Plan, procure, execute, & track transportation for every shipment across your supply chain & logistics operations
A SaaS solution to help grow your business by achieving 100% perfect order execution at high volumes
Increase vehicle capacity utilization and customer promise adherence
Grow your business with omnichannel presence and automated pickups
Consolidate shipments for hub to hub movement across land and air
Real-time customer communications and collect accurate PODs
Orchestrate logistics operations with multiple 3rd party carriers
Achieve cost effective, scalable, sustainable, and customer centric deliveries
Orchestrate all your cross-border logistics operations with ease
Improve address accuracy, ensure first-attempt delivery success, reduce costs and boost customer experience
Gain end-to-end shipment visibility, get proactive alerts, and send customers live tracking links
Grow business in a dynamic world and manage operations across First, Middle & Last mile
Delight customers by seamlessly managing store and online orders across own fleet and 3rd party
Reduce freight costs & get end to end visibility across shipments
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More than 2.14 billion people across the globe are buying goods and services online, and the scale of operations and the management time required for the smooth functioning of operations is increasing. Businesses have to take a call on whether it would be efficient to handle it in-house or outsource it.
With evolving customer expectations, climbing order volumes, and increasing fuel costs, 3PL logistics solutions emerge as an easy solution to make it easier to facilitate fast and low-cost deliveries. According to stats, the global 3PL market will be USD 1789.94 bn by 2027, which is a clear indication of the demand for intelligent 3PL software. As the importance of 3PL service providers in an increasingly competitive market gains momentum, it becomes important to understand the core value set and business propositions in a better manner.
Irrespective of the business type and scale, the best 3PL software has key features to attend to affect multiple problem sets and use cases positively. This allows brands to focus on core areas like new products, marketing, and sales. In this blog, we will explore the advantages and some of the key features of #PL software and how 3PL helps in order fulfillment.
First, we will start by looking into what 3PL and 3PL solutions are.
3PL or third-party logistics refers to the arrangement where an organization outsources its order fulfillment process to a third party. Hence, a 3PL service provider offers different types of logistics services to businesses, such as logistical transportation, warehousing & distribution, last mile deliveries, etc.
The third-party logistics provider manages the order processing, warehousing, inventory management, and inbound & outbound transportation, and may provide other services like customer support, returns processing, and customization. However, the business or manufacturer retains oversight on the entire process.
3PL logistics solution can be defined as a systems-based scalable solution by a third-party logistics company for end-to-end management of the customer fulfillment end of the business. 3PL logistics solutions can also be used by businesses to manage, monitor, track and plan the processes and operations offered by third-party LSPs (logistics service providers).
eCommerce consumers, or otherwise, are increasingly expecting their orders to be delivered the next day, if not the same day. The complexity gets amplified for international shoppers, with the additional challenge of being well-versed with export documentation, customs, and applicable duties.
Third-party logistics software address this challenge using new-generation proprietary software and processes to leverage their geographically spread-out network of customer fulfillment centers. While smart 3PLs offer management interfaces or independent solutions to their clients, they come with limited functionalities and capabilities.
Hence, businesses might find it hard to manage all the aspects of their logistics operations, and opting for customized 3PL management solutions comes out as a better option. The scope of such solutions can cover essential parts of the supply chain like transportation, warehousing, picking, and packing and extend to order fulfillment, packaging and freight forwarding, customization, and inventory forecasting.
Retailers and e-commerce companies partner with multiple 3PL service providers to ensure on-time deliveries across a wide geography. Manual management of the logistics operations of all partners becomes cumbersome, time-consuming, and expensive.
This is where intelligent 3PL logistics solutions come into the picture. The solutions automate logistics processes to speed up the delivery process, track every stakeholder and process to finish each task on time, and brings complete transparency. Let’s understand the advantages that 3PL logistics software offers.
Automated warehouse management systems obtain online orders, check inventory levels in real-time, and confirm the order. This simplifies list generation for picking orders, packing, and labeling. An integrated smart delivery system automates the delivery allocation to delivery partners based on the item, the transporter’s suitability, and availability.
No manual intervention is required, and the system generates delivery lists and optimized delivery routes for quick and seamless deliveries for the highest customer satisfaction. Further, the businesses can set specific criteria to choose from multiple 3PL partners and automate the selection for different kinds of shipments.
Smart 3PL solutions provide real-time status of the consignment in transit and shipment details to concerned people via a single platform. 3PLs send dispatch emails/ SMS to the customers and real-time updates on package status in transit.
For delivery managers, this helps simplify order tracking across multiple delivery partners. Further, the AI-powered and cloud-based 3PL management solutions can be configured for sending automated alerts and messages to customers, businesses, managers, etc. These messages ensure proactive follow-ups, customer engagement, and dynamic updates in relation to shipment movements and delivery.
There is no need to connect to multiple sites to get order fulfillment information. 3PL solutions provide real-time data on inventory levels, package status, and package shipment data to stakeholders on a single platform.
During order placement, the inventory level is available, and the order can be confirmed instantly based on availability. For the entire shipping and delivery phase, all stakeholders can easily look at the status of the package. Similarly, during return management, 3PL solutions offer smooth returns as well as tracking during the entire process.
3PL solutions facilitate multiple delivery options across geographies and manage them all using a single dashboard. By leveraging their geographically spread-out network, they are able to dispatch consignments on the same day in case the order is logged in by a particular cutoff time. End-to-end visibility, the ability to contact the trucker even during transit, and real-time updation of ETA enhance the customer experience.
As soon as the order is out for delivery, the customer gets an automated alert for the same so as to ensure first-attempt delivery success. Further, the customers are able to check the live order movements in specific delivery types, such as on-demand and same-day deliveries, etc.
3PLs cut down the time to customers and hence transit costs significantly by capitalizing on their wide network of fulfillment centers across the country and internationally. For the same reasons, returns also take less time and cost.
The warehouse management software automates inventory management, order confirmation based on inventory levels in the system, picking allocation, and generation of packing lists. On packing completion and invoice generation, the system can allocate deliveries to transporters based on availability, suitability, and cost.
Third-party logistics software ensures access to an efficient and reliable customer support system that can attend to end-customer queries received online and directly. Using a judicious mix of customer service executives and automated customer engagement tools like bots, 3PL logistics solutions allow quicker resolution. Timely automated updates on order status help to manage queries and improve the customer experience.
Analytical tools help in demand forecasting and planning inventory levels required at different fulfillment centers to give customers quick delivery. They also help identify improvement areas for improving business operations and customer experience.
Receiving refers to the acceptance of incoming inventory followed by its storage. Receiving inventory is one of the important warehousing operations that has to happen before 3PLs can start fulfilling orders for manufacturers and online stores.
Each 3PL has its own processes for receiving and storing inventory. This allows prior notification of the type and quantity of products; upon receiving the inventory, 3PLs store items in designated fulfillment centers. Each SKU has a separate dedicated storage location, either on a shelf, bin, or pallet.
Few 3PLs require manufacturers or businesses to upload orders to their system manually. However, smart platforms like Shipsy, easily integrate online stores and automatically update orders to fulfillment providers via smart API integrations with existing infrastructure, such as OMS/WMS. It helps integrate eCommerce platforms and marketplaces to synchronize orders, shipments, inventory levels, and more.
Upon receiving an order, the third-party solution assigns it to a warehouse picking team. This team receives a packing list of the items, quantities, and storage locations at the facility.
When all the items are picked, packing is done with materials that will protect the items in transit. Few third-party logistics providers charge for packing materials as separate line items. Whereas others often include such charges as part of the fulfillment services.
The system allows the customer to also go in for customized packing, including branded or occasion-based packing like birthday gift packing. For branded packing, the packing material is also treated as another part/ item, and the system maintains inventory so that it can be replenished on time.
3PLs generally approach shipping operations from two angles. One, they have dedicated shipping agencies, or they select shipping companies based on their shipping price quoted. Before shipping, the label is generated automatically. Label formats will differ between shipping companies.
Shipsy’s smart 3PL management platform helps businesses automate their label generation process with the intelligent in-built label generation functionality that creates labels within minutes as per the different guidelines and requirements.
The system allows the logistics partner to see details of the items to be transported so they know the volume, weight, destination, and nature of the packages and accordingly make the right logistics arrangement.
The system invites quotes for delivery from preferred partners or from freelance truckers via a website or app. Based on package details, suitability of transport, and destination, the appropriate quote is selected for delivery operations. After loading and dispatch, the transit tracking info is available online and also shared with the customers.
For international delivery, the system gives visibility of cargo location in the transit stage and automatically pushes notifications of status regularly to customers. The system also provides access to shipping schedules and port congestion to manage supply chain disruptions in real-time. The businesses can view the status of all shipments on a common dashboard without having to open multiple transporter websites.
The rate of returns of online purchases is always higher than purchases done from in-person stores. Also, it is important that the return process should be customer-friendly and easy as it helps foster customer trust while making an online purchase.
The system enables the customer to generate a return order online or on an app, and the return order is sent to the correct fulfillment center. Features like invoice generation and label creation are included in all smart 3PL solutions.
The designated warehouse will collect the return, inspect it, and if in good condition, will stock it at the assigned place for the item and update the inventory in the system.
Businesses that don’t have enough resources to manage their logistics operations choose 3PLs for the same. A 3PL has top-notch logistics solutions to efficiently manage end-to-end order fulfillment.
Now the question is, what’s 4PL? The answer is quite simple. While a 3PL takes care of the logistics and transportation of a business, a 4PL manages the entire supply chain operations along with oversight.
Let’s check the other key differences between 3PL and 4PL
Not every third-party logistics provider offers the same set of services or operates in the same region. It is obvious that one 3PL might need a different logistics solution than the other. Therefore, choosing a 3PL logistics solution for your business requires a great deal of attention.
To make this whole process easier and time-saving, we have mentioned here a few points to keep in mind before selecting a 3PL logistics software.
To provide accurate and data-driven solutions, 3PLs must derive data sets from the business’s database as well as other management systems. In case the system fails to sync seamlessly with the existing ERP, WMS, or ORM system, it will cause trouble for the managers and delivery executives.
Businesses are better placed on selecting a 3PL solution that is proficient with data collection from various data management solutions. This allows easier solutions for executives, fleet managers, logistics personnel, dispatchers, and others.
Various businesses require different solutions and features based on the nature of the industry. This makes it crucial for the selected 3PL software to understand and implement the business-specific customization needs.
These requirements could range from customer service to multi-channel availability. Also, there may be additional client–specific requirements like an inbuilt chat platform and delivery notifications for ETA information.
Every enterprise, be it eCommerce or shipping, evolve over time. With the increase in orders and operational management, the in-house logistics department slowly lags behind. And this brings third-party logistics solutions into the picture.
Smart 3PL logistics solutions can scale up and down as per business requirements. During seasons of high demand, the software can easily adapt to the overall business process to deal with the increased needs. This optimizes delivery efficiency as well as associated operational processes. Also, cloud storage allows greater ease with upgrading as well as moving information.
Oftentimes, 3PL logistics solutions have a steep learning curve, which makes it difficult for employees to master it in a short time. Therefore, before selecting such a system, make sure that it is intuitive in nature.
Delivery managers and admin personnel are empowered to manage operations, multiple carrier partners, service providers, customer communication, and more via a single unified dashboard. With smart logistics solutions, the dashboards allow people of all permission levels to use them with ease.
With modern third-party logistics software, you can be assured of smart delivery management features. This technology, powered by AI and machine learning algorithms, provides task automation, real-time tracking, route optimization, automated stock management, geo-fencing, and a lot more features. It becomes a whole lot easier to efficiently deliver packages to customers.
Customer expectations are evolving at a rapid pace. Third-party providers that invest in efficient customer service can ensure quality service and excellence for both the business and its brand. Smart solutions allow both 3PL providers and the business to identify and resolve customer issues properly within a short time window.
Shipsy’s AI-powered logistics management platform streamlines the task of choosing and collaborating with delivery partners. For pickup/delivery, multiple 3PLs can be managed via a single dashboard. And the in-built intelligent allocation engine ensures superior performance at the lowest possible cost.
Shipsy’s courier aggregation platform is the best option for businesses that have outsourced logistics operations to multiple third-party logistics providers. Features like daily shipment reports, multimodal visibility, and workflow automation help boost enterprises to the top in an increasingly competitive market.
Choose Shipsy today to experience a smart 3PL logistics solution and transform your business with unique benefits like:
To know more about Shipsy’s 3PL management solution or to get started, please connect with our experts today and request a customized demo now.
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