Fulfillment Operations

How to Select 3PL Software: A Comprehensive Guide

Any professional logistics company understands the dynamic nature of the eCommerce market. The seamlessness of your supply chain processes depends on how well your 3PL partners are involved in the packing and picking operations. 

Speed and accuracy play critical roles in fulfilling the demands of your buyers, and hence, navigating through the various complexities is essential. In today’s e-commerce landscape, challenges, and opportunities, these nuances can open up a world full of potential for 3PL companies. 

This detailed guide will be your roadmap to understanding all about 3PL software and how it can benefit your supply chain processes and workflows. 

3PL Software: About

The order fulfillment process is crucial to any business as it is directly responsible for determining the profits of a business, the reliability of a brand, and the efficiency of the business’s operations. To simply eliminate the complexities that arise in order fulfillment, inventory, warehouse management, and the doorstep-delivery transportation processes, 3PL software plays a key role. 

3PL software is a package of different modules encompassing different functionalities that can simplify several manual tasks via automation in order completion, warehouse and inventory management processes, etc. Furthermore, this software is capable of providing clear insights into inventory levels and delivery updates while facilitating proficient administration processes. 3PL software is well-equipped to monitor the complete lifecycle of a specific order.

Features of 3PL Software

A reliable 3PL software must have the following features:

  • Continuous improvement through regular software upgrades: 3PL software should be up-to-date and equipped with the latest advancements in tracking, monitoring, and forecasting. Although using such advanced software can be expensive, these will help you yield largely in the long run as they will always be accurate and help you optimise your processes continuously. Moreover, it will enable you to save on human and financial resources in the long run.
  • Collaboration and integration: To establish streamlined and efficient work processes, improving your warehouse and inventory activities is essential. Thus, choosing 3PL software that easily integrates with the ecosystems of your business is a must. The software should be able to collaborate and function efficiently with your CRM, ERP, and account management systems. It allows you to harmonise all your processes, both in-store and online.
  • Ease of use and on-boarding: A 3PL software must never compromise the acquisition of new buyers. The software must be capable of minimising the probable errors and misunderstandings during customer onboarding and enabling prompt deliveries to generate greater revenue.
  • Packaging and labelling: Packaging and labelling adhere to specific regulations that concern any product. These cannot be compromised, as they affect your customers’ overall purchasing experience. When choosing a 3PL partner and their software, prioritize compliance with regulations and the elimination of potential complications.
  • Invoice generation and report making: The reverse logistics, invoicing, and reporting are features that you must think of while choosing 3PL software. These are the areas where you can eliminate manual work and automate the processes. You can not just save time but also improve accuracy and efficiency by using 3PL software for these tasks.
  • Business-specific functions and tracking and monitoring capabilities: If you handle perishable items like food, you need specialized inventory capabilities and facilities in your warehouse for effective control. This will improve your picking process to avoid any losses due to expiration.
  • Customer Support: A 3PL software must offer a customer support team that is active and available at all times. It enables an efficient workflow and better customer experience.

How Does 3PL Software Benefit eCommerce Brands?

A strong return on investment is what any eCommerce firm strives for. Businesses can improve their brand’s reputation and guarantee effective order fulfillment by working with 3PL companies. Here are some of the major benefits of employing 3PL software:

  • Error minimisation: Any 3PL software employs different automation techniques to eliminate errors. When you rely on manual execution for different areas of the order completion process, the number of errors is likely to rise. Through access to real-time data and automation, 3PL software circumvents any sort of manual intervention. It is a proactive approach to avoiding mistakes that can be unexpected.
  • Cost-effective solution: Teaming up with a 3PL can be a cost-effective solution. It takes care of all the critical operations that are associated with eCommerce businesses, like packing, shipping, inventory management, warehouse management, and more.
  • Keeping up with technology: 3PL partners use the latest technology solutions to help you efficiently manage your processes. By outsourcing your work, you can easily avoid making large investments in these sectors..
  • Better reach: Your audiences will no longer be limited to a fixed range through 3PL partners. They will help you improve your reach and target different markets that have demand for your products. With 3PL partners having warehouses in various locations, you gain access to larger markets.
    Outsourcing to a 3PL allows you to focus all your energy on optimizing your eCommerce business.Better reach: Your audiences will no longer be limited to a fixed range through 3PL partners. They will help you improve your reach and target different markets that have demand for your products. With 3PL partners having warehouses in various locations, you gain access to larger markets.
  • Risk reduction: There will be a lower risk of incorrect deliveries through trained resources available through a 3PL firm. Fulfilling your order more quickly and efficiently will substantially reduce the risk.
  • Quick, efficient, and time-saving: By outsourcing your operations to a 3PL, you can invest all your energies in how your eCommerce business functions. You can pay more attention to your production, marketing, sales, and design sectors. It allows you to save time and expand your business in a short time.

The benefits that come with 3PL logistics are immense. It has been growing at a rapid pace over the years. A survey shows that the 3PL market was valued at 1.3 trillion dollars in 2021. It is growing quickly at a rate of 8.8% from 2022 and will continue to do so at least until the year 2031. It is most likely that the value of the 3Pl market will reach approximately 2.8 trillion dollars by the end of 2031.

The substantial rise of international trade due to globalisation has led to flushing trends in the 3PL world. However, the poor control of logistics by the manufacturers, combined with bad logistics infrastructure, can hinder the growth of this industry. The erratic market conditions and betterment of the global economy are crucial to driving globalisation. Thus, trade-oriented activities are likely to increase with globalisation. The development of trade areas overseas is a significant factor in the growth of the logistics industry. 

The integration of IT solutions in the 3PL sector has greatly increased its popularity, ensuring a smooth and efficient supply chain process.. This, in turn, has enhanced the economic value of the 3PL world.  

Conclusion

Employing 3PL software is extremely beneficial, regardless of whether you’re a direct-to-consumer brand or work in the B2B eCommerce space. While it requires a significant initial investment, the benefits can deliver a strong ROI and accelerate your business growth.

The ability to master the art of balancing picking, warehouse and inventory processes, packing, and transporting is time-consuming and expensive. By outsourcing these processes, you can easily navigate through the complexities of your business processes. 

A good 3PL software must be equipped with the best technology and subjected to continuous improvement. Besides, it should be flexible, scalable, and easily integrable. They can help you minimise errors and improve your overall work efficiency. Considering your business needs before selecting a 3PL partner is the right path to follow. 

What features should I look for in 3PL services?

Beyond shipping orders, your 3PL service provider should offer inventory management, inventory distribution, B2B and DTC fulfillment, returns management, international shipment, and reporting and analytics.

What is the difference between 3PL and 4PL?

A 3PL company will manage your everyday logistics activities, while a 4PL company manages the entire supply chain, including 3PL services.

What are the benefits of working with a 3PL service provider?

The main benefits of working with a 3PL service provider include cost efficiency, less time-consuming, fast shipment, improved customer satisfaction, and extensive global reach.

What are the types of 3PL?

The different types of 3PLs include full-service providers, 3PL warehouses, and transportation-based 3PLs.

How can I choose the right 3PL service provider?

When choosing a 3PL service provider, evaluate the logistics operations, compare the cost against your budget, ask about any hidden charges, check for integrations, and analyse their delivery service levels.

Akesh Kumari

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