Many firms have turned to third-party logistics (3PL) providers to handle their delivery needs to concentrate on their primary expertise. Due to increasing orders, these companies have reevaluated their approaches and, in some cases, even grown to meet rising demand.
Recent research indicates that the warehouse management system (WMS) sector has grown from $1.37 billion to $3.04 billion between 2016 and 2022 and is likely to continue to grow. However, in third-party logistics, integrating a new company without hiccups isn’t always guaranteed.
Logistics companies should evaluate their current resources to support a business-to-consumer (B2C) company’s expansion and strategic objectives. Your ability to provide consistent deliveries develops trust and helps you earn more business. But if you don’t update your existing third-party logistics warehouse management system (WMS) software, coordination with clients might be challenging.
On the other hand, modern cloud-based WMS software offers a wide range of advantages that can prevent losing business due to logistics issues. This article details the process of modernizing your 3PL WMS software and other important information, such as benefits and how to prepare for integration.
On integrating a cloud-based WMS system
With the internet and digital technologies altering supply markets, changing customer buying behaviors, and increasing the complexity of the supply chain, fulfillment operations need a digitally connected solution.
In the cloud, WMS systems can deliver real-time visibility, scalability, and market reactivity to the connected customer. To properly integrate a cloud-based WMS system, you have to follow or consider these steps:
Access your current logistics needs
Before looking for a 3PL WMS provider, you must consider your current situation. Carefully check all facets of your current logistics system, and look for potential blockers that affect your process adversely.
Taking note of your challenges can be a great discussion point when coordinating with multiple potential software 3PL providers. These discussions help you filter the perfect system for your company.
Research potential warehouse management features
You must look at certain features to modernize warehouse operations. You need to look into eliminating data entry errors, automate repetitive tasks, and improve transparency in transactions.
In addition, evaluating the general characteristics of your WMS should be your first priority. Today’s state-of-the-art storage facilities utilize cutting-edge machinery and equipment. Because of this, your business must adapt to these technologies and utilize the most recent versions of your software. One of the most crucial features for enabling on-premise or cloud deployment is the ease with which it can connect to external systems.
Effective inventory management is also essential in today’s warehouses. Your WMS must be scalable in terms of dealing with stock levels, Automated processes, inventory transactions, order management, and detailed reports are a few other elements to consider.
Calculate your return on investment
Consider whether your new WMS improves stock accuracy while providing real-time information, decreasing errors, and enabling continuing inventory counting. Taking a look at staff productivity and whether this metric has affected your sales figures is also critical. Examine whether there are any labor, equipment, or space cost savings.
Take the time to create a spreadsheet outlining all your prices. Consider factors such as hardware and infrastructure while planning your budget and ROI.
Coordinate with your chosen provider
Meet and coordinate with your providers as much as you need. Assigning a designated point person is critical. Having a direct line with your provider ensures you have little to no interruptions due to software bugs, lack of information or communication, or other after-sales support.
Provide Training And Equipment For Your Staff
It’s easy to get caught up in keeping your 3PL software up-to-date and forget about investing in your staff’s education. The smooth operation of your warehouse depends on the competence of every one of your employees. Thus, investing in training your staff is crucial so they perform their specific tasks throughout the supply chain well.
In addition, your crew must perform all tasks in the simplest, most time-saving method feasible for maximum efficiency. You can only expect efficiency gains from your 3PL if they fully utilize and follow all best practice workflows.
However, some warehouse employees might not have enough experience or training on the technologies your warehouse uses. Implementing training programs is a great way to guarantee that your crew is compliant and experienced with the necessary warehouse management solutions many 3PL companies utilize today.
Takeaway
For a 3PL company, technological exhaustion doesn’t exist. You can’t be content with how well your logistics are running without making any efforts to improve or grow. If this happens, you risk losing both time and money.
Maintain momentum by keeping abreast of the newest technological innovations that help speed up order processing and improve warehouse efficiency.
