What is Virtual Warehousing?

In the world of logistics tech, it can often be difficult to decipher which features are game-changing and which are marketing ploys. Of course, each business has unique needs and needs to make this judgment depending on those needs, but in this article, we hope to make the argument for picking software that allows for virtual warehousing.  

Virtual warehousing is a feature of some ERP and WMS software applications and is emerging as a necessity for many e-commerce businesses.  

What is virtual warehousing?  

Simply put, virtual warehousing refers to real-time visibility for inventory and the ability to strategically place that inventory in different physical locations (distribution centers) and digital locations (shopping marketplaces or channels). Most warehouse managers and e-commerce professionals dedicate inventory items to specific eCommerce marketplaces, but there are an unnerving number of Excel sheets that are often involved in this process. Virtual warehousing allows for easy inventory management via software you’re already using to run operations. This is especially useful in instances where businesses sell their products across multiple platforms, such as Shopify, Amazon, Etsy, and more.  

Here’s an example of how virtual warehousing could be helpful. Say a business gets a shipment of 100 books that they know sell well on Amazon. The warehouse manager can use virtual warehousing to ‘place’ 75 of the books in a digital location to be sold on Amazon only. As the 75 books are sold, a low-stock notice will be given before the books are completely sold out. This allows the manager to restock the books before they’re totally out of stock. In the meantime, the other 25 books from the original 100 could be allocated to just one marketplace or split between multiple. This allows you to offer the best service to your customers and maintain better control over your inventory.  

Why should businesses use virtual warehousing?  

There are several benefits to virtual warehousing. Overall, a business has better control over their products and how orders are fulfilled when using software that includes a virtual warehousing feature.  

When set up correctly, virtual warehousing enables you to confidently reserve, store, and distribute inventory for multiple channels simultaneously, improving efficiency, saving time, and boosting, save time, and increasing profit margins. Additionally, insights provided by each ‘warehouse’ allow for simplified analysis of your business data. This allows you to identify cost-effective ways to meet customer demands and optimize your operations.

How does virtual warehousing work on ShipCaddie TWMS?

The ShipCaddie TWMS software has robust virtual warehousing capabilities in a single, intuitive platform. Check out the tutorial here to see exactly how virtual warehousing works within the platform. If you’d like to learn more, request a free demo today.

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