The way we shop has been revolutionized by e-commerce. In this 3
Minute Explainer, we look at how multi carrier shipping software
benefits logistics service providers.
Shopping has changed — and with it, so has logistics. The global
pandemic resulted in skyrocketing online orders. While this was an
unprecedented event, online shopping has been exponentially growing
Last year, retail shoppers spent over
$4 trillion online. Forecasts suggest that by 2022, more than $5
trillion will be spent on online retail shopping.
All this activity means that third party logistics providers are
shipping more small parcels to more destinations than ever before. As
a result, a 3PL with systems designed to manage large orders of
freight will need a way to manage parcel shipments. Here we explain
the benefits of multi
carrier shipping software for 3Ls
Traditionally, 3PLs sent large shipments of freight to stores for
distribution. As a result, they worked with a small number of trusted
carriers to deliver these shipments.
These days, 3PL customers are likely to require their logistics
partners to provide both distribution to stores and to e-commerce customers.
A retailer with a brand based on customer experience and customer
satisfaction will expect their logistics providers to provide this
same level of customer service to online customers.
Relatively speaking, it is more complex and more expensive to send
one hundred small parcels to one hundred different customers than it
is to send one shipment of one hundred items to a single store.
Therefore, 3PLs need a way to manage parcel shipping costs.
With a multi carrier shipping solution, 3PLs can leverage better
carrier rates, more capacity, access different routes and increase
their delivery options.
Multi carrier shipping software allows you to easily compare
carriers, shipping costs and delivery times. It is also possible to
automate this process so that staff do not have to manually perform
this task. Automation, used alongside a 3PL’s with business rules,
ensures that the lowest cost service to meet the delivery requirements
is always chosen.
Large 3PLs can generally negotiate very favorable shipping rates with
parcel carriers. Despite that, it is possible that some of their
customers can negotiate even better rates due to their size and volume.
In such a scenario, these customers expect their logistics providers
to manage inbound and outbound shipments using the customer’s carrier
account to avail of the lower rate.
In order to do so, many 3PLs must manage their own carrier accounts
as well as customer carrier accounts separately. With a comprehensive
multi carrier parcel shipping solution, this is not necessary. A
best-in-class solution will enable a 3PL to manage all carrier
accounts — for both freight and parcel — from one centralized shipping platform.
Logistics is a competitive industry. Efficient logistics also
significantly contributes to the bottom line. This is why a number of
large e-commerce and omni-channel retailers have brought at least some
of their logistics operations in-house.
If a logistics company cannot provide the service their retail
customers need and expect for online orders, many will look at
Retailers expect that their 3PL partners will be able to respond to
consumer expectations. These may include a variety of delivery
options, including expedited delivery, reverse logistics as well as
repairs and replacements.
At the same time, logistics providers must be able to control parcel
shipping costs. A multi carrier shipping solution allows 3PLs to
manage carriers, ensure on-time delivery, and deliver at the lowest
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