How advanced 3PL fulfillment software drives growth

Ecommerce has become the predominant growth driver for third-party logistics (3PL) providers. In fact, ecommerce now accounts for 70% of many 3PL business portfolios despite tough market conditions and slower economic growth. Additionally, 22% of respondents providing ecommerce fulfillment and Fulfilled by Amazon (FBA) Prep experienced high profitability growth in 2024, compared to just 17% of other fulfillment types.

As ecommerce continues to evolve, 3PL providers will face increasing pressure to meet the growing demands associated with online retail. To stay competitive, these providers must adopt cutting-edge technologies—such as advanced warehouse management systems (WMS) like Logiwa IO, a complete fulfillment management system (FMS)—to keep up with industry advancements.

WMS are software that help 3PL providers control and manage warehouse operations. This includes receiving and shipping goods, optimizing inventory, and streamlining processes. By creating a comprehensive digital ecosystem, WMS ensures workflow efficiency, minimizes human error, and boosts delivery times. 

Ultimately, adopting WMS makes it easier for 3PL providers to maintain competitiveness, attract and retain customers, and increase their bottom line.

Learn how advanced WMS can boost your business’s operational efficiency. You’ll also learn about the key features of Logiwa IO for 3PLs, the benefits of implementing Logiwa IO in high-volume 3PL environments, and considerations when choosing a WMS.

 

The role of warehouse management systems in 3PL operations

Logiwa’s 3PL warehouse management software helps 3PL logistics providers manage their operations. Although 3PL WMS functionalities vary depending on the vendor and software program, most have the following core functionalities:

• Inventory tracking: A WMS shows a complete view of your inventory. Features like cycle counting, barcode scanning, and robust data management help teams ensure accurate inventory levels, minimizing inaccuracies and inconsistencies.
• Order processing: A warehouse management system automates tasks like picking, packing, and reducing manual intervention and errors that can lead to delayed order processing.
• Incoming and outgoing inventory management: Without a WMS, teams would have to manually keep track of incoming and outgoing inventory. This can be exhausting and time-consuming, especially if you have tons of inventory.
• Integration with legacy and existing systems: The best WMS for your brand should integrate with your existing technology stacks, such as your marketing platforms and ecommerce site. That way, your team can run your business more effectively and access more accurate data, leading to a smoother customer experience, repeat sales, and, ultimately, a larger bottom line.
• Data analysis: A WMS gives you real-time data about inventory, warehouse, orders, and key performance indicators (KPIs), including pick accuracy, order fill rate, and receiving efficiency. Use this data to identify and address potential issues.

Key features of Logiwa IO WMS for 3PLs

If you’re looking for a powerful cloud WMS for 3PLs, look no further than Logiwa IO.

A 3PL warehouse management software designed to navigate the logistics industry’s challenges, Logiwa IO boasts many key features, including:

• Real-time inventory management: This feature gives teams real-time visibility and control over inventory throughout the ecommerce supply chain. Use this to ensure accurate stock levels and minimize stockouts.
• Warehouse process automation: Due to an aging workforce, increasing expectations from customers around ecommerce, and changing employment preferences, logistics labor shortages have skyrocketed in recent years. This has caused higher error rates and delayed order processing. Logiwa IO addresses this problem by using AI and robotics to automate and delegate repetitive tasks like sorting and picking.
• Multi-channel integration: Logiwa IO consolidates orders from different sales channels into a centralized hub. These channels include offline and online platforms, such as a mobile app, website, retail outlets, social media, and third-party stores. Use this feature to efficiently optimize stock levels and route orders across channels.
• Scalability and flexibility: True scalability encompasses your software’s ability to evolve alongside your business needs while maintaining performance, reliability, and user experience under growing demands. It’s not just about managing more transactions—it’s about ensuring that every part of your system, from infrastructure to integrations, can adapt without disruption.
• Warehouse layout optimization: Logiwa IO can help you utilize space more efficiently to store more items without renting a new location. For example, it can show the best locations for popular items. If you follow these suggestions, you can significantly reduce travel time and improve picking speed. The program can also suggest reorganizing storage based on product weight, size, or order frequency.

Benefits of advanced WMS in high-volume 3PL environments

Implementing a WMS in high-volume 3PL environments has many advantages. The main benefits of the software for 3PLs are:

• Improved operational efficiency: A powerful 3PL WMS can significantly boost operational efficiency by automating repetitive tasks. As a result, you’ll have fewer manual errors, lower labor costs, and faster ordering processing and fulfillment times. Human workers will also have more time and energy to focus on higher-level tasks.
• Enhanced customer experience: 3PL fulfillment software leads to more accurate and timely deliveries. This, in turn, leads to positive customer experiences.
• Data-driven decision-making: A WMS also gives you access to analytics for forecasting future trends and optimizing inventory. Logiwa IO’s advanced warehouse management system, in particular, provides powerful 3PL analytics capabilities for optimizing operations.

Considerations for 3PLs when selecting a WMS

With so many 3PL WMS options, picking the right one can be challenging. Here’s what to consider when choosing 3PL fulfillment software:

• Customization and integration: You should be able to tailor your software for specific operational needs. For example, if you need customized reporting features to monitor key performance indicators, your program should allow for this level of customization.
• User-friendly interface: Your WMS should have an easy-to-navigate interface. The more navigable your software, the easier it’ll be for your team to master. This means fewer mistakes and reduced training time and costs.
• Cost-benefit analysis: After implementing the software, you should perform a cost-benefit analysis to weigh the return on investment. You can do this by comparing KPIs from before and after software implementation, and looking at efficiency gains and cost reductions.
• Total cost of ownership: You must consider how much it costs to buy, implement, and maintain the software, along with training your team. Pick a software program that fits your budget and meets your requirements. Otherwise, your overall return on investment may be negatively affected.
• Vendor stability: Your WMS vendor should be a stable company with deep experience helping similar clients. The more established and well-known your vendor is, the more likely you’ll get continuing IT support and updates. Less experienced vendors may not have the resources to continue providing services, which could leave you with buggy, outdated software.

Future proof your 3PL operations with Logiwa IO

Implementing the right advanced warehouse management system for your 3PL can significantly improve operational efficiency. Besides inventory tracking, management, and order processing, scalable 3PL software also integrates with legacy and existing systems.

Advanced 3PL WMS solutions like Logiwa IO provide additional tools for boosting efficiency, including real-time inventory management, warehouse process automation, and multi-channel integration. Logiwa IO is also flexible and growth-oriented, making it easy to scale up while maintaining efficiency and effectiveness.

Interested in seeing Logiwa IO in action? Schedule a demo today and learn how to improve 3PL operational efficiency with Logiwa IO.
 

FAQs about advanced 3PL fulfillment software