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.
- ShipBob: Best Overall
- ShipHero: Best for Warehouse and Distribution
- FishBowl: Best for Manufacturing
- ShipMonk: Best for eCommerce Businesses
- Extensiv: Best eCommerce and Warehouse Integration Library
- Körber: Best for Enterprises
- Deposco: Best for Integrated Logistics Providers
- Infoplus WMS: Best for Small 3PLs
- Logiwa WMS: Strong Client Portals
- Magaya: Best for Freight Forwarding
- WISE WMS: Best Cold Storage
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, with numerous locations in the U.S., Canada, Europe, and Australia, enabling 3PL companies to store their inventory closer to their customers. Ultimately, this helps reduce shipping costs and delivery times.
Additionally, ShipBob earned a 9.0 score because it 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.
However, one drawback we found with ShipBob is that reviewers have mentioned customer service lacks transparency, and sometimes customers are oversold on services during ShipBob’s onboarding.
2 ShipHero - Best for Warehouse and Distribution
Why We Chose It: ShipHero made our list with an 8.9 score 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 fulfillment speed.
We also found ShipHero’s more advanced tools noteworthy, including batch shipping, barcode scanning, and real-time inventory tracking. The platform includes customizable workflows and detailed reporting capabilities, such as shipment, shipped items, inventory value, COGS (cost of goods), and stale inventory reports. However, a few reviews have mentioned that there have been billing errors with ShipHero.
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 bills of materials BOMs), production tracking, and manufacturing order types.
Fishbowl’s 8.2 score reflects its ability to handle 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, as well as accounting software like QuickBooks. Finally, Fishbowl aids procurement through vendor pricing rules and auto-generated purchase orders.
However, we found that Fishbowl has a somewhat steep learning curve for new users. Additionally, transactions don’t post to QuickBooks in real-time; you can only do it manually or schedule sync it.
4 ShipMonk - Best for eCommerce Businesses
Why We Chose It: We included ShipMonk as one of our top choices for eCommerce businesses due to its strong inventory, order, shipping, and return management features. ShipMonk provides a centralized order management portal that integrates with numerous sales channels like Amazon, Shopify, Instagram, and eBay. This portal allows businesses to track orders, manage inventory levels across multiple locations, and generate reports.
We also like that ShipMonk offers real-time visibility into stock levels, low-stock alerts, and best-selling SKUs. It also automatically routes orders as they come in from different channels to find the most optimal fulfillment center. However, one drawback we discovered is that their customer service team isn’t very responsive. Users have also complained about slow fulfillment times and shipping delays.
5 Extensiv - Best eCommerce and Warehouse Integration Library
Why We Chose It: We added Extensiv, formerly known as 3PL Central, to our list for its large integration library, advanced features, and customization capabilities. Extensiv integrates with various eCommerce platforms like Amazon, Walmart and Shopify, marketplaces, business systems, and shipping carriers like FedEx, UPS, and USPS. The software also offers developer services to build custom API or EDI integrations tailored to a user’s specific needs.
Extensiv can handle multiple clients within the same system by offering client logins and dashboards. This allows 3PL providers to take on more clients. We also like that Extensiv provides specialized tracking like FEFO (first-expired-first-out) for perishable goods and lot control. However, there is no free trial with Extensiv, so users won’t be able to test out the software before committing to it.
6 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 partly due to its flexible invoicing system, EDI connectivity, and management of value-added services like pre-assembly.
Körber performs well in environments requiring sophisticated workflows, such as 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.
However, one drawback users may find with using Körber is its steep learning curve and the complexity associated with its capabilities. Users have mentioned that it may require significant internal expertise and training for set up.
7 Deposco - Best for Integrated Logistics Providers
Why We Chose It: We picked Deposco due to its adaptability for integrated logistics providers (ILPs). Deposco’s software combines transportation warehouse and distributed order management systems into one platform. This allows ILPs to have full visibility and control over their inventory management, client services, and warehouse operations.
Deposco has a library of ready-made integrations, allowing 3PLs to connect with eCommerce platforms and marketplaces like Etsy, Wayfair, and OnBuy, ERPs, and CRMs. Its API integration enables real-time data exchange between clients systems and the software to allow for a seamless flow of inventory updates, shipping details, and order information.
We also like that Deposco can easily support custom requirements from various clients, such as complex shipping options, kitting, and retailer-specific labeling. This allows 3PLs to retain larger clients by providing tailored services.
8 Infoplus WMS - Best for Small 3PLs
Why We Chose It: We found Infoplus WMS suitable for small to mid-size 3PLs, eCommerce retailers, and wholesalers due to its automation features and pre-built integrations. This cloud-based software has features like machine learning for optimized picking methods, cartonization tools, and barcode scanning that can help small 3PLs streamline their operations.
Infoplus WMS provides pre-built integrations with eCommerce platforms like eBay and ChannelAdvisor, EDI partners, accounting software, and shipping carriers like DHL, UPS, and USPS. This seamless data sharing allows smaller 3PLs to track inventory, process orders, manage finances, and coordinate shipments to meet their clients’ specific needs.
With a simple-looking interface without sacrificing the number of features it offers, Infoplus WMS can enhance productivity and provide better control over the entire supply chain. However, the software has limited customization options, which could potentially be a drawback for companies with complex supply chain requirements.
9 Logiwa WMS - Strong Client Portals
Why We Chose It: Logiwa WMS is a WMS and order fulfillment software that provides strong client portal capabilities. These online portals allow clients to access data on their orders, shipments, returns, and inventory levels. Clients can also get visibility into detailed transaction history like receipts, value-added services, packing, storage, billing, and returns.
Logiwa offers a mobile app that functions on industrial scanners, iOS, and Android devices, facilitating real-time tracking of orders and fulfillment processes. Warehouse staff can use mobile scanners for instantaneous 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. However, one drawback we found with Logiwa is that users will need to request a quote in order to receive pricing details.
10 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.
However, some users have mentioned that there are limitations in managing a large number of packages within a single shipment, which could lead to potential performance issues.
11 WISE WMS - Best Cold Storage
Why We Chose It: We picked WISE Warehouse Management System for it’s catering toward cold storage facilities. WISE offers features like anniversary date billing, kitting, re-packaging, barcoding, and RFID technology for accurate inventory tracking.
We like that WISE supports omnichannel fulfillment workflows, which can be highly beneficial as consumer demand for faster delivery grows. The software also offers flexible billing options such as daily, weekly, monthly, quarterly, or yearly invoicing.
WISE integrates with popular shipping solutions and carriers like UPS and FedEx. However, one drawback of WISE is that it lacks transportation management features for tracking freight. This could create potential inefficiencies for 3PLs that require comprehensive visibility into shipment movements.
What is 3PL Software?
Third-party logistics (3PL) software enables 3PL businesses to carry out high-volume work with greater accuracy, improved traceability, and speed.
Third-party logistics software 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 ensure goods arrive at their intended destination.
Who Uses 3PL Software?
3PL software is used by third-party logistics providers, freight forwarders and brokers, warehousing and distribution companies, and businesses that outsource their logistics. 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 its 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 their customers’ experiences.
Top Benefits
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
This 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 tools 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 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
Document management capabilities optimize the storage and retrieval of electronic documents across the entire platform.
For instances where physical copies are required, software makes it easy to scan, store, and share copies across the entire enterprise.
7 Better transportation management
This 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
With cloud 3PL software, web-based portals can be accessed anywhere, anytime, offering real-time access to critical information 24/7.
Online portals can be fully customizable, creating an intuitive and comprehensive branded user interface.
How Do You Choose The Best 3PL Software?
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 software solution that offers full logistics capabilities out-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 software that integrates seamlessly with existing or legacy software systems to ensure a steady business flow with minimal disruption to existing fulfillment operations or processes.
Solving Pain Points
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.
- Software makes it possible to oversee inventory throughout the entire supply chain process accurately. With real-time visibility, logistics providers can deploy resources as needed, 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 for fulfillment.
Order management is easier than ever when Logiwa WMS lets you review different channels and carriers all in one location.
Market Trends
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 rapidly adopted 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 many 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 now be automatically tracked without the need for manual entry. Those capabilities are being further enhanced by comprehensive artificial intelligence tools, which use data and machine learning to anticipate demand or suggest preventive equipment maintenance.
Pricing Guide
Start-up costs for 3PL cloud software can be as low as $400 per month. However, depending on the size of your organization or the number or users or orders, prices can be upward of $3,000 - $5,000 per month. For on-premise software, companies can expect to pay a one-time fee of roughly $25,000 - $250,000.
