Third-party logistics (3PL) software facilitates the management of outsourced supply chain functions such as transit and storage. Businesses that do not maintain their own storage or vehicle fleet, either due to a lack of skills or resources, rely on third-party logistics providers to handle these vital activities on their behalf.
3PL service providers like Go Freight Hub use highly sophisticated software tools to prepare, arrange, and oversee supply chain functions for their clients to ensure operational efficiency, cost savings, and better quality control. Clients will often also have access to this software through their own portal, further enhancing transparency and traceability.
While some logistics companies provide 3PL tools developed exclusively for exports, others offer alternatives that can be used by both 3PL providers and businesses looking to manage their distribution networks internally. 3PL software interfaces with transit and storage management software as part of a company’s bigger portfolio of supply chain capabilities. Moreover, third-party logistics solutions are increasingly being employed by e-commerce businesses, necessitating interaction with e-commerce platforms.
What Do these Software Tools Do?
- Management for contractual documents and Levels of Service agreements
- Provide functionality for managing multiple warehouses and inventories
- Provide transit management and shipment capabilities
- Costs associated with all leased logistics operations should be tracked (both estimated and real)
- Maintain a database of supply chain service suppliers
- Permit consumers to get information on product availability, for example
- Include measurements and key performance indicators (KPIs) that customers may use to monitor performance
Benefits of Using 3PL Software
Automated Processes Save Time
By merging and optimizing various supply chain logistical network components, 3PL providers and their customers can save copious amounts of time. Purchases and transactions are automatically monitored, and reports and invoices may be generated from a centralized database instead of different spreadsheets.
Cost Savings on Both Endpoints
Workflow streamlining leads to cost savings for 3PL providers, which can translate into lower shipping costs for the consumer in the long run, alongside quicker order processing and, eventually, more satisfied customers.
Adaptability and Customizability
The benefit of third-party software solutions is that they are flexible and expandable to meet the unique demands of each customer. This enables seamless transitions in the event that your business expands its inventory, establishes a new distribution warehouse, or enters a new industry.
Perspective on Your Company
By integrating all supply chain processes and monitoring shipping, transactions, and refunds, third-party logistics software may provide a complete picture of your organization. You will be able to keep track of inventories, conduct performance evaluations, and produce reports automatically.
When you entrust your supply chain operations to a third-party logistics supplier, you would like to verify that they are deserving of your confidence. The access provided by 3PL technology enables you to monitor the 3PL’s performance with regard to your sales and inventory to ensure that everything is running well.
Customer Service Enhancements
3PL software is capable of tracking order information from start to finish, which entails your clients being able to follow deliveries in real-time and easily make refunds. Also, 3PL software from Go Freight Hub enables the provision of additional shipping perks such as same-day and two-day shipments.
The Bottom Line
Because each organization is unique, switching to a third-party logistics supplier may make much more sense for some than it does for others. If you’re contemplating a transition to third-party logistics, we hope this article helped you in your decision.
Through various technological solutions, Go Freight Hub can deliver on-demand value-added services and connect your supply chain operations to our transparent transportation and storage services. Visit our website for further details on our logistics software solutions.
Hello, My name is Shari & I am a writer for the ‘Outlook AppIns’ blog. I’m a CSIT graduate & I’ve been working in the IT industry for 3 years.