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The top mistakes 3PLs make when choosing a WMS and how to avoid them

Written by: Baris Duransel
Originally published on August 7, 2025, Updated on August 7, 2025
The top mistakes 3PLs make when choosing a WMS and how to avoid them
The third-party logistics (3PL) industry is becoming increasingly complex. As global ecommerce sales are projected to exceed $4.3 trillion globally by 2025, fulfillment demands will grow in volume as well as speed, accuracy, and customer expectations. 

This means modern 3PL providers are expected to manage diverse inventory, meet tight delivery windows, and provide real-time visibility, while battling rising operational costs and labor shortages thanks to the flagging global economy.

To survive in this increasingly competitive market, many 3PL providers have adopted warehouse management systems (WMS) — software solutions that optimize processes such as inventory tracking, order management, and shipping facilitation. 

Thanks to 3PL warehouse management systems, many 3PL companies have successfully optimized warehouse performance, boosted client satisfaction, and future-proofed their business. However, many also ended up with the wrong WMS due to falling into avoidable traps during the WMS selection process, such as underestimating user experience and picking systems that don’t scale.

This quick video shows Logiwa IO’s intuitive user experience.

This article outlines the most common 3PL WMS selection mistakes. It also provides actionable tips for picking the best WMS for fulfillment centers.

 

Key takeaways

  • The best WMS for your ecommerce company must integrate with enterprise resource planning (ERP) solutions, ecommerce platforms, and carriers.
  • User-friendliness leads to reduced training time, lower training costs, and higher adoption rates among warehouse staff.
  • Client-facing features like portals and real-time dashboards boost transparency and trust.
  • Cloud-native WMS solutions provide cost-effective scalability and can future-proof your business.
  • 3PL providers must consider the total cost of ownership (TCO) when deciding what WMS to get, not just upfront licensing fees.

Common mistakes to avoid when choosing a 3PL WMS

With numerous options available on the market, selecting the right WMS can be a challenging task. Here are the top mistakes to avoid when choosing a 3PL WMS.

Mistake #1: Underestimating scalability and future needs

Many 3PL companies make the mistake of picking a WMS solely based on current needs. This can cause them to pick a lightweight WMS that only works for existing client volumes and stock keeping units (SKUs), but won’t be able to handle new customers, warehouses, and verticals.

That’s why you should always pick a scalable WMS that can handle future needs. A scalable WMS can support growing order volumes and multi-warehouse operations, while also handling seasonal fluctuations and complex inventory rules.

Mistake #2: Ignoring integration capabilities

If 3PL providers overlook the importance of seamless integration, they may choose a WMS that can’t “talk” to core systems in the supply chain, such as ERPs, ecommerce platforms, and shipping carriers. This leads to data silos, manual data entry, order processing delays and bottlenecks, and customer dissatisfaction.

To avoid these issues, 3PLs should prioritize WMS platforms with seamless integration capabilities. The right solution will enable real-time data exchange across your tech stack, eliminating the need for error-prone manual processes and ensuring warehouse and client systems are always in sync.

Mistake #3: Overlooking the user experience (UX)

Many 3PL providers frequently overlook the importance of user experience (UX)—the overall experience a user has when interacting with the WMS.

As a result, 3PLs may end up with a technically capable but outdated, unintuitive WMS that frustrates users. The clunkier the interface, the lower the adoption rate—leading to longer training times, more user errors, and decreased overall efficiency.

Additionally, a user-friendly design is now a must to attract and retain warehouse staff at all levels. Today’s workforce, including tech-savvy Gen Z employees, expects intuitive, mobile-friendly interfaces.

Mistake #4: Neglecting client-facing features

A WMS isn’t just for internal operations—clients also use the system for real-time visibility into their inventory, order status, and fulfillment performance. As such, 3PLs need a cloud WMS with a robust client portal. Without one, clients will be unable to track both inbound and outbound shipments, view stock levels in real-time, and access dashboards for reporting and analytics. This lack of transparency can lead to confusion, support tickets, and ultimately, client dissatisfaction.

Request a free demo to learn more about Logiwa WMS.

How to choose a WMS for 3PLs

Now that you know what mistakes to avoid when choosing a WMS, here are some tips to select the best WMS for your 3PL company.

Tip #1: Define your requirements and create a scorecard

First, identify your specific needs before selecting a WMS. Consider the following:

  • Current order volume
  • Client expectations
  • Reporting requirements
  • Labor capabilities
  • Integration stack

Then, create a scorecard to evaluate potential WMS vendors objectively. This will help you assess every solution against your list of needs.

Involve key stakeholders from across the organization, including warehouse operations, IT, sales, and customer support. Gathering opinions from all departments ensures the final decision aligns with the broader needs of your company, not just one team’s preferences.

Tip #2: Prioritize cloud-native and SaaS solutions

When creating a list of potential WMS vendors, prioritize modern WMS solutions like cloud-native Software-as-a-Service (SaaS) systems. Designed to run in cloud environments, a cloud-native SaaS WMS enables users to access warehouse information in real-time from anywhere in the world on a subscription basis.

Key benefits of cloud-native WMS for 3PLs include:

  • Lower upfront costs and faster WMS implementation for 3PLs
  • Automatic software updates and security patches
  • Seamless remote access for distributed teams
  • Easier scalability across multiple warehouses or clients

#3: Conduct thorough due diligence

Don’t just rely on vendor demos or sales presentations when evaluating a WMS. To make an informed decision, you need to go beyond the demo:

  • Check client references: Speak directly with other 3PLs or companies of similar size and complexity.
  • Read case studies: Look for examples online that align with your industry, volume, or growth stage. For example, if you deal with temperature-sensitive products, look for case studies that highlight how a WMS handles cold chain logistics.
  • Seek independent reviews: Use platforms like G2 to read unfiltered feedback from real users.

#4: Consider the Total Cost of Ownership (TCO)

3PLs often fall into the trap of focusing solely on the WMS initial license fee. However, a WMS with a low upfront price may still prove expensive once you factor in real-world operational needs.

Instead, you should consider all costs associated with the WMS, including:

  • Implementation and setup fees
  • Training and onboarding costs
  • Ongoing support and maintenance
  • Customization or integration expenses

You should also consider the vendor’s pricing model. Some WMS use a traditional per-user pricing model, which varies depending on the number of users with accounts in the system. Others use a volume-based pricing model, where your monthly bill depends on the number of orders processed.

Generally speaking, for growing 3PLs, volume-based models provide greater scalability, more predictable costs, and better alignment with business performance.

Make a Smart Decision for the Future: Choose a Reliable WMS

Choosing the right WMS isn’t just a software decision. It’s a long-term investment in the growth and future of a 3PL. Besides optimizing inventory tracking, a robust WMS streamlines order management, accelerates shipping, minimizes delays, and boosts overall client satisfaction.

However, picking the right WMS is easier said than done. 3PLs often pick the wrong WMS by underestimating scalability and future needs, ignoring integration capabilities, overlooking UX, and underestimating the importance of client-facing features.

To create a list of the best WMS vendors, you must:

  • Clearly define your requirements and create a scorecard. 
  • Prioritize cloud-native SaaS solutions for scalability and ease of use.
  • Perform thorough due diligence with case studies, client references, and independent reviews.
  • Consider the total cost of ownership (TCO), not just the initial subscription cost.

If you’re looking for a user-friendly, cloud-native SaaS WMS, consult a Logiwa fulfillment expert today. Logiwa’s AI-driven warehouse management helps you take back control of your warehouse. 

FAQs on selecting a warehouse management system (WMS)

What are the most common mistakes to avoid when selecting a WMS?

When choosing a Warehouse Management System, third-party logistics (3PLs) providers often make several critical mistakes. A primary error is underestimating the need for scalability and focusing only on current operational needs, which can lead to a system that cannot handle future growth in clients, warehouses, or product lines.]Another frequent oversight is ignoring the system’s integration capabilities, resulting in data silos and manual data entry because the WMS cannot communicate with essential systems like Enterprise Resource Planning (ERP) or ecommerce platforms. Many also overlook the user experience (UX), which can lead to low adoption rates, increased training time, and more user errors. Finally, neglecting client-facing features, such as a robust client portal for real-time visibility into inventory and order status, can lead to customer dissatisfaction.

How do I choose the right WMS for my 3PL business?

To select the best WMS for your 3PL company, start by clearly defining your specific requirements. This includes evaluating your current order volume, client expectations, reporting needs, and existing integration stack. Create a scorecard to objectively assess potential vendors against your defined needs. It is also crucial to prioritize cloud-native and Software-as-a-Service (SaaS) solutions, which offer scalability, faster implementation, and lower upfront costs. Conduct thorough due diligence by checking client references, reading case studies relevant to your industry, and seeking independent reviews on platforms like G2. Lastly, consider the total cost of ownership (TCO), which includes implementation, training, support, and potential customization fees, rather than just the initial license cost.

Why is a cloud-native WMS important for a growing 3PL?

A cloud-native WMS is crucial for a growing 3PL because it offers inherent scalability and flexibility. These systems are designed to operate in a cloud environment, allowing them to support increasing order volumes and multi-warehouse operations seamlessly. Key benefits include lower upfront costs, faster implementation, automatic software updates, and seamless remote access for distributed teams. This allows a 3PL to adapt to seasonal fluctuations and new business opportunities without being constrained by their software’s capabilities. For growing 3PLs, the volume-based pricing models often associated with cloud-native SaaS WMS provide more predictable costs and better alignment with business performance.

What are the essential integration capabilities for a 3PL WMS?

Essential integration capabilities for a 3PL WMS involve the ability to seamlessly connect and exchange data with other core systems in the supply chain. The WMS must integrate with enterprise resource planning (ERP) solutions, various ecommerce platforms, and multiple shipping carriers. This real-time data exchange is critical to eliminate manual, error-prone processes and ensure that warehouse and client systems are consistently synchronized. Effective integration prevents data silos, reduces order processing delays, and ultimately enhances customer satisfaction.

How does a WMS improve client satisfaction for a 3PL?

A robust WMS improves client satisfaction by providing transparency and real-time visibility into their operations. Features like client-facing portals and real-time dashboards allow customers to track inbound and outbound shipments, view current stock levels, and access reporting and analytics on their own. This level of transparency builds trust and reduces the need for clients to contact customer support for updates. By streamlining order management, accelerating shipping, and minimizing delays, a WMS directly contributes to a better customer experience and higher overall client satisfaction.

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