Five Questions 3PLs Need to Ask Before Selecting a WMS

If your 3PL is outgrowing paper and spreadsheets, a warehouse management system (WMS) is usually the next step. But WMS platforms differ a lot, and the right one depends on how your warehouse actually runs. Below is a quick way to tell whether you need a WMS at all, followed by the five questions that will point you to the right one in 2026.

How do I know if my 3PL needs a WMS?

You need a WMS when the cost of manual tracking passes the cost of software. Run down this list. If two or more sound familiar, it is time to evaluate:

1. Inventory counts in your spreadsheet do not match what is on the shelf.
2. Mispicks and shipping errors rise every time volume grows.
3. Client reporting takes hours of copy-and-paste every week.
4. Onboarding a new client takes weeks because nothing is standardized.
5. Billing disputes drag on because you cannot prove storage and handling activity.
6. You are turning down new business because the warehouse cannot absorb it.

Number five is the most common. In Extensiv’s 2025 3PL Warehouse Benchmark Report, 62% of 3PLs named uncaptured charges as a top billing challenge, up from 56% the year before. That is revenue a manual process lets slip out the door every month, and it is one of the fastest ways a 3PL WMS pays for itself. Our guide to 3PL billing accuracy goes deeper on where the leaks happen.

If that is where you are, the five questions below will help you pick the system that fits how your warehouse actually runs. There are many kinds of warehouses operating in logistics today, and nearly as many kinds of software to choose from. Before you start your search, identify a few key traits about your warehouse.

Here are the five questions to answer before you start your WMS search:

1. Is your warehouse private, public, or a mix of both?

The biggest differentiator between warehouses is who owns the goods inside them.

Do you manufacture your own goods and plan to store and distribute them yourself from this warehouse? Then you are a private warehouse.

Does your warehouse take contracts to store goods for third-party ecommerce or retail customers? You are a public or third-party logistics (3PL) warehouse.

If you store your own products and also take on products from other clients when space allows, you are a hybrid warehouse.

For warehouses that intend to do 3PL or hybrid warehousing, you will need a software solution that can automate billing, provide real-time inventory visibility, and manage value-added services, so you can focus on fulfilling orders.

2. How many customers do you have?

If you have one or more customers selling through different channels, consider how you will receive each customer's orders, store their inventory, and manage billing so it stays separate from every other customer. Setting that up correctly from day one is the subject of our guide to billing per client in a 3PL WMS.

Are you a 3PL that’s focused on accommodating customers with unique workflows? If so, you will want a comprehensive solution that can be implemented quickly so you can serve those customers well.

3PLs that are already serving customers but need to automate processes to scale should add technology that helps them grow profitably. An integrated WMS like Extensiv 3PL Warehouse Manager brings together shopping carts, automated receiving, mobile picking and shipping workflows, and billing in one system.

3. How do you receive orders?

Talk with your customers and make sure the WMS you select can accommodate how they will place orders.

Types of orders:

A. Manual: If you have one or two customers who call or email your office to place orders, most software systems will work. But consider the cost of your staff doing manual entry and the risk of errors that hit your bottom line. Look for a WMS that offers a customer portal where clients can check inventory and place orders directly into your system.

B. Spreadsheets: If your customers plan to send CSV or Excel files, make sure the WMS you select has an easy-to-use order import.

C. API/Shopping Carts: If your warehouse has ecommerce or omnichannel customers, you will very likely need shopping cart integrations. Whether it is Shopify, WooCommerce, Amazon, or ShipStation, a comprehensive WMS is the way to go.

D. Retail/EDI: If you handle product for a large retail customer, they will likely want an EDI connection. Some warehouse management systems handle this better than others, so be upfront about it during selection. At Extensiv, our internal EDI team sets up and manages these connections.

4. What types of products will you be storing?

Identify what kinds of products your warehouse stores today and what you would like to store in the future. The more you know about the type of warehouse you want to be, the more specific you can be when selecting software.

Doing grocery distribution? You may need a WMS that can track catch weights.

Pharmaceutical warehouse? You could need a WMS that handles advanced serialization and mobile scanning.

Makeup and beauty products with expiration dates? You will probably want a WMS that supports a First-Expired, First-Out (FEFO) or First-In, First-Out (FIFO) distribution model.

A clear picture of what your warehouse will store helps you find a WMS that adapts to many different scenarios. At Extensiv, we pride ourselves on adapting to nearly any need in third-party warehousing.

5. How will you be shipping?

Will you focus on pallet in/pallet out, carton in/carton out, or kitting and assembly? A WMS that automates workflows and guides hands-free pick, pack, and ship is how you push order accuracy toward 100%. As ecommerce keeps growing, that accuracy is worth a lot to your customers as you scale together.

At Extensiv, we partner with warehouses running everything from basic pallet-in/pallet-out models to small parcel shipping. To support growing order volumes, we offer automation like SmartPack™ and Small Parcel Suite, which verify every order with a Scan, Pack, Verify workflow and print labels directly from the WMS during packing.

Choosing a WMS

3PL warehousing keeps evolving, and your operation will likely change several times over the years. As a growing 3PL, your best option is a WMS that can adapt and change with your business. Two more reads before you shortlist: WMS vs. ERP, if you are weighing a broader system, and how much 3PL software costs, for current price ranges. When you are ready, request a demo and we can help you find a solution that grows with you and your clients.