What is 3PL software?
A business management solution designed specifically for third-party logistics organisations is known as 3PL software, or simply as “3PL” when referring to software used in business systems. 3PL software is used to handle the complete 3rd party logistics process, including sales and marketing, operations, and finance. The provision of effective logistics services to consumers is the primary focus of third-party logistics providers (3PLs). Customers of 3PL companies range from sole proprietorships to multinational conglomerates.
Key Features of 3PL Software Solutions
Here are some features of 3PL software solutions and how 3PL software can help you in your business.
1) Route optimization
By facilitating the efficient planning of multi-leg, multi-stop routes for their drivers and carriers, 3PL solutions help organisations manage their complicated shipping requirements. By taking into account numerous routing restrictions, including preferred time windows, cost, driver expertise, etc., effective software for 3PL providers helps satisfy tight delivery windows while exceeding customers’ requests. As a result, route optimization helps businesses save money on resources like gas, labour, and vehicle upkeep.
2) Real-time visibility
Dispatchers can’t see what drivers are up to with traditional transportation management and planning. There have always been delays and disturbances caused by the inability to share and translate data in real time between different transportation management systems. In comparison, a state-of-the-art 3PL solution provides dispatchers with constant updates on driver statuses, positions, estimated time of arrivals (ETAs), and any new info from the end client.
3) Integration
When information isn’t well-structured, it’s challenging to use it to make informed decisions. Business executives, managers, and dispatchers have access to vital but separate data sets thanks to incompatible legacy technologies. These days, a 3PL solution is not complete without a centralized system that receives data from several sources and consolidates it into a single repository from which employees and external parties like carriers and shippers can pull the information they need.
4) Scalability
As their businesses have expanded beyond the capabilities of their in-house logistics departments, many companies are turning to outside vendors to fulfil these tasks. Prospective customers may worry about why they should rely on your business if you don’t offer scalable solutions.
5) Accurate Billing and invoicing
In the field of third-party logistics, slow and incorrect billing are regular issues. For this reason, it is crucial to track down a piece of software that has automated billing features in order to produce bills quickly and accurately.
Why should you use a 3PL?
If you operate a business, you know how crucial it is to maximise productivity. Logistics that are not managed by a third-party logistics provider waste time and resources. Learn more about how 3PL can improve your company’s productivity:
1) Real-time accuracy
If you work with a 3PL, you can rest assured that all relevant parties will have access to up-to-the-minute information regarding stock levels, product movement, and shipping status. Having prompt answers to consumer questions makes it more customer-centric. Third-party logistics providers (3PLs) can give logistics providers access to up-to-date, correct product information, which boosts customer satisfaction and reduces operational expenses.
2) Integration and customization
The software in 3PL systems is highly adaptable. In addition to its scalability and adaptability, it is compatible with a wide variety of third-party applications, including ERP (enterprise resource planning) systems used for inventory and accounting and WMS.
3) Cost savings
With the appropriate 3PL tool, businesses can cut costs across the board, including gasoline, vehicle maintenance, cost per delivery, and more. One way in which this is achieved is through route optimization, which uses data to determine the most efficient routes and so reduces time and money spent on travel. Having complete oversight also aids in exception management, which is crucial in cutting down on the expense of delivery failures.
4) Time savings through automation
Automation and integration of the supply chain’s many moving parts can help shippers, and 3PLs save time. For instance, back-end staff can save time by not having to manually generate invoices and reports, and driver compensation can be calculated automatically. Automation is significantly bolstered by its ability to integrate with other fixes.
5) Improved accuracy
When different parts of processing an order have to be handled by hand, the likelihood of making a mistake increases. Simply explained, it’s because people make mistakes. Your last-mile delivery system, on the other hand, can automatically take in data from multiple sources, store it in a centralized location, and analyze it without any user intervention to provide users with faster and more accurate access to the data they require.
6) Flexibility
The adaptability of a business increases with the help of NVOCC software, notably if it can be tailored to the specific requirements of the company. For example, in route optimization, you can produce routes that fit your demands by selecting your own restrictions that the solution takes into account when identifying the optimal routes. You can then dynamically re-optimize your courses based on your business goals and react quickly to changes thanks to your solid basis.
Conclusion
Now that you know what 3PL solutions are, you can decide whether they are right for your business. Picking the right logistics software solutions can be complicated. To achieve success, you will need to select the right software provider. In this article, we have outlined the top features of 3PL software solutions and how 3PL software can help you, so you can make an informed decision when it comes time to choose the right solution for your needs.