of inventory storage solution that is best for you. If you have a large volume of inventory, you will need a solution that can store a lot of products. If you have a small volume of inventory, you might be able to get away with a simpler solution.

Your budget: The cost of inventory storage solutions can vary depending on the type of solution you choose. You will need to factor in the cost of the solution when making your decision.

By carefully considering your needs and requirements, you can choose the inventory storage solution that is best for your business.

Hiring a team

No fulfillment center can run without a team of dedicated employees. You'll need to hire people to work in receiving, picking and packing, shipping, and customer service.

When hiring your team, you'll need to consider the following factors:

The size of your warehouse: You need to make sure that you have enough employees to handle the volume of orders you process.

The types of products you sell: You need to make sure that your employees are familiar with the products you sell.

Your budget: Hiring employees can be expensive, so you need to make sure that you can afford to hire the number of employees you need.

There are a few different options when it comes to hiring a team:

Full-time employees: Full-time employees are the most common type of employee. They work a set schedule and receive benefits such as health insurance and paid time off.

Part-time employees: Part-time employees work fewer hours than full-time employees. They may not receive benefits, but they can be a more cost-effective option for businesses with fluctuating workloads.

Contractors: Contractors are self-employed workers who are hired to complete a specific task or project. They are not employees of the company, so they do not receive benefits. 

The cost of hiring a team will depend on the type of employees you hire, the number of employees you hire, and the location of your warehouse. For example, full-time employees in California will typically cost more than full-time employees in North Carolina.

You can hire a team of employees in a few different ways:

Post job openings on job boards: This is a great way to reach a large number of potential candidates.

Network with friends, family, and colleagues: This is a great way to find qualified candidates who may not be actively looking for a job.

Use an outsourced hiring firm or a headhunter: These firms can help you find qualified candidates and manage the hiring process for you. One of the better known firms for headhunting is Robert Half.

Once you've hired a team, you need to decide who will manage them. This could be you, a manager you hire, or a team of managers. The best way to manage your team will depend on the size and complexity of your business.

Hiring a team is an important step in starting an ecommerce fulfillment center. By carefully considering your needs and doing your research, you can find the right team for your business.

Training your team

Once you've hired a team, you need to train them on how to do their jobs effectively. This includes training them on the warehouse layout, the equipment, the software, and the company's policies and procedures.

Training your team is an important investment in your business. It can help to improve efficiency, productivity, and customer satisfaction.

There are a few different ways to train your team:

On-the-job training: This is the most common type of training. It involves having new employees shadow experienced employees and learn by doing.

Classroom training: This type of training involves having new employees attend classes that teach them the basics of their job.

E-learning: This type of training involves having new employees watch online videos or tutorials that teach them the basics of their job.

The time and cost of training your team will depend on the size of your team, the complexity of your business, and the type of training you choose.

It is important to provide your team with ongoing training and development opportunities. This will help them to stay up-to-date on the latest trends and best practices, and it will also help them to feel valued and appreciated.

Don’t Forget Safety training

Safety training is essential for any warehouse environment. It is important to train your team on the proper safety procedures for using equipment, lifting heavy objects, and working in a warehouse environment.

Training your team is an important investment in your business. By providing your team with the right training, you can help them to be more efficient, productive, and customer-focused.

Start processing orders

Once your team is trained and your warehouse is ready, you can start processing orders.

It is important to set clear SLAs (service level agreements) with your customers. SLAs define the level of service that you will provide to your customers. For example, you might promise to ship all orders within 24 hours of receiving them.

You also need to consider the demand for your products and your maximum output. If you are expecting a lot of orders, you will need to make sure that you have the capacity to process them all. You may need to hire more employees or invest in more equipment.

Cutoff times

You also need to set cutoff times for orders. This is the time by which customers need to place their orders in order to receive them on time. For example, you might have a cutoff time of 11:59 PM for orders that need to be shipped the next day. A lot of this depends on the times that your shipping carrier partners do their final pickups. You should work with FedEx and UPS to understand what their cutoff times are for packages to ship out that day and base your cutoff times around theirs. 

Managing demand

It is important to manage demand effectively. If you are not able to keep up with demand, you will risk customer dissatisfaction. There are a few things you can do to manage demand:

Starting processing orders is an important step in starting an ecommerce fulfillment center. By carefully considering your SLAs, demand, and maximum output, you can ensure that you are able to meet the needs of your customers.

Challenges you may face

There are a number of challenges that you may face when starting an ecommerce fulfillment center. Some of these challenges include:

Warehouse management: Managing a warehouse can be a complex task. You need to make sure that your warehouse is organized, that your inventory is accurate, and that your employees are efficient.

Order fulfillment: Order fulfillment is the process of receiving, picking, packing, and shipping orders. This process can be challenging, especially if you are dealing with a high volume of orders.

Customer service: Providing excellent customer service is essential for any ecommerce business. This is especially true for fulfillment centers, as customers will often contact you if they have questions about their orders.

Compliance: There are a number of compliance regulations that you need to be aware of when running a fulfillment center. These regulations can vary depending on the location of your warehouse.

Technology: Technology can be a great asset for fulfillment centers. However, it can also be a challenge to keep up with the latest technology. 

Starting an ecommerce fulfillment center can be a challenging but rewarding experience. By being aware of the potential challenges and taking steps to mitigate them, you can increase your chances of success.