Are you a 3PL company that’s looking for ways to increase efficiencies, reduce costs and provide better customer service? To be successful, you’ll need to grapple with the challenges presented by today’s rapidly evolving business environment. Not to mention that complicated and changing regulatory requirements can also make it difficult for your business to thrive. The good news is that there are several ways that advanced 3PL software can help your business stay competitive in several different industries.
Did you know that a 3rd party logistics (3PL) software is a great tool to increase efficiency, lower costs, and speed up the time to market? A 3PL software lets you track inventory and better understand your supply chain.
In the quick-paced world of business, it can become difficult to keep track of everyone and everything. That’s why you rely on your 3PL to help you manage your assets and supplies in their entirety. To help ensure that the 3PL you choose follows the same high standards you’d expect from your company, we’ve created this handy guide for assessing the services a 3PL can provide for your business.
Learn how 3PL software can make all the difference for your business
The third-party logistics (3PL) industry is booming. In fact, according to IBISWorld, it’s one of the fastest-growing segments in the supply chain. The size and scope of this market are impressive: the global 3PL industry generated $350 billion in 2015, and it’s expected to grow at an annual rate of 6% through 2020.
This growth has been driven by several factors. One is an increase in demand for products that can’t be manufactured locally or in-house. Many companies want their products delivered as close as possible to their customers’ doors — so they can provide better customer service and lower delivery costs.
Another factor is globalization — particularly in emerging markets where customers want access to more products from around the world. This trend has led manufacturers to outsource their manufacturing operations or offshore production altogether to reap the benefits of scale and economies of scale.
At the same time, however, many companies are realizing they need more than just cheaper shipping options when it comes time to ship their wares overseas — they also need effective logistics to support services like 3PLs who can help with customs compliance issues, transport delays, and more.
Why do companies use 3PL software?
There are several reasons why companies use 3PL software. First, it helps with the purchasing process. Companies can use 3PL software to ensure they have the right products at the right time, so they can save money and avoid late deliveries. Second, it helps with inventory management. If a company uses 3PL software and has multiple warehouses, it can be difficult for them to keep track of inventory across different locations and still make sure that their inventory is always accurate. Thirdly, using 3PL software helps companies stay competitive with other retailers by allowing them to take advantage of economies of scale to reduce their costs as much as possible.
On top of these benefits, using 3PL software will also help companies attract new clients and increase their overall sales volume.
The use of 3PL software is increasing as companies look to reduce the number of items they have to ship and move them instead to a third-party company.
Companies use 3PL software to:
Manage all their shipments in one place, including freight, handling, and storage.
Track their inventory and delivery orders, including whether an order was filled or not.
Streamline their supply chain operations by consolidating multiple deliveries into one order for fulfillment.
The benefits of using a 3PL management system
The ability to maximize your company’s business potential. A 3PL can take advantage of the full range of logistics services and capabilities that are available, while you focus on your core business.
A cost-effective way to grow your business. By outsourcing your logistics needs and shifting some of the burdens onto the 3PL, you have more time and resources to focus on other areas of your company.
Reduced risk for both parties involved in moving goods. A 3PL management system will help protect both companies from potential liability issues by providing a clear contract outlining responsibilities as well as what each party is responsible for.
3PL software is used to manage the relationship between the third-party logistics provider and the customer. The 3PL software will help you to control all the tasks related to your business. It will also provide you with a single window to manage all your orders, invoices, payments, and shipping details.
This software will help in managing all aspects of your business from deliveries to payments and services. With this software, you can get instant access to all of your customers’ orders and shipments so that you can keep track of each one of them. You can also generate reports on what is happening with your sales and shipments in real-time.
All 3PL software has different features that are designed to suit the different needs of businesses. Some software provides simple yet effective reporting features while some others provide advanced features such as advanced reporting features or ERP-like functionality.