Scaling Your 3PL Business: When and How to Upgrade your TMS

Now more than ever, third-party logistics providers (3PLs) like you face a tidal wave of challenges when planning for growth. From managing fluctuating and unprecedented market demands to integrating new service offerings, having a clear vision and the right technological support is crucial. 

When it comes to creating a foundation for business expansion, today’s logistics company needs to do more than select any general TMS; you will require a comprehensive suite that can adapt and thrive in the growing competitive environment. 

Signs It’s Time to Invest in Transportation Software

There are several tell-tale signs that indicate it’s time to upgrade your transportation software: 

1. Increased Manual Processes: If your team is spending more time on manual data entry, spreadsheet management, or phone calls to track shipments, it's a clear sign you need a more automated solution.

2.Limited Visibility & Integration: When your system can’t provide real-time updates, offer a comprehensive view of operations or integrate easily with new tech, it’s time for an upgrade.

3. Difficulty in Scaling Operations: If adding new clients or expanding services becomes increasingly complex and time-consuming, your current system may be holding you back.

4. Rising Error Rates or Fraud: An increase in shipping errors, misquotes, fraud, or customer complaints often indicates that your current system can't keep up with your business needs.

5.  Lack of Data-Driven Insights: When you can't easily access or analyze data to make informed decisions, you're missing out on opportunities for optimization and growth.

Recognizing these signs early and investing in advanced shipping software can prevent operational bottlenecks and position your business for sustainable growth.

Outgrowing Your Legacy TMS

Many businesses start with basic or legacy TMS systems that serve them well initially. However, as your business evolves, you may find that your legacy system is holding you back. Signs that you've outgrown your current TMS include:

• Inability to handle increased transaction volumes without performance issues
• Lack of advanced features like real-time tracking, predictive analytics, or AI-driven optimizations
• Limited customization options to meet your specific business needs
• Difficulty in integrating with modern cloud-based services or APIs
• High maintenance costs or frequent downtime

If you're experiencing these issues, it's a strong indication that your business has outgrown its legacy TMS, and it's time to consider a more advanced, scalable solution. 

As you recognize the signs of outgrowing your legacy system, it's important to understand the broader challenges facing 3PLs in today's market.

The Challenges to Scaling a Business

The 2024 Annual Third-Party Logistics Study reveals both opportunities and challenges. 

• Positive relationships: 95% of shippers report successful relationships with 3PLs, with 89% seeing improved service and 80% experiencing reduced logistics costs.
• Areas for improvement:
  • Data quality is a major concern for 57% of shippers and 32% of 3PLs.
  • Only 49% of shippers are satisfied with 3PL IT capabilities.
  • Integration barriers, data standards, and costs remain significant hurdles.

If you want to have a successful growth strategy, you need to have a strong technological framework. You’re searching for a system that has the most complete, flexible, and expandable tools to meet your changing needs. 

The Need for Real-Time Visibility and Automation

One of the biggest challenges in scaling a business is getting real-time visibility across the supply chain. According to KPMG’s “Supply Chain Trends 2024” report, digital transformation remains a top priority for supply chain leaders. The report highlights that companies are leveraging AI, machine learning, and advanced analytics to gain deeper insights into their operations and make more informed decisions.” 

When handling large business volumes, efficiency is paramount, and automation is key. KPMG notes that "automation… continues to play a crucial role in improving efficiency and reducing costs in warehouses and distribution centers." This trend extends to transportation management systems, where AI and machine learning are becoming essential for demand forecasting, load planning, and route optimization.

Adapting to Market Demands with Flexible Technology

The logistics industry is moving towards cloud-based TMS solutions, which offer more flexibility and scalability than traditional on-premise systems. 

Research by the ARC Advisory Group shows that the SaaS model is now the standard for TMS solutions, enabling businesses to scale their operations seamlessly without significant upfront costs. 

A Realistic Roadmap to Scaling Your Logistics Business

Case Studies: Real-World Applications of Advanced TMS

Implementing an advanced TMS can significantly enhance operational efficiency, reduce costs, and improve service levels. Here are some real-world examples of how 3G’s TMS has driven success for various companies:

Crane Worldwide Logistics: 100% growth in 3PL services

• 100% growth in 3PL services in one year and only needed one additional resource to needed to handle the additional volume due to automated workflows
• 500% growth in Quick Ship Portal volume in one month
• Expanded TMS usage to EMEA, LATAM, and the Caribbean
• Received a configurable solution that was flexible enough to fit changing needs

Dynamic Logistix: Fast Integrations and Greater Visibility. 

• Utilized the "most pliable integration hub in the industry."
• Achieved integration and go-live in 1-2 months, compared to the industry standard of 7-12 months.
• Enhanced visibility into shipments and operations.
• Enabled quick, informed decision-making, driving growth and customer satisfaction​ 

Leveraging the 3G Transportation Suite of Software

These are just a few of the many success stories that showcase the growth and success achievable with 3G. From substantial cost reductions and enhanced competitive positioning to improved operational visibility and customer satisfaction, the 3G Transportation Suite of software has proven itself as a vital asset for logistics companies aiming to expand their operations and sustain growth. With 3G, the future of your logistics business looks bright and promising.

The 3G Transportation Suite provides the industry’s most comprehensive, flexible, and scalable tools for 3PLs. It encompasses all the essential features—and more—needed at every stage of your operational journey, from initial setup to full-scale maturity. With 3G, you can be confident in having the right tools to navigate any challenge and achieve your growth objectives.

So, when selecting a technological partner, it's crucial to find one that meets your needs throughout every phase of your business operations. Check out their website to see how 3G excels, offering solutions that bring benefits to both small and large companies.