In the past, businesses had to manage their orders and inventory manually. The process was time-consuming and error-prone, from product receiving to packaging and shipping.
In fact, a report found that 99% of e-commerce businesses experienced delivery concerns. About 41% are delayed, and 39% are failed shipments. These problems not only affect customer satisfaction but also lead to lost revenue.
However, with the advent of technology, they’re no longer the case. Businesses can now use 3PL software to simplify their order fulfillment process.
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What is 3PL Software?
Third-party logistics (3PL) software is an innovative technology that helps companies manage their orders, inventory, and so on. It can be a valuable tool for entrepreneurs like you, as it offers comprehensive solutions for streamlining your business operations.
According to research, the global 3PL technology market is expected to reach USD$1.24 billion at a compound annual growth rate of 6.4% during the forecasted period, 2022-2032. This figure shows the software’s potential and how it can benefit businesses of all sizes.
Benefits of using 3PL Software
Once you start using 3PL software, you’ll reap the following benefits:
1. Enhanced Efficiency and Productivity
Every company juggles various tasks, including order picking, packing, and shipping. Performing such tasks can be daunting, especially if you don’t have an efficient system at your disposal. And without a system in place, you might make mistakes that may lead to disruptions in your workflow.
3PL software can lessen the burden of managing your logistics since it streamlines your order fulfillment process. For example, the system can retrieve the necessary information from your e-commerce platform and generate pick tickets or lists for your staff. This way, your team members can quickly select the right items and prepare them for shipping.
2. Improved Accuracy
Did you know that order fulfillment inaccuracy is one of the primary reasons for customer dissatisfaction? While achieving a 100% accuracy rate may be challenging, it’s still something that you should strive for. Most leading companies aim to maintain their order accuracy rate of 96% to 98%. After all, even a minor mistake can significantly impact your business.
3PL technology can automate your fulfillment method and help reduce the chances of human error. The barcode scanning feature, for instance, can accurately identify products that need to be shipped. This, in turn, can keep you from sending the wrong items to your customers.
3. Real-Time Data Tracking
Another benefit of using a 3PL system is that it offers real-time data tracking, which is crucial since it lets you monitor your inventory levels and see which items are running low. The system can send alerts automatically when your inventory levels reach a certain point, allowing you to reorder the necessary products and avoid stockouts.
You can also track your orders and see which ones are still pending and which have been shipped. By monitoring them, you can keep tabs on your fulfillment process and ensure that your customers receive their orders on time.
4. Increased Scalability
Scalability is essential for businesses, as it enables them to accommodate growth. However, it can be challenging if you utilize manual methods to manage your logistics. Because manual processes are often time-consuming and labor-intensive, they might not be able to keep up with the growing demands of your company. So, to gain a competitive edge, you need to make the switch and use an innovative system.
3PL software is designed to be scalable. It can easily adapt to the changing needs of your business. Whether you experience a sudden spike in orders or expand to a new market, it can help you handle your logistics with ease.
5. Higher Customer Satisfaction
Customer satisfaction should be one of your top priorities for your business. According to a study, delivering a superior customer experience can increase revenues by 2% to 7% and by 1% to 2% for profitability. Hence, it’s important to keep your customers happy. After all, they’re the rationale behind your business’ success.
One way to boost customer satisfaction is to improve your order fulfillment process. With 3PL software, you can get the orders right, ship them on time, and make sure customers receive items in good condition.
How to Choose the Best 3PL Software?
To choose the right provider for your business, you need to consider some factors:
- Ease of use: The software you choose should have a user-friendly interface that’s easy to navigate. Its features should be intuitive and straightforward as well so that you can use them without any trouble.
- Pricing: You want to get the most bang for your buck, so select a 3PL software that offers the best value for money. Compare the prices of different options and see which one includes great features at a reasonable price.
- Security: Check whether the software has robust security features to protect your data from cyber threats. You wouldn’t want confidential information to fall into the wrong hands.
- Customer support: Technical problems are inevitable. Look for a provider that offers 24/7 support, so you can seek assistance whenever you need it.
3PL software can be your best asset when it comes to logistics management. You’ll be surprised how this technology can take your business to the next level.