The History and Perks of Third Party Logistics Software in Warehouse Management

With time, the inclination of people towards online buying has increased rapidly, giving a boost to eCommerce businesses. The customer’s assessment of an eCommerce business is highly dependent on his/her delivery experience. For this reason, businesses often onboard third-party eCommerce logistics software and tools to oversee their shipping and delivery operations.

What is third-party eCommerce logistics software?

In general, eCommerce logistics software is a tool that helps the sender as well as the receiver in keeping a track of the timeline of the package. When these tools are provided by an entity outside of your own business, they are termed as a third-party tool or software (3PL Software).

3PL can provide multiple services - ranging from management of the transportation services to warehousing near the customer's delivery address. They do it all to provide a smooth shopping experience to the customers, on behalf of the eCommerce businesses.

The Evolution of 3PL and How 3PL Softwares came into existence

1970s: Warehouses began establishing during the 1970s. Now, instead of traveling directly from a distributor to a retail store, the products halted at an intermediate warehouse close to the buyer’s location, from where they were fetched by the customers.

1980s: The entire logistics operations slowly began centralizing and warehouses began expanding their reach by providing movement facilities for the stored orders to the customer locations.

1990s: With the rise and globalisation of the eCommerce industry, the third-party eCommerce logistics services helped eCommerce businesses in expanding their reach to domestic as well as international markets by effortless management of their delivery operations.

2000s: During the first decade of the 21st century, the popularity of third-party eCommerce logistics grew exponentially. Complex logistics operations such as warehouse management, transportation, tracking, etc. were integrated with the use of appropriate technology.

Lately: With the advancements in technology, the logistics infrastructure has changed drastically. The third-party eCommerce logistics software is designed to integrate multiple complex operations such as warehouse management, transportation, and tracking, with an easy-to-use interface that suits the customer’s expectations.

Merits of onboarding a third-party eCommerce logistics software for your online business

The third-party eCommerce logistics software is a complete package that encompasses various facilities such as real-time order shipping tracking, easy returns, affordable shipping costs, etc., thus enriching the overall customer experience. Below are a few reasons why an eCommerce brand should consider procuring a third-party eCommerce logistics software:

Increased efficiency and flexibility

The efficiency improves in terms of route planning, warehouse management, and prompt deliveries and pickups. Moreover, the delivery process is flexible and incorporates multi-drop deliveries as well, thus adding to the customer experience.

Scalability and Customisation

Third-party eCommerce logistics software grows with the business, i.e. it is scalable. When your business provisions develop down the line, the software can be customised to suit needs as per the requirement.

Real-time tracking and updates

The real-time visibility into every step of order movement is being emphasized by 3PL software to ensure a fast and secure shipping experience. This also enables users and eCommerce businesses to report and resolve issues at once.

Cost-effective and Up-to-date

The third-party eCommerce logistics software complies with the latest developments in technology and is not heavy on the pocket. Due to its well-established infrastructure, 3PL software also helps in overcoming hurdles that may arise during shipping at nominal costs.

Order, warehouse, and delivery management and analysis

3PL Software organises the management of orders, warehouses, and delivery journeys under one roof. The eCommerce business owners can keep a track of warehouse stocks and order status, while the customers are provided timely updates about the delivery of their orders. All this data is available to the eCommerce businesses to analyse and act upon.

Summary

The third-party eCommerce logistics software can add great value to eCommerce businesses by simplifying the management of the entire shipping and delivery process. A well-designed and user-friendly third-party eCommerce logistics software can be fruitful for enhancing the shipping process in terms of speed, accuracy, and safety, leading to greater customer satisfaction.