The advancement of technology has made an impact across industries. Let’s understand how it has improved the 3PL industry as well.
Third-party logistics [3PL] providers have the industry experience and expertise to manage your supply chain and logistics process. However, traditional ways of the crucial delivery management process can never be a recipe for success, especially in today’s world of same-day and 2-day delivery expectations of consumers. Thus, 3PL providers have evolved their services with the help of advanced technology to offer efficiency and scalability to the eCommerce brands, thus helping them meet consumer demand.
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A Tech-Enabled 3PL
A 3PL company with modern technology will streamline your shipping and fulfillment operations for smooth order delivery. There are various types of 3PL service providers who provide either some parts or the complete supply chain management and logistics process comprising warehousing, digital picking lists, packing, and shipping.
Apart from that, a tech-enabled 3PL provides software to give you complete real-time visibility into your order lifecycle. A vast network of warehouses empowered by technology is the perfect combination to deliver a professional end-to-end supply chain solution for eCommerce order fulfillment.
How Technology Helps 3PLs
3PLs usually use order fulfillment software on a cloud-based platform that automates the supply chain and logistics operations. Technology automates and empowers the complete inventory management system for picking, packing, shipping, and tracking across orders and sales channels for eCommerce brands.
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Some critical technological solutions that any professional eCommerce fulfillment company typically uses comprise order management software, transport optimization tool or app, and network evaluation analysis. Different software works in cohesion to give a 3PL clarity and visibility on multiple fulfillment sources and efficiently manage backorders and returns/exchanges. Apart from that, sophisticated data analysis and insights help 3PLs provide the eCommerce retailers with various shipping options and ensure a cost-effective, seamless service.
3PLs Use of Analytics
Technological expertise is always a major advantage of 3PL shipping companies. It enables us to empower our clients to succeed in the competitive marketplace and gain an edge over their competitors. Most of the proficient 3PL service providers are avid users of data and analytics to draw intelligent insights and help you make smart business decisions.
For instance, data enable us to reduce eCommerce brands’ inventory volume and position their inventory to the optimal location, leveraging our network to reduce transportation costs for our clients.
Technologies that Change Logistics Future
Some of the futuristic technologies that started ruling the current supply chain and logistics landscape and are likely to dominate in the future comprise:
- Shipment Tracking System. Most professional 3PL companies provide eCommerce brands with a shipment tracking dashboard to monitor and manage their consignments. Such advanced systems typically offer notifications and feature customizable reporting and messages providing businesses with more real-time insights.
- Internet of Things [IoT] and Radio Frequency Identification [RFID]. IoT is no longer that ‘fancy’ latest tech but impacts logistics companies’ operations in various ways. Every transport nowadays is connected to a system that monitors the tracking. Providing advanced connectivity enables 3PL operators to minimize costs and delays by eliminating the risk factor.
Currently, most experienced 3PL companies are leveraging the latest technological advancement of RFID. It is nothing but a tag or barcode placed on a consignment that sends radio waves that are received and processed by company experts to monitor the packages.
- Autonomous Trucks and Drones. Though currently, it might sound like a tech movie, we are not too far from delivering a product through a drone or autonomous vehicles. Such autonomous vehicles are almost ready to hit the market, with some companies like Embark, Uber, and Tesla about to release their truck.
To conclude, , you must take care of your customers to thrive and grow your brand. And that can be done only with the best technology in place that keeps you ahead of your contemporaries. Hence, select a strategic partner carefully to ensure world-class order fulfillment services.
XPDEL is founded and operated by industry veterans with experience from Amazon, FedEx, UPS, JDA, Walmart, Target, and other leading companies in eCommerce and Retail. On a mission to enable growth for eCommerce companies, we are futuristics in our vision and constantly work on creating technology that helps us meet customer expectations for today and tomorrow.