Exploring Key Benefits of 3PL Software in Egypt

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Exploring Key Benefits of 3PL Software in Egypt

3PL or third-party logistics providers have a rich history of supporting businesses to manage their supply chain and logistics operations with better efficiency. However, in this fast-paced world, the traditional 3PL software in Egypt is no longer enough to deal with warehouse management, inventory, and logistics. 

According to a recent report from Statista, the e-Commerce revenue in Egypt is expected to experience an annual growth rate of 14.82% between 2023 and 2027. The e-Commerce market volume is expected to reach $13.11 billion, while the user penetration is expected to hit 70.1% by the end of 2027. 

Such rapid growth in the Egyptian e-Commerce industry is bound to put more pressure on the existing logistics and fulfillment networks and businesses. Manual management crumbles in the wake of complex logistics challenges like lack of technological involvement, issues with omnichannel fulfillment, increased shipping costs, and more.

Hence, businesses need better solutions to overcome these challenges and need to revamp their supply chain and logistics operations and 3PL management strategies to improve CX and overall efficiency.

In this blog, we will discuss the core logistics challenges businesses face in manually-managed 3PL systems and how they can benefit from advanced 3PL software in Egypt.

What is Third Party Logistics Software?

3PL software or third-party logistics software helps e-commerce companies, 3PL providers, or delivery businesses manage their supply chain and logistics operations in an automated manner. It helps businesses with warehouse management, order management, inventory control, and transportation processes, and these functionalities can vary across vendors as well.

An ideal 3PL solution should be able to integrate with fulfillment networks, billing applications, and carriers. This way, it can provide end-to-end visibility and order-tracking capability to companies and their clients.

Challenges Driving the Need for Smart 3PL Software in Egypt

Lack of Tech Involvement

Most shipping carriers in Egypt are generally local or regional companies that don’t use any kind of smart logistics solutions. Managing several 3PL providers manually makes it difficult for companies to coordinate shipments and other logistics operations. As a result, these businesses face several problems, such as the inability to get exact vehicle locations, drivers or shipment allocation, and efficient logistics.

The lack of centralized vendor management makes it hard to capture and analyze data and KPIs related to deliveries and 3PLs. The lack of real-time data and reports hinders the decision-making process, leading to increased delivery expenses, ETA SLA breaches, and customer complaints.

Complex Customer Demands

These days, customers expect their orders to reach their doorsteps faster than ever before. Many people prefer to do business with companies that guarantee same-day or 2-day deliveries. A recent PWC study reported that 41% of all customers are willing to pay more to receive their orders same day.

That’s not all. These consumers also expect customizable delivery options, real-time order tracking features, and faster communication with the customer support team.

However, achieving this without intelligent technologies is impossible. Thus, businesses are quickly realizing the benefits of early technology adoption and this is driving the need for intelligent 3PL software in Egypt.

Inefficient Route Optimization

Manual route planning fails to consider real-time changes in vehicle conditions, delays, and other emergencies. As a result, optimizing the delivery routes according to the situation becomes a very difficult task.

The stakeholders need to keep track of multiple routes, ETAs, vehicle capacity, number of vehicles, availability of drivers, and more, which are laborious tasks. This eventually results in delays, increased delivery costs, wastage of human resources, and unsatisfied customers.

Increased Delivery Costs

Working with multiple logistics partners already cuts a chunk of the revenue of any business, especially during the peak seasons when the service costs are all-time high. On top of that, it costs even more money to deliver the orders faster, which is important. After all, longer delivery times just to cut costs can cause businesses to lose customers.

That’s why businesses need intelligent 3PL software in Egypt that can help keep the delivery costs in check without sacrificing delivery speed. These platforms can help companies with warehouse, order, and dispatch management as well as automated task allocations. All of these factors bring down the delivery costs significantly, and it won’t be possible with traditional third-party logistics software.

Issues with Omni-channel Fulfillment

The online commerce industry in Egypt is already facing troubles with heightened customer expectations and strict SLAs. On top of that, companies are required to work with dispatchers with a strong order management system for almost immediate order confirmation and delivery time projections. 

They also need to allocate drivers and vehicles fast while selecting a dynamically optimized shipping route for efficient order fulfillment.

However, with traditional management systems, meeting these expectations will be a tough nut to crack. Without an intelligent solution to automate all these mundane tasks, omnichannel fulfillment would consume too much time and human resources.

Business Advantages of Using 3PL Software in Egypt

Reduced Order-to-Delivery Times

Smart 3PL solutions offer capabilities to manage multiple components of the logistics value chain as they can integrate with multiple systems, such as WMS/OMS/ERP/CRM and more. Every single step in the logistics department related to the order will be automatically recorded and updated in real time. 

The relevant stakeholders can check each step of the delivery process, such as inventory movement, packaging, or driver allocations, which can be viewed from a single unified dashboard. The entire retail fulfillment process is updated in real-time, and all these tasks are done via automated workflows. It saves a lot of time for all the relevant stakeholders, and the deliveries become faster and more efficient.

Reduction in Fulfillment Costs

Businesses can save a lot of money in shipping and fulfillment costs by strategically keeping their products in multiple 3PL warehouses to reduce the overall shipping distance. Businesses using advanced 3PL software in Egypt can analyze past fulfillment records, use predictive insights to improve planning, and leverage the in-built algorithms to allocate orders automatically based on optimizing constraints

They can set specific rules based on vendor pricing, past performances, nature of shipments, load, vehicle capacity, and vendor serviceability to reduce costs per trip and maximize resource utilization. This helps them complete a higher number of deliveries via the existing assets and reduce the haphazard hiring of expensive resources for express logistics, etc. 

Offers End-to-End Visibility

Businesses don’t have to visit various websites to obtain information about order fulfillment as the 3PL solutions furnish real-time data concerning inventory levels, package status, and shipment details on a unified platform to all stakeholders.

At the time of placing an order, inventory levels are accessible, and availability can be instantly confirmed. Throughout the shipping and delivery phase, all stakeholders can effortlessly track the package’s status. Similarly, during the return management process, 3PL solutions provide seamless returns and monitoring throughout the entire process.

Meet Customer Expectations 

By leveraging the smart functionalities of 3PL software in Egypt, businesses can cater to complex customer requirements, such as delivery scheduling, express deliveries, and more. The solutions allow businesses to automatically allocate orders as per the delivery constraints to ensure SLA adherence and cost efficiency at the same time. 

Further, they can meet customer demands for proactive shipment status updates and feedback as the solutions come with such features. 

Streamline Your Logistics Operations With Shipsy – Leading 3PL Software in Egypt

Shipsy’s end-to-end retail supply chain and logistics platform can drive high-level operational efficiency that can help businesses eliminate problems. Our intelligent 3PL platform comes with smart functionalities, such as efficient route optimization, unified 3PL management, smart 3PL selection, seamless integrations, real-time customer updates, and intelligent 3PL aggregation. 

With Shipsy’s smart features, businesses can unlock the following results:

  • Reduce customer onboarding time by 45%
  • Decrease last-mile delivery costs by 23%
  • Increase delivery NPS by 26%
  • Reduce 3PL invoicing errors by 100%
  • Shorten the order-to-ship time by 12%

Request a free demo today and explore how Shipsy’s 3PL software can help your business unlock greater efficiency and rapid scaling.

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