How WMS can overcome 3PL challenges through integrated solutions
The third-party logistics (#3PL) industry may be entering its most challenging era yet.?When it comes to modern ecommerce, 3PLs have become essential for managing complex supply chains and order fulfillment around the globe.
3PLs provide make-or-break support for managing the logistics of high-volume order fulfillment—and #ecommerce brands are undoubtedly placing a lot of trust in 3PLs not to let their business fail.
Dive in and discover the challenges that 3PLs face every day, from the complexities of fulfillment to navigating billing intricacies. Rest assured! We'll also uncover innovative solutions to overcome these hurdles.
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What to Look for when Selecting 3PL WMS Software?
Order fulfillment is a complex affair. It’s a multifaceted process that begins when a customer places an order for items they need. ??These items are then picked, packed, processed, and dispatched.
Simple enough, right?
Of course, this is not always the case. The entire process can turn into a logistical nightmare unless you have the right WMS software for 3PL to help you with your warehousing operations.
Selecting the Right 3PL WMS
Here are a few things you need to consider when choosing the right system for your warehousing operations.
Multiple Client Framework??
Choose #WMS software for 3PLs capable of managing order fulfillment and?inventory for multiple clients.
Value??
Look for WMS technology that meets your warehousing needs and is chock-full of features that automate your 3PL operation processes. Consider #SaaS software rather than on-premises solutions. SaaS products fully leverage the power of cloud computing, making modern technology more accessible, yet generally offer lower up-front costs and faster time-to-value.??
Scalability??
Your company has outsourced (or is thinking about outsourcing) to a 3PL provider because it has grown to the level where you can no longer manage the supply-chain process in-house. Ensure the software you select can scale along with your organization.
Up-To-Date Technology ??
The 3PL WMS Software you go with should run on the latest technology. It should be capable of streamlining and automating processes while reducing costs and keeping errors to a minimum.
Learn more about who uses 3PL WMS software and discover essential considerations for selecting the ideal 3PL WMS solution in the full blog.
Top 3 Challenges of 3PL Billing (And How a WMS Solves Them)
While the growth of ecommerce does provide an excellent opportunity to take on more clients, inventory and online orders, it’s important that you have a dependable WMS in place to handle the complications that come with 3PL #billing and invoicing.
There are three primary challenges when it comes to 3PL billing and invoicing. Let’s talk through each one and how WMS solutions can address them through smart #automation.
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?? #1: 3PLs have multiple clients with different customer agreements.
Overseeing logistics for a single client is one thing. Tracking billable services and generating accurate invoices for multiple clients – each with their own unique fulfillment needs SLAs and contract rates – is far more challenging. In short, there’s too much to account for manually without risking mistakes.
? WMS Solution: A good WMS offers flexibility to support a variety of client relationships, the ability to be updated as relationships and operations change, and easy configurability to support different contract terms. Moreover, it can aggregate the appropriate information (i.e. billable events and pricing structures), keep calculations separate, and produce reports that break down the invoices for each individual client.
?? #2: 3PLs have a wide variety of billable services.
3PLs oversee a wide variety of services, rate structures and discounts for multiple clients. At the end of each billing cycle, you are expected to be able to recount all your billable processes and the exact costs attributed with each.
? WMS Solution: A tier-1 WMS tracks all the inventory moving through your warehouse, as well as various integrations being used to execute order management and the fulfillment activities taking place throughout your distribution network. It can differentiate between your 3PL clients, associate the correct billable events with each, and automatically use the correct rates to generate accurate invoices based on your established automation rules.
?? #3: Your warehouse inventory is constantly changing.
As ecommerce continues to accelerate, finding a way to track perpetual inventory is more important than ever. In order to bill your clients, you must be able to accurately monitor each aspect of your client’s inventory logistics: the amount of space used, length of time items sit in storage, how many items were received (and the types), and so on.
? WMS Solution: A WMS solution provides complete visibility and control over inventory levels and fulfillment logistics, taking daily snapshots of stock levels, changes in facility capacity, online order processing, and the fulfillment activities taking place for each of your clients. Whether you bill based on storage use, product details, or receiving, replenishment, order picking/sorting, and packing/shipping functions, a WMS keeps accurate records of it all in order to finalize billing calculations.
Discover the advantages of 3PL billing automation and find solutions to frequently asked questions about 3PL billing. ?? Read now.
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