Research shows that the eCommerce industry is forecasted to reach USD$986.10 billion in 2022 at a compound annual growth rate (CAGR) of 14.90%. This data will continue to grow by around USD$1,496 billion by 2025, making this business one of the most profitable industries globally. Hence, eCommerce business owners need to invest in the latest technologies to sustain this fast-paced growth. This is where third-party logistics (3PL) warehouse management systems (WMS) can be a great asset.
What is a 3PL WMS?
A 3PL WMS is a software solution that helps eCommerce businesses like yours with inventory management, order fulfillment, and shipping. It provides real-time inventory visibility, automated order picking and packing, and streamlined shipping processes. In other words, this software can help you save time, money, and resources.
While plenty of 3PL WMS technologies are available in the market, choosing the right one can be challenging. Here are helpful tips on selecting the best 3PL WMS for your eCommerce business to narrow down your options.
- Define your needs
Every business is unique and has different requirements. It’d be best to identify your specific needs before choosing a 3PL WMS. It involves closely evaluating your current warehouse operation processes and workflows. You may also consider the following questions:
- How many orders do you ship every day?
- What are your average order values?
- What is your product mix?
- Do you have seasonal peaks?
- Do you have multiple facilities or just one?
- Does your warehouse have enough space to accommodate future growth?
All these factors will help you choose the right 3PL WMS. After all, not all software solutions are created equal. They come with different features and functionalities. So, assessing your business needs is crucial to ensure you’re investing in a system that can meet all your requirements.
- Consider the user-friendliness of the software
Adapting to the latest technology can be challenging, especially for non-tech-savvy users. Not only you’ll need to train your employees on how to use the new software, but also you need to allocate time and resources to do so. But with a user-friendly interface, the learning curve can be shorter and smoother. This feature is one of the most vital factors when choosing 3PL WMS software.
A good way to test this is to request a demo or free trial. This approach will allow you to explore the system’s features and functionalities and see how easy or difficult it is to use. A 3PL WMS solution with an intuitive interface will help everyone in your organization be more productive and make a smooth sailing transition.
- Check the system’s compatibility
Most businesses use different systems and software to run their operations in this digital age. And for a good reason. Systems offer a more efficient and accurate way of managing data and processes. But when you’re using different systems, compatibility becomes an issue. One of the main problems is data silos. When information is scattered across other platforms, getting a holistic view of your business becomes difficult. This is why it’s best to check the compatibility of the 3PL WMS with your other systems.
To do this, you need to check the system’s application programming interface (API). An API allows different software to communicate with each other. So, if the 3PL WMS has a robust API, it’s more likely to be compatible with your other systems. This is important to ensure a seamless flow of information across all your platforms.
Besides that, you should also consider other types of compatibility testing. These include:
- Browser
- Hardware
- Operating System
- Networks
- Look for a scalable solution
As your business expands, your warehouse operation will become more complex. You’ll need to manage more products, orders, and stock keeping units (SKUs). So, selecting a system that can accommodate your future growth is crucial. After all, you don’t want to outgrow your 3PL WMS in a few years. To avoid this, look for a scalable solution.
A scalable system can be easily modified or upgraded to meet your changing needs. As your business grows, you can add or remove features, users, or capacity. This is essential to ensure your warehouse management system can keep up with your business expansion.
- Don’t forget the security
Cybersecurity is a global issue. And it’s not going away anytime soon. In a report, around 404 data breaches occurred in the first quarter of 2022 in the US. That’s a 14% increase from the previous year. This is a worrying statistic, especially for businesses that rely on technology to run their operations.
Some of the things you need to look for in 3PL WMS software include:
- Data encryption
- User authentication
- Access control
- Data backup
- Activity logs
With the increasing cases of cyberattacks, you need to be more vigilant about your data security. There’s nothing better than a safer and guarded 3PL WMS for your eCommerce business.
- Evaluate the vendor’s level of support
Even the best systems will encounter problems from time to time. And when that happens, your 3PL WMS provider should be able to offer quick and efficient support. This will avoid any disruptions in your warehouse operations.
When looking for a 3PL WMS, find out what kind of support the provider offers. Here are some things to consider:
- Response time
- Availability
- Quality of support
Ideally, it’s best to go for a provider that offers around-the-clock services. This way, you can be confident that someone will be there to address your concern and help you resolve any issues you may encounter.
Conclusion
There you have it—a comprehensive guide on choosing the best 3PL WMS for your eCommerce business. Ensure to carefully consider all the above factors to make an informed decision. After all, it’s a significant investment, and you want nothing but to get the best possible value for your money.
