East Perry // Operations Proposal

East Perry //
Ops & Scaling IDEAS

Prepared for: Janine (Owner, East Perry)
Prepared by: Heath Armstrong

Demo Update & Confirmations I have booked a full demo call with Mark early next week to review the actual software interface. During our initial conversation, we casually discussed all of the friction points outlined below, and ShipHero appears fully equipped to handle and solve every single one of them. However, I have added highlighted notes throughout this proposal to confirm some slight variations of exactly how the software and support teams works to handle all the issues.

1. The Core Architectural Shift

Janine, to scale East Perry effectively and make the business a highly desirable, data-proven asset for securing future funding, I am proposing a fundamental shift in your operational architecture.

Currently, Shopify acts as your fulfillment master, and your team is forced to manually sync and bridge gaps using Sumtracker and Google Sheets. My plan is to reverse this.

We will install an enterprise warehouse management system (ShipHero) as your central Command Center. It will act as the single source of truth for all inventory, purchasing, and fulfillment, automatically pushing accurate data out to Shopify and eliminating the manual workarounds.

ShipHero Demo Note // Great Fit I recently ran through these requirements directly with Mark, a ShipHero Deployment Rep. He confirmed that their average client profile matches East Perry exactly (3-5 employees pushing a minimum of 1,500 shipments/month). Their technical understanding of your specific challenges gives me high confidence in this shift.

The ultimate goal: Maintain enough high-velocity inventory to completely eliminate customer wait times for non-custom items. By making this architectural shift to a central system, we will have the best shot at achieving the following:

Maximize Fulfillment Velocity & Efficiency: Dramatically reduce warehouse man-hours and increase daily shipping capacity by eliminating manual, one-by-one order processing in favor of automated batching. Sheepskins will still have to be manually picked for quality control, but you will be set up better to fulfill bulk like-orders all at once.
Zero Backorder Guesswork: Implement systemic FIFO logic to handle short-shipments without manual spreadsheet triage.
Automated Purchase Planning: Utilize software to calculate burn rates and generate suggested reorder dates for manual review for each SKU. This will serve as a centralized hub for managing all suppliers, inbound POs, and estimated arrival dates. (Note: I will be verifying the exact specificity of their data forecasting models during next week's demo.)
Massively Reduce Cancellations & Returns: Cancellations are primarily driven by customers frustrated with long wait times. By securing funding to maintain deeper inventory levels and using new systems to provide radical transparency on preorder delivery times, you will drastically reduce customer churn and protect bottom-line revenue.

2. The Foundation: 300+ SKU Migration

The bulk of the heavy lifting for this project will be the migration and restructuring of your inventory data. While a new system can bulk-import the raw data easily, the real work lies in organizing and mapping this data so the new "Command Center" functions perfectly.

Each of your SKU's (300+ based on the spreadsheet Kathy gave me access to) will need to be systematically reviewed and configured. It's possible to just start with the most important ones, but eventually it has to be done from everything old and new that you want to continue to use. This includes:

Making sure they are properly connected to Shopify.
If necessary, making sure they are tracking across any other marketplaces you are on correctly (Etsy, etc).
Verifying any master & alias SKU connections.
Inputting and verifying exact SKU details, barcodes, weights, dimensions, etc., for accurate shipping profiles.
Inputting exact supplier data, lead times, and unit costs to enable automated (but manually reviewed) Purchase Planning.

3. Identifying Your Current Bottlenecks

Your rapid growth has outpaced your current technology, leading to a fulfillment state that currently requires extensive manual cleanup. To protect your profit margins and warehouse team, I recommend we do our best to fix the following critical friction points on top of the new central inventory management system:

ShipHero Demo Note // Automating Shopify Tags All those new tracking and priority tags East Perry has been building in Shopify won't go to waste. ShipHero natively imports Shopify tags, allowing us to build direct warehouse automation rules triggered strictly by the tagging system your team already has in place!

Manual Priority Triage: Ian manually updates a Google spreadsheet daily to track shipping priorities. This leaves room for human error when deciding which orders to fulfill first during inventory shortages. As you noted, high-value items (like a $1,500 rug) need to be auto-prioritized over smaller items (like bottle warmers) to mitigate the impact of cancellations and refunding massive orders.
Disjointed Returns Processing: Handling physical returns and exchanges is likely a manual, multi-step process right now. Receiving an item, checking its quality, updating the inventory spread, and remembering to go into Shopify to issue the refund or exchange leaves too much room for human error and wasted time.
Inefficient Packing & Low Velocity: The fulfillment team is currently processing orders one at a time. Clicking through dozens of identical, single-item orders individually wastes critical man-hours and artificially caps your daily shipping velocity.
Shared Inventory Across Listings: Selling the exact same physical item (e.g., Sheepskin as both a Dog Toy and a Baby Toy) creates constant allocation and overselling challenges because Shopify and Sumtracker bundles do not communicate properly.
Manufacturer Short-Shipments: Vendors occasionally deliver fewer items than ordered. When this happens, your team is forced to make difficult, manual allocation decisions on who gets their product and who stays on backorder.
Pre-Sales & Scheduled Drops: Taking orders for future inventory clogs your current packing queue and confuses the daily fulfillment flow because your current systems don't seamlessly map incoming purchase orders to waiting customers.
Potential Shipping Margins (Bonus): While Shopify provides good baseline shipping rates, you may be missing out on dynamic, real-time rate shopping across multiple carriers to find the absolute cheapest label for every specific box weight and dimension.

4. System Architecture & Exact Solutions

By making this new software the central Command Center, we can work to reduce or eliminate your current bottlenecks via the following exact features.

Current Problem	The Solution
Manual Priority Sorting Spreadsheet triage for high-value orders and low stock.	VIP & Value-Based Priority Rules: The system's Automation Rules can be configured to automatically flag high-value orders (e.g., orders over a certain dollar amount) or customer service replacements. The software automatically dictates priority, bumping these expensive orders to the front of the allocation queue when inventory is tight.
Inefficient Packing Picking identical orders one-by-one.	Single Item Batches & Bulkship: The system filters for single-line-item orders of the exact same SKU. A picker goes to the bin, grabs 30 units, walks to the packing station, and scans the SKU once. Because the weight and box dimensions are identical for all 30 orders, the system instantly prints all 30 shipping labels in one click. ShipHero Demo Note // Bulk Printing Like-Items Mark confirmed we can set filters to group like-item orders into easily sortable tabs (e.g., "Slippers" vs "Water Warmers"). For items like baby ivory pelts that don't weigh exactly the same, we simply set the preset weight on the high side. The tiny difference of a few ounces doesn't significantly impact the rate, allowing employees to click 1 button to shop cheapest rates and batch print dozens of labels instantly.
Shared Inventory Risks Selling the same physical item across multiple storefront listings.	Master & Alias SKUs: Both Shopify listings will map to one Master SKU in the system. When one sells, it instantly drops the inventory count for both listings on Shopify, preventing overselling without manual math. ShipHero Demo Note // Sumtracker Fix The demo rep explicitly confirmed that Master & Alias SKUs will be a non-issue and effortlessly resolve your current bundling conflict.
Manufacturer Short-Shipments Vendors deliver less than expected, creating a backlog.	Automated Allocation & Order Splitting: The system automatically allocates received inventory to the oldest backorders first (First-In, First-Out) or based on preset VIP/priority rules that can be put into place. If an order is partially in-stock, the system automatically splits the order, shipping what you have and keeping the rest on backorder. ShipHero Demo Note // Inbound Receiving While it's not a full "Vendor Management System", employees can log incoming vendor deliveries. Once staff visually verifies the count/quality and accepts the PO, ShipHero automatically assigns that live inventory to waiting customers and shifts their orders to the 'Ready to Ship' queue instantly.
Pre-Sales & Scheduled Drops Future orders clog the current daily queue.	Sell-Ahead & Dynamic Backorders: When an out-of-stock item is ordered, the software places it in "Backorder" status (it won't print a pick ticket). You can use "Sell Ahead" to map incoming Purchase Orders to these sales. As soon as the PO hits the loading dock and is scanned (or manually received into the dashboard), the system automatically claims that inventory for the oldest backorders first. It then shifts these orders safely to the "Ready to Ship" queue, where your team can filter and batch-print the labels at their desired pace.
Disjointed Returns Manual restocking and refunding.	Frictionless Returns (RMA) Management: The system natively handles the entire returns workflow. When a return arrives, staff simply scan the package, grade the item's condition, and click a button. The software automatically restocks the inventory (if undamaged) and instantly triggers the refund or replacement exchange directly in Shopify—turning a 10-minute manual chore into a 10-second scan.
Shipping Rates Leaving margin on the table.	Automated Rate Shopping: While Shopify rates are competitive, a centralized system automatically compares negotiated rates between USPS, UPS, and other carriers in real-time, instantly printing the cheapest/fastest label for that specific package. ShipHero Demo Note // Direct Carrier Integration East Perry will open and own direct accounts with all major carriers (USPS, UPS, FedEx, DHL). ShipHero seamlessly integrates with all of them at once, shopping the absolute cheapest rate for each specific customer based on their geographic location.

5. The "Sandbox" Transition Roadmap

To eliminate operational risk, I recommend executing a Parallel Run. Your current Shopify and Sumtracker setup will remain fully live processing real orders while we build, map, and test the new system safely in the background.

ShipHero Demo Note // Concierge Support ShipHero provides a dedicated virtual rep who stays with us through the entire 6-8 week onboarding timeline. If needed, they even offer the option to send a representative physically to your warehouse to guarantee a smooth launch.

*Note: I have specifically inquired whether there are any hidden "onboarding" fees for this level of support (both virtual and in-person), and I will let you know as soon as I get an answer.

Stage	Action Plan
01 / Parallel Sync	Integrate the WMS with Shopify in "Read-Only" mode. (Inventory pushing and fulfillment updates are toggled OFF). Sumtracker continues live operations. Import the raw data for your 300+ SKUs.
02 / SKU Configuration	Execute the heavy lifting: mapping all 300+ SKUs to aliases, adding supplier data, and building Automation Rules for pre-sells, backorders, VIP priorities, and custom items. Connect carrier accounts.
03 / Hardware & Sandbox Training	Deploy mobile scanners and label printers. Your team runs "test-picking" on actual incoming orders using a sandbox/test environment provided by the software. This builds workflow muscle memory safely without sending accidental tracking emails or affecting live Shopify data.
04 / Live Cutover Test	Weekend freeze. Disconnect Sumtracker completely. Perform a final physical cycle count of all 300+ SKUs. Toggle the system's sync features to "LIVE" to act as the new Command Center and handle all future inventory routing.
05 / Data Forecasting	Activate predictive purchasing. The system begins analyzing sales velocity to manage your PO generation and vendor lead times automatically. ShipHero Demo Note // Forecasting Specificity Mark confirmed that ShipHero definitely has built-in data forecasting and predictive purchasing capabilities. However, our initial conversation wasn't entirely clear on exactly how specific or granular those predictive models get. I have flagged this as a high-priority item to explore directly in the software interface during the demo early next week.
06 / Ongoing Troubleshooting	A dedicated phase to work out the kinks, refine our automation rules, and troubleshoot on the warehouse floor. Most premium systems will provide an onboarding/implementation team to assist us through this phase to ensure success.

6. New Issues From Kathy's List Not Previously Discussed

I reviewed the additional operational notes provided by the team. While we have covered the bulk of the friction points (Bundles/SumTracker, returns, single-item batching, split orders), there are a few highly specific challenges on that list that ShipHero is perfectly equipped to handle:

Specific Issue	How ShipHero Solves It
Merging Orders for the Same Customer Minimizing shipping costs by sending multiple orders together when possible.	Automated Order Merging: ShipHero has a native "Merge Orders" feature. If a customer places an order on Tuesday, and then places a second order on Wednesday before the first one ships, the system can automatically flag and merge them into a single shipment to save East Perry from paying for two labels.
Multi-Vendor Tracking for a Single SKU Tracking which specific vendor a product came from in case of flaws or returns.	Lot / Batch Tracking: When inventory arrives from Vendor A, it is received under a specific "Lot". When Vendor B sends the same SKU, it gets a different lot number. When an item is picked, the system records exactly which lot it came from, allowing for perfect traceability.
Sourcing Delay Communications Pulling orders out of the regular flow and automating customer communication.	Automation Holds & Triggers: We can build a rule that says: If tagged 'Sourcing Delay', place on Operator Hold. Because ShipHero pushes order statuses back to Shopify immediately, you can use Shopify Flow or Klaviyo to automatically trigger an email to the customer the second ShipHero applies that hold status.
Direct Amazon & Etsy Integration Currently managing these manually or with clunky workarounds.	Native Integrations: ShipHero integrates natively with both Amazon and Etsy. It pulls those orders directly into the central dashboard alongside Shopify, and we can set an Automation Rule to automatically bump any order with the source "Amazon" or "Etsy" to the front of the VIP picking queue.
Strict OOS vs. Backorder Thresholds Automatically stopping sales when items are too far out (e.g., 2 months/pallets away).	Dynamic "Sell Ahead" Limits: We can configure the system to continue selling only up to the exact quantity of an incoming Purchase Order. Once that specific PO quantity is claimed, it automatically triggers a true "Out of Stock" state in Shopify, forcing the "Full Stop" Janine requested without manual calendar monitoring.
Cross-Departmental Visibility Clear usability for Customer Service, Marketing, and Collabs (Shane's role).	Dedicated User Access: We will need to clarify exactly what data Shane needs for 'Collabs', but ShipHero does allow you to assign user accounts so Marketing and CS can view real-time stock levels or track specific orders. *Note: ShipHero's standard plans include a set number of user seats (usually 3 to 5), and they do charge a monthly fee for each additional user. I will confirm this exact cost during the demo.

7. Platform Comparison: ShipHero vs. Extensiv

To ensure a rigorous and unbiased software evaluation, I researched another major industry player: Extensiv (formerly 3PL Central). The goal here is to objectively compare the pros and cons of both platforms to ensure we are making the absolute right choice for East Perry's specific business model.

Category	ShipHero	Extensiv
Primary Target Audience	Originally built for Shopify, it functions as the top-rated WMS on the Shopify App Store. Built primarily for fast-growing Direct-to-Consumer (DTC) brands needing high velocity.	Originally built as "3PL Central," it is designed specifically for Third-Party Logistics (3PL) providers managing multiple distinct client accounts in massive warehouses, or enterprise B2B networks.
Ecosystem & Integrations	Features native, 1-click integration with Shopify out of the box, but easily scales to connect with Amazon, WooCommerce, etc. Imports Shopify tags directly for automation triggers.	Uses a massive "Integration Manager" to connect with virtually any platform, but often requires significant mapping to act as a centralized ERP for multi-channel sales.
System Approach & Architecture	Takes an "all-in-one" approach, offering a comprehensive suite of WMS features designed specifically to streamline eCommerce fulfillment without requiring third-party plugins.	Takes a "modular" approach (Warehouse Manager, Order Manager, Network Manager), allowing for deep, specialized customization by bolting on specific tools as needed.
User Interface & Training	Highly intuitive mobile app and desktop interface. Feedback indicates new warehouse pickers can often be trained and up-and-running on the floor in about 10 minutes.	Because it is highly customizable and heavily modular, the interface can be more complex, often requiring significantly more time for employee onboarding and team training.
Implementation & Launch Support	Typically 6-8 weeks of guided onboarding with a dedicated virtual rep. Crucially, they offer the option to deploy a representative in-person to your physical warehouse to guarantee a smooth launch. (Note: I am confirming if there are extra fees for the in-person option).*	Typically a 3 to 6-month intensive enterprise rollout, which often requires hiring an outsourced 3rd-party systems integrator to ensure complex setups are mapped correctly. Of course, if you use this I'm sure you'll be getting help from Ernest directly too.
Picking Workflows	Paperless, mobile-first picking paired with desktop "Bulkship" label printing. (e.g., pick 30 identical single-item orders with the iPad, then go to the desktop packing station to click "print" once and generate all 30 labels instantly).	Deeply robust for complex, multi-warehouse 3PL routing, but historically relies heavily on printed paper pick-lists or legacy ruggedized Windows mobile devices.
Handling Alias & Shared SKUs	Native "Alias" system effortlessly maps infinite marketing listings (e.g., Dog Toy & Baby Rug) to a single physical master inventory count without breaking Shopify bundles.	Supports aliases and bundling, but setup requires complex configuration bridging its Order Manager tool and WMS tool, creating a heavier administrative burden.
Returns Management (RMA)	Built-in natively. Employees scan a return, grade its condition, and the software automatically restocks the item and triggers the Shopify refund in seconds.	Generally relies on modular add-ons or integrating a third-party return software (like Returnly or Loop) mapped through their systems.
Ongoing Support & Resources	Provides the exclusive "ShipHero Academy" video instruction library for continuous learning and highly-rated, plus 24-hour responsive customer service. Also, I think you can still contact your account rep if needed.	Offers 24/7 live phone support and a massive, active user community (Warehouse Manager University, Help Center) for self-guided troubleshooting.
Pricing Structure	Transparent "all-in-one" monthly subscription with no binding contracts. The monthly fee includes the complete suite of features.	Charges a base monthly fee, but prices per feature module. While highly customizable, monthly subscription costs can scale up significantly as you add necessary operational modules.

East Perry Context Note // Why This Matters Both softwares are incredibly robust, but their foundational origins dictate why ShipHero is the better fit in my opinion. Extensiv's modularity and 24/7 live support are fantastic for a 3PL network juggling 20 different client accounts, but paying per-module can quickly inflate monthly costs, and there are many reports that the complex interface requires longer training times. This may be what Roman was frustrated with. The UI and platform itself just seems to be more for a 3PL warehouse. For East Perry—a DTC brand built on Shopify that needs to get warehouse staff moving efficiently before the Q4 rush without juggling modular software add-ons—ShipHero's native Shopify integration, automated tag importing, and 10-minute picker training align much better with your infrastructure and timeline.

However, if you are interested in having Ernest manage some of your orders and returns directly, I can understand why they are recommending the software they use.

8. Ongoing Questions to Consider

As we evaluate these operational shifts, here are a few strategic questions regarding the long-term fulfillment strategy moving forward:

What is the true cost of having Ernest handle returns and certain shipments over the course of a year (including their management, pick and pack fees, etc.) + using Extensiv?
Is the outsourced price worth not having to handle it with your own team?
How does that outsourced cost compare to your staff managing it all in-house?

Important Context Note ShipHero will drastically decrease the time spent on both fulfillment and returns. It will streamline so many of the manual processes your team has been using. Empowering your in-house team to handle this volume effortlessly is one of the major points of doing this software upgrade to begin with.

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