3PL services have revolutionized the ways businesses have been handled over the ages. They free up companies from the hassle of managing inventories and keeping track of each order being processed. If you run a 3PL service, you must know how important warehouse management is for your business and that of your clients. With proper 3PL warehouse management, you can ensure streamlined and well-optimized operational processes and supply chain activities.
In this guide, we will dig deeper into what 3PL WMS is and how it works. We will also highlight the core functions of WMS, the perks, and what you must consider when choosing one. So, without any further ado, let’s begin exploring the key basics!

What is 3PL Warehouse Management System?
A 3PL Warehouse Management System (3PL WMS) is software specifically designed for 3PL services to better manage warehousing and logistics operations for different clients on the same platform. Instead of employing different software to meet the unique requirements of each client, 3PL WMS can be used. This software improves accuracy, scalability, and efficiency by automating hectic tasks like billing, order processing, and inventory tracking. Aside from this, they also help reduce manual errors and avoid slower operations and inefficiencies, which might result in losing potential customers.
Core Functions of 3PL WMS
Let’s now explore some core functions that a 3PL WMS performs to handle the complexities of managing the diverse needs of different clients.
Multi-Client Management
As mentioned earlier, 3PL WMS can help 3PL services manage inventory and orders for different clients on one platform. Each client’s information and data are kept secure and separate to ensure their unique needs regarding billing, inventory levels, and reports are tailored.
Customizable Billing
Billing can be a hectic process for 3PL services, as each client has its pricing criteria, transportation charges, etc. Understanding this, WMS offers a customizable billing facility which generates invoices based on the specific services used by each client. This significantly reduces the errors and ensures the invoices are generated on time for efficient payment processing.
Seamless System Integration
Whether it’s an e-commerce solution, an enterprise planning platform, or a transportation management system, 3PL WMS integrates seamlessly with all these. This diverse compatibility makes data sharing much easier, eliminating the need for manual data entry and thus minimizing errors.
Real-Time Inventory Tracking
Overstocking and stockouts are two common issues with inventory management. 3PL WMS offers real-time inventory tracking facility to let the 3PL services keep record of replenishment needs and monitor stock movement. They can even offer real-time updates to their clients regarding inventory status, the products requiring restocking, the best-selling products, and more such information to let them analyze which sort of products they must focus on to boost sales.
Advanced Reporting and Analytics
Warehouse management demands consideration of key performance indicators like labor efficiency, fulfillment speed, and order accuracy. WMS software caters to this by offering real-time dashboards featuring advanced reporting and analytics for increased visibility into inventory and order statuses.
Order Fulfillment Automation
One of the many reasons businesses end up collaborating with 3PL services is that they want to speed up the order fulfillment process for ultimate customer satisfaction. Thus, 3PL services must automate key steps in all stages of order processing, be it picking, packing, or shipping, to reduce manual tasks, minimize errors, and efficiently deliver orders on time. This automation proves exceptionally helpful in high-demand periods.
Top 5 3PL WMS for Small and Medium Businesses

Let’s now explore the top five 3PL WMS ideal for small and medium businesses!
Despatch Cloud
With 200+ pre-built integrations, scalable pricing, and real-time analytics, Despatch Cloud is considered one of the best options for anyone struggling with order fulfillment. It’s more like an all-in-one platform, but small businesses can benefit from its diversely compatible modules that can be implemented with other WMS.
Mintsoft
Here, we have another all-rounder platform that supports 3PLs and e-commerce brands to optimize warehousing, picking, packing, and shipments when maintaining strong supplier relationships. It has excellent scalability, offers hands-on onboarding support, and has 150+ pre-built integrations.
Cin7
Though Cin7 is an inventory management solution, it also offers warehouse management functionalities that are highly rated on third-party review sites, like Trustpilot. Its key features include automated reordering, API for custom integration, real-time inventory insights, batch and expiration tracking, etc.
ShipHero
Next, we have ShipHero, which offers 50+ built-in integrations, real-time ship rate shopping, and intelligent pick-and-pack strategies to streamline warehousing. Additionally, it also offers 3rd party fulfillment services to let small brands efficiently fulfill orders without complex logistics or costly overheads.
Zoho Inventory
The best part about Zoho inventory is that it offers a free starter plan for small and medium businesses who don’t want to invest in premium plans right away. Though the features are limited, the version can be used to develop a basic understanding of the WMS. Other features include support for composite items and scalable pricing plans.
The Benefits of Using 3PL WMS
Still wondering if WMS is the right thing for you? These benefits will surely help you make an informed decision.
Improved Client Satisfaction: You can rely on WMS to improve client satisfaction via speed, reliability, and transparency. The more streamlined your order fulfillment is, the quicker the order will be delivered without any errors.
Flexible Order Processing: WMS enables its users to be flexible and agile with order processing by letting them know which order gets processed faster. So you can seamlessly identify the high priority that needs urgent processing and shipment.
Can Sync 3PLS and Customer Operations: WMS can also sync third-party logistics with customer operations in real-time to reflect the changes and eliminate potential errors. This means that customers will always have access to up-to-date information.
Improved Accuracy: With more tasks being automated and less manpower involvement, the overall accuracy of the warehousing management will increase. This will help in ensuring customer satisfaction with reduced mis-shipments and returns.
Scalability: Scalable WMS can efficiently handle new warehouse locations, increased order volumes, and additional clients. This feature makes it easier to expand the warehouse and manage inventory across multiple platforms.
How to Choose the Right 3PL WMS Software?
By now, you have explored the key basics of WMS, let’s now analyze what you must consider when choosing a 3PL WMS for your 3PL service.
Integrations: Your 3PL software must be compatible with various marketplaces, such as Walmart, Amazon, Shopify, etc. Compatibility with the business ecosystem, including your CRM and accounting system, is also crucial.
Reporting and Billing: Select a WMS that automates tasks like storage, receiving, and shipping. This is crucial for timely invoicing for these services. Aside from this, WMS must accommodate distinctive billing elements and cater to the different invoice formats.
Multiple Client Support: WMS must offer multiple client support to let the 3PL service efficiently manage the different needs of different clients. Moreover, each client’s data must be placed separately and securely, and the system must be flexible to meet unique requirements.
Customer Support: Prefer choosing a WMS with a dedicated team that’s available for assistance 24/7. This will make it easier for you to tackle intricate challenges, as you will always have customer support within your access.
Access to Client’s Portal: your WMS must offer clients a user-friendly interface featuring advanced reporting and analytics to let them peek into the real-time warehousing details. This will ensure that clients receive up-to-date information every time they access their portal.
Try NextSmartShip’s WMS for Free
NextSmartShip is a reliable 3PL service that utilizes an advanced WMS to automate various warehousing tasks, like picking, packing, and inventory management. You can also benefit from this WMS by implementing it into your business model. It can accommodate different clients and their unique needs, letting you handle the entire workflow on one platform.

Additionally, it integrates well with leading ecommerce platforms, like WooCommerce, Shopify, etc. The best part? NSS’s WMS is user-friendly. This means that you won’t need to dig through the how-to guides, as everything can be managed with a single click.
Conclusion
3PL WMS is more of a necessity than a luxury for any 3PL platform. It lets its users efficiently handle warehousing cores for different clients at one interface. Meaning that no matter how different your clients’ needs are, you can cater to all of them via a single platform. So, whether it’s difference in billing, invoicing, or other factors, you won’t have to indulge in hassle, as everything can be seamlessly automated with WMS. That aside, the data of each client is kept separately and securely, and each client can access the portal for real-time analytics and reporting.
If you are new to the world of WMS and are hesitant about paying for it, we recommend trying out NextSmartShip’s exclusive yet free WMS. Hope you find this info worth reading. Stay tuned for more.