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Time was when a third-party logistics (3PL) company was looking to build a sophisticated fourth-party logistics network, massive funding had to be raised to pay for the costly software development associated with 4PL models.

That all changed this past July when Extensiv—which delivers omnichannel software solutions for warehouse inventory and order management—unveiled Extensiv Network Manager.

This product allows even 3PLs with limited technical capabilities to build and operate a software-enabled fulfillment network to compete with the likes of Ship Bob and Deliverr. Additionally, unlike home grown software solutions, Extensiv Network Manager is a cloud-based, fully productized and supported product that continues to be developed and enhanced.

“Extensiv Network Manager leverages the company’s deep experience working with 3PLs and its industry-leading 3PL warehouse operations platform to offer sophisticated fulfillment capabilities while continuing to operate their warehouses using 3PL Warehouse Manager,” explains David Miller, vice president of strategy at Extensiv.

“Consumer expectations are at an all-time high,” he continues. “Inflation has only increased the need to keep shipping costs down, but consumers still expect fast, and often next-day, delivery. Single or even two warehouse fulfillment approaches force brands to choose between paying exorbitant prices for unprofitable expedited shipping or choosing low-cost saver services, which results in painfully slow delivery times.”

But Extensiv Network Manager helps 3PL providers build and manage networks of geographically distributed partner warehouses, where a brand’s inventory is distributed across and shipped from multiple locations, enabling lower costs and expedited delivery options while retaining customer relationships and reducing risk and capital overhead.

How? By combining software, services, tools, and relationships that empower any 3PL, even those operating out of a single warehouse, to partner closely with other 3PLs to service brands across multiple geographically distributed warehouses. Unlike current homegrown solutions that 3PLs may have cobbled together, Extensiv Network Manager offers the key capabilities necessary to build and operate a hybrid network, including sophisticated order routing rules as well as complete visibility and control over all orders regardless of which node is shipping them.

Early adopters have seen positive results already, with one customer, Rocket Shippers, using Extensiv Network Manager to lower shipping costs while decreasing transit times by intelligently routing orders to the best-fit fulfillment center in their network.

“The Network Manager team did an amazing job streamlining our order routing rules,” says Matthew Schneider, senior account manager at Rocket Shippers. “Network Manager has made it so much easier to process Seller Fulfilled Prime orders in our network as well as providing inventory visibility across multiple facilities.” 

SOLVING PROBLEMS FOR 3PLS AND BRANDS

As a brand’s expectations of their fulfillment partners grow, 3PLs need a low-risk, low-cost option to bring customers distributed inventory and omnichannel fulfillment services while retaining direct relationships with these brands. Space restrictions, start-up costs, risk volatility, and other considerations keep smaller 3PLs from expanding into new facilities, thus limiting their ability to service growing brands and making their offering less competitive.

Many brands have tried to build their own multi-3PL fulfillment strategies to offer faster or less expensive delivery. In the modern technology-enabled supply chain, brands require the consistency of service that can only be delivered by operating on a standard technology platform with an identical configuration and shipping strategy across every node. In today’s era of heightened consumer expectations, brands need to efficiently support not just ecommerce deliveries, but omnichannel fulfillment. Extensiv Network Manager helps 3PLs deliver on these rising expectations.

Operating a reliable network of partner 3PL warehouses, the technology works together to expand geographic reach, increase service offerings, and improve SLAs while reducing overall operating expenses for themselves and their customers. 3PLs utilize Extensiv Network Manager for:

Complete visibility: Inventory and transaction details are visible across all networked warehouses in a single, dedicated management portal. This eliminates duplicate entry and the confusion of multiple logins and systems.
Order Routing: Logic-based order routing and management tools automatically send orders to the best fulfillment center in the network based upon virtually unlimited business rules; seamless order flows from cart to the 3PL warehouse manager (WMS) and back without duplicate setups or convoluted tagging, with real-time order processing status across all servicing facilities.
Seamless inventory management: a holistic view of inventory levels across network warehouses. Manage inventory throughout your network by seeing real-time levels and alerts.

Simplified setup and maintenance: configurable cloud-based software eliminates complexity and can be set up with minimal time and effort. Add new fulfillment nodes with only a few clicks to start fulfilling across the network.

To complement Extensiv Network Manager’s software capabilities, Extensiv also launched an array of services to guide 3PLs through the process of setting up a collaborative 4PL network. These services range from needs analysis, collaboration on partner identification based upon geography or service offering, as well as implementation services to initially configure the fulfillment network.

Extensiv Network Manager builds on the recently launched Extensiv Fulfillment Marketplace, a free resource that empowers 3PLs to identify potential network partners that offer a complementary geographic footprint and/or services.

To learn more about Extensiv Network Manager, go to extensiv.com/extensiv-network-manager, and to find 3PL partners and build your network, visit extensiv.com/fulfillment-marketplace.

Based in El Segundo and formerly known as 3PL Central, Extensiv is regarded as a visionary technology leader focused on creating the future of omnichannel fulfillment. The company partners with warehouse professionals and entrepreneurial brands to transform their fulfillment operations in the radically changing world of commerce and consumer expectations. More than 25,000 logistics professionals and thousands of brands trust Extensiv every day to drive commerce at the pace that modern consumers expect.

Gaps in operations are not biased. Whether you are a warehouse manager navigating scheduling oversights or a fleet manager solving the next best approach to reducing costs, gaps in operations within the global logistics arena are inevitable. The real concern is how the modern-day 3PL provider can successfully mitigate risks while minimizing common gaps before they become a critical problem.

Until one can jump to the list of solutions ranging from technology applications to hybrid work models, the most common (and possibly least talked about) gaps must be identified. Taking it a step further, 3PL providers should have a solid understanding of the why behind the what. In other words, they should ask themselves: Why are these gaps present within our operations and can they be resolved? Are these gaps common within the industry or are they unique to my company?

“One of the bigger gaps in the industry is the availability of timely and accurate data back to the shippers and to the community,” states Jason Carl, vice president of 4PL Solutions at BridgeNet Solutions. “3PLs are sitting on a wealth of data and information, and the ability to harness that effectively has always been a gap from my perspective. Delivering standardized timely information and data makes all the difference for a shipper in today’s environment.”

Carl has more than 15 years of experience in the logistics arena, ranging from ocean exports to operations. He originally started his career with Evergreen Line before moving on to BDP International for 13 years, managing operations for several multinational clients. He moved to BridgeNet two years ago to head the 4PL product.

BridgeNet Solutions, a wholly-owned subsidiary of BDP, provides sourcing, outsource sourcing procurement and managed transportation services focusing primarily on data analytics for more effective supply chain management.

BridgeNet’s cloud-based data solution, Xonar, is the company’s analytics and execution platform based on a foundation of accurate data collection combined with a robust analytics layer. Xonar enables BridgeNet to effectively collect and share critical information from shipper ERP systems, 3PL providers and freight payment companies. Carl cites this solution and the above capabilities as a game-changer for the company among competitors.

“Oftentimes what you find is that providers offering these solutions could be largely just software as a service or a technology company,” he explains. “At BridgeNet, we extend both the technology and the execution components to our customers, ensuring they can rely on an excellent integration hub paired with customizable technology based on the customer’s needs. We also offer a network of control tower operations based in Asia, Europe and the Americas to oversee that and to orchestrate the flow of information that’s moving through Xonar on a day-to-day basis.”

To be successful at identifying and eliminating common gaps in processes, the provider must consider the quality of the information coming in and going out. It is critical the provider understands where this information could be compromised–or even worse, completely missed.

“3PLs need to understand the why,” Carl says. “Not just at the strategic level but also down to the desk level. It enables better decision-making on a day-to-day basis that really benefits shippers in ways that are often overlooked. The quality of the data can be a game-changer for planning processes and for decision-making overall. There is an increased recognition of that at least in the conversations I’m having.”

Beyond closing gaps in operations and day-to-day processes, Carl emphasizes the importance of looking at the big picture rather than just the result, citing innovative technology as a distraction for what is really going on layers deep within a data solution.

“If the underlying data is not high quality, not standardized, not tightly controlled, then it’s not going to yield the results that providers want to achieve from that piece of technology. The value of that underlying information cannot be discounted. Before you go on the tech journey, providers should focus on the information that is going to fuel operations. This is where 4PLs can step in.”

As for the role of the 4PL provider, they are part of the bigger picture of where your data is coming from and what it all means. Data translation is equally as important as data collection. If a provider cannot identify the value from the data, the role of analytics becomes a moot point. That’s why Carl emphasizes the need to look and think outside of the box for solutions that are not only more cost-effective but add significant value to client needs.

“4PLs can act as a translator or the intermediary to help provide data-driven insights to shippers by standardizing information from a multitude of 3PLs and then translate shipper’s needs and strategies for actionable change from the 3PL,” he says. “This bridge between the two entities can be a great help but it is not always the right fit for every shipper or for every supply chain. There are many situations where, now more than ever, a 4PL provider can provide a lot of value and support for 3PL operations and processes.”

Whether it is a pandemic or random disruption (think Suez Canal), the conversation of eliminating gaps in operations would be incomplete without addressing how the logistics industry has shifted looking back at the last year and a half. Buzzwords such as “agile” and “adaptable” might very well be accurate, but in what ways are 3PL providers being challenged to maximize their position in a competitive market? Carl points to letting go of the past as many companies still utilize lessons learned to affirm the success of the future.

“Gone are the days where the 3PL can rest on proverbial laurels and be complacent based on past success and relationships,” he warns. “The past 18 months have proven this. The existing network that 3PLs may have been operating for a customer for many years may no longer be sufficient in 2021. The needs are going to change, and it’s important that 3PLs are responding effectively to compete and be good partners for the shipping community.”

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Jason Carl is vice president of 4PL Solutions at BridgeNet, a BDP International company, where he oversees the development, performance and operations of the 4PL product and global control tower teams. He has more than 15 years’ experience helping customers improve and optimize complex supply chains through technology and process optimization. Carl holds an undergraduate degree in Economics from Austin College in Sherman, Texas, and an MBA in Strategy from Temple University’s Fox School of Business. He can be reached at jcarl@bridgenetsolutions.com.

GO 4PL AND CONQUER: Software Empower 3PLS to Grow by Creating and Managing 4PL Networks

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