What are the Advantages of 3PL for Order Fulfillment?

Logistics Tech Outlook | Tuesday, December 01, 2020

The e-commerce companies can use a technology-based 3PL order fulfillment strategy to efficiently manage their supply chain.

FREMONT, CA: The third-party logistics providers (3PL) can be an effective strategy for e-commerce organizations to manage supply chain logistics efficiently. Today, instant gratification speed has increased due to which the customers want real-time updates, standardized two-day shipping, and on-demand package tracking. The sellers require instant insights, analytics, and data to fulfill the customer requirement. The traditional warehouse and transportation service model are not enough for managing innovative problems.

Modern 3PLs must implement technology and progress to keep up. In most of the situation, the sellers are shifting towards the technology-based 3PLs for logistics services to stay on top of the increasing consumer demands and customer expectations.

What is 3PL order fulfillment software?

The order fulfillment software is defined as a cloud-based system that assists a 3PL in automating supply management, transportation management, shipping, inventory management, and warehouse management with the capability to track orders and sales. The fulfillment software can combine with other software systems such as sellers’ online storefront to streamline information flow.

The fulfillment software can directly connect with the 3PL’s warehoused and fulfillment systems, allowing real-time information like inventory levels, value information, and tracking.

How does a technology-focused 3PL help sellers?

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1. Save Time by Automating Processes

The fulfillment software can remove the step entirely for the sellers instead of manually entering and sending orders to 3PL every day. As the 3PL’s software can combine directly with the online storefronts, the warehouse where the products are located can be automatically alerted whenever the order comes.

It also becomes easy to document every fulfillment step and update in real-time, due to which the status of every order can be tracked and viewed by the seller when it goes through picking, shipping, and packaging. It also increases the supply chain visibility to search for particular orders, allowing the sellers to manage inventory and sales efficiently.


2. Drive Down Fulfillment Costs

The fulfillment procedure can also be the best way to save money on shipping expenses. The 3PL can negotiate a discounted shipping rate based on the size and volume, but the expense can be decreased by reducing the distance that the packages have to travel.

Applying this process requires dividing the inventory across several fulfillment centers to ship from the warehouses nearest to the customers. The fulfillment software can also utilize historical data to get better guidance in strategically distributing inventory.

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