Third-party logistics (3PL) providers are there for shippers and carriers by providing services to better manage operational needs. Keeping that in mind, it is fair for shippers to expect their 3PLs to keep up with cutting-edge technologies and forward-thinking solutions that will help them improve their supply chains.
Your logistics partners should think of ways to easily enable the exchange of information between the varying organizations using varying operating systems. Modern 3PLs have evolved their services and incorporated technology to keep up with consumer demand. Here are a few reasons why a 3PL that focuses on its technological capabilities improves your shipping.
1. Save time and Optimize Processes
Innovative technology software can eliminate the need for you to manually enter and send orders to a 3PL every day. Warehouses can automatically be notified when a new order has been put in because a 3PL software technology can merge directly with online storefronts. This automation translates into downstream efficiencies, from reordering inventory when product levels are running low to handling returns. In addition to saving time for you and your business, it also gets deliveries to customers quicker. A 3PL company that uses quality technology enables you to improve time spent in planning, optimize inventory across multiple fulfillment sources, efficiently manage backorders and returns/exchanges, offer a variety of shipping options, ensure cost-effectiveness, and provide seamless service.
2. Drive down fulfillment costs and gain intelligence
One of the greatest opportunities to save money in the fulfillment process is to attain reasonable shipping costs. You can reduce shipping costs by streamlining a more equipped fulfillment center with advanced technology. Fulfillment centers need to ship orders out from warehouses, and this requires software that has gathered useful data. Data gives insights into how and where your inventory should be shipped.
You then have concrete evidence of how you can have a more effective supply chain. This evidence includes analytics and distribution metrics that share collections of specific order history. Third party logistic companies that have innovative technologies can customize your operations without exhausting labor, time, and warehouse facilities.
3. Reduce errors and increase transparency
Data entry is not free from errors and can happen to anyone. However, when handling large orders for many different clients, it would be appalling to risk unforeseen typos or wrongly entered information. Release yourself from the burden of sending your 3PL any order documents with errors and go through propriety tools that are worth investing in. Overall, a tech-focused 3PL eliminates duplication or human error when you go through systems that communicate with each other, which makes the shipping process automatic.
Additionally, connected technologies provide an extra level of transparency into the 3PL’s performance. Transparency allows sellers to manage inventory and process orders or returns when needed. There is accuracy in how to handle orders as a result of using a 3PL’s advanced technology.
4. Improve customer service and meet expectations
Lastly, you can feel confident in providing answers to any customer concerns with all of the information that you have access to because of a technology-focused 3PL. The information would be current, precise, and transparent for each party involved. You will be able to coordinate diverse types of delivery requirements with the help of a tech-focused 3PL company. Each time an order is placed, algorithms in the software automatically select the warehouse and carrier that can ship the order to your customer in the most efficient and cost-effective manner.
In conclusion, when shippers are not as technologically sophisticated, their growth and advancement is affected. In fact, if your 3PL is not investing in innovation and digital transformation, they are falling behind.
