You may have witnessed that more companies have started exploring new opportunities in the e-commerce domain. It not only expanded their business kingdoms but also extended new paths towards third-party logistics (3PL) companies. The reason for this increased demand in 3PL services is that many companies seek ways to stay away from the potential burden that is associated with logistics and warehouse operations. This is where the $1.35 trillion worth 3PL industry sees the necessity for technological backup. WMS, or the Warehouse Management Software, is, on the surface, the best possible solution to handle complexities in the 3PL service landscape. However, did you know that a 3PL company cannot select WMS software just like any other single-brand company does? WMS technology might act as a double-edged blade in the fast-moving business world. While the right tools can help a 3PL company achieve success, outdated software can be the reason behind failures.
In this article, we reveal how a 3PL provider can select WMS software for their organisation, along with must-have features and selection criteria.
What is a WMS?
A warehouse management system (WMS) refers to a software solution that comes with a variety of different modules or functionalities that manage everything from warehousing to logistics. The software is enriched with abilities such as tracking real-time inventory throughout its entire movement cycle until it gets shipped out to the end customers.
In other words, 3PL companies utilise WMS as their primary operating system. However, even in a digital realm, we can see that many 3PLs still do not choose their WMS as their first choice. When they replace existing, traditional software that failed to scale and function under multi-client complexity, companies explore the advantages and see it as the best technological alliance to achieve their goals.
With the right WMS, 3PL companies can reduce errors significantly, make billing perfect and accurate, conduct timely audits without errors, and gain transparency throughout the entire service cycle under one dashboard.
Key Takeaways
- In this modern day, 3PL providers require a dedicated WMS as it can help them manage multiple clients at the same time with the embedded carrier, ERP, and e-commerce integration pillars.
- A powerful WMS offers real-time visibility in live operations while improving inventory control and enhancing customer satisfaction.
- Scalable WMS platforms support growth across clients and warehouse locations.
Key Features of WMS for 3PL Providers
Before making a purchase of a WMS, it is a must to evaluate WMS options for a 3PL operation against all sorts of odds. 3PL companies need a scalable solution that is built for a multi-client, service-based logistics landscape.
Flexible Picking, Packing, and Storage Rules
Not all of your clients have the same set of requirements. When one client expects FIFO (first-in, first-out) picking, another can be flexible towards any bin. Just like that, the client in the USA might go with batch orders; another client in Australia might expect single-order fulfilment. This is why a robust 3PL WMS must offer features to configure these rules per client without making any code changes.
Activity-Based Client Billing
3PLs cannot run without logging and billing every activity. Do you agree? It simply transforms your warehouse into a profitable operation. A sophisticated WMS must contain the features to automatically log elements such as receiving fees, pick-and-pack fees, storage fees, returns processing, and labour time for the right client.
Plus, it is a smart move to automate billing as the latter reduces administrative overhead and eliminates billing complexities significantly.
Multi-Client Inventory Controlling with Accurate Segregation
The advanced WMS platforms must be able to keep track of completely separate inventory records for each and every client.
This automation helps 3PLs remove the chances of cross-contamination. On the other hand, it guarantees accurate fulfilment. The WMS will isolate each client’s SKUs, storage locations, quantities, and movement history and record everything digitally.
Client-Facing Visibility Portals
It is a must to be transparent when it comes to clients’ orders, inventory, and shipments in real time. If the WMS can display the stock levels, pending orders, SKU, shipment tracking, and billing details, it will eliminate support inquiries.
Lot, Batch, and Expiration Tracing
In some industries such as food, pharmaceuticals, cosmetics, and other categories that are under strict regulations, the 3PL companies have to track lot numbers and demonstrate expiration dates in real-time.
In order to fulfill this requirement, the WMS platform must support FIFO expiry rotation and must be able to send automatic alerts for approaching expiration.
Full-Scale E-Commerce and ERP Integrations
There will be no compromising between the flow of orders from your clients’ sales channels into the WMS. This integration supports B2B and retail wholesale while guaranteeing adherence to customer requirements.
Scalability, Flexibility and Cloud Infrastructure
When e-commerce sees peak seasons, client growth, and promotional surges, 3PL companies have to align with them too. This will double the operational volumes. A cloud-based WMS can scale up while the business grows and process more orders with time.
Advanced Reporting and KPI Tracking
A 3PL WMS must come with the capacity to provide detailed dashboards whenever needed. It must show fulfillment speed, order accuracy rates, inventory turnover, labour productivity, as well as cost per unit dispatched.
How to Select the Best WMS for 3PL Providers
From scalability, multi-client alignment, billing, to reporting and integration capabilities, 3PL providers must be cautious when choosing the WMS type they expect to purchase.
1. The WMS Must be Able to Scale Up with Your Operations
Growth is every company’s dream, yet it is pointless if you do not have enough capacity to keep up. The 3PL WMS must offer the features to add new elements, varying from warehouse locations and customers, without interrupting the existing setups and billing models.
If it is a scalable, cloud-based platform, it must offer the storage and system capacity to grow automatically as your business grows.
2. The Platform Must Encourage Multi-Client Operations
You need to make sure the system supports multi-client logistics. If it is capable, then it must support multiple customers altogether, who come with different sets of data volume, pricing models, and workflows.
3. 3PL WMS with a Straightforward Billing and Commercial Protocols
One aspect 3PL providers cannot avoid is billing. First, check whether your system can offer you activity-based billing. The features must include flexible pricing models and automated invoice generation as well.
4. Deep Integration Flexibility
A 3PL WMS cannot work as an isolated system. It must interact smoothly with carriers, customer systems, ERP platforms, etc. Make sure this integration occurs quickly, as the faster you can onboard new customers and automate data flows.
This is where it needs strong APIs and standard connectors for marketplaces, webshops, and shipping systems.
How Tigernix Offers the Best WMS for Your 3PL Company
Tigernix has designed a robust WMS platform that can be tailored to 3PL organisations with features such as automated billing processes, powerful software integration, multi-client protocols, reporting and analytics, etc. With years of experience, we have a better understanding of what 3PL companies seek in the age of digital transformation, and we exactly serve their needs to cut costs, reduce errors, ease workloads, and automate and optimise business processes.
With its embedded AI, data analytics, IoT, and other Industry 4.0 capabilities, your 3PL organisation can achieve your business goals with heightened speed now.
Connect with us to request a personalised demo.
Tigernix-Digitalisation Is Not A Dream Anymore
Moving Forward Towards the Digital Age with the Right WMS
Whether you own a small, medium- to large-scale 3PL company, it is high time for you to make a smart transition from manual processes and spreadsheets. Enter the era of digitalisation with the right WMS and gain the optimal advantages and ROI without delays.
Are you ready for this scaling-up experience?
FAQ About WMS For 3PL Providers
Multi-client billing in the 3PL warehouses works by recording each warehouse’s activity for each client at the same time. Be it receiving, storage, picking, packing, or shipping, this method smoothly applies client-specific rates for each calculation.
Yes, a straightforward Warehouse Management System (WMS) that is tailored for a 3PL landscape can seamlessly segregate inventory for multiple clients.
It is a special feature that many modern Warehouse Management Systems (WMS) offer, and those tools are able to integrate with any sort of clients’ sales channels. In order to do that, your WMS must contain native plugins or APIs, automate order fulfillment, and sync real-time inventory counts across different market points.
3PL (Third-Party Logistics) providers integrate with flexible billing methods tailored to specific logistics activities, with most employing a hybrid model.
