As customers demand faster delivery, relying on manual processes and legacy systems is no longer a sustainable strategy for third-party logistics (3PL) providers. According to VML, the overall expected delivery time for online orders has steadily decreased from 2.36 days in 2022 to 2.16 days in 2023, and further to 1.85 days in 2024.
This environment creates operational challenges, from managing labor shortages to controlling skyrocketing parcel costs and meeting strict service-level agreements (SLAs).
In this guide, we break down how 3PL automation works, which technologies deliver the highest return, and how to implement a solution that drives efficiency and growth.
Key highlights:
3PL automation is the use of integrated software, robotics, and mechanized systems to streamline operations within a third-party logistics operation. This technology minimizes manual labor in repetitive and interactive tasks, replacing them with smarter, more efficient processes for inventory management, order fulfillment, and shipping.
The goal of 3PL automation software is to make logistics faster, more efficient, and less prone to error by leveraging technology.
This table highlights the key differences between a manual and automated 3PL operation:
| Type of 3PL operation | Operation speed | Error rate | Labor dependency |
| Manual 3PL operation | Manual pick-pack-ship is slow and can be a bottleneck in the ecommerce supply chain | Human error rates in manual processes can lead to costly mistakes in inventory and shipping | High workforce needs make operations vulnerable to labor shortages and rising costs |
| Automated 3PL operation | Automated fulfillment is significantly faster, with robotic systems capable of operating 24/7 | Automation reduces error rates, improving order accuracy and customer satisfaction |
Lower labor intensity reduces dependency on manual work and allows staff to focus on higher-value tasks |
Learn everything you need to know about third-party logistics (3PL) companies.
In a 3PL facility, automation relies on integrated systems — such as an Order Management System (OMS) and Warehouse Management System (WMS) — to streamline fulfillment from receiving to shipping.
The order management process begins when an order is captured by the OMS, which determines fulfillment strategy and passes instructions to the WMS. The WMS then automates warehouse tasks such as inventory allocation, picking, packing, and real-time data validation.
When an order is processed, the WMS directs robotic systems to retrieve the correct items and deliver them to a packing station. Automated packing systems select the right box size, pack the items, and apply shipping labels before moving the package to outbound conveyors for sorting and shipment. This integrated approach helps to automate logistics from end to end.
3PL logistics automation integrates robotics, software, and data analytics to optimize fulfillment operations, delivering improvements in speed, cost-efficiency, and scalability. The result is a more resilient and competitive supply chain capable of adapting to market volatility and peak demand periods.
These are the main benefits of 3PL automation:
Automating 3PL ecommerce fulfillment operations leads to faster and more precise order processing. Pick-to-light and voice-picking technologies guide workers to the correct items, while robotic arms and autonomous mobile robots ensure consistent and accurate item selection, reducing the costs associated with returns and redeliveries.
By deploying robotics and intelligent retail shipping software, 3PLs reduce their dependency on manual labor for physically demanding and repetitive tasks like picking, packing, and sorting. This strategic shift helps manage labor shortages and reduces the high costs associated with employee turnover and training. A key benefit is the ability to handle demand fluctuations without a proportional increase in headcount.
Implementing automation also delivers significant financial returns through enhanced productivity and cost reduction. According to Deloitte, intelligent automation can reduce organizational costs by up to 32%.
A modern 3PL warehouse leverages automation to generate a constant stream of real-time data, providing visibility into inventory and operations. This level of transparency is critical for making proactive, data-driven decisions that optimize the entire supply chain.
With advanced 3PL analytics, logistics providers transform raw data into actionable insights for forecasting, resource planning, and process optimization.
Real-time data also enables swift responses to disruptions, such as shipping delays or unexpected demand spikes, ensuring that service-level agreements are consistently met.
Learn also: The ultimate guide to shipping analytics
A modern 3PL platform integrates several key automation and software solutions to streamline operations from receiving to final delivery. These technologies work in concert to support growing ecommerce and retail businesses.
Different categories of 3PL technology include robust warehouse management and control systems, advanced hardware like automated storage and robotics, and data integration layers that ensure all components function as a unified whole. Optimization platforms like Shipium sit at the center of this ecosystem, helping 3PLs orchestrate fulfillment by connecting upstream systems like the OMS with real-time execution across the warehouse.
A warehouse management system serves as the operational brain in a 3PL facility, managing inventory, orders, and labor. When integrated with a warehouse control system (WCS), which directs automated material handling equipment, these systems provide real-time orchestration of all warehouse activities. This eliminates process inefficiencies and boosts order accuracy.
Automated storage and retrieval systems (AS/RS) use machinery like cranes and shuttles to automatically handle, store, and retrieve products from high-density storage structures. By maximizing vertical space, an AS/RS can significantly increase pallet storage capacity in the same footprint as conventional racking, which can delay or eliminate the need for costly facility expansions.
The goods-to-person model, where totes are delivered directly to operators at integrated workstations, improves picking accuracy and reduces employee travel time within the warehouse.
Robotics is a cornerstone of modern 3PL technology solutions, automating highly repetitive tasks to improve speed and precision. Robotic picking systems, including autonomous mobile robots and robotic arms, can operate 24/7, handling a high volume of picks per hour — a rate far exceeding manual capabilities.
Collaborative robots are also increasingly deployed to work alongside human staff, handling strenuous tasks and boosting the productivity of each fulfillment engine user.
See the top shipping technology trends to look out for in 2025.
Conveyor and sorter systems transport items from receiving to storage, and from picking stations to packing and shipping docks. Automated sortation systems are crucial for high-volume operations, capable of processing thousands of items per hour by identifying products via barcodes or other identifiers and diverting them to the correct destination.
The true power of a modern 3PL platform lies in the seamless integration of its various systems. This connectivity provides real-time visibility into inventory levels, order statuses, and shipping information, which is critical for both internal decision-making and transparent client communication.
Business intelligence and data analytics tools leverage this integrated data to provide actionable insights. By analyzing historical data and trends, 3PLs can optimize delivery routes, forecast demand, and identify opportunities for cost savings, ultimately enhancing the value they provide to their clients.
New 3PL industry trends indicate a future where manual processes are being replaced by integrated, intelligent systems. As companies increasingly automate logistics, the focus is shifting towards predictive, collaborative, and autonomous solutions.
The most recent trends in 3PL are:
As shipping complexity grows, 3PLs need the right automation partner to scale efficiently. DCL Logistics is a great example: the team adopted Shipium to replace manual workflows, increase flexibility, and meet rising client expectations without adding headcount.
By leveraging the Shipium platform, DCL got:
Manual processes limit even top-performing fulfillment teams. For 3PLs under pressure to deliver faster, cheaper, and more reliably, automation is the engine behind scalable operations.
By automating what matters most, like real-time carrier selection, dynamic time-in-transit calculations, and no-code business rule updates, Shipium gives logistics service providers (LSPs) and 3PLs the speed and flexibility they need to meet modern customer expectations. The result is a faster path to SLA adherence, cost control, and growth without additional headcount.
We invite operations and supply chain leaders to see how our modern approach to 3PL automation builds a competitive advantage. Book a demo today.
Choosing the right 3PL logistics technology solutions involves a structured evaluation process:
Implementation timelines depend on the complexity of the existing tech stack, but modern 3PL automation software like Shipium is designed for speed. Because it's API-first and modular, Shipium integrates without requiring a full system overhaul. Most 3PLs begin production rollout within weeks and gain immediate value from features like carrier selection, SLA enforcement, and label automation.
The key to automating label generation is unifying carrier rules, service levels, and compliance logic through robust 3PL end-to-end automation.
Shipium consolidates all major and regional carriers into a single platform, automatically applying business rules per client, per shipment. Labels are generated in real-time with the correct method, format, and regulatory requirements — no manual touchpoints or custom scripts needed.
Learn more: Enterprise throughput with batch label generation
Yes, modern 3PL automation solutions are designed for scalability to handle volume surges during peak seasons, promotions, or other periods of high demand. Technologies like cloud-based warehouse management systems, flexible robotics, and on-demand storage give 3PLs the ability to quickly scale their capacity and labor up or down.