The surge in e-commerce during the pandemic reshaped how people shop, pushing even more consumers toward online buying. Some businesses already had a solid online presence, with steady sales coming in through their websites. However, many businesses were unprepared to make the shift online at the beginning of 2020. The rush to establish or expand digital storefronts also created a ripple effect in logistics. Suddenly, many businesses realized they weren’t ready to manage storage, packing, or shipping by themselves.

As the volume of online orders grew, so did the need for third-party logistics (3PL) providers. A lot of companies preferred outsourcing instead of carrying the responsibility of shipping accuracy, delivery timing, and inventory handling in-house. Factors such as shipping costs, faster delivery demands, and accurate order fulfillment have all fueled the rise of 3PL partnerships in recent years. 3PLs act as the operational backbone for many brands. So they need a strong warehouse management system (WMS) to prevent errors like late shipments, misplaced inventory, or incorrect orders.

What is a WMS?

A warehouse management system (WMS) is a software platform made up of various modules and functionalities. It is used to monitor and control the movement and storage of goods inside a warehouse. WMS tracks products from the moment they arrive until they are picked, packed, and shipped to the end customer. The goal of a WMS is to identify the most efficient and cost-effective way to store and move goods through a warehouse. Most systems include modules for receiving, inventory tracking, replenishment, cycle counting, order picking, packing, and outbound shipping. In simple terms, it acts as the digital brain of warehouse operations.

What’s the Main Advantage of Using a WMS for 3PLs?

Nowadays, many companies outsource supply chain management and logistics to 3PL. And why? Companies don’t want to manage the constant pressure of inventory control, order accuracy, and delivery timing. A 3PL, on the other hand, is responsible for handling logistics and supply chain operations for multiple clients at once. Order fulfillment is a challenging and time-intensive part of the supply chain. That’s why warehouses need a powerful system to manage and track all 3PL inventory movement. A strong system gives 3PL providers the ability to track stock movement, confirm order status, and maintain inventory accuracy across various customers. It also helps prevent stockouts by monitoring safety levels and tracking replenishment timing. It allows 3PLs to track inventory and processes across several clients while maintaining accuracy and efficiency.

Essential Criteria for Selecting a WMS Partner

Running a 3PL warehouse without a strong system makes it difficult to compete or maintain service quality. Like any software, each solution comes with its own strengths and unique features. And the most useful systems are the ones that balance functionality, flexibility, and long-term reliability. Below are nine important criteria to evaluate before deciding on a WMS provider.

1. Speed of Implementation

Implementation time is a major concern when you are entirely replacing an old system or getting a WMS for the first time. Some vendors may advertise fast setup timelines, but “fast” can mean very different things depending on the provider. One implementation may take 16 months, while another may complete setup in under half that time. In most cases, a WMS should be fully active within 12–24 weeks. Every extra month spent on setup delays internal productivity and affects your ability to serve customers.

From a client perspective, the system should be capable of managing new client onboarding without delays. A WMS should help new customers transition into your warehouse workflow quickly. So you can begin fulfilling their orders as soon as possible without downtime. One important point is to note that not all systems are capable of doing this efficiently. So it's important to search for vendors who already work with logistics providers rather than software designed only for single-company warehouses.

2. Business Intelligence

When switching to a new WMS, the quality of reporting and data analysis is just as important as basic system functionality. Customizable dashboards and detailed business intelligence reports are very important. They will provide critical information about warehouse performance, stock history, labor usage, and other key metrics. Be sure to ask detailed questions about the WMS’s reporting and business intelligence capabilities before implementing a new WMS system.

3. Billing and Cost Management

A major aspect of any WMS for 3PL is its ability to control and track costs. While systems with extensive automation require significant investment, they must deliver value apart from reducing overhead expenses. With the help of a system like LVS, 3PL companies can easily measure almost every part of their operations. This allows users to identify and track costs linked to all areas of the business.

4. Client Facing Portals

Because 3PL teams can’t always respond to every email or phone call instantly. So it's helpful to use a WMS that allows clients to access key details on their own. A customer dashboard or portal gives them visibility into stock levels, order progress, shipping activity, and performance reports. This eliminates the need for your staff to pause their work to provide updates. Rubicon’s Mantis LVS offers a built-in customer portal called Client eWorkspace. So clients can log in anytime instead of depending on manual updates.

5. Adaptability and Scalability

A warehouse today might look nothing like it did a few years ago, and a good WMS should be able to evolve alongside the business. So that means being flexible enough to support new workflows, product types, or warehouse layouts. Some systems are built with limited capabilities that can’t evolve, which forces companies to replace software sooner than planned. A scalable WMS allows you to expand locations, add automations, or manage more clients without needing a full system replacement.

6. Expert 3PL Customer Support

Even the best software will run into problems eventually, such as bugs, confusion, or unexpected behavior. When that happens, support becomes more important than features. Search for providers that offer ongoing technical help, training resources, and troubleshooting from people who understand 3PL warehousing. The right support team can prevent small issues from turning into expensive disruptions.

7. Advanced Slotting Capabilities

For 3PLs, knowing how to move inventory is only part of the challenge. They must also be able to sort, store, and organize it efficiently. Advanced slotting tools analyze product movement and storage patterns to improve layout, reduce travel time, and make better use of space. Some companies try to map this manually using CAD tools. However, advanced slotting software can automate the analysis and make layout decisions based on activity data. This helps reduce labor strain and optimize warehouse flow.

8. Increased Productivity Through Automation

Technology can enhance warehouse work by handling repetitive tasks and reducing chances for human error. Automation today includes technologies like voice picking, pick-to-light systems, put-walls/sort-to-light, RFID tracking, smart pick carts, smart glasses, and wearable tech. Larger facilities may also use automated material handling solutions such as goods-to-person shuttles, carousels, mini-loads, mobile shelves AGV conveyors, shuttles, sorters, robotic shelving, packing line systems, RFID gates, and more. The more a WMS can integrate with or control these systems, the easier it becomes to scale productivity without relying solely on additional labor. Some providers also include warehouse control systems to manage automated equipment more efficiently.

9. Total Cost of Ownership

The price of a WMS is not the initial software fee. Long-term expenses like maintenance, upgrades, support, limited functionality, or integration barriers can cost more than the software itself if not evaluated properly. A system that seems affordable upfront may create higher indirect costs over time if it causes delays, errors, or workflow limitations. Do your homework and ask clear questions early. And this helps you find WMS software that will function smoothly instead of becoming an expensive obstacle later.

Conclusion

Of course, these aren’t the only elements that matter when selecting a WMS, but they represent the most common deciding factors for 3PL warehouses that manage multiple client accounts. Rubicon’s Mantis LVS offers modules for all of these needs, including reporting, automation compatibility, client visibility, and slotting analysis. If you are evaluating WMS options, take a look at Rubicon’s Mantis LVS and discover how it supports warehouse operations for over 700 businesses.