Despite being a popular and essential service across the globe, cold storage is a tricky business. Even seasoned entrepreneurs think twice before venturing into this sector. The minutest mistake can result in financial losses as it deals with a large assortment of perishable goods that require special storage conditions. Its close association with volatile industries such as logistics and transportation make this field even more slippery.
However, fat profit margins have been enticing many entrepreneurs to dive into the risky business. With the advent of advanced technology such as 3PL software and cold storage management systems, the cold storage business has become more profitable than ever.
Additionally, Technology solutions have helped reduce losses alongside boosting profits multifold. As many more entrepreneurs venture into the e-commerce space, 3PL software has become an almost integral part of cold storage and most businesses. Before understanding how computer software can help boost your business, let’s briefly understand what exactly the 3PL software is.
What is 3PL software?
Third-party logistics is widely known as 3PL in the logistics and transportation industries. It means that the company outsources the entire order fulfilment process and management to another company rather than doing it on its own. If not done properly, it can harm the reputation of the seller or service provider. All thanks to technology, the order fulfilment process has now become more streamlined and reliable. Capable of filling gaps in the supply chain, 3PL logistics software in Canada brings transparency to end-to-end processes like inventory warehousing, picking, packing, and shipping. The software provides a full view of the order fulfilment lifecycle to both the seller and the consumer by integrating data from multiple sources. Also, the data further enables the seller to make informed operating decisions.
How does the software work?
The prime objective of the software is to reduce redundancies across the supply chain and automate as many processes as possible to ensure customer delight. EDI (Electronic Data Interchange) is a widely used technology in 3PL software. Also, Converging several systems, EDI allows manufacturers to share documents and transactional information with their vendors, suppliers and brands. Eliminating redundancies, the EDI system makes the entire process quick and accurate.
Why do you need the 3PL software?
3PL software provides quick Return on Investments (RoI) by offering multiple benefits. In addition to that, it makes the intricate supply chain process easy, hassle-free and transparent, assuring client satisfaction.
- Expand customer base:
If you are planning to enter into new markets or expand your existing customer base in Canada, you need 3PL logistics software in Canada. It will open doors to unforeseen opportunities by creating positive consumer experiences. Hence, you will be able to control and manage your supply chain more efficiently which will give you an edge over your competitors.
- Save Transportation Costs:
Transportation is the backbone of any industry. It helps products reach their end consumers. Most industries spend 30% of their total expenses after transportation. In the cold storage sector, transportation is even more crucial. With the soaring fuel prices, the companies will have to spare more budget for transportation in the coming days.
- Investing in 3PL software
Investing in 3PL software can help you considerably cut down transportation costs. It can help companies carry out the supply process with a smaller number of carriers, ensure timely delivery at a reasonable rate and cushion against rising fuel prices. The software guides carriers to take the shortest and most convenient routes, reducing risks of traffic rules violation. It further increases the road safety of the carrier, ensuring less expenditure after insurance premiums.
- Enhance Business Processes:
Logistics is a highly competitive business, and to survive in the industry, you have to be the best of all. 3PL software helps improve business processes, filling gaps across the supply chain. Technology has set the bar of expectations high for consumers.
- Enhance and standardize consumer experience
3PL software in Canada ensures that these expectations are matched, and even surpassed. It further helps enhance and standardize consumer experience across all geographies and modes of communications like in-person conversations. Eliminating the need to manually enter details and send orders. 3PL software can empower sellers to integrate online storefronts to warehouses to send automatic notifications every time an order is placed. The automation brought across the chain reduces the need for human intervention and lowers the risk of miscommunication and errors.
- Bring Visibility to Supply Chain:
Any ambiguity in the supply chain can cost logistic companies a bomb. In the era of online reviews, it does not take long for consumers to spread a word of mouth about a particular company which may lead to a decline in the business. In order to ensure that the product reaches the consumer exactly as planned, it is important to bring visibility across the supply chain. 3PL software can help the user track shipments, check their routes and generate alerts in case of deviation or disruption. It also loops in customers by providing them with essential details like the ETA of the shipment. Apart from this, 3PL software help logistics companies manage workflow in a warehouse by keeping track of receipts of inventory, storage, order management, fulfilment and shipment. This enables logistic companies to deploy their workforce efficiently.
- Help manage finance:
In the logistics industry, finance is a complex matter as it involves letters of credit, the opening of accounts, freight audit payments, customs duties, and road taxes. The business is highly vulnerable to natural disasters and geopolitical tensions. Managing finance through 3PL software can help keep records, avoid penalties and expedite payment collection processes.
- Customize your business
3PL software can help you customize your business as per your preference and convenience. This way you can focus on your core competencies rather than worrying over petty issues. Enabling you to comply with the international and local government regulations, the software helps you reduce delays that may burn a hole in your pocket.
What to look for while selecting a 3PL software?
Just like all other business investments, one should weigh all the options well before selecting a 3PL software for optimum RoI. Making a wrong choice can harm business and can make you lose precious clients. Here is the list of questions that you should ask yourself while purchasing 3PL software.
Does it use the latest technology?
In the times when even our smartphones need a software update every few days, one should definitely choose a 3PL software that is crafted using the latest technology. WMS technology is extremely efficient in automating processes and reducing errors. Choosing software with the latest technology may look expensive at a first glance, but it will prove cost-effective in the long run.
Is there room for growth?
Purchasing 3PL software is a long-term business investment. If you scale up your business during that period, the software should be able to keep up with your growth.
Does it help you fulfil regulatory requirements?
Taking care of regulatory requirements in a logistics business is a cumbersome process. You should select a 3PL software that can help you comply with rules and regulations by timely generating notifications and alerts.
Does it help you manage multiple clients?
Logistics service providers are always fulfilling the demands of multiple clients. The software should be capable of managing the requirements of multiple clients, and in fact, an ever-growing client base.
Does it ease your billing functions?
Lost and unpaid invoices can deal a blow to your business. Before purchasing the software, you must understand how it will help you carry out billing functions with accuracy.
Most features of a cold storage management system are similar to 3PL software such as tracking co-packing, re-packing, customer billing, updating and maintaining customer web portal, inventory management etc. With the use of technology, businesses across the globe are flourishing. By paving a way for technology solutions in your business, you can expedite business growth, reduce losses and create a firm client base by providing satisfactory services.