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The e-commerce market is growing irrepressibly, every business now realizes the need to have an online presence which increased market competition. Therefore, all the brands are putting in their best to provide the most efficient services to attract customers. Many of them prefer 3PL logistics services to fasten up deliveries.
3PL logistics boosts the logistics procedures thus enhancing customer satisfaction. It ensures the efficient processing of orders from picking and packing to the delivery at the customer’s door thus a worthy solution to accelerate your ecommerce business growth. A 3PL logistics company either has its own or rents a warehouse and transportation task force. However, it provides effective management of logistics ensuring accurate order fulfillment from inventory to safe transportation of goods. Companies use 3PL logistic services to divide the labor so they can concentrate on other important procedures of their business.
The most important factor offered by 3PL logistics is the cash on delivery (COD) facility. Under this option a customer pays only when he receives the parcel. As per Asian Development Bank report, 95% of customers in Pakistan select the COD option when placing an online order. It gives them a sense of security, prevents money loss, and influences their purchasing decision. Customers are more likely to purchase from a brand with COD option. Moreover, ecommerce businesses can get cash immediately through this method.
As per Statista, in Pakistan, it is predicted that the 3PL logistics market will reach 2.96 billion US dollars in 2023. With an annual growth rate of 12.50%, it is expected to increase to 4.73 billion by 2027.
The features 3PL logistics offers help e-commerce businesses of all sizes to streamline workflow efficiently. Features include:
Managing orders with 3PL logistics services is beneficial for e-commerce businesses in the following
ways:
Order management via 3PL logistics includes processes such as:
Storage space is offered by the 3PL logistics company to keep your brand’s inventory. They receive, store, and manage inventory accurately with the help of a warehouse management system that offers:
All the data synchronization is made in real-time so the inventory is sorted in the most organized manner and can be tracked easily. It helps in meeting customers’ demands timely and avoids inconvenience due to being out of stock.
3PL logistics services handle multiple inventory locations at a single time. Under this service orders are distributed as per location they have to be delivered. This ensures the fastest delivery to customers’ doors. The processes such as receiving the parcel, putting away, inventory management, picking, packing, shipping, and order returns all are done through automation via order management and warehouse management software. Orders are shipped efficiently within a day depending on location. Order volume doesn’t matter as 3PL logistics company is well prepared to handle an increased volume of orders in peak seasons without any complications.
When an order is placed, WMS automatically informs 3PL Logistics Company giving details regarding the order. As soon as the order is received in the warehouse the 3PL logistics company uses the barcode scanning method to identify the order correctly. The item is then picked from the shelf and sent for packing to prepare it for delivery.
Many of the 3PL logistics services also offer tracking and tracing of shipments for both merchants and customers. They generate shipping labels and put them on the parcel then send tracking details to both parties i.e. the brand and the customer. Customers and merchants can then easily track the parcel on its way to meet the destination location. This enhances the customer’s satisfaction who is waiting for a parcel to reach.
Order returns are expected in an e-commerce business and the major task is to handle these returns which need great accuracy. When an order is returned by the customer the 3PL logistics providers initiate the reverse logistics procedure. The product is inspected carefully and if there is any issue from the customer’s side, the 3PL provider contacts the customer. Once the verification is done the product is returned to the brand’s inventory and the status is updated.
The stats above show the most demanded features of a warehouse management system. Barcode scanning is the most important feature so far because it makes the picking process hassle-free.
The warehouse management system is crucial to managing orders with 3PL logistics. The fact is supported by the 3PL Warehouse Benchmark Report 2021, which indicates that 84% of 3PL logistics use WMS for the successful running of logistics procedures.
The State of the third-party logistics industry report 2022 declared WMS as the technology that boosts the operational power of 3PL logistics. It eliminates the need for manual work.
3PL logistics can enhance the use of WMS features with the use of modern hardware such as:
Such hardware brings accuracy to the work and fastens up order management procedures that would consume much time otherwise. Mobile barcode scanners help in verifying the total count of products. Also help to scan serial numbers, SKUs, and picking time of the parcel. Delivery of the correct parcel to the right location is ensured with mobile scanners as it helps to select the package type and assure the placement of the package in the right packing. Mobile scanning along with WMS double check the package information to avoid errors.
69% of 3PL logistics services also use IoT (Internet of Things) to automate processes. It includes voice automated picking, pick-to-light, put-to-light, and AGVs. As per the Third-Party Logistics Study Report 2022, IoT helps to improve the productivity of the workforce by 63% and gives a 57% boost to real-time decision-making ability.
An omnichannel system gathers data from multiple channels to a single platform therefore it is an effective solution for 3PL logistics to manage multiple inventories and warehouses from a single point. According to the Third Party Logistics Warehouse Benchmark Report 2021, 85% 3PLs who focused on an omnichannel strategy enjoyed 92% order growth. The omnichannel strategy benefits 3PL by:
To meet the increased volume of shipments, 3PL Logistics needs to do work fast and accurately. Here comes modern technology which minimizes manual work to bring in efficiency, eliminate human error and enhance customer experience. Ginkgo Retail is one such software for logistics integration. It keeps you ahead of the competition by automating order management procedures.
Ginkgo Retail provides a warehouse management system to deal with day-to-day logistics operations. It brings in following benefits to 3PL logistics services:
Ginkgo Retail warehouse management system works along with order management system and inventory management systems to provide high-end services looking after the order from beginning to end.
All the procedures are automated and data is synchronized to a single platform for stress-free analysis by merchants. Workflows can be customized to enhance logistics procedures and reduce business costs. BI Reporting tools let merchants analyze areas where improvement is needed. Data from multiple inventories and warehouses are synchronized and presented in a single report because Ginkgo Retail is an Omni channel solution. Brands can easily deliver orders through 3PL logistics services with Ginkgo Retail.
3PL logistics is the most efficient way of delivering parcels to the customer’s door which not only earns you customer satisfaction but also saves time and money. To manage orders effectively, integration of 3PL logistics services with modern technology software is essential.
A tech savvy, working in the capacity of software Product Owner and has experience in B2B SaaS based products.
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