How 3PL Logistics Software Will Benefit Your Business

Third-party logistics services (3PL) can help e-commerce businesses manage their supply chain logistics more efficiently. Customers want real-time updates and on-demand package tracking, standardized two-day (or less!) shipping, and merchants require instantaneous analytics, data, and insights to meet consumer needs in the  present lightning-speed age of instant gratification. This has stirred up the demand for 3PL logistics software in Canada since handling such data and workflows isn’t possible without robust automation. The conventional warehousing and transportation service paradigm are no longer sufficient to address these complex issues.


To stay current, modern 3PLs must embrace technology and develop their procedures. To keep up with rising consumer needs and expectations, sellers are increasingly turning to technology-focused 3PLs for logistical services. Here’s some insight into the positioning of software solutions for this particular business model:


So, What Is A 3PL

3PLs, at their most basic level, provide logistical services to assist some parts of shipping operations, occasionally all of them. 3PL providers are frequently included in a company’s storage and shipping processes.

3PLs can best suit your particular demands by scaling and personalizing services like adhering to special provisions required by the cold storage management system in terms of in-transit handling. It’s always up to you how much a 3PL can assist you with. A third-party logistics provider (third-party logistics provider, or 3PL) might offer a single service or a package of services that cover many parts of your supply chain. These services collaborate with you to ensure that all parts of the supply chain are visible.


How 3PL Logistics Software Can Help Your Canadian Company?

Here are six ways how 3PL logistics software can help your company:

1 Automate Processes to Save Time

Fulfillment software can eliminate the need for sellers to manually enter and transmit orders to a 3PL every day. Because a 3PL’s software system may link directly with online marketplaces, a new order is instantly informed to the warehouse where the items are stored.

Each order fulfillment step is documented and updated in real-time, allowing the seller to readily track and check the status of each order as it progresses through selecting packaging and shipping. This allows the seller to explore the supply chain for specific orders, better managing their inventory and sales.

Other phases in the order fulfillment process that may be automated with fulfillment software integration include restocking inventory, verifying product levels, and processing returns. This saves time and allows for faster delivery to consumers.

Stat Time: The 3pl business is expected to touch $1,691.86 billion by 2021 with a CAGR of 8.5% during the forecast period of 2021-28.



2 Cost-Cutting Initiatives

Third-party logistics companies specialize in logistics and, as a result, will have a larger network than your company’s supply chain. They will most likely have exclusive contacts in the logistics sector, have more negotiating power, and be able to give clients larger volume savings. All of these can help you save money on overhead.

You may also avoid making large infrastructure expenditures by collaborating with a 3PL supply chain management business, which can provide transportation, warehouse space, employees, and monitoring technology, among other things.

3 Gain Knowledge To Make Data-driven Decisions

When making future shipping and logistics choices, enhanced data supplied by fulfillment software may assist reduce guesswork. Customized data like revenue of orders dispatched by day, sales by channel, peak fulfillment hours, and sales and number of orders based on USPS zone may all assist a seller make better supply chain decisions. Any e-commerce firm seeking better logistics management can benefit from warehouse management systems (WMS) and transportation management systems (TMS).

More data is acquired over time by keeping with the same 3PL and fulfillment software, which may lead to more informed strategic decisions.

4 Errors Can Be Reduced

Data input mistakes are unavoidable when manually transferring orders from a seller to their 3PL. Even the tiniest mistake, such as a misspelled address or an erroneous SKU, might result in major issues. Customers may experience time-consuming, costly, and inconvenient exchanges, replacements, and refunds as a result of these.

Human mistake and order duplication may be reduced by using a technology-focused 3PL that automates this process by directly connecting systems.

These linked systems also give the vendor a clear picture of how their 3PL is functioning. It is possible to see the correctness of the 3PL as each step is taken by linking the fulfillment stages and supply chain operations.

5 Improve Customer Service Experience

The heart of why all of this is important is because a seamless order fulfillment procedure will keep your consumers satisfied. And fulfillment software may assist a seller get a full picture of the entire process so they can improve or keep doing what they’re doing well.

Because the 3PL’s technology provides the seller with the most up-to-date information, any consumer queries may be handled quickly and accurately. This allows for more consistency, accuracy, and transparency to be communicated to customers.

In the current Amazon Prime standard environment, a technology-focused 3PL may assist a seller in providing rapid and accurate customer service, which has been anticipated. Same-day or two-day delivery would be hard to do without technology.

6 Obtain Greater Adaptability And Scalability

The advantage of third-party logistics in supply chain management is that it allows businesses to use supply and distribution resources depending on current business demands with flexibility and scalability. When sales are sluggish, there are no duplicate investments or underutilized resources, and when demand spikes, businesses may scale up.

In Conclusion

Third-party logistics companies can give knowledge, assist with supply chain optimization, and help save time and money. Putting your shipping logistics in the hands of 3PL specialists may make a huge difference in the way your business runs and allow you to focus on enhancing your total value to consumers. To get more insights on how automation can help your business, feel free to contact PL Software Solutions now.