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7 Essential Dispatch Management Software Features For 3PLs and LSPs

As businesses expand globally, there is an increasing dependence on third-party logistics (3PLs) and logistics service providers (LSPs) as they are key enablers. 

Dispatch management for LSPs

As a result, the 3PL and LSP markets have witnessed remarkable growth and heightened competition recently. This trend is projected to continue upward, with an estimated CAGR of 10.7% from 2023 to 2030.

To get ahead in this competitive landscape, many third-party logistics and logistics service providers are investing in technology and solutions that enhance their ability to meet supply chain complexity, heightened customer expectations for speedy and accurate deliveries, and demand for features such as package track and trace. By leveraging technology-driven solutions such as dispatch  automation software,  3PLs, and LSPs can streamline their operations, optimize route planning, improve resource allocation, and automate fulfillment processes.

Here is a list of essential features in dispatch management software that foster scalability and operational excellence for 3PLs and LSPs.
Dispatch Management For 3PLs

Dispatch System Features 

Automated  Dispatch & Routing

An efficient automated dispatch software and routing system enables dispatchers to handle a high volume of incoming orders through various platforms such as API integrations, excel sheets, and manual entries. The queue-based approach allows for seamless aggregation of orders, creating delivery batches that optimize routes and sequence deliveries for maximum efficiency.

For industries such as 3PLs and LSPs, the inflow of orders will be in bulk and from diverse sources. By leveraging this feature, dispatchers can significantly streamline their operations, ensuring timely and cost-effective deliveries while enhancing overall efficiency. The automated system reduces manual effort, minimizes errors, and improves customer satisfaction, making it a valuable addition to modern dispatch operations.

Configurable Workflows

While catering to multiple deliveries, a dispatcher might face challenges accommodating specific handling conditions or instructions for a particular shipment. Dispatch optimization  software allows the dispatchers to create configurable workflows using different permutations and combinations. It offers seamless modification of configured tasks via a simple drag-and-drop interface. This feature enables 3PLs to meet specific requests for a particular order or client requirements with ease.

Driver and Vehicle Management 

Effective on-ground management of the fulfillment cycle is essential for successful delivery operations. In the case of 3PLs and LSPs, where multiple drivers and vehicles are involved across various locations, a dispatcher needs to oversee end-to-end driver and vehicle utilization. The driver and vehicle management feature ensures a balanced load transfer and adherence to predefined allocation rules. 

It facilitates dispatch by assigning orders to the most suitable driver and vehicle. The software dynamically allocates the ideal fleet and resources based on predefined parameters and helps streamline multiple fleets' management.

Route Optimization & Navigation

Improving drop density is one of the primary objectives for dispatchers in the 3PL and LSP industry. It helps in reducing operational costs and meeting SLAs. By leveraging advanced route optimization algorithms, the dispatch software enables the dispatcher to pick the most optimal routes and maximize drop density by consolidating deliveries in the same area or along logical sequences. 

This strategic approach minimizes the distance traveled and optimizes resource allocation, resulting in cost savings and faster deliveries. Dispatchers can consider various hard and soft constraints while choosing the routes, including delivery time windows, vehicle capacities, customer preferences, and traffic conditions.

Real-time tracking for all miles

This feature offers centralized visibility of all the on-ground resources in one place. This feature empowers 3PLs (Third-Party Logistics) and LSPs (Logistics Service Providers) to manage increased delivery volumes seamlessly. By consolidating all on-ground resources' data in one place, dispatchers can establish smooth collaboration and synergy among stakeholders. 

The high number of deliveries can overwhelm dispatchers and other involved stakeholders, making it challenging to monitor all on-ground resources effectively. However, the bird's-eye view of real-time events and resource status supported by real-time tracking of all miles enables managers to allocate resources efficiently and proactively address potential issues, ensuring timely deliveries. Tracking performance and identifying patterns allow stakeholders to make data-driven decisions for continuous improvement. 

Proof of Delivery 

Proof of Delivery (POD) provides confirmation and acknowledgment from customers that the order has been successfully delivered to the intended recipient. There are various methods to obtain in-app proof of delivery, making the process efficient and versatile. Some common ways to capture POD include electronic signs, photos, OTP verification, Scan Code, etc.

Throughout the journey from order out to delivery, there are multiple touchpoints, potential challenges, and uncertainties. The POD feature acts as concrete evidence that the delivery has been completed as intended.

Analytics Dashboard 

Dispatch optimization software with a comprehensive and detailed dashboard offers valuable insights to optimize overall dispatch operations and achieve operational excellence. The advanced performance insights available within the dashboard provide a holistic view of carrier performance, on-time deliveries, load assignments, and resource utilization. With real-time tracking and visibility, dispatchers can make informed decisions and maintain better coordination throughout delivery.

The software's ability to evaluate carrier performance helps select the most efficient partners for future collaborations. Additionally, by analyzing historical data and real-time information, businesses can optimize load assignments, ensuring timely deliveries while reducing unnecessary delays. Data-driven decision-making becomes a cornerstone of dispatch operations as managers and dispatchers can rely on the dashboard's data to implement continuous improvement strategies. 

Dispatch Software Features


One of the defining USPs of dispatch software is its ability to offer better growth opportunities for 3PLs and LSPs in terms of delivery output and operational excellence. Through technologies such as dispatch management solutions, SMBs, and enterprises can gain real-time insights into the fulfillment cycle and take corrective actions to improve their operations. 

Integrating an all-in-one dispatch management solution is ideal as you embark on this journey to automate, optimize, and scale your supply chain operations. DispatchOne powered by OS1 comes with in-built capabilities to unlock a new level of efficiency and productivity in your dispatch operations. 

DispatchOne enables 3PLs and LSPs to streamline their dispatch operations for on-demand and planned deliveries. It is a highly flexible and agile solution that offers end-to-end real-time visibility of your on-ground team. It supports configurable workflows to improve delivery operations and set conditions (OTP, sign verification, and COD) based on specific business requirements. And many more. 

Get a free demo to learn how the solution can empower your existing operations.