What is a 3PL Warehousing Management System?

Virginia Miller

September 11, 2024

In this article

These days, eCommerce and retail companies are operating worldwide as the customer base has expanded. Since companies are expanding their operations worldwide, they are also opening warehouses internationally. However, opening a warehouse can take a lot of investment and manpower, even for maintenance.

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Therefore, many companies prefer to operate with third-party logistics warehousing systems established in different countries and places. So, what is the 3Pl warehouse management system, and why is it so beneficial for companies? Read on to learn more about such systems and new ways of inventory management. With 3PL warehouse management software, managing massive warehouses and their inventory is more accessible.

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Why Use The 3PL Warehouse Management System?

Now that we know what a 3PL warehouse is, the system can simplify your inventory management process and supply chain. The 3PL warehousing management system has benefits for small-scale as well as large-scale businesses. Small-scale businesses that cannot set up new warehouses in different places can use the WMS 3PL systems and warehouses. The benefits of the 3PL warehouse management system can be as follows-

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Stock Visibility

Most of the 3PL warehouse management solutions integrate the warehouse management software with the in-house ERP software. This helps in stock monitoring and visibility from anywhere. The integrated software enables you to gain real-time visibility of the stock and its flow out of the inventory. The inventory can be monitored, and the store can be tracked as it connects with the shipping services.

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Therefore, the stockpiling and shipping processes are linked, so the supply chain flows without any blocks. The stock is packed and sent to different delivery destinations without much manual intervention. Stock level, inventory tracking, and shipping status can be tracked with the help of 3PL warehouse management systems and software.

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Choosing an excellent enterprise-level software for inventory management can be the beginning of efficient warehouse management under the warehouse 3PL model. The third-party logistics model can be streamlined with suitable software that offers a dashboard for tracking inventory flow.

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Agility

The supply chain and warehouse management process should be agile to meet retail customers' demands. The market demand can go up and down, and according to the needs, the warehouse management system should respond. An established 3PL warehouse can handle different levels of order because it has all the manpower and software systems already present.

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The same level of setup can take months for a new warehouse. If your company wants to hit the ground running in any city, it should partner with a 3PL warehouse system that can handle different market demand levels. The warehouse systems can provide real-time updates and streamline the agile processes of the inventory flow.

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An excellent 3PL system can also manage the in-transit system of tracking shipments. Maintaining the agile processes ensures the constant flow of inventory and proper delivery of shipments. However, choosing the right 3PL warehouse partner with the right software and procedures is essential to meet the demand.

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Well-Managed Billing And Invoices

Billing and invoices are an essential part of the shipping and delivery processes. A 3PL warehouse management system also allows you to manage the billing and invoice generation process as any order is placed with the company. Choosing a transparent warehouse partner that helps you with financial management can help you manage the complete billing and shipping process. Many 3PL warehouse companies have advanced software to generate bills and invoices automatically. The automatic methods can reduce the hassle of manual ways and create more trust and accuracy.

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Flexibility In Payments

The advantage that 3PL warehouses give small enterprises is the ability to pay for orders as you go. The flexible structure of payment and the affordability of this model make the whole process apt for SMEs. The 3PL warehouses work based on volume and space taken up and the orders processed. Therefore, businesses pay through a percentage of their earnings.

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In one month, if the earnings are low because of low demand, the money paid to the warehouse is also less. Therefore, it is accessible to upscale or descales the processes as the business grows. The retail space or eCommerce segment works based on different companies' demands. If the demand is less, the company can descale; if the market is high, the company can upscale without any additional costs.

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Better Reporting

Because many processes are automated and digitized through the 3PL warehouse management system, generating insight reports related to inventory and customer activity is also easy. Client companies can log into the 3PL warehouse system and access the stored data. Advance shipping notices from the 3PL warehouse system can also be sent to customers so that they can plan the delivery and schedule pick-ups for the shipment.

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The portals of 3PL warehouse systems are suitable for eCommerce companies and customers who wish to get all the necessary alerts related to their shipments and orders.

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Better Customer Service

We have already seen how 3PL warehouses can improve reporting and better insight creation for eCommerce companies. The 3PL warehouses can also improve customer service and better experiences for customers. Customers are proactive today and need live tracking updates on the shipment's location. If the company can tell the customer where the shipment is on the delivery route, the customers will feel satisfied and leave the company's customer base.

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Live tracking with the 3PL warehouse management system can help create better customer experiences. THIS SOFTWARE TRACKS the UPC, the SKU, and other shipment details. Using multiple tools can streamline the entire process and provide customer details. This makes the whole process transparent for the customer.

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The delivery and packaging system has to be as advanced as the 3PL warehouse system to use these tools. The delivery and packaging system should include a barcode to track the shipment. The processes introduced by the WMS 3PL can reduce manual intervention and reduce the need for human workers in the warehouse. Machines can do the picking and packaging, and the tracking can be done with the help of software.

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Better Records

Record keeping for inventory management is an integral part of its process. All the activities related to the inventory are recorded in the record-keeping system of the 3PL warehouse. The in-warehouse transits and external transits are also recorded in the same system. The records of the internal and external transit data and order fulfillment can be used to do a complete audit of the warehousing when the time arises. The extensive record keeping through automated processes reduces the errors and gaps in the warehouse management processes.

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Order Fulfillment

The order fulfillment step of any shipment is the most crucial step of the eCommerce segment. Only when the order is fulfilled is the revenue taken into consideration. A 3PL warehousing company has all the essential features and processes for smooth order fulfillment. Order fulfillment happens faster if it is a reputed 3PLwarehouse with all the automated methods and tools.

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When your eCommerce company starts to deliver to a new location, the order fulfillment process must be fast and accurate. This is possible only with the help of a 3PL warehouse with all the functions and a good supply chain. The client company does not have to worry about the lengthy order fulfillment process and can see great results from customer experience. In a new location, there are many things that the company has to take care of.

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By outsourcing the order fulfillment process to the 3PL warehouse, the company can focus on other critical administrative functions linked with the setup. An integrated WMS system can efficiently streamline the order fulfillment process. A WMS with fulfillment software and customer handling software can be a great choice if you are planning to give up your warehouse management to a 3PL warehouse setup.

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The 3PL warehouse setup is trendy these days. However, along with the 3PL warehouse, it is also essential to choose the right software that manages the processes and monitors the whole setup for the client company. An order fulfillment software works alongside manual workers to completely streamline the supply chain and at least semi-automate the order delivery and update process. All the orders placed in the electronic mode via different portals are gathered at the WMS, and then orders are packed and sent out.

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The real-time inventory updates and order fulfillment software help create an efficient shipment management process.

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Logistics Management Process

Logistics and transport are essential factors in order fulfillment and other eCommerce processes. Door-to-door delivery depends heavily on the logistics management processes, and this can be streamlined with the help of WMS systems linked with 3PL warehouses. There are two types of logistics.

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One is generalized logistics which deals with generic things sent out to customers, like plastic products, gadgets, and furniture. Many 3PL warehousing companies offer general solutions to client companies. However, many specialized companies offer specialized logistics services for hazardous materials.

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Some 3PL warehouses also offer services through cold storage solutions for food and consumer goods products that are perishable. Depending on the niche that you want to operate in, you can choose a 3PL warehouse partner that specializes in different logistics. Most eCommerce companies go for general logistics as there are no hazardous materials to be shipped.

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However, if you are starting an international operation, you must see what is considered a hazardous material in that particular country. According to the new country's rules, you can start looking at 3PL warehouse partners specializing in those areas of logistics. When choosing the WMS partner, discuss your requirements and expectations and look for a WMS accordingly.

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Multiple System Support

The 3PL warehousing system has expanded and will continue to grow by size in the coming years. Because of its tremendous growth, many changes are happening in the sector. New systems and tools are coming up in the industry which can be used for multiple system support extended to clients.

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New software solutions are coming up in the 3PL warehouse sector, which will help you create the best inventory management system. The 3PL warehouse sector is pinpointing problems that can be improved with software and infrastructure at the right place. Therefore, the 3PL warehouse system is prevalent and supports client companies in multiple ways.

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Conclusion

3PLs offer countless benefits to businesses that use them to manage their supply chain operations. Whether you're looking for inventory management, fulfillment services, transportation services, or more, working with an experienced 3PL provider can make managing all these operations much easier and more cost-effective. Overall, a 3PL warehousing management system allows businesses to take control of their supply chain while having the added security of a trusted third-party provider. Ready to get started on simplifying your business processes? Look no further: trust Simpl as your reliable 3PL provider and take the headache out of managing inventory, fulfillment applications, and other supply chain analytics. Contact us today for more information about our services – we look forward to assisting you in making your business operations as smooth as possible!

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