Originally posted May 9, 2025, updated August 31, 2026.
Third-party logistics has come a long way since the era of standalone warehouses and freight forwarding services to get goods from A to B.
As supply chains have grown more globalized and complex, 3PLs have evolved into offering more comprehensive end-to-end solutions, including inventory management, distribution, order processing, return management, and more.
Cloud-based technology has enabled 3PLs to combine wraparound services with intuitive technology platforms. Customers can now track shipments, monitor inventory levels, and check facility performance, all from one interface.
3PL technology has become central to how fulfillment operations scale. In recent warehousing research, 87% of warehouse decision-makers said that they believe their organizations will fail to meet business objectives without investing in technology to improve warehouse operations. Another 63% plan to increase spending on warehouse modernization over the next five years.
Modern 3PLs are more than logistics experts; they enable scalable fulfillment and data-driven decision-making. With the right 3PL technology in place, brands can seamlessly outsource their logistics needs to a single partner and get back to focusing on core business builders.
But this is not the case for every fulfillment partner. Technology capabilities can vary considerably from one provider to another. Some 3PLs have invested in connected systems, automation, and real-time data, while others still rely heavily on legacy platforms and manual processes. This makes it important for businesses to do their research and understand a potential partner’s capabilities.
In this blog, we’ll cover why you should partner with a technology-enabled 3PL and the hidden costs of not doing so.
What is a technology-enabled 3PL?
A tech-enabled 3PL is a logistics provider that leverages its own in-house technology stack to simplify the fulfillment process and offer more operational visibility. By continually improving and investing in these technology solutions, a 3PL can pass cost and efficiency savings on to customers and build a true end-to-end logistics solution that streamlines the supply chain.
Effective 3PL technology connects warehouse activity with orders, inventory, shipping, and reporting. Instead of relying on separate systems or manual updates, brands can see and manage fulfillment activity through a connected technology environment.
When a 3PL partner provides customers with a user-friendly platform, it puts fulfillment data and controls directly at their fingertips. Brands can see inventory by location, follow order status and transit activity, review shipping performance, and manage fulfillment rules without relying on back-and-forth requests for basic updates.
The right 3PL technology gives brands greater control over day-to-day fulfillment, even when they outsource the physical operation to a 3PL.
What 3PL technology supports modern fulfillment?
Logistics providers offer a wide range of technology, including Warehouse Management Systems (WMS), Order Management Systems (OMS), automation, artificial intelligence (AI), and integrations with third-party software solutions such as ERPs or return management platforms.
Technology is also a significant part of what shippers are buying from logistics partners. In Inbound Logistics’ 2025 3PL market research, 62% of shipper respondents said they purchase logistics technology, TMS, and WMS services, making it the second-most commonly purchased category behind motor freight. Meanwhile, 56% of surveyed 3PLs identified technology investment as a major challenge, underscoring the ongoing investment required to keep platforms current.
The in-house fulfillment technology offered by a particular 3PL depends on several factors, including the fulfillment services they specialize in and how many facilities they operate. For example, a 3PL that focuses on rapid pick times will likely be leveraging in-house automation and robotics to make picking more efficient.
These technology investments make it possible to configure fulfillment workflows around each client’s specific needs rather than forcing every operation into the same processes. They also give brands access to systems and capabilities that would require significant investment to build and maintain independently.
Why the WMS is the backbone of 3PL technology
At the center of a technology-enabled warehouse is the warehouse management system (WMS). A WMS controls how inventory is received, stored, picked, packed, and shipped while capturing the data generated at each stage.
When a 3PL manages multiple brands and order profiles, it also needs to support different workflows without sacrificing inventory accuracy or visibility.
The impact can be significant. Nucleus Research found that organizations using a WMS increased inventory accuracy by an average of 20%, with 46% achieving improved accuracy within the first year of deployment.
A modern WMS should also connect to ecommerce platforms, marketplaces, ERPs, shipping systems, and other tools so data does not have to be re-entered or reconciled between systems. Real-time inventory visibility, configurable order workflows, exception management, and reporting all depend on what the WMS can support.
Brands evaluating 3PL technology should assess the provider’s WMS. It translates orders and inventory into what actually happens on the warehouse floor.
Challenges faced by traditional 3PLs
Despite the rapid integration of technology into third-party logistics, outsourced fulfillment still carries a reputation of being too ‘slow’ or ‘clunky’ for fast-growing ecommerce brands. Online shoppers are demanding ever-faster delivery times, making it even more important for ecommerce brands to streamline fulfillment as much as possible.
Brands must keep up with delivery expectations. Recent ecommerce research found that 76% of U.S. shoppers will abandon a purchase when their preferred delivery options are unavailable. Fulfillment systems must support the inventory visibility, order routing, and shipping choices needed to deliver against those expectations.
Brands should ensure their 3PL doesn’t struggle with common challenges, including:
Challenge 1: A lack of scalability
Many traditional 3PLs rely on legacy systems or manual workflows. These struggle to scale or keep pace with changing business needs, like seasonal spikes in order volumes, new delivery methods, or changes in storage requirements.
Manual processes are time-consuming and more error-prone, leaving your business vulnerable when handling larger order volumes or more complex fulfillment workflows.
Technology becomes especially important when growth changes the nature of the operation. Adding new sales channels, expanding into wholesale, increasing SKU counts, or distributing inventory across multiple fulfillment locations can introduce workflows that basic systems were never designed to manage.
Challenge 2: Limited technology integrations
Whether you’re bringing certain technology platforms with you to a 3PL partnership or want to invest later, a lack of integration capabilities with your provider makes it extremely difficult to run a streamlined fulfillment operation.
Without a real-time WMS or OMS system, it’s nearly impossible to maintain full visibility over orders and inventory levels. This can result in missed or delayed shipments that increase support ticket volumes, not to mention sorting through a lot of paperwork to find updates.
For an omnichannel brand, disconnected technology can also create conflicting inventory information between ecommerce, retail, and warehouse systems. Integrations allow information to move between those platforms without relying on repeated manual uploads or data entry.
Challenge 3: No value-added services
Maybe you’re looking to add seasonal packaging for the holidays or start including freebies with your orders. These small touches make all the difference when it comes to building loyalty and turning a first-time shopper into a repeat customer.
However, many traditional 3PLs are set up only to deliver basic logistics services such as transportation and storage, with more outside-the-box services (pun intended) out of reach because of higher labor or setup costs. This holds businesses back from investing in experiences that give them a competitive advantage and help them stand out in a crowded market.
Technology can make these value-added services easier to execute consistently. A WMS or rules-based automation platform can identify which orders require specific packaging, inserts, kitting workflows, shipping services, or other handling requirements before the order reaches the packing station.
How 3PL technology helps streamline fulfillment
Speed up fulfillment via automation
Fulfillment bottlenecks develop when orders or inventory stall at different points in the process, requiring manual intervention to get things back on track. When a 3PL is using an advanced WMS and integrated order technology, orders can move electronically from the sales channel into the appropriate fulfillment workflow rather than waiting for manual transfer. Likewise, costly mistakes like running out of inventory–or having too much–can be avoided by setting flags on inventory levels or slow turnover so your business can respond accordingly.
Save time with seamless integrations
Whether you’re selling across multiple channels or using other business platforms to drive efficiency, a 3PL that offers native integrations lets you build a modern, streamlined ecosystem that shares data seamlessly. Kase offers powerful integrations with a full suite of industry platforms, including Shopify, BrightPearl, and Loop, so you can take full control of your operation from top to bottom.
The value of an integration is not simply that two systems connect. It is that accurate order, inventory, shipping, and return information can move between them without creating another manual step for the brand or warehouse team.
Real-time visibility over every order
Access to a real-time technology platform via your 3PL minimizes time spent requesting information, leading to a more transparent and productive relationship with your provider. Being able to oversee all your orders from placement to successful delivery means you and your warehouse team can flag issues before they affect shipping.
Kase’s intuitive dashboard makes it easy for your team to monitor every aspect of your fulfillment operation. Plus, feeding all activity through one system enables a more data-driven approach to measuring performance and identifying where improvements can be made.
Visibility becomes more valuable as fulfillment expands across channels or facilities. Instead of piecing together separate warehouse reports, brands can work from a centralized view of inventory and order activity.
Advanced value-added services
A more granular, tech-driven approach to inventory management and order fulfillment opens the door to more customizable fulfillment services. These not only elevate the customer experience but also add fresh product offerings to your catalog. Think kitting and subassembly to create appealing product bundles, or branded packaging and custom inserts that are guaranteed to make an impression upon delivery. Kase offers all of these services–and more.
When these workflows are tied directly to order data, a 3PL can apply specific instructions at the right point in fulfillment without depending solely on associates to identify exceptions manually. This helps make highly customized fulfillment more repeatable as order volume grows.
How Kase approaches 3PL technology
A scalable 3PL technology platform should improve speed, visibility, and control without creating another system brands have to manage around. Kase combines its WMS and OMS capabilities with integrations, reporting, and configurable automation designed around the requirements of ecommerce and omnichannel fulfillment.
Kase’s technology can:
| Kase technology capability | What it enables |
| Bulk shipping method updates | Update shipping methods for groups of orders at once, such as moving VIP or time-sensitive orders to expedited service. |
| Smart warehouse selection | Route orders based on factors such as customer proximity and available inventory, helping balance delivery speed and shipping cost. |
| High-value order handling | Flag high-value orders for additional requirements such as signature confirmation, insurance, or other special handling. |
| Custom packaging and promotions | Trigger specific packaging, inserts, or promotional workflows according to SKU, customer segment, sales channel, or other order criteria. |
| Real-time inventory and order visibility | See inventory across fulfillment locations and track order status, transit movements, and shipping performance through a centralized dashboard. |
| Intelligent shipping rate selection | Set rules that automatically rate shop eligible services, select lower-cost shipping options within required delivery windows, or exclude carriers and services that should not be used. The underlying shipping configuration acts as a decision engine, applying business rules rather than leaving carrier selection to manual warehouse decisions. |
| Connected ecommerce and business systems | Sync orders and inventory across shopping carts, marketplaces, ERPs, OMS platforms, and returns technology, including Shopify, Amazon, Walmart, NetSuite, Brightpearl, and Loop. |
| Order holds and exception controls | Create rules that automatically hold certain orders for review or override automated fulfillment when an exception requires manual intervention. |
| Flexible shipping rules | Apply shipping logic based on SKU, weight, destination, order tags, or other conditions, including carrier changes, signature requirements, insurance, and billing rules. |
| Bundles and kitting management | Create product bundles or manage bills of materials and kitting projects within the Kase app, giving brands greater control over how multi-item products are assembled and fulfilled. The system can calculate and reserve the component inventory required for a kitting project automatically. |
| Configurable fulfillment workflows | Use logic-based triggers to determine how orders are routed, packaged, handled, or submitted for fulfillment, reducing manual decisions as order volume grows. |
The goal of 3PL technology is not to add technology for technology’s sake. It should remove manual work where it creates risk, give brands reliable information about their inventory and orders, and give warehouse teams the systems they need to execute consistently.
The standard for a fulfillment partner has changed. Brands should expect their 3PL technology to make inventory easier to trust, orders easier to control, and warehouse performance easier to understand. When the technology can scale alongside the operation, it becomes part of what makes reliable fulfillment possible rather than another system standing in the way.
