3PL software helps businesses fulfill their orders accurately and efficiently. Gone are the days when order fulfillment used to take months from the warehouse to the customers. In the past, businesses had to receive orders from customers and use their means to deliver the goods, which would take days to arrive. The fulfillment rate was low, and customers were dissatisfied, especially when businesses delivered the wrong goods.
However, 3PL software emerged and eased the fulfillment process. Having the right 3PL software in your business ensures order fulfillment from the warehouse to the final destination is as swift as possible.
How 3PL software works
The complex nature of warehousing calls for proper and automated logistic management. That’s why the success of your business depends on a reliable 3PL. A sound system will optimize efficiency, real-time product tracking, visibility, and data visualization for better communication.
Essentially, 3PL software provides a customized end-to-end order fulfillment system between your business and your customers. An effective 3PL software should capture all the details of your operations from warehousing, dispatch, and delivery. The software should also have multiple functions to track every point of an order, such as customer details when ordering, invoicing, billing, and delivery.
How much does a 3PL software cost?
Perhaps you’re interested in using custom 3PL software to help run your warehouse’s logistics. The cost of 3PL software depends on the functions and capabilities. In other words, the more functions integrated, the more costly it is. Fortunately, there are many 3PL software developers in the market, and they price their software differently based on purpose and industry.
Despite the differences between 3PL software, they share more or less the same features across all industries. Standard 3PL software suitable for warehouse operations must have these 11 basic elements:
- Workforce management
- Production shelf life
- Kitting
- Barcoding
- Tracking
- Reporting
- Billing
- Recalls
- Useful third-party plugins
- Real-time data tracking
- Order management
The average subscription plan for the best 3PL WMS with these basic functions costs hundreds of dollars per month. However, the price can go higher depending on the complexity of your warehouse operations.
For highly complex WMS software programs the subscriptions are thousands of dollars per month and are designed to address the complex needs of your organization. These 3PL software have custom-built intelligent algorithms designed to solve complex operations, provide market analytics, and even predict market trends based on input data.
Benefits of 3PL software
The importance of having robust 3PL software for your warehouse can never be overemphasized. Here are the benefits of having a 3PL to manage your warehouse operations:
Saves time through automation
3PL software integrates and automates every aspect of the supply chain, saving the provider and client time. The system provides an easy way to track and monitor payments automatically, generate invoices, create financial reports, and issue invoices from several databases instead of spreadsheets. You can even integrate e-commerce plugins such as Shopify and Amazon to improve your customer experience and order fulfillment rates.
Minimizes errors
There’s always a risk of error when handling different stages of order fulfillment manually. The order details can change when a product or service passes through many hands in your warehouse. However, the 3PL system allows proper and accurate storage of order information for retrieval and future use. Therefore, integrating 3PL software in your warehouse operations will save you thousands of dollars in manual input errors and give you peace of mind.
Enables seamless scaling of business operations
As your business grows, it’s always better to respond to consumer needs in the marketplace. Unfortunately, manual systems respond slowly to changes in the industry. The remarkable thing about 3PL systems is that they can meet the evolving needs of your warehouse operations.
Moreover, you can also scale the system to serve even more functions.
Improves customer relations
Your business thrives on customer relations, and integrating 3PL software can make your clients happier. The system provides a closed loop or system designed to make your work easier while ensuring you satisfy your customers with your services.
Furthermore, 3PL software provides an end-to-end solution by capturing order details from when customers send their orders. It also tracks the product moving from the warehouse to the delivery point. Staying in the know about a product’s whereabouts is crucial for every customer. 3PL software can also allow customers to choose their desired delivery method and period based on cost.
Gives insight into your operations
As a business owner, you must reflect on the progress and milestones of your projects. Reflection and internal assessment will help you understand if your business is growing. Although you can also generate these insights manually, a 3PL system can do it faster. An excellent 3PL software should allow you to run system analytics and get a report that gives insight into business operations at any given moment.
Increases Transparency
As your business grows, it can be hectic to track the operations in all departments of your warehouse. However, 3PL software coordinates all departments from HR billing and customer information. This information helps you understand all the processes in your warehouse clearly. You can address any weaknesses early enough before they spiral out of proportion.
Conclusion
3PL software is a better approach to order fulfillment in the logistics and warehouse industry. Manual systems are prone to human error, and it’s difficult to track the progress of your warehouse operations. On the other hand, the integrated 3PL software gives you a holistic picture of your warehouse operations to help you rectify any problems in time. The crucial thing about 3PL software in the industry is that they come at different monthly subscription price tags. You can indeed find the best system for your budget to save you from the hassle of running manual operations.
References
3PL Central. “3PL Central Launches Fifth Annual State of the Third-Party Logistics Industry Report.” January 18, 2022. https://www.globenewswire.com/en/news-release/2022/01/18/2368780/0/en/3PL-Central-Launches-Fifth-Annual-State-of-the-Third-Party-Logistics-Industry-Report.html.
Businesswire. “MAVES Announces Release of Visible Logistics 3PL Warehouse & Transportation Management System.” January 14, 2011. https://www.businesswire.com/news/home/20110114005028/en/MAVES-Announces-Release-of-Visible-Logistics%E2%84%A2-3PL-Warehouse-Transportation-Management-System.
Future Market Insights. “3PL Software Market to Reach US$ 2.3 Bn by 2032 – Future Market Insights, Inc.” PR Newswire, June 7, 2022. https://www.prnewswire.com/news-releases/3pl-software-market-to-reach-us-2-3-bn-by-2032-future-market-insights-inc-301562936.html.
Hayes, John. “Supply Chain Disruptions Hit Warehouses, 3PLs, and Manufacturing,” in Forbes Business Development Council. Forbes, December 1, 2021. https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2021/12/01/supply-chain-disruptions-hit-warehouses-3pls-and-manufacturing/?sh=659cddc62ea2.
