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Guide To 3PL Software – Types, Advantages, And Parameters To Choose The Best Software

The purpose of a 3PL logistics software is to take care of the whole process of third-party logistics, including finance, sales, and every other operation related to it. Besides looking after the logistics process, another function of the 3PL logistics software is providing customers with efficient and customized solutions. So, irrespective of the size of the business, third party logistics software can yield benefits to all.


Different types of 3PL software 

There are 3 types of 3PL software system as follows:

  • Standalone warehouse management systems (3PL WMS)

The purpose of standalone warehouse management system is to manage the storage and warehouse operations, including picking up and packing orders, handling materials, managing inventory, managing transport, customer relationship management (CRM), etc.

  • Enterprise resource planning system (ERP)

If any third-party logistics require an enterprise solution, the ERP is apt for them. The enterprise resource planning system gives a complete package that provides various solutions like supply chain management, combining distribution, and conducting transportation systems to process the operations of the logistics of a business. You can combine warehouse management and enterprise resource planning systems in a single entity.

  • Integrated supply chain management suites (SCM)

The main aim of an integrated supply chain management suite is to supervise and manage the entire supply chain and the cold storage management system. Starting from product development to warehouse management, shipping, and inventory control. With this software, you can expect to notice improved mobility, visibility, and security of all operations at a low cost.

Why should you use 3PL logistics software? 

All business owners want to ensure that their business is efficient enough to manage a good customer relationship. This is how the 3PL logistics software can enhance the efficiency of a business:

  • Automation 

One of the most significant benefits of 3PL logistics software is integrating and automating the business process. So, when you have installed the 3PL logistics software into the business, you can get rid of manual labor conducting all the tasks. From then on, everything will be controlled and manipulated by the software.

  • Cost-effective 

Once the software is installed and the business is run in terms of the software, none of your employees have to take care of the processes involved in the logistics. Right from packaging the products to delivering them, everything will be controlled by the Third party logistics software . Hence, you only have to pay for the software.

  • Real-time accuracy 

The 3PL software ensures real-time data on product flow, levels of inventory, and shipment status. In short, you will find everything on a single platform. Also, the software provides a customer-oriented result, thereby satisfying the customers by catering to their needs.

  • Integration and customization 

The third party logistics software system offers better customization to ensure that the business meets all its requirements. Besides, it imparts the facility of allowing third-party integration.

  • Business intelligence 

The 3PL software optimizes the flow of products in the supply chain by facilitating the planning process. As a result, it enhances its capacity to meet the necessary market scenario. Even if there is large-scale data, the Third party logistics software can handle it at ease.

Parameters to consider while choosing 3PL logistics software 

Now that we have understood the benefits that one can get from the 3PL logistics software, let’s also take a look at how it can enhance the efficiency of the business. Amidst so many 3PL logistics software providers available in the market, it is difficult to pick one and discard the rest. Here are some parameters that will help one choose that best suits the business needs.

  • Customizable to meet the customer needs 

When looking for reliable 3PL logistics software, ensure that it can meet the needs of your customers. However, the 3PL logistics software should not compromise with the other extended logistics management features while meeting customers’ needs.

  • Capable of integrating the business mechanism 

The Third party logistics software is to ensure that the business operations are optimized and functional. For this, you have to ensure that the third party logistics software you choose is capable enough to integrate well and understand the mechanism of your business operations. From warehouse management to delivery, distribution, and customer relationship management, everything have taken care of by the logistics software.

  • Measurable in terms of cost 

When planning to install 3PL logistics software, Pricing is a major factor. It has to have a flexible pricing structure that covers all the functions and maintenance services.

How 3PL Logistics Software Can Help Your Canadian Company?

  • Automate Processes to Save Time

Fulfillment software can eliminate the need for sellers to manually enter and transmit orders to a 3PL every day. Because a 3PL’s software system may link directly with online marketplaces, a new order is instantly informed to the warehouse where the items are stored.

Each order fulfillment step is documented and updated in real-time, allowing the seller to readily track and check the status of each order as it progresses through selecting packaging and shipping. This allows the seller to explore the supply chain for specific orders, better managing their inventory and sales.

  • Cost-Cutting Initiatives

Third-party logistics companies specialize in logistics and, as a result, will have a larger network than your company’s supply chain. They will most likely have exclusive contacts in the logistics sector, have more negotiating power, and be able to give clients larger volume savings. All of these can help you save money on overhead.

You may also avoid making large infrastructure expenditures by collaborating with a 3PL supply chain management business, which can provide transportation, warehouse space, employees, and monitoring technology, among other things.

  • Gain Knowledge To Make Data-driven Decisions

When making future shipping and logistics choices, enhanced data supplied by fulfillment software may assist reduce guesswork. Customized data like revenue of orders dispatched by day, sales by channel, peak fulfillment hours, and sales and number of orders based on USPS zone may all assist a seller make better supply chain decisions. Any e-commerce firm seeking better logistics management can benefit from warehouse management systems (WMS) and transportation management systems (TMS).

  • Reduce Errors

Data input mistakes are unavoidable when manually transferring orders from a seller to their 3PL. Even the tiniest mistake, such as a misspelled address or an erroneous SKU, might result in major issues. Customers may experience time-consuming, costly, and inconvenient exchanges, replacements, and refunds as a result of these.

Using 3PL automation technology, it is very easy to reduce human mistake and order duplication.

These linked systems also give the vendor a clear picture of how their 3PL is functioning. It is possible to see the correctness of the 3PL as each step is taken by linking the fulfillment stages and supply chain operations.

  • Improve Customer Service Experience

The heart of why all of this is important is because a seamless order fulfillment procedure will keep your consumers satisfied. And fulfillment software may assist a seller get a full picture of the entire process so they can improve or keep doing what they’re doing well.

Because the 3PL’s technology provides the seller with the most up-to-date information, any consumer queries may be handled quickly and accurately. This allows for more consistency, accuracy, and transparency.

  • Obtain Greater Adaptability And Scalability

The advantage of third-party logistics in supply chain management is that it allows businesses to use supply and distribution resources depending on current business demands with flexibility and scalability. When sales are sluggish, there are no duplicate investments or underutilized resources, and when demand spikes, businesses may scale up.


Therefore, 3PL logistics software is a powerful tool that can help the management with logistics in the most efficient manner. However, do not forget to pay attention to the considerations mentioned above while picking the best Third party logistics software that best suits your business requirements.
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