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Benny Joseph

Allbirds

Benny Joseph

Fulfillment

How 3PL Management Software Can Help Save Costs With Fulfillment

Scaling your business is easier than ever before with a third-party logistics (3PL) provider. Learn more about the benefits of 3PL management software.


Have you exceeded your current capabilities and need to scale swiftly in order to satisfy order quantity, client demands, and overall quality standards?

Scaling your company can be just as difficult as starting it from the ground up. Workforce concerns, warehousing for all of your products, distribution and fulfillment costs, and more are all factors to consider. Luckily, scaling your business is easier than ever before with the help of a third-party logistics (3PL) provider.

The notion that hundreds of businesses use third-party logistics providers or 3PLs, is proof of their efficiency. 3PL fulfillment services help companies of all sizes, and they are a great way to grow. 

Okay, but now you might ask yourself:

What is 3PL software? 

A third-party logistics provider (or 3PL) is a company that oversees the distribution of items to customers' doorsteps. Outsourced supply chain operations including transportation and warehousing are managed by third-party logistics software. In other words, companies that do not want to run their own warehouses or truck fleets can hire third-party companies to do it for them.

Let’s start with the top 3 reasons to outsource your logistics

There are a lot of benefits of 3PLs, but these are the most considerable in our opinion:

1. Cost Savings

You can avoid the need to own or rent warehouse space, logistical operations, staff, and technology for in-house fulfillment by partnering with a 3PL. With the appropriate 3rd-party logistics software, companies can save money on fuel expenses, vehicle maintenance, cost per delivery, and more. 

2. Time Savings

By automating and integrating various components of their supply chain operations, 3PLs can save time. Invoices and driver payments, for example, may be computed automatically, saving back-end personnel time from manually creating invoices and reports.

3. Improved Accuracy

Handling various steps of the order fulfillment process by hand leads to more mistakes. This is because people are, to put it bluntly, imperfect. Your last-mile delivery system, on the other hand, can ingest, store, and analyze data in one place without the need for human interaction, allowing users to get the information they need faster and more accurately

How 3PL fulfillment companies operate

A 3PL company's services include more than simply shipping and distribution; they can focus on different aspects of your business. Product procurement, freight delivery, and other factors are the focus of third-party logistics organizations.

A third-party logistics company handles all customers fulfillment logistics so you can run your business. That is why it is critical to employ a 3PL company and manage your supply chain efficiently.

Nowadays there are many different 3PL software logistics solutions, but how do you choose the right one for your business?

So, what are the features of an efficient 3PL provider? 

Transportation Savvy

It goes without saying that transportation is complicated since it involves a variety of modes, several speed and timing alternatives, and a range of quality and service levels. Shipping companies are aware of the complexities, but an experienced 3PL will have a better understanding. Logistics providers have worked with a number of clients delivering numerous items, so they'll be able to spot patterns, best practices, and inefficiencies that a single business owner could miss. 

Transparency

A third-party logistics provider can help your supply chain run more smoothly by providing you with a real-time perspective of the numerous moving parts, their efficiency, difficulties, constraints, and more. You will be better equipped to make decisions for all elements of your supply chain if you have supply chain transparency. 

Your 3PL will have data and real-time updates on where your product is, when it's being packaged and shipped, and when it reaches its destination since many aspects of your supply chain pass via their control. These data will provide you with the information you need to adjust or update your supply chain operations as needed in order to increase efficiency.

Specifications of the Industry

A qualified third-party logistics provider will assist you in better understanding your unique requirements and matching them to the appropriate supply chain resources.

Although it is beneficial, a 3PL does not need to be well-versed in the inner workings of your sector. What counts most in your partnership with a 3PL is how effectively they can provide insight into your specific supply chain and advise you on how to maximize it to provide you a competitive advantage.

Final Thoughts

When deciding whether to outsource or maintain your logistics operations in-house, there are numerous factors to consider. It's a difficult choice, but the sooner you make it, the easier it will be to expand your business. Remember that 3PL benefits go far beyond the list we included in the article.

Nothing hampers growth more than waiting until there are problems filling orders on schedule and then attempting to adopt a solution while under pressure.

A third-party logistics provider can assist you in remaining competitive in the marketplace.  

How ChannelApe Can Help 

ChannelApe provides a lot of benefits, one of which is access to a global 3PL network with hundreds of warehouse companies. And, coupled with our inventory and order management software, you can send the appropriate SKUs at the right time from the right fulfillment location. What's the outcome? Conversions are up, consumers are truly happy, and expenses are down. ChannelApe can help you fulfill like the best, whether your fulfillment locations are 3PL, owned warehouse, and/or retail stores.

Check out all services and offers of ChannelApe.

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The definitive guide to 3PL.

Learn all about third-party logistics. And get the information and insights you need to make better-informed decisions for your business. 



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