5 Software Features Your 3PL Provider Should Have

When it comes to choosing the right 3PL partner for your business, it's important to do your research and choose wisely. There are many factors to consider when selecting a 3PL partner, from pricing to service levels.

In this blog post, we'll take a look at the different types of 3PL partners and provide some tips to help you make the best choice for your business.

Who are the mysterious 3PL partners? 🤔

Many of you do business every day: selling, shipping, and communicating with customers. But surprisingly, not many people know what 3PL is. Let’s get into this!

3PL (Third-Party Logistics) logistics partner is a company that provides logistics and supply chain management services to businesses. This can include transportation, warehousing, order fulfillment, and other related services.

The 3PL logistics partner is responsible for managing the logistics and supply chain operations of their clients, often working with multiple carriers and vendors to optimize the supply chain and reduce costs. 

In a couple of words, a 3PL partner is an essential tool for any e-com business.

Okay… and why would you need a 3PL partner? 😳

When selecting a 3PL partner, it's important to consider your business goals and how they will be impacted by the partnership. It's important to consider the fulfillment capabilities of the 3PL provider and determine if they are able to meet the needs of your company.

Do you need assistance with warehousing and inventory management? Are you looking for help with transportation coordination? What about fulfillment?

Knowing what you need from your 3PL partner will be a critical factor in helping you find the right fit. Additionally, fulfillment is a key component of your business operations that needs to be taken into account when evaluating 3PL partners. You’ll want to evaluate fulfillment goals and objectives as well as fulfillment capabilities to ensure that the partner can meet your fulfillment needs.

Ask yourself: What short-term and long-term objectives are you trying to achieve? Do you want to invest in automation and technology? Do you need access to detailed analytics? Do you want a more cost-effective solution? All of these questions should inform your partner selection process. These considerations should all be taken into account when choosing the right 3PL partner for your business.

What are the advantages of working with 3PL companies? 💸

✅ Cost savings. They can be achieved by outsourcing expensive tasks such as warehousing and transportation to a 3PL partner as they typically have the expertise and infrastructure to perform these tasks more cost-effectively than businesses would be able to do on their own. 

✅ Inventory optimization is another major benefit of working with a 3PL partner, as they can help businesses manage their inventory more efficiently. This can help reduce costs associated with holding excess inventory and increase customer satisfaction by having the right product at the right time. A 3PL partner will have the right systems in place to provide accurate forecasting and demand planning, so that companies can make sure they don’t end up with too much or too little inventory. You can ensure that their inventory is optimized for maximum cost efficiency and customer satisfaction.

✅ Improved customer service. Why? Experienced staff will be able to handle order fulfillment and shipping in a timely manner, providing customers with fast and reliable service that will increase customer loyalty in the long run.

So, it's easy to see why partnering with a 3PL provider has become such a popular choice among businesses.

But how to choose the right one? Here are 5 factors you should consider to choose the ultimate 3pl match for you. 

1. A 3PL provider meets your needs

Identify what you want from a 3pl partner. On-time delivery? Storage? Cross-border logistics? And maybe picking and packing? Some 3pl partners also offer the preparation of your goods for different marketplaces. Write down all key services you’d like to get and this is where you can start your research!

2. It has a big network of warehouses and final mile delivery partners

In order for your business to function efficiently, a good 3pl partner should have an effective approach to network configuration by helping you determine the right distribution center locations. In addition to having a network of conveniently located facilities, they will also be able to open new facilities to meet your specific requirements.

In addition to having a network of conveniently located facilities, they will also be able to open new facilities to meet your specific requirements.

3. It is multichannel

Selecting a provider that understands omnichannel commerce and how to provide the most optimal customer experience is essential. To be multichannel is not only a trend – it is also essential in 2023. It is important to look for a company with a proven record of success, a repeatable business model, and experience in the type of industry or business you operate in.

4. It has its own IT system for orders

The 3pl partner should also be able to provide advanced technology solutions. It may not seem necessary at this point, but your business will always evolve, so your provider should be able to provide such sophisticated systems.

5. A 3PL provider has great customer service

The quality of customer service and responsiveness of any 3pl logistics partner should be prioritized. You should always be able to reach them whenever you need them, and they should also provide you with a variety of channels so that you can communicate with them. As well as having the ability to positively represent your brand and match the level of communication and professionalism you require from them, it is also important that they have the necessary experience.

Alright, you have a number of candidates. They all have great customer service, a big network of warehouses around the world… They even have their own IT system! Each one.

And let’s stop here for a breath.

Increasing the number of customers and orders received by any online retailer is only possible if all the order fulfillment steps are properly completed in order for the business to achieve the purpose of increasing customers and orders.

Because of this, it is crucial for merchants to make sure that the order fulfillment software they use is the right one for their business. However, it can be very challenging to find one that offers the features that are right for your business.

Let’s take a closer look. 

Is every 3pl partner suitable for your business?

And what are the core features their IT system should have? 

1. Integration.

That’s very important since every e-com retailer wants to save time. Make sure the fulfillment system will be able to easily integrate with the other systems you currently use or are planning to use, such as:

• marketplaces
• e-com platforms
• pos systems
• shipping providers 

2. Essential Fulfillment functions 

• Automate the picking, packing, and shipment processes. 
• Print labels and ship orders. 
• Choose which carriers and methods you want to use. 
• Connect to your current providers and those you want to start using. 
• Send the tracking number and information to your customer, platform, or both.

3. Warehouse management functions

• Manage inventory across multiple stores. 
• Change the product location. 
• Generate and print packing and shipping lists. 
• Set up different users for different roles.

4. Order Management functions 

• See all orders from all sources
• Manage, create, and view all sales
• Process all refunds
• Keep track of your inventory
• Keep customers informed
• Store all customer data

5. Inventory Management functions 

• See real-time stock
• Enter, edit, and view your inventory
• Accurately forecast your stock
• Receive and manage your orders
• Allocate or reserve the stock
• Connect to multiple channels or marketplaces
• Bundle or kit products

Instead of conclusion… 👀 

As you see, there are many factors to take into account when choosing to outsource some or all of your logistics to a third party logistics provider. The majority of 3PLs offer expertise in all aspects of supply chain management, so you can focus on running your business while they handle everything else. 

Therefore, a right 3PL partner for your business is an important decision. By doing your research and considering all the factors, you can ensure that your 3PL partner offers the best service and pricing for your business. 

Be sure to visit www.wapi.com to know more about one of the most trustful 3pl providers, who offers fulfillment in Europe and USA.
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With the right 3PL partner, you can be confident in knowing that your supply chain is in good hands. And remember: do not consider the price as the main factor. There will always be a cheaper solution, a cheaper partner but that doesn't mean quality and expertise.