It’s a known fact that production is never complete until goods get to the consumers. But how can companies swiftly deliver products to customers in the face of poor communication and transportation systems? One of the ways they do that is to consult third-party logistics (3PL).
3PL is an integral aspect of logistics and supply chain management that deals with outsourcing crucial logistics processes. It uses cutting-edge tools such as Softeon’s 3PL software and similar tools to combat communication issues and transportation difficulties. That way, it facilitates swift delivery of products, meeting customers’ needs.
Since technology is the difference between 3PL and traditional logistics, below are tools for 3PL operational efficiency and effectiveness:
- Warehouse Management Tool
3PLs are designed to carry out many tasks for different companies. These operations require a sophisticated system that can effectively multitask the functions while maintaining competitive advantages.
One of the best tools to perform multiple operations in the warehouse management system (WMS). The 3PL WMS allows high-end productivity and efficient performance of day-to-day warehouse activities. In addition, it can perform a legion of logistics tasks seamlessly.
Also, WMS frontlines the overall execution of 3PL warehouse packing, sorting, labeling, tracking, and delivery. It’s generally a tool designed to carry out tasks, assist in inventory performance, record intake, and inflow customization.
Furthermore, WMS allows custom configuration based on the needs of 3PL logistics companies. Other functions it can execute are labor management and freight tracking.
- Staff Management And Performance Tool
A company-staff relationship tool is significant in any 3PL organizational structure. It’s utilized for improved project management and ease of day-to-day recruitment operations. Indeed, if staff management is required for operational progress, a staff management tool is crucial to operational efficiency.
While hands-on experienced employees and experts are one of the recipes to manage 3PL operations, leveraging management tools can bring out the best in them. It is what most 3PL companies don’t realize. Of course, you need motivated teams to play a prominent role in 3PL services. But how do you boost employee morale if there’s no staff management tool (SMT)?
Aside from serving as a performance and collaboration tool, SMT ensures the satisfaction of workers and suppliers. It does this by looking into payroll management, streamlining employee-related activities, and ensuring system integration for flexibility.
- Business Intelligence Tools
A defining feature of business strategy is an innovation capable of translating action to results. This innovation is often a set of tools dedicated to performing acute intelligence in the 3PL business.
For 3PLs, business intelligence tools execute the predictive analysis. Teams use this analysis to foresee crises and to avoid them. Orders and priorities are also determined with the help of business intelligence tools.
Since 3PLs are process-driven, innovative tools eliminate any form of repetition common. Instead of repeatedly doing the same thing, a 3PL manager has to automate it and invest saved efforts in other areas of priority. Through planned time and effort, operational efficiency is guaranteed.
- Transport Management Tools
As simple as it may seem, conveying products and materials from one location to another requires expertise and care. As a preventive measure, the transport management system (TMS) has been designed to manage and monitor the movement of parcels.
Generally, TMS tools function to smooth out business cycles and resolve any functional difficulties that 3PLs face. The utilization and synchronization of TMS in the operational activities of 3PLs will help minimize costs and create a comprehensive solution toolbox to track products and materials.
Sometimes known as a transport management solution, TMS offers the visibility of logistics products. Likewise, it provides crucial compliance information as well as trade documentation. Anything needed to achieve a smooth sale and delivery of products in transit is covered under TMS, whether by land, air, or sea.
- Security Management Tool
Another crucial tool for 3PL is security management software. Every 3PL needs one, considering the surges of cyber theft and threats. Besides, implementing security features safeguard outsourced not only 3PL products but also preserves the company’s reputation.
More importantly, security tools are essential in protecting data loss and breaches. Since most 3PL companies operate online, they’re susceptible to data threats and manipulation. As a result, it could cause a significant loss to the company. So, to prevent such an occurrence, it’s advisable to deploy security tools.
Some of the tools they can use include cloud computing and data compliance. Others are in-house security measures such as password management and workers’ security orientation programs.
Effectively-managed operations yield results. However, they’re a function of technology. To achieve the desired 3PL output, you need to adopt tools. Using the software mentioned above will increase the credibility and performance reputation of your 3PL operations.