3PL Automation: The Future of Logistics

Gone are the days when 1-day delivery stunned the customers; now they look for 10-minute and same-day delivery. In order to achieve this, sellers first need to address their current fulfillment issues and eliminate delays. 3PL (third-party logistics) service providers are the ultimate solution for fulfillment.

The global 3PL market is expected to cross $1 trillion by 2030, according to industry estimates. About 95% of the online retailers use 3PL for deliveries. A majority of Fortune 500 companies work with at least one 3PL provider, further highlighting its importance for online businesses in the 21st century. But it will require an upgrade in the coming years, which would be automation. 

3PL automation is the way to reduce errors and support faster fulfillment of orders. Shipping partners and online business owners have reported substantial improvements in operations with automation on the scene. This blog explains how third-party logistics automation is the future, so read and know why! 

What is 3PL Automation? 

Let’s break this down as third-party logistics + automation solutions. Third-party logistics refers to the outsourcing of fulfillment operations to a service provider to harness the expertise and vast network of the partner. Automation allows the sellers to process orders smarter, faster, and more efficiently. 3PL Automation gives easy delivery of goods with seamless data sync and error-free handling of orders. On the other hand, manual intervention can lead to multiple issues like delays, information mismatch, and errors. Hence, automation is an urgent requirement of your business if you wish to sustain in the market for longer. 

What Automation Technologies Are Changing the 3PL? 

While selecting a 3PL automation solution for the business, sellers need to keep some basic technologies in mind. This is what you ABSOLUTELY need in your business: 

1. Multi-Channel Selling Support 

Sales on multiple sales is like a mantra followed by every online business on the path to success. So, the automation solution should support multichannel sales and management of the same for effective long-term growth. 

2. Warehouse Management System

Automated 3PL solutions with a warehouse management system allow sellers to manage their storage units better. It gives way to easier tracking of stock and optimization of warehouse layout while providing real-time visibility into order and shipment status. 

3. Inventory Management Application

Logistics automation needs to inculcate inventory management. Without this, sellers will not be able to track stocks to confirm orders efficiently. Also, they will face issues with supply chain management and overselling. It gives way to seamless fulfillment of orders with quick response and easy inventory management. 

4. Automated Order Management

Order fulfillment is the ultimate goal of 3PL automation software, and an order management system is a must in this case. Only if the orders are efficiently communicated to the fulfillment partner can streamlined delivery happen. 

5. Reverse Logistics Technology 

The fulfillment process is not just about safe and successful delivery but also about returns and easy refunds. So, the right 3PL automation services will surely have reverse logistics technology that allows sellers to efficiently manage returns and refunds. 

6. Artificial Intelligence and Machine Learning 

Your 3PL automation provider should also incorporate AI and ML into the application so that the business works in line with technological updates going around the globe. It will analyze data and support further growth with fruitful suggestions and interpretations. 

What are the Benefits of 3PL Automation?

Fulfillment automation gives way to easy fulfillment and faster business growth. Here’s how it supports the business in the long term: 

1. On Time Delivery

When the entire fulfillment process is automated, delays are eliminated. Also, errors can be prevented for the final delivery to happen on time. It increases the order turnaround time and allows the seller to fulfill and accept more orders in a shorter time span.  

2. Increase in Productivity 

The human resources involved in the business do not have to work on the same redundant tasks daily. Their abilities can be put to better use, like business planning, product development, and ideation. 

3. Accuracy of Data Reports 

Automation allows business owners to track the store-related data more efficiently. Every sale, return, and fulfillment goes through the system and hence is recorded at the very source. Over-time the data is stored and compiled into reports by efficient software. 

4. Cost Saving 

Money saved is money earned, especially when it comes to the business. Sellers can save money with automation by reducing the need for human resources. It will also optimize inventory and cut down the cost of mistakes, further increasing profit margin.  

5. Customer Satisfaction  

When the orders are fulfilled on time, without errors, the business is bound to leave a good impression. Also, as the seller has more time to think and act on business, they will have more services and products to offer to their customers, adding another dimension to the business. 

Comparison Between 3PL and 4PL

Final Thought

On the concluding note, 3PL Automation is the future of fulfillment due to the enormity of benefits it offers. Now, automation won't happen on its own, so sellers need to look for automation software that can be integrated into their business for seamless data synchronization. Also, it needs to have all the above mentioned technologies to offer holistic growth to the business. MapMyChannel is the perfect choice here, ticking off all the checkboxes for the sellers to integrate and fulfill their orders with an automated system. It is a full-fledged software designed just for eCommerce business owners, simplifying their day-to-day operations. A few sentences might not do justice to the application, so go ahead and check it out for yourself while the New Year Offer is still available! Get. Set. Integrate!