11 Best 3PL Software in 2024
Top 3PL Software for Streamlining Logistics in 2024: Compare Features and Boost Efficiency
By Komal Puri | October 10, 2022
As the logistics landscape evolves, the demand for efficient and scalable solutions has led to the emergence of advanced third-party logistics (3PL) software. Businesses are increasingly opting for 3PL management systems to streamline operations, enhance inventory management, and improve customer service. These platforms offer a range of features, including real-time tracking, automated reporting, and seamless integration with e-commerce systems, enabling businesses to optimize their supply chain processes. The best 3PL software solutions cater to diverse business needs, from small startups to large enterprises, ensuring that logistics operations can keep pace with growing market demands. This blog highlights the 11 best 3PL software options available in 2024, showcasing their unique capabilities and advantages for businesses looking to enhance their logistics efficiency.
What is 3PL Software?
Third party logistics software or 3PL software is a technology solution designed to streamline and optimize the logistics operations of third-party logistics providers. These systems facilitate the management of various processes involved in supply chain logistics, including warehousing, inventory management, order fulfillment, and transportation. By automating tasks such as receiving, picking, packing, and shipping, 3PL logistics software enhances operational efficiency and accuracy. It allows businesses to maintain control over their logistics while outsourcing fulfillment tasks to specialized providers.
Key features of 3PL logistics software solution include real-time inventory tracking, order management capabilities, and integration with e-commerce platforms and shipping carriers. This enables businesses to gain end-to-end visibility into their supply chain operations and improve customer service through timely updates on order status. Overall, 3PL system software plays a crucial role in helping businesses navigate operational complexities and reduce costs while improving service in a competitive market.
What Does 3PL Software Do?
3PL software or third party logistics software is a specialized technology solution designed to streamline and optimize logistics operations for third-party logistics providers. It serves as an integral system that manages various aspects of supply chain logistics, including order management, inventory control, warehouse management, and transportation management. By automating these processes, 3PL management system enhances operational efficiency, reduces manual errors, and provides real-time visibility into inventory and order status. This allows businesses to manage their logistics more effectively while ensuring timely fulfillment of orders.
The software connects different elements of the logistics ecosystem, such as e-commerce platforms, shipping carriers, and accounting systems, creating a centralized hub for managing fulfillment operations. Key features typically include smart inventory management, route optimization for cost-effective transportation, and comprehensive reporting tools that aid in data-driven decision making. Understanding how to manage 3PL performance empowers logistics providers to deliver efficient and transparent services to their customers while enabling businesses to focus on core operations without the burden of managing complex logistics processes.
How to Evaluate 3PL Software
To effectively evaluate third party logistics software, several critical factors and methodologies should be considered. These include both the operational capabilities of the software and the strategic alignment with your business needs. Here are some critical factors to consider when evaluating third-party logistics software:
Assess your business needs: Identify the specific logistics challenges your business faces and determine the essential features required to address them. This includes understanding your needs in order management, inventory control, and transportation management.
Budget considerations: Define a budget that encompasses not only the initial purchase costs but also ongoing expenses such as maintenance and updates. Understanding the total cost of ownership is crucial for making a sustainable investment.
Scalability: Ensure that the software can grow with your business. A scalable 3PL logistics software solution allows for adjustments as your logistics needs evolve, accommodating future expansion or increased demand.
Integration capabilities: Evaluate how well the software integrates with your existing systems, such as ERP and CRM platforms. Seamless data exchange is essential for maintaining operational efficiency and avoiding data silos.
Technology and innovation: Look for advanced technologies that enhance automation and reduce errors. Features like real-time tracking and robust reporting tools are vital for improving logistics operations.
Support for multiple accounts: If your business operates across various divisions or locations, ensure the software can support multiple user accounts. This allows simultaneous access for different teams and enhances collaboration.
Performance metrics: Establish key performance indicators to measure effectiveness; understanding how to manage 3PL performance through these metrics is crucial. Regularly tracking metrics such as on-time delivery rates, order accuracy and customer satisfaction is essential for assessing performance.
Compliance with industry standards: Ensure that the software complies with relevant regulations regarding product packaging and labeling. Compliance can vary by industry, so it's important to choose software that meets these specific requirements.
Features of 3PL Software
Third party logistics software or 3PL software is essential for managing logistics operations efficiently. Here are some key features that enhance the functionality and effectiveness of 3PL management systems:
Real-time tracking and visibility: Real-time visibility in last mile 3PL allows both logistics providers and clients to monitor shipments and inventory levels continuously. This feature enhances transparency by providing updates on order statuses, enabling proactive decision making and improving customer satisfaction through timely information.
Automated invoicing and billing: Automated invoicing capabilities streamline the billing process by generating invoices based on predefined criteria such as fulfillment activities and service rates. This reduces manual errors, saves time, and ensures that all transactions are accurately billed which helps maintain healthy cash flow.
Inventory management: Effective inventory management features help businesses maintain optimal stock levels, track inventory across multiple locations, and automate restocking processes. This reduces the risks of overstocking or stockouts, ensuring that the products are available when needed while minimizing carrying costs.
Order management: Order management functionalities help streamline the order processing workflow by allowing users to filter, search, and track orders efficiently. This feature enhances accuracy in order fulfillment and improves customer service by providing clear visibility into order statuses.
Seamless integrations: Integration capabilities with various platforms such as e-commerce sites, ERPs and accounting software are crucial for a well coordinated operational flow. These integrations facilitate data synchronization across systems, enhancing efficiency in managing orders, inventory, and financial transactions.
Analytics and reporting: Advanced analytics tools provide insights into KPIs such as order accuracy, fulfillment times, and inventory turnover. This data-driven approach helps logistics managers make informed decisions to optimize operations and improve service quality.
Returns management: Returns management features in last mile 3PL automate the process of handling product returns, including generating return labels and updating inventory levels accordingly. This streamlines the returns process for customers and reduces operational costs associated with return handling.
11 Best 3PL Software in 2024
1. FarEye
FarEye is a leading 3PL software solution designed to enhance logistics operations through real-time visibility and automation. Its key features include flexible workflows, allowing users to design and implement processes without coding, which is crucial for adapting to changing business needs and increasing last mile 3PL efficiency. The 3PL last mile delivery platform supports automated dispatching, reducing manual planning time and improving operational efficiency by enabling drivers to get on the road more quickly. Additionally, FarEye offers real-time visibility, ensuring that both businesses and customers are informed about shipment statuses at all times. The software integrates seamlessly with warehouse management systems, providing a comprehensive view of the supply chain from order placement to delivery. FarEye's emphasis on sustainability also sets it apart, as it helps businesses optimize their delivery operations to minimize carbon footprints.
2. Deposco
Deposco is a 3PL logistics software that excels in multi-client inventory management, making it ideal for businesses that serve various clients simultaneously. Its user-friendly interface allows for quick onboarding and real-time visibility into inventory levels, which is crucial for maintaining efficient operations. Key features include order fulfillment automation, enabling businesses to streamline their processes and reduce manual errors. Deposco also supports integrations with various e-commerce platforms, enhancing its utility for online retailers. The software's analytics capabilities provide insights into performance metrics, helping businesses optimize their supply chain strategies. Additionally, Deposco's cloud-based architecture ensures scalability, allowing users to adjust their operations as demand fluctuates.
3. ShipBob
ShipBob offers a robust 3PL software solution tailored specifically for e-commerce brands seeking efficient order fulfillment and inventory management. The platform is built on a proprietary warehouse management system that integrates all aspects of fulfillment, providing users with real-time insights into inventory across multiple locations. Key features include automated order processing, which minimizes manual intervention and speeds up fulfillment times, and one-click integrations with major e-commerce platforms. ShipBob also provides real-time shipping rate comparisons, allowing businesses to choose the most cost-effective shipping options for each order. This capability not only enhances operational efficiency but also improves customer satisfaction by ensuring timely deliveries. Moreover, ShipBob's technology stack is designed to scale with business growth, making it an ideal choice for both startups and enterprises looking to optimize their logistics operations.
4. Mintsoft
Mintsoft is a comprehensive 3PL management system designed for warehouse management and order fulfillment, particularly suited for businesses in the e-commerce sector. Its key features include inventory tracking, which provides real-time updates on stock levels across multiple warehouses, ensuring that businesses can manage their inventory efficiently. Mintsoft also offers customizable workflows, allowing users to tailor the system according to their specific operational needs. The platform's integration capabilities enable seamless connections with various e-commerce platforms and shipping carriers, facilitating smooth order processing from start to finish. Additionally, Mintsoft includes robust reporting tools that help users analyze performance metrics and identify areas for improvement in their logistics processes. With its focus on user-friendliness and flexibility, Mintsoft is a good choice for businesses looking to enhance their warehousing capabilities while maintaining high levels of customer service.
5. Extensiv
Extensiv is a 3PL system software focused on distribution-based logistics operations. It offers a cloud-based platform that provides comprehensive visibility across the supply chain, enabling users to manage inventory effectively and fulfill orders promptly. Key features include real-time tracking of shipments and inventory levels, which enhances operational transparency and helps prevent stockouts or overstocks. Extensiv also supports multi-client handling, making it an ideal choice for 3PL providers serving diverse clientele. The software's automation capabilities streamline repetitive tasks such as order processing and shipping label generation, significantly reducing manual workload and errors. Additionally, Extensiv's analytics tools provide actionable insights into performance metrics, empowering businesses to make data-driven decisions that enhance efficiency and profitability.
6. ShipHero
ShipHero is a cloud-based 3PL logistics software designed specifically for e-commerce fulfillment services. It provides an all-in-one solution that integrates warehouse management with shipping logistics, allowing businesses to manage their entire fulfillment process from a single platform. Key features include mobile scanning for picking and packing processes, which increases accuracy and speed during order fulfillment. ShipHero also offers real-time ship rate shopping, enabling users to compare shipping costs across various carriers instantly, thus optimizing shipping expenses per order. The platform supports multi-warehouse operations, allowing businesses to allocate orders efficiently based on proximity to customers or inventory levels. Additionally, ShipHero's robust reporting tools help track key performance indicators, enabling continuous improvements.
7. Magaya
Magaya is tailored specifically for cold storage logistics but offers versatile solutions suitable for various types of 3PL operations as well. Its strengths lie in its robust inventory management capabilities that cater specifically to temperature-sensitive products requiring tracking throughout the supply chain process. Key features include real-time inventory tracking that ensures compliance with health regulations while minimizing waste through precise monitoring of stock levels and expiration dates. Magaya also provides tools for managing complex billing scenarios commonly found in cold storage operations, including handling multiple clients. The software's user-friendly interface facilitates quick training for staff members, ensuring smooth adoption across teams. Furthermore, Magaya's reporting capabilities offer insights into operational efficiencies and help identify areas needing improvement.
8. Korber
Korber is a 3PL logistics software solution tailored for healthcare and pharmaceutical logistics but is versatile enough for other industries as well. Its software focuses on compliance with stringent regulatory requirements typical in these sectors while enhancing overall operational efficiency through automation and advanced analytics capabilities. Key features include automated task assignments that streamline workflows within warehouses, ensuring timely processing of orders while maintaining high accuracy levels essential in healthcare logistics. Korber's platform also supports real-time tracking of shipments and inventory levels across multiple locations, providing comprehensive visibility throughout the supply chain process. Additionally, its integration capabilities allow seamless connections with existing ERP systems or other third-party applications.
9. Infoplus WMS
Infoplus WMS is a 3PL system software designed primarily for small to mid-sized 3PLs seeking a robust warehouse management system that simplifies operations while providing advanced functionalities. Key features include multi-client handling, which allows users to manage different client inventories under one system efficiently without compromising data integrity or operational efficiency. Infoplus also offers customizable workflows tailored to specific business needs; this flexibility enables businesses to adapt quickly as market demands change or evolve over time. The platform's reporting tools provide actionable insights into performance metrics related to order processing times and inventory turnover rates, empowering businesses with data-driven decision making capabilities essential for growth in competitive markets.
10. ShipMonk
ShipMonk is a 3PL logistics software solution that specializes in e-commerce fulfillment. The software integrates seamlessly with various sales channels, enabling businesses to manage inventory, orders, and shipping from a single interface. Key features include an inventory management system that allows the users to track stock levels across multiple platforms and receive alerts for low inventory. The order management portal automates the fulfillment process by synchronizing with sales channels, ensuring that customers are kept informed at every stage of their order journey. ShipMonk's shipping management system provides real-time rate comparisons and access to discounted shipping options through partnerships with major carriers. Additionally, the platform supports warehouse management, allowing users to optimize inventory storage across multiple locations and fulfill orders based on predefined criteria. With multiple plug-and-play integrations, ShipMonk offers flexibility and scalability for businesses of all sizes. Their commitment to transparency includes detailed reporting on inventory and order statuses. Overall, ShipMonk empowers e-commerce brands to enhance operational efficiency while focusing on growth and customer satisfaction.
11. Logiwa WMS
Logiwa WMS is designed to optimize operations for high-volume fulfillment networks. As a cloud-native solution, it leverages AI-powered inventory management to provide real-time visibility into stock levels across multiple warehouses. This allows businesses to track inventory accurately, manage expiration dates, and respond effectively to demand fluctuations. The platform features automated shipping and packing functionalities that streamline order processing. Using smart automation rules, Logiwa can determine the most suitable shipping containers and carriers based on specific criteria, thus enhancing order accuracy and reducing shipping costs. Additionally, it generates essential documentation like packing slips and shipping labels automatically upon order receipt. Its intuitive user interface allows for quick onboarding, enabling businesses to adapt swiftly to changing market demands. Furthermore, Logiwa WMS offers robust security measures, ensuring that sensitive data is protected while maintaining operational continuity.
Frequently Asked Questions
What Does 3PL Software Do?
3PL software is a technological solution designed to help third-party logistics providers manage their order fulfillment and warehousing operations. It automates various processes such as order tracking, inventory management, and billing, which helps reduce human errors and operational costs. By providing real-time insights and analytics, 3PL software enables businesses to make informed decisions regarding inventory levels and resource allocation, enhancing efficiency and customer satisfaction. Additionally, it allows for integration with clients' systems, ensuring seamless updates and improved communication across the supply chain.
How Do 3PLs Work?
3PLs operate by managing logistics functions on behalf of their clients. They handle tasks such as receiving inventory, storing products in warehouses and fulfilling orders. Leveraging advanced software systems, 3PLs can streamline these processes, improve accuracy, and enhance operational efficiency. They serve multiple clients simultaneously, often customizing services to meet specific needs while maintaining real-time visibility of inventory and shipments. This enables businesses to focus on their core operations while outsourcing complex logistics tasks.
What is 3PL WMS Software?
A 3PL Warehouse Management System (WMS) is specialized software that helps third-party logistics providers manage their warehousing and logistics operations more effectively. It automates key tasks such as inventory tracking, order processing, and billing while providing real-time visibility into stock levels and order statuses. This system is essential for managing multiple clients' inventories from a single platform, ensuring that each client's data remains secure and tailored to their specific requirements. By enhancing accuracy and efficiency in warehouse operations, a 3PL WMS contributes significantly to improved customer satisfaction and operational scalability.
Conclusion
The landscape of third-party logistics software in 2024 reflects a significant evolution in how businesses manage their logistics operations. As businesses increasingly seek to enhance efficiency and customer satisfaction, the best 3PL solutions are characterized by advanced features such as real-time tracking, automated reporting, and seamless integration with e-commerce platforms. These tools not only streamline inventory management and order fulfillment but also provide critical insights through analytics, enabling data-driven decision making. The diverse range of software options available caters to various business needs, from startups to large enterprises, ensuring that logistics operations can adapt to the dynamic demands of the market. Overall, investing in the right 3PL software is essential for businesses to optimize their supply chain processes and maintain a competitive edge.
Komal Puri is a seasoned professional in the logistics and supply chain industry. As the AVP of Marketing and a subject matter expert at FarEye, she has been instrumental in shaping the industry narrative for the past decade. Her expertise and insights have earned her numerous awards and recognition. Komal’s writings reflect her deep understanding of the industry, offering valuable insights and thought leadership.