A majority of companies in the retail and manufacturing sectors have turned to eCommerce to make up for the losses caused by the pandemic. Besides, there is a quest to future-proof the existing software systems to steer clear of the potential challenges. When it comes to logistics services for eCommerce management, the thought of adopting the 3PL strategy is perhaps the first thing that crosses our mind.
Third-party logistics remains the most popular business model for logistics management because of the apparent benefits it brings to enterprises. Since you do not need to get into the complexities of shipping and transportation, it lets you focus on your core operations to deliver maximum value to customers. Nevertheless, it is critical to have an effective software in place to oversee logistics activities being handled by 3PL providers. In this post, we shall explore the importance of 3PL software development for eCommerce businesses and why it is important.
The term 3PL stands for third-party logistics and refers to an organization’s use of third-party service providers to carry out routine logistics and distribution functions. The 3PL model enables enterprises to outsource a third-party company to handle their logistics, warehousing, and supply chain activities. As such, retail and eCommerce businesses can focus on their core operations to enhance production capacity and improve customer services. Being the most widely used logistics approach in eCommerce, the 3PL model accelerates the order fulfillment cycle. At the same time, it renders complete support from warehousing to picking, packaging, and delivering shipments to their end destinations.
Order fulfillment is one of the most crucial aspects of an eCommerce company as it directly impacts customer experiences. However, the process is increasingly complex and requires a number of resources to manage and deliver shipments on time. There, most eCommerce businesses outsource 3PL service providers to streamline their order fulfillment pipeline by efficiently handling logistics and supply chain activities. Nevertheless, having a fully integrated ERP software in place is critical for both 3PL providers and eCommerce businesses. It helps them keep track of pending orders, in-transit shipments, estimated time of arrival, as well as other critical tasks like picking/packaging and shipment processing.
The order fulfillment cycle begins right after the customer places an order and this is where a 3PL service provider comes to your rescue. From collecting items at the warehouse to handling shipments and delivering them to the doorsteps, 3PL companies handle everything in between. However, several eCommerce companies report a lack of visibility into logistics processes upon adopting the 3PL model.
Although most 3PL companies provide a personalized software system for you to keep track of operations, it might not address your needs entirely. That said, many enterprises choose to develop their own 3PL software to gain complete control over their order fulfillment cycle.
Understandably, custom 3PL software development offers a number of benefits to enterprises in the form of increased transparency, better scalability, and improved customer service. Above all, it significantly reduces overhead costs, saves time, and aids in accelerating the order fulfillment cycle. Coming to the features, 3PL software development services generally require three main types of ERP modules.
Most 3PL companies provide warehouse coverage to accelerate order fulfillment by overcoming inefficiencies in warehouse management. By developing a 3PL WMS system, eCommerce businesses can control and administer 3PL warehouse operations while eliminating potential bottlenecks and discrepancies. In doing so, they are able to customize the workflow of 3PL service providers as per their needs and expectations.
The SCM module is also a crucial part of 3PL software development as it helps maintain a perfect balance between warehouse and logistics operations. Therefore, you must have an SCM module integrated with your 3PL software to centrally manage supply chain activities such as procurement, shipment, and transportation.
As an eCommerce company, you must be able to address your customers’ queries related to delays in shipment or order tracking. Rather than contacting the logistics company, the customers are more likely to connect with your customer service representatives. By integrating 3PL software with the CRM module, you may ensure that your customer service executes have all the relevant information at their disposal.
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We, at Oodles, provide complete ERP development services to solve complex business problems associated with inventory/warehouse, supply chain management, and the likes. Our development team specializes in using the latest tech stack and open-source software platforms to build custom business solutions. We have a proven track record in developing custom software solutions for accounting/finance, CRM, HRM, eCommerce, supply chain, and workforce management. Our 3PL software development services enable enterprises to gain complete visibility into their warehouse operations, logistics, and SCM activities. We also have our expertise in eCommerce application development using open-source technologies like Magento, PrestaShop, and WooCommerce. For more information, contact us at [email protected].