Opening a warehouse in another country necessitates a considerable financial investment that may or may not provide a return! That is why many companies hire third-party logistics companies to manage their overseas warehouses.
The odds of success increase dramatically when suitable third-party logistics (3PL) warehouse management system is used. Integrating an effective 3PL warehouse management system ensures that time and money are saved.
Why Should You Adopt 3PL?
Including 3PL service providers in your supply chain is well-known for increasing warehouse success rates and simplifying your supply chain. Although many businesses use third-party logistics providers, several issues can develop during the procedure.
The lack of direct control over warehouse management procedures is one such stumbling block. Client organizations may be forced to accept little to no control over how a warehouse is run as a result of this lack of control.
Fortunately, today’s 3PL warehouse management system makes it much easier for 3PL providers to provide comprehensive insight to shippers that use their services. As more 3PL management organizations adopt current technology, this will undoubtedly become a trend.
The complexity of a 3PL company’s warehouse operations increases when it delivers services to numerous customers.
A 3PL company can gain organized data on warehouse stock and an easy way to keep track of goods belonging to various customers by using a comprehensive 3PL warehouse management system. Integrating one of these software solutions simplifies the process and aids 3PL organizations in increasing production and client satisfaction.
What is a 3PL Warehouse Management System?
Warehouse management systems (WMS) are designed to automate the numerous time-consuming activities involved in running one or more warehouses. There is no one-size-fits-all solution for warehouse systems.
When a WMS is integrated with 3PL in mind, it produces different packages than if it were designed for a single warehousing company. 3PL integration extensions that work include multi-client architectures, 3PL billing functionality, and other value-added services. Find out what you’ll need to supply your 3PL to maintain them functioning smoothly before making any decisions.
The purpose of 3PL firms is to make your life easier. You should supply them with new tools and efficiency increases whenever possible. Taking care of any snags they may encounter will set you up for future success.
What Benefits Can a Warehouse Management System provide to Third-Party Logistics Firms?
-
Real Visibility
The ability to view data in real-time is a must-have feature for any professional third-party logistics provider. Shippers who use third-party logistics providers want to get information, assess progress, and track inventory remotely using web portals.
3PL companies benefit from providing access to customers as well. Many 3PL warehouse management systems today integrate seamlessly with enterprise resource planning or corporate accounting software, allowing for visibility via a web portal. Clients can use these portals to check inventory levels, place orders, and execute other functions.
The easy access provided by 3PL online portals eliminates the need for time-consuming chores like manually compiling customer reports. Instead, customers can safely log in and view their data from any device at any time.
-
Inventory Tracking By Ownership
While the 3PL warehouse management system is mostly used for management, they also play an important role in customer support.
A warehouse management system that can rapidly give information like the location of the items is crucial due to the requirement for constant interaction between freight shippers and 3PL companies. Customer retention will suffer if a 3PL company cannot notify a customer where their items are now located.
It becomes easier to track and manage items with the inclusion of a complete 3PL warehouse management system. Many of these solutions provide UPC, batch, SKU, package, serial, and part number tracking.
While having so many alternatives may appear excessive, having multiple tools available in a multi-tenant warehouse situation is beneficial.
The capacity to log all inventory activities in and out of the warehouse, including in-warehouse transfers, is another crucial aspect of inventory monitoring. When the necessity for a comprehensive audit arises, data about these internal movements might be quite useful.
Extensive record-keeping is essential for swiftly identifying and correcting any problems, especially in multi-tenant warehouses. Fortunately, today’s warehouse management systems offer numerous advantages for increasing efficiency and providing exceptional customer service.
-
Advanced 3PL Billing
Billing becomes an extremely complicated process when offering 3PL services to several clients. The process of manually recording transactions and turning them into bills can take days. Such a procedure wastes time and may even cause customer relations to deteriorate.
With so many transactions to handle, mistakes are bound to happen. Billing errors appear unprofessional and even dishonest, which is a critical misstep when it comes to gaining a customer’s trust.
That’s why having a well-rounded 3PL warehouse management system is crucial. It includes all the tools needed to set up an accurate billing system that significantly reduces the time spent on invoicing while also boosting its usefulness.
Final Takeaway
Third-party logistics is here to stay, and organizations that incorporate their services reap a slew of benefits. To run a healthy supply chain, it’s critical to free up time and resources while yet preserving efficiency and customer satisfaction.
3PL-focused storage, inventory, and transportation management solutions will continue to develop accessibility and strength as shipping and warehousing demands grow. Now is the moment to implement a 3PL warehouse management system if you haven’t already.
