Optimization of outsourced logistics with a WMS

Outsourced logistics consists of entrusting all or at least part of logistics operations to specialized service providers. Thus, 3PL (Third-Party Logistics) providers are required to manage different types of activity within a single site or “multi-site” and must respond to very specific challenges.

The challenges of outsourced logistics

Unlike other types of logistics, outsourced logistics has 2 customers to satisfy : the companies that have used its services and the end customer . With this double burden, 3PL providers need to have impeccable management of their logistics flows. It is a complex world with many challenges to overcome in order to meet the demands of their market.

Flexibility and responsiveness to demand

Outsourced logistics is not spared from variations in demand, quite the contrary. Logistics providers must be able to manage seasonal fluctuations , peaks in demand, as well as the specific needs of each of the two clients. This is where 3PL logistics stands out, by offering flexible and personalized solutions , such as the automation of administrative operations for monitoring and invoicing of the service.

Cost management and resource optimization

By entrusting their logistics to a 3PL service provider, companies avoid massive investments in infrastructure (warehouses, vehicles) and in specific technologies. The service provider is therefore responsible for full cost control . This includes efficient management of storage spaces, good use of human resources, as well as minimizing delays and logistical errors.

Optimized logistics not only means reducing costs , but also improving the overall performance of the supply chain, while maximizing productivity and minimizing waste.

The key roles of WMS for 3PL providers

In order to effectively respond to the challenges of outsourced logistics, many 3PL providers rely on warehouse management software (WMS). This solution maximizes, among other things, logistics processes and provides real-time visibility on all operations.

Automation and precision of logistics operations

One of the main benefits of a WMS is the automation of many logistics tasks, such as receiving goods, inventory management , and order picking. Thanks to this tool, the 3PL service provider has better precision in order processing , reducing the risk of errors during picking, storage or shipping, for example. Delivery times can thus be improved and the high level of satisfaction maintained, both for corporate customers and for the end consumer.

Real-time visibility and traceability of goods

Another strong point of WMS is its ability to provide real-time visibility on logistics flows. This visibility allows 3PL providers to track every product movement in the warehouse, from receipt to shipping to order picking. Thus, it contributes to better management of stock levels and the anticipation of replenishment needs , avoiding stock shortages.

To this visibility is also added the traceability of the goods. The latter guarantees total transparency for the company's customers who have the possibility of tracking all of their data in real time, whether regarding their goods or their administrative operations.

How to choose the right WMS for your outsourced logistics?

The market offers many solutions, but not all of them are adapted to the specificities of 3PL logistics. Here are the criteria to take into account when choosing a WMS that will meet the needs of outsourced logistics:

Adaptability and scalability : Outsourced logistics has the particularity of managing several customers and therefore several references, to which is added peaks of activity. In this complexity, a good WMS must be flexible and scalable in order to adapt to the specificities of certain products, via the activation of modules, and/or rapid growth of the activity.
Interfacing with existing solutions : Many 3PL providers operate with management via an ERP and/or CRM. In this case, it is more than interesting to turn to a WMS that can interface with the solutions already in place in order to avoid information silos.
Management of pulled flows and pushed flows : The strength of a good WMS lies in its ability to be in “accompanied driving” (pulled flows) or “automatic piloting” (pushed flows) depending on the execution tasks. In fact, with the right WMS software, a container can be received and stored in less than 3 hours!