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Third Party Logistics

Can Integrated Technology Reduce Operational Costs For 3PLs?

In 2020, e-commerce revenue broke records and the demand seems to be here to stay. This identifies the need for Third Party Logistics (3PLs) partners to focus on innovation in order to meet changing customer demands. Focus should be spent on streamlining that tasks and processes involved with storing inventory, picking, packing, and sending orders placed on behalf of your online and multi-channel retail clients. 

3PL Integrations

Posted 03/08/2021

In 2020, e-commerce revenue broke records and the demand seems to be here to stay. This identifies the need for Third Party Logistics (3PLs) partners to focus on innovation in order to meet changing customer demands. This means that focus should now be spent on streamlining the tasks and processes involved with storing inventory, picking, packing, and sending orders placed on behalf of your online and multi-channel retail clients.

As retailers seek new distribution models to address and overcome the increased customer demand such as an interest in next day shipping, accuracy of orders and real-time updates, 3PLs have to stand out and offer an exceptional service. If you are one of the many 3PLs looking for new strategies to meet revenue goals and remain competitive, you may be interested in integrated technology and expanding to use an Order Management System (OMS) with additional warehouse management and multi carrier shipping capabilities.

Whilst there is often hesitancy to make the shift to implementing technology to automate processes, it offers many long term benefits. Technology boosts your production efficiency and makes operations faster, often removing the need to employ additional employees or seek additional warehouse space by getting orders out the door quickly and having a better overview of inventory.

So, let’s go back to basics on the benefits of integrations and get a handle on how the right integrated technology can reduce your operational costs.

What is a 3PL integration?

A tech enabled 3PL has the ability to integrate into a company’s warehousing and transportation procedures, as well as helps to streamline the storing and distribution of goods and/or services. Integrations can streamline workflows, increase the speed of fulfilment, count stock, and reduce errors. Investing in and implementing the right technology will ultimately drive down costs for you in the long term.

Mintsoft also integrates with accountancy systems, allowing straightforward invoicing for clients as well as other channels such as other inventory and warehousing systems so you can connect data from multiple sources, giving you and your clients a complete look into inventory levels, order intake, and help with decision-making.

How the right integrations reduce operational costs

Not only does automated technology help reduce costs by allowing your warehouse operatives to work more efficiently, but by using a cloud-based order management system offering innovative and developed solutions to your clients, you will attract a lot more new business.

If you are able to offer a cloud-based and mobile optimised area for your clients, with real-time data sharing and 24/7 access from anywhere on any device, this level of support can be priced into a retainer, and sold at a premium.

Revenue will organically increase when greater fulfilment capacities are realised, due to more accurate data flow, and you will be able to leverage your new super-charged technology as a selling point for your new and existing clients.

There are also the savings to be made from reducing or eliminating errors. These are typically made during manual data entry and the use of spreadsheets, and changing to an integrated system means that reporting, data collection, and analysis software isn’t reliant on operators alone. Mistakes can be costly and can also affect your relationship with your suppliers if they’re made frequently, so having the ability to send prompt (and accurate) data and information to suppliers and clients is another added benefit. 

It’s a trend your competitors are already looking at

In a study of 400 logistics professionals, 62% of third-party logistics warehouses placed an emphasis on data and analytics.

You may already have dashboards for real-time visualisation to track daily productivity, but taking a deeper overview with historic data and offering the ability to analyse and even predict on behalf of your clients can help you become invaluable. 3PL companies that automate their data systems will stand a far better chance of forging stable and sustainable relationships with their customers, especially when allowing them to operate at peak efficiency.

Although you might initially pay a little bit extra for a well-integrated API system, this is offset by the returns you will get back in customer satisfaction and new business. Getting started with Mintsoft is quick, easy and straight-forward, and our transparent and flexible pricing plans allow you to choose a package which suits your business needs – designed to allow you to scale up and down as needed. And in almost 99% of accounts, there is absolutely no setup cost involved at all. 

Once your platform is ready, our dedicated onboarding team will ensure you and your team are comfortable using the platform and will  be on hand to make sure you're getting the most out of the features offered on your dashboard. See how Mango Logistics use Mintsoft to meet their own, unique demands.

How to choose your integrations

There are two main options for 3PLs; either to create a bespoke solution to integrate your software stack seamlessly, or to choose a middleware solution. Simply, middleware is defined as software that acts as a bridge between an operating system or database and applications.

With a pre-built network of industry connections, Mintsoft can host all your integrations. In fact, we have over 150 pre-built integrations to all major E-commerce platforms, shopping carts, couriers, accountancy systems  and many other channels and systems. 

A bespoke solution can be expensive and needs to be maintained, and for any customisation, you will need to hire a web developer with the latest knowledge in logistics technology. This is why many 3PLs opt for the  support of an established system from a provider who already has the set up ready to go for your operation. However, not all software is equal to the task, so a little research can go a long way to helping you choose which one is right for your 3PL.

Using the right software solution, specifically designed for 3PLs will make your warehouse and logistics offerings diverse, versatile and agile, with additional capabilities and cost savings that can’t be achieved simply by adding more team members to the business.

How it works with Mintsoft and how can we help

Mintsoft's e-commerce and fulfilment software is a cloud-based OMS with specialised warehouse and inventory management features that can help grow your business and decrease your overhead costs by increasing efficiency, speed, and revenue.

In addition to performing as WMS, Mintsoft also has the capabilties to connect with other inventory and warehousing systems, so if your client uses a different one, you'll be able to seamlessly connect with it. 

Why not book your free demo to learn more about Mintsoft as you move to the stage of business?