SBSA Blog

How SBSA Handles 3PL and Dropshipping Automation: A Major Advancement in Supply Chain Technology

SBSA Technologies has established itself as a leader in enhancing supply chain efficiency. By automating document exchange among retailers, logistics companies, 3PL providers, and various business partners, we minimize human involvement, resulting in a smoother and more streamlined process.

This success is built on precise mapping developed by experts in accounting, logistics, and operations, all enhanced through optimized EDI and API technologies.

Grow Your Business with Efficient Automation in Logistics, Dropshipping, and 3PL

Companies in retail and e-commerce typically utilize three types of shipping strategies to deliver products to customers:

1. In-House Inventory: The company maintains its own inventory in its warehouses.
2. 3PL Warehousing: The company stores inventory in a third-party logistics (3PL) warehouse, which handles fulfillment and logistics.
3. Dropshipping: Also known as brokerage, where sales orders are fulfilled directly from the vendor's location to the customer.

This article focuses on the latter two strategies—3PL and dropshipping—and how SBSA Technologies automates these processes to cut labor costs and increase operational efficiency, ultimately enabling your business to grow.

What is 3PL?

Third-party logistics (3PL) companies offer businesses the ability to outsource inventory management and fulfillment. These providers store products, manage inventory with precision, and handle the packing and shipping process.

For efficient operations, automated communication between your company and the 3PL provider's software is essential. For example, if your business sells products on platforms like Amazon or Walmart, all orders received by your company must be forwarded to the 3PL for fulfillment. This is where EDI technology comes into play. Your EDI platform receives sales orders via EDI communication and sends them to the 3PL warehouse for processing.

What is Dropshipping?

Dropshipping, or brokerage, occurs when a company uses vendors to ship products directly from the vendor’s location to the customer. This method is often chosen by businesses that find it less cost-effective to warehouse products with lower sales frequency. Maintaining a warehouse for such items can be expensive and demanding in terms of inventory management.

Amazon is a prime example of efficient dropshipping. While Amazon has multiple fulfillment centers worldwide, a portion of its business is fulfilled directly by sellers and vendors, particularly for items with lower but still notable demand.

How SBSA Technologies Automates Dropshipping and 3PL

SBSA Technologies has revolutionized dropshipping by simplifying the process. Our platform consolidates all orders into a single, user-friendly screen. The system automatically identifies products designated for dropshipping, and with just one click, a purchase order is generated. This order, complete with all necessary documents—such as shipping labels, packing slips, a printable PO (in PDF format), and BOL for LTL shipments—is sent to the vendor’s email address. The vendor then provides the tracking number and estimated time of arrival (ETA) directly to the customer.

By automating these tasks, SBSA Technologies enables businesses to reduce labor costs and enhance process efficiency, paving the way for growth in an increasingly competitive market.

This is SBSA Technologies, It's time for synergy. 

For more details visit:

https://sbsatech.com/logistics

https://www.sbsatech.com/dropship

Written by Vince Ivanov, MBA 

Property of SBSA Technologies, Inc.