Top 3PL (3rd Party Logistics) Software for eCommerce

Introduction

Normally, there is almost always a bad repo associated with third parties especially when they are the noisy neighbors crashing your Sunday dinner. But, only in eCommerce logistics will you find an exception.

The third-party logistics companies or 3PLs are not interveners but overseers of supply chain management. These are companies specializing in carrying out timely order fulfillment (that’s picking, packing, and shipping orders), offering warehousing, and returns management.

3PLs are used by almost 90% of Fortune 500 companies in the world. That says everything about their strategic role in directing the flow of inbound and outbound logistics for eCommerce brands. A 3PL software is the virtual representation of a 3PL company. In other words, it’s a program that gives you the remote control to monitor, direct, and use their 3PL services.

In this article, we present the details of a 3PL software and give you a list of 5 third-party logistics software that can be your next digital best friend. 

What is a 3PL Software?

A 3PL software is a cluster of technologies that securely manages warehouse operations and the inventory stored inside it. Its nucleus contains three elements- order fulfillment, inventory control, and shipping optimization. 

Since the service range of many 3PLs incorporate these three broad operations, a 3PL software gives its user an easy way to control and supervise such actions.

For example, it offers in-depth tracking of SKU counts and of shipments enroute to customers. Similarly, it helps you categorize and filter inventory into easily manageable SKUs to sell.

The core strength of a 3PL software lies in its adoption and utilization of technology, most specifically, automation. Hence, 3PL software can trigger order replenishments based on auto-pilot as soon as a high demand SKU nears the out-of-stock mark. In general a 3PL software has broadly these functions:

• Inventory management like handling inbound and outbound shipments.
• Order management like streamlining, picking, packing, sorting, custom packaging etc.
• Distributed inventory management like demand forecasting for placing SKUs in different warehouses and near high-demand areas.
• Returns optimization including label generation, pickup scheduling, QC evaluation etc.
• Shipping performance control centering around order tracking, order cancellations, customer notifications etc. 

Top 3PL (3rd Party Logistics) Software for eCommerce Companies

1. ShipBob

ShipBob is an omni-channel logistics organization that has over 50 fulfillment centers spread across five countries. Its 3PL services exhibit a comprehensive range of products revolving around order fulfillment, inventory control, and shipping.

The platform’s most well-recognized offering is its native cloud-based 3PL software used by 1000+ brands like BAKblade and Brummel. What’s special about this technology is that it’s easy to integrate into your existing tech stack. This way you can launch a complete warehouse management solution from your backend. 

It also comes with a replica of PlayStore containing apps for marketing, web development, custom packaging, etc.

Here are its key highlights:

• Multi Channel order fulfillment for 14 eCommerce marketplaces and storefronts.
• Tailored inventory distribution using its AI Decision Engine that strategically places SKUs in locations anticipating demand.
• Order prep for omnichannel logistics including retail distribution, dropshipping, D2C fulfillment, and Amazon FBA.
• Remote access to manage warehouses including inventory tracking, order management, and branded packaging.
• Streamlined and flexible picking and packing workflow centering around cluster and single order packing.
• International shipping with DDP assistance across 250+ countries and unrivaled 2-day shipping for USA consumers.

2. FarEye

FarEye’s captivating mantra “First choice for last-mile logistics” speaks volume about its confidence in its proprietary 3PL software. And for good reasons. FarEye marries 3PL software with a warehouse management system to give unmitigated logistics support. 

Backed by investors like TVC and Honeywell, FarEye is present in 6 countries. Although it emulates some capabilities of a 3PL software, the core strength of FarEye lies in delivery optimization. It’s a good choice of a third-party logistics software that exclusively focuses on improving last-mile performance of brands.

Here are some of its most promising services:

• A complete tracking tower for monitoring on-time in-full deliveries irrespective of the modes of transportation. 
• Proactive surveillance for delays and shipping exceptions from the first mile to the last-mile.
• Swift integrates with any third party 3PL logistics software including WMS, OMS, and ERP systems. 
• Route optimization, precise geocoding, and automated order assignments to drivers based on AI algorithms. 
• All-inclusive returns management revolving around pickup scheduling, receipt, product inspections, and exchange processing.
• On-demand fulfillment of grocery goods managing inventory, arranging hyperlocal shipping, and giving real-time visibility.

3. Shipsy

Shipsy is an all-in-all technology platform that combines the strengths of a warehouse management system with a transportation management solution. Its 3PL (3rd party logistics) software version implants digital transformation among online merchants. Its warehouse efficiencies are useful for brands in omni-channel retail and quick commerce.

In the domestic shipping front, it facilitates end-to-end carrier management and order allocation with pre-integrated 3PL aggregators. On the international front, Shipsy consolidates different freight rates for instant bids and convenient booking of 50+ shipping lines. 

Here are the major highlights of its 3PL inventory management tools:

• Optimized inventory management for inbound shipments with a special shelf-life management model.
• Complete control over GRN (Goods Received Notes) against purchase orders and automated quality check of products. 
• East to assign batch, zone, or wave picking to warehouse staff and consolidate picked items for breezy fulfillment.
• Automated replenishment of out-of-stock items, scheduled inventory count, and storage optimization through slotting.
• Real-time analytics including end-to-end coverage of product lifecycle from first mile procurement to last-mile deliveries. 
• Highly configurable with any OMS, TMS, and ERP systems including Oracle Netsuite and Microsoft Dynamics.

4. ShipHero

ShipHero is an all-out Warehouse Management System with the robustness of automation and IoT technologies. It’s a methodical 3PL software handling everything from order management to labor supervision. ShipHero’s fulfillment centers are spread across the US. So far, it has helped 5000 online brands simplify their fulfillment operations.

An overview of its 3PL software gives us insights into how seamlessly it manages orders and returns, freight, and shipping plans. It intelligently operates warehouses to optimize space and ensures that stock levels are always accounted for. It has a user-friendly interface and integration capacity for 50 different marketplaces and carriers. 

Below are its key 3PL software components:

• Automation rules for order management such as fulfilling priority orders, partial shipping, and product promotions. 
• Full-length order tracking from the moment it’s dispatched with a carrier, alerts for fulfillment gaps, and data visualization.
• Automatic inventory cycle counts plus re-orders and replenishments on auto-pilot.
• Distribution of inventory in multiple warehouses based on rules including picking and packing coordination.
• Detection of weight discrepancies, data-driven packaging recommendations, and error-free packing solutions.
• Complete returns processing and carrier rate booking facility based on live rate comparisons. 

5. ShipEak

Many eCommerce retailers will agree that a 3PL software is incomplete without exceptional shipping faculties. And aptly so, when last-mile deliveries form the core of any order fulfillment process. This is where ShipEak, an order management and shipping solution comes as a respite to those looking for an inclusive 3PL software.

The foundation of ShipEak is its robust logistics management capabilities led by a combination of AI, ML, and shipping API technologies. Its services mostly revolve around enhancing last-mile and post-purchase competencies for brands including carrier management, and returns optimization.

However, its optics is most useful for anybody seeking a granular visibility and control of 3PL processes like order creation, cancellation, and dispatch. ShipEak is well-trusted by global brands like DaMENSCH and Walmart. It has integrations with 500+ global and domestic carriers, 30+ OMS and WMS, 30+ storefronts, and 45+ communication gateways.

Here are some of its most prominent features:

• A network of APIs that seamlessly manifests, cancels or edits orders and generates shipping or return labels in bulk.
• Real-time shipment visibility using Push and Pull APIs and webhooks plus branded tracking portal with marketing plugins. 
• Round the clock monitoring of SLA breaches, fulfillment and shipping exceptions and early alerts in case of delay in deliveries. 
• Swift scheduling of inventory pickup and AI-led carrier allocation for order dispatch.
• Real-time pincode serviceability for frictionless checkout, accurate EDD predictions for on-time order fulfillment.
• Complete returns management solution with branded return portal, automated refund processing, and COD reconciliation. 

Final Thoughts

Just like hospitals can’t run smoothly without its doctors, an eCommerce business can’t scale up without 3PLs. They are the key agents that take care of the very critical component of your business- order fulfillment. 

So, those who have their 3PL partner sorted should fill in the next gap in their ‘ways to grow business quickly’ bucket list, i.e., finding the most appropriate 3PL software. We hope our article about the top 3PL software will come in handy in your research.