If you’re running a third-party logistics (3PL) operation, you have noticed the shift in the market following the pandemic. Ecommerce brands are now expanding into omnichannel retail, creating a massive opportunity for legacy 3PLs to win their business by leveraging their deep experience in B2B logistics.
The catch? This growth is only within reach if you’re ready to modernize your technology stack with a fulfillment management system (FMS). These systems go beyond legacy warehouse management systems (WMS) to seamlessly manage both high-volume, direct-to-consumer (DTC) and complex B2B fulfillment under a single platform.
With this omnichannel fulfillment for 3PLs, you can automate all of your manual workloads and focus on things that actually matter. Let’s explore more about FMS and how Logiwa IO can help you become an omnichannel powerhouse.
Key takeaways
- Omnichannel fulfillment for 3PLs unlocks significant growth opportunities by bridging B2B and DTC operations.
- More than 60% of ecommerce companies now outsource some or all of their fulfillment to 3PLs, with 55% planning to increase their investment further.
- Legacy 3PLs must narrow down the technology gap, as over 67% cite outdated IT as the top barrier to efficiency.
- A modern FMS enables you to support every order type without relying on siloed systems or manual workarounds.
- Fulfillment management platforms like Logiwa IO deliver rapid onboarding, AI-powered optimization, and scalability as your clients evolve.
The market has shifted to omnichannel fulfillment
The great 3PL migration
The pandemic-driven ecommerce boom turned the logistics industry upside down. Many online brands flocked to startup 3PLs but soon ran into issues, such as missed SLAs, poor integration, and unreliable scaling.
Many of these 3PLs now seek stability and operational excellence, which usually come with outsourcing fulfillment workloads.
More than 60% of ecommerce companies now outsource some or all of their fulfillment to 3PLs, with 55% planning to increase their investment further. This shows that online brands are now hungry for partners who can deliver both — fast, accurate ecommerce logistics solutions and robust quality assurance.
Why your B2B expertise is more valuable than ever
Today’s most successful online brands are expanding into brick-and-mortar retail and partnering with big-box stores like Walmart and Target. Think of companies such as Allbirds, Casper, Warby Parker, etc.
This trend is a golden opportunity for traditional 3PLs. Your experience in retail compliance, complex B2B shipping requirements, and handling palletized orders can set you apart from digital-only providers. In the omnichannel era, it’s all about being an agile, integration-ready fulfillment engine for every channel.
Request a free demo to learn more about Logiwa WMS.
Legacy 3PL challenges: When your tech holds back your biggest strength
The technology gap between B2B and DTC
One of the most common legacy 3PL challenges is the widening technology gap between B2B and DTC fulfillment. Most traditional 3PLs have systems optimized for the complexity of B2B, rather than the speed and integration needs of modern ecommerce.
Managing thousands of single-item DTC orders is considerably different than scheduled, bulk LTL/FTL shipments.
For instance, in single-item management, you have to handle a high volume of orders, each with only one or two items. These orders arrive unscheduled and require same-day or next-day shipping. Not only that, but every order must be picked, packed, and shipped individually with personalized packaging via parcel carriers like FedEx or UPS.
On the other hand, scheduled bulk B2B shipments involve far fewer orders, but each contains many SKUs and follows a set shipping schedule. These orders require bulk picking, palletization, and strict retail compliance. B2B shipments typically use LTL or FTL freight for these orders.
To address these differences, 3PLs require an FMS that can efficiently handle both B2B and DTC fulfillment on a single platform.
The risk of inaction
3PLs deploying AI-driven solutions like Logiwa IO are gaining a competitive advantage. The majority of shippers say a 3PLs’ use of AI would influence their choice of a 3PL partner and that they would be very likely (13%), likely (29%) or somewhat likely (32%) to switch 3PL providers based on their AI capabilities.
This while 70% of legacy 3PLs lack the modern capabilities necessary for high-speed ecommerce. How can they retain up-and-coming brands that expect digital-first operations?
As a 3PL, you have no choice but to adapt to modern FMS platforms. Otherwise, you will risk losing the fastest-growing market segment to tech-forward competitors.
How 3PL software like a modern FMS unlocks omnichannel profitability
Manage every order type in a single system
A modern FMS is purpose-built for omnichannel fulfillment for 3PLs. Instead of juggling separate platforms, you can route every order, including DTC packages, B2B pallets, and EDI dropships, through a unified, cloud-based system.
A quality FMS also integrates with numerous ecommerce platforms, such as Shopify and retail EDI systems, simultaneously. This provides 3PLs and warehouse managers with real-time inventory visibility via a single platform.
Meet ecommerce SLAs without sacrificing B2B efficiency
3PLs have to consistently meet the tight service-level agreements demanded by ecommerce brands without compromising the reliability that their B2B partners expect.
With the right 3PL software, AI-driven automation and intelligent order batching can supercharge your DTC picking speed and accuracy. This way, you can deliver the best experience to ecommerce brands while ensuring that your B2B compliance workflows continue to run smoothly.
A flexible foundation for client growth
Client needs are always changing, especially during peak seasons or when they’re rolling out new marketplace integrations.
A true modern FMS means you never get left behind. These platforms are easily configurable to your clients’ needs, so you can smoothly cater to their unique workflows and set up new clients in days, not months. This supports rapid scale-up — both vertically and horizontally — as your network evolves.
Logiwa IO is built for the modern, omnichannel 3PL
Logiwa IO stands out for its robust cloud capabilities and integrated features.
Specifically designed for the ICP3 profile
Logiwa IO is built from the ground up for 3PL providers. The platform supports 3PLs to expand into high-growth B2B, DTC and omnichannel markets with its robust cloud-based system.
With Logiwa IO’s FMS, you get:
- AI-powered optimization that automates labor allocation, wave planning, and real-time route decisions.
- Microservice architecture for vertical and horizontal scaling, plus bulletproof reliability even under peak demand.
- Headless, configurable workflows so you can add add-ons or customizations without deep vendor intervention.
- Intuitive user experience and lightning-fast onboarding to bring new customers or seasonal labor up to speed quickly.
Win and retain more clients
It’s time to say “yes” to every growth opportunity. With Logiwa IO, you can confidently onboard new omnichannel clients, capture emerging ecommerce brands, and build a business resilient to disruption and dynamic demand.
Are you ready to embrace future-proof omnichannel fulfillment for 3PLs? Request a demo and automate your fulfillment network today!
