- The convergence of online and brick-and-mortar retail
- The digital transformation of mid-market 3PLs
- The standardization of 3PL networks in logistics
- The rise of WMS-driven robotics and automation in fulfillment
- Challenges for survival of 3PL startups in a legacy-dominated market
- The Rise of OMS as the backbone of modern 3PLs
- The emergence of 4PLs
Here are seven key trends that WMS providers must address:
1. The convergence of online and brick-and-mortar retail
Relying solely on online sales is no longer sufficient for sustained growth. The lines between online and physical retail are blurring as consumers seek seamless shopping experiences across channels.
The result? Retailers are adopting omnichannel fulfillment strategies, allowing customers to order online and pick up in-store or have items shipped directly to their homes. Online players are increasingly penetrating big-box retail spaces or opening physical stores to expand their reach and enhance customer accessibility. This convergence requires WMS solutions to integrate inventory management across all sales channels, ensuring real-time visibility and accuracy.
A modern WMS enables retailers to optimize stock levels, reduce overstock situations, and prevent stockouts, thereby enhancing customer satisfaction. For instance, implementing omnichannel order fulfillment strategies allows companies to deliver goods to multiple channels using a single facility with a unified workforce, treating inventory as fully available to all channels from one location.
2. The digital transformation of mid-market 3PLs
Mid-market 3PLs face growing pressure to renew their tech stacks to remain competitive. To meet consumer expectations they are increasingly investing in digital technologies. Adopting advanced WMS platforms equipped with Artificial Intelligence (AI) and Machine Learning (ML) capabilities allows these providers to enhance operational efficiency, accuracy, and decision-making processes.
AI-driven predictive analytics enable 3PLs to forecast demand, optimize inventory, and streamline labor management. According to recent industry insights, 3PL companies are expected to increase the use of AI and ML to improve operations and decision-making in the coming years.
McKinsey surveyed 250 global shippers and logistics providers 93% said they intend to increase their technology investment over the next 3 years.
3. The standardization of 3PL networks in logistics
As companies expand and collaborate with multiple 3PL providers, the lack of standardization across different WMS platforms can lead to inefficiencies. Standardizing processes and data exchange protocols across 3PL networks is crucial for seamless operations.
Implementing a unified WMS across all logistics partners ensures consistent data formats, reporting standards, and operational procedures. A single WMS reduces errors and improves fulfillment coordination.
Recognizing this, large companies and brands have started utilizing extensive 3PL networks to manage their logistics, pushing their 3PL providers to adopt a single preferred WMS to streamline operations and ensure consistency in service delivery. This standardization also facilitates better scalability and flexibility in responding to market changes.
4. The rise of WMS-driven robotics and automation in fulfillment
Automation is revolutionizing fulfillment centers, with robotics playing a pivotal role in enhancing efficiency and accuracy. This shift creates a growing need for a new breed of WMS that must serve as the operational core, seamlessly integrating and managing fulfillment workflows that incorporate robotics, automation and human processes.
For instance, Amazon has significantly increased its use of robotics in warehouses, deploying over 750,000 mobile robots and tens of thousands of robotic arms to perform tasks ranging from heavy lifting to package sorting. This integration reduces reliance on manual labor, minimizes errors, and accelerates order processing times, meeting the high demands of ecommerce—and saving Amazon $10 billion annually by 2030.
5. Challenges for survival of 3PL startups in a legacy-dominated market
New 3PL startups face significant challenges competing against established providers with extensive infrastructure and resources. To survive, startups must adopt innovative business models and leverage advanced technologies. Implementing cloud-based WMS solutions offers scalability and flexibility without substantial upfront investments.
Additionally, focusing on niche markets or specialized services can differentiate startups from larger competitors. Embracing sustainability practices and offering value-added services can also attract clients seeking more than just basic logistics solutions. For example, the rise of micro-fulfillment centers, which are smaller and strategically located to serve customers quickly, allows startups to compete by offering faster delivery times.
6. The Rise of OMS as the backbone of modern 3PLs
Order Management Systems (OMS) are becoming integral to 3PL operations, serving as the central hub for managing orders from multiple channels. A robust OMS integrates seamlessly with WMS and Transportation Management Systems (TMS), providing end-to-end visibility of the supply chain.
This integration enables real-time tracking, efficient order routing, and improved customer communication. As omnichannel retail grows, the ability to manage complex order flows through a centralized OMS is crucial for meeting customer expectations and maintaining competitiveness. AI-powered technologies, including next-gen WMS and sophisticated cybersecurity measures, are essential for staying competitive, underscoring the importance of integrated systems like OMS.
Anticipating the global multi-channel order management market to grow by $6.4 billion, with a CAGR of 12.0% from 2025-2023, retailers are investing in OMS to streamline inventory, enhance efficiency, and provide real-time visibility across channels.
7. The emergence of 4PLs
The logistics industry is undergoing a significant transformation, shifting from traditional third-party logistics (3PL) models to more advanced and integrated fourth-party logistics (4PL) solutions. 4PLs manage the entire supply chain on behalf of clients. Unlike traditional 3PLs, 4PLs oversee multiple 3PLs, technology providers, and other stakeholders to deliver a comprehensive supply chain solution.
Recent supply chain disruptions made organizations painfully aware of their vulnerabilities due to disparate logistics operations and data visibility. The global logistics landscape has fundamentally shifted.
Organizations have become acutely aware that they have lost connectivity, visibility and ultimately control of their supply chains and, therefore, their customers. — Gartner
This shift underscored the importance for businesses to have a single point of contact for their logistics needs, simplifying management and potentially reducing costs. The rise of 4PLs reflects a move towards more strategic and technology-driven logistics partnerships, where data analytics and supply chain optimization are prioritized. According to Gartner, 4PL solutions have grown by 47% over the past two years, indicating a clear industry shift towards more integrated and data-driven logistics frameworks.
Conclusion
WMS providers must adapt to these emerging trends to remain relevant and competitive. Embracing digital transformation, standardizing processes, integrating advanced technologies like robotics and AI, and aligning with evolving logistics models such as 4PL are essential steps. By doing so, WMS providers can enhance operational efficiency, meet the dynamic demands of high-volume fulfillment, and deliver superior value to their clients.
Ready to face these challenges head on? Schedule a call with one of Logiwa’s fulfillment experts for your personalized demo of how Logiwa IO can help you future proof your operations.
