Sendflex Parcel TMS Optimizes 3PL’s Control Over Margin Management

The growth of eCommerce has transformed final-mile delivery, challenging logistics managers with unprecedented levels of complexity. Diversified carrier networks, omni-channel distribution, complicated rating structures, and an explosion of surcharges have made it challenging to make intelligent decisions about how, when, and where to use carrier services and at what cost. Meanwhile, parcel costs are rising at more than twice the rate of inflation. The result? Margin erosion.

The complexity problem is especially acute in the 3PL industry, where margin management is a critical factor in providing competitive logistics services. WSI is one of the largest 3PLs in the United States, with a network of 32 facilities and over 13 million square feet of warehousing space. WSI built its reputation on delivering exceptional logistics services, but it needed a modern solution to maintain its competitive edge profitably. They turned to Sendflex for help. And Sendflex delivered.

WSI’s legacy shipping systems couldn’t keep pace with shipping cost complexity.

Like most 3PLs, the increased complexity of providing final mile services made it difficult for WSI to control the widening gap between expected shipping costs during the order fulfillment cycle and final shipping costs presented on carrier invoices. WSI’s outdated parcel shipping system was designed for one primary task in a much simpler era: printing and applying labels for multiple carriers in the last 100 feet of a conveyor. Automated decision-making required expensive, hard-coded business rule programming and long project timelines. Their legacy vendor quoted high professional services costs to integrate and exchange data with WSI’s new Manhattan WMS platform.

These challenges led to several issues:
• Long implementation project timelines, delayed time to benefit and revenue.
• High cost of ownership, lack of agility.
• Inability to easily adjust parcel “sell rates,” which negatively impacted sales.
• Inaccurate customer invoicing due to post-shipment carrier surcharges.
• Eroding margins due to widening gap between expected vs. actual carrier cost.
These obstacles undermined WSI’s ability to offer adaptive transportation and logistics services to their clients competitively, profitably, and efficiently. Recognizing the urgency of the situation, WSI engaged Sendflex, which proved to be a game-changer.

Sendflex Parcel Transportation Management System’s (TMS) cloud-native microservices architecture features automated decision intelligence capabilities at the speed of eCommerce. Rather than relying on programmers to implement business rules to make parcel management decisions, Sendflex shifts control to business users to create and modify carrier selection, cartonization, rate markup, data mapping, and customer preference rules. This means users like logistics managers can set up complex business rules in minutes instead of waiting weeks for custom programming.

For example, WSI easily implemented rules for hazmat shipments, which are now automatically routed to ground service, and for international shipments, which now automatically generate paperless commercial invoices based on the destination country. Using Sendflex no-code instructions, WSI can easily adjust buy/sell rate markups and choose billing accounts at a more granular level, ensuring better cost alignment and margin management.

Sendflex reduced WSI’s time to benefit with rapid Manhattan’s WMS integration.

As a Manhattan MVP partner, Sendflex was able to quickly get WSI up and running with Manhattan Associates’ WMS platform. That’s because Sendflex’s modern technology platform aligns with Manhattan’s microservices architecture and includes configurable data mapping features designed to adapt to more complex payloads. These capabilities resulted in faster time to benefit and reduced professional service costs.

“We needed a new, more reliable, and flexible parcel platform in place before peak season. Sendflex vastly exceeded our expectations. They had us up and running, integrated with Manhattan's WMS in 30 days,” said Peter Davis, VP & General Manager, WSI Fulfillment.

The impact of Sendflex’s parcel TMS implementation was immediate and profound. WSI saw significant improvements in its ability to quickly adapt to customer preferences, optimize carrier service selections, and scale operations during peak periods. The system’s reliability and responsiveness helped WSI regain control over margin management, directly addressing its previous challenges.

Sebastian West, VP of IT at WSI Fulfillment, highlighted the value of this partnership: “We have so much confidence in the Sendflex TMS platform and the people behind it. They are customer-focused and work hard to deliver results. Reliability and accountability are very important to us and our customers, and we know we can count on Sendflex to deliver.”

WSI’s ability to manage shipping margins is effectively future-proofed.

WSI’s journey with Sendflex underscores the importance of aligning technology with business needs in the fast-evolving world of eCommerce logistics. By leveraging a flexible, intelligent platform like Sendflex’s TMS, logistics providers can overcome the complexities of modern parcel management, control costs, and deliver superior value to their clients.

For businesses grappling with similar challenges, the WSI-Sendflex partnership serves as a powerful example of how the right technology can drive meaningful transformation. Whether it’s improving agility, optimizing costs, or enhancing customer satisfaction, Sendflex stands ready to help organizations achieve their goals and thrive in today’s competitive landscape.
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Bob Malley is CEO of Sendflex Technology. To learn more about their parcel TMS solutions visit https://www.sendflex.com/ or reach out directly bob.malley@sendflex.com.