The logistics industry is undergoing rapid change. Driven by e-commerce demand and increasing consumer expectations, fulfillment operations are growing more complex and technology-driven. Third-party logistics (3PL) providers and their customers are heavily relying on software to stay ahead. Whether you’re handling multiple warehouses or providing drop-shipping for dozens of retailers, the right 3PL software has the potential to streamline operations, minimize manual operations, and offer the visibility modern supply chains require.
What Is 3PL Software?
3PL software refers to a specialized warehouse management systems (WMS) and logistics platforms designed specifically for the unique challenges of managing multiple customers’ inventories and operations in shared facilities, as 3PL warehouses do.
3PLs need sophisticated software because of the multi-client nature of 3PL fulfillment. The health of their own businesses depend on satisfying the business customers using their facilities. A 3PL wants to maintain or grow their clientele and warehouse space managed, and the profit margins they earn on managing each customer’s inventory depends on them doing so as efficiently.
A 3PL needs their WMS and other integrated solutions to manage their most critical operations involved in multi-warehouse coordination, order fulfillment, and relationships with customers. Software must coordinate inventory, automate billing, optimize routes, and track everything from inbound freight to last-mile delivery for remarkably diverse customers shipping remarkably diverse goods.
“A 3PL doesn’t get to control who knocks on their door,” says Don White, Senior Director of Solutions Engineering at Da Vinci, “So in the same warehouse you have to handle everything from keychains to bulldozers.”
3PL software integrates with a wide variety of solutions, like shipping, e-commerce, and accounting software. All-in-one systems centralize logistics data, automate routine tasks, and enable high-volume growth without the need to add manual labor.
Must-Have Features of 3PL Software
Since not all logistics software is created equal, you must consider some key characteristics to evaluate different solutions and choose the right option for your 3PL company.
Inventory Tracking
At its core, 3PL software should let you track inventory in real time across multiple warehouses or zones. This includes SKU-level visibility, inventory aging reports, and tools to manage safety stock (the buffer inventory kept to avoid stockouts). Good software also supports serial number tracking, which is key for industries like food, pharma, and electronics.
Order Routing
Effective routing dictates how quickly and cost-effectively customer orders get fulfilled. Search for systems providing rules-based order routing—dynamically directing orders to the optimal warehouse based on proximity, inventory, or shipping mode. This minimizes transit times and shipping expenses while maximizing capacity throughout facilities.
Per-Client Billing Automation
Errors and delays are common in manual billing procedures. The best 3PL software solutions include built-in billing engines that calculate storage, handling, shipping, and special service charges. Some platforms also generate invoices based on customer-specific contracts or activity-based pricing models, saving hours of administrative work.
Customer Portals
Your customers need visibility as well. A customer portal enables retailers to see their inventory levels, monitor order status, download reports, and place service requests. This type of transparency builds relationships and minimizes the volume of status-check emails your team must respond to.
Complex Service Level Agreements (SLA) Support
Managing different workflows and rules for each client, including customized receiving processes, picking methodologies, shipping carriers, and performance metrics.
Omnichannel Order Management
As consumers shop across multiple channels, 3PL software must handle orders from B2B, B2C, marketplaces, and direct-to-consumer platforms through a single unified system. This includes order routing rules, channel-specific labeling requirements, and integrated returns processing across all sales channels
Advanced Reporting By Client
Financial and operational metrics broken down by customer, enabling detailed KPI tracking and transparent billing based on actual service usage.
Generally, WMS features should be built for scalability. Advanced 3PL companies handle diverse inventory types, high order volumes, and operations across multiple locations. The right software solution accommodates increased warehouse locations, SKU counts, and client accounts without requiring system overhauls or performance degradation.
How 3PLs Identify the Right Software for Their Businesses
Moving from spreadsheets and aging systems to modern 3PL software isn’t just a tech upgrade—it’s a business transformation. Smart 3PL operators looking to scale their operations follow a structured evaluation process.
Get clear on what’s breaking in the current setup
Is the 3PL drowning in manual billing errors? Not tracking inventory across multiple client accounts? Losing orders when volume spikes? The right platform should solve the most painful problems first, then add value on top. Interview warehouse staff, customer service reps, and the finance team—they’ll know exactly where the system cracks.
Map growth plans against software capabilities
If expanding to new regions or adding services like cold storage, kitting, or returns processing, a 3PL needs to verify that a solution can handle the scaling. Some platforms lock customers into rigid workflows or charge excessive upgrade fees when adding advanced features. Look for modular systems that let you turn features on as you need them.
The software also needs to speak the language of the desired clients’ e-commerce platforms, their carriers, and their accounting systems. Software should come with pre-built connections to major platforms and has experience integrating with custom ERPs—even those legacy systems that have been running businesses for decades.
Assess real-world performance
Request references from 3PLs managing similar order volumes and client types. Ask about system downtime, support responsiveness during peak season, and data accuracy under pressure. The best platforms combine robust technology with teams that understand warehouse operations.
Calculate more than just subscription costs
Also include implementation time, training requirements, and the value of automation in cost comparisons between providers. If software can eliminate 20 hours of manual billing weekly or reduce order errors by 30%, those savings compound quickly.
Look for providers who regularly update their software
One key is to consider the vendor as a long-term partner with its own clear product roadmap and explicit ability to describe the unique economics of 3PL operations. The right software company will work alongside you as your business evolves, not just sell you a license and disappear.
Top 3PL Software Options on the Market
With all the logistics software solutions available in 2025, it’s hard to say which one will actually deliver for your business. If you operate a lean fulfillment center or manage multiple clients across warehouses, the ideal 3PL platform should help you streamline your operations, not make them more difficult. What follows is an overview of some of the leading choices available, with actual strengths (and some weaknesses) you’ll want to know about.
| Software | Best For | Key Features | Ideal Users |
| Da Vinci Unified WMS | Multi-client 3PLs needing maximum flexibility | Modular design, real-time dashboards, custom billing, Shopify/QuickBooks/NetSuite integrations | Mid-sized 3PLs needing usability + customization |
| ShipBob | Fast-growing eCommerce brands | Distributed inventory, returns handling, batch processing, and real-time analytics | DTC brands wanting simplicity + fast onboarding |
| ShipMonk | SMBs juggling multiple sales channels | Custom dashboards, multichannel sync, strong support, 3PL partner access | Brands needing hands-on help and flexibility |
| 3PL Warehouse Manager (Extensiv) | Traditional 3PLs that are modernizing operations | Real-time inventory, client portals, kitting, and supplier management | 3PLs wanting structure without enterprise bloat |
| ShipHero | High-volume e-commerce teams | Batch picking, live updates, mobile app, order routing | Fast-moving operations needing warehouse speed |
Da Vinci
Are you handling inventory for multiple customers and require an adequate warehouse and billing system that doesn’t require a rocket science degree to operate? If so, the Da Vinci Unified WMS is one of the top systems on the market. Designed with mid-sized and expanding 3PLs in mind, it’s modular. Because of this modularity, you can skip the tools you don’t need and obtain the ones you do.
Real-time dashboards, dynamic billing rules, custom reporting, and Shopify, QuickBooks, and NetSuite integrations are some of the best features of this WMS. It’s ideal for operators that require additional visibility and the ability to onboard new customers without an IT-heavy lift.
“Custom onboarding is what we do at a high level,” says Da Vinci CEO Dan Cavanaugh. “We come on site, go through how we’ll set up your workflows, then come back and do training. It’s very tailored and white glove on the implementation side, and then we’ve got support that actually calls you back.”
Users often mention Da Vinci software’s adaptability to complex workflows. Simple built-in on/off functionality of expansive features eliminates the need to rewire operations to adjust to new 3PL customer demands.
ShipBob
ShipBob takes a different approach than a traditional WMS software company, operating its own network of fulfillment centers for e-commerce brands and bundling access to those centers with its order management platform.
Distributed inventory, returns management, batch order processing, and real-time analytics are some of the features. It also easily integrates with e-commerce sites such as Shopify, WooCommerce, and Amazon. It positions itself for rapidly expanding brands that want to maintain short shipping times without being held back by logistics.
Reviews are generally good—ShipBob has a 3.6/5 rating on G2, highlighting customer service. Customers appreciate the ease of implementation, although some do note issues during periods of high volume or if they have detailed reporting requirements.
ShipMonk
ShipMonk provides e-commerce businesses with control over multiple sales channels via a WMS that interfaces with large marketplaces, customised reporting, and inventory dashboards. It also allows you to tap into several fulfillment partners, which can be leveraged to reduce costs if you deliver to various areas.
3PL customers like the support provided by ShipMonk. Some reviews do, however, mention frustration with package tracking. Others mention difficult contract terms. It’s a good option for brands that need flexibility but also require support as they grow.
3PL Warehouse Manager by Extensiv
If your operation is more conventional in nature, 3PL Warehouse Manager (from Extensiv) is built for third-party logistics providers focused on core warehouse functionality.
This solution offers customer portals, store and supplier inventory management, inventory optimisation, and real-time information. There’s kitting functionality if you’re product bundling.
It’s 4.1 rated on G2, with users mentioning satisfactory inventory accuracy improvements and simple deployment across multiple sites. But if you anticipate dealing with huge warehouse networks or requiring custom functions, the WMS has limitations regarding scalability and flexibility.
ShipHero
ShipHero is another choice for growing 3PLs that don’t need custom solutions for new customers with unique needs. The system provides real-time inventory tracking, automated order routing, packing slip customization, and advanced analytics. There is a warehouse floor management mobile app that’s convenient for teams that work in the aisles, not behind a desk. ShipHero can be a solid match if lean, quick, and cloud-based are what a 3PL is after.
Why 3PL Software Matters for Scaling
As order volumes and the number of customers you serve both increase, the room for error decreases. Paper-based systems or spreadsheet silos just can’t keep up with the speed and precision that’s needed today in logistics. That’s where software makes the difference. Here are some of its most impactful benefits of using 3PL software.
- Fewer errors: Automated processes and data capture minimize errors in order picking, stock levels, and invoicing.
- Enhanced visibility: Real-time reports and dashboards offer visibility into KPIs such as order speed, order accuracy, and storage capacity.
- Scalability: With software pulling the heavy lifting, teams can work on more orders with the same personnel, or expand their operations into new regions without needing to rebuild their tech stack.
- Maximized profit margins: Capture every billable activity, from storage fees to special handling charges, with real-time transaction data and billing rules for each client’s SLA. Also optimize pricing and revenue capture without manual intervention.
How Da Vinci Powers Fulfillment With Tech
Da Vinci Unified merges fulfillment experience on the ground with a tech-forward approach. Our software stack supports real-time inventory tracking, order processing automation, and analytics customization—all intended to simplify fulfillment for growing brands.
For new clients, onboarding is designed to be straightforward, with integrations to major e-commerce platforms and a team that walks you through setup. Once live, clients gain access to dashboards that track order volume, processing time, inventory turnover, and more, giving operators the data they need to adjust strategy or spot issues early.
What distinguishes Da Vinci isn’t only software but the way the tools support people. The priority is control and simplicity, rather than complexity.
Ready to Upgrade Your Fulfillment Tech?
Whether you have one warehouse or a nationwide network, choosing the right 3PL software can shape the future of your logistics company. It is not about keeping up with the trends—it is about building a system that expands as you grow. If you’re considering solutions and would like to witness how a modern, data-first approach can power your fulfillment, Da Vinci provides personalized demos specific to your requirements. Request a free demo to get a better sense of what’s possible and how the right tools can remove friction from your supply chain.