Meet Emily, who runs a small but booming startup.
When she landed a big contract, her team was swamped and struggling with the sudden increase in orders and managing multiple warehouses.
Everything changed when they found the perfect 3PL software. Suddenly, managing inventory was super easy, shipments went smoothly, and mistakes dropped dramatically.
Emily’s story isn’t just about handling more business; it’s about managing it smarter.
It’s no surprise that most Fortune 500 companies, 90%, in fact rely on third-party logistics providers to streamline their operations.
Seeing how Emily turned her business around with the right tools, this blog will highlight the six essential features of 3PL software to manage third party logistics efficiently.
Find out the must-have features of great 3PL software, so you can manage your operations as smoothly as Emily does.
What is 3PL Management Software?
3PL management software is a tool designed to make life easier for businesses that work with third-party logistics providers.
Essentially, this software helps you coordinate and manage the various logistics services outsourced to third parties, from warehousing to transportation.
With 3PL management software, you can streamline operations, keep track of inventory, and ensure everything is running smoothly between your business and your logistics partners.
It’s a must-have for any company looking to optimize its supply chain and logistics operations efficiently.
So, whether you’re shipping products globally or managing multiple warehouses, 3PL warehouse software can be a game-changer for keeping everything organized and on track.
Why Choosing a 3PL Warehouse Management System is a Smart Move
Today’s customers not only expect their orders to arrive quickly but also want real-time updates throughout the shipping process.
While smaller businesses might handle these tasks in-house, larger companies often find that outsourcing to a third-party logistics provider (3PL) is the most effective way to maintain accuracy and efficiency in high-volume operations.
This is where a 3PL Warehouse Management System (WMS) comes in, offering a range of benefits that enhance customer satisfaction. Here’s why choosing a 3PL WMS is a smart move for your business.
1. Cut Costs Efficiently:
The automation provided by 3PL software warehouse significantly reduces the need for manual data entry, leading to lower operational costs for logistics providers.
These savings can then be passed on to clients through reduced shipping costs, making it a win-win for everyone involved.
3. Minimize Errors
Manual handling of order fulfillment increases the risk of errors at every step.
3PL WMS mitigates this risk by automatically storing and processing data, ensuring accuracy throughout the entire process and preventing costly mistakes.
3. Save Time with Automation
3PL WMS automates key logistics tasks, saving time for both providers and clients.
With Teamship WMS’ automated order tracking, payment processing, and centralized storage for reports and invoices, everything you need is in one place, eliminating the hassle of juggling multiple databases.
Integration with eCommerce platforms like Shopify and Amazon further streamline operations by automatically capturing orders and syncing them directly to your database.
4. Boost Customer Support
3PL management software improves customer experience by providing real-time order tracking and streamlined payment processes.
It also supports multiple shipping options like same-day and two-day delivery by optimizing last-mile routes from the nearest fulfillment centers, ensuring timely deliveries and easy returns.
5. Flexible and Scalable Solutions
One of the major advantages of 3PL management system is its ability to adapt to your business needs.
Whether you’re expanding inventory, opening new distribution centers, or entering new markets, 3PL WMS can be customized and scaled to match your growth seamlessly.
6. Enhance Transparency
Trusting a 3PL with your supply chain can be daunting, but 3PL warehouse management systems like Teamship ease this concern by offering complete visibility into logistics performance and current inventory levels.
This ensures that everything is on track and functioning smoothly.
What to Consider: 6 Essential Features in 3PL Software
Choosing the right 3PL software is a big deal for any business working with third-party logistics.
The right software can make everything run smoother, save you money, and keep your customers happy. But picking the wrong one can cause a lot of headaches.
To help you out, we’ve put together a list of six key features that every 3PL software should have.
In this guide, we’ll walk you through what to look for so you can find the best fit for your business and set yourself up for success.
1. Integration Capabilities
Integration capabilities are the backbone of your 3PL software, making sure everything in your operation works seamlessly together.
Imagine your eCommerce platform, accounting software, and CRM tools all talking to each other without you lifting a finger.
This is what Teamship’s integration capability does. It connects your systems, so orders, inventory levels, and customer details are automatically synced and updated.
It’s a must-have because it cuts out manual data entry and reduces the chances of errors.
Plus, as your business grows, you can easily add new tools or expand into new markets without missing a beat.
2. Order Management
How do you ensure every order stays on track from start to finish? Order management is your go-to feature, keeping every order on track.
Think of it as your go-to tool for making sure nothing slips through the cracks. With this feature, you can easily monitor order statuses, adjust on the fly, and automate tasks like confirmations and shipping updates.
It’s essential because it streamlines your workflow, reduces errors, and ensures customers get their orders on time, every time.
By having everything in one place, you’re always ready to respond quickly to any issues, keeping your customers happy and your operations smooth.
3. Inventory Management
Around 34% of businesses have experienced instances where they accidentally sold a product that was out of stock, leading to delays in order shipments.
Inventory management is important for keeping tabs on your stock levels.
By knowing exactly what’s in your warehouse, where it is, and when you need to reorder, you can streamline inventory management.
This feature helps you avoid costly mistakes like overstocking, which ties up your cash, or understocking, which could mean missing out on sales.
With effective inventory management, you can meet customer demand without wasting resources, keeping your supply chain running like a well-oiled machine.
4. Warehouse Management
Around 87% of decision-makers in warehousing, logistics, and retail are either expanding or planning to expand their warehouse space in 2024.
A strong warehouse management feature ensures your products are stored efficiently, making it faster and easier to pick, pack, and ship orders.
This is key to reducing costs, minimizing mistakes, and getting the most out of your warehouse space.
Plus, it helps you manage your team and resources better, so your operations run smoothly even as you scale.
The right warehouse management tools mean you can grow without needing more space, saving you both time and money.
5. Transportation Management
Transportation management is your secret weapon for getting products to customers quickly and affordably.
A transport management system helps you plan and track shipments, choose the best carriers, and optimize delivery routes.
It’s a must-have because it cuts shipping costs, speeds up deliveries, and keeps your customers happy by ensuring their orders arrive on time. With real-time tracking and updates, both you and your customers can see exactly where each shipment is. This builds trust and helps you fix any issues before they turn into problems.
6. Client Portals
Client portals are a game-changer for customer relationships.
With Teamship’s dedicated client portal, your clients gain direct access to their order information, inventory levels, and shipment tracking, all in real-time.
This transparency is crucial because it gives your clients control and confidence in the process. It also cuts down on back-and-forth communication, saving everyone time.
By empowering your clients with the information they need at their fingertips, client portals boost satisfaction and help your business stand out from the competition.
Centralize 3PL Warehouses with Teamship
Forget about juggling multiple systems and manual data entry across different platforms. Teamship’s 3PL software is designed to centralize and simplify your processes.
With Teamship, you can easily add your customers into our centralized 3PL warehouse management system and seamlessly connect your partner warehouses.
Plus, you can customize it with your 4PL branding while letting your partners handle the day-to-day operations.
Here’s what makes Teamship stand out:
Customer’s Warehouse Management
Our system makes it easy to manage your customers’ inventory in one centralized location. Everything is organized and tracked, keeping your operations smooth and efficient.
Pick and Pack Fulfillment
Our pick and pack feature simplifies order fulfillment, ensuring quick, accurate deliveries that lead to happier customers and fewer errors.
Client Portal
We provide a client portal where your customers can access real-time information about their inventory and shipments. It’s all about giving them the transparency and control they need.
By partnering with Teamship, you can offer your customers a complete and centralized inventory management system without the high costs of traditional 3PL software.
Simplify your logistics, enhance efficiency, and deliver better service.
Schedule a demo today and check out how our intuitive 3PL warehouse management platform simplifies multi-warehouse management.
Final Thoughts
In the world of logistics, having the right third-party logistics software can make all the difference.
By focusing on essential features like order management, inventory control, warehouse efficiency, and seamless integration, you can streamline your operations and provide better service to your customers.
Whether you’re looking to cut costs, reduce errors, or simply make your life easier, choosing the right 3PL software is a smart move that can help your business thrive.
Take the time to explore your options and find a solution that meets your needs and supports your growth.
Frequently Asked Questions
1. What are the key trends in 3PL?
E-commerce has made customization and personalization a top priority in logistics and 3PL services.
Many 3PL providers now offer tailored experiences for e-commerce businesses, including custom packaging, specialized handling of items like food and pet supplies, extra care for fragile items, and flexible delivery options.
2. What are the 3 C’s of logistics?
The three C’s of logistics are Communication, Collaboration, and Change Management.
Communication is about ensuring honesty, transparency, and clear dialogue throughout the supply chain, which helps reduce misunderstandings and improve efficiency.
Collaboration involves different teams and organizations working closely together to achieve common goals, leading to smoother operations and quicker problem-solving.
Change Management focuses on the ability to adapt to new challenges, technologies, and market shifts, which is essential for staying competitive and meeting customer expectations in the ever-evolving logistics landscape.
3. What is a KPI in 3PL logistics?
Key Performance Indicators (KPIs) in 3PL logistics are metrics used to evaluate how effectively a logistics provider is performing its services. These KPIs help businesses gauge the efficiency and reliability of their 3PL partners.
Common examples of 3PL KPIs include the speed of order fulfillment, accuracy in maintaining inventory levels, on-time delivery rates, and the percentage of orders shipped without errors.