Osa Commerce
Discover essential strategies to protect your 3PL margins in a high-pressure market, ensuring long-term growth and profitability.
The Growing Challenge of Margin Compression in 3PL
If you’re a third-party logistics (3PL) provider operating two or more warehouses, you’ve probably felt it. Labor, transportation, and facility costs are climbing. Your customer contracts are locked in. You are expected to deliver more services, faster, with the same rates you negotiated years ago.
The result? Margin compression—one of the biggest threats to long-term growth in logistics today. With operational costs rising and revenue staying flat, 3PLs are under immense pressure to find new ways to protect their margins.
Why Fixed Customer Contracts Can Hurt Your Bottom Line
Many 3PL agreements fix pricing for multi-year periods. While this is great for your customer’s budgeting, it’s detrimental to your bottom line. In the meantime, your expenses climb while your revenue stays flat.
The Domino Effect: How Shrinking Margins Impact Growth
For 3PLs managing multiple warehouses, shrinking margins have a domino effect that can severely impact growth. You have more staff, space, and systems to manage, but less profit to reinvest.
Leverage Technology to Capture Every Billable Event
Osa Commerce’s AI-powered Unified Commerce Platform is designed to protect and grow your margins by capturing 100% of billable events—in real time. No more missed charges. Utilizing collaborative visibility and end-to-end integrations, Osa's WMS offers more than standalone solutions. AI-driven event tracking, automatic billing processes, and reduction of manual labor all reduce operational overhead.
Here's how:
1. Capture 100% of Billable Events
No more missed charges. the Osa WMS integration and AI-driven event tracking ensure every pick, pack, and value-added service is billed accurately.
2. Automate Billing for Faster Cash Flow
Turn weeks of manual billing work into hours. OsaZero integrations feed directly into automated invoicing, so your team can close billing cycles faster and keep cash moving.
3. Optimize Labor and Carrier Selection in Real Time
Analyze order data, warehouse capacity, and carrier rates with AI that drives actions directly from the platform. Choose the most cost-effective and fastest fulfillment path, reducing unnecessary labor and transportation spend.
4. Reduce Manual Work with Seamless System Integrations
Connect your systems—Order Management (OMS), WMS, TMS, and Last Mile —all in one place. Unified commerce means one source of truth, fewer errors, and a faster onboarding process for new clients.
Recover Margins Without Raising Prices
Osa's cloud-native platform with artificial intelligence (AI) analyzes order data, warehouse capacity, and carrier rates to choose the most cost-effective and fastest fulfillment path. This reduces unnecessary labor and transportation spend, allowing you to optimize your operations for better margin recovery.
Our 3PL Partners See Results
Across multiple warehouse operations, Osa Commerce consistently delivers:
- 3x operational savings
- 99% inventory accuracy
- 20% more revenue without raising prices
When margins are under pressure, these gains can be the difference between treading water and accelerating growth.
Let's Protect Your Margins
With seamless system integrations, Osa Commerce connects your WMS, OMS, TMS, and customer systems in one place. With a unified commerce approach, your business has one source of truth, fewer errors, and a faster onboarding process for new clients.
