Many companies rely on new technologies in this digital era to enhance performance and achieve utmost customer satisfaction. According to Statista, the revenue in the software market is estimated to amount to USD$593.40 billion this year. It’s projected that the most significant contributor is enterprise software, which market volume is forecasted to be USD$237.10 billion. Also, software market revenue is expected to increase in the next few years at an annual growth rate of 6.50%, reaching a market volume of USD$812.90 by 2027.

This projected growth in the software industry shows most organizations plan to invest highly in software programs to improve efficiency. As a business owner, you can also outsource a third-party service that can provide exceptional services to your company using such innovative software. For instance, a 3PL company can help you manage vital supply chain processes such as ordering, shipping, and receiving with specialized 3PL software. This ensures clients’ orders are always on time every time.

That said, here are four reasons companies use 3PL software: 

  • It increases accuracy

Accuracy is a crucial factor that determines the success of supply chain management. In essence, customers tend to be loyal to brands that meet their orders in the most accurate way possible. Therefore, gone are the days of using manual approaches to process orders and distribute shipments, which is not only complex but also time-consuming and prone to errors. That’s why business owners now depend on 3PL software to boost accuracy in the following major supply chain areas:

  • Order fulfillment: 3PL software eliminates factors that may affect accuracy in order fulfillment, such as data entry errors or repetitive inputs. Such basic human mistakes may result in more significant issues like the distribution of wrong quantities, shipping to an incorrect address, or missed orders. Thankfully, with 3PL software, the supply chain team can ensure error-free processing and order fulfillment. Besides, feature-rich software also provides alerts when there are unprocessed orders.
  • Warehouse management: Because a large volume of supplies moves through a warehouse, companies must ensure efficient recording of all inventories. Luckily, 3PL software integrates the Radio-Frequency Identification (RFID) feature that enables tracking and fast identification of products. Therefore, companies can ensure more accurate inventory cycles.

Generally, improving accuracy enables companies to:

  • Boost customer loyalty: By timely shipping the correct goods, customers become delighted with the current services and will likely stick to the same brand for their subsequent purchases.
  • Avoid reverse logistics: This happens when customers return goods due to delivery errors. For instance, a client might have received the wrong package.
  • It saves time and money

Many business owners today want to take advantage of 3PL expertise and technology in the supply chain department to decrease operational costs and save time. According to Statista, the US 3PL market is expected to grow in the next quarters, and it’s estimated that it’ll generate a revenue of over USD$297 billion by 2023. Based on the reports, the industry has been experiencing an upward trend in revenue over the recent years, apart from 2019, when it dropped to USD$212.8 billion. However, it was followed by a hike in 2020 with revenue amounting to USD$231.5 billion.

This rapid growth shows that companies have obtained a cost-effective and hassle-free way of dealing with logistics. Here are three ways 3PL software saves time and money:

  • It allows automatic billing: Payment processing using 3PL software is instant as it automatically generates bills and receipts for all the transactions.
  • It facilitates faster reporting: To track performance, companies need to create reports daily, weekly, monthly, or annually. Doing this manually can be exhausting and might take longer. Luckily, 3PL software can automatically aggregate all essential data allowing you to generate optimal reports quickly.
  • It minimizes risks: 3PL software helps companies save money by reducing the risks associated with inefficient approaches. For instance, companies can save on the expenses required to replace returned goods.
  • It provides seamless scalability

Most organizations consider future growth when selecting the software for important business obligations like logistics. As a business grows, it’s more likely that you’ll handle an increased volume of shipments for many clients. Also, you may want to add transportation options or include new warehouse locations. Based on a global survey carried out in July 2021 by Statista among supply chain managers, 51% of the logistics executives revealed that transportation management is one of the most significant capabilities a 3PL software should have.

Fortunately, 3PL software has the capabilities to handle all large-scale processes without sacrificing efficiency. Besides, businesses can evaluate orders and inquiries from different geographic locations and determine whether expanding operations is safe. For instance, if there are many inquiries from foreign customers, companies can use 3PL software to calculate the percentage of inquiries that can translate into actual sales. If there’s a high potential, set up a warehouse in the appropriate location for easy distribution.

  • It increases transparency in the supply chain

3PL software enhances the transparency of all supply chain operations by providing a comprehensive view of all orders and distribution channels. Based on a recent survey, 50% of organizations have not developed a digital supply chain strategy. Even so, those that have harnessed the power of technology have had a broader view of their supply chain networks, improving efficiency.

Below are other ways the use of supply chain digitization can improve visibility:

  • It consolidates all your logistics data in a central location, ensuring real-time access to all information for rapid and efficient decision-making.
  • It allows geo-tracking so that you can monitor moving goods and provide updates to clients throughout the transportation process. In addition, you can set up shipment monitoring in the customer’s portal to allow clients to check their order status until pick up.

Also, because there’s a transparent supply chain system, you can quickly identify problems and decide on the optimal solution before it escalates. For instance, you can notify a customer early in case of delays in delivery and explain the delays.


Logistics plays a necessary part in the success of supply chain management. That’s why companies use digital tools like 3PL software to optimize all processes. It increases accuracy in inventory management, saves time and resources, is scalable, and provides real-time visibility. Therefore, as a business owner, you’d want to capitalize on the many opportunities 3PL software can bring to your business. Also, note that various 3PL solutions in the market today provide different functionalities. For that reason, you’d want to work with a software company with an impressive reputation to ensure your supply chain is well coordinated.

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