The shift from multichannel to omnichannel fulfillment
Historically, retailers operated multichannel fulfillment, managing separate inventory and logistics streams for online and in-store sales. Each channel runs in a silo—for example, an ecommerce website ships from an ecommerce-only warehouse, while store replenishment ships from a dedicated retail distribution center. Each selling channel maintains its own inventory, processes, and delivery methods, with no crossover between operations.This siloed approach often led to inefficiencies like duplicate stock and inconsistent customer experiences.
Omnichannel fulfillment solves this by unifying inventory and order fulfillment across all channels. Instead of segmented workflows, inventory is pooled and visible across online and offline outlets, and products can be shipped from warehouses, retail stores, or third-party locations based on real-time demand. This approach enhances inventory turnover and improves service levels, making it a competitive necessity for modern retailers.
The focus shifts from channel-centric to customer-centric fulfillment. Customers enjoy flexible options such as Buy Online Pick Up In Store (BOPIS), curbside pickup, buy in-store for home delivery, or even returning an online purchase to a local shop. In essence, omnichannel fulfillment blurs the lines. An omnichannel approach is now a necessity for merchants to meet modern shopper expectations. Retailers embracing omnichannel see higher customer lifetime value and more resilience, whereas those stuck in pure multichannel silos risk falling behind in service levels.
The Rise of Ship-from-Store & BOPIS
Retailers are increasingly leveraging physical stores as fulfillment hubs. Ship-from-store reduces delivery times by sending online orders from the nearest retail location, while BOPIS allows customers to collect purchases in-store, driving foot traffic and additional sales.
Major retailers like Macy’s have repurposed store space into mini distribution centers, significantly boosting fulfillment capacity. Industry-wide, 72% of large retail chains now offer BOPIS, underscoring its importance in omnichannel strategies. Consumers have embraced the model for its convenience, with over a third using BOPIS or curbside pickup regularly.
For 3PLs managing fulfillment, the task is all about flexibility. A 3PL may need to handle high-volume pallet shipments to stores one day, then pivot to many small parcel deliveries to consumers the next, all while meeting tight delivery expectations for both. This shift requires advanced inventory management software and order routing to efficiently coordinate fulfillment across various nodes. Orders must be dynamically assigned to the best fulfillment point—whether a warehouse, store, or micro-fulfillment center—based on factors like proximity, inventory levels, and delivery time.
How 3PLs are adapting to omnichannel demands
Unifying retail & ecommerce Fulfillment
The rise of hybrid 3PL models has blurred the lines between retail and ecommerce logistics. Instead of separate operations, leading 3PLs now manage both store replenishment and direct-to-consumer (DTC) orders from a shared inventory pool. This flexibility allows retailers to shift stock dynamically, reducing markdowns and improving availability. Such integration requires unified inventory management and flexible fulfillment options across channels—capabilities that retailers are increasingly demanding from their 3PL partners.
3PLs are also eliminating internal silos, merging B2B and B2C fulfillment teams, and optimizing warehouse operations to serve multiple fulfillment channels efficiently. The ability to flex between bulk shipments and small parcel deliveries is now a core competency.
Investing in Smart Technology & Automation
To meet omnichannel demands, 3PLs are upgrading warehouse management systems (WMS) and order management systems (OMS). Cloud-based platforms now provide real-time inventory visibility across warehouses, stores, and fulfillment centers, allowing seamless coordination of orders. Notably, 69% of 3PLs have adopted cloud-based WMS solutions (versus only 24% of shippers/retailers), according to a recent industry study.
Automation is also playing a crucial role. Robotics and AI-powered systems help 3PLs scale ecommerce fulfillment efficiently. DHL Supply Chain, for instance, has deployed thousands of warehouse robots to manage surging order volumes. These investments not only improve efficiency but also enable 3PLs to pivot quickly between retail and ecommerce fulfillment demands.
Last-mile & same-day delivery expansion
Beyond the warehouse walls, 3PLs are also investing in last-mile delivery technology to support omnichannel retail. When orders can originate from anywhere (a warehouse, a store, a pop-up shop), delivery networks must be more flexible than the old hub-and-spoke model. Consumers expect fast, flexible delivery, often within the same day. To keep up, 3PLs are expanding local delivery networks, forming partnerships with crowdsourced delivery platforms, and investing in route optimization technology.
UPS’s acquisition of Roadie, a same-day gig delivery network, is a prime example. The move allows UPS to facilitate store-based deliveries alongside its traditional ground network. Other 3PLs are integrating locker networks, micro-fulfillment centers, and AI-powered route planning to improve speed and efficiency.
Returns and reverse logistics for omnichannel retail
Returns management has become a crucial part of omnichannel logistics. Consumers now expect seamless returns, whether through shipping or in-store drop-offs. To support this, 3PLs are integrating reverse logistics solutions that process returns quickly and optimize restocking across channels. This helps retailers recover value from returned inventory while enhancing the customer experience.
The 3PL industry’s response to omnichannel growth
As retailers demand comprehensive omnichannel solutions, the 3PL industry is undergoing significant consolidation. Many logistics firms are acquiring ecommerce specialists to enhance their capabilities.
Key acquisitions include:
- Ryder’s purchase of Whiplash & Dotcom Distribution to expand omnichannel fulfillment reach.
- GXO Logistics’ acquisition of Clipper Logistics, strengthening retail and ecommerce integration.
- Maersk’s acquisition of Visible SCM, adding a nationwide ecommerce fulfillment network.
- UPS’s investment in same-day and last-mile capabilities through Roadie and Delivery Solutions.
This wave of mergers and acquisitions enables 3PLs to scale up omnichannel operations quickly, offering end-to-end fulfillment solutions for retailers seeking seamless logistics partners.
Omnichannel is the future of 3PLs
Retailers are no longer looking for 3PLs that only specialize in bulk store shipments or ecommerce fulfillment—they need partners that can do both. Leading logistics providers now position themselves as one-stop fulfillment solutions, handling everything from store replenishment to direct-to-consumer delivery.
The next phase of 3PL innovation will likely focus on:
- AI-driven order routing for real-time fulfillment optimization.
- Hyper-local distribution hubs to accelerate last-mile delivery.
- More robotics and automation to enhance speed and efficiency.
- Sustainable fulfillment models to reduce carbon footprints.
In this evolving landscape, the ability to execute omnichannel fulfillment at scale will be a key differentiator. 3PLs that embrace these changes will thrive, while those that fail to adapt risk obsolescence.
Conclusion
The hybridization of 3PL business models is no longer a trend—it’s the industry standard. Retailers and brands now expect logistics providers to handle seamless, omnichannel fulfillment, integrating store and online distribution into a unified strategy.
3PLs that invest in technology, automation, and flexible fulfillment networks will lead the next wave of logistics innovation. The industry is moving toward a future where there is no distinction between “retail” and “ecommerce” logistics—just smart, efficient fulfillment that meets customers wherever they shop.
For brands seeking a 3PL partner, omnichannel expertise is now the number one requirement. Logistics providers that can deliver speed, flexibility, and integration across all sales channels will be the dominant players in the years to come.
Discover Logiwa IO, the fulfillment management system (FMS) that goes beyond legacy WMS to empower 3PLs to fulfill brilliantly—today and wherever the future may take us.
