Eliminating 3PL Dropshipping Chaos
New 3PL functionality automates end-to-end dropshipping process, eliminating manual data entry and shipping errors
The dropshipping model promises efficiency, but for many Sage 200 users the reality involves countless hours of manual data entry, label management headaches and communication bottlenecks between retailers and suppliers. A recent implementation of Channels for Sage 200's new Third Party Logistics (3PL) functionality has demonstrated how complete automation can transform these painful operations.
The Challenge: A Manual Process Nightmare
A UK retailer working with major online marketplaces Dunelm and Very faced a workflow that was becoming increasingly unsustainable. Their business model relies on a dropshipper to fulfill orders but the process was entirely manual at every step.
Here's how it worked: when orders came in from Dunelm and Very, the retailer's team would manually key each order into Sage 200. They would then send order details to their dropshipper via email along with PDFs of shipping labels downloaded from the marketplace platforms. On the other side, the dropshipper would manually raise orders in their own system, attempt to match the correct label to each box (a process prone to costly errors), ship the goods and then manually inform the retailer that items had been dispatched along with tracking information.
Both companies were struggling with the workload, but the dropshipper was particularly overwhelmed. The manual label matching process was time-consuming and error-prone, while the constant back-and-forth communication created delays and increased the risk of mistakes.
The Solution: Complete Automation with Channels and Carriers
The implementation of Channels for Sage 200 combined with the Carriers addon has eliminated virtually every manual task in this process.
The transformation begins with Channels' direct integration with both Dunelm and Very's APIs. Orders now flow automatically from these marketplaces directly into the retailer's Sage 200 system as Sales Order Processing (SOP) orders with no manual data entry required.
The order details are then automatically sent from the retailer to the dropshipper, the Carriers module on their system then connects directly to Dunelm and Very's APIs - enabling the dropshipper to download shipping labels automatically. No more PDF attachments, no more manual label management, and crucially - no more risk of putting the wrong label on the wrong box.
But the real power lies in Channels' 3PL functionality. This handles the entire transfer of order data from the retailer to the dropshipper and back again, creating a seamless, automated workflow. When an order is received, it's automatically transmitted to the dropshipper's system. Once the goods are shipped, shipment data flows automatically back to the retailer, updating their records in real-time.
Finally - at the end of the process the dropshipper's invoice for the fulfillment service including any shipping charges is automatically posted back to the retailer's Sage 200 system, completing the financial loop without any manual intervention.
The Impact: Zero Manual Tasks
The contrast with the previous workflow is stark, what once required manual effort at every stage now runs automatically from start to finish:
- Orders download automatically from Dunelm and Very
- Order data transfers automatically to the dropshipper
- Shipping labels are retrieved directly from marketplace APIs
- Shipment confirmation flows automatically back to the retailer
- Purchase invoice automatically posted to the ledger
Both the retailer and dropshipper have eliminated the time-consuming, error-prone manual processes that were constraining their growth. The dropshipper in particular has been freed from the overwhelming workload that was threatening their ability to scale.
A Perfect Fit for Modern 3PL Operations
This implementation showcases how Channels for Sage 200's 3PL functionality addresses real-world challenges in third-party logistics and dropshipping operations. For Sage 200 users managing complex supply chains, working with external warehouses or operating dropshipping models - the combination of marketplace integration, carrier connectivity, and automated data exchange provides a comprehensive solution.
The result is a system where technology handles the routine tasks, allowing businesses to focus on growth rather than administration, and eliminating the bottlenecks that prevent scaling.
For more information about Channels for Sage 200 and its 3PL functionality, or to discuss how it could transform your logistics operations, contact us today.
