Key 3PL Benefits: Lower Costs, Scale and Visibility
As a successful eCommerce business, you have a whole host of tasks to manage effectively, and eCommerce fulfillment tasks play a key role in your success.
Issues with order management, shipping, picking and packing, order processing and other tasks can pile up. When this happens, it creates a bottleneck that can overwhelm your business quite easily. Fortunately, there are several areas where technology can further support your eCommerce business. TMS platforms exemplify the Modern 4PL approach to content management systems, hence eCommerce businesses are only as good as the technology that powers them.
In this blog post, we'll explore 5 types of tech platforms and tools that all eCommerce businesses need to implement in order to achieve success and improve their fulfillment process.
OMS (Order Management Systems)
Your eCommerce business likely spends the vast majority of its time fulfilling orders. By digitizing this process, however, you can save time and increase productivity. Having a centralized system to process sales and orders efficiently makes a massive difference, as well.
A quality OMS manages all of the following:
- Holds inventory data and communicate and update quantities available after orders are completed
- Downloads order data from whatever variety of sales channels are used (marketplaces, eCommerce platforms, etc.)
- Manages the process of fulfilling orders by providing warehouse staff with orders that need to be shipped
- Generates shipping related documentation, such as invoices or packing slips, shipping labels and the like.
In some cases, an OMS may integrate with a separate warehouse management system that handles the actual generation of order lists and other order-related documentation. However, either way, a good OMS should come with most of the features you need with little need to integrate with other systems to accomplish it. There are OMS systems that even include additional features for drop shipping, purchasing, accounting, and more. These can be a healthy investment- but the value is in the efficiency and productivity boosts.
Shipping Tools
Shipping tools are another key component in eCommerce.
While OMS systems and shipping solutions may have some overlapping features, shipping tools are best described as solutions that have more specific benefits. Shipping tools are typically closely integrated with multiple shipping carriers, are able to shop and compare rates between shipping services, and can print bulk shipping labels quickly and accurately.
You may use a shipping tool in conjunction with an OMS to fill gaps in your primary system or add on shipping capability with non-compliant carriers.
Automation Technology
Automation is a rapidly expanding aspect of many industries, and in the world of fulfillment, new solutions are constantly being put to the test. These include solutions like pick and pass robots, voice picking systems, and pick to light.
Whether you operate warehouse facilities, distribution centers, or work with third-party logistics companies, you'll find that new automation technologies are constantly being added to the arsenal. A large majority of these are aimed at increasing accuracy and productivity in order fulfillment. With automation, you get lower labor costs and decreased touch/handling, as well.
Tracking and Performance Measurement Solutions
Whether utilizing an order management system, warehouse management system, or third party logistics company in conjunction with either, order fulfillment needs to have technology that tracks items and orders as they move through the system. It's also of great importance to have tech solutions that monitor and measure performance to catch any issues with bottlenecking, lost shipments, slowdowns, etc.
There are a variety of options in this area, including systems that offer real-time data and work in conjunction with the barcode scanners product handlers use when picking the product—or shipment tracking solutions via post. Data can be obtained a variety of ways- and having a system that provides this feedback is vital.
Third-Party Logistics (3PL) as a Suite of Tech Tools
One of the easiest ways to gain access to all of the previously mentioned eCommerce tech tools is to leverage Redwood's Modern 4PL approach to manage fulfillment.
When you partner with a 3PL that specializes in eCommerce fulfillment, you gain access to the latest management systems, WMS platforms and shipping solutions to create a completely streamlined fulfillment experience.
As your fulfillment partner, a 3PL invests in software solutions that take on the burden of what is typically the most vital and yet time-consuming part of your eCommerce operation. Leveraging the power of these platforms allows you to focus your attention on growing your business in other ways.
Final Thoughts
Taking advantage of technology rather than attempting to manually manage the burden of fulfillment is key to success. As the industry continues to grow, so too will the various support systems available to utilize.
Staying knowledgeable, or working with a specialist who is focused on fulfillment solutions can almost guarantee success. To learn how a 3PL and 4PL can significantly improve your eCommerce fulfillment process, contact us today at Redwood Logistics!
FAQs
What technologies are most important for eCommerce fulfillment?
The most important technologies for eCommerce fulfillment are an order management system, shipping tools, automation technology, tracking and performance measurement solutions, and a strong 3PL or 4PL partner. Together, these tools help you process orders, compare carrier rates, reduce manual work, monitor bottlenecks, and keep fulfillment moving efficiently across channels and warehouses.
What does an order management system do in eCommerce fulfillment?
An order management system, or OMS, centralizes order processing so you can manage inventory, pull orders from multiple sales channels, and generate shipping documents like invoices, packing slips, and labels. Some OMS platforms also connect with warehouse management systems, and more advanced versions may support drop shipping, purchasing, and accounting functions.
How are shipping tools different from an order management system?
Shipping tools are more specialized than an OMS and focus on carrier integration, rate shopping, and fast label printing. An OMS manages the broader order workflow, while shipping tools fill gaps in that system or add shipping capability, especially when you need to compare services across multiple carriers or work with non-compliant carriers.
Why is automation important in eCommerce fulfillment?
Automation is important because it improves accuracy and productivity while lowering labor costs and reducing handling. Common examples include pick-and-pass robots, voice picking systems, and pick-to-light technology. These tools are used in warehouses, distribution centers, and 3PL environments to speed up order fulfillment and reduce errors.
What should eCommerce businesses track in their fulfillment process?
eCommerce businesses should track items and orders as they move through the system, along with performance metrics that reveal bottlenecks, lost shipments, and slowdowns. Good tracking solutions may use barcode scanners at pick points, real-time data, or shipment tracking tools so teams can identify problems before they affect customers.
How does a 3PL help with eCommerce fulfillment?
A 3PL helps by giving you access to the systems and expertise needed to streamline fulfillment, including order management, warehouse management, and shipping tools. In a Modern 4PL approach, the fulfillment partner manages the tech burden for you so your team can focus on growing the business instead of handling every operational detail.
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