Let's say I like party A 10 times more than I like party B. In a preferential voting system, there's no way to precisely express my preferences using the ticket. I'm forced to choose between "1. A" or "1. A, 2. B". Someone else who like part A 2 times more than party B will end up voting identically to me, despite the huge difference between our preferences. Any preferential voting system is necessarily flawed because how limited its input is.

That's basically what Arrow's impossibility theorem says. Due to its limited inputs, a preferential voting system will necessarily fail one of the three fairness criteria.

There are far better voting schemes out there, none of which are affected by Arrow's impossibility theorem.