A technology-enabled 3PL is a technology company, which has developed streamlined fulfillment and shipping solutions for ecommerce businesses. In addition to fulfillment services like warehousing, online picking lists, packaging, and shipping, they offer software that integrates data from multiple sources to give absolute visibility into the lifecycle of an order.
FREMONT, CA: Third-Party Logistics (3PL) providers have an ancient history of providing services to run the supply chain better. However, conventional transportation and warehouse management services are no longer enough in a world where same-day deliveries, on-demand package tracking, and real-time insights are expected.
Modern 3PLs have developed their services and integrated technology to keep up with consumer requirements. Similarly, online merchants are turning to technology-enabled 3PLs to vie with the big retailers. A technology-enabled 3PL is a technology company, which has developed streamlined fulfillment and shipping solutions for eCommerce businesses. In addition to fulfillment services like warehousing, online picking lists, packaging, and shipping, they offer software that integrates data from multiple sources to give absolute visibility into the lifecycle of an order.
The 3PL’s software influences the company’s network of warehouses and sends vital information back to the merchant. The overlap of logistics and technology offers an end-to-end supply chain fulfillment solution.
The Use of Technology-Enabled Third-Party Logistics Provider
Below are the top benefits recognized by ecommerce businesses when they outsource fulfillment to a technology-first 3PL.
1. Save Time and Mechanize Processes
Furthermore, each step is documented and updated in real-time, so one can view the status of each order as it moves from picking to packing, until shipping. Fulfillment software is also tied and integrated with other steps of the overall process. This automation translates into downstream efficiencies, from restructuring inventory when product levels are running low to handling returns. In addition to saving time for the business, the process also gets deliveries to customers quicker.
2. Drive Down Fulfillment Costs and Gain Intelligence
When it comes to fulfillment, one of the significant opportunities for firms is to save money on shipping costs. Besides, the discounted shipping rates a 3PL negotiates with carriers, one can also reduce shipping costs by dropping the distance packages travel.
To achieve this, organizations can split inventory across fulfillment centers to ship orders out from warehouses that are closer to their customers. Fulfillment software uses past data to offer insights into how and where one should tactically distribute the inventory.
Businesses can also eliminate presumption and drive more effective supply chain decisions with enhanced analytics. They can also utilize built-in metrics like peak fulfillment times, sales by channel, purchases, and orders through the USPS zone, the revenue of orders shipped by day, and others. The constant data collection and reporting become more potent over time as one builds up more order history.
3. Advance Customer Service and Meet Expectations
By integrating technology into the ecommerce fulfillment process, businesses gain a comprehensive view of the order; from the minute it is placed online to the moment it is delivered to the customer’s doorstep.
When customers ask any questions, organizations can confidently answer them from anywhere using the latest information. The instance helps them ensure greater precision, consistency, and transparency in service.
A technology-enabled 3PL also helps firms provide prime service that is expected by consumers these days. For organizations, without assistance from technology, same-day or two-day delivery is not possible. To offer the quick turnaround that the customers need, one needs to optimize where they store and ship out inventory.
3PL providers can also help organizations distribute-list to the warehouses closest to where the customers reside. So, every time an order is placed, algorithms in the software mechanically select the warehouse and carrier, which can ship the order to the customer most competently and cost-effectively.
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