3PL fulfillment software requirements

3PL fulfillment software has to take in an order, hold the stock, release work to the floor, support picking and packing, print labels, update stock and record billable events. Most requirement lists bury that under fifty rows, every one marked "high priority", and nobody can say what happens if a row is missing. This page keeps it short. It follows one order through your building and asks what the software has to do at each stop.

The aim is two lists you can fill in yourself: what you need to start, and what can wait until a client forces the question.

Follow an order

Take a hypothetical order: a client sells candles online. A shopper buys two jars and a gift tin. Trace it.

1. The order arrives

The software must accept orders from where your clients sell, by file, by connection to their store, or by a person keying them in when needed. It must know which client the order belongs to, and keep that client's stock apart from everyone else's.

Must have now: orders tied to a client, with address, items, quantities and requested service. Can wait: support for every sales channel. Start with the ones your first clients use.

2. Stock is checked and held

When the order lands, the system should see whether the items are available and set them aside, so two orders do not claim the same last jar.

Must have now: available quantity by client and SKU, with a hold when an order is accepted. Can wait: advanced rules for splitting a shipment across locations.

3. The order is released to the floor

Someone needs to decide when pickers see it. A simple wave or batch release is enough at first. Rush orders need a way to jump the line.

Must have now: release by batch, a priority flag, and a view of what is waiting. Can wait: automatic wave planning based on carrier cut-offs.

4. Picking

The picker needs to know where to go and what to take, and the system needs to know what was taken.

Must have now: pick instructions by location, confirmation by scan or tap, and a short pick shown as a problem, not hidden. Can wait: route optimization, and voice or pick-to-light.

5. Packing

The packer checks the items against the order, chooses a carton, adds inserts, and closes the box.

Must have now: a scan check of items against the order, a way to record the carton used, and notes on special packing instructions from the client. Can wait: carton suggestions based on size.

6. Shipping

A label is printed, the tracking number is recorded and sent back to the client's store, and the order is marked shipped.

Must have now: label printing for the carriers you use, tracking saved on the order, and tracking returned to the client. Can wait: comparing carrier rates for every order.

7. Inventory updates and the client sees it

Stock is reduced when the order ships. The client should be able to see their updated stock.

Must have now: stock that changes as work is done, not at the end of the day. Can wait: forecasts, reorder alerts.

8. Billing

The pick, the pack, the materials and the label are all billable. The software has to hold on to those events so your invoice is built from them.

Must have now: a record of billable events per order, tied to the client. Can wait: detailed profit analysis by client.

Things the whole path depends on

Returns

Even a small operation gets returns. The system should receive one against its original order, record the condition, and put the item back in stock or set it aside.

Exceptions

Out-of-stock lines, address errors, damaged goods. Check that each can be flagged, assigned to a person, and cleared with a note. A system that handles only clean orders will cost you time every day.

Users and permissions

A picker should not see rates. A client should not see another client's stock. Ask early whether permissions can be set by role and by client.

History

Ask what is kept for each order and for how long. When a client says "you shipped the wrong thing", you want the scan history in front of you.

Run a demo script

Do not watch a presentation. Give the supplier, or your own developer, this script and watch it happen with your sample data.

1. Create two clients with different services.
2. Receive a delivery of three SKUs for the first client.
3. Create ten orders, one for each of several carriers, and one with a bad address.
4. Release five, pick them, deliberately short-pick one.
5. Pack and ship, and show where tracking goes.
6. Receive a return for one shipped order.
7. Show the stock for each client and the order history.
8. Show the billable events from the day.

Note anything that takes more than a few clicks, or needs a workaround. Ask what happens on the days when 500 orders arrive instead of ten, and what the answer costs.

Making your own list

For each area above, write one sentence in your own words. "We need to take orders from Shopify for client A and by file for client B." Specific beats generic. Then mark each sentence as now or later.

Be careful with "later". Items marked later with no date become permanent gaps. Give each one a trigger, such as "when a client asks for it" or "when we pass a certain number of orders a day".

Next step

Write the eight stops on a sheet, add one sentence of your own for each, and mark must have now. Take that sheet to your next demo and run the script. Your sheet decides the verdict, not the sales deck.

Questions people ask

What does 3PL fulfillment software need to do?

It must accept orders tied to a client, hold stock, release work to the floor, and support picking and packing with scan checks. It also has to print labels, return tracking to the client, update stock as work is done and record billable events.

What can wait when choosing fulfillment software?

Support for every sales channel, advanced rules for splitting shipments, automatic wave planning, route optimization, carton suggestions, carrier rate comparison and forecasts can all wait.

How do I demo 3PL fulfillment software?

Run a script. Create two clients, receive a delivery of three SKUs, create ten orders including one with a bad address, short pick one, then pack and ship. Finish with a return, the stock and history views, and the billable events.

Why do returns, exceptions and permissions matter?

Even a small operation gets returns, and out of stock lines, address errors and damage need to be flagged and cleared. A picker should not see rates, and a client should not see another client's stock.