The e-commerce industry is constantly influenced by the evolution of new technologies that positively impact the market size of third-party logistics.
3PLs are providers that allow retailers to improve their e-commerce with tools and infrastructures to automize retail order fulfillment, thus ensuring the punctual delivery of products and monitoring issues related to tracking, shipping, warehousing, and stock management.
By outsourcing these services to a 3PL, businesses can focus on their core competencies while still having access to the resources and expertise they need to succeed in e-commerce.
Many 3PL operate with a Warehouse Management System (WMS) – to manage purchase orders (POs) and streamline the picking process. However, most solutions require assistance in integrating e-commerce platforms with online shoppers. Implementing an Order Management System (OMS) in a 3PL operation is essential for providing flexibility to customers and maintaining a competitive edge as companies grow.
This article will discuss why 3PLS are increasingly adapting their businesses to address e-commerce challenges and how implementing an OMS can improve results for e-commerce companies.
What is a Third-Party Logistics Provider?
A 3PL, or third-party logistics provider, is an outsourcing company of logistics and supply chain management services to other businesses, such as:
- Warehousing
- Inventory Management
- Fulfillment
- Transportation and Freight Management
Nowadays, one of the main challenges for 3PL companies is finding new strategies to make e-commerce brands their main clients. This mutually beneficial relationship is supported by data, as Schlechtriem suggests:
“It is expected that by 2040 more than 95% of all purchases will be conducted via e-commerce”.
Michelle Schlechtriem
This implies that companies will benefit from a higher sales volume and that 3PLs will primarily store items with a quick turnover rate. To maintain optimal performance and to better answer e-commerce challenges, 3PLs should consider implementing a Warehouse Management System (WMS) with an integrated Order Management System feature.
To learn more about how 3PLs acquire customers, check out our post: How 3PLs Find Warehouse Customers
The Importance of Implementing an Order Management System to Improve E-Commerce
For 3PLs that don’t currently use inventory management software, an order management system with inventory mapping capabilities helps get a foot in the door of the e-commerce landscape without high upfront costs.
An OMS streamlines the entire process, making your operations more cost-effective than investing in costly integrations for your existing software while saving you time. With an omnichannel OMS, e-commerce brands can accept orders from different marketplaces and online outlets, validate them, manage returns, and track inventory and fulfillment.
This helps to ensure customers that inventory levels are correct, order tags are automatically created, and courier services are booked, with shipping updates automatically sent to the end user.
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Why Focusing on the E-Commerce Landscape is a Smart Business Decision for 3PLs
In today’s competitive world of e-commerce, businesses must adapt and evolve quickly. With 3PL order fulfillment, companies can stay competitive by accessing the resources and expertise they need to succeed. One of the main strategies is aligning their core business with the objectives of e-commerce companies, resulting in more orders to fulfill and manage. This partnership benefits both parties: e-commerce brands save on warehouse costs, and 3PLs enjoy increased business. If you’re a 3PL owner looking to attract e-commerce clients, Shipedge’s OMS can make a difference.
READ MORE: How E-Commerce Businesses Scale Their Operations
Optimizing Warehouse Operations for E-Commerce Success
In addition to implementing an OMS, 3PLs can optimize their warehouse operations to cater to e-commerce clients more effectively. This includes investing in automation technology, improving warehouse layout, and enhancing inventory tracking systems. By optimizing warehouse operations, 3PLs can increase efficiency, reduce errors, and shorten order fulfillment times, leading to higher customer satisfaction and a competitive advantage in the market.
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Introducing Shipedge’s Omnichannel Order Management System
Shipedge’s Order Management System (OMS) provides a centralized platform to manage orders throughout the customer and logistics lifecycle. This software enables efficient management of multiple channels and tasks to automate and streamline your processes.
A prime example that shows how an OMS can make an impact on the results of your business results is its ability to integrate various selling channels, such as Shopify, WooCommerce, Amazon, and Walmart into a single warehouse program. This capability allows 3PLs to control the number of products sold and improve their sales volume in the e-commerce field.
Enhancing Customer Service for E-Commerce Clients
By implementing an OMS, 3PLs can also enhance the level of customer service provided to e-commerce clients. Advanced OMS solutions offer features such as real-time inventory visibility, order status updates, and streamlined returns management. This ensures that clients have access to up-to-date information about their orders and can quickly address any customer inquiries or issues.
Preparing for the Future of E-Commerce and 3PL Collaboration
As e-commerce continues to grow and evolve, 3PLs must adapt to stay competitive and capitalize on emerging opportunities. Embracing advanced technologies, such as e-commerce demand planning software, can help 3PLs better optimize warehouse operations and improve overall efficiency.
By investing in an OMS like Shipedge and focusing on strategic partnerships with e-commerce clients, 3PLs can position themselves for long-term success in the rapidly changing e-commerce landscape.
To learn more about how Shipedge’s WMS and OMS can benefit your 3PL, click the button below to schedule a free demo with one of our technicians. We look forward to exploring this further in future articles.
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