How to Manage Multiple 3PLs: Leveraging Smart Automation for Efficient Logistics 

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How to Manage Multiple 3PLs: Leveraging Smart Automation for Efficient Logistics 

The role of 3PL providers in the modern-day supply chain is considerable for businesses to ignore. The 3PL market already touched the USD 1 trillion benchmark in 2022. It is expected to grow at a CAGR of 5% from 2023 to 2032. Future-ready brands partner with multiple 3PL service providers to accelerate the supply chain process and deliver a superior CX. So, the question remains – how to manage multiple 3PL partners simultaneously in a hassle-free manner, and cater to the growing customer demands? 

Although product and pricing are critical for businesses to stay ahead of the competition, a crucial part of winning customer delight involves streamlining the logistics operations. The complexity of logistics affairs nudges enterprises to invest in a 3PL partner instead of building an in-house team to save time and cost. 

Brands often collaborate with multiple 3PLs to expand the business reach and ensure the utmost customer satisfaction. Businesses of all sizes are increasingly investing in 3PL partners or tech-enabled platforms to make the order delivery process cost and time-efficient and seamlessly process bulk orders during rush hours or peak seasons. 

Before we dive into the details of how to manage multiple 3PLs seamlessly, let us understand the meaning of 3PL (third-party logistics).  

What Does 3PL Mean?

3PL stands for third-party logistics, which involves offering different types of logistics services to companies, such as inventory management, warehousing, and last mile delivery. The services offered by a 3PL provider vary from one company to another based on their business use cases and logistical requirements. With the rapid growth of retail and e-Commerce since the early 2000s, smart 3PL platforms have become critical to automate fulfillment procedures and ensure on-time delivery. These platforms help automate the management, monitoring, tracking, and controlling of 3PL services in an easy manner, and make it possible for businesses to ensure profitable logistics outsourcing.

Top 5 Logistics Services Offered by a 3PL

Depending on the nature of the business, a 3PL service provider may offer varying services. Businesses, whether big or small, are looking for innovative ways to manage multiple 3PLs simultaneously and leverage maximum benefits. From a 3PL perspective, each business has its own distinct set of requirements. One might require optimized last-mile processes, whereas others might seek end-to-end logistics visibility for seamless communication. 

Listed below are the top 5 services offered by 3PL service providers for businesses of all sizes:

Warehouse and Inventory Management

Warehouse operations form a critical backbone of the supply chain process involving numerous steps such as handling, storing, and processing items. Similarly, efficient inventory management at all times is necessary to ensure that in-demand products never run out of stock and product waste is kept to a minimum. 

With robust 3PL software, enterprises can provide their customers with a real-time view of the movement of the goods and update them simultaneously when the product is dispatched for delivery. Businesses are also able to seamlessly manage incoming orders and keep track of the inventory and goods in transit. 

Order Fulfillment

Some 3PLs provide generic pack & pick-up services, while others may provide offerings that include returns management. Smart platforms for 3PL management automate the tedious processes of order allocation and help businesses select the best possible carriers based on specific parameters, such as the area covered, vehicle type, cost, etc. 

Moreover, customers are also updated in real-time via different channels, such as SMS, chat, etc., to ensure there is no miscommunication, and leg-to-leg movement details are proactively shared with them. Apart from keeping the customers engaged and informed about the order movement, this also helps increase first-attempt delivery success rates. 

Transportation

Apart from warehousing and order fulfillment, a 3PL may also provide transportation services, including intermodal transport, cross-docking, drayage, etc. Many 3PL partners leverage AI, ML, and IoT capabilities to provide a real-time view of the movement of goods and container details, including temperature. This way, businesses are able to ensure the quality of many fragile products throughout long transportation routes. 

Owing to the diverse requirements for delivery management and transportation, businesses require different 3PL partners and can end up spending more on 3PLs if they dont know how to manage multiple 3PLs efficiently.

Delivery

An intuitive 3PL platform empowers enterprises to gain complete transparency during the delivery journey and also update consumers via WhatsApp/Email/SMS. Trigger alerts are shared with the end-consumers whenever a parcel is marked ‘undelivered’ by the rider to verify the reasons and reduce fake delivery attempts. 

The 3PLs might also offer last mile transportation and delivery management, which might also involve offering different types of deliveries, such as white glove delivery services, on-demand deliveries, and same-day and next-day delivery. 

Returns Management

This is another important service offering of 3PL providers that involves managing the wrong deliveries and other scenarios which call for shipment returns. The rider collects the shipment, checks the same for tags and other things, and takes it to the warehouse/distribution hub/hub. 

Although in-house management of logistics operations is still in practice among many enterprises, it can take a significant toll on labor productivity and TCO. This is why businesses partner with 3PLs. 

In the next section, we will explore more reasons why businesses prefer 3PL partners to manage their logistics operations. 

Why Businesses Rely on 3PLs For Logistics Management

Venture Into New Markets

Although the thought of partnering with more than one 3PL can be a strenuous proposition with businesses wondering ‘How to manage multiple 3PLs seamlessly?’ nonetheless, it presents numerous benefits. One core advantage is that it becomes easier for businesses to expand into emerging market areas and tap into the growing consumer base. Each 3PL will have its distinct features and added capabilities, with enterprises having the opportunity to cater to new customers, widen their serviceability, increase their reach and maintain a positive CX throughout. 

Meet Evolving Customer Expectations 

We live in the age of instant gratification, where customers expect fast deliveries at the cheapest rates. A 3PL provider enables businesses to outsource order fulfillment operations and leverage technological capabilities for greater accuracy in the delivery processes.

Customers can track the location and whereabouts of the order via access to a real-time dashboard. Additionally, businesses can communicate with customers based on specific delivery milestones, detect fake NDRs and improve first-attempt delivery success rates. 

Positive Delivery Experiences 

Providing a great delivery experience to customers is a crucial brand differentiator nowadays when it comes to winning customer delight and gaining their trust. Investing in 3PL software automates the entire process, providing enhanced customer transparency and optimizing operations for faster, safe, and secure deliveries. 

Moreover, 3PL platforms also provide gateways for customers to directly communicate with the riders and leave feedback in case of any discrepancies. Ensuring clear and transparent communication with the customer reduces the chances of failed deliveries and also ensures faster resolution of complaints. 

Expand the Customer Base

Various 3PLs offer customized services, enabling businesses to increase their market reach, optimize inventory management, and scale operations as per consumer demand. Moreover, having multiple 3PL partners provides a gateway for shippers to establish strong global networks and access resources at competitive pricing. Around 90% of shippers witnessed an expansion in their customer base after partnering with a 3PL service provider. 

Gain a Competitive Advantage

It is imperative for businesses to not only cater to increasing customer demands but also respond efficiently to market fluctuations. A 3PL partner empowers businesses to become flexible by providing adequate resources to absorb the overhead costs. Outsourcing the logistics operations to a 3PL also enables businesses to leverage innovative technologies and scale operations effortlessly for enhanced customer satisfaction. 

Minimize Overall Delivery Costs

Last-mile delivery is, in fact, the costliest segment of the supply chain, taking up to 53% of the total costs. An AI-powered 3PL solution enables businesses to predict and reduce packaging rates via the right-size packaging technique. 

Partnering with a 3PL service provider also saves a significant amount of money on bulk packing supplies since they have access to discounted supplies. With a courier aggregator platform, enterprises can select 3PL partners providing the best rates and optimum services. 

How to Manage Multiple 3PLs Effortlessly?

To better serve the growing demands of the modern consumer, businesses are tying up with multiple 3PL providers to gain a competitive advantage. Apart from the added benefits of a streamlined delivery network, smooth logistics operations management, and reduced transportation costs, enterprises often wonder ‘How to manage multiple 3PLs hassle-free and ensure the supply chain flow does not get disrupted. 

This is where a courier aggregator enters the picture. New-age platforms such as Shipsy’s courier aggregator platform empowers businesses to seamlessly interact with numerous delivery partners and manage multiple 3PLs via a unified interface.

We have listed numerous pointers below on how to manage multiple 3PL providers without a hitch by leveraging Shipsy’s state-of-the-art courier aggregator platform. 

Unified Dashboard

Carrying out faster and safer deliveries at affordable rates are imperative for brands to sustain in a competitive D2C network. Business users can now integrate the existing ERP systems and easily connect with all the vendors on a single platform. 

Robust courier aggregator solutions also enable the deployment of unified API and portal-based shipping label printing for quick carrier onboarding. Moreover, collaboration with internal teams becomes transparent with access to live status updates across carriers in a standardized format. 

AI-Based Allocation Engine

There have been numerous instances where the increase in order demand has resulted in businesses failing to meet expectations and losing a massive chunk of the customer base. Courier aggregator platforms leverage smart allocation features to book the right 3PL based on various parameters. 

The intelligent solutions deploy AI-enabled allocation to assign shipments to the best carrier based on location, pricing, performance, COD, order value, and more. 

Operational Transparency

Real-time tracking of orders is imperative for enterprises to guarantee the uninterrupted flow of an efficient business operation. A courier aggregator solution leverages geo-fencing capabilities and helps managers gain a transparent view of delivery operations. 

Moreover, instant notifications are also shared with the concerned stakeholders like managers, 3PLs, and the customer to ensure no one misses out on crucial delivery milestones. In this manner, businesses can significantly tackle fake delivery attempts and potential fraud from riders. 

Collaboration With Multiple 3PLs Under One Roof

A courier aggregator platform enables business users to manage multiple 3PLs for hassle-free pick-up and delivery via a unified dashboard. Enterprises can track and allot multi-drop routes and choose the best 3PL according to their needs. 

The smart solution also provides detailed analytics of each activity associated with the delivery process. So, selecting a service provider for each assignment will be backed by data-driven rich insights. 

Real-Time Order Tracking

Businesses need to have a real-time view of the ground operations to ensure the successful delivery of items at the customer’s doorstep. Intelligent courier aggregator software comes with geo-fencing capabilities, enabling managers to monitor riders on the go. 

Business users also get access to a centralized tracking dashboard to receive live updates across carriers in a standardized format. Once the order is out for delivery, quick links are instantly shared with customers for real-time tracking and to keep them updated on the ETA.

Analyzing Customer Feedback

Businesses that are aiming to scale their operations and become customer-centric must be able to respond to customer grievances promptly at all times. Customers must be kept in the loop with real-time tracking links and regular updates for enhanced CX. 

Smart courier aggregator platforms enable brands to verify delivery success and failure rates by allowing buyers to raise instant alerts in case of any discrepancy. In case of failed or missed deliveries, retailers can verify the reason given by the rider by communicating with the customer via IVR call/WhatsApp/SMS. The new-age solution also provides a centralized dashboard for VOC (Voice of Customer) analytics and delivery of CSAT computation. 

Partner with Shipsy and Manage your 3PL Partners with a Seamless, Smart, and Cost-Effective Approach

Shipsy’s courier aggregator platform is a modern solution for modern enterprises looking to scale business operations and expand their reach beyond international boundaries. With our smart platform, retailers can seamlessly manage multiple 3PL partners at once and select the best courier based on critical factors such as location, price, COD, order value, returns management, etc. 

Enterprises can now share live updates and ETA with the customer as soon as the order is placed, significantly reducing any fake delivery attempts/RTOs and ensuring customer delight. Now businesses can be free from cost and labor-intensive 3PL management with Shipsy’s courier management platform. 

  •  64% increase in customer satisfaction
  • 26% increase in delivery NPS
  • 18% reduction in shipment returns
  • 28% reduction in customer complaints

Connect with our experts today for a custom demo to know the manifold benefits of Shipsy’s courier aggregator platform or to get started with the leading 3PL management platform.

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