Blog-> What Is 3PL, How SBSA Handles 3PL and Dropshipping Automation.
SBSA Technologies has proven high efficiency in the supply chain industry. We have created a clear and smooth flow in automating document exchange among retailers, logistic companies, 3PL, and a variety of business partners with minimum human involvement.
The successful results has been accomplished using precise mapping developed by different accounting, logistic, and operational professionals. The communication has been enhanced by optimizing EDI and API technologies.
SBSA Technologies platforms do the work for you and your employees. In the following article, it is discussed how you can cut on labor cost and make your processes more efficient. In turn, the improved process efficiency will allow your company to grow.
Companies involved in retail and e-commerce industries typically use three types of shipping locations to get the products to their customers.
The first type is when a company keeps their own inventory in their warehouses.
The second one is when a company stores inventory in a 3PL warehouse, which also handles fulfillment and logistics.
The third type is drop-shipments, also called brokerage. These are sales orders that are received by a company but shipped straight from their vendor’s location to their customer. In this article, we will discuss the 2nd and the 3rd types of shipments, 3PL and drop-shipments.
Businesses that prefer to outsource their inventory and fulfillment needs typically use 3PL or third-party companies. These companies store their products and manage precise inventory. Additionally, fulfilment is commonly provided as a service. Most 3PL will receive your product, manage an accurate inventory, pack, and ship.
These 3PL companies require automated communication between your company and the 3PL software. For example, if you sell your product on Amazon, Walmart, and other retailers, all the orders that are received by your company need to be sent to the 3PL company for fulfillment. This is where the EDI technology comes in place. Your assigned EDI platform will receive your sales orders via EDI communication and sends them for fulfillment to the 3PL warehouses.
When a company is using their vendors to ship products from the vendor location straight to a customer, it is called drop shipment or brokerage. Many companies find that it is less costly not to warehouse products that are sold rarely. In general, storing products in your own warehouse is costly and demanding in terms of fulfillment and managing an inventory system.
A good example of an efficient dropships is Amazon. Today, Amazon has multiple fulfillment locations throughout the world. However, the company also has a portion of their business that is fulfilled by their sellers and their vendors locations. These are items that there is demand but not as strong as items that are shipped on daily basis.
That use vendors to ship straight to their customers SBSA Technologies focused on how to make drop shipping simpler than it was before. In this platform that we've developed is that all orders are received under one convenient screen. SBSA Technologies platform automatically identified the products that are meant for drop-shipping. One click away from the operator a purchase order is generated and automatically send out the order to the vendors email address associated with all the necessary documents such as Shipping labels, packing slips, PO (PDF printable file), and BOL for LTL orders. At this point in time, the vendors are in the position to provide the tracking number and ETA to the customers.
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Written by Vince Ivanov, MBA
Property of SBSA Technologies, Inc.