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Technology continues to change the way we communicate. As digital technologies merge and become more ubiquitous, customers are demanding more from e-commerce retailers. In online retail, they expect an effective and prompt service that includes same-day deliveries, accuracy, and responsive customer service.

To meet rising expectations, small e-commerce businesses are now using 3PL automation to enhance the experience for the customer. A 3PL software can provide shipping information and relevant insights in real-time. Here’s why third-party logistics applications have become a crucial tool for online retail entrepreneurs.

Speed-up the Decision Making Process

3PL can simplify many aspects of freight management. For one, it makes it easier to compare quotes from your shipping providers. Processing LTL quotes is often a repetitive process. Before automation, warehouse managers had to make multiple calls to find the quote that works for them.

But that is no longer a viable option, especially as your online retail grows beyond handling one or two orders a day. Today’s consumers want faster deliveries, so you have to cope with tighter schedules. You can avoid late shipments and an accumulating inventory by using an automated inventory management solution.

Reduce costs with Real-Time Tracking and Analytics

A 3PL system utilizes peak-fulfillment metrics to efficiently distribute inventory. The application taps into data from previous orders to find the best location for warehouses, which have now grown to over 17,300, distributed all over the country. You can reduce costs by applying advanced analytics to find the shortest distance for the goods to travel.

Keep in mind that LTL shipping, by default, does not optimize deliveries or help you find the best location for your shipment. That is on top of the fact that they can create significant bottlenecks in your shipping process.

Customers want prompt deliveries with minimal errors but are reluctant to pay more. With a 3PL application, you can eliminate overheads while keeping your business competitive. You can use data to analyze and enhance your processes without having to hire inventory experts. The system provides accurate information, which minimizes costs associated with inaccuracies during shipping.

Better Customer Service

In recent years, supply chains have gone global. As a result, inventory managers are facing new levels of complexity while trying to ensure their shipping process is timely and cost-effective. The shipping of food and fashion items often demands time-sensitive inventory management. When coupled with the challenge of rising customer demands, the process can be nerve-wracking for a budding online entrepreneur.

A transportation management system allows you to invest more time in your business. You can enhance the experience for your clients by using quality data and analytics. The application provides tracking metrics and provides reports in real-time from multiple locations. It frees more of your time so that you can focus on critical aspects of your business, such as customer service.

Scale Your Ecommerce Business with 3PL

According to one report, small-to-medium sized businesses that use a TMS system, have reduced their cost by 30%. Warehouse management solutions are simplifying the shipping process while making it more efficient and affordable to run. Now, entrepreneurs have a higher capacity to expand and scale their eCommerce ventures.

One way TMS solutions are helping SMEs scale is through enhanced visibility. Since online retail is increasingly becoming a global business, visibility across multiple locations is critical. A 3PL system can provide real-time analytics and data on the type of goods, location of orders, and last-mile delivery data.

Previously online businesses had to rely on a team of experts if they intended to scale. Delivering a significant volume of goods over multiple locations is a time-consuming and complex process. Hiring professionals, on the other hand, can have an impact on your bottom line.

In Conclusion

Digital technologies have been changing the way we work and communicate. For online retailers, it is a mix of opportunities and challenges. Customers today want prompt deliveries but without extra expenses. Ecommerce entrepreneurs have to deliver higher volumes while keeping overheads low. A TMS application is the solution that your business needs.

For more about 3PL and how it can enhance your inventory and shipping process, contact us now for more information!