What is 3PL Software and How Can it Improve Your Warehouse Systems?

What is 3PL Software and How Can it Improve Your Warehouse Systems?
What is 3PL Software and How Can it Improve Your Warehouse Systems?
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What is 3PL Software and How Can it Bring Your Warehouse to the Next Level? 

Shipping times significantly impact online shoppers’ opinions of a company. Recent studies prove that 41% of shoppers worldwide prefer to get their purchases within 24 hours, and the only way you can provide that is with proper warehouse management. 

Maintaining order in the storage, transportation, and processing of inventory is simple with the help of a dependable warehouse management system. Managing your logistics alone won’t get you where you want to go if you’re looking to increase your profits, especially if you have difficulty keeping track of all your inventory. 

3PL software is a viable option for overseeing your warehouse, whether it be offshore or right next door. It’s efficient and productive. With 3PL software, warehouse management is streamlined and immediately applicable. Read on to learn more about its types, strengths and capabilities. 

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What are the types of 3PL software available? 

Companies had to physically manage their stock and fulfill orders before the advent of the Internet. Although outsourcing logistics remained an option, supply chain links still functioned independently, leaving room for significant mistakes. With the rise of various 3PL software, the logistics sector has streamlined and combined and automated the various processes involved in fulfilling orders. 

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The three most common forms of 3PL software are as follows: 

Warehouse Management Systems (WMS) 

Third-party logistics (3PL) warehouse management systems (WMS) boost warehouse efficiency and output. A 3PL WMS may help businesses save a lot of money by speeding up daily operations and improving the picking, packing, and shipping process. It streamlines warehouse operations. Warehouse management systems facilitate material reception and order fulfillment. 

While there is variation in what each system offers, most warehouse management software has several capabilities. One of the most popular WMS functions is warehouse layout planning, which allows for more efficient inventory storage, delineation of pick-and-pack zones, and a general increase in productivity. 

Additionally, most WMS can maintain an inventory, generate packing lists, and keep customers apprised of shipment status. Cold storage management, RFID tag support, and freight monitoring are just a few more sophisticated capabilities available in standalone warehouse management systems. 

Enterprise Resource Planning System (ERP) 

Enterprise resource planning 3PL systems offer comprehensive business answers for logistics brokers. They’re an end-to-end platform for streamlining logistics operations since they automate every step of the distribution, supply chain management (SCM), and transportation processes. There are integrated modules that allow for merging warehouse management systems (WMS) with enterprise resource planning (ERP 3PL). 

Supply Chain Management (SCM) 

An integrated SCM system oversees the entire supply chain, including product creation through storage, inventory management, and distribution. It tracks product, data, and monetary asset flows. 

The suite aims to enhance supply chain visibility, mobility, and security while reducing operating costs and facilitating user-friendly communication. 

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Benefits of utilizing 3PL software for your warehouse 

Here’s how adopting 3PL software for your warehouse will be beneficial: 

Reduced mistakes 

Errors increase in frequency and severity whenever data is entered or processed manually and passed between many people. The process is automated using the 3PL software to eliminate human error and save money. 

Optimized warehouse management 

It’s challenging to manage a warehouse. To ensure worker health and safety, you must meet specific requirements, such as obtaining the appropriate credentials, undergoing regular training, and doing routine inspections of all safety equipment. The upkeep of a warehouse also necessitates hiring and training additional personnel on a regular basis. You can keep up production while cutting costs by using the services of third-party logistics software. 

Better time efficiency 

Time is one of the most valuable resources, and 3PL software can help logistics companies and their customers save both. Instead of storing this information in many databases, 3PL software can centrally store your order tracking, payment processing, report, and billing information. 


Third-party logistics providers’ customers trust them with their whole supply chain, because they can monitor logistics efficiency and stock levels using 3PL software. 

These four benefits can be a significant positive change for your company, especially if you’re managing your logistics from day one. You can divert more energy to other crucial problems; the same goes for your logistics department employees. 

Try to use tried and tested automated tools to ease some of the load. Having time to improve yourself can also be an essential factor and step in becoming a successful entrepreneur

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When appropriately used, third-party logistics software (3PL) may be a tremendous asset to any business. Whether you’re in manufacturing or retail or you just want to streamline your supply chain and warehouse operations, take advantage of a 3PL solution. 

Third-party logistics, or 3PL, solutions can be in the form of a simple warehouse management system, an elaborate enterprise resource planning suite, or integrated supply chain management software for an entire company’s ecosystem. But before making your final decision, make sure you know how each type of 3PL will interact with the various parts of your business ecosystem. 

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