Top 5 Reasons To Use 3PL Software

Use 3PL Software - Top 5 Reasons

With third-party logistics (3PL) companies in charge of logistics for other companies, trying to handle warehousing and coordinating transportation without the right tools can be extremely difficult. This is why 3PL companies use specialized software to design, program, and track supply chain activities on behalf of their clients.

Ideally, 3PL software provides warehouse and transportation management tools in a single suite, although using multiple software is also possible. Regardless of where these tools come from, 3PL companies can expect these five major benefits of using 3PL software:

1. Improved accuracy

Accuracy is a key factor that determines the success or failure of your business. When you make errors, you risk losing your clients to your competitors since customers prefer brands that produce accurate results. For this reason, you need to boost your accuracy in product fulfillment. This means that you should ship the correct product to the correct customer, at the right time, and in the expected condition.

Processing order fulfillments manually can be tedious and error-prone. By using 3PL software, you can eliminate errors in your transactions, which means you can expect the following:

  • Increased client satisfaction and loyalty: When you deliver goods to your clients on time and in the right condition, you satisfy their needs. This makes them more likely to book your services again in the future.
  • Reduced reverse logistics: You do not want a situation where a customer returns products due to delivery errors. Retrieving a product that has to be sent back and replaced costs time and resources for the customer, the client, and the 3PL company.

2. Enhanced transparency

By using 3PL software, you increase the transparency of your operations. Improved openness ensures you can re-analyze areas of ineffectiveness and lower risks like defective items and shipment errors. This enables you to build trust with your clients and earn their loyalty to your business.

Moreover, with 3PL software, you can combine every supply chain data in a central location. In essence, you can set up up-to-date reports, operation reviews, and shipment monitoring in your clients’ portal for an outstanding experience.

3. Time and cost savings

Another crucial reason to use 3PL software is to save on time and cost. By saving time, you can focus on the core business activities. Below are some ways 3PL can save your company time and improve your productivity:

  • Makes billing faster: Processing billings and audits manually can indeed be time-consuming. Luckily, 3PL software automatically does this, thus facilitating faster payments.
  • Automatic performance reporting: To see how your business is progressing, you ought to create reports, say, daily, weekly, or monthly. This can be a tiresome process should you decide to do it manually. 3PL saves you time by consolidating the requisite information automatically and evaluating it for you.

3PL software can constantly update you with the most recent supply-chain information, enabling you to make more informed decisions. This goes a long way towards appropriately handling and distributing logistics expenses, eventually reducing operational costs and making more profits.

4. Ability to test international markets

3PL software allows you to evaluate any influx of orders or inquiries based on geographical sources.  If you notice that some inquiries are coming from customers in other countries, then it might be time to set up a warehouse in those countries to enable faster distribution of goods.

However, at the start, it’s recommended not to go all in by hiring many staff and renting huge spaces. You can use 3PL software to assess the percentage of these inquiries that convert to actual sales. If the number is significant enough, you can proceed to invest heavily in such markets and efficiently serve your customers.

5. Seamless scalability

As your business expands, you may face difficulties as you may need a system that can handle a larger volume of your shipments. Other than needing extra equipment to be able to run your growing business successfully, you need to make sure your software can still handle the same processes at a larger scale. Luckily, 3PL software can adjust as your business gets bigger and satisfy the current requirements. Therefore, by using it, you can grow your business with less hassle and without the worry of the need to overhaul your systems.


3PL software plays a key role in the growth and success of your business. But like many other tools, there are dozens on the market, and so you’d want to choose wisely. An excellent approach is reading honest reviews and picking the one with an impressive reputation. Other than that, ensure the price matches your budget. Ultimately, you’ll improve coordination in your entire supply chain, which is critical for client satisfaction.


  1. “Importance of Accuracy in Order fulfillment: Dairy industry”, Source:
  2. “The Power of Transparency In Business”, Source:
  3.  “Speed Is The Most Important Thing For Your Business”, Source:—heres-why/?sh=6ae71cac69d2

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