What is Load Balancing?
Load Balancing is the service that allows ShipHero to transfer inventory between warehouses as needed based on the customers' sales velocity. As orders come in, they are routed to the best warehouse based on location and product availability.
The load balancing process can take up to 3 weeks between origin and destination warehouses.
Why is Load Balancing suitable for your brand?
Load Balancing can be beneficial for some brands due to the following aspects:
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Reduced transit time to end customers
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Decreased supply chain volatility (think not all eggs in one basket)
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Reduced carbon footprint (for the environmentally conscious brand)
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A more enterprise-level representation of customers & retailers
Do ShipHero Loads Balance every client and every product in the network?
Not necessarily. While ShipHero's proprietary algorithm will look for all possible opportunities to load balance, that does not mean all will.
Customers cannot request when and where ShipHero Load balances inventory - we do the work for you based on capacity, availability, and sales velocity.
How does it work?
Typically we have trucks running every week between facilities, but ShipHero can adjust this frequency at any given time.
Load Balancing is not guaranteed at all times for a brand. It is based on algorithmic recommendations from the software. This algorithm takes into account the following:
- Sales Velocity
- # of SKUs required to balance
- Type of products
- Seasonality
- Availability of freight
- Product dimensions & weight
- Expedited order volume
How can I determine if my product is being load-balanced?
- While products are being picked, packed, and moved between our various warehouses, you will see this stock as "in transit" status, excluding those in transit units from what is available to be sold. You can check the in-transit numbers on the product and click on the product page>shipping plan tab. (image below)
- We deliver the packages to the carriers as fast as possible to reach the customer's destinations on time.
- The status "In transit" is underlined with blue when Load balanced.
- When products are being Loaded Balanced, we still bill for storage.
- Products will be highlighted and clickable only when being Load balanced.
How are taxes and Insurance calculated while LB?
Per our Terms of Service, "ShipHero does not insure against loss or damage to your goods, products, or inventory stored or warehoused by ShipHero. You are responsible for obtaining insurance coverage for your goods, products, or inventory and the costs associated with such Insurance."
For taxes, "ShipHero's fulfillment services fees exclude applicable value-added, sales/use or inventory, customs/duties, and service taxes. ShipHero's fulfillment services rely on (and may require) load balancing of your goods, products, or inventory to ShipHero warehouses located in various tax jurisdictions."
Taxes and Insurance are always the responsibility of ShipHero's clients. We suggest you contact your tax advisors/experts to ensure they have all the proper Insurance and are accounting for all the sales tax.
How do we charge for Load Balancing orders?
Click HERE
