The best 3PL software, or third-party logistics software, simplifies the management of supply chain processes such as transportation, warehousing, and inventory control by outsourcing these tasks to external providers.
We’ve personally reviewed and analyzed dozens of the top options using our internal review methodology. Here are our top picks:
1 ShipBob - Best Overall
Why We Chose It: ShipBob is our top pick, offering a unique blend of warehousing, inventory management, and distribution services tailored to eCommerce businesses. We found its global fulfillment network worth mentioning, enabling 3PL companies to store their inventory closer to their customers. Ultimately, this helps reduce shipping costs and delivery times.
Additionally, ShipBob provides real-time visibility into inventory levels, order status, and detailed analytics. The software integrates with major eCommerce platforms like Shopify, WooCommerce, and Amazon, ensuring smooth operations from storefront to customer delivery.
2 ShipHero - Best Warehouse Automation
Why We Chose It: ShipHero made our list for its strong warehouse management features, boosting accuracy in order fulfillment. Specializing in automation, ShipHero allows for streamlined picking, packing, and shipping processes, reducing the likelihood of errors and increasing order fulfillment speed.
We also found ShipHero’s more advanced tools noteworthy, including batch shipping, barcode scanning, and real-time inventory tracking. Finally, the platform includes customizable workflows and detailed reporting capabilities, providing 3PL companies with the flexibility and insights needed to improve their fulfillment operations…
FishBowl - Best for Manufacturing
Why We Chose It: We found Fishbowl best for small and midsize 3PL businesses in manufacturing and warehousing. Fishbowl streamlines manufacturing with customizable bill of materials, production tracking, and QuickBooks integration for cost management.
In terms of warehousing, Fishbowl handles precise barcode scanning and strategic routing for effective order picking. It integrates effortlessly with major shipping providers, including FedEx and UPS, to ensure a smooth dispatch process. Finally, Fishbowl aids in procurement through vendor pricing rules and auto-generated purchase orders.
4 ShipMonk - Best for Multichannel Fulfillment
Why We Chose It: ShipMonk is our top pick for multichannel fulfillment, catering to businesses that sell across several online platforms. The software syncs with eCommerce apps and marketplaces, consolidating orders into a single, intuitive dashboard. This integration simplifies the fulfillment process for sellers using services like Shopify, Amazon, and eBay.
ShipMonk also delivers advanced inventory management, kitting, and subscription box fulfillment. Overall, we found it highly versatile for 3PL businesses expanding their reach across online stores, social media platforms, and brick-and-mortar locations.
5 Körber - Best for Enterprises
Why We Chose It: Körber (formerly HighJump) is our go-to for companies managing complex supply chains, especially at the enterprise level. This is due in part to its flexible invoicing system, EDI connectivity, and management of value-added services like pre-assembly.
Körber’s performs well in environments requiring sophisticated workflows like automated material handling systems, cross-docking, labor management, and advanced analytics. The software’s flexibility allows it to be tailored to the specific needs of various industries, including retail, manufacturing, and third-party logistics.
6 Magaya - Best for Freight Forwarding
Why We Chose It: Magaya Supply Chain made our list as a logistics software designed for freight forwarding. The platform supports many shipment types, including export, import, and domestic, across various modes of transport such as ocean, air, and ground freight. It also covers the entire process from freight bookings and purchase order management to customs compliance.
We also like that Magaya provides real-time visibility and tracking information for customers. They can monitor their cargo from anywhere using the LiveTrack Plug-in. Finally, Magaya’s proof of delivery feature ensures there’s tangible evidence of goods being delivered to the intended recipient.
7 Logiwa WMS - Best for Mobile Access
Why We Chose It: Logiwa WMS is a solid pick for its mobile capabilities. The mobile app functions on industrial scanners, iOS, and Android devices, facilitating real-time tracking of orders and fulfillment processes. Warehouse staff can use mobile scanners for real-time updates, streamlining operations such as receiving, picking, packing, and shipping.
In our demo of Logiwa WMS, we found the mobile interface intuitive, making it easier for staff to navigate and complete tasks effectively. Additionally, the platform integrates with over 240 third-party applications like QuickBooks Online, Shippo, Xero, Shopify, and Squarespace.
8 Infoplus WMS - Best for Small 3PLs
Why We Chose It: Infoplus WMS is a comprehensive solution for small to midsize 3PLs, eCommerce retailers, and wholesalers. It helps take control of inventory, warehouse operations, and shipping, which are critical for these businesses.
With a simple-looking interface without sacrificing the number of features it offers, Infoplus WMS streamlines operations, enhancing productivity and providing better control over the entire supply chain.
9 WISE WMS - Best Inventory Tools
Why We Chose It: We picked WISE Warehouse Management System for its real-time inventory control, optimizing warehousing and distribution processes. Developed by Royal 4 Systems, WISE leverages RFID and barcode technology to offer accurate, up-to-the-minute inventory tracking. This ensures that stock levels, order fulfillment, and replenishment are managed efficiently.
Overall, we found WISE efficient at minimizing sockouts and excess inventory. It optimizes warehouse space, enhances load organization, and ensures timely replenishment, offering a complete solution from the procurement to the final delivery.
What is 3PL Software?
Third-party logistics (3PL) software enables 3PL businesses to carry out their high volume work with greater accuracy, improved traceability, and speed.
Third-party logistics software, often shortened to 3PL logistics, makes it possible for companies to automate their logistics and fulfillment processes with third-parties. The main modules provided by 3PL software include:
- Inventory management
- Order fulfillment
- Billing and invoicing
- Supply chain management
- Customer relationship management (CRM)
- Warehouse management systems
Sometimes part of end-to-end logistics or warehouse management platforms, for organizations of any size, 3PL systems track and organize items across the entire supply chain and to ensure goods arrive at their intended destination.
Who Uses 3PL Software?
Third-party logistics providers coordinate the ever-important work of transporting and tracking goods throughout the world. From warehouses to delivery trucks, modern and capable software solutions ensure transparency across the entire supply chain.
3PL software is built to handle the various needs of multiple clients, each with their own set of operational processes and billing requirements, including eCommerce. With the right 3PL software, third-party logistics operations can generate more revenue, take greater control over operations, and enhance customer experience.
Benefits of Third-Party Logistics Software
3PL software must be comprehensive enough to handle the needs of warehouses, fulfillment centers, and sources throughout the supply chain. As such, the full functionality of 3PL software can make any logistics operation more efficient and powerful through these benefits:
1 Improved warehouse management and inventory control
3PL software typically features comprehensive warehouse management functionality, enabling client-specific workflows to oversee inbound, outbound, and inventory-control processes.
Real-time visibility into the supply chain ensures transparency and accuracy of inventory throughout the warehouse.
2 Streamlined labor management
Based on built-in standards performance, 3PL software can track and compare employee performance to ensure your warehouse staff works to its highest capability. Employee management can ensure warehouse operations are done right.
3 Efficient workflows
By building a customized 3PL WMS workflow, staff and operations can work at their maximum efficiency to meet the needs of a particular client, product, or fulfillment order.
The result is faster fulfillment, greater accuracy, and higher customer satisfaction.
4 Cheaper, faster, and more reliable shipping
A signature feature of 3PL software is the coordination of shipping and receiving. Many 3PL software packages include unique systems to determine the best shipping rates, track packages, and improve configurable kitting.
Shipping functionality can compare pricing among major carriers like FedEx, UPS, and USPS, and ensure shipments remain compliant with shipping regulations. Most 3PL solutions also include reverse logistics capabilities to enable returns processing functionality.
5 Accurate invoicing
The invoice functionality of 3PL software ensures third-party logistics providers don’t miss out on revenue. Built-in billing capabilities make it easy to invoice clients, measure sales metrics, and adhere to difficult billing rules in order to maximize revenue.
Most 3PL software includes billing as a core product feature and offers integrations with popular financial and accounting software systems.
6 Paperless document capabilities
Rather than being stuck in a 20th-century paperwork mindset, document management capabilities optimize the storage and retrieval of electronic documents across the entire platform.
For instances where physical copies are required, 3PL software makes it easy to scan, store, and share copies across the entire enterprise.
7 Better transportation management
3PL software often features fleet and transportation management capabilities. Supplementing the features of a full transportation management system, 3PL software capabilities can oversee transportation planning, execution, operations, and management tasks, as well as interact directly with brokers and shippers.
8 24/7 access
Thanks to cloud 3PL software, web-based portals can be accessed anywhere, anytime, offering real-time access to critical information around the clock.
Web-based 3PL software portals can be fully customizable, creating an intuitive and comprehensive branded user interface.
How Do You Choose The Best 3PL Software?
Because all logistics operations have vastly different needs, it is crucial to understand the 3PL software features your company requires. There’s no one-size-fits-all solution that works for every 3PL provider. The best type of 3PL software for your business depends on the size and scale of your operations:
- Small businesses may prefer using a turnkey 3PL software solution that offers full logistics capabilities of-of-the-box, without the need for extensive customization or detailed integration with additional logistics systems. This might be the best choice if your ideal system can be run over the internet.
- Medium-sized businesses may benefit from comprehensive capabilities offered by 3PL software packages like RFID tracking, enabling products, tools, and vehicles to be tracked automatically through wireless RFID tags and scanners.
- Large enterprises should seek 3PL software that integrates seamlessly with existing or legacy software systems to ensure a steady flow of business with minimal disruption to existing fulfillment operations or processes.
Pain Points Solved By 3PL Software
Most third-party logistics struggle with the same two essential pain points: labor and space. To reduce the cost of operations, it’s crucial to maximize capabilities through actionable information.
- 3PL software makes it possible to accurately oversee inventory throughout the entire supply chain process. With real-time visibility, logistics providers can deploy resources on an as-needed basis, ensuring space is maximized and goods aren’t wasted.
- Warehouse management capabilities can also ensure staff is deployed efficiently, has measurable performance, and has the resources available to carry out fulfillment.
Market Trends in 3PL Software
The importance of the logistics industry has led to many innovations in the 3PL software space. To maximize efficiency across the supply chain, 3PL software solutions have been rapidly adopting new technologies to help logistics companies streamline their operations.
Some of the current market trends in 3PL software include:
- Mobile and cloud solutions. Overseeing logistics operations no longer means having to be physically present at a warehouse or distribution center. Thanks to an abundance of mobile applications and cloud-based 3PL software platforms, logistics providers can access and manage their workflows from virtually anywhere.
- Artificial intelligence. Thanks to enhanced wireless capabilities from Internet-of-Things (IoT) sensors or RFID tracking, inventory can be now automatically tracked without the need for manual entry. Those capabilities are being further enhanced by comprehensive artificial intelligence tools, using data and machine learning to anticipate demand or suggest preventive equipment maintenance.