Why Should You Partner With a Technology-Enabled 3PL
Third-party logistics has come a long way since the era of standalone warehouses and freight forwarding services to get goods from A to B.
As supply chains have grown more globalized and complex, 3PLs have evolved into offering more comprehensive end-to-end solutions, including inventory management, distribution, order processing, return management, and more. Cloud-based technology has enabled 3PLs to combine wraparound services with intuitive technology platforms. Customers can now track shipments, monitor inventory levels, and check facility performance – all from one interface.
Modern 3PLs are far more than logistics experts – they are enablers of scalable fulfillment and data-driven decision-making. It’s now possible to seamlessly outsource all of your logistics needs to a single partner, allowing you to get back to focusing on what your business does best.
But not every fulfillment partner. Some 3PLs have embraced cutting-edge technology more than others, making it important for businesses to do their research and understand what capabilities a potential partner has.
In this blog, we’ll cover why you should partner with a technology-enabled 3PL like ShippingTree – and the hidden costs of not doing so.
What is a technology-enabled 3PL?
A tech-enabled 3PL is a logistics provider that leverages its own in-house technology stack to simplify the fulfillment process and offer more operational visibility. By continually improving and investing in these technology solutions, a 3PL can pass robust cost and efficiency savings onto customers – and cultivate a true end-to-end logistics solution that streamlines every part of the supply chain.
What in-house fulfillment technology do 3PLs offer?
There is a huge spectrum of technology available at logistics providers, including but not limited to Warehouse Management Systems (WMS), Order Management Systems (OMS), automation, Artificial Intelligence (AI), and integrations with third-party software solutions, such as ERPs or return management platforms.
The in-house fulfillment technology offered at a particular 3PL will depend on several factors, including the fulfillment services they specialize in and how many facilities they operate. For example, a 3PL that focuses on rapid pick times will likely be leveraging in-house automation and robotics to make picking more efficient.
These technology investments make it possible to tailor a fulfillment operation to the specific needs of each client, rather than a one-size-fits-all system that faces difficulty scaling. This way, businesses no longer have to invest in setting up a private facility to stay competitive.
Challenges faced by traditional 3PLs
Despite the rapid integration of technology into third-party logistics, outsourced fulfillment still carries a reputation of being too ‘slow’ or ‘clunky’ for fast-growing eCommerce brands. Online shoppers are demanding ever-faster delivery timeframes, which has made it all the more important for eCommerce brands to streamline fulfillment as much as possible.
Yet traditional 3PL set-ups or ‘mom and pop’ warehouses have struggled in the face of globalized supply chains and the boom of eCommerce activity, with brands sometimes needing to supply their own software to 3PLs to keep up with customer demands.
Challenge 1: A lack of scalability
Many traditional 3PLs rely on legacy systems or manual workflows. These struggle to scale or keep pace with changing business needs, like seasonal spikes in order volumes, new delivery methods, or changes in storage requirements.
Furthermore, manual processes are time-consuming to execute and more prone to error, which leaves your business in a vulnerable position when it comes to handling larger order volumes or more complex order fulfillment workflows.
Challenge 2: Limited technology integrations
Whether you’re bringing certain technology platforms with you to a 3PL partnership or want to invest at a later date, a lack of integration capabilities with your provider makes it extremely difficult to run a streamlined fulfillment operation.
Without a real-time WMS or OMS system, it’s nearly impossible to maintain full visibility over orders and inventory levels. This can result in missed or delayed shipments that increase support ticket volumes – not to mention sorting through an awful lot of paperwork looking for updates.
Challenge 3: No value-added services
Maybe you’re looking to add some seasonal packaging for the holiday season or start including some freebies with your orders. It’s these small touches that make all the difference when it comes to building loyalty and turning a first-time shopper into a repeat customer.
However, many traditional 3PLs are only set up to deliver basic logistics services such as transportation and storage, with more outside-the-box services (pun intended) out of reach because of the higher labor or set-up costs. This holds businesses back from investing in experiences that give them a competitive advantage and help them stand out in a crowded market.
Why is partnering with a tech-enabled 3PL the best way to streamline fulfillment?
Speed up fulfillment via automation
Fulfillment bottlenecks develop when orders or inventory stall at different points in the process, requiring manual intervention to get things back on track. When your 3PL is using an advanced WMS, orders are routed directly to your warehouse the moment they are placed instead rather than waiting until an appointed time to be manually transferred and losing precious time. Likewise, costly mistakes like running out of inventory–or having too much– can be avoided by setting flags on inventory levels or slow turnover so your business can respond accordingly.
ShippingTree ensures that your orders are always moving to the next stage with powerful in-house software that guarantees rapid turnaround from order processing to delivery. Plus, shipments will always originate from the warehouse closest to your customers, so you save valuable dollars on shipping and get orders to your customer’s doorstep faster.
Save time with seamless integrations
Whether you’re selling across multiple channels or using other business platforms to drive efficiency, a 3PL that can provide you with native integrations enables you to build a modern, streamlined ecosystem that shares data seamlessly. ShippingTree boasts powerful integrations with a whole suite of industry platforms, including Shopify, BrightPearl, Loop, and ReCharge, so you can take full control over your operation from top to bottom.
Real-time visibility over every order
Having access to a real-time technology platform via your 3PL minimizes the amount of time spent requesting information, leading to a more transparent and productive relationship with your provider. Being able to oversee all of your orders from placement to successful delivery means you and your warehouse team can flag issues before they go on to affect shipping.
ShippingTree’s intuitive dashboard makes it easy for your team to keep an eye on every aspect of your fulfillment operation. Plus, feeding all activity through one system enables a more data-driven approach to measuring performance and identifying where improvements can be made.
Advanced value-added services
A more granular, tech-driven approach to inventory management and order fulfillment opens the door to more customizable fulfillment services. These not only elevate the brand experience for customers but also add fresh product offerings to your catalog. Think kitting and subassembly to create appealing product bundles, or branded packaging and custom inserts that are guaranteed to make an impression upon delivery. ShippingTree offers all of these services–and more.
Partner with ShippingTree for technology-enabled fulfillment
So, what does a scalable, tech-savvy 3PL bring to the table? Faster fulfillment, better scalability and visibility of your operation, and robust value-added services, just to name a few. In sum, a technology-enabled 3PL is a gateway to bigger and better growth opportunities for your eCommerce brand.
When partnered with a provider like ShippingTree who is invested in continuous improvement and passing on cost and efficiency savings, you no longer have to compromise on growth or brand experience; you have everything you need to set yourself up for success.
