Key Features of 3PL Software Every Business Should Know

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Key Features of 3PL Software Every Business Should Know

The surging number of international shoppers, from 1.32 billion in 2014 to 2.14 billion in 2021, and the dynamic delivery landscape calls for more logistics partners as businesses are looking for ways to make the process smarter and easier. Stats reveal that 90% of fortune 500 businesses work with a 3P to scale their operations. Further, 66% of business leaders increased their logistics outsourcing budget in 2021. Despite outsourcing logistics and supply chain operations, many retailers still struggle with timely deliveries, shipment visibility, and poor customer experience.

One of the key reasons behind these challenges is the inability to manage and monitor third-party logistics partners. The simplest solution to this problem is integrating 3PL software or a courier aggregator. Let’s dig deeper to learn more about 3PL software and the key features of 3PL software.

What is 3PL software?

A 3PL software or courier aggregation platform is a unified logistics management platform that allows businesses to manage all their third-party logistics partners, track multiple shipments, and more.

Key Features of 3PL Software

Quick Carrier Onboarding

A 3PL management software allows hassle-free integration with carrier partners and storefronts like Shopify, Magento, etc., to allow quick carrier onboarding.

Auto-Allocation of Orders To The Most Profitable 3PL

The 3PL software is powered by a smart auto-allocation engine to choose the right third-party logistics partner based on 3PL performance and other parameters such as SKU type, weight, payment type, and order volume.

Key features of 3PL software

Automatic Label Generation

The intelligent 3PL software facilitates smart label generation using the order info extracted from the LSP and then putting it into a standardized label format. This format is convenient for both the business and the 3PL.

Real-time Tracking

The software empowers businesses to track multiple shipments shipped via the same or different 3PL partner from a single window. Real-time tracking helps keeping a tab on all shipments to avoid unnecessary delays and get accurate ETAs.

Delivery Alerts

The 3PL software ensures complete transparency during the delivery process by automatically sending consignment status updates to customers via SMS/WhatsApp/Email.

Arresting Fake Delivery Attempts

A smart 3PL management platform minimizes fake delivery attempts by validating non-delivery reasons directly with end customers. When a driver marks a parcel as “undelivered”, it triggers a message to the end customer to verify the reason and take corrective measures.

Monitoring Carrier Performance

A courier aggregation platform has a feature for 3PL performance benchmarking to know KPIs like load being allocated to different 3PLs, number of on-time deliveries, common non-delivery reasons, etc.

NDR Management

The platform consolidates common non-delivery reasons into different categories so that businesses can seamlessly gauge into NDRs, figure out the reason for non-delivery, and know NDRs that are frequently recorded in a particular geography/by a specific 3PL/at an origin hub.

Efficient Returns Management

An advanced 3PL solution automates returns management and ensures faster returns completion and improved customer experience. It automatically assigns the pickup driver and finds out the most efficient delivery route for the pickup.

Benefits Of Using A 3PL Software

Enhanced Shipment Visibility

A smart 3PL management solution offers complete visibility on all the shipments that have been sent across different third-party logistics partners. Businesses can track all of them on a single screen.

Standardized Customer Communication

Different third-party logistics providers have different drafts for updating the status of the shipment. 3PL management software standardizes this communication and sends updates in the same format. 

Improved Customer Experience

An intelligent 3PL management solution provides insights into the customer experience. Moreover, businesses can also use a central dashboard for VOC (Voice of Customers) analytics and delivery satisfaction computation.

New Carrier Recommendation

As a business grows and order volumes increase, scaling up with one courier partner is not viable. A 3PL management solution recommends the best carrier based on various factors and hence, reduces the bandwidth required to integrate new carriers.

Data-backed Decision Making

A 3PL management solution offers access to data analytics, reporting, and actionable insights. Using these insights, businesses can establish predictive patterns and make data-driven decisions. 

Improved Flexibility

Advanced 3PL management solutions empower businesses to offer multiple delivery options and fulfill customers’ diverse delivery demands. Depending on a 3PL’s individual strengths, it can automatically choose one for the hyperlocal delivery while the other for the same/next-day delivery.

3PL software benefits

Better Operational Control

Third-party logistics software enables businesses to have improved operational control. Using integrated dashboards, businesses can control operations at scale and automate the creation of documents, such as label generation and more.  

Seamless Collaboration

The 3PL software empowers businesses to collaborate seamlessly with all 3PL providers as well as with their internal teams. In the case of the latter, they can collaborate via comments or actions.

How much does 3PL software cost?

3PL software or courier aggregation platforms are customizable, which means you can choose the features and functionalities according to your business needs. The cost of the software depends on that only. In other words, you will have to pay for the specific features you want in your 3PL management solution.  

What type of businesses can use 3PL Software?

3PL software is suitable for all businesses that use one or more than one 3PL to look after their supply chain and logistics operations. It could be retail, manufacturing, freight forwarder, or any other business. Such an advanced solution enables businesses to effortlessly manage all third-party logistics companies and focus on their core business operations.

Shipsy: AI-Powered 3PL Software for Integrated Management

Shipsy’s courier aggregator platform allows businesses to manage, monitor, and collaborate with multiple third-party logistics partners on one dashboard. The SaaS-based customizable solution has integration with more than 90 courier partners or 3PL providers from all over the world. It has pre-built plugins and APIs for seamless and quick integration with an OMS/WMS/ERP.

Shipsy’s intelligent 3PL management platform empowers businesses to reduce first-attempt delivery rates, track 3PLs’ performance, ensure SLA adherence, minimize delays in picking up ‘returns’ orders, and more. The platform guarantees:

  • 18% reduction in shipment returns
  • 64% increase in customer satisfaction
  • 26% increase in delivery NPS
  • Auto-allocation of 99.7% of delivery tasks 
  • 8% increase in the first attempt delivery rate

To know more about Shipsy’s 3PL management solution, request a custom demo now.

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