Deliver Growth and Flexibility With the Best 3PL Management Software

When sales are accelerating but deliveries are piling up on the dock, it's time to think about engaging — or better managing — a 3PL delivery partner. For shippers, having a 3PL partner can take the lid off growth, allowing geographic expansion, supporting higher delivery volumes and inspiring confidence in their ability to deliver more products and a better customer experience.

For those 3PL partners, shippers are increasing the pressure to meet the expectations of their customers. 

They want lower prices, better delivery service level agreements (SLAs), greater visibility into delivery operations, convenient pick-up, and so much more.

That means that 3PL carriers need to be equipped to help shippers achieve their goals — no matter the scale. Logistics providers have to ask themselves "How can I help my clients become more competitive in a fast-changing marketplace?”

The answer: 3PLs must increase their productivity by improving their efficiency, which means boosting flexibility via the right 3PL solutions. 

Why Having the Best 3PL Software Matters

Manual data entry is both inefficient and costly. It also doesn't work for massive data sets. Shippers who want to expand their delivery volumes or geographic coverage have difficulties if they’re still relying on manual dispatching, route planning, and tracking; there's little hope of staying agile. Even for companies that have existing technology solutions, opaque and confusing integrations between systems can lead to the same result: Users are stuck spending time simply trying to cut through the complexity of their operations. 

Fortunately for both shippers and 3PL companies, there's excellent 3PL software that can automate and improve logistics processes while fully integrating into other enterprise software solutions.

The best 3PL software can automate driver management, improve visibility into inventory and delivery operations, enable customers to choose their delivery appointments, provide accurate expected times of arrivals (ETAs), enhance drivers' productivity, manage communications with customers and so much more.

By automating logistics processes, both 3PLs and their shipper clients can improve operational efficiency. Here's how the right software helps retailers and logistics providers alike:

Efficient driver management

To meet shippers’ needs, 3PLs have to ensure that they are maximizing the use of their internal and external vehicles and drivers. Modern 3PL software helps in staging and loading by enabling shippers to synchronize drivers with their warehouse to avoid having drivers wait long hours for an available loading dock. The right software for 3PL providers also helps ensure that each vehicle's capacity is maximized and goods are loaded in the appropriate order.

The ability to sync delivery prep, staging, and loading processes helps businesses shorten loading and unloading times, empowering drivers to finish more delivery tasks in the same time frame.

Plus, the best 3PL solution also lets businesses optimize routing based on different truck types and capacity restrictions (e.g. by volume or weight), so that they make the most efficient use of their assets.

Driver dispatching and scheduling

The best 3PL software offers automated driver scheduling and dispatching, allowing businesses to match orders and drivers according to schedules, skill levels, asset types, driver affinity with particular customers, and more. 

The right solution will also factor in regulatory compliance and driver breaks in dispatching and scheduling drivers. For example, some drivers are not allowed to drive without a break after driving a specific number of hours. With automated dispatching and scheduling capability, you can easily take into account how many orders drivers should complete before their required breaks, and then factor those breaks into the daily schedule. 

Automating and digitizing driver dispatching and scheduling helps 3PL companies make the most of drivers' hours and minimizes unexpected delays so goods are delivered to customers within promised delivery timeframes. When these complex bits are automated, you have the flexibility to make adjustments on the day of delivery to accommodate the unexpected without having to manually rework your entire schedule. 

Driver retention

High driver attrition costs both 3PLs and shippers a lot of money — which is why improving driver retention reduces operating costs.

The best 3PL solution should have a robust, easy-to-use driver application that offers tools that drivers will embrace:

• Driver updates: Drivers should be able to easily update fleet managers and dispatchers using the same app they use to manage their delivery assignments. Likewise, drivers should receive their daily schedules, route plans, and other instructions through the mobile app. This enables seamless driver management and smoother delivery operations. 
• Real-time visibility and effective communication: If the app also allows drivers to communicate with customers to minimize failed and late deliveries, you can keep customers up-to-date on when to expect deliveries. This can dramatically reduce not-at-homes. If those communications are automatically sent back to a centralized system, this can also give dispatchers and managers live visibility into drivers as they complete their deliveries. 
• Electronic proof of delivery: The driver app should help drivers collect digital proof of delivery including signatures, notes, and photos. Drivers save time since they no longer have to manually keep track of and submit proof of delivery or spend time looking for paper-based forms they’ve misplaced or lost. This gives 3PLs a much clearer record of each and every delivery — which is crucial to build trust with shippers. 

Every business has to be flexible these days. It's the only way to meet consumers' increasing demands and overcome logistical challenges. That’s why 3PLs need to ask themselves whether their current systems allow for easy integration and the ability to exchange information with ERPs, WMS, telematics and other applications in real time. It’s crucial to hunt down sources of friction in workflows that prevent you from providing quick delivery options or handling larger delivery volumes. It’s all about using your technology to stay flexible. 

Investing in the best 3PL software will help do that, if – and only if – the solution integrates smoothly with other platforms you use and has the capabilities you need to improve visibility, driver management, fleet and route optimization and automated customer communications.