5 Ways a Warehouse Management System Boosts 3PL Productivity

Third Party Logistics

The warehouse industry is directly linked to the timely delivery of goods. Warehouse managers must keep up with customer demands and adjust their operations according to market conditions. However, the rise of e-commerce platforms has affected the operations of logistics companies. Due to the influx of online orders, warehouse operators have been experiencing a shortage of experienced and skilled staff members.

Despite the numerous advantages of online shopping, most customers still expect their products to be delivered within 24 hours. This is mainly due to the increasing number of platforms that offer express delivery options.  

Thus, getting started in the warehouse industry can be challenging for small and medium-sized businesses. However, the right warehouse management system can boost your 3PL productivity. Here’s how you can start building a solid customer relationship with the proper management system: 


1. Better Stock Visibility 

With a better warehouse management system and an inventory visibility system, you can keep tabs on the status of your stock in real time. This enables customers to learn about the products and services you provide in great depth.  

You can better prepare for the unexpected and make smarter business choices with complete inventory insight. You’ll also benefit from cost savings and productivity enhancements. Online businesses can respond swiftly to demand if they have insight into their inventory levels. 

Moreover, through an in-house warehouse management system, you can monitor and oversee supplies’ movement and shipping status. As a result, you’ll be able to communicate with shipping businesses better.  


2. Improved Agility 

Warehouse management requires agility. It lets you respond rapidly to changes in the environment and streamline your processes. Major and intricate pivots are the most common. The former entails introducing new items or altering the infrastructure while the latter involves adapting to unexpected occurrences and projections.

Due to the competitive market, shops might penalize consumers for late deliveries. This is where flexibility and agility come in. Flexibility is essential in satisfying today’s customer expectations. Your 3PL operations should be regularly built up to avoid fines to manage unexpected traffic increases. 


3. Easier Invoicing and Billing  

When it comes to billing and invoicing, take a look at some of the emerging issues and provide some pointers for putting some recommendations into action. With a warehouse management system, you can explore the billing of warehousing services, which often entails the transportation of items, in further detail. Through specialist software, 3PL billing may be made to run itself.  

Alternatively, it might be a part of inventory management or a warehouse management system. Aside from the software, additional instruments, such as accounting software, are used to manage the bill. 


4. Scalability and Flexibility  

A 3PL company caters to a wide variety of clients and comes with specific needs of its own. An integrated transportation and distribution system must adapt to impediments as they arise with this amount of demand. Instead of charging a monthly fee, the 3PL warehouse management system charges per transaction.  

Small-scale firms may easily accommodate customer satisfaction and sales volume, making it possible for them to meet their customers’ expectations. This cutting-edge third-party logistics solution also makes it easier to manage inventory and shipping during periods of increased seasonal demand. 

Furthermore, this means that in-house storage can only handle what you’ve arranged for it to accomplish. To deal with an unexpected issue, the staff will have to spend time and energy developing a new solution—which may not work or be practical-based on the way things are established. 


5. Cost-Effectiveness In the Long Run 

In-house warehousing typically comes with a significant price tag. Aside from the equipment and operating costs, it would help to consider factors, such as taxes and hiring consultants. Your market may be hindered in the early stages of the development process if you build them from scratch. 

Having the right warehouse management system in place can help avoid building your warehouse. It can help minimize risk and improve your productivity too. Working with carriers on behalf of a large number of clients, 3PLs are able to negotiate lower rates based on volume and frequency of orders. 

You can find your firm’s proper supply chain configuration with a sound warehouse management system. An intelligent 3PL warehouse management system would give you a cost-effective solution for your company’s demands. 



An essential component of a company is financial management. So, a good 3PL partner must supply your company with total financial visibility. A wide range of services is provided by 3PLs or third-party logistics providers using an effective warehouse management system. Therefore, instead of creating new business units, many companies choose to work with an outsourced service provider to handle all of their administrative tasks.