Today, 3PL (Third Party Logistics) warehouse management software is no longer a tool but a necessity of the growing eCommerce Market World. As the 3PL WMS market set for global expansion to reach $ 2.3 billion in 2032 from $ 1.2 billion in 2021 shows, the right software can change operations greatly. But with millions of solutions available how do you select the ideal solution that meets your business needs? This guide will get you through everything you need to know to make the right decision.
What do you mean by 3PL WMS?
3PL WMS is an abbreviation for Third Party Logistics Warehouse Management Software aimed at helping third-party logistics companies and suppliers run their operations efficiently.
This software assists in efficient inventory management, warehouse control, order tracking, and invoice generation – making logistics the backbone of any business operations so that the company can concentrate on its strengths.
It also makes it easier for business entities to address their distribution, storage, and transport needs hence increasing their efficiency and effectiveness while at the same time reducing their overall costs.
It automates, and simplifies complex processes like:
- Order Fulfillment
- Inventory Management
- Warehouse Management
- Billing and Invoicing
- Reporting and Analytics
Features of 3PL Software: What to Look for in 2025
To select a 3PL WMS system provider that would meet your needs, it is crucial first to determine its primary functions. Here are the top functionalities to consider:
1. Automation and Robotics
Helps to avoid time-consuming and labor-intensive operations such as picking, packing, and sorting tasks. It helps in the quick processing of orders and the reduction of errors in the supply chain processes.
2. Data and Analytics
Enables effective decision-making on consumer trends, demand, market performance, and other aspects of business. It assists in finding problem areas in operations and allocating the necessary resources to enhance efficiency.
3. Real-Time Inventory Management
Ensures real-time tracking of stocks and where they are to avoid cases of overstocking or running out of stock. Real-time visibility helps the company to act quickly in moments when there is an urgent demand in the market or when it is peak time for sales.
4. Warehouse Management
Incorporates efficient storage designs, enhances pick and pack procedures, and enhances the functionality of a warehouse. This feature also aids automation tools such as conveyors and robotics to minimize handling time while at the same time increasing throughput.
5. Order Management
Reduces the complexity of the order cycle with tools such as live tracking, automated invoicing, and error-free order processing. It enables organizations to handle large quantities of orders at a certain period without affecting the quality of an end product.
6. Returns Management
Simplifies the return process for products, generating updates on the stock and providing customers with status on returns instantly. Implementing automation in this area saves costs linked to returns handling and improves customer satisfaction.
7. Seamless Integrations
Integrates seamlessly with other eCommerce solutions like Shopify, Amazon, and other courier service firms such as UPS and FedEx. Integrations minimize the risk of errors due to manual handling of data while promoting seamless transfer between systems.
8. Security and Compliance
Protects business and customer data through strong encryption security features and adherence to industry standards. Updates and audits are conducted frequently to maintain compliance with current cybersecurity and compliance regulations.
9. Customer Support
Offers timely onboarding support, relevant documentation, and round-the-clock customer service. Support for round-the-clock operations. Timely response from customer support allows businesses to solve complaints that affect production and delivery promptly.
Benefits of 3PL WMS Software
Outsourcing 3PL WMS software has tremendous benefits; more so in the e-commerce sector where competition is rife. Here’s how it transforms your processes:
1. Improved Efficiency
Routine functions such as order entry, stock status, and invoicing can be automated freeing up time for your team. This efficiency helps businesses prioritize core activities that include business expansion and customer relations.
2. Increased Accuracy
Automation also eliminates possible errors like mislabeling, inventory mismatch, or wrong shipping due to manual handling of the products. In this way, 3PL software controls errors and maintains customer satisfaction to reduce the waste of resources.
3. Cost Savings
By streamlining workflows and reducing errors, 3PL software lowers operational costs.
It enables businesses to cut employment costs and other overhead costs associated with penalties for wrong deliveries and manual processes.
4. Sustainable Growth
Flexible, can handle higher demanding orders, and adapt to new market requirements. Scalable features enable business growth without being restricted by fixed operational constraints. Advanced 3PL software often includes tools to optimize shipping routes, reduce waste in packaging, and monitor carbon footprints.
5. Enhanced Customer Service
Order processing, tracking, and subsequent deliveries when done quickly and efficiently ensure customer satisfaction. Some current 3PL software applications include order tracking services to help customers follow orders to progress in real-time, thus building credibility.
3PL WMS Software like Fulfillor enables real-time tracking and detailed analytics, ensuring eCommerce brands can respond dynamically to market demands.
How to Choose the Right 3PL WMS Software?
Selecting the perfect 3PL software for your business requires careful planning. Take these steps to ensure the best fit for your business:
1. Identify Your Business Needs
- Determine your operation objectives as well as logistics issues.
- Create a list of should-have/must-have features such as order tracking, inventory management, and a multi-channel integrations checklist.
- Decide which of the processes such as order fulfillment, returns, or billing, you wish to automate.
2. Evaluate Costs and ROI
- Organize direct costs against indirect and future benefits to be gained from business expansion.
- Consider possible benefits such as cost-cutting through reduction in mistakes, increase in delivery time, operational gains, etc.
- Focus on a reasonable budget depending on subscription and license costs.
3. Prioritize Scalability
- Select a solution that scales up to accommodate more orders, clients, and integration as your business expands.
- Check if there are associated costs for the growth of selected features as it concerns the number of clients or orders, for instance.
- It is also good to ensure that you consider whether there are extra costs necessary for scaling up features.
4. Assess Customer Support
- Confirm the onboarding support, the training materials, and how fast they attend to technical problems.
- Check Service Level Agreements (SLAs) to ensure response time is assured.
5. Research Reputation
- Go through client reviews on Trustpilot if you are in a UK-based business or Capterra for SaaS business.
- Seek reviews on the case-study section or from clients’ testimonials as a way of assessing reliability.
Fulfillor stands out for its excellent customer support, seamless integrations, and scalability, making it a top choice for logistics providers. Businesses like PINNIMA and Vastrami have leveraged Fulfillor’s 3PL Warehouse Management Software to streamline logistics, reduce costs, and deliver exceptional customer service.
Conclusion
Selecting the appropriate 3PL warehouse management software might seem challenging, but it should not be. By considering the above features, benefits, and tips in mind, you can draw the right conclusion and select the most suitable 3PL software for your company. When implemented correctly, it makes your overall logistics loop more manageable while helping your enterprise expand with improved client satisfaction.
Fulfillor is an example of what 3PL software could and should be; flexible, scalable, and automated in one system.
Are you ready to step it up in your logistics management? Contact Fulfillor now and find out how our 3PL software can take your company to the next level.