What are the Benefits of Using 3PL Software?
Warehouses can be complicated businesses to operate. There are many moving parts to manage to ensure customers receive the right product on time from keeping track of inventory, ordering, returns, and shipping. Outdated or even manual tools can make the management of your warehouse even more difficult.
Third-party logistics (3PL) software can help modernize your warehouse operations and grow your business, allowing you to support more brands and clients, without increasing headcount. This is more important than ever, as ecommerce and online shopping isn’t going away. In 2019, 3PL services made up more than $1 trillion (USD) of the market and continues to gain momentum as countries ease their way out of the global pandemic.
In this guide, we’ll explore:
- What is a 3PL?
- Key Benefits of Third Party Logistics Software
- Scale Operations
- Add Flexibility and Agility
- Increased Visibility into Operations
- How to Maximize the Benefits of 3PL Software
- How to Get Started with 3PL Software
What is a 3PL?
The term 3PL refers to “third-party logistics.” It is the practice of outsourcing the logistics of order fulfillment to another—third-party—company. If you are a company that sells products directly to customers or businesses, you might use a 3PL provider to store and ship your items for you.
3PL providers offer services in various areas related to management, procurement or fulfillment operations, including warehousing, inventory management; shipping, picking, and packing; order returns, and logistics.
Key Benefits of Third Party Logistics Software
Implementing third party logistics software into your warehouse operations provides many benefits for you and the brands you serve, including expanding your operations while decreasing costs, increasing flexibility in the services you provide, and having access to detailed reports and stats to improve your processes further and to serve your clients and customers better.
Time is money when it comes to ecommerce, and downtime can impact your bottom line. You need a 3PL system that is easy to implement and update as your business grows.
According to Adobe, analysts expected global ecommerce sales to reach $4.2 trillion in 2021, with U.S. consumers accounting for close to one-quarter of that spending. Additionally, predictions show ecommerce spending will top $1 trillion in the U.S. in 2022. With numbers like that, it’s imperative to bring your warehouse operations up to speed.
Users of our third party logistics software have seen a 40% increase in labor efficiency and an 8% decrease in shipping costs, while tripling the number of orders shipped in the first three months of use. Operating on a cloud-based system, you can be up and running in just four weeks, and you can add tools and customization with simple clicks, no coding required.
Transform your warehouse to a DTC fulfillment center
Add Flexibility and Agility
The continued growth of ecommerce and direct-to-consumer selling provides excellent opportunities for warehouse operators. But manual or outdated systems could leave you in your competitors’ dust.
Third-party logistics software helps increase your operating efficiency with solutions to manage inventory, packaging and shipping that you probably couldn’t manage independently.
In a recent study by the Organisation for Economic Co-operation and Development (OECD), 45% of U.S. businesses experienced disruptions in supply chains as a result of the COVID-19 pandemic. With flexible warehousing options as part of your 3PL software, you can scale up and down based on your clients’ needs, such as seasonal demands or other fluctuations.
Providing flexible warehousing can create a valuable inventory management solution for clients with shifting inventory requirements. When implemented successfully flexible warehousing can help you reduce costs, improve service, minimize risk, and enhance your competitive edge.
Increased Visibility into Operations
Implementing 3PL software into your warehouse operations will also increase visibility into your operations, thanks to an entirely cloud-based system. You’ll have access to insights in every step of the ecommerce fulfillment process, allowing you to make improvements and changes as required.
With the right third-party logistics system, you can manage your fulfillment center online and through mobile apps. Round-the-clock access to in-depth analytics, on-demand, monthly and year-end reporting gives you the ability to scale your services, grow your client base, and add new fulfillment centers with no additional headcount.
A quality WMS software for 3PL gives you increased visibility into your operations and can give your clients peace of mind with real-time insight into every order and shipping status within the Logiwa client portal.
When PackDash chose Logiwa as their 3PL system provider in 2020, they scaled up their daily shipments by 400% and added three to five new clients each week. The transition was made easier with 60-minute onboarding sessions in the fulfillment network and real-time access to PackDash warehouse agents and managers on client-specific Slack channels.
Explore the eight critical benefits of warehouse management system software implementation to help your business grow and serve your clients.
How to Maximize the Benefits of 3PL Software
Your 3PL system needs to make operating your warehouse easier and more efficient. With Logiwa, you have access to great features to make that happen, including:
- Digital warehousing: Run a fully digital 3PL fulfillment center with mobile apps, smart job batching, automation rules, real-time exception handling, and online reports.
- Connected ecommerce: Sell more with a fully integrated inventory management system that connects to more than 200 ecommerce, marketplaces, and order management systems.
- Smart shipping: Save time and money with our shipping software, enjoy price-optimized carrier selection, and auto-printed shipping labels that process orders to get them out the door faster.
- Total control: Update and extend your Logiwa system in minutes, not months. Create warehouse layouts, process orders, update automation rules, and bring a new fulfillment center online with clicks, not code.
How to Get Started with 3PL Software
An effective 3PL system is an investment in your business and will allow you to serve your clients better. It can help you grow your business and keep pace with the ever-increasing ecommerce marketplace without increasing your headcount.