Is Your WMS Leaving 3PL Money on the Table?

The Importance of Using a WMS Capable of True 3PL Billing

In the fast-paced world of third-party logistics (3PL), efficiency and accuracy are paramount. One critical aspect that sometimes receives less attention than it deserves, because it's assumed to be straightforward and simple in nature, is the billing process.

If your 3PL operation is still billing manually, there’s very little data available to help you capture all of what you’ve earned, or to help you make smarter business decisions week over week and month over month. Are you allowing unidentified revenue to simply escape, because it’s too time consuming to track?

While basic invoicing might seem sufficient for small to medium operations, a WMS capable of true 3PL billing can offer significant advantages that can transform your operations from small to medium or from medium to large. Here are a few reasons why investing in a robust WMS for 3PL billing is so important.

Enhanced Accuracy and Reduced Errors

Basic invoicing systems often rely on manual data entry, which is prone to human error. Mistakes in billing can lead to disputes, delayed payments, and strained client relationships. A WMS designed for 3PL billing automates the entire process, from data collection to invoice generation. This can ensure that every charge is accurately captured and correctly billed. This level of automation minimizes errors and enhances the overall accuracy of your billing operations.

Customization and Flexibility

While each 3PL client has unique needs and billing requirements, a WMS with true 3PL billing capabilities allows for extensive customization of invoice templates and billing rules. Whether it's charging for storage space, handling fees, or value-added services, a sophisticated WMS can accommodate various billing structures and contract terms. This flexibility ensures that you can meet the specific needs of each client, fostering better client satisfaction and retention.

Comprehensive Data Collection and Reporting

A WMS capable of true 3PL billing provides comprehensive data collection and reporting features. This means you can track every billable event, from receiving and storage to picking and shipping. Detailed reports offer insights into your operations helping you identify trends, optimize processes, and make informed business decisions. This level of visibility is crucial for maintaining transparency with clients and improving operations efficiency.

Improved Cash Flow Management

An accurate and timely billing process is critical for maintaining healthy positive cash flow. If your WMS doesn't have advanced 3PL billing capabilities, it can't ensure that all possible invoices are being generated promptly and accurately. With proper 3PL billing, your WMS can reduce the time it takes to get paid. Automated billing processes can also mean fewer disputes and faster resolution of any issues that do arise... also improving your cash flow management.

Scalability and Growth

The complexities of your billing processes are bound to increase as your 3PL business grows. This is a good challenge! However, your basic invoicing system may not be able to keep up with your increased volume and variety of transactions. A WMS designed for 3PL billing is scalable, allowing you to handle more clients and more complex billing scenarios without compromising on accuracy, speed or efficiency. This scalability will support your business growth and help you stay competitive in a competitive market.

Conclusion

Whether your most pressing warehouse/ 3PL accounting and billing issue involves pallets, unique storage scenarios, pick & pack, quality controls, reverse logistics, pick tour complete, receipt close, renewals, variable rates, ship close, calendar vs fiscal years, grace period, anniversary date, different units of measurement or organizing by lot codes, a superior WMS can make the difference between growth or stagnation.

Investing in a WMS capable of true 3PL billing is not just about improving your invoicing process; it’s about enhancing your overall operational efficiency, client satisfaction, and business growth. By automating and customizing your billing processes, you can reduce errors, improve cash flow, and gain valuable insights into your operations. In the competitive world of 3PL, these advantages can make all the difference.