Top 4 Mistakes That 3PLs Should Avoid To Cut Exceptions By 80%
Third Party Logistics (3PL), warehouse service providers, C&F and supply chain service companies are primarily responsible for fulfilling customer orders. 3PLs often operate in a limited scope and transfer most shipments to transport partners. The problem for 3PL businesses is that the shipments handed over to transportation or courier contractor have little or no control over them. In fact, 3PL will incur additional costs depending on the degree of the agreement.
Consequently, all delivery information should be doubly monitored and forwarded to courier suppliers. If you are shocked to hear that 80% of the courier exemptions can be avoided if 3PL can prevent the top four shipment difficulties.
- Missing/Wrong Consignee Contact details
- Mismatching Consignee Address details
- Incorrect Courier Booking
- Missing Booking Paperwork
Continue reading to find solutions to your issues…
Missing/Wrong Consignee Contact Details
If you provide the incorrect contact number or do not provide a contact’s name and phone number for your shipments, and there are issues along the road, your forwarded things may arrive late or not at all. The delivery person is also unconcerned if it is crucial medicine or toys for any child. We can’t chastise them for it, unfortunately.
Unless you are unconcerned about exceptions, it will not be your obligation. Simultaneously, you cannot simply confirm all of your consignees’ contact information at the first mile in order to anticipate and avoid delivery exceptions at a glance or on a new effort. So, before you start your paperwork, double-check with all consignees and validate their contact information, and double-check again before forwarding your things to any additional players utilizing your updated personal database. You can easily avoid 30% of delivery exceptions in shipment.
Mismatching PIN code and Place/Name and Address
You’ve already taken money out of your account and scheduled time for this transaction. And you’re well aware that if you offer the wrong address on a waybill, your cargo may be delivered to the wrong spot or end up laying in a warehouse. Despite the fact that this is not your fault, you will be forced to answer your clients’ inquiries.
For example, if the consignee’s actual address is Secunderabad (500003), a single PIN code error on the invoice address Chennai (600003) can affect the courier partner’s strategy and on-time delivery. In actuality, your courier partner will only arrange shipments based on PIN codes.
These are understandable problems, but only after the initial effort. A second occurrence cannot be prevented if you examine each freight’s invoice address before it constantly is dispatched. Because not all have up-to-date databases with consumer information. It is costly to purchase and use address validation software to eliminate address mistakes before shipments are handled. Therefore, you can efficiently use your own resources by contacting the recipient to collect the newest address and forward it to a top player based on a cost-cutting approach.
Incorrect Courier Booking
Even if we double-check consignee contact and address information, courier suppliers may book improperly. For every manual courier booking, the warehouse 3PL dispatch team must ensure that all delivery details are included in the courier booking copy. Due to a shortage of time, a courier pickup person may request to pick up shipments and make bookings at their hub. This is extremely dangerous and should be avoided at all costs.
Even with the correct information in the booking copy, there is one additional possible issue. All of these physical details will be entered into the system once the packages arrive at the courier’s origin hub. These steps can be readily automated by linking your IT system with the courier IT system via API (Application Program Interface). Courier API Booking not only reduces booking errors, but it also saves a significant amount of time. The pick-up person just takes the shipment, gives it over to the hub, and the hub connects to the long haul vehicle.
Missing Invoice or E-way bill
To advance your shipments swiftly and efficiently, you must have all documentation linked with each item, such as the commercial invoice, packing list, e-way bills, and shipment instructions, simply organized in a straightforward manner. Mismanagement, misplacing, or losing even one of these documents, particularly invoices, can cause packages to be misrouted, detained in hubs, and eventually fail to arrive at their destinations on time. Similarly, expired e-waybills may result in constant delivery delays.
In manual booking, it is also difficult to capture all of the invoices for a shipment. If your forwarder fails to deliver any of the invoices, you should be able to state and retrieve them from your customer by using the tracking number or the invoice number. With less resources, it is more difficult to check every single shipment the next day to see if it is connected or not. So, ensure that your system is capable of highlighting these shipments as soon as they are updated on your courier partner’s site.
By definition, 3PL organizations must achieve the correct balance between client expectations and courier vendor capacity. As a result, all necessary steps under 3PL’s control must be conducted with caution. The good news is that by avoiding just four mistakes, you can easily decrease 80 percent of the exceptions.
However, automation is essential to obtain this result on a constant basis. These jobs are simple to automate using software.
How ShypVisor Can Help You?
We at ShypVisor, built a Cloud based Shipment Management Software (SaaS) exclusively for Third Party Logistics (3PL) service providers, Supply Chain Service providers, C&F, Distribution companies. Salient features include Client & Vendor Rate contract management, Bulk order import through XL or API, Multi Courier Tracking, Bulk POD download, Claim management, Raising Client Invoice, Vendor bill validation, WhatsApp notification, Customizable MIS templates and many more. The software automates processes that otherwise require huge time, efforts, and manpower resulting in huge cost savings. There is no huge upfront investment required for the software as you can pay only for what you use on a monthly subscription basis. Get in touch with our experts for a quick tour of our solutions.