Gaining Visibility into Your 3PL's Operations: What Ecommerce Brands Should Know

Brands are increasingly focusing on profitability over just revenue in our current volatile economic climate. Marketing drives revenue, but efficient operations are what truly boost your profit.

This is why gaining visibility into your Third-Party Logistics’ (3PL’s) operations is so important. You need transparency and the ability to track your logistics processes in real-time to ensure smooth, cost-effective operations.

Let’s dive more into the top tips for gaining visibility over your 3PL and what areas to focus on for Ecommerce growth success.

Work together with your 3PL

To achieve success with your 3PL, work collaboratively with them. Open communication is key—regular meetings and clear reporting will help align your goals. A platform like Octup can facilitate seamless information sharing and real-time tracking.

By working together, you ensure your 3PL understands your business needs and is committed to meeting your goals, ultimately enhancing your profitability.

Don’t ignore operations

Keep a sharp focus on your operations. Although your 3PL handles much of the logistics, you need to oversee and optimize these processes. Use a platform like Octup to monitor your 3PL’s performance, analyze data to spot inefficiencies, and implement strategies for improvement. Staying proactive and continuously seeking ways to refine your logistics will keep your operations running smoothly and profitably.

Ensure you have visibility over your 3PL

Since your 3PL manages a large portion of your operations, it's time to demand more visibility from them. This goes beyond just tracking shipments; you need a comprehensive view of all logistics activities, from inventory management to delivery performance.

Get detailed reporting and access to real-time data to make informed decisions and respond quickly to issues. Luckily, you can suggest Octup to help with this. Enhanced visibility allows you to identify trends, anticipate problems, and take corrective action swiftly, leading to a more efficient and profitable supply chain.

Specifics to look at in your 3PL

Visibility over charges

When partnering with a 3PL, the first thing you need is clear visibility into their charges. Understanding what you're being billed for and where your money is going is crucial for managing your logistics budget effectively.

Historically, 3PL invoices have either been too detailed, making them hard to decipher, or too vague, leaving you in the dark about specific costs. This lack of clarity can lead to overspending and budget mismanagement.

Octup addresses this by analyzing your invoices and delivering clear, easy-to-understand reports. We break down each charge so you know exactly what you're paying for, helping you manage your logistics costs more effectively and ensuring there are no hidden fees or surprises.

Fulfillment and delivery SLAs

The second key aspect to monitor is whether your 3PL is meeting their fulfillment and delivery SLAs (Service Level Agreements). Knowing if they are consistently hitting these targets is vital for maintaining customer satisfaction and operational efficiency.

If your 3PL is failing to meet SLAs, it's important to understand why. Are there recurring patterns or specific issues causing delays? Octup helps you track and analyze these metrics, identifying any patterns of underperformance. By providing detailed insights into SLA compliance, we enable you to address issues proactively, ensuring your customers receive their orders on time and maintaining the reliability of your supply chain.

Identifying stuck or delayed orders

The third critical area to focus on is identifying and managing stuck or delayed orders. Proactively handling these delays is essential for maintaining customer trust and satisfaction. Knowing which orders are delayed allows you to reach out to affected customers with updates or even offer a coupon code to mitigate any negative impact.

Octup provides you with real-time insights into order statuses, so you can quickly identify any issues. By staying informed about delays, you can take immediate action to manage customer expectations and maintain their loyalty, turning potential problems into opportunities for positive customer engagement.

Gaining visibility into your 3PL's operations is vital for boosting profitability and ensuring smooth logistics. By focusing on clear charges, monitoring SLA compliance, and managing delayed orders proactively, you can optimize your operations and enhance customer satisfaction.

Interested in giving Octup a try to gain operational insight like you’ve never had before? Try Octup free for 30 days.