The third-party logistics sector is estimated to touch a staggering $1710.58 billion by 2027, registering a CAGR of 8.3%. It is also predicted to follow a similar trajectory in the US and therefore, it translates to handsome growth opportunities for existing players and new entrants as well.
In this article, we will discuss 10 reasons why third-party logistics business owners need to get a robust solution like 3PL Dynamics for encashing the market potential. Let’s get started.
#1 Modular solution
One of the greatest benefits of 3PL Dynamics is that the solution is completely modular, allowing you to support the entirety of your third-party logistics with little or no customization necessary, helping keep total expenses of ownership down.
The API-driven approach of 3PL Dynamics allows you to simplify your business processes through a common interface. The modular design ensures upgrades are simple and allows you to pick and choose the modules you want and add more on as you go to enhance the solution further.
#2 Refines logistics
Third-party logistics companies follow industry best practices and stay up to date with the latest technology developments. A 3PL enterprise software like Dynamics is capable of inventory management, gives visibility to monitor the entire process and advanced reporting in coordination. It helps employ just-in-time practices to clarify the correct amount of inventory is shipped when and where you need it.
#3 Seamless fusion with Microsoft Dynamics 365 Business Central
Another feature of 3PL Dynamics is its seamless fusion to Microsoft Dynamics 365 Business Central. Business Central is the market-leading ERP which controls your back-end processes such as supply chain management, Financials, CRM, and lots more. Business Central can be installed as a cloud, hybrid, or on-premises, helping it suit any business’s preferences.
As a Microsoft-recommended solution, you can enjoy the quick learning curve, easy-to-use layout, as well as fusion with other products in the Microsoft ecosystem, including excel, SharePoint, Power Platform, and Outlook.
#4 Scalability and flexibility
Using 3PL Dynamics allows you to scale up your entire last-mile supply chain including storage facilities, transport, and human resources based on your business needs. It allows you to integrate your platform with that of your clients along with various tools to create a robust ecosystem comprising of your stakeholders.
It allows you to economically utilize distribution centers situated across service regions to quickly ship goods without discrepancies at any level. Having a dedicated software allows you to take full advantage of this decentralized distribution capabilities and quicker delivery times at lower costs.
#5 Improve client convenience
To increase customer services and productivity levels even further, 3PL Dynamics comes with a web portal that gives up-to-date information about invoices, orders, goods-in & goods-out, and changes in inventories.
You can also offer your customers detailed reports at any time, update data and allow them to enter orders through the web portal. This self-service tool helps to reduce the number of emails and phone calls from customers, enhancing productivity and increasing satisfaction of your business and theirs.
#6 Save time and money
3PL Dynamics facilitates handling the bookings, paperwork, planning, training, audits, optimization, staffing, and billing involved to get your shipments where they want to go, within budget, and on time.
All of these activities fall into the category of clerical formalities but as a 3PL service provider, you cannot afford to compromise data fidelity or suffer duplication of work either. Falling prey to such issues will undermine the profitability of your 3PL business and hence, using an automation software is essential to maintain a single source of truth and to shred off additional workload from your staff.
#7 Boost your USPs
3PL service providers also need extended value added logistics which can be a lucrative segment for any company. Especially when export and new regions are concerned and therefore, having software is a must to keep operations streamlined.
3PLs need to provide volume discounts and relationships, which is essential to sound customer experience. This software enables you to select the resources, marketing offers, and service infrastructure that are most suitable for your business.
#8 Provides specialized technology
It provides you with a unified platform to improve transparency across all stakeholders. You can view and track your shipments and have access to a portal that provides real-time results.
You will also get real-time updates to inventory, delivery, and routes. 3PL Dynamics can also be used with your barcode software to automate monitoring at various phases.
#9 Constant optimization of supply chain
3Pls Dynamics has tools to reconstruct the usability of technology that ensures the proper amount of goods arrive when you need them and restructure the supply chain. 3PL Dynamics helps identify and eliminate redundancies in your business processes to streamline your chunk of the supply chain. Providing 3PL services with such a proper mediatoring tool will ensure constant improvements are made to your logistics process.
#10 Reporting and analytics
We all are aware of how important data is now, not only for your organization and business to check your performance but also for your clients to gain insights into theirs as well. That’s where 3PL Dynamics analytical capabilities and extensive reporting come into play.
Thanks to Microsoft Power BI, you can track your performance and learn about your business in-depth, it seamlessly integrates with Business Central and 3PL Dynamics to present your data in real-time, and access pre-defined reports to get up and running quickly and gain detailed insights into all aspects of your operation.
As we saw throughout the article, 3PL Dynamics can prove to be a versatile asset to implement, organize, and monitor your business strategies as a third-party logistics company. A tailored solution can provide you with even more advantages but its necessary to understand how well it blends with your business case and future line of action to make the most out of it.
Matt Robson is a technical content writer and Business Development manager at Solution PL. I am an enthusiastic Business Development professional. I assist our clients in the following areas: 3PL Solutions, Logistics, Technology, and Business.