Tech-Enabled 3PL Provider: Benefits of Partnership - Fulfillment-Box Skip to main content
Tech-enabled 3PL provider

Logistics is one of the most complex and costly areas of online business. Until the 1980s, companies were forced to manage all warehousing and transportation operations themselves, which significantly increased their expenses and required substantial internal resources. However, in 1980, the U.S. Motor Carrier Act was enacted, paving the way for the formation of a new industry—third-party logistics (3PL) services.

Initially, these providers offered highly specialized solutions. However, with the advancement of technology, they evolved into multifunctional partners capable of managing all stages of the supply chain. Each year, 3PL companies not only grew but transformed, adapting to the new needs of their clients and capitalizing on every new development opportunity.

Today, more than 80% of 3PL providers are actively adopting advanced technologies to improve their services. By utilizing automation, artificial intelligence, analytical platforms, and other innovative solutions, they can significantly enhance your company’s competitiveness.

In our article, we will explore what a tech-enabled 3PL provider is and why partnering with one can become your strategic advantage.


1. What Challenges Do Traditional 3PL Providers Face?

The rapid growth of online commerce and unpredictable consumer demand have significantly complicated and increased the cost of supply chains. In such conditions, speed and flexibility become critically important factors for 3PL providers‘ success. Without automation and the adoption of modern technologies, they face a number of limitations:

  • Scalability challenges: If a business grows or requires rapid changes in storage volumes, traditional operators may find themselves unable to quickly expand or reduce their capacity. This limits their ability to swiftly adapt to changing market demands and business needs.
  • Technological integration issues: Many providers use outdated or poorly integrated technologies. This creates barriers to process automation, complicates order tracking, and reduces the efficiency of interactions with clients and other links in the supply chain.
  • Limited capabilities for additional services: Unlike technology-enabled 3PL providers, traditional players often offer only basic services. This limits their ability to provide value-added solutions such as customized packaging, returns management, and other services that enhance value for customers.

These challenges hinder effective business scaling and cost reduction, as well as make it difficult to provide higher-quality service to customers.


2. What Is Tech-Enabled 3PL?

A tech-enabled 3PL refers to modern logistics providers that utilize advanced digital tools and innovations to manage all aspects of logistics and supply chains. 3PL itself involves outsourcing logistics tasks, such as storage, transportation, and order fulfillment, to a third-party company. What sets a tech-focused 3PL apart is its integration of modern IT solutions, automation, and management systems into its processes, making logistics more efficient and transparent. These technologies enable them to offer their clients flexible and efficient logistics services, enhancing delivery speed, reducing costs, and improving the accuracy of all operations.


3. Benefits of Partnering with a Technology-Enabled 3PL Provider

Tech-enabled 3PL companies offer not only basic storage and transportation services but also comprehensive logistics strategies. They integrate with clients’ business processes, enabling the automation of fulfillment, real-time inventory management, and full transparency throughout the supply chain. This evolution has transformed 3PL providers into strategic partners who can not only enhance a company’s operational performance but also give it a competitive edge in the market.

3.1 Expedited order processing

3PL providers implement automated warehouse management systems (WMS), advanced data processing methods, and barcode or RFID technologies. This enables them to carry out picking, packing, and shipping processes more quickly and with minimal risk of errors. Automation reduces the time required for each operation, from receiving an order to handing it over for delivery. Such a provider can ensure fast delivery times even as order volumes increase.

3.2 Operational cost optimization

Through process automation and resource optimization, 3PL providers can significantly reduce the costs of logistics operations. This is achieved by minimizing manual labor, utilizing warehouse space efficiently, and lowering transportation expenses. Ultimately, your business will be able to save money and redirect those resources to other important tasks.

3.3 Less time spent on management

Modern 3PL providers offer integration with various business management systems, from ERP to ecommerce platforms. This speeds up data transfer processes, automates information exchange, and reduces the need for manual intervention. As a result, order processing times are shortened, and the coordination between logistics and other business processes is improved.

3.4 Transparency in logistics processes

Another key advantage of tech-enabled 3PL providers is the use of real-time tracking systems. These systems allow businesses to see the status of each order, its location at all stages of delivery, and to forecast arrival times. This enhances transparency in the supply chain and enables quick responses to any changes or delays.

3.5 Opportunities for high-value additional services for businesses

Technology-enabled 3PL providers have the capability to offer a broader range of services. These can include custom packaging, cross-docking, returns processing, product customization, labeling, and more. These additional services help clients not only improve product quality but also increase end-customer satisfaction while reducing extra operational costs.

3.6 Enhanced customer service

Thanks to accurate order fulfillment, quick response to inquiries, and transparent logistics processes, tech-enabled 3PL providers help significantly improve the level of customer service. Faster delivery times and minimized order errors directly impact customer satisfaction, fostering long-term relationships with clients and driving business growth.


4. Key 3PL Technologies That Can Help Your Business

Based on the points mentioned above, it can be concluded that modern logistics processes demand maximum automation, integration, and flexibility. When choosing a partner, it is essential to consider not only their ability to handle basic logistics operations but also their technological capabilities. A tech-enabled 3PL provider can help your business operate more efficiently. But which specific 3PL technologies can offer the greatest benefit?

4.1 Integrations with sales platforms

One of the most crucial factors for successful collaboration with a 3PL provider is their ability to integrate with all your sales channels. This integration enables real-time synchronization of order data, ensuring instant order fulfillment and minimizing human errors.

4.2 Warehouse management system (WMS)

WMS is the foundation of efficient warehouse operations. It helps automate product placement, inventory management, picking, and shipping. According to 2022 data, it became the most widely adopted technology among 3PL providers.

A 3PL provider with an advanced WMS will optimize all warehouse processes. Ultimately, this will allow you to reduce costs, shorten order processing times, and minimize errors related to inventory management.

4.3 Inventory management system (IMS)

Inventory management is key to maintaining the necessary levels of goods to meet demand. An Inventory Management System (IMS) allows for real-time tracking of stock levels, forecasting needs, and automating replenishment. This helps prevent shortages or overproduction, which is critical for ecommerce businesses with high inventory turnover.

4.4 Order management system (OMS)

An Order Management System (OMS) allows for the oversight of the entire order fulfillment cycle, from the moment an order is placed to its delivery to the end consumer. It helps coordinate actions between the warehouse, transportation, and customer support, ensuring seamless fulfillment. Having an OMS with your 3PL provider will give you confidence in the accuracy and timeliness of deliveries.

4.5 Post-sales support

In the ecommerce sector, customer interaction does not end with delivery. Post-sales support is a crucial component of building long-term relationships with customers. A provider capable of offering effective customer support solutions for your business will help maintain a high level of loyalty.

4.6 Automated returns management

Returns are an inevitable part of logistics, especially in ecommerce. Automation simplifies the processing of returns, checking the condition of items, and restocking them in the warehouse. It helps reduce costs, speed up processing times, and enhance the quality of service for customers who expect a fast and convenient return procedure.

4.7 Automated payment reconciliation

An automated payment reconciliation system is essential for accurately managing financial flows and minimizing errors. It links data on fulfilled orders with incoming payments, ensuring transparency in financial operations and preventing discrepancies. This helps expedite settlements between the customer and your company, positively impacting cash flow management.


5. Fulfillment-Box: A Tech-Focused 3PL Provider with Full Supply Chain Control

Fulfillment-Box is the perfect example of a tech-enabled 3PL provider that takes full control of your supply chain. We utilize advanced software to manage all aspects of the business from a single system. This centralized control allows our clients to monitor all operations in real time—from order status to inventory levels at each of our warehouses.

In addition to standard logistics services, Fulfillment-Box offers a range of value-added solutions, including:

  • Integration with popular online marketplaces: Leveraging cloud technologies, Fulfillment-Box provides seamless integration with leading ecommerce platforms. This simplifies order and inventory management while enhancing processing speed.
  • Service for Amazon sellers: We offer specialized solutions for FBA, FBM, and SFP sellers on the Amazon platform. We help optimize fulfillment and meet the high standards set by the marketplace.
  • Returns management: Fulfillment-Box efficiently handles the returns process, offering convenient solutions for customers while reducing operational costs for businesses.
  • Value-added services: The company offers additional services, including packaging customization, labeling, and the inclusion of promotional inserts in your shipments. This enhances the customer experience and helps you stand out from the competition.
  • Supply chain management: Fulfillment-Box ensures reliable delivery of your shipments, guaranteeing that deliveries are made on time and without disruptions. For shipments from China, the company offers supplier inspection services, helping to minimize risks and ensure that products meet established standards.

With Fulfillment-Box, you will receive a complete set of solutions designed to help your business grow and thrive in a competitive market.


6. Frequently Asked Questions

1. How do technologies simplify and optimize fulfillment?

Technologies simplify fulfillment by automating routine tasks such as order processing, inventory management, and delivery. Integrating all operations into a single system speeds up order fulfillment times, minimizes errors, enhances demand forecasting accuracy, and improves overall process visibility. Ultimately, this leads to more satisfied customers and increased profits.

2. What fulfillment technologies do 3PL providers offer?

Technology-enabled 3PL providers utilize a wide range of software and hardware technologies to optimize fulfillment, including:

✔ Warehouse Management Systems (WMS)
✔ Robotic picking systems
✔ Mobile applications for tracking and managing orders
✔ Analytical platforms for performance monitoring and process optimization

3. How do the costs of technology-enabled 3PL services compare to traditional providers?

The price of services can vary depending on the volume of operations and the specific services provided. Generally, a technology-enabled 3PL can offer a wider range of services. However, the provider’s flexible pricing allows for effective cost management. You will only pay for the services you actually need, which helps avoid unnecessary expenses.

4. How does technology help us working with a 3PL logistics service provider?

Technology significantly simplifies interactions with a 3PL provider by ensuring transparency and real-time access to information. Integrated management systems make it easy to track order statuses, exchange data on inventory and performance, and respond promptly to changes in the supply chain. This enhances collaboration, reduces the likelihood of errors, and accelerates the decision-making process.

Consultation icon

Get in contact with Fulfillment-Box

Our managers will answer any questions you may have

Leave a request
Julia Gordon

AuthorJulia Gordon

Head of the Fulfillment-Box Prep Centers network

View all posts
FAS (Free Alongside Ship) Incoterms

Free Alongside Ship (FAS): Key Aspects, Advantages, and Risks of Sea Transportation

| Logistics and Fulfillment | No Comments
International transactions require precision and clear organization, especially when it comes to the distribution of…
Beste Online-Verkaufsplattformen in Deutschland

Best Online Marketplaces in Germany: Top 10 for Your Business in 2025

| Logistics and Fulfillment | No Comments
Germany is one of the key countries for the development of ecommerce in the European…
FCA (Free Carrier) in Incoterms - A Practical Guide to Getting It Right

FCA (Free Carrier) in Incoterms: A Practical Guide to Getting It Right

| Logistics and Fulfillment | No Comments
International trade is becoming increasingly complex, and a proper understanding of delivery terms can be…
Ex works Incoterms (EXW)

Ex Works Incoterms (EXW): Rules, Responsibilities, and Nuances of Documentation

| Logistics and Fulfillment | No Comments
Delivery terms are a crucial aspect of any transaction in international trade. One of the…